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WHY? People worry more, trust less, know more, are confronted more, expect more...

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and the evidence that change is needed is now indisputable. ... 400,000 garments sold in Autumn '07 across Womens and Menswear... – PowerPoint PPT presentation

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Title: WHY? People worry more, trust less, know more, are confronted more, expect more...


1
(No Transcript)
2
WHY? People worry more, trust less, know more,
are confronted more, expect more...
3
  • BUT, consumers wont compromise

Quality
Service
Value
Innovation
Trust
4
and the evidence that change is needed is now
indisputable
5
MS well positioned to take advantage of these
trends.
  • 100 own brand 100 control
  • Competing on value not lowest price
  • Its a part of our brand Trust, Innovation
  • Good supply partners with similar values
  • Customers want to know more

6
(No Transcript)
7
What? 100 point, 5 year, 200m strategic plan
  • CLIMATE
  • WASTE
  • SUSTAINABLE RAW MATERIALS
  • FAIR PARTNER
  • HEALTH

8
How?
  • Brainstorm gt Launch 6 months
  • 3 sustainable development managers
  • 60 people in A team
  • How we do Business Committee chaired by CEO
  • Strategy team, delivery team and communication
    team
  • Steering groups for each pillar

9
Climate Change
  • Over the next five years we will
  • become carbon neutral for our own operations
  • Reduce energy use by 25
  • maximise the use of renewables (all stores/DCs/
    Offices on green energy, lorries on 50
    bio-diesel)
  • only use offsetting as a last resort (logistics
    and business air travel)
  • address food miles (targets to reduce air
    freight, flown label, UK/regional sourcing)
  • help our suppliers and customers to reduce their
    emissions

10
7. Green electricity
175Gwh of renewable electricity already
sourced, saving 55,000t of CO2
11
8. Anaerobic digestion
AD Farmers day engaging 20 MS Farmers and
suppliers
12
9. Green stores
Bournemouth, Pollock, Galasheils
All effective measures now integrated into MS
Sustainable Construction Manual
13
13. Green transport
Trial of Tear-drop trailer, improving fuel
consumption by 20 and 10 load space.
14
22. Green factories
Contract signed with MAS Holdings, Sri Lanka,
Westbridge UK, and more to come in other
countries.
15
27. Footprint campaign
WWF One Planet Living carbon calculator
co-developed
16
Waste
  • Over the next five years we will
  • send no waste to landfill from our operations
  • reduce our use of packaging by 25,
  • ensure all packaging materials can be
    recycled/composted
  • maximise the use of sustainable packaging raw
    materials
  • put clear recycling logos on every piece of
    packaging
  • reduce our use of carrier bags by 33
  • trial closed loop recycling in our cafes
  • provide our customers with alternatives to
    throwing clothes away when theyve finished with
    them

17
34. Construction Waste
75 construction waste from store developments
sent for recycling. On site in approx. 60 stores
18
38. Packaging (sustainable raw materials)
Recycled denim packing box trial.
19
40. Packaging (WRAP logos)
WRAP symbols on all food products by end year
20
45. Carrier Bags (reduction)
Do you need a bag? Campaign launched
21
Raw Materials
  • Over the next five years we will
  • Wood all FSC or recycled
  • Fish all MSC or equivalent
  • Polyester made from recycled plastic
  • Organic triple food sales, introduce cotton,
    wool
  • Farming farmers meet independent standards
  • Water reduce use in stores and supply chains
  • Free range all fresh turkey, pork and duck
  • Non-food animal welfare known source/standard
  • Stores more sustainable construction materials

22
49. Organic food
Launched first ever range of Organic, nut free
Easter Eggs, March 07.
23
54. Sustainable textiles
First major retailer to sell a range of Organic
Linen, launched April 07.50,000 shirts
bought.8,000 pieces of organic linen.
24
57. Wood
90 of the Spring 07 Garden Furniture range
made from FSC certified wood.
25
58. Fish
Joint Winner of the MCS award for sustainable
fish for the 2nd year running.
26
60. Polyester
400,000 garments sold in Autumn 07 across Womens
and Menswear.From 4.5m recycled bottles!
27
63. Free range
Fresh Geese, Turkey and Duck converted to 100
Free Range by end 07
28
Health
  • Over the next five year we will
  • Offer the healthiest products salt reduction
    etc
  • Offer easy to use information Eat well, Traffic
    Lights
  • Engage our customers and employees health
    coaches, website, cause related marketing etc

29
89. Eat Well
1.3BN sales 06/07, 14 on LY.30 of food
sales.1,300 products.
30
90. Labelling
Launched in Jan 07, rolling out across all FSA
categories.
31
97. Healthy eating assistants
1,500 assistants trained between January and May
07.
32
Fair Partner
  • Over the next 5 years we will
  • Launch a Supplier Exchange to support change in
    our supply chain
  • Be a leader at managing labour standards
  • Extend buying pledges for UK farmers
  • Sell more Fairtrade products (cotton, sugar, jam,
    produce)
  • Support communities in the UK and overseas

33
Leader on labour standards
  • More in-country resources
  • Networks of support for suppliers
  • Unannounced audits
  • Worker helpline
  • Responsible buying

34
82. Supplier Exchange
MS Supplier Exchange launched. Information
provider. Sharing best practice.
35
85. Plan A Champions
570 Store and Head Office Plan A Champions
appointed.
36
And finally
37
Taking Fairtrade into the mainstream
38
80. Fairtrade food
Conversion to 100 Fairtrade sugar in Jams and
Conserves.
39
81. Fairtrade Clothing
20 million Fairtrade garments over 12
months100m RSV.10 of the MS cotton
business.
40
Fairtrade the MS story
  • June 2005 all tea and coffee in Café Revive
  • Jan 2006 Fairtrade cotton introduced
  • March 2006 100 tea and coffee Fairtrade
  • Jan 2007 biggest ever Fairtrade cotton buy
  • Feb 2007 - all jams using Fairtrade sugar
  • Sept 2007 biggest T-shirt line in store
    Fairtrade cotton

41
Case studiesscale and commitment
42
Tea and coffee
  • Good knowledge of existing sources and standards
  • Gap assessments for whole supply base
  • 100 conversion within 6 months partnership
    with FLO and FTF
  • Customers responded well
  • Scale and authority Brand not choice

43
Cotton in India - Agrocel
  • Farmer development organisation supplying
    inputs, training, contracts to buy
  • MS Shell Foundation link up to help improve
    quality and business skills - improve customer
    relationships, building stocks, links to
    spinners etc
  • MS make first forward contract for cotton
  • Growing business MS offer 600k pre-finance
    agreement to fund Fairtrade premium and input
    costs allows for further growth
  • Win-win quality cotton, good price to farmers,
    near to spinning mills, good environmental
    practice, pre-finance SAVES money

44
Communications.In store décor
45
Direct marketing - 3.1m card holders
46
Full page ads in all major daily papers
47
In store sampling with celebrities and local
sports teams
48
Website homepage link 3 pages
http//www2.marksandspencer.com/foodmagazine/insid
estory/fairtrade/caferevive.shtml
49
Magazine - Clothing
50
Senior level support
  • Stuart Rose speech at FT Fortnight launch made
    important commitments to
  • Scale
  • No increase in margin
  • Part of a wider strategy to trade more ethically
    (not a fig leaf)

51
Media Activity
52
Sales trends
  • Total increase in FT sales this year 21
  • Café Revive objective to maintain sales with
    point of difference. Strong sales through FT
    fortnight.
  • Coffee objective to stop decline in grocery.
    Sales up 6 in declining market.
  • Fruit Objective to increase sales by capturing
    new market. Where scale e.g. on bananas good
    sales. Where no scale e.g. on mangoes, grapes etc
    sales weaker
  • Cotton sales good, customer interest HUGE

53
CHALLENGES
  • Quality/availability/location not big issues
    but need different way of working, better product
    knowledge
  • Fairtrade and FLO need support to deal with the
    pace of change
  • Dont profiteer MS firm commitment to no
    higher margins

54
LESSONS taking it to scale
  • Good for brand shows commitment not just choice
  • Good for impact on farmers number of farmers
    and also interactions with business
  • Vital that we all work towards sustainable
    business relationships dont just leave it to
    NGOs and commodity traders, see for yourself, get
    involved!
  • Think supply chain cotton in developing
    countries not just farmers who need better
    trade
  • Opens up a whole range of new ways of doing
    business traceable, sustainable, provenance,
    story behind the product

55
HAVE FUN!!!
  • Thanks for listening!!Questions
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