Critical Analysis of Marks & Spencer: Strategic Reasons for Low Sales and Marketing Problems

Running head: MARKS AND SPENCERS
A critical analysis of the strategic reasons for the low sales and marketing problems that Mark
& Spencer has encountered since 2007.
Name of the Student
Name of the University
Author Note

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Acknowledgements
To complete this research dissertation, I have taken considerable efforts and applied all my hard
work. However, this would not have been possible without the assistance and help of the
different people as present in my university. For this, through this note, I would like to extend
my thanks to all of them.
I am indebted to (Name of your Organization Guide) for their help and assistance throughout my
project and for the resource availability. Moreover, I would also like to thank my parents for
their help and assistance as well as regular cooperation. I would also like to extend my
acknowledgement to my mentor and colleagues without whom I would have not been able to
complete the project on time.
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Abstract
The business environment is highly competitive and dynamic in nature and this is the reason why
various firms have often faced considerable difficulties in sustaining their positioning in the
market. This report is based on the case study of Marks and Spencer’s and the analysis of the
strategic reasons why the firm has been facing problems since the last few years. The dissertation
aimed to find the strategic reasons for the different marketing and sales problem as encountered
for the firm. The chapter one has laid the background of the dissertation which was then
followed by the Review of Literature will conducted analysis on the different theories related to
Consumer behavior, Strategic management and the advertisement. The third chapter laid down
the research methodology of the paper and with respect to this, it can be mentioned that for the
paper the method of Secondary research analysis was used. Through the research, the reasons for
the problems being faced by the firm were found which have been discussed in the thematic
analysis and the last chapter comprises of the Conclusions and Recommendations based on the
same. The results found that the firm was facing issues due to sub branding, poor content and
increased competition.
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Table of Contents
Chapter 1 Introduction.....................................................................................................................8
1.0: Introduction..............................................................................................................................8
1.1 Background to the study........................................................................................................8
Annual report –Profitability Analysis....................................................................................10
1.2 Rationale of the study..........................................................................................................10
1.3 Problem Statement...............................................................................................................11
1.4 Aim of the study..................................................................................................................11
1.5 Objectives of the research....................................................................................................11
1.6 Research questions...............................................................................................................12
1.7 Literature review..................................................................................................................12
1.8 Research Methodology........................................................................................................13
1.8.1 Research process...........................................................................................................13
1.8.2 Data collection methods...............................................................................................13
1.8.3 Data analysis methods..................................................................................................14
1.8.4 Justification of methodology........................................................................................14
1.9 Limitation of the study.........................................................................................................15
1.10 Structure of the study.........................................................................................................15
1.11 Conclusion.........................................................................................................................16
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Chapter 2: A review of the literature on consumer behavior, strategic management and
advertising marketing................................................................................................................17
2.0 Introduction..............................................................................................................................17
2.1 Consumer behavior..............................................................................................................17
2.1.1 Theory 1: Theory of Reasoned Action.........................................................................18
2.1.2 Theory 2: Engel, Kollet, Blackwell (EKB) Model.......................................................19
2.1.3. Theory 3: Hawkins Stern Impulse Buying..................................................................21
2.2 Strategic Management.........................................................................................................24
2.2.1 Theory 1: Porters Five forces.......................................................................................24
2.2.2 Theory 2: Ansoff Matrix...............................................................................................26
(Source: Kotler and Armstrong 2015)...................................................................................28
2.3 Advertising and marketing..................................................................................................29
2.3.1 Theory1: Marketing mix...............................................................................................30
2.3.2 Theory 2: Shifting loyalties.........................................................................................32
2.3.3 Theory 3: Imitative desire............................................................................................33
2.4 Conclusion...........................................................................................................................34
3.1.1 Primary research..........................................................................................................37
3.1.2. Secondary research..........................................................................................................37
3.1.3 Qualitative Approach........................................................................................................37
3.1.4 Quantitative approach.......................................................................................................38
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3.1.5 Mixed Method..................................................................................................................38
Choice of method.......................................................................................................................38
3.2 Data Collection methods..........................................................................................................39
3.2.1 Questionnaires..................................................................................................................40
3.2.2 Interviews.........................................................................................................................40
3.2.3 Survey...............................................................................................................................40
3.2.4 Sampling Methods............................................................................................................41
3.2.5 Business reviews and Journals..........................................................................................41
3.2.1 Research Onion.................................................................................................................42
3.4 Hypothesis Development....................................................................................................44
3.5 Research design..................................................................................................................44
3.6.1 Limitations of the research methods used........................................................................47
3.7 Conclusion...............................................................................................................................47
Chapter 4: Findings and Analysis.................................................................................................48
4.1 Introduction..............................................................................................................................48
4.2 Thematic analysis....................................................................................................................48
Justification and chosen approach.............................................................................................49
Discussion..................................................................................................................................49
Theme 1.....................................................................................................................................49
Theme 2.....................................................................................................................................52
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Theme 3.....................................................................................................................................55
Theme 4:....................................................................................................................................57
4.3 Critical Analysis of the findings and comparison to Literature...............................................59
4.4 Answer to Research Questions................................................................................................64
4.5 Conclusion...............................................................................................................................64
Chapter 5: Conclusion and Recommendations..............................................................................66
5.0 Introduction..............................................................................................................................66
5.1 Conclusions on Objectives......................................................................................................66
5.2 Contributions...........................................................................................................................68
5.3 Recommendations....................................................................................................................69
5.4 Future Scope............................................................................................................................71
References......................................................................................................................................72
Appendix........................................................................................................................................76
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List of figures
Figure 1.1: The profitability analysis of Marks and Spencer’s (2018)..........................................10
Figure 2.1.1: The theory of Reasoned Action................................................................................19
Figure 2.1.2: The EKB Model.......................................................................................................21
Figure 2.1.3. Hawkins Stern Impulse Buying................................................................................23
Figure 2.2.1 Porters Five forces.....................................................................................................26
2.2.2 Ansoff Matrix.......................................................................................................................28
Figure 2.3.1 Marketing mix...........................................................................................................31
Figure 2.3.3 Imitative desire..........................................................................................................34
Figure 3.2. Data collection Process...............................................................................................39
Figure 3.2.1: The research Onion..................................................................................................42
Figure 4.2.1: The financial performance of the firm.....................................................................51
Figure 4.2.2: The Marks and Spencer`s overall performance.......................................................52
Figure 4.2.3: The retail industry outlook of the United Kingdom.................................................54
Figure 4.2.4: The UK food retail sector.........................................................................................55
Figure 4.2.5: The market share of Marks and Spencer’s faced considerable competition in the
recent times....................................................................................................................................56
Figure 4.2.6: The competitive positioning of the Marks and Spencer’s........................................58
Figure 4.2.7: The overall popularity of Marks and Spencer’s.......................................................59
Figure 4.3.1: The Advertising and promotional extent of Marks and Spencer’s..........................60
Figure 4.3.2: The financial and operational performance statistics...............................................60
Figure 4.3.3: The UK Advertisement investment data in the retail sector....................................61
Figure 4.3.4: The Marks and Spencer`s way of performance........................................................63
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