The Consumer Goods Company - Case Study Example

Research Problem Introduction: The consumer goods company chosen for this research proposal is Morrisons, UK. This company has a number of opportunities to increase its expansion and net income by gaining more market share in the UK. This company faces a high degree of competition from a number of other players in the market. The most important aspect that a consumer goods company has to focus on, is the user behaviour and loyalty trends (Fergusen and Hlavinka, 2006) Research Design: In order to conduct a research successfully, the research objectives have to be carefully finalised and a proper research should be designed. Hence it is essential to list out the objectives. What customers actually expect from Consumer Goods Company and reasons for their switch and loyalty? What experts consider as important, to increase customer satisfaction and retention? These are the research objectives that are to be addressed in order to improve the internal as well as external processes of the chosen company, Morrisosns. The first objective addresses the important question of what the customers actually expect from the consumer goods company. This is very important as the customer requirements play an important role in the company’s strategy (Jobber, 2004). The second objective is equally important as the experts’ opinion gives a direct and clear understanding of the steps that are currently being taken in the market to increase customer loyalty and to reduce customer churn rate. Hence the research has to focus on obtaining data and views from experts, in order to effectively arrive at a conclusion for the issues in hand. Research Methods: In order to finalize the research method to be adopted, it is worthwhile to understand the basic methodologies. There are two basic types of research, namely, qualitative and quantitative research. Quantitative Research: Quantitative research is a systematic method of investigation of quantifiable properties and entities (Jobber, 2004). It is a scientific method used both in social as well as other research forms. Generally, quantitative research is a repetitive process for evaluation of results and hypotheses. The chief aim of quantitative research is to apply mathematical techniques, hypotheses, theories and tools so as to have quantifiable results. The results are measured and scaled indicating the connection between mathematical models and empirical expressions of relationships that are quantitative in nature (Saunders, et al, 2000). Qualitative Research: Qualitative research takes into account an in-depth view of behavior patterns of people. It aims at finding the reasons behind each aspect of behavior or trend that is displayed. It becomes an answer to the how and what for the decision making unlike quantitative method being results of questions related to the what, when and where aspects (Jobber, 2004). Qualitative or phenomenological methods tend to produce rich intensive data relating to small numbers of people and moreover, they tend to provide more contextual data – which adds value to other data – while acknowledges the fundamental complexity of certain social phenomena (Walker, 1985). Hence, qualitative research need not have a very large sample; however a focused sample is necessary which helps the classification of data into patterns so as to form the basis for interpretation of results and for report making and organizing the results (Saunders, et al, 2000). Based on these discussions, it is evident that for the first research objective, quantitative research will suit the best whereas for he second objective, qualitative. Data Collection Techniques: For the quantitative analysis, the most common data collection technique is to conduct surveys. In this case, a combination of manual and online surveys can be used for ease of data collection at remote areas or in the areas where the company does not have an outlet. A questionnaire has to be designed initially based on the research objectives. This can then be distributed to the customers. One of the effective measures to increase response rate is to provide incentives for people who take part in the survey. For the qualitative research, it is essential to conduct in-depth interviews and collect the views of experts in the field. These interviews can then be analyzed and a descriptive conclusion can then be written based on the responses from the experts. Sampling Procedure: A sample, as the name implies, is a smaller representation of a large whole. In other words, a section of the population selected so that they represent the entire population. Sampling process has to be procedural and not judgemental (Jobber, 2004). Initially, the population has to be defined, which in this case is the population in the country. From this population, a sampling frame is set. In this case, the majority of people who shop for consumer goods for their entire families, i.e., 25 – 35 age groups are considered. The sampling unit is specified; i.e., the 25 – 35 age group who shop at various consumer goods store closer to their localities and also the people who shop frequently over the internet for their goods. The sampling size has then to be determined mathematically, in order to obtain results within the specified confidence internals. This is a crucial decision, as the response rate from the sample should also be considered, as it can turn out to be a very low percentage. Hence the sample size has to be determined based on the response rate and the number of valid responses required in order to conduct a credible analysis on the data collected. Conclusion: The research proposal outlined in this report will provide valuable information to the consumer goods company, as it focuses on the important aspect of the business, i.e., consumer behaviour and loyalty trends. It is worthwhile to invest time and money on this research, as it will provide valuable guidelines as to what the company has to focus on, in order to retain the existing customers as well as to acquire new customers. Also, the research obtains valuable insights from the experts in the field. This will throw light on the future challenges that the companies might face due to new innovations in technology. The company has to keep itself updated and upgrade its processes continuously in order to outrun the competition. Bibliography: Ferguson, R. and Hlavinka, K., 2006, ‘Loyalty Trends 2006: Three Evolutionary Trends to transform your Loyalty Strategy’, Journal of Consumer Marketing, Nov 5, 2006, Vol. 23, p292-299 Jobber, D., 2004, Principles and Practice of Marketing, 4th Edition, McGraw – Hill, Berkshire Saunders, M., Lweis, P. and Thornhill, A., 2000, Research Methods for Business Students, 2nd Edition, Prentice Hall, London Walker, R., 1985, An Introduction to Applied Qualitative Research, Aldershot, Gower Watson, R. T., Akselsen, S. and Pitt, L. F., 1998, ‘Attractors: Building Mountains in the Flat Landscape of the World Wide Web’, California Management Review, p36-43 Read More