M&S’s Turnaround: Why Great Brands Start in the CEO’s Office

Let me tell you a story that challenges the conventional wisdom about who really builds a brand.

(This article sparked my curiosity.)

Marks & Spencer’s remarkable comeback isn’t just a tale of clever marketing. It’s proof that true brand building starts with the CEO’s vision, not in the marketing department.

This isn’t about diminishing marketing’s role. It’s about recognizing that a brand’s foundation—the strategy, culture, and operations—comes from the top.

CEO Leadership: The Foundation of Brand Building

Back in 2004, Stuart Rose inherited a struggling M&S. His first act wasn’t to launch a flashy campaign or hire a star-studded creative team. Instead, he coined a deceptively simple philosophy:

“Protect the magic and modernize the rest.”

This wasn’t just a catchphrase. It was a north star for the entire organization—a vision that demanded clarity about what made M&S special and where bold changes were needed.

Fast-forward to today and Stuart Machin has taken the same principle to new heights. The lesson? Great brands are built through leadership that aligns business strategy and execution with the brand’s promise.


Why CEOs Build Brands

1. Positioning Is Business Strategy

When Stuart Rose focused on M&S’s core strengths—quality, heritage, and customer trust—he wasn’t creating a marketing message. He was redefining how the business operated:

  • Simplifying product ranges to emphasize quality.
  • Closing underperforming stores to concentrate resources.
  • Investing in areas like food innovation and fashion relevance.

These weren’t marketing decisions but fundamental strategic choices that shaped how customers experienced the brand.

2. Operations Define Customer Experience

Under Stuart Machin’s leadership, operational excellence became the engine driving M&S’s resurgence:

  • Optimized Supply Chains: Reducing stock cover from 18 to 12 weeks allowed faster responses to trends and fresher products.
  • Store Upgrades: Redesigned layouts created a seamless shopping experience.
  • Streamlined Product Ranges: Cutting redundancies ensured every item reflected M&S’s commitment to quality.

These “boring” decisions weren’t just about efficiency—they built the trust and satisfaction customers associate with M&S today.

3. Culture Shapes Brand Reality

A brand isn’t what you say—it’s what you do consistently. The CEO’s ability to align culture with strategy ensures that promises are kept.

Rose’s focus on centralizing decision-making and enforcing discipline wasn’t just operationally smart; it created a culture of accountability that directly impacted customers’ perceptions of M&S.


Marketing: The Amplifier, Not the Foundation

Let’s be clear: M&S’s marketing team did an outstanding job. The revival of the “Not just food” campaign, the stylish celebrity collaborations, and the runaway success of “Cooking with the Stars” captured the public’s imagination.

But here’s the thing: Marketing works when the fundamentals are strong.

  • The food campaign resonated because quality scores leapt by 13 points.
  • Celebrity endorsements succeeded because the clothing line genuinely offered style and substance.

Without the operational improvements spearheaded by the CEO, even the most creative campaigns would have failed to connect.


The Results Speak for Themselves

The numbers tell the story of M&S’s transformation:

  • 17.2% profit growth.
  • 13 consecutive quarters of sales increases.
  • Return to the FTSE 100.
  • Market share gains in both food and clothing.

These aren’t just marketing wins; they’re business results. They reflect a holistic strategy driven by leadership and aligned execution.


The Hard Truth About Brand Building

Here’s the uncomfortable truth: A great CMO can’t fix a broken business.
Even the most creative marketing campaigns will crumble under the weight of:

  • Poor product quality.
  • Inefficient operations.
  • Disjointed customer experiences.
  • A misaligned strategy.

CMOs amplify success, but CEOs create the conditions for it.


Lessons for Business Leaders

If you’re serious about building a strong brand, take these lessons from the M&S turnaround:

1. Positioning Is a Strategic Imperative

Your brand isn’t just a marketing tool—it’s a reflection of your business strategy. Define what makes you unique and align every operational decision with that core promise.

2. Focus on Operational Excellence

Execution matters. Customers judge brands based on their experiences, not just their messaging. Invest in the systems, processes, and products that make your promises real.

3. Align Culture with Strategy

A company’s culture is its brand. From top management to frontline employees, ensure everyone understands and embodies the brand’s values.

4. Let Marketing Amplify, Not Create

Once the foundation is strong, your marketing team can craft campaigns that resonate and elevate your brand. But without that foundation, even the best marketers will struggle.


The Bottom Line

The Marks & Spencer turnaround isn’t a story of marketing genius. It’s a case study in leadership that understands brand building starts with strategy, culture, and operations (inside out followed by outside in)

Marketing can amplify success, but it can’t create it. That’s the CEO’s job.

Oh, and one last question: Would you rather have the world’s best CMO or Stuart Rose leading your brand transformation?

Your answer might reveal who you think really builds brands.


JOIN SQUAD—A WEEKLY DISPATCH

Every Tuesday, you can expect simple, actionable, and practical advice on business, brand, design and strategy tailored for business leaders. Written by Paul Syng.

Posted

in

by

Tags:

Comments

Leave a Reply