Marks & Spencer’s Plan A

November 5, 2015

Information provided by 2degrees Network

UK retailer Marks & Spencer’s Plan A is an ambitious 5 year plan, launched in 2007 by Executive Chairman, Sir Stuart Rose, which has become a benchmark for sustainable business in the UK if not the world.

M&S is the UK’s leading high street clothing brand. One of the great successes of the first phase of Plan A was in the Clothes/General Merchandise category. In the UK, ”approximately 500,000 tonnes or 1 billion items of clothing are sent to landfill each year – that’s 114,000 per hour.”

Plan A’s strategy was to encourage customers to recycle their waste garments by returning them to Oxfam (a national chain of charity / thrift stores in the UK). A £5.00 ($7.80, €6.20) M&S clothing voucher was the incentive. Over 10 million items of clothing were donated to Oxfam raising about £8 million ($12.50 million, €10 million) for their projects around the world. Meanwhile, each voucher redeemed during this the campaign part-subsidised an average basket value of £60 ($74, €94). At three times the average, non-voucher-using shopper’s basket value, this was a revenue win for M&S.

Objectives

The original Plan has moved into a new phase, energised by Sir Stuart’s successor, Marc Bolland, who observed that as consumers we are still “stuck in the American dream…(of) more, faster, luxury” and that Plan A needs to help build a new consumption model which works at scale. This means, for the clothing category, pushing a “bring something old, buy something new” culture.

To this end, M&S has set a new target “to help customers recycle over 20 million items of clothing a year by 2015” including shoes, handbags, jewellery and bras.The first model-innovating step, is branded “Shwopping”. This builds on the M&S and Oxfam Clothes exchange. It retains Oxfam’s capability as a re-seller and recycler of garments. But it also brings the collection in-house, via permanent, dedicated “Shwop Drops” in M&S stores. Added to which is a social media element. The incentive has changed to a weekly prize draw of £100 ($160, €125) voucher and a Facebook-mediated league table of Shwoppers who gain Shwop points for shwopping visits and spreading the word. This kind of engagement approach, sometimes described as “gamification”, injects a competitive dynamic into an otherwise soft set of consumer messages.

Results

The campaign was launched by British TV personality Joanna Lumley. Joanna is an actress who is a style icon for the older generations, but also known by the younger M&S shoppers for her comic roles. Her fronting of the campaign blends humor with purpose, making a powerful idea accessible. The campaign has included a heavy investment in TV. From the April 26 multimedia launch to mid-June M&S has had 750,000 Facebook users sign up to the league table with the top 3 shwoppers having returned an average of 4000 items each. These will either be re-used as raw material for new clothes, recycled into something different such as insulation, or re-worn by someone else, possibly someone in need in the developing world.

Meanwhile at the non-customer end of General Merchandise, Plan A is looking for innovative ways to improve on the first five years. Through the Shwopping campaign, M&S may also attract some new ideas to build on wins such as cotton being grown with 50% less water; a staggering 80% drop in pesticide use; and other technical innovation in the fabric making, clothes manufacturing, and logistics.

How ToShwop-209x300

Show you are serious by setting quantitative targets, which you regularly report on. Once you’ve demonstrated progress, you have license to ask the consumer to engage in a deeper way.

Use celebrity endorsement judiciously – the celebrity should complement the brand – humor takes the edge off an otherwise “worthy” message.

Gamification, using online B2C networks like Facebook, is becoming a popular method for increasingly “stickiness” of an activity i.e. something which people return to frequently. If linked to quantitative targets it gives a sense of pace and progress, and an ability to celebrate good exemplars.

Social media does not replace traditional media such as TV advertising, particularly if a proportion of your target consumers are not heavy internet users.

An economic incentive, in kind, is helpful to drive engagement.

Contact Information

M&S: Adam Elman, Head of Plan A Delivery, adam.elman@marksandspencer.com
2degrees: Klina Jordan, Marketing Manager, klina.jordan@2degreesnetwork.comTools
https://www.facebook.com/MarksandSpencer?sk=app_159230034200083
http://www.marksandspencer.com/Shwop/b/1672188031