Debenhams Plc as a UKbased Retailing Business - Research Proposal Example

Applied Research Methods Assignment and Section # of Table of Contents S. No. Topic Page # 1. Introduction 2. Literature Review 3. Methodology 4. Proposed Study Method of data collection Questionnaire design Selecting a sample Collecting data Analyzing data 5. Proposed Plan 6. Ethics 7. Limitations 8. Conclusion References 1. Introduction 1.1 Aims and Background The aim of this research is to illustrate the study of research methods in their application towards investigating the research question that should DEBENHAMS look forward for opening another retail store in the locality of Chundrigarh in Punjab, India. DEBENHAMS has readily opened two outlets in India, one in Gurgaon and the other in Mumbai. DEBENHAMS has identified south-Asia as a region where it can maximize its profits and look for prospect customers and generate sales volumes. In the similar context, it made a move to enter the heart of Asia, India, and has rapidly expanded into develop two stores already, as mentioned. Opening up another store is a part of the rigorous expansion plan that the business has on its cards (http://www.debenhams.com). Debenhams plc is a UK based retailing business, operating as a departmental store within UK and across various countries. It is also listed at the LSE by the symbol DEB. The business was formed centuries back in 1778. As of April 2009, the company owned over 150 outlets and 40 franchises (http://www.debenhams.com). The revenues for the firm, for the year 2008, exceeded GBP 1.8 billion, while operating income was in excess of GBP 170 million; the net income figure remained over GBP 70 million, with an employee base of over 27,000 individuals (http://www.debenhams.com). As mentioned, the business belongs to the retailing industry, and its product line mainly includes clothing, cosmetics, and house wares (http://www.debenhams.com). Based on the above discussion, it can be stated that the aim of this research is to conduct the various research techniques, primarily the questionnaires and focus groups on the prospect customers and interviews from the company officials (as the later chapter of proposed study states). The underlying objective of the research would be to realize the realistic conditions and ground realities amongst the prospect customers that are they actually in a welcome mode for a new store in their respective region. It is important to absorb as many subtle cultural comments about the proposed stores as possible, so a relaxed survey and focus group environment is essential, yet the retailing concept being discussed must be as realistic to the respondent as possible. The absolute ideal situation would be to conduct the surveys in a complete simulation of the real version of the store being proposed, including fully-stocked display racks, lighting, flooring, sounds, smells, air conditioning, cash registers etc. and with realistic prices, so that the customer gets a clear idea of what they are being asked to pay for and why. If a full-scale mock-up is unaffordable a large-screen presentation of a virtual simulation of a store would be prove critical. 2. Literature Review 2.1 Retailing and Retail Business Dunne (2004, p 52) states, and is agreed by various authors such as Findlay (2002, p 105), Bruce (2004, p 60), Hinfelaar (2004, p 90) and Cateora (2002, p 205), that retail sector is one of the booming sectors in the global economy today, with not just boom associated but tremendous level of competition also associated to the line of business. Retailing business is mainly the approach from business to consumer, or more commonly stated as B2C approach of a business, whereby, the goods and services are transferred from business to consumers/customers via fixed locations such as departmental stores, display showrooms, etc (Journal of Retailing, p 140). Supermarkets, departmental stores, factory outlets, fast food, grocery shops, are prime examples of retailing business, while the real companies that can be quoted as examples are Carrefour, McDonalds, KFC, and so on. Since the spread of vast consumer awareness, the retailing competition has enhanced incredibly as customers have more options and more choices to choose from. 2.2 Retail market Strategy Levy and Weitz's classic textbook "Retailing Management", now in its seventh edition, defines a retail market strategy as a statement defining a) The target market (i.e. the market segments) b) The format, or product mix, which comprises i. Product lines, ii. Pricing iii. Marketing iv. Design, visuals and layout, and v. Location c) The base upon which the retailer plans to build a sustainable competitive advantage ("a competitive advantage that can be maintained over a long time"). (Levy & Weitz 7th edition, page 134) The 'base' upon which a retailer seeks to exploit their competitive advantage could refer to the core competencies of the 'Resource Based View' school of strategy, founded by Barney or Prahalad and Hamel in the 1980s, or to the more explicit 'Strategic Positioning' concepts of Porter or Bowman. However, the first two parts of a retail market strategy are very specific. Cox (2004, p 107) states that marketing strategy is one of the utmost important tools for marketers in the globalized economy that exists today, and strategy planners rightly associate value with the term strategy no matter where it is deployed. In accordance with Fernie (2005, p 46) and Peter (2002, p 99), retail can be assumed as integral sector in the world economy today, and retailers have a big time responsibility on their shoulders. It is essential for retailers to devise the right marketing strategy for their work to remain effective and successful. A single wrong step can lead to numerous issues for example a price war or any other problematic issue amongst the competitors or the stakeholders. 2.3 Devising a Retail Marketing Strategy Researches reveal, particularly in accordance with McCalla (2005, p 71), that while devising a retail marketing strategy, it is essentially important to identify the following variables, and it is through the definition of these variables that the right marketing strategy for the retailer can be devised. These are: The target market: defining the target market or developing the market segments is critical in devising the strategy so that the business has a precise focus on where to hit the customers, how to target them and their demographics are known. The product mix: includes product lines (what to offer), the pricing (the price of each individual product), marketing (how the product is to be promoted or marketed), design (how to sell, design and layout of the store) and most importantly, the location (where to sell it from). A precise and proper definition of these variables is highly critical in analyzing and devising a marketing strategy. In accordance with Pilgrim (2004, p 80), he states that it is critical for a retailer to understand these variables and devise an appropriate plan (strategy) for catering to these variables. A well defined strategy can lead to, in essence, developing a competitive advantage that can well be retained over a long period of time. Sternquist (2007, p 198) states that this competitive advantage can be derived from any of the core competencies of the organization or through strategic position, as it can truly give a long term cutting edge to the business. 2.4 Global Retailers For the year 2007, the top ranked retailers are tabulated as below: Name Revenues (US$ bn) Country of Origin Operates in Countries Wal-Mart Stores Inc. 378 USA 15 Carrefour SA 114 France 34 Tesco plc 95 UK 13 Metro AG 88 Germany 32 The Home Depot Inc. 77 USA 7 This table gives a clear illustration on how retailing has been a largely a national enterprise in comparison with sectors like automobile manufacturers, which though have products retailed in more than 150 states across the world, yet do not make up in the top five. Zentes (2007, p 178) and Kotabe (2007, p 51) give various examples of the top five not being completely global. For example, Wal-Mart has no presence in the African and European states except the UK. Similarly, Carrefour has no presence in Germany or the UK. Alongside, Tesco has no presence in German or France. Interestingly, Metro has no presence in North America too. The fact remains valid for the number five spot; The Home Depot Inc. has no presence outside North America, other than a few outlets in China. These factors are very interesting and give a clear indication of the presence of a case scenario within them. This can truly be the foreign or international retail strategy to restrict their geographical reach and location. Krafft (2005, p 101) states that global retailing is a critical phenomenon and not a piece of cake for everyone, which is why it is witnessed that many a times, retailing is restricted to regions, if not countries, because having it spread globally is an uphill task, and the rate of failure for global retailers is fairly equivalent to the rate of success, as the history of this business is filled with examples of the both ways. Dawson (2006, p 148) states that this can mainly be attributed to the fact that a concept of retailing may work tremendously in one country and may completely fail in another due to various reasons such as the cultural environment in the later country or the norms and values, the trends and patterns of consumer spending, etc. This is the major reason that has caused failures when successful retailers have tried to export their 'idea' to another region. M&S is the prime example of such a failure, whereby, the business failed to grasp the market in Canada during the 70s, and in other countries as well, despite the fact that they have enormous success on the home grounds in the UK. A classical example exists even today i.e. the world's largest retailer i.e. Wal-Mart as it moved in its expansion plan, taking over a big name in the UK markets i.e. ASDA. Despite the big name of Wal-Mart, it did not change the way ASDA operated early i.e. the name, layout, etc. Mann (2006, p 101) states that Carrefour, arguably, can be considered as the most successful global retailer today, as they are in themselves a success story worth putting forth. The sales figures of this retailer have grown over 3% annually within this century. Their underlying concept is of a low-priced-hypermarket, and this is very famous across various countries in the world. Carrefour has been involved in a number of buy and sell deals, has closed down businesses in various countries and moved on with the expansion plan. It has probably one of the most aggressive strategy formulating think-tank globally, with rapid developments and strategic enhancements constituting the course of action that the business proceeds. 2.5 Theoretical Literature Quelch (2007, p 107) correctly points out that for a fact of witness and evidence, in the late 90s, it was found that a standard library textbook 'Retail Marketing Strategy' written by Coskun Samli, nad no chapter on international retailing, and today, a decade down the road, standard library texts like Walter and Hanrahan has many examples of international retailing and globalized form of retailing. Retailing Marketing by Omar was an initial effort to involve international retailing into the literature as a chapter of this book was devoted against this name; this was followed by Neuman and Cullen (2003). This fact has also been agreed upon by Keegan (2002, p 91), Lee (2006, p 96), and Timothy (2005, p 110). Quelch (2007, p 107) further states that today, the modern literature is filled with text associated on international retailing, international retailing strategy, and so on. Any book related to marketing is bound to give examples associated to these issues, let it be any standard text book from the likes of Principles of Marketing to Marketing and Brand Management books. 2.6 Reasons for Cross border Failure As mentioned, not always crossing the border with the existing successful idea or theme assures success nor means an inevitable failure. However, reading failure stories is critical for understanding why these fail. This point has been well justified by various authors such as Coyle (2002, p 63), Fernie (2004, p 202), Dawson (2005, p 200) and Varley (2002, p 112) The utmost reason as identified by Krafft (2005, p 106) and other researchers in the matter of failure of global retailers is about the cultural differences that exist amongst individuals living across the border. Some of the obvious reasons are, for example, McDonalds is a depiction of the US culture and extends the same wherever it goes, but understandably, the brand would not aim to have a chain in Iran. Another example was in the 80s, when the Chairman of M&S stated that one of their major objectives was to economically develop Israel, and with this quote, expanding the brand into Muslim countries could have become a difficult task. Other than these simple cultural differences that are very much understandable to even a common man, there can be tons of other issues. For example, bringing in western clothing to Pakistan; though Pakistan is a Muslim country but rapidly moving towards westernization, and therefore, there can be calculated risk involved to avoid absolute uncertainty. 3. Methodology Ghauri (2005, p 102) defines methodology as the route that is to be undertaken for reaching at the conclusive point of the research, or simply put, defines how the research is to be conducted. There are two major research paradigms i.e. the positivistic and the phenomenological. Paradigm here refers to the practice of science that is based on certain philosophical assumptions about people, concerned to the world, and the nature of the knowledge. Furthermore, Ghauri (2005, p 104) describes positivistic paradigm as the one that assumes that the social reality does not depend on how humans perceive it and is existent irrespective of the awareness level of any human being about it. This approach is generally undertaken by the natural scientists. It is often stated that the social scientists can take up the role of an observer, remain distant during the time of research and try their level best to avoid indulging any biases during the research. This approach takes the hypothesis route towards understanding and resolving an issue under consideration; hypothesis is a proposition that provides the starting point for an experiment and the observations and evidences are gathered to accept or reject the hypothesis, and reach a conclusion on the research question. This approach is quick in terms of producing the output, economical in terms of cost, and provides rather reliable results. Ghauri (2005, p 104) describes the phenomenological approach as, on the contrary, based on the assumption that the reality lies within the human rather than an externality, and therefore, investigations related to reality have an impact on the internal 'reality'. The approach followed herewith is more of a natural mechanism for conducting an experiment i.e. research becomes the study of a naturally occurring phenomenon, rather than an experimental source. This approach can be time consuming and costly, but does give a deeper study, though the reliability of the outcome may stand questionable. For the purpose of this research, the approach undertaken shall be the phenomenological, because the subject matter here requires in-depth study of Debenhams can move towards developing a successful strategy for its third store, expanding its chain in India. This is a research towards understanding the social dynamics and consumer reaction on how they perceive the brand and how they can make it more successful. Moreover, this research is based on the real life scenario, rather than a course of experiment. 4. Proposed Study This section has been subdivided to illustrate the proposed plan of study for this research. 4.1 Method of data collection Thornhill (2007, p 52) mainly describes data by means of two categories; qualitative and quantitative. Thornhill (2007, p52) states that qualitative data is a wording based data, such as collection of opinions, comments, answers to open ended questions, interviews, etc. These are, generally, non-standardized. On the contrary, Thornhill (2007, p 53) further states that quantitative data is mainly based on numbers and their analyses; data is collected in the form of numbers that can be scale-based numbers (like ratings 1-5) or real numbers (like salaries). This research would involve data collection of both sorts i.e. qualitative as well as quantitative. Bell (2007, p 90) reveals that there are seven primary mechanisms for primary data collections, and these are: 1) Critical incident technique 2) Diaries 3) Focus groups 4) Interviews 5) Observations 6) Protocol analysis 7) Questionnaires For this experiment, the research shall be mainly conducted on two groups i.e. the consumers group as well as the company individuals. I propose to use both forms of data i.e. the qualitative and the quantitative form, and amongst the primary research mechanisms, I would prefer opting for focus groups, interviews, observations and questionnaires. Schindler (2006, p 70) describes the benefits of the two data categories that are aimed at attaining from their combine application herewith. In accordance with Schindler (2006, p 71), the presence of qualitative data would allow getting hold of the opinion, comments, and suggestions in an open format, non-standardized format, allowing the message to get through, and additionally, the qualitative data would also ensure input from various ends and some new and innovative idea may pop up from anywhere, amongst the audience. The presence of quantitative data would allow having responses from the respondents based on certain grounds like scales, etc. allowing the application of graphs and charts for understanding the consumer preferences and responses in an accurate manner. 4.2 Focus Groups Focus groups shall be conducted amongst people from different classes, who are the target market of Debenhams. The sampling would be simple random sampling, whereby the shoppers at the existing outlets in the region shall be given an opportunity to participate through registration based on first come first serve. Additionally, there would be randomly selected mall-shoppers having similar demographics from Chundrigarh who would also be invited. The size of the group shall be restricted to 20, with 10 individuals from each of the 2 categories. The outcome that would be obtained from this focus group would be the fact that what consumers think about Debenhams expanding, and the following questions shall be answered: 1) How is the performance of Debenhams been in India by far 2) What value do Indian shoppers associate with this brand name 3) Has the brand been successful in India Why or why not 4) Should Debenhams expand in India a. If yes then where b. If no then why 5) Is Chundrigarh a good place for the brand to be in Why or why not Answers and debates on these questions shall lead to a good picture of consumer thinking about the brand and how they feel about the expansionary plans. 4.3 Conducting Interviews Interviews shall be conducted on the company's officials who are mainly related to sales and marketing management, the think-tank that forecasts good results from expansion and other officials who are participatory in these plans. Conducting interviews on these would assist in understanding what the brand has seen in the market of Chundrigarh prior to its selection or the selection criteria for selecting this state. 4.4 Having Observations Observations shall be conducted in the existing outlets of the brand within India and also amongst other brands of similar value existing in Chundrigarh. This would allow us, as a researcher, to identify trends of: Individual/consumers towards the brand Individual/consumers towards other brands of similar value Ultimately, these observations would lead to forming an opinion on how the markets are progress and what can be stated as a projected chance of success for Debenhams in the new city where they plan to launch. 4.5 Questionnaires Questionnaires shall be targeted towards individual shoppers who are either presently amongst the shoppers at the present two locations in India or to the prospect shoppers who would be the target market for Debenhams in Chundrigarh. The sampling mechanism to be used would be simple random sampling, ensuring that there is no biasness associated with the selection of the target samples or respondents for the survey. 4.6 Analyzing data Since quantitative and qualitative data both are involved in the research, therefore, avoiding researcher bias becomes an easier task. For quantitative data, graphs shall be used to develop and identify trends that are associated with the numbers collected. For qualitative data, independent opinions shall be formed based on facts stated within the qualitative data, and the verifiable and reliable opinions collected within the same. The analyses of the qualitative data shall be completed with references to the relevant opinions received, and the same shall be indicated in them. 4.7 Review of the Literature Alongside the presence and analyses of the data gathered through primary research, the secondary research also bears a lot of importance and data obtained from it would also be utilized to analyze the factors for success and failure, as both are critical for a venture. 5. Proposed Plan (Attached in the excel) 6. Ethics There are a few ethical considerations that a researcher must abide by, in accordance with Schindler (2006, p72), when conducting the research. Firstly, it is upon the discretion of the respondent, whether he or she wants their identity to be disclosed or otherwise. In case of their call for anonymity, the researcher must abide by, though this would hamper the credibility of the research, but ethics is essential to be abided by. Secondly, it is about the control and utilization of the gathered data and information. The researcher has the complete control and owns the data that has been gathered and is up to his or her wish on how to utilize the data. But it is an ethical responsibility for not making public or not circulating the data in a manner that would harm the repute and interest of the respondents, particularly if its on the negative aspect. I, thereby, commit that the research I undertake would solely be used for developing the recommendations for the business on whether or not it should enter into a new city, and the respondents' interests shall be safeguarded. 7. Limitations Limitations are the weaknesses in a project, or factors that deteriorate the possibility of a tremendous research, with no limitations. Time and cost are two major constraints for this research study, because a thorough study of the past cases and relevant literature is what can lead to appropriate background knowledge and understanding of the scenario prevalent. The utilization of qualitative data is another constraint since its interpretation can never be as precise as those of the numbers. Sampling errors and human errors are two more unavoidable constraints for this research. 8. Conclusion From the above discussion, it can be concluded that the research aimed at identifying the success factors and recommending on the intent of Debenhams to open a new outlet in Chundrigarh, will be using the phenomenological approach towards research. The tools and techniques used for primary research shall include focus groups, interviews, surveys, and observations. The data gathered would constitute both qualitative and quantitative factors, as these would combine to give a conclusion on whether or not the business should go for this expansion or otherwise. Altogether, this seems a project that would take a good ten weeks for its completion, along with all possible cushions for ensuring that the work is completed at the anticipated time. The completion of this research would allow giving an authentic, verifiable and arguable point of recommendation for the firm whether or not they should move into expansion in the south Asian state. References Books 1. Bruce M, Moore C, Birtwistle G, 2004, 'International retail marketing: a case study approach', Butterworth-Heinemann, pp 59-63 2. Bryman A, Bell E, 2007, 'Business Research Methods', Oxford University Press, pp 90-97 3. Cateora P, Graham J, 2002, 'International Marketing', 11th edition, Irwin McGraw-Hill, p 205 4. Cooper D, Schindler P. 2006, 'Business Research Methods', McGraw-Hill Irwin, pp 70-72 5. Cox R., Brittain P, 2004, 'Retailing: an introduction', 5th Edition. Financial Times Prentice Hall, p 107 6. Coyle J, 2002, 'Internet resources and services for international marketing and advertising: a global guide', Greenwood Publishing Group, p 63 7. Dawson J, Kaynak E, Lee J, 2005, 'International Retailing Plans and Strategies in Asia', Haworth Press, p 200 8. Dawson J, Larke R, Mukoyama M, 2006, 'Strategic Issues in International Retailing', Routledge, pp 147-151 9. Dunne P., Lusch R., 2004, 'Retailing', South Western Educ Pub, pp 52-54 10. Fernie J, Sparks L, 2004, 'Logistics and retail management: insights into current practice and trends from leading experts', Kogan Page Publishers, pp 201-203 11. Fernie J, 2005, 'International Retailing', Emerald Group Publishing, pp 45-57 12. Findlay A, Sparks L, 2002, 'Retailing: Comparative and international retailing'. Taylor & Francis, p 105 13. Ghauri P., 2005, 'Research Methods in Business Studies: A Practical Guide', Prentice Hall, pp 102-104 14. Hinfelaar M, 2004, 'Key Success Factors in International Retailing: A Qualitative Study Into the Performance, Success Factors and Pitfalls in the Case of Four International Retailers, Taking a Longitudinal Perspective', S.N., pp 89-92 15. Keegan w, Green M, 2002, 'Global marketing management', 7th edition, Prentice Hall, p 91 16. Kotabe M, Helsen K, 2007, 'Global Marketing Management', 4th edition, John Wiley & Sons, pp 50-52 17. Krafft M., Mantrala M., 2005, 'Retailing in the 21st Century: Current and Future Trends', Springer, pp 101-108 18. Lee K, Carter S, 2006, 'Global Marketing Management: Changes, Challenges and New Strategies', Oxford University Press, p 96 19. Levy M. and Weitz B. (5th edition 2004, 7th edition 2008) "Retailing management" McGraw Hill, New York, pages 134 and 149. 20. Mann C, Gtz K, 2006, 'Borderless business: managing the far-flung enterprise', Greenwood Publishing Group, pp 101-102 21. McCalla P., 2005, 'Retailing', Glencoe/McGraw Hill, pp 71-72 22. Peter J, Donnelly J, 2002, 'A preface to marketing management', McGraw-Hill Professional, p 99 23. Pilgrim D, 2004, 'Retailing', Trotman & Co Ltd, pp 80-105 24. Quelch J, Bartlett C, 2005, 'Global marketing management: a casebook', 5th edition, Thomson/South-Western, p 107 25. Saunders M., Lewis P, Thornhill A, 2007, 'Research methods for business students', Prentice Hall, pp 62-69 26. Sternquist B, 2007, 'International Retailing', Fairchild Books, p 198 27. Timothy D, 2005, 'Shopping tourism, retailing, and leisure, Channel View Publications', pp 109-112 28. Varley R, Staff V, 2002, 'Retail Product Management', Routledge, pp 111-115 29. Zentes J, Morschett D, Schramm-Klein H, 2007, 'Strategic Retail Management: Text and International Cases', Gabler Verlag, pp 178-180 Journals 30. Institute of Retail Management, New York University, 2002, Journal of Retailing, Elsevier, pp 139-145 Websites 31. Debenhams Online UK Department [Internet] Available from [Accessed 7 May 2009] Read More

 

Read More