Business Research Report: Marks & Spencer Sales Decline Analysis

This business research report investigates the declining sales in the clothing sector of Marks and Spencer (M&S), aiming to identify the underlying causes and propose potential solutions. The report begins with an introduction outlining the research aims, objectives, and research questions, followed by a rationale for the study. A literature review explores the current business environment of M&S, including its objectives, competitive advantages, and stakeholder considerations. The report then delves into the various factors contributing to declining sales, such as competition from fast fashion brands, changing consumer preferences, and strategic decisions like store closures. Furthermore, the research examines methods for overcoming the sales decline, including product innovation, effective marketing strategies, and technological advancements. The methodology section details the research philosophy, approach, strategy, and data collection methods. The report concludes with data analysis, interpretation, and a business research plan outlining recommendations for M&S. References and a Gantt chart are also included. This report, contributed by a student, is available on Desklib, a platform providing AI-based study tools.

Business Research Plan

Table of Contents
Topic of the research – “To examine the reason behind decline in sales of clothing sector”. Case
study of “Marks and Spencer”.........................................................................................................3
INTRODUCTION...........................................................................................................................3
Research aims and objectives..........................................................................................................3
Aim of the research................................................................................................................3
Objective of the research........................................................................................................3
Research Questions................................................................................................................3
Rationale for the research.......................................................................................................3
Gantt chart..............................................................................................................................4
Literature review..............................................................................................................................5
Current business environment of Marks and Spencer............................................................5
Different factors behind declining sales.................................................................................6
Various methods for overcoming the reduced sales of Marks and Spencer...........................7
Research methodology.....................................................................................................................8
Research Philosophy............................................................................................................8
Research Approach..............................................................................................................8
Research Strategy.................................................................................................................8
Research Methodology.........................................................................................................8
Accessibility...........................................................................................................................9
Ethics......................................................................................................................................9
Sampling................................................................................................................................9
DATA ANALYSIS........................................................................................................................11
DATA INTERPRETATION.........................................................................................................12
CONCLUSION..............................................................................................................................20
Business research plan...................................................................................................................20
REFERENCES..............................................................................................................................25

Topic of the research – “To examine the reason behind decline in sales of
clothing sector”. Case study of “Marks and Spencer”.
INTRODUCTION
Any business can sustain in markets only when customer experience is good. Failure is a
part of business and it is important for companies to overcome this and make profits again
(Taylor, 2019). Marks and Spencer is an organisation that has become victim of it's own
success. Every generation of 80's and 90's was attracted by the clothing given by Marks and
Spencer. There is intense competition within the clothing business and thus Marks and Spencer
was left behind in market due to rise in Primark and fast fashion. Different analysts and pundits
have called for Marks and Spencer to reposition for capturing young generation customers from
new arrivals. There are various reasons for decline in sales of the company.
Research aims and objectives
Aim of the research
The aim for this research is to examine various reasons behind declining sales of clothing sector
in Marks and Spencer.
Objective of the research
 To analyse current business environment of Marks and Spencer
 To understand different factors behind declining sales
 To identify various methods for overcoming the reduced sales of Marks and Spencer
Research Questions
 What is the current business environment of Marks and Spencer?
 Describe the different factors behind declining sales?
 What are the various methods for overcoming the reduced sales of Marks and Spencer
Rationale for the research
Marks and Spencer is a multinational brand and when it enters into a new country the
first segment it starts is the clothing sector. But within few years, there is huge decline in the
clothing sector of this company. The reason for doing this research is to know about various
reasons that lead to reduced sales of this company's apparels.

Gantt chart

Literature review
Current business environment of Marks and Spencer
According to the viewpoint of Zehra, (2019) , the main aim of doing any business is to
maximise profits. This is done by working out total revenue which the business has made for
selling and costs of its products. Profit earning is important for the company in order tos sustain
in market for longer period. As every other business, Marks and Spencer wants to expand it's
sales and revenue by expanding the market share and innovating products. This is achieved by
fulfilling demands and wants of the customers. M&S must attract more customers and it can aim
younger market and ensure that potential and loyal customers are satisfied by the supply of
products that caters for their demands and needs. This company also has the objective of earning
market leadership. For doing this, this company must become competitive. This company can
easily develop it's competitive advantage by meeting the wants and demands of customers and
attracting potential customers. Within the marketplace, competitive advantage can also be
developed by offering best quality products to customers and achieving the goals and objectives
of the company. Another objective of M&S business is to offer a high quality service to
customers. Within the annual report of this company, they have mentioned that no other
company cares about quality as compared to themselves (Kumar, 2019). Other aim of M&S is
growth of the business and this includes surviving within marketplace and being competitive.
This company is expanding business at global markets. This company wants to achieve success
in international markets by offering quality products and services within market. M&S is having
rewarding shareholders and it is essential for business for keeping shareholders content since
these are fundamental source of investment. There are some priorities of this company which are
created for meeting the company objectives effectively. This company has an objective for
retaining their leading position in market. It helps in improving the performance in different

sectors such as food sector. It is essential to satisfy the present customers by emphasising on
better promotions of business branches. M&S can keep better calculation of optimising of
margins, expenditure, controlling costs and maintaining balance sheets. This company has to
invest in products and ensure that these are marketed well. The main goal of this company is to
attract customers and keep them above from the competitors. The external shareholders plays an
important part in achieving success in business. This is because this organisation sells and
purchases from the company but they are not employed by the organisation. Some stakeholders
of this company are suppliers, customers and general public. Customers are known as most
essential stakeholders of business. The customers of this company buy products and services
which are innovative and are able to provide profit to the company. Suppliers are also external
stakeholders as they sell products to M&S in exchange of price. This company has to take care of
suppliers and provide them good quality products at a reasonable price (Phillips, and Moutinho,
2018). This company must consider various factors when developing production processes and
products. The main reason for this is impact and influence that these products and processes have
on potential customers.
Different factors behind declining sales
As per the viewpoint of Bernon, (2018) , Mark & Spencer operate its business majorly
in clothing industry and produced products as per consumers needs and demands so that it can
make maximisation in the customer base , increase then profitability, maximizing sales and
enhance productivity etc. But it is analyse last few time that the sales of the company is decline
and it create unfavourable impact upon the business activities and operations of the company in
term of influence the productivity and profitability of the company. So, it is required to the
management of the company to focus of the firm and find out the reason and causes which are
affiliated in this problem. According to Zoe Wood and Sarah Butler, 2018, they are investigated
the different reasons and causes that affect sales of the company as well as profit. Wired world is
one of the main factor which majorly affect the sales of the respective company in negative
manner. Because now these people are prefer online shopping so they prefer for purchasing
goods and services to those firm who provide online shopping or home delivery in adequate
manner. But the management of M&S made a massive investment in an automated home
delivery which has struggled to cope with demand. There are number of firm which also offer
their product by online way. So this also influence the sales of M&S in negative way.

Another reason regarding decline of the sales is fashion faux pas. Marks & Spencer
produced clothing by considering middle aged and even elderly individuals but in current era
women expect to dress much more trendy and fashionable. But the respective company is not
much successful to fulfil the needs and demands of the customer more effective manner. So,
when the target audiences do not able to fulfil their needs, thy switch to other brand or company.
This affect the company in term of decline in sales and customer turnover or create influence
upon the productivity and profitability of the firm (Taylor, 2019). The manager of the company
also target upper and middles class people regarding its clothing products and use dynamic and
competitive pricing strategy due to premium quality products. This also create unfavourable
impact upon the business of the company regarding decrement in the sales of the firm.
The sales of Marks & Spencer is decline because the current determination which is
devising by the management of the respective is to close 100 stores in the UK which will reduce
their entire number of stores by 30%. Due to minimisation in the counting of the shops, the
purchasing behaviour of it target audiences are influenced in unfavourable manner. But the
benefit of it taking by its rivals because in that areas the stores are close the potential customers
move not other brand with the purpose of satisfying their needs and demands. Due to these all
mentioned issues and causes the sales of the company is minimised so the administrators of the
company need to make concentration on the business and the issues which are occurred with in it
so that they can be improved on time.
Various methods for overcoming the reduced sales of Marks and Spencer
As per the views of Kwiatkowska, (2018) , there are various methods for overcoming
the reduced sales of Marks and Spencer. This company is basically working on marketing of it's
products and services. The different factors which can be enhanced for solving the problem of
declining sales are product differentiation or innovation, effective marketing, technology and
automation, E-commerce, Finances, etc. the main thing on which sales of the company depends
is innovating the products. In Marks and Spencer products are innovated and this helps in
attracting potential customers. A strong and effective marketing is important for the company as
it helps in knowing the requirements of customers from the product. The technological
advancement within shops or company helps in attracting a lot of potential customers. Huge
amount of investment is needed for establishing new technology within workplace. The
analysing of customers and their preferences helps in knowing actual demands of products.

After the analysation of customer demands, it is easy to attract potential customers. The main
reason for decline in sales of clothing sector of Marks and Spencer is increase in competition.
There are a lot of competitors within market for M&S as fashion industry has huge opportunities
for different designing brands.
Research methodology
Research Philosophy
Research philosophy refers to a set of researcher belief which needs to be followed by the
researcher while completing the whole research (Kumar, 2019). The interpretivism philosophy
refers to the method where data is gathered from different sources such as personal interview,
observation and many more which states that all the information collected by researcher are from
realistic approaches.
Research Approach
Inductive approach: It refers to the process where researcher develop detail
understanding on the topics (Quinlan, and et.al. , 2019). It is the method through which
researcher will enhance their knowledge and skill on the topic of the present research.
Deductive approach: It refers to the approach based on the past investigation done by
researcher in past time.
The present research is a qualitative investigation that is used for completing the work.
Research Strategy
It refers to a plan of action which help researcher in order to conduct the research in an
effective and rightful manner.
Research Methodology
It is said that qualitative research method is based on the form of images and languages
and on the other hand quantitative research is in the form of number. This research is
quantitative research and questionnaire is used for collecting data.

Accessibility
The data given by the respondents must be accessible to the investigator. The information
and data provided by the respondent is used in an effective manner.
Ethics Informed consent – This is a major ethical issue in conducting any research. According to
this, an individual voluntarily, knowingly and in a clear way provides his consent
(Rosskam, 2018). The volunteers and people involved in data collection have the right of
informed consent.
 Respect for confidentiality and anonymity – The different respondents or group of people
involved in the research must be given protection. Their identity must be kept hidden if
they want to and information given by them is kept confidential.
Sampling
Sampling refers to an effective method used by researcher with the help of which number
of respondents will be selected from the whole number of population. In the present report,
investigator is using non probabilistic sampling method. This will help in developing
interpretation without biases (Mohajan, 2018). In this research, there are 30 respondent chosen
for conducting research who are employees and customers of Marks and Spencer.
Questionnaire is developed for making respondents to fill this . On the basis of their answers,
different interpretations are developed. The questionnaire for this research is given below -
Questionnaire
Q1). According to you, is Marks and Spencer a reputed brand?
a) Yes
b) No
Q2). As per your point of view, what are the factors that lead to reduced sales of M&S?
a) Less innovation in clothes
b) Providing products at higher price than other competitors

c) Poor market research
Q3). As per your point of view, which one helps in overcoming this business problem?
a) effective market research
b) customer analysis
Q4). Out of the following sectors, which one helps in gaining profit share?
a) Clothing sector
b) Food sector
c) Home products
Q5). As per your perception, which one is the main factor that facilitates M&S in developing
innovative strategies.
a) Rise in competition at the marketplace
b) Increase in demand and requirement of customer's
c) For enhancing the growth ratio
Q6). Do you think these strategies will help in overcoming present business condition of
M&S in clothing sector ?
a) Yes
b) No
Q7). What are the main problems that could be faced by manager of M&S in implementing
new strategies for Maximising sales?
a) Non supportive behaviour of employees
b) Lack of required funds
c) Changing demand of customers
Q8). Provide appropriate recommendations to the company for overcoming the issue of
declining sales.

DATA ANALYSIS
Questionnaire
Q1). According to you, is Marks and Spencer a reputed brand? Frequency
a) Yes 20
b) No 10
Q2). As per your point of view, what are the factors that lead to reduced
sales of M&S?
Frequency
a) Less innovation in clothes 15
b) Providing products at higher price than other competitors 10
c) Poor market research 5
Q3). As per your point of view, which one helps in overcoming this
business problem?
Frequency
a) effective market research 22
b) customer analysis 8
Q4). Out of the following sectors, which one helps in gaining profit
share?
Frequency
a) Clothing sector 10
b) Food sector 10
c) Home products 10
Q5). As per your perception, which one is the main factor that facilitates
M&S in developing innovative strategies.
Frequency
a) Rise in competition at the marketplace 15
b) Increase in demand and requirement of customer's 10
c) For enhancing the growth ratio 5

Q6). Do you think these strategies will help in overcoming present
business condition of M&S in clothing sector ?
Frequency
a) Yes 20
b) No 10
Q7). What are the main problems that could be faced by manager of M&S
in implementing new strategies for Maximising sales?
Frequency
a) Non supportive behaviour of employees 12
b) Lack of required funds 8
c) Changing demand of customers 10
Q8). Provide appropriate recommendations to the company for
overcoming the issue of declining sales.
DATA INTERPRETATION
Q1). According to you, is Marks and Spencer a reputed brand? Frequency
a) Yes 20
b) No 10