Retail Failures: House of Fraser

1. Introduction:

1.1 Rationale:

In this research, the researcher has represented the applied research problem that is ‘Why House of Fraser is closing so many stores?”. House of Fraser is British departmental store with the 56 stores and two outlets across the UK and Ireland. Now the main issues are that, in spite of operating this business overall the different regions of the UK and Ireland, this departmental store has faced huge failure. In spite of situated in a location which is the hub of several rich customers, this departmental store chain is unable to grab the market opportunities. Therefore it is the big issuer although House of Fraser has all eth demographic, social and financial stability, why it has failed to prove itself one of eth biggest retail giant in UK. The failure of House of Fraser in UK and Ireland, which compel the marketers of this company to close most of the stores, is a big issue as it highlights the fact that, in spite of proper location, demographic advantages and social support, an organisational can face the extreme failure. This research represents this issue in terms of highlighting the other important factors that are associated with market expansion and grabbing the market opportunities. In the current business landscape, the failure of House of Fraser represents the important lesson about eth market uncertainties and unpredictable success as well as the failure of the company. Therefore, in current market trend, this issues of House of Fraser is highly important to be discussed as it will provoke the proper knowledge to the marketers about which factors the organisation would prioritise for getting the continuous success of the business. In this research, the researcher shed lights on the actual reason behind eth failure of House of Fraser, in spite of getting several market advantages. Through discussing the factors the researcher establish the important factors that eth marketers need to consider while dealing with changing market trend as well as changing customer perception.

1.2 Purpose of the study:

Purpose of this study is to highlight the factors as well as reasons that are associated with the failure of House of Fraser in terms of closing most of its stores. Moreover, this research also highlights the important strategies that the House of Fraser can implement into in order to grab the market opportunities and get continuous success in the ever-changing market.

1.3 Importance of this topic:

This topic is important because, through this tope, the researcher can discuss the different factors that each company needs to consider while dealing with the ever-changing market trend. Through analysing the reason behind the closing of stores in case of House of Fraser, the research highlights the factors that contribute to the consistent success of eth organisation. House of Fraser stores is situated in the highly crowded locality which offers the high level of opportunities to grab a large number of customers. Moreover, the product quality of this departmental store is also goods. In spite of all these situations, this organisational has faced severe failure due to become unable to cope with the ever-changing market trend as well as ever-increasing competition in eth market. Therefore, through selecting this topic, the researcher is able to highlight the actual issues that the current marketers can face in term of maintaining the sustainability of their business as well as productivity.

1.4 Aim:

This research aims to highlight the reason behind the closing eth of different stores of House of Fraser.

1.5 Objectives:

To evaluate the current market position of the House of Fraser To analyser the reason behind closing down of several stores of House of Fraser To determine the factors that contribute to the failure of House of Fraser To find out the effective strategies be used by the House of Fraser to improving their market position

2.1 Literature review:

2.2 Introduction:

In this literature review process, researchers would represent eth relevant theories and models that are relevant to the research topic. These theories and models would assist eth research to highlight the actual reason behind closing down of House of Fraser stores in different places of UK and Ireland. Through establishing the theoretical perspectives if different models and theories, this research will highlight the strategies that the House of Fraser can apply to get rid of the failure. Through representing eth literature review, research would also highlight the gaps that the researcher failed to fill up.

2.3 Theories and models:

Marketing mix model:

As stated by Sinapuelas et al. (2015), this model highlight the fact that, actual marketing success is associated with four major aspects such as products, price, place, promotion. In the case of, House of Fraser, the marketers are able to get the demographic advantage by having eth highly crowded location that can provide a huge number of customers to the organisation. On the other hand, House of Fraser faces severe issues regarding their product proportion, product design and pricing strategy. As stated by Baker and Saren (2016) marketing mix strategies focuses on proper standardisation as well as designing of eth product services by eth marketers as per the customer's preferences. Due to online competition becomes too much appropriate for eth physical retails stores, House of Fraser become unable to make possible changes over their old style product design, promotional strategies and service range. On the other hand, House of Fraser believes on offline marketing process, which makes most of the cash-strapped customers to shift their preference towards eth online marketing centre such as Amazon. As stated by Pavlou and Stewart (2015), promotion, is one of the most important factors the organisation needs to maintain to grab the attention of eth global customers. In the case of the House of Fraser, marketers are unable to make online promotion, which makes them failure o grab the opportunity for attracting eth global customers.

Ansoff matrix:

As stated by Gurcaylilar-Yenidogan and Aksoy (2018) this theory focuses on the marketing strategies that the organisation needs to take in terms of dealing with sudden market challenges. There are four aspects associated with the consistent success of an organisation, such as market penetration, market development, product development and diversification. Now the organisation needs to analyse that which types of strategies that organisation will select in terms of making the continued success for the organisation (Dawes, 2018). In the case of House of Fraser, it has been unable to make strategies for operating n the new market and product. In terms of dealing with the above four aspects, this company focuses on the existing product and market which limits as well as restrict eth market boundaries of this organisation. As the markets of House of Fraser failed to changes its strategies as well as marketing approaches as per the changing market trend, it affects makes marketers unable to operates the operation into the new market with new product range. On another hand high developing the online retail world poses sever marker threats to the marketers of House of Fraser in terms of grabbing the customers and making strong customer base.

Consumer decision-making theory:

According to Frederiks et al. (2015), this theory focuses on the fact that, markets need to have eth customer-based marketing approach that will assist the marketers to understand the actual demand of the customers and their interest. On the contrary, House of Fraser does not take any customers based approach which is the main reason behind their failure and closing of stores. Unlike the other only retail House of Fraser focuses on market expansion focusing on the global market landscape, which makes marketers if this departmental stores unable to get the proper understand regarding eth customers’ preference and interest. In this aspect, Vohs et al. (2018) argued that, understanding the customer preference is not the sole aspect that a market needs to consider while forming any market strategies, rather he or she has to make perfect market research on, current trend, customers’ perspectives and social needs to take the effective as well as relevant market strategy. The marketers of House of Fraser become unable to the current market trend which is solely based on the online marketing. Moreover, House of Fraser is unable to conduct any effective market research on the customer’s perspectives, their preference and social trend. This is the reason why House of Fraser is failed to grab customers in spite of being situated in a highly crowded and high society location.

Stakeholder mapping theory:

According to Petersen et al. (2015), this theory highlights the importance of stakeholder mapping in term of conducting eth relevant market strategies. House of Fraser cannot make proper stakeholder analysis which is important for an organisation to address the changing nature of the market competition. Moreover, House of Fraser is also failed to make strong cooperation among the internal and external stakeholders which is important for marketers to deal with different issues such as the restructuring of operation cost and standardising the product design. On the contrary Zhu et al. (2017) stakeholder analysis although effective in terms of analysing the need of each stakeholder, it is not appropriate for grabbing eth completive advantage and addressing the changing competition in eth market. Therefore, House of Fraser needs to make proper market research on the current market trend in terms of understanding eth stakeholders needs as well as to analyse the possible challenges and competition in the market.

2.4 Literature gap:

Through the review, if the literature, the researcher is able to find out the gaps in the secondary research sources. Research has become able to reveal the consecutive gaps in eth literature that are selected for the research. One of the gaps is, although the literature are able to highlight the reason behind the failure of House of Fraser and closing of its stores, it is unable to highlight the actual important strategies that House of Fraser can take to get rid of these issues. Moreover, this literature although has discussed the fact that how the current marketers need to deal with the ever-changing market trend in order to maintain the high level of sustainability, the literature is still unable to highlight the actual strengths and weaknesses of the selected organisation House of Fraser in order to deal with the current market issue.

2.5 Summary:

This literature review has established different relevant theories and models that assists research to discuss the market issues of House of Fraser. Moreover, through using the relevant evidence, this chapter has established proper justification of the different states in order to make the clear sense of the discussion.

3. Research methodology:

3.1 Introduction:

Each successful research represents a clear as well as a well-organised research methodology that highlights the overall framework of the research in which the entire research has been conducted. This chapter highlights the clear structure of the entire research for establishing the authenticity and accuracy of the entire research process. Through maintaining proper research methodology this research has highlighted the proper research approach, design and philosophy. Through establishing the appropriate research design, approach and philosophy, the researcher have maintained the accuracy and authenticity of the entire paper in order to meet the research objectives and aim.

3.2 Research outline:

Research outline represents the entire process and framework of the research, based on which the research has been conducted. Moreover, the research outline shows the proper pathway through the research progresses.

3.3. Research onion:

Research onion represents the viable research format based on which the entire would be conducted. Research onions incorporate core graph of the actual research tool that the researcher has been used in terms of completing the successful research. Research onion represents the six important research tools such as research philosophies, approaches, research design, time horizon, research choices and techniques as well as procedures that are used by the researcher in terms of conducting process research.

3.4 Research philosophy:

During conducting this research researcher has used positivism philosophy, as it assists eth research in terms of getting the relevant database in limited time. On the other hand, the other two, philosophies need deep analysis of the database which is difficult for the research due to time issues. On the other hand, research has used the positivism philosophies in order to get the appropriate theoretical as well as the practical database that can assist eth research to meet the research objectives as well as aim.

3.5 Research design:

In this research, the researcher has used the descriptive research design, which assists eth researcher in terms of defining the research issue in better than the other two research designs. Through using this descriptive research, research is able to make proper discussion of eth research issues that assist the researcher to make proper funding as well as conclusion regarding the topic. On the other hand, the exploratory design focuses on the individual impact of the different aspect. The explanatory design focus on making the conclusion first and then conduct the ensure study based on the concluded fact. Therefore, descriptive design assists the research is having proper critical analyse of the research issue that is important to answer the research questions and meet the research objectives.

3.6 Research approach:

In terms of carrying out this research, the researcher used the deductive approach that assists the researcher to collect and apply the positive database that is relevant to meet the research objectives. On the other hand, in the case of the inductive approach, research needs to focus on all types of the database which can pose the difficulties as well as complications in the analysis of the database.

3.7 Data source:

This research has used primary data collection process in, as well as the quantitative database, are used. The qualitative database is collected from three managers of the selected organisation, House of Fraser. On the other hand, the source of the quantitative database is the employee of House of Fraser. Both the qualitative and quantitative database is collected through conducting the interview and survey of the selected participants. The authenticity of the database is also checked in term of maintaining the relevance of the database.

3.8 Data collection method:

In this research, the researcher has used the primary data collection process, in which the researchers directly collect the database from the participants through conducting survey or interview. In terms of collecting the quantitative database sample, question are provided to the respondents and their answers are recorded. In case of the interview face to face, communication has been on which assist the research to note down that actual viewpoint of eth managers of House of Fraser.

3.9 Sample size:

In order to conduct the data collection method in the research process, the researcher has selected the 50 employees (existing and ex-employee) of the House of Fraser in order to get the qualitative database. Moreover, researcher has also selected the 3 managers of House of Fraser in order to get the qualitative database.

3.10 Research limitation:

Although researcher has followed al the necessary procedure in terms of conducting authentic research, there are some limitations associated with completion of the research. Time limitation and fund shortage are the two major limitations of this research. The researcher has collected the database through the employee managers of the outlets of House of Fraser located in the UK, due to time limitation. Moreover, fund limitation makes the researcher unable to include the huge number of participant in this research. The researcher has also face limitation as well as the restriction in order to get them any kind of personal information about the selected organisation

4. Presentation of result and discussion:

4.1 Introduction:

In this section, the researcher represents the information in the graphs and chart that are collected from eth different respondents. This research, research has conducted quantitative and qualitative data collection, in case of eth qualitative data collection process, the database collected from the three managers of House of Fraser and in case of the quantitative database collection process the entire numeric database collected from 50 employees of the House of Fraser. Based on the presentation as well as analysis of this database, the researcher would be able to make the useful conclusion, which would assure the researcher in term of meeting the research objectives and aim.

4.2 Quantitative analysis:

Q1: What is your age?

Analysis:

From the analysis of the above mentioned numeric database, it is seen that House of Fraser has more most of the employee (40%) above 50 age. Among the rest, only 12% staffs are included in the 20-30 age group. This analysis shows the lack of young talent and innovating skills in this company which could be one of the most important reasons behind its failure in order to meet the changing needs of the customers. Moreover, the majority of eth aged staffs makes several constraints on the Company to get rid of it old marketing approaches and processing that are main reason behind the closing of its most of the stores.

Q2: How long are you working in this company?

Analysis

From the analysis, it is seen that 40% of the staffs of House of Fraser have experience of more than 8 years, which is the positive aspects for this company. On the other hand, only 12 % of the staffs have experience of 5-8 years and 28% have experiences of less than 3 years. Therefore, the majority of the staffs have less than 8 years work experience which can be an important reason behind the failure of this departmental store in order to grab the competitive advantage and closing down most of the stores. However, as all the staffs of this organisational have experience of more than 3 years, it is the positive sign, which can assist eth organisation in term of dealing with eth market challenge, by applying eth proper innovative marketing strategies as well as marketing approaches.

Q3. Do you think that the old-dated marketing strategies and product design of House of Fraser are associated with its failure?

Analysis: From the above-mentioned analysis, it is clear that majority of the 28% of the staffs of House of Fraser are strongly agreed and 32% are agreed to the fact that old-dated marketing strategies and product design are associated with the failure of this departmental stores. Based on database analysis, it can be stated that House of Fraser needs to conduct the smart marketing strategies and tactics that will assist the marketers to grab a large number of customers

Q4: How far you agree that transformation of customers from eth offline marketing to online marketing leads to closing down of most if stores of the House of Fraser?

Analysis:

Based on the abovementioned database it can be stated that the majority of the staffs of House of Fraser (46%) are strongly agreed with the fact that there is strong association between the transformation of customer preference and closing down of the House of Fraser stores. Being one of the largest departmental stores in UK and Oreland, House of Fraser is unable to cope with the current market trend which is based on eth online marketing. Digitalisation leads to possible transformation of the customers’ preference from the offline store marketing to the online window shopping. In this aspect, the offline marketing strategies and backdates product and service orientation of the House of Fraser can be one of eth important reason behind it's the failure in term of grabbing or grabbing attention.

Q 5: Do you think that compared to the House of Fraser stores the other online stores are better to lure cash-strapped customers:

Analysis:

Based on graphical presentation of the numeric database be stated that, majority of the house of Fraser staffs are strongly agreed (28%) and agreed (32%) with the fact that, online retailers in the market are more able to attract the cash-strapped customers as compared to the House of Fraser, which is based on the irrelevant as well as backdated marketing strategies. Although there is some disagreement with this fact but it is very small percentage (only 6%) therefore, from eth analysis it can be recommended that House of Fraser needs to make customer-focused approaches to standardise their marketing strategies and restructure their product design in order to grab the attention of the cash-strapped customers in the market, who always prefers the digital marketing.

Qualitative data analysis:

5. Conclusion:

In this section, the researcher would conclude whether the data analysis makes this research able to meet the research objectives. Through linking the analysis result with each research objectives, research would represent the fact that whether all the research objectives have been met at the end of this research.

5.1 Linking with objectives:

Objective 1: To evaluate the current market position of the House of Fraser

Analysis of the database of qualitative question no 2 & 3 represents the actual current market position of House of Fraser. Moreover, these two questions also highlight the market is that currently, this departmental store faces. Therefore it can be stated that this research is able to meet the first research objective.

Objective 2: To analyser the reason behind closing down of several stores of House of Fraser

Analysis of the database collected from the qualitative question 1, quantitative question 3 & 4 highlights the different reasons that are associated with the closing down of several stores of the House of Fraser. The reasons are lack of innovative skills poorly skilled workforces, lack of smart marketing strategies and poor marketing approaches that makes this company unable to combat with the current market trend. Therefore, from eth analysis, it can be stated that this research is able to meet the second research objective.

Objective 3: To determine the factors that contribute to the failure of House of Fraser

Analysis of qualitative question 1, quantitative question 3, 4 & 5, shows that different factors have plays an important role, being establishing down of most of the House of Fraser stores. Poor market strategies, old style products design, backdated selling process and lack of online operation in the stores are the main factors that affect the overall strategies and market profit of the House of Fraser. Therefore it can be staffed that this research is unable to meet this research objective.

Objective 4: To find out the effective strategies be used by the House of Fraser to improving their market position:

Analysis of a database of quantitative questions 5 & 6 and qualitative question 3 highlights the recommendations that the marketers and staffs have made in order to assist the House of Fraser to get rid of this market issue. Based on the analysis of this database, it can be recommenced that, House of Fraser needs to focus on customer-based approach, digitalisation of the entire business framework and the introduction of innovative selling strategies that will assist this business to deal with tie ever-changing market trend. Therefore it can be stated that this research is able to meet the fourth and last objective of the research.

5.2 Future scope of the study:

This research will assist future marketers to understand the important factors in the market that can affect the overall success of the business. Moreover, this research guides the future researcher in order to get proper information about the marketing issues faced by House of Fraser. This research paper offers clear knowledge on how an organisation can gain sustainable business development overcoming the market issues.

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