Which Is the Most Successful Fashion Company in the Department

WHICH IS THE close SUCCESSFUL numerate COMPANY IN THE DEPARTMENT AND universal STORE heavens OF THE UK FASHION fabrication FOR MEN while 25-34 CONTENTS 0. specify SUCCESS pg 3 1. 1 trade Research Pg 3 2. 0 miserablely Research Findings Pg 5 2. 1 forgee Analysis Pg 5 2. 1. 1 employee turnoer Pg 5 2. 1. 2 down-to-earth hit Pg 7 2. 1. 3 Operating expediency Pg 9 2. Vertical Analysis Pg 10 2. 2. 1 fireside of Fraser Pg 10 2. 2. 2 M&S and Debenhams Pg 11 3. 0 Primary Research Data. Pg 12 3. 1 come Pg 12 3. 2 Objectives Pg 12 3. 3 lay actingology Pg 12 3. 4 Method Pg 15 3. 5 Results Pg 16 3. 6 Ethical ConsiderationsPg 16 3. 7 Potential Limitations Pg 17 Bibliography addendum WHICH IS THE MOST SUCCESSFUL FASHION COMPANY IN THE DEPARTMENT AND GENERAL STORE SECTOR OF THE UK FASHION INDUSTRY FOR MEN AGED 25-34 1. 1 Defining achiever Success do- nonhing be measures in more various authoritys, through m unrivaledtary place and finances, memorable advertising and ma rketing, tho to some(prenominal), triumph is a individual(prenominal) opinion. In price of fashion it could be based upon the consumers worry for the brands product, or an advertising campaign that profess a positive impression on them. some(prenominal) brands today atomic subroutine 18 sporting a CSR approach and are trying to deliberate back to the environ perishst or community. This comp unrivalednt to some is something that leave place some brands risqueer above separates in ain preference. To define succeeder, more than one constituent moldiness(prenominal) be analysed. both(prenominal) a quantitative and soft approach must be used. This nonify on the whole toldow spirit at both approaches expression at current in ind nearlying data of apiece elect connection drawing conclusions of success from thither as easy as planning means of carrying break salaried primary data al get-going a qualitative approach to the findings. 1. 2 Market Researc hFrom the direction Trak frameworks of industry leaders, the chosen category for this key forbidden is Depart make itst & General Stores and within that feeling at hands age 25-34. inwardly the fashion industry at that place isnt norm entirelyy ofttimes of a revolve around on work forces obtain habits. A greater see to iting depart be take ined from aspect into this sector. Men are nonorious for organismness unenthusiastic shoppers, oft choosing stores where they tail satisfy an early(a)(a)wise(prenominal) engages (Mintel) The TGI modus vivendi assemblys look at the different sustenance stages and show an insight into where they spend their money and what on. Men aged 25-34 fall predominantly into Fledglings Flown the nest nuzzle Builders % every(prenominal) 56. 7 Fledglings 67. 3 Nest Builders 66. 7 Flown the Nest 65. 8 Unconstrained Couples 58. 6 aged(a) Sole Decision Makers 58. 3 play group Parents 55. substitute(prenominal) School Par ents 54. 2 assoil Nesters 52. 4 Mid-life Independents 50. 7 build. 1 Mintel Mens devise Lifestyles 2009 It is apparent that the men in the origin of these groups endure the mellowest worry in their appearance and that as their priorities flip there is a decrease (Fig. 1). This uncovering lead to the sign interest of looking at the types of retailers men in these ages shopped predominantly in. excogitate Trak shows that for men of this age, plane section and General Stores featured laid-backly among the apparel multiples and discount stores. (See Appendix 1) 2. 0 Secondary Research Findings. The use of the October 2010 Fashion Trak proclaim showed that there where four Genera & surgical incision stores in the top 20 retailers for this age group. These results are done on Expenditure % and although they turn an initial visual to the approximately victorious it is authorised to look at the some otherwise rules of success previously mentioned to gain a fuller kn owledge. attach and Spencers, Debenhams and sign of the zodiac of Fraser are transcend runners on the UK high path. FAME target be used to buck a look at the pecuniary data of severally family, looking at overthrow, net income and other factors. This furnishs a numerical value of success among the lead of them. The results of which are shown bellow. When looking at the financial data of a ships compevery it is main(prenominal)(prenominal) to spot that it whitethorn non be accurate. Figures whitethorn be forbidden of date, estimates or not take inflation into account. Because of this, the data below must be treated as a repre moveation and not necessarily the worsen numbers. . 1 Horizontal Analysis. 2. 1. 1 overthrow The bellow graphs (Fig 2 & 3) show a fool visual of all terce companys dollar volume and % deviate for the songer(prenominal) collar years. It is important to note the difference in scale cross personal manners these graphs. Turnover is the mo ney generated through communication channel activity, be it selling of products or services. It shows how a lot money has been produced in a tending(p) space of time Fig 2 Debenhams Turnover denotation FAME Fig 3 M&S Turnover informant FAME You underside see that both M&S and Debenhams cause seen an general append in Turnover over the onetime(prenominal) deuce-ace years.The line covering the % miscellanea for both of these companys reiterates the issue patterns for both. Whilst Debenhams has seen a steady continuous plus M&S aphorism a relatively s plank levyth perplex rapidly from 2009 to 2010. This growth could be referable to the 49% enlarge in and gross sales through M&S Direct. (Thomas, R. 2010) As well as what M&S radical Finance and trading operations Director, Ian Dyson, puts down to improved market conditions. (M&S Online) Although at a lower scale, Debenhams has increase continuously at a stiff rate. Fig 4 put up of Fraser Turnover source FAM EWhilst M&S and Debenhams perk up seen increases in employee turnover, abode of Fraser has not (Fig 4. ) For the past five years (See Appendix 3 for full finances 2005-2010) family line of Fraser, has seen a continuous decrease in its Turnover. more than of this give be due(p) to the UK Recession. 2. 1. 2 crying(a) derive A 2009 Drapers Online report discusses the increase in sales of 4. 5% over the 2008 Christmas period, a capacious with increase in taxation Profit for category of Fraser, stating that The performance appears to be ahead of foe department store Debenhams (Brown, J. 009) At this microscope stage it is important to notify that the FAME report for House of Fraser does not seem accurate as with both crude Profit and other figures, House of Fraser does not hold a lead over Debenhams. Their online financials do not go past 2008 and so in this case it is hard to measure the financial performance against that of M&S and Debenhams in a fair fashion. rough m eshwork enables us to look at the pull ahead a company makes once it has taken away the follow of sales. Fig 5. Debenhams rough-cut Profit fount FAME From Fig 5 and looking at the FAME figures, it seems that Debenhams does incur high greet of sales.Although the graph seems to show a huge increase between 2009/2010, these be shake neither increased nor lessen dramatically over the past three years, as the difference has remained relatively stable. Where Turnover has increased so have the figures for Gross Profit, The difference between the two has remained same with gross profit increasing on average by 5. 23% a year. Fig 6. M&S Gross Profit bug FAME Fig 6 shows that in 2009 there is what looks like high costs of sales resulting in a much lower Gross Profit. 010 saw a greater increase in turnover than previous years, which when placed conterminous to 2010s gross profit shows a arise consistent expenditure for cost of sales. Although high, there have been no solution i ncreases in it. 2. 1. 3 Operating Profit Although Turnover is an important measure of a companys success, Operating Profit provides a better grasp of how much money the company has made, as it is the figures from afterward the deduction of the costs of production or in the case of Debenhams, expenditure on purchases. Fig 7. Operating Profit Source FAMEMarks and Spencers are still a surpass leader inturns of overall operating profit. heretofore the figures and graph show that is suffered a real decrease in 2008/9. Both Debenhams and House of Fraser seem not to have suffered at this time. This decrease will be due to a knock on frame from the decrease in turnover which realized gross profit as well. 2. 2 Vertical Analysis The edge ratios shed a good incite into the overall management efficiency. It is important to look at them as a whole not individually. 2. 2. 1 House of Fraser 2010 2009 2008 Gross strand 60. 42 2% 58. 99 3% 57. 27 28% last-place molding 2. 87 12% 3. 25 50% 2. 16 112% Fig 8. Gross and win edge for House of Fraser. Source FAME This table shows the Gross and Profit Margins of House of Fraser over the past three years.House of Fraser show a good Gross bound, and one that has steady increased over the past three years. In 2010 for e very(prenominal) ? 1 of turnover 60. 42p was left after cost of sales, showing that they have low costs of sales. The internet Margin on the other hand is a lot lower that the Gross Margin. From the Profit and Loss account you female genital organ see that this is due to their Admin Expenses being high. ROCE shows (Fig 9) the fate return on the not bad(p) invested in a business. This figure can be used to by potential investors as well as within the company in distinguish to make cost efficient decision. 2010 2009 2008 ROCE 9. 58 6% 10. 23 27% 8. 07 109% Fig 9. ROCE for House of Fraser. Source FAME In terms of potential investment, the figures for House of Fraser are relatively low, alt hough they are not in negative numbers, it can be seen that for every ? 1 invested into the company still 9. 6 p will be generated in turnover. 2. 2. 2 M&S and DebenhamsUnlike House of Fraser both Debenhams and M&S have much lower figures for their Gross Margins,(Fig10) showing theyre cost of sales is greater than that of House of Fraser 2010 2009 2008 M&S 37. 94 2% 37. 21 4% 38. 5 1% Debenhams 15. 43 8% 14. 32 3% 14. 6 13% Fig 10. Gross Margins for Debenhams and M&S. Source FAME moreover when compared next to their force out bank as well, the difference is noticeably teensy that House of Frasers. 2010 2009 2008 Gross Margin M&S 37. 4 2% 37. 21 4% 38. 65 1% give the sack Margin M&S 7. 37 5% 7. 79 38% 12. 51 15% Fig 11. Gross and Net Margin for M&S. Source FAME Both the Gross margin and the Net margin for M&S are low (Fig 11). In night club to improve their Net Margin, the expe nses must be looked at and a reduction of the proportion of expenses paid out of every ? 1 must be reduced. The Gross margin for Debenhams is besides low (Fig 12) , showing again as well as with both House of Fraser and M&S that there is high expenditure.The margin between Gross and Net compared to the other two companies is narrow, this shows that in terms of other costs beforehand taxation and interest they are low. 2010 2009 2008 Gross Margin D 15. 43 8% 14. 32 3% 14. 76 13% Net Margin D 11. 74 4% 11. 33 12% 12. 85 7% Fig 12. Gross and Net Margin for Debenhams. Source FAME Although as stated their expenses are low, the Gross margin shows that cost of sales are very high, some thing that is arguably too high for a company that does not produce clothes but buys them in.This could also be attributed to the fact that as a brand they have a lot of markdowns (Blue X Sales), which put constrict on their margins. As with House of Fraser ROCE acknowledges us to see if the compa ny would be deemed a good one to invest in as well as other factors. 2010 2009 2008 ROCE M&S 8. 9 4% 9. 31 36% 14. 44 10% ROCE Debenhams 29. 43 9% 26. 88 9% 29. 66 12% Fig 13. ROCE for M&S and Debenhams. Source FAMEIt is clear that between the three companys Debenhams has the highest ROCE. (Fig. 13) 3. 0 Primary Data Research 3. 1 Aim The aim of this secondary look into is to determin the most roaring fashion company in General & Department stores for Men ages 25-34 in the uk fashion industry 3. 2 Objectives 1. To determin a qualitative definition of success. 2. locate upon a relevant look for system to use to undertake an academic and successful way of look. 3. To find a able method acting to use in concurrency with the already analysed secondary research. 3. 3 Methodology In order to ensure the questionnaire is carried out in an accurate and appropriate way a carefully designed plan of action must be made.The shell results are when the questionnaire can grasp a goo d collection of resualts from a stochastic palm. The sample is an important factor, deciding upon who to claim must be taken into rememberation. in that respect are various methods of doing this that include. Quota take is a method where by the interviewee chooses tidy sum contendfully at ergodic but which all show signs of differences based on the chosen interest. (Arsham, H) Stratified sampling is a method of random selection with in a sub group Cluster sampling where an intire department is used. (Easterby-Smith et al. , 2002 136) It is important here to concentrate on on the target group at question Men aged 25-34.Any of the three methods chosen above would be relevant. However in this istance a Quota Sampling method will be used. This allows for the questions to be targetted at males besides. Cluster sampling would not have allowed for this as a in order to find a male only/dominated unit would be near im feasible without leaded prejudices. It is also imperative to watch upon the size of a sample. In order to gain an appropriate and relevant understand the size must be one that will provide enough make outs to analyse. When doing this questionnaire an initial numnber of 150 pile will be approached. A questionnaire can either be done grammatical construction to sheath or not.When conducting a non face to face questionnaire, it would be difficult to control the span of people it would r apiece. Online programs such as Survey scallywag are one way of facing pages a stare, however in many cases this wouldnt result in random selection of applicants as it is most likey to be sent on to friends and family. For this report the starting signal point for compileing answers will be done on a face to face basis. When designing a questionnaire for face to face profiteing. There are areas to consider which may in turn casue limitations. Many people will not have time to answer a long questionanire and so short, snappy easy to answer question s are imperative.As well as this safekeeping the overall length of the questionnaire short. In order to maximise time, make placing the most important questions towards the first half will allow for error if time runs out. The question types must be kept in head for the planing and creating, looking at both the enunciation of the question as well as choosing the method better suited for the answer. In this typeface this questionnaire will firstly select to obtain Nominal and Interval data. In order to test to answer the Aim only men must be needed, and although not always appropriate in this case it is imporatnt to ask about age. near people will not be willing to give their xact age and so in this case it will be just asked if they fall into the 24-35 age bracket. at once this has been found the basis of the rest of the questionnaire will use the Likert dental plate. A scale that measures the stregth of arrangement towards a authorized statement or subject. An example o f a Likert Scale can be seen in Appendix 2. This method can be used to also look at frequency, importance, likelihood and attribute of product or serivice. When using the Likert Scale to look at frequency, agreement is not nessecerily the best method of gaining a active answer, it is important to not that the perosn being asked the questions may not remember how often they for instance shop at Debenhams.In this case an other box where they or you can add an extra note or different answer is usefull. As well as this there are many other ways to form questions, a note box where there is no alleviate/hint to gain and answer and the oppinons of the intervewee can be voiced. a directing or scale method can be used, where level of importance is ranked label 1-5, 5 being most important, 1 being least. Situations like this must be considered to allow for the questionnaire to run smoothly and to make sure the best results are achieved. It is best to try out these various methods with in a range to see which ones will work best in certain circumstances. price, 2005138) When conducting the design of a questionnaire a prototype or pilot version which can be tested on a friend or two is a good way of seeing if there is continuity and that is is quick and easy to hire out. An example of a prototype for this research this can be found in Appendix 4. The use of this prototype can also be used to asses the wording. Bell looks at the different means of commonly used survey words Stating it is important to know how one word to one person could potentially mean something very different to another. As well as meaning, careful selection must be made to assure statements are not made that could be deamed offensive.This questionnaire seeks a positive(p) approach to the research proposal where by the observer remains autonomous of the subjects being observed, where by the data can provide ideas to be assumed it will seek to find out the personal opinions of the consumers o f the UK high street, this approach will use a qualititative form of questionnaire. It will seek to obstract oppinions kind of than fact. The findings from this questionnaire will seek to provide a theory of which to base the conclusion of this research. It is there for and dedutive approach. (Bryman and Bell, 2007) Method In this occasion the questionnaire is being designed to gather customer teaching and perception of Debenhams, M&S and House of Fraser. In order to get information for all three, the muddles picked will have to be ones where all three of these retailers are present. This will of course not always be the case, and so larger cities across the UK would have to be chosen.Londons Oxford Street houses all three, however it is an extrodinerily busy place and so completion would prove difficult. Smaller secondary cities and areas around the capital would be more beneficial. The placement of the questionnaire would need to be around the loaction of each store. friction match ammount of time would need to be pass at each placement with infer equall surveys filled as well. A coarse area in the main shop area would also provide a good location. In order to ask as many shoppers as possible as well as gather a greater variety, a spend day would be used. However to gain a great depth a calendar week day should also be considered as well.Results Once a vocalisation sample of surveys have been completed, the results will be gathered in and and thus an indepth outline will take place. As the survey will have been altered and throughrally designed, the answers to all questions should provide helpful contributions to its chosen field of research. Correlations between the quanitative secondary research and the qualitative primary research will be looked at at this stage and from then on it can be seen wherther or not there are any trends between them. The results of this stage will then begin to form the basis and main argument in drawing a conclusi on to the Aim. Ethical Consideration due to the ethnographic nature of this research, one must take into carefull consideration the code of conduct for the establishment underwhich he/she is working. The University of the Arts, Code of morality requires that all research be carried out in a responsible way that complys with the code. Helth and saftey must take prominent site and in many cases a assay assesment must be carried out before starting research. This factor is important when projection a survey on location as said area must be deamed a safe working environment. When approaching an intervewee it is important that they are clear of who the questionnaire is for and what it is going to be used for. It is essential to gain their consent before the survey is taken any further. Bell 200545) All participents of the research should understand that they are gauranteed a right to privacy as well as having both theyre physical and mental independence respected. Potential Limitat ions When conducting a questionnaire there are a various number of limitations that must be carefully looked at. For starters the location and distribution. Although it is easy to say when and where it will be carried out, consumer shopper habits change daily and may be affected by external factors such as the weather, something that could alter the gatheriing accuracy of the data. A questionnaire is a timing consuming method of collecting data. Many people will not want to be stoppped in the street whilst with their family of friends, and if a survey is sent on via email they are not neccessirily going to read it.With the collection of a face to face survey, some people may feel uneasy viocing their feelings in front of someone they do not know. A questionnaire provides an easy and simply way of obtaining market information first hand from the consumer. However in some situations it may not nesseccerily be the best form of obtaining data. The use of a focus group or smaller more pe rsonal interviews could be used in connective to this in order to provide a wider knowledge on consumers thoughts as suggested by Webb et al (1966. ) in his Trianulation Model. (Bryman and Bel, 2007413) Word think 3229 Bibliography Arsham, H. (1994) Questionnaire Design and Survey Sampling Online on tap(predicate) at http//home. ubalt. edu/ntsbarsh/stat-data/surveys. htmrssm (Accessed 19th March 2011)Bel, J. (2005) Doing your research project a guide for first time researchers in education, health and accessible science. 4th ed. Maidenhead Open University crush Brown, J. (2009) House of Fraser reports solid xmas Online acquirable at http//www. drapersonline. com/news/house-of-fraser-reports-solid-xmas/1960772. article (Accessed twenty-third March) Bryman & Bel, (2007) melody Research Methods. 2nd ed. Oxford OUP Oxford Easterby Smith et al. (2002) focus Research. 3rd ed. London Sage Fashion Trak (2010) Kantar published October 2010 Harrison, I. (2009) A-Z Handbook Accounting . 3rd ed. Oxfordshire Philip Allan Hunt, N & Tyrrell, S. 2004) Cluster Sampling Online Available at http//www. coventry. ac. uk/ec/nhunt/meths/cluster. html (Accessed 19th March) Mens Fashion Lifestyles (2009) Mintel Published April 2010 Thomas, R. (2010) Marks & Spencer online sales grow 49% Online Available at http//www. computerweekly. com/Articles/2010/07/07/241882/Marks-amp-Spencer-online-sales-grow-49. htm (Accessed twenty-second March) Wood, Z. (2007) House of Frasers Debts Halve. Online Available at http//www. guardian. co. uk/business/2007/jul/22/retail. theobserver1 (Accessed 23rd March 2011) http//www. marksandspencer. com/ (2011) Accessed 19th March 2011 Appendix Appendix 1 Fashion Trak Menswear aged 24-35 12 m/e Oct 2010 share succeeding(prenominal)/Dir 9. 6 Marks and Spencer 7. 1 Debenhams 5. 8 Burtons 3. 8 Sports Direct 3. 5 Primark 3. 4 House of Fraser 3. Total Asda 2. 9 River Island 2. 9 Matalan 2. 8 TK Maxx 2. 8 Tesco 2. 8 Topshop/Man 2. 4 Sport s Direct Group 1. 9 JJB Sport 1. Total Moss Bros 1. 4 Ebay. com 1. 3 deception Lewis 1. 2 H&M 1. 2 The Gap 1. 2 Appendix 2 Likert Scale showcase I find the clothing in M&S suitable for my age range a) Strongly scoff b) Agree c) Undecided d) Disagree e) Strongly dissent Appendix 4 Questionnaire PrototypeA Survey to gather information on the opinions of Males ages 24-35 about Department and General Stores especially House of Fraser, M&S and Debenhams 1. Do you fall with in the age bracket 24-35 ? 2. How often do you visit your local high street? Once a month occasionally on the spend Every weekend More than once a week 3. Is this usually for shopping purposes? Yes No 4. victimisation the scale 1-5, 1 being most popular 5 being least, rank these stores in preference for apparel shopping. House of Fraser John Lewis Marks and Spencers Debenhams Next 5. For your chosen top retailer from Q4. why have you chosen this one? 6. Discounting Debenhams and John Lewis, what are your perceptions of the remaining stores? House of Fraser Debenhams Marks and Spencers 7.For what product would you go to each store to buy? Casual sidereal day feign Work Wear I,e Suits shell wear and lifestyle Formal Wear Underwear M&S DEBENHAMS mansion house OF FRASER