Need for E-Commerce Activities as Major Marketing Strategy - Research Proposal Example

Research Proposal for Need for e-commerce activities as major marketing strategy Summary This is market research proposal that is designed to improve the sales of ALDI, Australia, in the competitive business environment of contemporary times. The company just has an online presence but has yet to start e-commerce activities. The online business of the enterprise lacks effective control and is bogged down with problems like non updated information and inability to gauge the demands of the people at large. Objectives Analyze the impact of electronic commerce on the marketing strategies of the business and enterprises. Results The results of the research are expected to greatly enhance the sales figure of ALDI stores Conclusions The study would prove the relevance of e-commerce in the fast changing global economy and necessitating the urgent need to address the change in market strategies so that the challenges of the cyber market could be met. Recommendations Once the actual research is carried out, the wide scope of the outcome would facilitate appropriate recommendations that would give fresh impetus to the ALDI stores to meet the challenges of the changing preferences of the customers. Table of contents Introduction 4-5 Background 4 Statement of the problem 4 Objective of the study 4 Hypotheses 5 Research question 5 Time schedule 5 Methods 6-9 Research reviews 6 Framework of study 7 Sample collection and analysis 8 Data Analysis 8 Strength and Weaknesses 8 Results 10 Conclusion and Recommendations 11 References 12 Introduction 1. Background First ALDI ‘service store’ was opened in 1913 in Essen, a small town in Germany. By 1960, there were more than 300 stores and the company started the new concept of ‘self service’ which became a huge success with the customers. The expansion of ALDI stores continues, both in terms of goods and services as well as increasing number of branches across the globe. At present, ALDI has more than 7000 branches across three continents. The first Australian store came into existence in 2001 and now has more than 200 stores in across New South Wales, ACT, Queensland and Victoria. The store thrives on its policy of ‘all people, wherever they live, should have the opportunity to buy everyday groceries of the highest quality at the lowest possible price’(ALDI.com.au, 2009). But with the increasing competitive business environment, need for e-commerce activities have become essential market strategy in overall business strategy of ALDI. 1.1 Problem Statement The changing environment of new mode of communication which seems to have direct bearing on the consumer behaviour, has posed a serious problem to the marketing strategies of ALDI as it still relies heavily on following traditional ways of marketing their goods and services through retail outlets. The online business of the enterprise lacks effective control and is bogged down with problems like non updated information and inability to gauge the demands of the people at large. It therefore has become important that the studies must be conducted to evaluate and assess the impact of changing environment on the various aspects of the business. 1.2 Objective of the study The purpose of the study is to Analyze the impact of electronic commerce on the marketing strategies of the business and enterprises. 1.3 Hypothesis The internet has changed the concept of marketing. The use of internet as a more efficient and fast mode of communication has also facilitated dissemination of information thereby providing a wider scope of market to choose from. The changing behaviour of the consumers can also be contributed to the advent of internet. Indeed, ‘we realized that the “objects” of strategy – such as business units, industries, supply chains, customer relationships, organizational structure, and so forth – are held together by a “glue”, and that glue is essentially information’ (Evans, Wurster, 2000). The use of e-commerce, therefore, has especially become highly pertinent in the current competitive environment which is facing recessive trend. 1.4 Research Questions In the new environment of advanced technology, should marketing strategies need to be changed? Is e-commerce an important factor in the current environment of advancing technology and recessive trend? 1.5. Tentative time frame Serial Activity Months 1. Field Work 3 2. Compilation of data 2 3. Data entry and processing 1 4. Data analysis and evaluation 1 5. Writing and printing 2 Methods 2. Review of the literature The various literature throwing light on the growing influence of internet in the various aspect of the business ventures and enterprises, especially in the times when globalization is become a hard reality, helped provide a strong incentive for the need to study the impact of the e-commerce in the marketing strategies of enterprises. As per an article “E-commerce is an economic solvent. It dissolves old business models and changes the cost structure, and rearranges links among buyers, sellers, and everyone in between. The impact of e-commerce is happening in phases” (Kalakota, Robinson, 2002). Levitt says that the marketing takes into account the preferences of the customers and thereby builds a solid customer loyalty that result in sustainable customer base that has potential for growth because it continues to satisfy the changing requirements of their needs (Levitt, 1960). Electronic database greatly facilitates in evaluating the changing needs of the masses. Smith P.R. and Chaffey D. also assert that ’E-Marketing Excellence, The Heart of E-Business” argued that E-commerce is commonly thought to include e-tailing, online banking and shopping – it involves transactions where buyers buy and shoppers actually shop. Others suggest e-commerce is any transaction such as a support or an online catalogue search’ (Smith, Chaffey, 2002). Michael Rappa from North Carolina University considers that “A business model is the methods of doing business by which a company can sustain itself, that is, generate revenue. The business model spells out how a company makes money by specifying where it is positioned in the value chain" (Rappa, 2005). The need to combine the two market strategy has become imperative. Holistic marketing - this new paradigm combines the best of traditional marketing with new digital capabilities to build long-term, mutually satisfying relationships and co-prosperity among all key stakeholders (Kotler, Dipack, Maessecee, 2003). The technology and e-business played a vital part in rejuvenating the core business activities. Shultz say that it is the end-users who now control the markets rather than the marketers (Shultz, 2001). The rapid globalization has created a pluralistic society which has diverse needs and requirement. The strategies must understand the wider implications of the emerging multicultural society and improvise techniques and skills to encompass traits and behavioral pattern that facilitates better perception and understanding of people. 3.1 Framework of study The proposed research study would be qualitative in nature and would involve comprehensive literature review. The qualitative research is based on the grounded theory that effective market strategy greatly improves the sales of the goods and services. Qualitative research is a very important tool for evaluating trends and behavioural pattern of the people who are in a position to influence a set of defined parameters or vice versa. It helps to analyse the changing paradigms of the evolving social values and the factors that affect the decisions for adopting the changes. Since the research involved the study impact of e-commerce in the marketing development, qualitative analysis was found to be the most pertinent methodology. The study would be taking into account the conceptual model as well as the theoretical model. Secondary information sources such as libraries, commercial bibliographic databases for peer review, internet resources and e journals would be used for literature review. The wider conceptual model of the research would be used to analyze the data. 3.2 Data collection and Sample Since qualitative research methodology was adopted focusing on literature reviews, the sampling primarily comprised of reading works of wide ranging authors on the topic concerned who had compared different approaches to the same issue but with different perspectives. 3.3 Data Analysis The ‘typology method’ of data analysis would be adopted. ‘It is a classification system, taken from patterns, themes or other kind of group data’ (Lofland & Lofland, 1995). In this case, the literature contents would be segmented according to pre-defined criteria of theme, pattern and issues to develop and predict pattern that best reflect the sentiments of the people. 4. Strengths and limitations Comprehensive sampling with wide ranging factors which are significantly influencing the quality and cost of healthcare would be identified in the literatures so that the scope of study is large enough to ensure success of the research’s aims and objectives. Another strong point of the study is the wide diversity in the sample selected which would ensure wide scope of accurately measuring the performance index and criteria for quality healthcare. The qualitative research approach is highly relevant as it deals primarily with the feelings of the target subjects and hence requires something more than numbers to evaluate the emotional impact of their feelings on the issues and factors which are under study. The qualitative methods are comprehensive in their understanding of the social relationships and try to evaluate behavioural pattern of the people or target subjects so as to evolve new theories that can correctly interpret the social changes. They are, at the same time, designed to consolidate the perspectives and experiences of the subjects to portray and reflect the behavioural pattern that may determines the aims and objectives of the research. The limitation was that we had to take into account only one aspect of the impact of the e-commerce and the study was designed to predict the future trends of consumers to use e-commerce. Results The results of the research are expected to greatly enhance the sales figure of ALDI stores and thereby provide the company with a cutting edge leverage against their business rivals. Conclusion and Recommendation 5. Conclusion E-commerce is fast emerging as a major platform of a new market designed to cater to the future. The internet has revolutionized the communication and has created a whole new segment of market with diverse needs and expectations. The e-commerce has opened new frontiers of market that has unlimited scope and opportunities. The study would prove the relevance of e-commerce in the fast changing global economy and necessitating the urgent need to address the change in market strategies so that the challenges of the cyber market could be met. Recommendations Once the actual research is carried out, the wide scope of the outcome would facilitate appropriate recommendations that would give fresh impetus to the ALDI stores to meet the challenges of the changing preferences of the customers. (1509) Reference ALDI. Available from: [Accessed 30 August, 2009) Evans Ph., Wurster T.S. (2000). ‘Blown to Bits: How the New Economic of Information Transforms Strategy’. Harvard Business School Press. Kalakota R., Robinson M (2001). ‘E-business: Roadmap for Success 2.0’. Addison-Wesley. Kotler Ph., Dipak C. Jain Maesincee, S. (2003). ‘Marketing Moves’. Available from: [24 August, 2009]. Levitt, Theodore.(1960). ‘Marketing Myopia’. Business Harvard School Review. Available from: [24 August, 2009]. Lofland, John & Lofland, Lyn H. (1995). Typological Systems: Analyzing social settings, 3rd ed. Belmont, Cal.: Wadsworth. Rappa M. Managing the Digital Enterprise. Available from: [24 August, 2009]. Smith P.R., Chaffey D. (2002). ‘E-Marketing Excellence. The Heart of e-Business’. Elsevier Butterworth Heinemann. p.35-78. Shultz, Don E. (2001). ‘Bid Farewell Strategy based on old 4Ps’. Marketing news; Feb 12, 2001; 35,4; ABI/INFORM Global. p 7. Read More