Decline in Sales of the Products of Best Bakers - Book Report/Review Example

MARKET RESEARCH REPORT + Lecturer Submitted Market Research Report A Report about a Research Carried Out by Committee Select to Seek the Possible Causes of Decline in Sales of the Products of ‘Best Bakers’ in the Market as Authorized by Best Bakers’ Management Board. Table of Contents 1.0 Executive summary………………………………………………………… 4 2.0 Research Methodology………………………………………………….. 5 2.1. Secondary research……………………………………………………. 6 2.2.0 Primary research……………………………………………………... 6 2.2.1 Oral interviews………………………………………………………. 7 2.2.2 Questionnaires……………………………………………………….... 7 2.2.3 Observations…………………………………………………………. 7 2.2.4 Survey research………………………………………………………. 8 2.2.5 Data analysis…………………………………………………………. 8 3.0 Findings……………………………………………………………………. 9 4.0 Recommendations…………………………………………………………. 10 5.0 Conclusions………………………………………………………………... 11 6.0 References…………………………………………………………………. 13 Executive Summary Bakers, established in the year 2005 is located in Chicago. The enterprise is concerned with production of pastries like bread, cakes of all varieties, cookies, doughnuts and biscuits. Located in the heart of Chicago, the pastry enterprise serves as the greatest provider of pastry products in the city. The industry has five sub branches within the city to reach out more city dwellers while providing them with the best quality pastries. All the divisions are headed by managers who are all answerable to one general manager (Tobin, 2010 pg 43). A steady communication thus exists between the sub branches and the main industry in the centre of Chicago. The company is headed by a general manager who works under the scrutiny of the board of management composed of ten able ladies and gentlemen. Within the sub branches, we have industrious managers who link the branches to the head quarters. They assume the role of the general manager and the board of management in their respective domains. Below the managerial positions, Best Bakers has instilled heads of division who are in charge of the numerous departments that propels the pastries plant (Zikmund, 2012 pg 44). The heads of departments supervise the workers within their respective departments. The industry has over two thousand workers in all the branches. Even though the company has managed to be at the helm of pastry processing in Chicago, it faces strife competition from other pastries industry. They include the most known pastry plants; the Chicago Pastry, Dave’s Bakery, Creamy Cakes and Best Breads Company. Apart from these, other local or small-scale pastry processers are scattered all over the city intensifying the completion we face. In spite of all these, our dominance in the market comes from the best quality and higher quantity of our products, the number of outlets we have all over the city and the good reputation we have (Larashati, Hudrasyah & Chandra, 2012 pg 12). Best Bakers stand out to respond to the physiological need of the people in form of food. We are aware of the extent of industriousness of Chicago citizens, such people deserve to eat better and more foods. That is the reason why Best Bakers was established. The Pastry also seeks to provide employment to the citizens to ensure that the people make an honest living and are free from social vices. The industry also intends to create a healthy relationship with the town dwellers evident in its endeavors to involve in charity, games and sports and communal work (Wilson et al, 2010 pg 43). The other objective of the business is to grow and establish its branches all over the states of America and in future overseas. However, over the last three months, the company has experienced a decline in the sales of its product. The problem has not been really felt in the main head quarters. Instead, it is rooted in the four sub branches, which since establishment have always boosted the general sales of Best Bakers. For instance, last month, the company registered a drop in sales by nine percent. This was an increased dropping rate from the previous month, which had registered a six percent. The vice keeps on increasing as observed in the branches and may soon result to Best Bakers experiencing losses (Larashati, Hudrasyah & Chandra, 2012 pg 45). The Board of Management thus issued a seven-member committee to look into the issue. They were required to carry out a meticulous research and investigate the probable causes of the drop in sale, analyze them and then site the exact cause. Thereafter, the committee is to identify workable recommendations that when put in practice will eradicate the above vice to Best Bakers. These are the objectives of the research carried out and well written in this report (Zikmund, 2012 pg 90). Research Methodology This section constitute of all the methods that were employed in carrying out the research of the problem in question. It is vital to note that the research was carried out thoroughly by professionals who are aware of what they do. Besides, the methods that were employed were rigorously selected to provide exact or accurate findings (Larashati, Hudrasyah & Chandra, 2012 pg 55). Secondary research: Aware that this was a recurrent problem and that which had affected other business enterprises related to ours, we resorted to first carry our research using this method. We had to gather all the possible secondary sources that harbored the vital information that we craved for. Previously done researched pieces of information played a pivotal role in the research part of our work. We looked at the information in many of the published journals in the internet. We also looked at published reports on the topic, “Causes Drop of Sales” present in the library. We also studied the published surveys for more information. Our inquisitive instincts also took as to already published books on sales and marketing from renowned authors to find out the scripted causes of drop in sales to find out a link to our company (Tobin, 2010 pg 30). Primary research: We commenced on primary research immediately after the secondary research. In spite of the available information, we felt it right to embark on primary research as it stood to be even more accurate. The following are the primary research methods we vested our work on Oral interviews: amongst ourselves, we grouped into pairs. Each pair then went to the streets and interviewed those clients or customers who were ready and willing to be interviewed. While at this, we armed with tape recorders to record our interviews and pens and note books for recording our findings. The interviews were carried out in the environs of all the four sub branches and randomly for accuracy of results (Larashati, Hudrasyah & Chandra, 2012 pg 46). Each pair was expected to interview at least twenty respondents who were to be picked randomly and then record the results accurately for easier analysis. Workers in the sub-branches were also interviewed and their opinion collected and recorded but separately from those of the consumers. Questionnaires: We drafted questionnaires with questions relating to our research. The questionnaires were written and flexible ones so that the respondents would be able to fully exhaust their opinions with regards to our company. A total of two hundred questionnaires were produced and were administered to clients or respondents who were willing to attend to them. Like in the interviewing case, the questionnaires were administered equally among the four sub branches’ environ with regards to number. Each sub-branch was issued with fifty questionnaires to be administered to the consumers and the workers (Tobin, 2010 pg 63). Observation: though not a popular method for this case, we were bold enough to try this method out. We were eager to identify and know the behavior of the consumers towards our products. We therefore posted informers in various retail outlets in Chicago to find out how customers or consumers reacted towards our products (Larashati, Hudrasyah & Chandra, 2012 pg 47). This method came out to be accurate from the fifty informers deployed in the retailing shops. They provided first hand information. Survey research: This method involved pulling together all those issues that we identified in the steps of our research. We identified the issues in the survey; we formulated survey questions from existing sources and created some. These questions were vital as they would work to streamline our survey. The population we carried out the survey on was to be large, comprising of customers within our four sub branches (Tobin, 2010 pg 66). They were to be customers of not just our pastries but also those who shopped the products from our rivals. Their information was dimmed vital. Our customers would give us a reason why they preferred our products while those who shopped pastries would give us a reason why they often opted against our products. This population was to be randomly picked. The sampling was to be simple random one within the listed areas. Each sample size constituted of fifty respondents. The sampling population proved to be cooperative (Zikmund, 2012 pg 12). Data analysis: When carrying out this research, we opted for the following research methods. We first used the secondary research methods. We then involved the primary research methods that entailed; oral and written interviews, questionnaire administration, observation and surveys conducted all in the affected area. These methods were opted for the following reasons; observation provided first hand information of the real issue in the grounds. Written and oral interviews were strategic since those dimmed busy and those not easily respond to them (Zikmund, 2012 pg 16). They also give firsthand information. This also applies to questionnaires provided. Survey as a research method is a scientific research method. The science aspect in it renders it and its results more accurate than any other method. Out of the two hundred questionnaires administered, the respondents responded to one hundred and eighty six. This number was good enough to be assumed of the whole. Sixty consumers and all the workers responded to the interviews. All the observers deployed in the retailing outlets each returned with information to the pooling center. The research through survey, though technical and hectic was successfully and correctly carried out (Zikmund, 2012 pg 11). The data collected were pooled at the by the committee. The committee to interpret them into findings carried out a serious and critical analysis of the research. This whole process contained the junk of our work and lasted for a week (Larashati, Hudrasyah & Chandra 2012, pg 43). Findings: After thorough scrutiny and analysis of the data collected during the research, the committee was able to come up with the following findings as the causes of the drop of sales experienced by Best Bakers over the last three months: The fluctuating prices of the products: it was realized that the company’s change of the prices of its products did not go well with the consumers. The consumers complained that most of the time, the prices changed with little or no prior notice (Larashati, Hudrasyah & Chandra, 2012 pg 45). When this occurred, the prices often hiked and never reduced making them uncomfortable to buy the pastries since most of them could not afford the products at the new prices. Hey thus opted for substitute products or those from rivaling companies (Ernst, Hoyer & Rübsaamen, 2010 pg 64). Some consumers were not comfortable with the quality of some our products. A section claimed that our cookies, for instance, had much sugar which was health unfriendly. Others claimed that our biscuits were not crunchy enough. This mixed reactions with regards to the quality of our product made us lose some customers. Promotion: it was also realized that the company had done very little with regards to promotion. For instance, advertising was not easily explored. Some consumers said our products were better but we had done very little with regard to commercial advertising and road show of our products. This proved it difficult for the company to access distant consumers and new consumers (Ernst, Hoyer & Rübsaamen, 2010 pg 75). Some also cited that the qualities of our adverts were relatively low and this made people loose taste in most of our products. Distribution hitches: it was realized through the analyzed data that despite the existing four branches in Chicago, reaching more consumers was still a hindrance. The population was hugely growing in Chicago and our efforts to expand could not match the population. Often in the retail shops, some customers missed our products in the shelves and this made them to lose confidence in us and opting against our products. With this taking place, the sales dropped (Ernst, Hoyer & Rübsaamen, 2010 pg 77). Some customers also said that there was a weakness in our physical evidence in the region. We had done very little to assure them. For instance, we lacked better and efficient vehicles for distribution. Some also said that a few of our staff were not well trained (Tobin, 2010 pg 62). Our website that the consumers always posted concerns was not operating effectively. All these made them loose trust in us hence the drop in sales. Failure to identify the specific customer was also found out to be a cause in Best Bakers sales drop. All this while, the company had been producing pastries oblivious of the consumers taste and preference. The company had failed to study the behavior and interest of the consumers. They made pastries without looking at what the clients really wanted or liked (Tobin, 2010 pg 63). This made some of them to lack options hence seek better alternatives elsewhere. Consequently, the sales dropped. According to the analyzed data, lack of better partners also led to this drop in sales. The company did not have vibrant and financially stable partners who would offer help in crisis. For example, the wheat-providing partner often sent their product late or even ferried insufficient flour. Such a partner proved a liability to the company resulting to more dropping in sales (Tobin, 2010 pg 68). The committee therefore had ample time to study and scrutinize the precise cause of the problem. It was therefore concluded that the drop in sales by Best Bakers was generally caused by improper implication of the 7Ps as marketing strategies and this vice could be avoided in future (Wilson et al, 2010 pg 45). Recommendation: as stated in the research objectives, the committee was not only expected to come up with the findings but also bring forth possible mitigation measures to the above findings or causes of drop in sales to be initiated as soon as possible (Tobin, 2010 pg 61). The following are the recommendations we identified: The company must employ a steady scheme of altering the prices of the commodities. Under this, the consumers must be notified on the impending price change prior to the change to prepare them psychologically. The company is also advised to issue out justifications or genuine reasons for the price change to the consumers so as to make the change reasonable. In addition to that, the new prices, if need be, should not hike obscenely such that majority of the consumers cannot afford them (Wilson et al, 2010 pg 30). The company should improve the quality and quantity of their products. The company should put into consideration that different consumers have different tastes and preference. Consequently, they should better the qualities of their products to fit the various tastes of consumers. Better yet, Best Bakers should diversify the quality of their products for that purpose. In addition to that, the pastry plant should also increase the quantity of their production and of the products for better sales. There is a great need for the company to hugely invest in promotion and advertising. Best Bakers has many consumers, but that is not enough. There exists that inaccessible group due to improper promotion. This is the reason why promotion is inevitable (Tobin, 2010 pg 66). The adverts running all over the media should be improved in terms of quality by hiring the services of the best and highly reputable advertising agencies. This stands to attract more clients by adding an aesthetic value to our products. The company must boost its distribution. The heads of distribution department must act fast to ensure that the hitches are solved. New trucks must be purchased for efficiency and effective distributions. Drivers of great expertise and acquaintance to the routs of distributions should be recruited to increase the efficiency in this department. The heads of departments are also advised to be vigilant in this department, cite any hitch and report it in time for redressing (Wilson et al, 2010 pg 32). The company must also beef up its physical look to woe more consumers to their shelves. This can be done by hiring competent workers, purchasing of more trucks and maintaining them, proper and glamorous packaging of the products to attract more customers. Addressing the needs of the consumers is long overdue. The company is urged to listen to the voice of the consumer first before processing any pastry. The consumer needs to feel respected and cared for by the products we pose to present to them. They deserve discounts, better commodity prices and quality from us. This, we must embark on for better sales (Wilson et al, 2010 pg 32). Best Bakers has come along a way. It is the best pastry plant in Chicago and the reputation and respect that we have earned from the public must remain so. Our sales have no doubt declined over the past few months. Fortunately, the great work done by this committee and is well presented in this report comes out as an emancipation from market hitches to greater profits that we deserve. We expect every single finding and recommendation in this document to be carefully looked at for a prosperous Best Bakers. References Ernst, H., Hoyer, W. D., & Rübsaamen, C. (2010). Sales, marketing, and research-and-development cooperation across new product development stages: implications for success. Journal of Marketing, 74(5), 80-92. Larashati, H., Hudrasyah, H., & Chandra, N. (2012). 7Ps of Green Marketing as Factors Influencing Willingness to Buy Towards Environmentally Friendly Beauty Products. In Proceedings of International Conference on Business Management & IS (No. 1). Tobin, R. L. (2010). U.S. Patent No. 7,729,931. Washington, DC: U.S. Patent and Trademark Office. Wilson, A., Johns, R., Miller, K. W., & Pentecost, R. (2010). Marketing research: an integrated approach: solving business problems: the value of marketing research. Zikmund, W., Babin, B., Carr, J., & Griffin, M. (2012). Business research methods. Cengage Learning. Read More