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7/29/2019 Rex Research Proposal
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The effectiveness of marketing segmentation strategies in British supermarket chain: the case of ASDA
The effectiveness of marketing segmentation strategies in British
supermarket chain: the case of ASDA
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The effectiveness of marketing segmentation strategies in British supermarket chain: the case of ASDA
Table of Contents
1. Background of the research ............................................................................................................... 4
2. Rational of the research topic ............................................................................................................ 4
3.1. Aim ............................................................................................................................................... 5
3.2. Objectives of the research .......................................................................................................... 5
3.3. Research questions...................................................................................................................... 5
4. Literature review ................................................................................................................................ 6
3.1. Effectiveness of the segmentation strategy ................................................................................... 6
3.2. Key success factors of the business .............................................................................................. 6
3.3. Factors those provide the competitive advantage ......................................................................... 9
3.4. Impact of environmental factors on ASDA's segmentation strategies .......................................... 9
3.4.1. Impact of external environmental factors ........................... Error! Bookmark not defined.
3.4.2. Impact of internal environmental factors ............................ Error! Bookmark not defined.
5. Research methodology ...................................................................................................................... 11
4.1. Research design .......................................................................................................................... 13
4.2. Research methods ....................................................................................................................... 14
4.3. Research instrument .................................................................................................................... 14
6. Ethical consideration ........................................................................................................................ 14
7. Research limitation ........................................................................................................................... 14
8. Time plan ........................................................................................................................................... 15
References ................................................................................................................................................... 16
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The effectiveness of marketing segmentation strategies in British supermarket chain: the case of ASDA
1. Background of the researchThe research idea on which the research will be done is the effectiveness of marketing
segmentation strategies of ASDA. The researcher here will try to evaluate the effectiveness of
the marketing strategies of the chosen firm especially its segmentation strategies to find out the
key factors responsible for its performance.
Asda is a British supermarket chain which retails food, clothing, toys and general merchandise. It
also has a mobile telephone network, Asda mobile. It has its head office in the Asda House in
Leeds, West Yorkshire. This company is performing well but not as well as Tesco did. In the
following figure the scenario is showed.
Figure 1: MARKET SHARE OF TOP THREE in the supermarket chain in UK (source:
http://www.coriolisresearch.com/pdfs/coriolis_tesco_study_in_excellence.pdf)
2. Rational of the research topicNow a day, marketing is very influential and dynamic in different business. In the supermarket
chain market, marketing is as important as it was before. In this industry, many companies set
highest annual expenditure on their marketing activities. For instance for drinks companies like
Diageo or Pernod-Ricard, marketing and promotional budgets run at more than 15% of total
revenue. For these companies that means marketing expenditure of more than $500m per year
across the globe (Dobney.com 2011).
http://www.coriolisresearch.com/pdfs/coriolis_tesco_study_in_excellence.pdfhttp://www.coriolisresearch.com/pdfs/coriolis_tesco_study_in_excellence.pdfhttp://www.coriolisresearch.com/pdfs/coriolis_tesco_study_in_excellence.pdf7/29/2019 Rex Research Proposal
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The effectiveness of marketing segmentation strategies in British supermarket chain: the case of ASDA
Segmentation of markets is part of marketing activities and the success and profitability of a
business has dependence on effective segmentation largely. So in the marketing point of view,
segmentation is important as important as whole marketing activities.
3. Research aim, objectives and research questionsTo start a journey, it is important to decide a path to go. In a research, aim, objectives can be that
path to start a research. This section delivers the aim, objectives and research questions of the
proposed research.
3.1. Aim
Aim of this research is not that broad, but specific to research interest of the researcher. The aim
of the research is to measure the effectiveness of marketing segmentation strategies of ASDA, a
British super market chain
3.2. Objectives of the research
To make the aim fulfilled, there are some objectives of this research for the more specification
research coverage. The research objectives are as follows:
To investigate the effectiveness of the segmentation strategy of ASDA To examine the initiatives taken by the firm to make its segmentation strategies effective To pinpoint the key success factors of the business To locate the factors those provide the competitive advantage for the firm To assess the impact of the external and or internal environmental factors on ASDA's
segmentation strategies
3.3.Research questions
As written in the previous section, the objectives are used as the source of research question. The
research question based on the topic of the research is given below:
How effective is the market segmentation strategy of ASDA? What are the KSF of Supermarket chain businesses?
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The effectiveness of marketing segmentation strategies in British supermarket chain: the case of ASDA
What are the sources of competitive advantages? What are the impacts of environmental factors on ASDA?
4. Literature reviewLiterature review is an essential part of this proposal. This section discussed on various issues
related to research topic and objectives. The discussion covers market segmentation
effectiveness, key success factor of business, factors of competitive advantages, environmental
impact on segmentation strategy etc.
3.1.Effectiveness of the segmentation strategy
A segment of market can be defined as a part of a market, which is made up of some people who
has some common taste, characteristics which lead to similar product choice of product. Amarketer can segment market based on various criteria, such as gender, price, Interests,
Location, Religion, Income, Size of Household etc. (Kotler and Kevin 2006).
Yankelovich (1964) did a research to find out new criteria for market segmentation. He
described three findings from the research analysis. The three points he had stressed are
A marketer should reject that demography is always the best way to segment markets. Strategic choice concept of segmentation is favorable for established product and new
product both for positioning in the market.
As the market becoming very dynamic, a marketer must have his own theory forinterpretation of market dynamic in the industry and should not borrow it from others.
3.2.Key success factors of the business
KSF was first mentioned by Daniel (1961, p.111). Daniels main thrust was the need for the
elimination of issues not directly related to the success of the firm in the planning process of
management information systems. In 1970s, Anthony, Dearden and Vancil (1972) pointed out
that the management control system, in addition to measuring profitability, identified certain
key variables (also strategic factors, key success factors, key result areas and pulse points) that
significantly impact profitability. Further, they explain that these variables are important
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determinants of organizational success and failure; they are subjected to change and this is not
always predictable. Therefore, some definitions of Key Success Factor are presented by several
following authors. Hofer and Schendel (1978) suggest that the critical success factors concept
could be used to analyse the relative competitive positions of the firm in an industry.
Their definition reflects this expanded view: Key success factors are those variables which
management can influence through its decisions that can affect significantly the overall
competitive positions of the various firms in an industry. These factors usually vary from
industry to industry. Within any particular industry, however, they are derived from the
interaction of two sets of variables, namely the economic and technological characteristics of the
industry involved . and the competitive weapons on which the various firms in the industry
have built their strategies.(Hofer & Schendel 1978, p.77) This definition introduces the key
feature that makes business strategy different from other kinds of business planningthe focus
on competitive advantage. Another important aspect of this definition is the acknowledgement
that the characteristics of the industry affect the critical success factors of the firms in that
industry.
Rockart (1979) takes this further and uses the idea of identifying the information needs of the
executive manager based on the critical factors for success, suggesting that the critical success
factors concept would be useful as an information systems methodology. Rockart (1979, p.85)
uses the ideas from Daniel (1961) and Anthony et al. (1972) and defines critical success factors
as follows: Critical success factors thus are, for any business, the limited number of areas in
which results, if they are satisfactory, will insure successful competitive performance for the
organisation. They are the few key areas where things must go right for the business to flourish.
If results in these areas are not adequate, the organisations efforts for the period will be less
than defined. Consequently, Rockart (1979) stresses that these particular areas of activity should
be constantly and carefully managed by a company. The theme of both Daniel and Rockarts
approaches is the provision of better information to management for more effective planning and
control. The important contribution of their works is the focus on critical areas, rather than a
vague attack on all problem areas. Aaker (1991) claims that a key success factor is any
competitive asset or competence that is needed to win in the marketplace, whether it is an SCA
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The effectiveness of marketing segmentation strategies in British supermarket chain: the case of ASDA
(actually representing a sustainable point of advantage) or merely a point of parity with the
companys competitors. In this sense, brands can be one of the key success factors that help
differentiate and position a companys products. They also help a company establish and/or
maintain a stable relationship with its consumers (Kotler 1997 and Aaker 1991). Moreover,
brands provide a launching pad for new products (Tauber1981).
As new product failure remains high (Urban and Hauser 1993) and increased competition in
distribution channels and rising advertising costs have made the launches of new brands more
difficult, using a familiar brand name to generate new product acceptance is an increasingly
popular growth strategy (Buday 1989 and Tauber 1988). A range of brand leverage strategies
exist, varying from line extension to brand extension. Line extensions involve the launch of new
products from the same product category or product class under the familiar brand name. Brand
extensions stretch the brand franchise beyond the current product class (Tauber 1981 and Aaker
and Keller 1990).
To quote from Leidecker and Bruno (1984, p.24), Critical success factors are characteristics,
conditions, or variables that, when properly sustained, maintained or managed, can have a
significant impact on the success of a firm competing in a particular industry. In this definition,
a critical success factor can be a characteristic such as price advantage; it can also be a condition
such as capital structure or advantageous customer mix; or an industry structural characteristic
such as vertical integration. Also, Lynch (2003, p.102) reports that critical success factors are
the resources, skills and attributes of an organization that are essential to deliver success in the
marketplace. While the definitions and views provided by the above authors differ, there appear
to be a few common characteristics that help to explain the nature and extent of critical success
factors.
First, critical success factors are the sub-goals and success outcomes that are directly related and
critical to the attainment of the vision, mission and long-term goals of the organisation.
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The effectiveness of marketing segmentation strategies in British supermarket chain: the case of ASDA
Second, critical success factors can be internal areas like resources, skills, competences,
attributes, conditions or market related areas like product features and profitable market
segments.
Third, critical success factors are limited areas of success that will ensure that successful
competitive performance of the organization. Finally, critical success factors are result areas in
which success can be measured. Critical success factors are normally determined by two distinct
levels: the industry level and the organizational level (Rockart 1979, Leidecker & Bruno 1984
and Lynch 2003). Each industry, by its very nature, has a set of critical success factors
determined by the industry itself. Each organisation in the industry will pay attention to these
factors and use them as benchmarks for competitive performance. Organisations in the
sameindustry would however, have different critical success factors as a result of differences in
geographic location, strategies, product features and internal resources and competences.
3.3.Factors those provide the competitive advantage
Johnson and Scholes (2002, p. 108) define competences as those competences that critically
underpin the organisations competitive advantage. They argue that critical success factors are
underpinned by core competences. These competences are essential in gaining competitive
advantage in each of the critical success factors. Critical success factors refer not only to the
factors that are critical for success in the external and internal environment, but also the
competences that are needed for this success. Johnson and Scholes (2002) argue that critical
success factors are underpinned by core competence. For example, if speed to market with a
new product launch is a critical success factor, it may be underpinned by core competencies in
the logistics of knowledge development and product design with key investment banking.
Critical success factors and core competences change over time as the basis of the competitive
advantage of the industry changes. According to Kaplan and Norton (1996), there are twelvecritical success factors that should be discussed as below:
Teamwork: Works cooperatively with all staff for the greater good of the team. Communication: Effectively uses written and oral communication skills to deliver
messages in a clear, concise and understandable way.
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The effectiveness of marketing segmentation strategies in British supermarket chain: the case of ASDA
Customer Service: Exhibits a positive attitude while striving to understand and meetcustomer requirements.
Learning Orientation: Actively seeks and applies new knowledge, learns fromexperiences, seeks and accepts feedback from others.
Initiative: Demonstrates a bias for action, works independently to exceed expectationsand actively tries new ideas.
Job Knowledge: Demonstrates an understanding of relevant job knowledge andresponsibilities.
Management Skills: Utilises budgets and staff to effectively manage projects andprograms.
Strategic Thinking: Considers a wide range of options and makes decisions that havethe greatest impact on long-range goals.
Leadership: Has a compelling vision and influences staff to accept and support thatvision.
Developing Others: Actively provides support and feedback to staff about currentperformance as well as future opportunities.
Dependability: Can be relied upon to meet commitments and demonstrates reliablework progress.
Multitasking: Handles multiple activities and recovers quickly from disruptions orinterruptions.
3.4.Impact of environmental factors on ASDA's segmentation strategies
Environmental scoring, econometric models, socio-political consulting services and
governmental affairs departments are a few of the diverse approaches used to monitor and assess
environmental impact on the industry and the firms comprising that industry (Leidecker & Bruno
1984 and Lynch 2003). The major advantage of the environmental analysis is the breadth of theanalysis as the scope goes well beyond the industry interface.
This is of particular importance to those industries whose survival is dependent upon forces
outside the control of the industry environment. The external environment comprises economic,
social, political, technological, ecological and legal factors that originate beyond, usually
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The effectiveness of marketing segmentation strategies in British supermarket chain: the case of ASDA
irrespective of any single firms operating situation (Pearce & Robinson 1991, Shirvastava 1994
and Wright et al. 1996). As the world economy and political factors change and ecological
factors become more important, critical success factors will also change for different industries
and organisations. The environmental scan is based on the identification of those critical success
factors considered to be the central determinants of attractiveness of a particular industry (Hax &
Majluf 1996). The success of a particular industry is therefore influenced by the current and
future impact of external factors.
5. Research methodologyIn this section, the research mechanism is discussed. The research methodology part is containing three
different parts, which are research design, research methods and research instruments. These aspects ofresearch methodology are discussed below.
Research design:
In research design, the planning of data collection and use of different methods are decided. The
aim of this research is to measure the effectiveness of segmentation strategy of ASDA. This
research will be more qualitative in nature. There are several reasons for making this research
qualitative. In a qualitative research, it is telling a researcher about how and what etc about
the research topic (Cooper and Schindler 2008).
Besides, for extracting, motivating, seeking perceptions etc qualitative research is appropriate in
favor of the researcher. But in a quantitative research, the concentration is given on to measure
something by answering how many, how much. This research will measure segmentation
strategy effectiveness in a qualitative way.
important is the primary distinction of qualitative is related with understand and interpret
while
quantitative has its primary focus on describe, explain and predict. (Cooper and Schindler
2008).
As consequence of the research methodology elected is involved the way to achieve the answers.
For
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The effectiveness of marketing segmentation strategies in British supermarket chain: the case of ASDA
that we could use two main ways: deductive and inductive. Inductive is the way which are
directly
connected with qualitative method because of induction draw a conclusion from one of more
particular facts of piece of evidence which is different of deduction where is characterized for
the
strength of relationship between reasons and conclusions. (Cooper and Schindler 2008). In
that
case, it will be collected data from different sources in order to build up some conclusions .
The final step in order to precise the research design is choosing between exploratory or
conclusive
research. Due to our study the most suitable way to manage it is through conclusive research.
This
method will be useful because includes one characteristic which is to understand the
characteristics
of organizations that follow certain common practices. (Sekaran 2003) This is one of our
objectives
in that study. Exploratory research method are undertaken to better comprehend the nature of
the
problem since very few studies might have been conducted in that area (Sekaran 2003).
Research methodology:
Sampling: The method followed in order to get the right sample it will be probability sample, to
be
specific stratified sample. Some of the reasons because of this method is chosen is according
with
Cooper and Schindler (2008) in order to gain efficiency and to provide adequate data for
analyzing
the various subpopulations or strata. (Cooper and Schindler 2008). Within food industry there
are
some subsectors which require a stratify sample in order to have a whole picture about food
Industry.
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The effectiveness of marketing segmentation strategies in British supermarket chain: the case of ASDA
Once the stratify sample are defined, them will proceed to do a simple random sampling
choosing one
company of each sub-sector in order to get a whole picture of the food industry.
Data collection: It would be carried on eight different interviews. Three of them will be for
experts
and around five will be for companies. The duration will be hopefully around one hour. The idea
is to
have an interview with different sectors within food industry in order to get as big picture as
possible
of the industry.
Data analysis: It will be follow the analysis which is usual when it is used un-structured
interviews as
research instruments. It will be used Content Analysis which according with Krippendorff (2004)
includes the following steps:
1. Identify the main themes.
2. Assign codes to the main themes.
3. Classify responses under the main themes.
4. Integration of the themes and the response in the report.
In order to help with this analysis and to find out the right conclusions, it will be used Nvivo data
Analysis which it will be very helpful in order to develop content analysis.
Research instrument:
The main instrument in order to develop the primary data in will be un-structured interview with
owners or managers of small Spanish companies which are already doing international business
and
on the other hand with experts in that field. According with Saunders et al. (2009) these are
often
referred to as qualitative research interviews. In this kind of interview, you have a list of
themes to
cover but you can manage them with flexible order or way. Other important reason to justify the
choice of this kind of instrument is according with Saunders et al. (2009
4.1.Research design
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The effectiveness of marketing segmentation strategies in British supermarket chain: the case of ASDA
4.2.Research methods
4.3.Research instrument
6. Ethical considerationThis study will maintain highest ethical standard. This research will not do anything which can
be ethically harmful on any element. To ensure the ethical standard, some guidelines will befollowed throughout the research and in its data collection procedure. The guidelines include the
following-
The participants in this research will participate willingly, they will not be forced orpressured to participate. The participation is totally voluntary.
The response of the participant will be kept in safe and secret If a participants want to stay anonymous, it is allowed The data will be presented as it found in the response, no manipulation and no bias
7. Research limitationTo conduct this research, some limitations can be faced by a researcher. In this section, these
limitations are highlighted. Firstly, time constraint allows spending only one month to data
collection, which not adequate. But the research will try to manage more time to get for data
collection.
Secondly, budget constraint, to conduct a research is becoming expensive. As the researcher has
limited income sources, the budget for research is limited as well.
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The effectiveness of marketing segmentation strategies in British supermarket chain: the case of ASDA
Thirdly, access to the participants in the interviews, are not available everytime. Sometimes
appointments are made but participants are not available for their business.
Fourthly, Supermarket chain industry is a very large industry in the world, and in UK it is large
enough to cover. In this research, it may not be possible to cover all over the industry in UK.
8. Time plan
Activity January February
01-28
March
1-31
April
01-15
April
16-30
May
01-15
May
16-31
June
01-30
July
01-14
July
15-31
Identifying research
topic
Proposal Form
Completing first draft
of LR
Completing LR
Methodology 1st
draft
Completing
Methodology
Collecting primarydata
Analysing primary data
Writing results and
analysis 1st
draft
Completing results
and analysis chapter
Writing introduction
and conclusion
Full write-up of major
project 1st
draft
Full write-up of major
project
Completing appendix
and references
SUBMITTING Major
Project to Sunderland
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7/29/2019 Rex Research Proposal
20/20
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http://www.gwk.udk-berlin.de/fileadmin/user_upload/Liebl/PDF/4_SEGMENTIERUNGNEW_CRITERIA_FOR_MARKET_SEGMENTATION_BY_YANKELOVICH.pdfhttp://www.gwk.udk-berlin.de/fileadmin/user_upload/Liebl/PDF/4_SEGMENTIERUNGNEW_CRITERIA_FOR_MARKET_SEGMENTATION_BY_YANKELOVICH.pdfhttp://www.gwk.udk-berlin.de/fileadmin/user_upload/Liebl/PDF/4_SEGMENTIERUNGNEW_CRITERIA_FOR_MARKET_SEGMENTATION_BY_YANKELOVICH.pdfhttp://www.gwk.udk-berlin.de/fileadmin/user_upload/Liebl/PDF/4_SEGMENTIERUNGNEW_CRITERIA_FOR_MARKET_SEGMENTATION_BY_YANKELOVICH.pdfhttp://www.gwk.udk-berlin.de/fileadmin/user_upload/Liebl/PDF/4_SEGMENTIERUNGNEW_CRITERIA_FOR_MARKET_SEGMENTATION_BY_YANKELOVICH.pdfhttp://www.dobney.com/Strategies/marketing_effectiveness.htmhttp://www.dobney.com/Strategies/marketing_effectiveness.htmhttp://en.wikipedia.org/wiki/Special:BookSources/9780131457577http://en.wikipedia.org/wiki/Special:BookSources/9780131457577http://en.wikipedia.org/wiki/Special:BookSources/9780131457577http://www.dobney.com/Strategies/marketing_effectiveness.htmhttp://www.gwk.udk-berlin.de/fileadmin/user_upload/Liebl/PDF/4_SEGMENTIERUNGNEW_CRITERIA_FOR_MARKET_SEGMENTATION_BY_YANKELOVICH.pdfhttp://www.gwk.udk-berlin.de/fileadmin/user_upload/Liebl/PDF/4_SEGMENTIERUNGNEW_CRITERIA_FOR_MARKET_SEGMENTATION_BY_YANKELOVICH.pdfhttp://www.gwk.udk-berlin.de/fileadmin/user_upload/Liebl/PDF/4_SEGMENTIERUNGNEW_CRITERIA_FOR_MARKET_SEGMENTATION_BY_YANKELOVICH.pdfRecommended