Marketing Blueprint for Tesco - Essay Example

Marketing research proposal for Tesco Executive Summary All multinational firms vigorously try toexpand to newer markets so that new opportunities of growth can be trapped. Tesco has already been able to expand itself successfully in a number of markets. However in order to maintain its leading position in the retail industry it is essential for Tesco to spread out into newer markets. In the current paper, it is analysed whether entering into the Indian markets would be a suitable decision and would it facilitate the company to grow in size. In order to understand the feasibility of entering the Indian markets, the researcher has conducted studies in respect to the conditions existing in the retail segment of the nation. The study incorporates data collected using both primary and secondary techniques of research, which leads to valid conclusion in respect of the objectives of the research work. Table of Contents 1.0 Purpose and Scope 4 Company background 4 Market analysis 4 2.0 Objectives 5 3.0 Research approach 6 4.0 Secondary data and Primary data 6 4.1 Secondary data 7 4.2 Primary data 7 5.0 Qualitative vs. Quantitative 8 5.1 Qualitative data 8 5.2 Quantitative data 8 6.0 Data Collection Method 9 7.0 Sampling 10 8.0 Data Analysis & Interpretation 11 9.0 Reliable and Valid 12 Reference List 13 1.0 Purpose and Scope Company background Tesco is one of the largest retailing brands of the world. The company currently operates in the 12 nations located in Asia, Europe and North America. In terms of profits, Tesco is the third largest retailer of the world (Rogers, Ghauri and George, 2005). In terms of revenues however, the company is the second largest following Wall Mart. Morrison, Sainsbury and ASDA are the primary competitors of Tesco. Tesco sells more than 40,000 food brands in addition to clothing (Humby and Hunt, 2003). It also sells a number of non food retail items such as electronics, cooking appliances, luxury and a number of daily use products. Additionally Tesco is also seen to provide services such as DVD rentals, financing, telecommunication and internet services in a number of regions of operations. Despite its wide range of operations, Tesco is known for its well established distribution network and sound ability to manage its resources effectively. Tesco is already well recognized in many nations of Europe and North America (Dawson, 2006). Market analysis Despite the dominant position the company holds in the retail marketing sector, Tesco is seen to expand internationally by eying the emerging markets. The international expansion of the company not only entails it into sterner competition but also simultaneously facilitates earning higher profits. Most of the international ventures of Tesco have remained successful where as some have encountered major failures. In order to expand internationally in a more effective manner, Tesco requires to think more strategically and develop plans on the basis of accurate research (Baskaran, 2012). Tesco in the recent times has been considering entering into the markets of India. The supermarket sector of India is still in its growing state. The nation lacks in adequate number of supermarkets. Only 3% of the total retail sector can be counted as organized retail and this makes India an attractive sector for international retailers to invest in. Tesco has already signed deals with the Tata group to develop a dozen stores in the country. The high population and considerably high demand for consumer goods makes India an attractive destination for International retailers. Tesco is not however the first international retailer to enter into the retail segment of India. Marks & Spencer had established its first store in the nation in the year 2001 and currently has round about 36 stores in the nation. The company operates in partnership with the Reliance Retail. The retail segment is highly attractive segment in the nation given the fact that India is an emerging economy (Wood, Coe and Wrigley, 2014). 2.0 Objectives Research objectives are essential to provide a suitable direction to the study. It facilitates in understanding the type of data which requires to be collected and what the undertaken methodology should focus upon achieving. Hence, setting suitable objectives is extremely important (Kumar and Phrommathed, 2005). For the current paper, the main research objectives are set as follows. 1) To understand why India is a potential market for Tesco and analyse the retail market conditions existing in the nation. 2) To understand how feasible it is for Tesco to enter the Indian retail sector, by analysing the environmental conditions existing in the nation. 3) To study the potential threats and opportunities for Tesco in the Indian retail sector. 3.0 Research approach The inductive and the deductive approaches are the most common approaches which researchers undertake to conduct a study. The primary difference between the inductive and deductive approaches is that the inductive approaches are aimed towards developing a theory while the deductive approaches are aimed towards testing the validity of existing theory. The inductive approach is suitable when the researcher considers exploring new and less explored areas of research which are likely to generate new thoughts. Inductive approaches facilitate the wider generalization of specific observations. Inductive approaches of research are largely used in scientific research where hypothesis formulation and creation of new theories are involved (Peffers, et al., 2007). In the current study, the research mainly uses the deductive approach whereby meanings and understanding are developed from existing theories. The deductive approach can be utilized in a number of diverse ways. In the current study, the researcher first forms specific objectives and then collects adequate information from different sources to fulfil the set objectives and thereby reaches valid conclusions. The deductive approach put the logical reasoning ability of the researcher into use. Both qualitative and quantitative techniques can be used under the deductive approach. In the current study, the objective is to understand whether Tesco’s expansion into the Indian retail segment would be successful venture or not. The study would therefore require deducing valid conclusion from the information gained in respect of the Indian markets (Patton, 2005). 4.0 Secondary data and Primary data The current research makes use of both primary and secondary sources of information. Each of these techniques and their utility in the current research are described vividly as follows. 4.1 Secondary data Secondary data refers to the information which has been collected from secondary sources such as journals, books and website publications. It is used when the study requires incorporating the works of other scholars and experts who have researched upon the same subject matter earlier. Referring to secondary data helps the researcher to understand the opinions and suggestions given by others in respect to the area of study. Relying only upon primary sources for collecting all types of data becomes difficult. Also it is highly essential to understand what other researchers have established in accordance of the subject matter so as to ensure the reliability and validity in the manner in which a researcher undertakes study in the current paper. However, overdependence upon secondary data is not suitable as it may not facilitate the researcher to incorporate data using self investigation. Also it cannot be fully understood whether the data collected from secondary sources are completely accurate and true. Therefore the researcher must ensure that the sources of secondary data are highly reliable (Scandura and Williams, 2000). 4.2 Primary data The primary data refers to the information which has been collected by the researcher himself from various sources. Such data can be collected using techniques like surveys, interviews and direct observation. Based on the area of study, the researcher is required to make suitable arrangements for collecting data from primary sources. Since the efforts are exerted by the researcher himself to procure information, the chances of fulfilling the research objectives through primary data collection are more feasible. In the current study primary data has been collected through conducting a questionnaire survey. Primary data is considered to be more reliable as the information is largely first hand and is procured using direct sources by the researcher. Also in case of primary sources of information the researcher gains the freedom to collect information personally. However adopting the primary data collection technique, is a cost inducing technique. Much finance is required for preparing and distribution of questionnaires. Also making the questionnaires available to respondents by mail, post or direct personal delivery requires cost investments. Primary data is also a highly time consuming process, due to which researchers are required to develop dependency upon secondary sources (Welman, Kruger and Mitchell, 2005). 5.0 Qualitative vs. Quantitative 5.1 Qualitative data Qualitative research refers to mainly the theoretical and descriptive techniques of research. This type of research is considered to acquire adequate information and set the theoretical framework for a research work. Without exercising qualitative techniques, it is difficult for the researcher to form suitable conclusion and recommendations. Qualitative analysis is essential for deriving meaning out of quantitative research works. Qualitative research is more suitable when methods such as case study are adopted. It is also suitable to understand the results obtained through different surveys and direct data collection techniques. Majority of the data interpretation in respect of secondary information is done on the basis of the qualitative data collection techniques (Christensen and James, 2008). 5.2 Quantitative data Quantitative data refers to the information which is statistical or mathematical in nature. In order to develop logical conclusion, mathematical relationships are at times required to be established, so that the data can be quantified and the information can be interpreted in a more meaningful way. Quantitative analysis facilitates quantifying the data which has been procured so that interpretation becomes more feasible. Quantitative techniques are especially useful when the research involves a large amount of numerical data or the information procured can be converted into numerical data. Quantitative analysis incorporates statistical or graphical techniques of analysis. In the current study, the information obtained through the questionnaire have been represented graphically and accordingly interpreted. The graphical representation of information facilitates understanding the responses levels mathematically and it becomes possible to judge which notions have been supported maximum by the respondents (Mackey and Gass, 2005). 6.0 Data Collection Method In the current study data has been collected by conducting a questionnaire survey. The questionnaires were distributed to a sample of 125 respondents. The respondents are the consumers of India. Out of the population of 125 respondents, 50 respondents have been selected using the stratified sampling technique. The questionnaires were distributed to the respondents through the internet to their personal mail ID’s. Social networking websites were also used for the distribution of the questionnaires. The questions included in the questionnaire survey were formed on the basis of the needs and the set objectives of the researcher paper (Merriam, 2002). In addition to questionnaire survey, data for the current study has also been collected through direct interview. The interview has been conducted using the focus group technique, with five mangers from Tesco. In the focus group technique, respondents are engaged in discussing a particular topic, as per the main theme of the research. Questions included in the focus group interview were both structured and unstructured. Structured questions are essentially those which are pre formulated by the researcher and are put across to the respondents during the time of the interview. The use of structured questions in the interview process was very low. Majority of the questions were unstructured which arose out of the conversation which took place during the interview process (Welman and Kruger, 2001). 7.0 Sampling In the current study, sampling process has been executed for the population set of consumers. Population sampling is a technique whereby a short sample is selected out of a large population. The larger cluster of population is known as the sample from which the respondents are selected. In the current paper, a sample size of 125 has been selected. A sample population may contain diverse individuals who have differential interest and have provided diverse information. Hence the information procured from all members present in the population or the sample size is not essential. From the population, the researcher is required to select a smaller section of respondents based on some strategic criteria and based on the needs of the research. The information obtained from this smaller cluster is then analysed and used elaborately in the study to form suitable conclusions and recommendations. This smaller segment is also known as the target population. The target population for the current study has been set to be 50. Hence information obtained from the questionnaire survey of 50 target respondents are utilized in the study (Silverman, 2010). Different techniques can be adopted for selecting the target population from the total sample. These are known as sampling techniques. There are essentially four different types of sampling techniques namely, random, stratified, opportunity and systematic sampling systems. Random sampling is carried out when all the respondents belonging to a particular sample population has equal chances of being selected. In the current study the random sampling technique has been applied, where all the consumers participating in the survey had equal probabilities of being a part of the target population. This type of sampling is usually carried out when the responses provided by all members of the population have equal chances of being selected (Salkind and Rainwater, 2003). This method is utilized when the responses or the information available from each member of the sample is the same. The stratified sampling technique is used when the members of the population can be classified into a number of different categories. Based on the categorization, the researcher is required to select a group which closely matches with the needs and objectives of the study. The divisions can be done on the basis of age, gender or profession (Cooper, Hedges and Valentine, 2009). The needs of the research paper are required to be especially considered while executing the stratified sampling technique so that the selected group can accurately provide information in respect of the objectives of the research. Opportunity sampling is carried out as per the convenience needs of the researchers. The researcher as per his or her requirements or preferences may select the target population from the sample size. Systematic sampling refers to the method whereby the researcher based upon some logical process selects the members as target population from a larger cluster, such as every 10th member of the population (Henning, Van Rensburg and Smit, 2004). 8.0 Data Analysis & Interpretation The information obtained from the questionnaire survey has been analysed using Microsoft excel tools. Suitable graphs and pie charts have been developed and accordingly analysed. Such a technique facilitates quantitative analysis of the information procured from the questionnaire survey. The information obtained from the interview survey was studied qualitatively. Additionally, in order to form suitable understanding of the subject matter, data from reliable journals and publications have been included. The research aim of the current paper is to identify whether entering the Indian markets would be a successful venture for Tesco. Considering the shortage of supermarkets and a high demand for consumer goods, investing in India would be a suitable venture. However, it is essential for the company to establish a supply chain network with existing distributors of the nation of famous and most popular brands. Tesco may also consider selling few international brands in its stores, so as to set itself apart from existing supermarket chains of India and to target a more niche sector. The data analysis and interpretation section aims to understand what techniques should be followed by Tesco so as to perform profitably in the Indian markets. 9.0 Reliable and Valid Understanding the reliability and the validity of a study is highly essential in a study. Since the research incorporates primary data collected through direct data collection techniques, the reliability of the content used in the study can be stated to be presumably high. Reliability refers to the quality and the truthfulness existing in the data which has been collected from different sources. Validity arises out of how well the information has been analysed and studied so that valid conclusion and recommendations can be drawn. Complete efforts have been taken by the researcher to depict valid results from the study (Malhotra, 2010). Reference List Baskaran, K., 2012. The FDI permit for multi brand retail trading in India-Green signal or Red signal. Business Intelligence Journal, 5(1), pp. 176-186. 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J., 2001. Research methodology for the business and administrative sciences. Oxford: Oxford University Press. Wood, S., Coe, N. M. and Wrigley, N., 2014. Multi-Scalar Localization and Capability Transference: Exploring Embeddedness in the Asian Retail Expansion of Tesco. Regional Studies, 1(1), pp. 1-21. Read More