Upload
fakir-tajul
View
214
Download
0
Embed Size (px)
Citation preview
7/29/2019 Rex_research Proposal Sent
http://slidepdf.com/reader/full/rexresearch-proposal-sent 1/15
The effectiveness of marketing segmentation strategies in British
supermarket chain: the case of ASDA
7/29/2019 Rex_research Proposal Sent
http://slidepdf.com/reader/full/rexresearch-proposal-sent 2/15
Table of Contents
1. Background of the research ............................................................................................................... 3
2. Rational of the research topic ............................................................................................................ 3
3. Research aim, objectives and research questions............................................................................. 4
3.1. Aim ............................................................................................................................................... 4
3.2. Objectives of the research .......................................................................................................... 4
3.3. Research questions...................................................................................................................... 4
4. Literature review ................................................................................................................................ 5
4.1. Effectiveness of the segmentation strategy ............................................................................... 5
4.2. Key success factors of the business ............................................................................................ 5
4.3. Factors those provide the competitive advantage .................................................................... 7
4.4. Impact of environmental factors on ASDA's segmentation strategies ................................... 8
5. Research methodology ........................................................................................................................ 9
5.1. Research design ........................................................................................................................... 9
5.2. Research methods ....................................................................................................................... 9
5.3. Research instrument ................................................................................................................. 10
6. Ethical consideration ........................................................................................................................ 10
7. Research limitation ........................................................................................................................... 11
8. Time plan ........................................................................................................................................... 11
References................................................................................................................................................... 13
7/29/2019 Rex_research Proposal Sent
http://slidepdf.com/reader/full/rexresearch-proposal-sent 3/15
1. Background of the research
The 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 topic
Now 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).
7/29/2019 Rex_research Proposal Sent
http://slidepdf.com/reader/full/rexresearch-proposal-sent 4/15
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 questions
To 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?
7/29/2019 Rex_research Proposal Sent
http://slidepdf.com/reader/full/rexresearch-proposal-sent 5/15
What are the sources of competitive advantages?
What are the impacts of environmental factors on ASDA?
4. Literature review
Literature 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.
4.1. 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 for
interpretation of market dynamic in the industry and should not borrow it from others.
4.2.Key success factors of the business
KSF was first mentioned by Daniel (1961, p.111). Daniel‟s 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) found some
important variables affecting profitability of a business. These variables known as the strategic
factors, KSF, key result areas and/or pulse points. Later these scholars further researched and
found that these variables are influencing the success of business operation and lacking of the
7/29/2019 Rex_research Proposal Sent
http://slidepdf.com/reader/full/rexresearch-proposal-sent 6/15
variables caused failure. 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 analyze the relative competitive positions of the firm in an industry.
Key success factor when a new product failure occurred very frequently, and additionally, the
competition in the distribution channel are getting increased, one should use familiar brand name
to stay in the industry (Urban and Hauser 1993). Because by establishing similar brand name, the
acceptance o new brand is increased and it become a 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).
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 organization.
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 organization in the industry will pay attention to these
7/29/2019 Rex_research Proposal Sent
http://slidepdf.com/reader/full/rexresearch-proposal-sent 7/15
factors and use them as benchmarks for competitive performance. Organizations in the same
industry would however, have different critical success factors as a result of differences in
geographic location, strategies, product features and internal resources and competences.
4.3.Factors those provide the competitive advantage
Johnson and Scholes (2002, p. 108) define competences as “those competences that critically
underpin the organisation’s 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. According to Kaplan and Norton (1996), there are
twelve critical 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.
Customer Service: Exhibits a positive attitude while striving to understand and meet
customer requirements.
Learning Orientation: Actively seeks and applies new knowledge, learns from
experiences, seeks and accepts feedback from others.
Initiative: Demonstrates a bias for action, works independently to exceed expectations
and actively tries new ideas.
Job Knowledge: Demonstrates an understanding of relevant job knowledge and
responsibilities.
Management Skills: Utilizes budgets and staff to effectively manage projects and
programs. Strategic Thinking: Considers a wide range of options and makes decisions that have
the greatest impact on long-range goals.
Leadership: Has a compelling vision and influences staff to accept and support that
vision.
7/29/2019 Rex_research Proposal Sent
http://slidepdf.com/reader/full/rexresearch-proposal-sent 8/15
Developing Others: Actively provides support and feedback to staff about current
performance as well as future opportunities.
Dependability: Can be relied upon to meet commitments and demonstrates reliable
work progress.
Multitasking: Handles multiple activities and recovers quickly from disruptions or
interruptions.
4.4.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 the
analysis as the scope goes well beyond the industry interface. So the factors identified from
environmental analysis will have an important impact on ASDA‟s segmentation strategy, as it
involved with socio-political situation and environmental scoring and these factors are related to
the major decision on segmentation.
ASDA has to take care of its business environment, because it is important for the survival of
other backward and forward industries. Sometimes the environmental factors are becoming out
of control, then a firm need to adapt with the changing environment. In the external environment,
the elements are economic, social, political, technological, ecological and legal factors and these
influence and regulate the business environment of ASDA (Pearce & Robinson 1991,
Shirvastava 1994 and Wright et al. 1996). Environment can change the dynamics of critical
success factors of a business. Among the environmental variables, world economy, political
dimension, and ecological dimension can result a tremendous shift in the business trend.
Moreover environmental factors are responsible for the attractiveness of industry as well (Hax &Majluf 1996). The success of a particular industry is therefore influenced by the current and
future impact of external factors.
7/29/2019 Rex_research Proposal Sent
http://slidepdf.com/reader/full/rexresearch-proposal-sent 9/15
5. Research methodology
In 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 of research methodology are discussed below.
5.1. 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. Now it is time to choose inductive or deductive
approach. As it is decided that the research will be qualitative, so it will be appropriate to select
inductive approach. Because in inductive approach, a research can draw a conclusion from
different facts and evidence, in the contrary, deduction method measure the strength of
relationship between reasons and conclusions (Cooper and Schindler 2008). To measure the
segmentation strategy effectiveness, it will be needed to collect data from different sources and
then leading to a conclusion. So inductive approach will be used. The nature of the research will
be descriptive, as the effectiveness of the segmentation strategy can be found by analyzing the
market characteristics of ASDA.
5.2.Research methods
Sampling: usually for the effective use of samples, probability sampling methods are used, but
considering the easiness of data collection, it is better to choose non probability sampling
method. In this research, convenience sampling is chosen to be used as sampling technique.
7/29/2019 Rex_research Proposal Sent
http://slidepdf.com/reader/full/rexresearch-proposal-sent 10/15
Data collection: data will be collected from primary and secondary sources. Primary sources
include customers, employees and other stakeholders. It will be tried to cover other companies in
this industry, such as TESCO.
Data analysis: to analysis the data, content analysis method will be used. Krippendorff (2004)
describes this technique to have the following steps to analyze data-
1. Identify the major themes or issues.
2. Allocate codes to these points or issues.
3. Categorize the data based on the coding under the major points.
4. Combine the categorization and response to set it in the report. .
The technique will be used manually; no specialized software will be used. But for faster
analysis MS excel will be used for producing charts, tables etc. this tools will help to present the
research findings in graphical view.
5.3.Research instrument
The research instrument to be used in this research will be interview method. The interview will
to facilitate using a questionnaire including some questions. The nature of questions will be both
close and open ended. There will be a use of likert scale for recording the response of the
participants.
6. Ethical consideration
This 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 be
followed 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 or
pressured 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
7/29/2019 Rex_research Proposal Sent
http://slidepdf.com/reader/full/rexresearch-proposal-sent 11/15
The data will be presented as it found in the response, no manipulation and no bias
7. Research limitation
To 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.
Thirdly, access to the participants in the interviews, are not available every time. 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 JanuaryFebruary
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
Deciding theresearch topic
Submit Proposal
Writing literaturereview
Completingliterature review
WritingMethodology
CompletingMethodology
Collecting primary data
Analysing primary data
Writing resultsand analysis
7/29/2019 Rex_research Proposal Sent
http://slidepdf.com/reader/full/rexresearch-proposal-sent 12/15
Completingresults andanalysis
Writingconclusion
Full write-up of
major project
Submission of Project
7/29/2019 Rex_research Proposal Sent
http://slidepdf.com/reader/full/rexresearch-proposal-sent 13/15
References
Aaker, D.A. (2001), Strategic Market Management, 6th ed., John Wiley & Sons, New
York.
Ansoff, H.I. (1965), Corporate Strategy, McGraw-Hill, New York.
Betz, F. (1993), Managing Technology Competing Through New Ventures, Innovation,
and Corporate Research, Prentice Hall, N. J.
Chandler, A.D. (1962), Strategy and Structure, Cambridge, Harvard University.
DeVellis, R.F. (1991), Scale Development: theory and applications Newbury Park, Sage
Dobney.com [online] Research for decision, Marketing effectiveness.
http://www.dobney.com/Strategies/marketing_effectiveness.htm [accessed on 08.02.12]
Ellegard, C. and Grunert, K. (1993), „The Concept of Key Success Factors: Theory and
Method‟, in Baker M (ed.), Perspectives on Marketing Management , Wiley, Chichester.
Farjoun, M. (1998), „The Independent and Joint Effects of the Skill and physical Bases of
Relatedness in Diversification‟, Strategic Management Journal , vol. 19, pp.611-630.
Fishman, A.(1998), „Critical Success Factors, Key to Attaining Goals‟, Inside Tuscon
Business, vol.8, no.17, pp.10-12.
Glueck, W.F. (1980), Business Policy: Strategy Formulation and Management Action,
3rd ed., McGraw-Hill, New York. Guth, W. D. (1976), „Toward a Social System Theory of Corporate Strategy‟, Journal of
Business, vol.49, pp.374-388.
Hambrick, D. C (1983), „High Profit Strategies in Mature Capital Goods Industries: A
Contingency Approach‟, Academy of Management Journal vol.26, no. 4, pp.687-707.
Harrison, J. S. (2003), Strategic Management of Resources and Relationships, John
Wiley & Sons, NY.
Hax, A.C. and Majluf, N.S. (1996), The Strategy Concept and Process, Upper Saddle
River, Prentice Hall, NJ.
Hitt, M.A., Ireland, D. and Hoskisson, R.E. (2003), Strategic Management:
Competitiveness and Globalisation, Mason, OH: South Western.
Hofer, C. W. and Schendel, D. (1978), Strategy Formulation: Analytical Concepts, MN:
West, St. Paul.
7/29/2019 Rex_research Proposal Sent
http://slidepdf.com/reader/full/rexresearch-proposal-sent 14/15
Hofer, C.W. and Schendel, D.E. (1979), Strategic Management: A New View of Business
Policy and Planning , Little, Brown and Co., NewYork.
Johnson, G. and Scholes, K. (2002), Exploring corporate strategy, Prentice Hall,
Hertfordshire.
Kaplan, R.S. and Norton, D.P. (1996), Translating Strategy into Action:The Balanced
Scorecard , Harvard Business School Press, Boston
Kim, L., and Lim, Y. (1988), „Environment, Generic Strategies, and Performance in a
Rapidly Developing Country: A Taxonomic Approach‟, Academy of Management
Journal vol.31, no.4, pp.802-27.
Kotler, P. and Kevin, K. (2006). Marketing Management. Prentice Hall, ISBN
9780131457577
Leidecker, J.K. and Bruno, A.V.(1984), „Identifying and Using Critical Success
Factors‟, Long Range Planning , vol.17, no.1, pp.23-32.
Lynch, R. (2003), Corporate Strategy, 3rd ed., Prentice Hall, London.
McKee, D.O., Varadarajan, P.R., and Pride, W.M. (1989), „Stategic adaptability and firm
performance: a market-contingent perspective‟, Journal of Marketing , Vol. 53 pp.21-35.
Miles, R. and Snow, C. (1978), Organizational Strategy, Structure, and Process,
McGraw-Hill, New York.
Miller, D. (1988), „Relating Porter's Business Strategies to Environment and Structure:Analysis and Performance Implications‟, Academy of Management Journal vol.31, no. 2,
PP. 280-308.
Mintzberg, H. (1987), „Crafting Strategy‟, Harvard Business Review, pp. 66 — 74.
Mintzberg, H. (1993), The Rise and Fall of Strategic Planning:Reconceiving Roles for
Planning, Plans, Planners, Simon & Schuster.
Pearce, J.A. and Robin, R.B. (1991), Strategic Management:Formulation,
Implementation and Control , Homewood, IL:Irwin.
Porter, M. E.(1980), Competitive Strategy: Techniques for Analyzing Industries and
Competitors, The Free Press, New York.
Porter, M.E. (1980), „Industry structure and competitive strategy: keys to profitability‟,
Financial Analysts Journal, vol.36, no.4,pp.30-41.
7/29/2019 Rex_research Proposal Sent
http://slidepdf.com/reader/full/rexresearch-proposal-sent 15/15
Thompson, A.A. and Strickland, A.J. (2002), Strategic Management Concepts and Cases,
8th ed., Irwin, Boston.
West, M. A. and Farr, J. (1990), Innovation and Creativity at Work , Wiley, Chichester.
Williamson, P. J. and Verdin, P.J. (1992), „Age, experience and corporate synergy - when
are they sources of business unit advantage‟, British Journal of Management, vol.3, pp.
221-236.
Yankelovich, D. (1964) New Criteria for Market Segmentation, Harvard Business
Review, March/April 1964. http://www.gwk.udk-
berlin.de/fileadmin/user_upload/Liebl/PDF/4_SEGMENTIERUNGNEW_CRITERIA_F
OR_MARKET_SEGMENTATION_BY_YANKELOVICH.pdf [accessed on 10.02.12]