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Unit 17 Marketing Intelligence and Research Assignment
With the verification of various factors the report is prepared in concentration with the marketing intelligence in which information regarding the marketing activities will be shared. This unit 17 marketing intelligence and research assignment will include the information regarding market research and will include various techniques that should be used by the organisation in relation with the research of the market. With the help of this marketing intelligence and research assignment companies will be able to make the decision related with the research that it has to do to gather the information of the market. Report will provide information related with the consumer decision making and various process that are indulge in the consumer decision making.
2.1 Evaluate different types of market research techniques.
Sainsbury is one of the biggest names in the market of UK which aims at offering quality products and services to their customers attached with it or coming to purchase the products and services from them. It is necessary that Sainsbury should analyse all the market activities with the effect of which it can make sure that it could continue to avail quality products and services to its customers and they could stay connected with the business. To analyse the market it is necessary that Sainsbury should focus upon all the aspects of the market and for this it have to use various market research techniques (Mennen, 2010). Doing market research is one of the most effective ways which could help in ensuring that the business could make the effective set of strategies so as to sustain in the market and to attain competitive advantage in the market. There are various benefits of market research which are as follows:
- Market research will help in recognising the opportunities available for the business in the market.
- It will help in estimating the sales of the products and services in near future which will help in managing the supplies of the products.
- It will help in recognising the responses of the consumers in relation with the products provided by the company.
- It will also help in identifying the requirement and expectations of the customers available in the market (Hunt, 2014).
To do the research there are various ways which could be used by Sainsbury so as to gather appropriate information regarding the market. Therefore, various ways on the basis of which research can be formulated are:
Research Based on Data Collection Methods
- Qualitative research technique: This is the research technique in which results are evaluated on the basis of the understanding of the market rather than the measurements. Using a small sample size results can be evaluated in this research technique on the basis of which results can be evaluated by the company and strategies in relation with the market can be prepared accordingly (McDonald, 2010).
- Quantitative research technique: This is the research technique in which size of the market matters and focus is dependent upon the measurements. There are various factors that are to be looked upon by the company using this research technique they are: size of the market, segmentation, often purchasing, brand awareness, brand shares and distribution levels. Data is collected and the results are presented in numbers which helps in making effective set of decisions in relation with the strategies that the company has to make for the sustainability in market (Mercer, 2013).
Research Based on Purposes
- Basic research: This is the research that is applied so as to prove the scientific research aspects which helps in improving the predictions of natural and other phenomenon related with the business and the market.
- Applied research: With the help of applied research specific and practical problems of the individuals are resolved. This type of research is mainly done by the companies indulge in the medical field or by the education institutes so as to find the solution of the disease or to solve any kind of scientific problems (McCarthy, 2012).
- Research Based on Source Data
- Primary research: Primary research is the research which is done by the companies present in the market to collect the fresh data related with the market. In this research surveys are done with the help of interviewing the people or asking them to give their feedbacks regarding the products and services provided by the company to the customers. Company directly asks the customers to provide their suggestions in relation with the products and services it is providing.
- Secondary research: It is the research which is done by the company on the basis of the previous data. Company could make the assumptions on the basis of various factors like previous sales, evaluating the number of increase in the customers in the store, etc (Kotler, et. al., 2014).
2.2 Use sources of secondary data to achieve the research objectives of the scenario above.
With the evaluation of secondary data information was gathered that according to TNS World Panel Sainsbury is the retail store which is at the third position in the retail market. People making the purchases from Sainsbury are happy with its products and services it provides to them. It has an effective share in the market of UK in retail business.
With the help of data collected by the survey done by Economic Help it was found that Sainsbury holds around 13% of share in the grocery market which is a huge share. Reason found behind this was the commitment of Sainsbury to provide quality product to the people of coming to purchase the products and services from Sainsbury (Afuah, 2013).
Therefore, on the basis of secondary data collected it could be said that the comment made by Sainsbury was true as it believes in providing quality products to its customers which helps them to stay with the products of Sainsbury (Banting, et. al., 2010). Objective attached with this secondary research is that, with the help of this data Sainsbury will be able to make new policies so as to fight the competition which will help it in moving a step ahead to come on the 1st position in the market.
2.3 Assess the validity and reliability of your market research findings.
Validity and reliability are the factors that help in determining that the data collected from various sources is true and can be used for the future strategies of the organisation. It is necessary that the researcher using the information should be valid and should be reliable to be used in the process of analysing the market in which the business is to be done. Any false data used by the researcher could affect the whole process of the organisation which could lead to affect the revenue as well as image of the organisation (Barney, 2014). It is necessary that the researchers should try to use true and latest data as it will ensure that the data used by the researcher is reliable as well as valid. It is necessary that the authenticated and accurate data should be used so as to make the analysis for the research of the market which could help the company in taking correct decision and could help in ensuring its success in the market.
Data collected in the research with the help of various secondary sources are reliable and valid as the data is collected from various survey companies indulge in gathering the information related with the leading companies present in the market. No false information is being used in this data collection process and with the help of proper analysis only the findings are provided in this research (Booms, et. al., 2012). Taking the confirmation with the survey owners and authenticated people data is being used in this report which enhances the authenticity of the data used with the help of secondary data. In this report latest data is collected so as to make sure that appropriate and true information could be shared with Sainsbury with the help of which Sainsbury could make effective set of strategies and could make sure that it could develop the plans which could help the business and could ensure its success in the competitive market.
2.4 Prepare a marketing research plan to obtain information in a given situation.
Research Plan: To obtain the information related with the services provided by Sainsbury to the customers available in the market and in relation with the fact that Sainsbury provide quality service to its customers it is necessary a research plan should be developed. This research plan will help in evaluating various aspects of the market and will help in obtaining appropriate information regarding Sainsbury and its relation with the customers available in the market. Therefore, marketing research plan for Sainsbury is as follows:
- To formulate the research it is necessary that the challenges faced by the organisation should be determined and research questions should be developed in relation with the issues faced by the company (Göb, 2010).
- After developing the research questions out of the issues Sainsbury will have to evaluate the reasons for which the marketing is necessary for the organisation. In this case marketing will be necessary because:
- Satisfaction level of the customer will be determined in this research which requires the promotion of the product with the effect of which people could get attracted towards the products and services of the organisation and prefer to stay in touch with the products and services provided by Sainsbury in the market.
- Techniques that will be used in the research will be both qualitative as well as quantitative techniques.
- Purpose of the research can be resolved with the help of primary as well as secondary sources of data collection (Harrell, 2013).
- Random sampling method will be used so as to gather the information from the customers in relation with how satisfactory the services of Sainsbury are?
Rationale: Reason behind formulating the research plan is to gather appropriate information regarding the products and services of Sainsbury. With the help of this research information regarding how much satisfied customers of Sainsbury is? And what are the changes it could made to make the customers satisfy in relation with the products and services it provide to the target people.
- With the help of information gathered from the feedback form and the questionnaire filled by the respondents it is necessary that Sainsbury should make the analysis of the results. This analysis should be presented in the form of graph so that appropriate decision could be made in relation with the strategies (Hirvensalo, et. al., 2014).
- On the basis of the analysis shown budget should be prepared by the company for the effective implementation of strategies prepared by the organisation. According to the analysis the estimated budget that is analysed is approximately € 270.
- After preparing the budget it is necessary that the follow up should be taken as follow up will help in determining the marketing strategies that are to be used by Sainsbury to sustain in the market.
Findings: With the analysis of various factors indulge in the research plan it could be said that marketing research is tough task for which it is necessary that Sainsbury should ensure that it should collect appropriate information regarding the market and should prepare itself accordingly. Making the plans according to the market requirements will help the organisation to sustain and will help attaining its target objectives and will help in attaining competitive advantage in the market (Hunt, 2014).
4.1 Evaluate techniques of assessing customer response.
Sainsbury could use various set of techniques on the basis of which customer responses could be assessed by it on the basis of which analysis could be done by the company with the help of which it can make corrective actions so as to satisfy the customers present in the market. Therefore, various techniques are:
- Face to Face Interview: This is the technique of collecting the information from the customers in which Sainsbury will have to directly interact with the customers and will have to ask the questions related with whether they are satisfied with the services and products of the organisation and what are the issues they are facing with the services and products of the company (Kotler, et. al., 2014).
- Online Questionnaire: Online questionnaire is the questionnaire which contains several questions related with the product and services of the organisation which can be filled by the customers by visiting the online websites of the company (McCarthy, 2012). On the basis of the responses gathered analysis can be done by the company and information can be gathered.
4.2 Design and complete a customer satisfaction survey.
1. Are the products and services of Sainsbury are satisfactory?
- Yes : 70%
2. Are the return policies of Sainsbury are effective?
- Yes : 60%
3. Which process will you prefer to answer back for the query or survey for information?
- Call: 55%
4. Do you feel satisfied with the process that Sainsbury follow to solve your query by providing customer care services?
- Yes: 80%
- Can`t say
5. How much satisfactory do you feel the process of handling the queries with the help of customer care services?
- Highly satisfied: 24%
- Satisfied: 67%
- Highly Dissatisfied
6. How much satisfactory do you feel the treatment provided by the customer care of Sainsbury?
- Highly satisfied: 60%
- Satisfied: 20%
- Highly Dissatisfied
7. Do you think that representative try hard to solve your queries or issues?
- Yes: 60%
8. Would you prefer to recommend Sainsbury to your family and friends?
- Very Likely: 60%
- Quiet Likely
- Little Likely
- Very Unlikely
9. Please provide the ratings to the products and services of Sainsbury.
- Excellent: 55%
- Good: 24%
- Fair: 14%
- Very Bad
10. Any recommendation for improvement- please provide your valuable feedback in the box given below-
Most of the customers have suggested improving the quality of some of the perishable products.
4.3 Review the success of a completed survey.
Survey was done by Sainsbury with the help of which response of the customers were accessed by the company with the help of which company will be able to make the changes and could ensure improve its quality in relation with the products and services it provide to the customers. Customers who were asked to provide their valuable feedback cooperated with the company and provided responses accordingly (McDonald, 2010). After gathering the information from the customers analysis were done on the basis of which it was found that they are satisfied with the services and products provided by Sainsbury and are happy with the quality which is being provided by the company.
There were several customers who are having bad experience with the products of Sainsbury, but they found that the way of resolving the issues was effective and by calling the customer care centre, they got their issues resolved. Customers also said that the representatives available at the service centres give their 100% with the effect of which their issues gets resolved (Mennen, 2010).
3.1 Carry out an assessment of market trends within a selected market of your choice.
Market trends are unpredictable which are solely dependent upon the present needs and wants of the customers present in the market. Strategies could be developed by the organisation by based on the demand and supplies of particular areas as they help in determining the size of the market. Market of UK is a very vast market in which lot of opportunities can be availed to an organisation that could help the organisation to sustain and to grow. Sainsbury could make the strategies working on the choice and preferences of the people present in the market (Mercer, 2013).
Supermarket industry in UK
As far as the UK supermarket business in considered, it has been observed that some of the firm dominate the industry since years. These firm are Tesco, Sainsbury, ASDA etc. The market share of the industry has been described by the following figure:
It can be determined by the figure that Tesco, Sainsbury, Asda and Morrisons are the big fours for the industry. Although the industry is saturated with other little firms, it is facing the oligopolistic situation.
Recent trends: Although the industry is getting benefitted, it has been observed first time this year that there of the big four of industry has lost their shares from the last year. On the other hand, the samall companies like Aldi and Lidl are enjoying growth in the market share. Sales in the industry rose by 0.5% this year while the top three supermarkets have lost the shares. ASDA, morrisons and Tesco has experienced the loss in share while Sainsbury managed to be flat at the growth market share graph. Meanwhile, Aldi and Lidl has managed to grow their shares from the last 12 months. The data below describes the scenario better:
The figure clearly shows the declining growth of Tesco, ASDA and Morrisons.
3.2 Describe a plan and carry out a competitor’s analysis for one of the following organisations.
- British Airways
It is necessary that the organisation available in the market should indulge in the competitor’s analysis process so that it could gather appropriate information regarding the competitors available in the market and could develop the strategies accordingly to sustain in the market. Competitor analysis also helps the company to gain knowledge about the new and recent trends the competitors are following. It is not only the market, but competitor analysis is equally important to make the strategies for the business. Various methods can be used to analyse the competition in the industry but the best way is Porter’s Five Forces. This let the company know about all the aspects of the competition prevailing in the market.
Porter’s Five Forces – H&M
1. Threat of new entrant: LOW
Threat of new entrant refers to the threat by the new companies that can enter the industry. As far as the mobile industry is considered, many barriers are there for the new entrants. This industry requires a huge capital investment in terms of R&D. The market is already well established with advanced technology. It is very difficult for any new company to enter the industry with differentiation in the product. This is the reason why NOKIA is not facing any threat from the new entrants.
2. Threat of competitors: HIGH
NOKIA operates in the saturated industry with high competition. In this industry, companies are investing huge amount in R&D and marketing practices so that they can retain their customers and make new customers. The competition faced by the companies like NOKIA is very high because of the low switching cost. It is very difficult for NOKIA to resist its customers from switching to its competitors such as Apple, Samsung, and HTC etc that are providing less differentiated products with wide range.
3. Threat of substitutes: MODERATE
Mobile phones perform so many functions these days. It has replaced cameras, calculators, watches, music systems, torches etc. Therefore, there are many substitutes available for mobile phones but still the threat faced by the industry is not so high. This is because mobile phones plays a very important role in people’s life and has they can complete so many tasks with this handy gadget. Therefore, people do not prefer to buy so many things instead of this one gadget.
4. Bargaining power of buyer: HIGH
Bargaining power of the customers of NOKIA is comparatively high because of the low switching cost as well as the number of options available for them in the market. the industry is serving less differentiated products with competitive prices. Hence, it is easy for the customers to bargain on the prices.
5. Bargaining power of supplier: MODERATE
As far as the industry is concerned, supplier power is moderate in nature. NOKIA is one of the leading mobile companies so it has some of the benefits. No supplier wants to lose the contract with such a big company so NOKIA has the power to bargain with the suppliers who support the company for hardware. On the other hand, Microsoft is the software supplier of the company that has more bargaining power as it has so many customers.
3.3 Using selected organisation above, evaluate the opportunities and threats for a given product or services.
Nokia is a well know company which is known for its mobile phones and is known for its innovative and reliable products in the market. To analyse the opportunities and threats for the company a new product that is a window phone that is being taken with the help of which analysis could be done which help in gaining could appropriate information regarding the market of the product provided by the company:
Therefore, it could be said that Nokia will have to develop another new and innovative technology so as to fight back with the threats available in the market and will have to ensure that it should make more effective competitive strategies so as to sustain in the market (Weinstein, 2013).
With the analysis of various factors indulge in the report it could be concluded that doing business in a highly competitive market is a tough task and it is necessary that the organisation should focus upon various strategies which could help it to sustain in the market. It is necessary that an organisation should do the market research with the effect of which it could gather effective set of information regarding the market and could develop the strategies which could benefit the organisation to sustain in the market and could help it to attain competitive advantage in the market. Organisation should ensure that it should regularly indulge in the activities of doing surveys and try to gather the information from the customers so that it could make the changes accordingly and ensure to attain competitive advantage in the market.
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