Marketing Retailing Stores in Saudi Arabia and Britain - Research Proposal Example

Many retailing stores continue to experience difficulties in development of marketing strategies which enhance quick brand identity. This research seeks to establish the effects of marketing strategies adopted by retailing outlets on customer patronage. The customer behaviour affecting the shopping trends is also studied within the context of the research. Understanding customer behaviours becomes essential in developing marketing strategies aimed at increasing sales volume in retailing outlets. The research aims at understanding the consumer behaviours in Saudi Arabia and Britain through undertaking a comparative research. This understanding remains an essential component in development of services aimed at providing sufficient customer satisfaction. The study comprises of a population of all registered retailing outlets with samples of hundred stores in each country. Stratified sampling shall be utilised in sampling of the selected retailing stores within the population. Data analysis and processing shall be undertaken manually through undertaking close reviewing of the collected data. TABLE OF CONTENTS ABSTRACT 1 TABLE OF CONTENTS 1 CHAPTER 1: INTRODUCTION 2 1.1.Background 2 1.2.Statement of problem 4 1.3.Objectives 4 1.4.Research questions 5 1.5.Justification 5 1.6.Scope 6 CHAPTER 2: LITERATURE REVIEW 6 2.1.Introduction 6 2.2.Research hypothesis 7 2.3.Theoretical framework 7 2.4.Summary 9 2.5.Research gaps 10 CHAPTER 3: METHODOLOGY 11 3.1.Research design 11 3.2.Population 11 3.3.Sampling frame 11 3.4.Sample and sampling technique 11 3.5.Data collection procedure 12 3.6.Data processing and analysis 12 REFERENCES 12 CHAPTER 1: INTRODUCTION 1.1. Background Grocery stores across the world normally manage to market themselves through providing services aimed at satisfying the target market. Before engaging in the business of retailing outlets, business owners must understand the prevailing shopping trends among the target customers. This kind of understanding makes marketing an essential component of successful business operations for retailing stores. The factors affecting shopping trends in retailing stores vary significantly between different states. These variations contribute significantly towards the development of specific shopping trends among individuals residing in certain part of the world. Variations in shopping trends, therefore, become a fundamental element in determining the success of a retailing store located in different states. Increased globalisation of business operations continues to necessitate differentiation of business operations in order to suit the various customer requirements. A comparison of Saudi Arabian and British consumers of grocery store products could potentially reveal the existing discrepancies in the shopping trends in different parts of the world. The European and Asian continents remain some of the biggest target markets for retailing outlets seeking global presence. In Saudi Arabia for example, perceived selection risk remains a major determinant of supermarket patronage among many shoppers(Yavas & Tuncalp, 1984). In the European market, the British retailing sector continues to rank among the best based on management and attained annual profits. The emerging competition from international retailing outlets, however, continues to cause competitive threats for existing retailing stores(Steve & Sparks, 1994). The globalisation of retailing store business therefore, requires sufficient understanding of the target market and introduction of new services. This proposal seeks to provide an understanding of the prevailing issues pertaining to global retailing store business. Clients in different countries have different concerns resulting in patronage with retailing stores. This research seeks to provide an analysis of the existing services resulting in patronage within Europe and the Middle East. As one of the most popular countries in the Middle East, Saudi Arabia becomes the best example to represent the rest of the Middle East. Britain on the other hand can be classified as consisting of the best retailing outlets in Europe(Steve & Sparks, 1994). Though the trading differences in Britain and continental Europe might be immense, a comparison of Britain and Saudi Arabia represents the perfect sample for Europe and Middle East. These two countries have been identified as retailing store leader within their respective regions. The research shall focus on the existing retailing stores within these two countries, as examples to respective continents. 1.2. Statement of problem In international business operations in retailing outlets, shoppers commonly derive patronage for stores from different services offered. The various services offered within these stores become a fundamental marketing element for the specific store. Global marketing of retailing stores becomes an extremely difficult task following the existence of discrepancies in shopper behaviours. Understanding the shopper behaviours in the different target regions, therefore, becomes fundamental to developing successful marketing strategy. The marketing concepts of retailing stores at the global arena are also affected by existing regulations resulting in operating procedure differences. Owners of retailing outlets continue to introduce services aimed at establishing brand identify and consequently increasing consumer loyalty(Knox & Denison, 2000). Despite these services, however, majority of the target clients do not begin shopping within those retailing outlets. Brand establishment, therefore, becomes difficult when the marketers fail to understand the consumer behaviours. Marketing of the retailing stores becomes fundamental aspect for development of brand name, within a short duration. The discrepancies existing in shopper behaviours create a surmountable challenge in development of efficient marketing strategy for the stores. 1.3. Objectives The research is based on the following objectives Determine the various marketing strategies employed by retailing outlets to achieve brand recognition. Establish the consumer desires which could result in increased patronage for different stores within different countries. Establish the existing consumer behaviour in the countries under study Determine the effects of different consumer behaviours on the overall business operations for the retailing outlets, within these countries. 1.4. Research questions The research seeks to answer the following research questions: 1. What are the marketing strategies being utilised by retailing stores to achieve brand recognition? 2. Which notable consumer desires result in consumer patronage with the retailing outlets? 3. What are the consumer behaviours within these countries 4. How do the consumer behaviours affect the business operations for the retailing outlets within different countries? 1.5. Justification Within the retailing store business operations, various marketing strategies can be applied when seeking brand development and consumer patronage. This research aims at identifying the commonly applied marketing strategies in different countries, which can enhance successful business operations. The researcher targets to operating retailing outlets and can be of immense benefit to owners of these retailing stores. The research shall deliver reliable information which can be utilised by retailing store marketers to understand consumer behaviour, and consequently develop strategies which could enhance increase business for the stores. 1.6. Scope The study focuses on existing retailing stores consumer behaviour differences in different countries. The study utilises Saudi Arabia and Britain as the sample countries providing existing differences in retailing outlets within various regions. CHAPTER 2: LITERATURE REVIEW 2.1. Introduction The concept of retailing stores continues to receive increased popularity among many individuals. this commonly occurs because contrary to the traditional grocery stores, which stocked few food items, modern retailing outlets stock varieties of food an non-food items. The increased popularity of these stores could be identified to result from the desire to shop for many items within a single store. Consumers, however, keep moving from store to store despite the availability of many items within a single store. This consumer behaviour continues to cause increased competition among retailing outlets. The retailing stores commonly engage in competition for consumers through offering different services seeking to increase customer numbers. A major determinant for the numbers of customers visiting a particular retailing outlet remains the behaviours exhibited by the customers. Brand identity among the retailing outlets remains one of the leading desires aimed at enhancing customer numbers within different stores. While the services introduced seek to increase customer numbers, majority of the outlets work hard towards development of strong brands. The concept has been identified as one of the leading business strategy for ensuring market leadership, within the retailing outlet businesses(Uusitalo, 2001). The pursuit for considerable market share remains the major concern for retail store managers. In achieving the desirable market share extensive marketing strategies must be engaged to ensure sustainable prosperity of the business. This includes numerous services and products introduced with the sole aim of attracting increased numbers of customers. 2.2. Research hypothesis Marketing strategies by retailing outlets contribute towards patronage within those stores, consequently resulting in quick brand identity 2.3. Theoretical framework Many modern retailing outlets have adopted various business strategies aimed at enhancing competitiveness of businesses in an increasingly competitive business environment. Marketing for the retailing outlets remains a key element in gaining a competitive advantage. Different retailing stores have adopted various strategies aimed at improving the services, and consequently achieving a sustainable competitive advantage for their businesses. Numerous stores have focused on offering good services to their customers, aimed at achieving customer retention and store patronage. The idea of patronage in stores continues to be identified as a leading indicator of considerable customer satisfaction with business products and services. Research indicates that the services available within the retailing stores, contribute significantly towards patronage of customers(Dariana, Wimana, & Tuccib, 2005). These services are commonly observed through the attitude of salesperson towards the clients. Service delivery by salesperson is normally analysed by customer experience in terms of the customer perception. These experiences include salesmen friendliness, respect responsiveness among many others. Customers who feel being appreciated while shopping in different stores are likely to return to those stores(Dariana et al., 2005). Similarly, the level of patronage is bound to increase following such customer return to same store. Increased patronage in retailing stores remains a leading concept for enhancing competitiveness, and remains a perfect marketing strategy. Achieving such patronage however, remains an elusive element because of the varying customer behaviours within the target customers. Retailing outlets must comprehensively understand the customer behaviours in order to introduce services which enhance customer patronage. Increased patronage results in customer loyalty towards specific retailing outlets, irrespective of their location(Knox & Denison, 2000). The retailing business in the 21st century has undergone tremendous transformation resulting in expansion beyond national borders. Many retailing stores have adopted a global approach to expansion and business prosperity. This has necessitated strong brand development, which remains fundamental to easy market entry in foreign countries. The development of a strong brand remains essential before exploring the international retailing market. retailing outlets have adopted franchising as the best method of ensuring global presence of their brands(Petersena & Welch, 2000). Development of strong brands remains the beginning point in globalisation of retailing operations. Franchising has continuously enabled many retailing outlets to globalise their operations while maintaining their brand names. The extensive availability of stores globally has been utilised in gaining the patronage of individuals who travel extensively. These individuals are able to access the services of these stores from different global locations. The large Saudi Arabian retailing outlets commonly engage expatriates in their operations. This strategy contributes significantly towards acceptance of their brands within their native country. These moves can be efficiently utilised in enhancing global acceptance of developed brands. With most retailing stores operating as self-service selling points, the presence of expatriates has insignificant influence on the customer experience(Alawi, 1986). The globalisation of workforce has enabled these stores to have varieties from the contribution of different individuals into the store operations. These retailing outlets focus on brand development through construction of attractive stores. The arrangement of items, within the store is mainly focused on ensuring quick identification of items by customers. These moves consequently contribute towards successful brand development and increased customer volumes(Al-Sudairy, 2000). The planning of the retailing stores also becomes a marketing element for the outlets as it enhances customer experience, consequently causing patronage and customer retention. On the other hand, British retailing outlets have opted to undertaking online trading as a method of globalisation and brand development. Through conducting online business and sales, the established brands have enabled customers to reach the retailing stores from different locations(Rafiq & Fulford, 2005). Online shopping has continued to gain popularity within the United Kingdom even among other industries. Big retail brands have continued their dominance both online and offline trading in the retail industry. Brand extensions through online trading have enabled Tesco and Sainsbury’s to achieve surmountable level of customer loyalty. The move has also increased the market leadership as the retailing outlets have been able to receive large number of customers from their competitors(Rafiq & Fulford, 2005). Store loyalty for these two giant retailers has been successfully transferred from offline to online business. 2.4. Summary Different strategies have been adopted by retailing outlets in Saudi Arabia and Britain, which have enabled the development of retailing brands. Based on the existing consumer behaviours, business operations in the two countries have been undertaken differently while seeking to achieve brand recognition and competitive advantage within the grocery stores industry. In Saudi Arabia, market leaders have adopted a strategy of introducing technological devices within major malls. This has enhanced customer experience through the utilisation of modern technology(Al-Sudairy, 2000). Limited technology within many retailing outlets within the country has remained an impediment to brand development within the country. The major difference with the two countries, however, remains the technological and development levels of the entire country. While in Saudi Arabia, the introduction of IT systems within the stalls has increased sales the situation is not similar in Britain. British retailing outlets have adopted an approach of going online, while others have opted to introduce promotions and discounts to loyal customers(Steve & Sparks, 1994). 2.5. Research gaps The retailing outlets have adopted different strategies aimed at improving brand development in various regions. There are various existing gaps within this research. These gaps include Technology – this has been utilised differently in the two countries. While Saudi stores have adopted it through automation, British stores have gone to online business. Customers – Saudi stores are focused on ensuring customers make large purchases by offering a wide display of items. British retailing stores however, focus on large numbers of customers, hence their approach for seeking different selling channels like online trading. CHAPTER 3: METHODOLOGY 3.1. Research design The research is a comparative analytical research seeking to establish the various marketing strategies applied by retailing store to achieve brand identity, in Britain and Saudi Arabia. This research explores into the desires and requirements of customers displayed through their shopping behaviours. All elements of the research are provided in comparison of the two countries under study. The research seeks to establish the most efficient retailing operations method based on information gathered from the collected data. 3.2. Population The research population shall include all legally registered retailing outlets within the two countries under comparison. 3.3. Sampling frame The sampling frame for this research shall consist of all legally registered retailing outlets within the country. The sampling frame shall be retrieved from government registers for existing retailing outlets within the country. Retrieving this information from government resources shall ensure minimal sampling bias, as the frame shall only include registered retailing outlets. 3.4. Sample and sampling technique The sample shall consist of approximately 100 retailing outlets randomly selected from the defined research population. Probability sampling technique shall be utilised in selecting the research sample. Application of this method shall effectively reduce bias by offering equal opportunity for each registered store to be included within the research. Stratified sampling strategy shall be applied by classifying the sample according to location of urban and rural. This will enable the capturing of different customer behaviours in the regions. 3.5. Data collection procedure Data collection for the research shall include questionnaires and case studies from previous researches. 3.6. Data processing and analysis Collected data shall be processes through a continuous process before being presented in the final results. The processing shall begin with sorting the information before summarizing the collected data into comprehensible information. These data processing methods shall be undertaken manually. The analysis shall include inspecting cleaning and modelling the data into useful information. REFERENCES Alawi, H. M. A. (1986). "Saudi arabia: making sense of self-service". International Marketing Review, 3(1), 21–38. Al-Sudairy, M. A. (2000). "Information technology in Saudi Arabia’s supermarket chains". International Journal of Retail & Distribution Management, 28(8), 341–356. Dariana, J. C., Wimana, A. R., & Tuccib, L. A. (2005). "Retail patronage intentions: the relative importance of perceived prices and salesperson service attributes". Journal of Retailing and Consumer Services, 12(1), 15–23. Knox, S. D., & Denison, T. J. (2000). "Store loyalty: its impact on retail revenue. An empirical study of purchasing behaviour in the UK". Journal of Retailing and Consumer Services, 7(1), 33–45. Petersena, B., & Welch, L. S. (2000). "International retailing operations: downstream entry and expansion via franchising". International Business Review, 9(4), 479–496. Rafiq, M., & Fulford, H. (2005). "Loyalty transfer from offline to online stores in the UK grocery industry". International journal of retail & distribution management, 33(6), 444–460. Steve, B., & Sparks, L. (1994). "Structural change in grocery retailing in Great Britain: a discount reorientation". International Review of Retail, Distribution and Consumer Research, 4(2), 195–217. Uusitalo, O. (2001). "Consumer perceptions of grocery retail formats and brands". International Journal of Retail & Distribution Management, 29(5), 214–225. Yavas, U., & Tuncalp, S. (1984). "Perceived Risk in Grocery Outlet Selection: A Case Study in Saudi Arabia". European Journal of Marketing, 18(3), 13–25.  Read More