Interrogating the Challenges That Face Cosmetic Trading - Research Proposal Example

Abstract Any organization will from time to time seek to look at its strong points in relation to the competition and all other factors that affect the overall performance of the organization in a given environment. There are several factors that influence product performance and by extension the performance of an organization. In recent time. organizations have taken to using research as way of determining some of the challenges that may be facing a product in which they trade as well as looking into factors that might have contributed to the success of another product may be for the purposes of application of these techniques in other fields. Several methodologies of research can be used to highlight the opportunities available as well as the various methods that may be used to improve the profitability of a single product or the performance of the whole organization at large. This research proposal seeks to make suggestions as to how some common research techniques may be applied to interrogate the challenges that face cosmetic trading in one of the most conspicuous players in the Australian market known as Myer Limited which runs a chain of retail stores with outlets throughout Australia. Organization Assessment and Marketing Research Proposal 2 Introduction. From one angle, it may be said that there is some strength when a company realizes its points of strength and weakness. This helps the management in knowing where more effort is needed and what kind of resources must be allocated to this area to uplift the performance of the product (Bryman 2004).In this respect, it is necessary that an organization takes a look at its general performance in a given area from time to time. This research proposal will endeavor to outline some challenges and opportunities that are available for one of the oldest Australian stores that is well known for its role in shaping the retail business in Australia. In this analysis, clear a methodology that identifies these challenges and offers recommendations as to how the challenges that may be overcome and how the available opportunities may be utilized to make the organization more profitable and competitive will also be suggested. Organization Background Myer is one of the oldest retail stores in Australia whose products cuts across the board from children to adult wear. The chain store has cut its niche by catering for almost all the needs of the consumer by ensuring a wide range of products are retailed at their outlets. Products that are consistent at Myer’ stores include clothing electrical appliances, furniture, books and stationery. Since it opened its doors in the beginning of the 20th century, the company has undergone magnificent transformation and in just about eleven years of its existence, the company had purchased an enterprise along Bourke Street known as Drapers. After several years of moving from rented buildings in various parts of Melbourne, the company set up what was known as Myer Emporium. Acquisition of older business was characteristic of the Myer Emporium and largely contributed to its expansion and growth. One of the historical breakthroughs of the company was its listing in the Melbourne Stock Exchange in 1925( BA 2010). In spite of the growth that the company has registered over the years, there has been a set of underlying challenges. One of the prominent challenges that can has predominantly been outlined in the company’s endeavor to provide detailed service delivery is in its cosmetics segment. This proposal will concentrate on highlighting these challenges and selecting the most prominent to ones to analyze the situation of the company and how the challenges have affected the operation of Myer through time. Problem Statement. The retail business can be said to be one that needs strategic planning and execution if an organization is to achieve any recordable success. Myer can be cited as one of the oldest organizations that fronted the idea of retailing in departmental chains and stores in Australia. Competition has been a major threat to the institution and the company has undertaken various steps as a way of countering the raging competition. The company has been particularly hard hit on the retail of cosmetics due to the emergence of stores that specialize in this trade as opposed to Myer’s model of combining a variety of items in their stores. This challenge has contributed in shaping the organizations current status in several ways. It has been reported that besides a competitive local business environment, the biggest challenge to the cosmetic marketing is the availability of online shopping options. Despite Myer’s market command, the internet has seen the emergence of cheaper brands that are presented online through sites such as Strawberrynet.com. To this end it has been argued that Australia’s geographical location has been looked at as a disadvantage in relation to the cosmetics business whereby distributors are seen to ask for brands that are a little bit highly priced in comparison to other regions in the world. Regardless of the high mark in prices as presented by the distributors Myer still purchases most of its cosmetics brands from these suppliers. One option that has been cited as one that could help the situation in regard to the cosmetic sales is the option of purchasing from the U. S suppliers but this has been seen as an option that may not make much a difference since the price difference in the U. S market is more or less close to that of the Australian Market and therefore Myer would have a problem in placing a price tag for cosmetics products ordered from the U.S.A. In consideration of all these factors, the best option that is left for Myer in the retail of cosmetics is to purchase from the local suppliers despite the disparity in pricing. In respect to this, Myer has resorted to strengthening its relationship with these distributors as a way of countering this challenge. Research Objectives Having identified the challenge that the company faces both in purchasing and determining the most appropriate prices for cosmetics, this proposal will seek to keenly look into the factors that might have contributed to fronting this challenge despite the seemingly successful business side of the company in retail of other products like clothing whose market is even more competitive. This research proposal will therefore aim at: Determining the consumer age bracket of cosmetics sold by Myer to be ale to evaluate how factors like age, personal income and even health may influence their preference and use of products Exploring the challenges that face the cosmetics industry in Australia to be able to determine whether Myer’s case is exceptional or is synonymous with the rest of the retailers Looking into the effects of emerging market options like the internet in the purchase and supply of cosmetics Looking into the effects of disparity in prices of cosmetics availed by local suppliers and those that are sourced from international markets. Looking into the possible policy and marketing changes that may be used as a way of leveling the sale of cosmetics as well as improving profitability in the products. The role of other retailers in determining market prices and operating polices for cosmetic consumers. Research Methodology. Given the weight of the objectives of this study, it will be essential to adopt a methodology that will reflect the overall outlook of the market while concentrating its focus on Myer Limited. This will be done in consideration of findings that will be deduced from all stake holders that will include Myer limited, cosmetics suppliers, consumers and by extension the government for its role in provision of policies that guide the whole business environment. The methodology will thus assume an interactive nature where response from all players will be analyzed to be able to draw conclusions as well as make recommendations (Conger 2008). There is therefore an indisputable observation that the research will be intensive and may take up a considerable amount of time and resources if it has to produce the outcome expected. This proposal suggests that a set of questions be issued to the general public as well as to the supplies and the management of Myer Limited. Although the aim of issuing these questions is to acquire as much information as possible, they will all be framed to These questions will .This will be necessary to ensure that the cosmetics’ challenge is not single out as one that is influenced by external factors while there might be internal challenges within the organization’s strategy and structuring (Creswell 2008). The research may us both qualitative and quantitative methods in order to comprehensively indulge into the factors that surround the cosmetic retail by Myer. In this respect, the quantitative methods are expected to provide as much information as possible in regard to cosmetic business while the quantitative methods are expected to show any empirical analysis. Research Questions To be qualitatively informed in respect to this research, it would be necessary to formulate a set of questions that will may be used to shed more light into this subject (Diriwächter& Valsin 2006) Questionnaire for Consumers Gender ………………………………………………………………………………………… Age…………………………………………………………………………………………… Occupation………………………………………………………………………………………… Income Bracket…………………………………………………………………………….. Are you a regular shopper of cosmetics products from Myer stores? Yes No If No, which is your preferred outlet retailer in Australia? ....................................................... If Yes, what are you preferred cosmetic brand(s) from Myer stores? .………………….…….. How can you describe Myer’s cosmetics segment? .................................................................. Have you ever experienced a shortage of any brand of your preferred cosmetic at a Myer store? Yes No If Yes, what was the explanation given for the shortage of the said cosmetic?............................... How can you describe Meyer’s cosmetic pricing……………………………..? How can you describe Australia’s cosmetics industry in general? ................................................ Questionnaire for Suppliers How can you describe Australia’s cosmetic industry? .................................................................... Which is the main source of the cosmetics products that you supply? Local International What challenges do you encounter in the supply of cosmetic products? How significant is Meyer Limited as part of your customer base? ..................................... How have alternative marketing strategies such as the internet affected/influenced the cosmetics business? What changes would you recommend to the cosmetics industry? Questionnaire for Myer management What challenges have you faced in the retail of cosmetics? What is the main source of cosmetics supplies? Local International How has the emergence of internet marketing affected / influenced the retail of cosmetics? How has competition influenced the way cosmetics are retailed in Australia…………………….? What polices could be changed to improve the way cosmetics are conducted ........................ ? How has competition contributed to the sale of cosmetics in Australia……………………..? Sample Plan The research will also be enhanced by empirical data that relates to the market of cosmetics. This data will include information such as an estimate of the population that consumes cosmetics products. To enhance the study, the researcher will need carefully select the population from which the respondents will be drawn (Denzin & Lincoln 2000). This will be particularly essential for the for the questions that are meant for the public. The respondents for the questions relating to the suppliers and management of cosmetic dealers are likely to be responded to with much ease since the respondents are likely to answer from a an informed point of view .There will need to a considerably large population. This proposal suggests that the research considers the data collected from about 2000 respondents in order to have a relatively reliable opinion. These respondents will be drawn from across several states around Australia since Myer Limited has stores in all territories Sample Population In this study, the population to be studied will exhibit a variety of characteristics and there is need to look into each category of consumers in relation to the characteristics that inform their choice of cosmetics. Age will be one factor that will determine how people within a given age bracket will respond to this study as some products are more appealing to people of different age groups. To this end, these consumers are likely to have their respond to the factors that influence the cosmetics market and in particular Myer’s retail of cosmetics depending on the type of cosmetics they use. Gender will also greatly be a factor to consider when looking at the response derived from the population sample. Both male and female have different tastes of cosmetics and as such, their understanding and response to questions relating to various items will need to be closely looked into. In this study the most suitable population will be drawn from the people in the 18-45 years age bracket since this population is likely to have some interest in the cosmetics field. It is estimated that people in the bracket of 18 -25 would be college goers and a likely to develop a taste of fashion and thus they may sample some pieces of cosmetics from time to time Further, the population between 26-45 is likely to be the working class citizens and people who have the financial ability to purchase cosmetics. This population will therefore have a great contribution in determining the sales margin of cosmetics for Myer Limited. For this reason, the opinion of this population will largely determine the direction of this study. Sample Frame For this study the sample frame will be primarily the consumers of cosmetics. This cuts across gender, age and occupation. This sample frame will need to be consistent in the type of cosmetics used and will also need to be a consistent shopper at the Myer stores so that their experiences in the stores will be incorporated in the findings. Sampling Method In performing this study, systematic sampling of the population will be considered. The population to be sampled will be classified into two main classes according to their age. They will grouped into the age groups of 18-25 years and then 26-45 years. This is because this population has been established as the one that is most consistent in the purchase of cosmetic products. Sample Validation. The selected population has been identified as the main consumers of cosmetics and those who depending on their occupation are likely to have the purchasing power and ability to visit a Myer store or generally do shopping. In respect to this, there is a high possibility that the sample population selected is valid and could provide viable information. Quantitative Research In conducting this research, there will be need to quantify the information given using any statistical data available. This will require that further data be collected to enhance this study. Data Collection To comprehensively inform this study, this proposal suggests that data be collected through specified methodology (Hunter & Erin 2008) .The most appropriate method to use for this data would be to hold face-to-face conversations with respondents who would be identified as users. These conversations will be enhanced by a list of prepared questions that would be used to guide the respondents. It should be noted that although these questions may be close in formulation to those highlighted in questionnaire used in qualitative analysis, they will be different in that the interviewer will fill in the answer given by the respondent. The difference in such a techniques is that the respondent may not have enough time to think over the question or alter the answer given (Hunter & Erin 2008) General Guidelines. In formulating the questionnaire that will be used by the interviewer to collect data, the will be need to observe the following: That the questions cannot be altered by the interviewer to fit their feeling The questions must be precise and relevant since the respondents may not have much time to respond to their questions. The questions must be formulated in such a way that at the beginning the interviewer will be able to identify whether the respondent is familiar with the cosmetic retail services offered by Myer Stores. Research Question Age……………………………………. Gender………………………………….. Occupation………………………………… How often do use cosmetics…………………………? How often do you purchase cosmetics………………….? How many brands of cosmetics are you likely to be having at any one given time………………? What is the range of the cost of products that you are often purchase…………………..? How do the prices of cosmetic at Myer influence your choice of cosmetics………? How often do you change the retailer from whom you pick you preferred brands……….? What changes would you like to see the retail of cosmetics………………..? Ethical Considerations In conducting this study, the researcher will be required to observer some simple social norms to be able to interact with the comprehensive set of people he is likely to come across. First, the researcher will need to be time conscious. It has been established that the researcher will interact with business people who must not necessarily have time for such activities such as the suppliers and management of Myer. This will demand that he keeps time as agreed with the various suppliers. In the process of this study, the researcher will be required to make observations and it may be required that he visits a Myer store from time to time (Conger 2008.). This will require that he has a sociable behavior to be able to handle both the employees and shoppers at the supermarket. In addition he will be required to maintain a high level of integrity so that he is able to handle any questions that may be on the questionnaire without making alterations that may favor any. It has also been noted that this research aims at making recommendations that may lead to making of recommendations that may affect the whole cosmetics industry. For this reason he will be required to make sure that the respondents to any of his questions whether in the qualitative or the quantitative research segment give information that can be reliable to some extent (Bryman 2004) Proposed Timetable DATE TIME ACTIVITY VENUE Mon 16th April 2012 10:30am Interview -Product Manager Myer Emporium offices Tues 17th April 2012 9.00an Issuing of Questionnaire Melbourne University Proposed Budget Activity Amount Conclusion It is expected that by the end of the study, the researcher will be able to give an informed reflection of how Myer’s cosmetics business is likely to influence the general operations of the whole market. By the end of the study the researcher will also be required to have been thoroughly informed as to how cosmetics suppliers and internet marketing may affect cosmetics business. The research will also be required to collaborate his findings with relevant statistical evidence from various sources. This will include documents such as the store’s annual financial statements. Finally, he is expected to draw some recommendations and even some predictions as to the direction the cosmetics business may take in the future. References Bendigo Advertiser (2010) Myer’s Place In History Retrieved 17 April 2012.From www.economicexpert.com/a/Coles:Myer.htm Bryman A. 2004, The Debate about Quantitative and Qualitative Research: A Question of Method or Epistemology?. The British Journal of Sociology,vol. 35, no.1, pp. 75-92. Conger, J 2008, Qualitative Research as the cornerstone methodology for understanding leadership. Leadership Quarterly, vol. 9 no.1, pp. 107-121 Creswell, J 2008, Qualitative Inquiry and Research Design: Choosing Among Five Traditions, London, SAGE Publications Ltd Diriwächter, R. & Valsiner, J 2006, Qualitative Developmental Research Methods in Their Historical and Epistemological Contexts. Denzin N., &Lincoln, Y 2000, Handbook of Qualitative Research. London, Sage Publications, Historical Look at Myer Retrieved 17 April 2012. www.economicexpert.com/a/Coles:Myer.htm Hunter, L& Erin L. 2008, Collaborative Research in Sociology: Trends and Contributing Factors, American Sociologist, vol 1, pp 34-49 Read More