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Task 1: Understand buyer behaviour and the purchase

decision- making process


1.1 The main stages of the purchase decision-making process
The stages for buying decision-making are recognizing the need, collecting information,
evaluating the alternatives, buying decision and finally the post purchase evaluation.
Primarks customer base is trendy and seeks the best value out of their purchased products.
Therefore, Primark is very careful in its marketing strategy. To retain its reputation to the
customers, it needs to meet their sought demands.
Assessing the role as a consumer, the learner would go through the buying decision making
process to decide whether he would buy from the Primark(Berkowitz and Berkowitz, 1992).
1. Need recognition: First the learner would identify what he really seeks while buying clothing
products. The learner recognizes that he wants simple but fashionable clothing at reasonable
price, which also has to be very good in quality.
2. Information search: There are clothing stores at UK, which sells high margin products in
high prices, and also there are options for cheap purchase. The learner, as being a consumer,
would sought information from the market or from other consumers about the retailers that sell
good quality product in reasonable price. Therefore, Primark needs to hold a satisfied and loyal
customer base that would spread the company message to other consumers; plus the company
needs very effective but cost advantageous promotion strategy.
3. Evaluating alternatives: The consumer would compare different brand products to come up
with a final decision of choice. To gain the customer attraction, Primark makes its products
distinctive and available in different sizes. The consumer considers the price of Primark
reasonable. The reason the company can sell affordable fashion clothing is that the company has
been able to reduce its production costs but keeping the quality good by selecting local channels
for raw materials.

4. Buying decision: Thus, the consumer comes up with a final decision for purchasing a specific
product.
5. Post purchase evaluation: Finally the consumer would assess the value he received against
what he desired to receive from the product(Blythe, 2006).

1.2 Theories of buyer behaviour in terms of individuals and markets


There are different theories for customers buying behaviour, which the companies use to analyse
their markets. The most popular buyer behaviour theories are the generic theory of buyer
behaviour, cultural theory of buyer behaviour, environmental theory of buyer behaviour and
internal theory of buyer behaviour.
Here the learner, as a consumer, discusses two buyer behaviour theories relevant to Primark.
Environmental Theory of Buying Behaviour: The same buyer can exhibit different buying
behaviour based upon the situation. For example, you may love to eat peanuts as a snack, but you
would not consider buying them when you are trying to impress a new friend. Normally, you
might compare prices in the supermarket when purchasing juice or water, but after a long day at
the office you might just grab the first bottle you see at a convenience store at a higher
price.Primark, based on this theory of behaviour, as the companys customers are general people,
produces and promotes their products in the most cost advantageous strategy and commits itself
to meeting exactly what their customer desire(Brenkert, 2008).
Cultural Theory of Buying Behaviour:Cultural influences can affect the buying behaviour of
the individual. A person's culture is his set of values and beliefs learned in the context of a
community. These values and beliefs lead to certain buying behaviours. Your social class based
on your occupation, income and education can influence buying behaviour as can your
membership in a group such as family and friends at work or at school. Often, there is an opinion
leader in the group who has influence over the buying behaviour of others because of specialized
knowledge of sheer force of personality.

Thus, Primark positions itself in a strong place in the market and remain very competitive to its
counterparts.

1.3 The factors that affect buyer behaviour


The customer behaviour is affected by social, cultural, personal and psychological factors.
1. Cultural factors: A company needs to comprehend and consider the cultural factors integral
to different markets or different situations so that it may structure its production and marketing
strategy. Such would demonstrate significant role in customer behaviour, perception and
expectations. The cultural factors are divided into social classes, cultural trends and sub-cultures.
For a clothing retailer like the Primark, consideration and understanding of cultural trends, social
preferences are very important for driving customers buying decisions towards their products.
For example, people in UK prefer much formalized garments whereas customers of Spain would
prefer a little more casual fashion. Thus, the role for company comes in to present appropriate
products to the appropriate market.
2. Social factors:The social factors are divided into reference groups- groups to which an
individual may refer to or admire; family and social status. An individual consumer is influenced
and influences the people around him, the family he belongs to and the status he has. So, in a
buying decision making such factors play important role.
For example, the consumer would follow the fashion trend that he is used to and which
demonstrates his social status. Clothing retailer such as Primark must acknowledge these social
behaviours while presenting garments goods to the market.
3. Personal factors: However, aside from cultural and social presentations, an individual would
also have his own choices. Lifestyle, personality, age and economic status are the elements of
personal factors of buying behaviour(Drake and Millar, 1969).

For example, young people and old people have distinct fashion preferences. Primark
successfully recognizes the personal preferences and use them in their products.

1.4 The relationship between brand loyalty, corporate image and


repeat purchasing
Brand loyalty refers to the consumers attraction to the products of a certain brand. When
consumers would enter for shopping, they would first look for the products for their preferred
brand. Such brand loyalty can be created through the proper value delivery to the customers and
meeting their demands exactly. The strong brand contributes to a strong corporate image. The
brand, thus, itself is a corporate image. However, corporate image also depends on proper
maintenance of the companys internal factors such as management, operational efficiency and
productivity. Repeat purchasing means customers repeating their purchase from a specific
company due to the satisfaction they received from previous purchases.
The terms come in line in real life. Primark has been able to satisfy its customers and gained
their loyalty, also by strong business operation they have expanded their businesses in three
countries; thus, they created a strong brand image resulting into an established and competitive
corporate image. This type of success in their business operations have increased repeat
purchasing from the company (Evans and Berman, 1982).

Task 2
2.1
The firm Primark has to research market properly and then think which
strategy they are going to follow in the market. Primark main strategy is to
sell clothes and other things on cheap rate and quality of product is good at
the same. Primark is currently investing in development of their store so that
they are able to accommodate more people in the store.

There are two main research strategies available in Primark such as


quantitative research strategy and qualitative research strategy. In the view
of Franklin (2012) Quantitative research strategy supports to collect
numerical data from research sources. Quantitative research strategy
ensures identification of research variables through hypothesis testing
process. Quantitative research strategy is along with positivism research
philosophy. Relationship of role of advertising and customer demand of
Primark can be tested and reviewed by quantitative research strategy.
Further, numerical information is used to understand advantages of each
advertising method to enhance sales of Primark. Therefore, quantitative
research strategy is essential to conduct the study.
As

per

Silverman

(2011)

qualitative

research

strategy

refers

detail

information analysis of the study to understand different techniques of


Primark, effectiveness of advertising techniques of Primark, limitations of
existing advertising methods of Primark and advantages of advertising
methods of Primark. Therefore, qualitative research strategy is used to
identify present condition of role of advertising in Primark in detail. The detail
information regarding research problem can be reviewed and explained by
using qualitative research strategy. Therefore, both quantitative and
qualitative research strategies are used to investigate the study.
2.2
As identified by Shankar (2008) there are two types of data collection methods available in the study
such as primary data collection and secondary data collection methods. Primary data collection
method is used to investigate the study because this method allows collecting data about advertising
techniques of Primark, effectiveness of advertising methods of Primark, customer attraction to
purchase clothes.

As per Conrad and Schober (2008) secondary data collection method is used for past information
gathering purposes. Secondary data are collected from books, journals, research papers, Primark
website, Primark annual report, and etc. Secondary data collection method is directly connected by
reviewing of theoretical information from secondary sources. Secondary data collection method is
suitable to investigate this study.
There are five basic methods to carry out a market research, namely;

Surveys

Focus groups

Personal interviews

Observation

Field trials
Surveys
By using brief, direct and simple questionnaires we can analyze a sample of the target market which represents the
population satisfactorily. Larger the sample size it is larger the reliability and the ability o generalize the findings to the
population. There are three types of surveys, namely, In-person surveys, telephone surveys, mail surveys and online
surveys.
Focus groups
The moderator, the person who conducts the discussion, uses a pre-prepared series of questions or topics which are
to be discussed by a group of people. This type of research usually takes place at neutral locations with the facilities
of video recordings, observation rooms with any external or internal obstacles to the selected groups of people. A one
group will conducts discussion about 1-2 hours and a minimum of three groups are used to come to a conclusion.
Personal interviews
The persons are interviewed with unstructured, open-ended questions. The discussions are normally recorded. A
discussion may run about one hour.
Observation
Very often the responses given by the people in surveys, personal interviews and focus groups are bogus that the
researcher may be lead to make wrong conclusions. Instead the observing the people at work, home, shopping, etc
without knowing to them by using video tracking will give amore genuine responses to a particular questions
regarding the customer behaviour.
Field trials
This involves placing a new product in the existing store to identify and analyze the customer responses under real
life selling conditions. This helps the product modifications, improve the quality of packing, amend the prices, etc.
Usually small businessmen and new product developers can use this way successfully for market their product.

Research limitations
Research limitations must be avoided to provide valid research findings. Mainly research limitations
arise in primary and secondary data collection methods and data analysis methods in this study.
Employees and customers of Primark may provide inaccurate and misleading responses due to their
reasons. These responses lead to misleading and inaccurate responses in data collection
procedure. Therefore, wrong responses can be led to increase validity issues.

2.3 Validity and reliability of market research findings


Not only conducting marketing research, but also it is important that the Primark validates the
research findings. When it comes to validating the market research findings it is important that
Primark concentrate on validating the methods which were used in order to collect data and validate
the consistency of the data sources utilized (Ruckdeschel, 2012).
Equally, using different researchers in order to gather data will also validate the research findings by
reducing the biasness of the research to a greater extent. When multiple perceptions are being
developed in order to gain an understanding on a research area and multiple perspectives are being
concentrated by the researcher, the percentage of biasness will definitely decrease within the
research (Ruckdeschel, 2012).
Ruckdeschel (Ruckdeschel, 2012) also explains that, research methods, data sources, using
multiple researchers are very important in order to validate the research study of Primark while the
researcher uses proper theoretical conceptions. This will eliminate the risk of the research objectives
going astray while helping the researcher to keep thoroughly on course most of the time.
2.4 Marketing research plan to obtain information in a given situation
As Saunders et al., (2011) explain, market research plans are set by organizations according to a
standard template which is developed in order to focus the research towards its final objectives.
According to the authors, first of all the researcher should formulate and clarify the research topic in
the most suitable manner.

Thereafter, the researcher should be cautious enough to critically evaluate the previous literature
based on the research topic. This will be with the sole intention of Primark understanding where the
current research is in the field of marketing research and it will be very important because the next
step will concentrate on selecting proper samples (Saunders et al., 2011).
According to Saunders et al., (2011) the researcher will then need to collect secondary data as well
as primary data. Primary data may be collected through various methods like questionnaire surveys,
interviews, observation etc. Once the data have been collected the researcher should then use an
appropriate strategy to analyze the research findings. This will include analyzing the qualitative data
as well as the quantitative data which will be followed finally by writing the research report.
3.1 Assessing market size trends within a given market
Lavinsky (2012) explains that, assessing market sizes and trends of Primark is very important, but
equally challenging for companies intending to maintain market dominance through the same
strategies. Especially, if the firm is competing in emerging markets with new products and new
customer segments it happens to be much challenging to assess the market size accurately.
Therefore, Lavinsky (2012) suggests that Primark adapt several elements in order to generate a
better understanding on market size assessment.
Competitors Primark should clearly know who their competitor in the market is and who potential
competitors are once the firm releases a new product. This will provide the Primark with much
needed marketing intelligence in assessing market size trends.
Customers Customers form an integral part of Primark. Therefore, Primark should have a clear
understanding on the demographic and psychographic background of their customers while
understanding clearly how far they have developed brand loyalty towards Primark. (Lavinsky, 2012)
Market factors Market factors include elements such as government regulations such as
consolidations as well as price changes which are important to the organization in terms of
assessing the market size trends.
Case studies Identifying case studies based on similar transformation in the markets while paying
attention closely to customer adaption rates will also provide the firm with much needed marketing
intelligence.

3.2
In a highly competitive market PRIMARK is outstanding its performance and the reasons for the
remarkable performance is the cost advantage over rival firms.
In past three years PRIMARK has got lot of rights which are been reserved. Its strongest competitors
are TK MAX, MARKS N SPENSOR, GEORGE at ASDA.
Although all three are in the 'value' segment and therefore have similar market positioning, the other
two have different strategies to that of Primark. TK Maxx sells heavily-discounted prestige brands
and George at Asda has created its own private-label brand mostly at out-of town stores. Primark is
a high street retailer which has a family of brands and focuses much more on buying, logistics and
supply chain management rather than branding.
In order to sustain in the market Primark should follow cost leadership strategy i.e. it should not sell
the products at a lower price rather lowest price than of the competitors so as to raise its profit
margin.

3.3

Strengths:
Price can prove to be the major strength for the company. As PRIMARK deals with the products that
are affordable it drives the attention of the consumers by selling the products at an discounted prices
which attracts more number of customers.
An established brand name can also prove to be a strength for the company. As PRIMARK has a
well recognised brand name around the globe it has created a strong goodwill in the market.
PRIMARK has opened up many franchise in almost every cities and town which is feasible for the
customers to access any outlet in the vicinity.
The company also have diversified its product range and this is a major strength as consumer can
get all kinds of variety under one roof.
According to me, PRIMARK has is kind of gift to the students and consumers who are trapped to
shed out more amount of money without compromising on the style and fashion available.
The products of the competitors like the TOP SHOP, MISS SELFRIDGE, ACCESSORIES are sold at
a tenth of the price.

Weakness:
Primark's customers services are very few while customers in crowed that's why you see long and
long queues, which are very big problem for their customers, while their competitors properly
manage their customers, and you never see long queue there.
Customers fail to prefer PRIMARK'S product as they feel the products are not durable and people
fail to trust the quality of the products.
The atmosphere also proves to be a weakness for the company as the products are not managed
tidily and there is a crowded and untidy atmosphere which would inturn ruin the shopping experience
of the customer.

Opportunities:
The company has organized a new organization structure which is designed to serve its customers
better, take advantage of market opportunities and reduce costs.
The company is planning to significantly increase its count of franchise and expanding its market.

Threats:
The competitors selling the same products act as a threat for the company. As PRIMARK has to
make sure about its competitors pricing strategies,and to avail the products at a cheaper price than
that of the competitors.

4.1 Techniques of assessing customer response


According to Simpson (2012) customer satisfaction is nothing but important to organizations, but it
happens to be very difficult to be measured accurately. However, customer satisfaction is vital for
any organization which tries to develop a positive stance over other organizations of the business
while maintaining its competitive advantage in the market. A disappointed customer is highly unlikely
to return to the company for more deals while satisfied customers will spread out the good words
about the operations of the organization promoting it among other too. This is why it is mentioned
that customer responses are much important for organizations.

Simpson (Simpson, 2012) explains several methods which organizations can use in order to
measure consumer responses such as consumer surveys, competitor assessments, pinpointing
specifics as well as understanding the expectations of the market.
A customer satisfaction survey sheet for Tesco
TESCO
Customer Satisfaction Questionnaire

At our practice we take pride in our business but we are always looking for meet the goals of our
loyal customers. Therefore we often search the ways and mean that how our service can be further
improved. Hence we would delight if you can answer following short questions and support us to
provide a improved service for your satisfaction.

How satisfy you are with


Your total experience at
TESCO supermarkets
The way you are dealt with
the shop floor employees
The courteousness of the
staff
The support of the staff
when you searching for a
product
The price you paid for the
products at TESCO
The availability of product,
price and other necessary
information
The arrangements of food
courts
The availability of variety of
products
The terms of credit facilities
provided
Speed of the services
provided

Very
satisfied

Satisfied

Neutral

Dissatisfied

Very
dissatisfied

Ability to make complaints


directly to the officers
Please, let us know your suggestion to improve our services to provide you a satisfactory service:

..

4.3
4.2 Customer satisfaction survey
Techniques which can be used in order to help the organization assess the responses of
customers to its marketing activities
To the Managing Director
Prepared By:
Date:
Executive Summary
This report is intended to address possible techniques which can be adapted by the fashion outlet in
order to assess the responses of customers when it comes to the marketing activities of the
organization. The author has made a comprehensive approach towards the most practical
techniques and strategies taking into consideration the organizational background in order to
develop a better view regarding the presuming need.
Introduction
When it comes to assessing the responses of customers it is important that organizations
understand that they are dealing with the cumulative experience of customers. When a customer
reaches the points of contact within an organization, he/she will be exposed completely to elements

which will decide whether the customer will leave the premises satisfied or dissatisfied. Cicerone,
Sassaman and Swinney (Cicerone et al., 2008) explains that, the organization will be solely
responsible for the feelings which customers will gain through the interaction with the company
which will also decide the future in terms of brand loyalty.
4.2.1 Measuring customer responses
Smith (2007) explains that, customer satisfaction can be measured under several different criteria.
They are explained below.

Overall measures of satisfaction

Affective measures of satisfaction

Cognitive measures of satisfaction

Behavioral measures of satisfaction

Expectations measures
However, a more specific explanation too has been provided parallel to the performance of the
organization incorporating it with customer satisfaction.
Productive performance indicator
According to this variable, organizations tend to determine the number of customer orders
processed during one human hour. This will not only indicate the level of consumer satisfaction and
responses but also it will be much beneficial for the organization to minimize time consumption
which will have a direct effect towards the organizational productivity. (Management Study Guide,
2012)

Bibliography
Book References

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Introduction, Singapore: Kyodo Printing Co Ltd

Peter, J.P., Donnelly, J.H. (1994) A Preface to Marketing Management, United Status of
America: R.R. Donnelly & Sons Company

Reed P. W. (1944). Marketing, Planning and Strategy, 1ed. Australia: Harcourt Brace
Jovanovich.

Stauble V.R. (2000), Marketing Strategy, A Global Perspective. United Status of America:
The Dryden Press, Harcourt College Publishers.

Kerin R.A. Vijay Mahajan, Varadarajan P.R. (1990), Contemporary Perspectives on Strategic
Market Planning. United Status of America, Allyn and Bacon.

Kerin R.A. Peterson R.A. (1998), Strategic Marketing Problems, Cases and Comments, 8ed.
United Status of America, A Simon and Schuster Company.

Gardner, David, and Howard Thomas. Strategic Marketing: History, Issues, and Emergent
Themes. In Strategic Marketing and Management, edited by Howard Thomas and David Gardner.
New York: John Wiley & Sons, Inc., 1985.

Gladish, Alan W. Plan to Market for Long-Term Prosperity. Marketing News, 7 December
1998, 14.

Graham, John R. Making Marketing Work. Direct Marketing, September 1998, 40.

Guiltinan, Joseph P., and Gordon W. Paul, et al. Marketing Management. 6th ed. New York:
McGraw-Hill College Div., 1996.

Hiam, Alexander, and Charles D. Schewe. The Portable MBA in Marketing. 2nd ed. New
York: John Wiley & Sons, Inc., 1998.

Lynn, Robert A., and John M. Thies. Marketing Strategy and Execution. In Dartnell
Marketing Managers Handbook, edited by Stewart Henderson Britt and Norman F. Guess. Dartnell
Corp., 1984.

McCarthy, E. Jerome, and William D. Perreault Jr. Basic Marketing. 13th ed. New York:
McGraw-Hill College Div., 1998.

Schnaars, Steven P. Marketing Strategy: A Customer-Driven Approach. Reference ed. New


York: Free Press, 1995.

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Question 02:
Different methods of market research

There are five basic methods to carry out a market research, namely;

Surveys

Focus groups

Personal interviews

Observation

Field trials
Surveys
By using brief, direct and simple questionnaires we can analyze a sample of the target market which
represents the population satisfactorily. Larger the sample size it is larger the reliability and the
ability o generalize the findings to the population. There are three types of surveys, namely, Inperson surveys, telephone surveys, mail surveys and online surveys.
Focus groups
The moderator, the person who conducts the discussion, uses a pre-prepared series of questions or
topics which are to be discussed by a group of people. This type of research usually takes place at
neutral locations with the facilities of video recordings, observation rooms with any external or
internal obstacles to the selected groups of people. A one group will conducts discussion about 1-2
hours and a minimum of three groups are used to come to a conclusion.
Personal interviews
The persons are interviewed with unstructured, open-ended questions. The discussions are normally
recorded. A discussion may run about one hour.
Observation
Very often the responses given by the people in surveys, personal interviews and focus groups are
bogus that the researcher may be lead to make wrong conclusions. Instead the observing the people
at work, home, shopping, etc without knowing to them by using video tracking will give amore
genuine responses to a particular questions regarding the customer behaviour.
Field trials
This involves placing a new product in the existing store to identify and analyze the customer
responses under real life selling conditions. This helps the product modifications, improve the quality
of packing, amend the prices, etc. Usually small businessmen and new product developers can use
this way successfully for market their product.
Validity and Reliability of Methods of Market Research
Research Validity

Every research has its unique purpose so that the results generated through the use of the research
must be relevant to the question that was addressed by the research. More often the researches are
not generating 100% accurate and valid results due to weaknesses such as, overspending over the
research, inadequate understanding about what is to be achieved by the research, poor choice of
reference materials, researching the wrong group of customers/employees, not being aggressive
enough when carrying out the research and relying on one set of data. Because of these factors the
researches may not derive the relevant or valid outcome.
Research Reliability
This is relevant to the extent to which the outcome of the research can be generalized to the
population as a whole. In other words, will the research would generate same results if another
sample is selected from the same population. If the data gathered are unbiased, genuine and
accurate, the results arrived based on such data will be consistent with a results of a survey of a
different sample of the same population. This can easily be evaluated by utilizing different
researchers to follow the same methods and same population, emphasizing that different individuals
are occupied in the survey. If the findings are almost the same then it can be assumed that the data
gathered are reliable.
In brief, every research method has its own limitations. Surveys may tend to errors such as
misunderstood the purpose, sampling errors, gather unnecessary information, decisively completed
survey sheets by the researcher and confusing when processing data. Then the validity and the
reliability come into question. Further, whether focus groups and personal interviews give more
subjective and valid data, the statistical reliability is low due to the representation of the population is
insufficient. Accordingly it is more suitable to use a combination of research methods to generate a
more valid and reliable information so that the company is able to arrive at more accurate
conclusions and improvements thereby.
Two Companies and Their Business
Castrol
Castrol is a world leading specialist for providing lubricants. Most people know its expertise
regarding developing lubricants for cars and bikes. But the company is producing lubricants that
influence the day-to-day life in several less noticeable ways as well. As an example the company
produces lubricants for gas and electricity production, transport industries, construction and earth
moving vehicles, refrigeration, metalworking and plastics.
Lubricating oil is an essential component of every internal combustion engine. There is a Castrol
lubricants designed specifically for the job for varying set of vehicles from small passenger vehicle to

a cargo ship. Castrols products play a major part in our everyday lives, supplying oils, transmission
fluids, antifreeze coolants greases and break fluids to fill variety of local needs all around the world.
The founding father of the company is Charles Wakefield who is the founding father of the newly
invented lubricant by himself which was named by him as Castrol in the first half of the twentieth
century. Castrol is a member of BP Group and it is an iconic British Brand that has a major impact on
almost every facet of the global market.

The purpose of Castrol is to be the pioneer of providing lubricants for day-to-day requirements and
to fulfil the demand of the market to the ultimate satisfaction of the customers. The company always
focus on the solutions for customer requirements. Hence they supply the market a range of
lubricants such as car engine oils, car gear oils, ATF and Break oils, Castrol motor cycle products,
etc.
Question 03:
Competitors of Tesco
TESCO is a multinational company in the Great Britain, which is carrying out its businesses in
approximately about six countries across the world. Originally specializing in food and drink, TESCO
has diversified into many important business areas such as clothing, electronics, home, health, car,
dental, financial services, telecoms, pet insurance, retailing and renting DVDs, CDs, etc. Starting the
first self-service super market in 1956 TESCO has done hundreds of acquisition of other
supermarket chains in Britain. The company has now grown into the leading food retailer of the
Great Britain. There are several other supermarket chains in the country which are dominant by
TESCO, Sainsburys, ASDA and Morrisons. These four supermarket chains held 76% of UK grocery
market at present. The information regarding these three competitors and some other competitors of
TESCO are shown below.

Name of the
Supermarket

Established
in

Owner

Market
Share

TESCO

1919

UK Plc

30.7

Morrisons

1899

UK Plc

11.7

ASDA

1949

Wal-Mart through the


subsidiary of the Corinth
Service Ltd.

17.3

Sainburys

1869

UK Plc

15.9

Various co-operative societies.

7.9

The Co-

Other information

operative
Foods
Farm foods
Netto

1954

UK Private Company

0.6

1990

Dansk Supermarket Group

0.8

Iceland

1970

Indirectly controlled by
Baugur Group of Iceland

1.7

ALDI

1989

Aldi Sud

3.0

LIDL

1994

Lidl Stiftung and CO KG.

2.3

WaitRose

1904

John Lewis parnership

4.0

UK stores sold to
ASDA in 2010

However the rival supermarkets are not easily catch up with the TESCO. The problem for rival
supermarkets is that Tesco is miles ahead.
Opportunities and Threats of Tesco Super Market Chain
Opportunities and threats can be identified by the analysis of a companys external environment. The
opportunities and threats that are in the forefront of TESCO can be listed as follows.

Opportunities

Ability to expand the business over the countries as TESCO has an international program.

Development of technologies opens the new areas of businesses.

The opportunity to start new businesses as TESCO is highly diversified company and
therefore the knowledge and expertise is higher than other rival companies.

Expand the businesses by entering to the concessionary trading agreements with other
country multinational due to the greater recognition in UK.

Enter the agreement with the suppliers to provide the market with high quality goods at low
cost due to the companys bargaining power is high.
Threats

Lack of customer survey may leads the company image and brand loyalty fall down.

The high volume of stock levels at TESCO stores may lead the company into financially
weak and high risk attached to the loss of stocks.

High risk attached with the foreign operations.

A marketing research plan for Tesco Super Market Chain


The first step in the research plan is to formalize the specific purpose of the research. Once this is
accomplished the sequence of tasks and responsibilities have to be established in detail. The
outlining the research plan is critical because the decisions of the study determine the creating of the
proper marketing mix.
An important decision in this stage is what data should be collected. It is crucial to set correct
definitions or otherwise the purpose of the research would be distorted. Then the method of data
collection has to be selected. The primary and secondary sources can be used, however here the
budget constraints for the research, if any, will have to be considered.

Week
Task
Set the Tentative
Projective Title
Statement of the Problem
Define and delimit the
problem
Set Objectives and define
them
Outline the framework of
the research
Decide the data collection
methods
Decide on the material
sources of data gathering
Identify the population and
the set criteria for sample
Recognize the sample
Build the questionnaire
and prepare data collection
forms

10

11

12

Decide on the personnel


requirements to carry out
the research
Carry out the research
Stat the on line survey
together with the personal
survey
Carry out the data
processing and phases of
study to arrive the
conclusions
Build recommendation
based on the conclusions
After research plan is fully specified, the time and cost of the study can be estimated. If management
is on the opinion that the benefits of the research are overwhelming the costs of the research then
the research will be worked out as i planned.
Question 04:
Assessing customer responses for Tesco
Customers satisfaction or the dissatisfaction is determined by the customers cumulative experience
with the supplier. A customer satisfaction survey will gives a comprehensive knowledge about the
consumers satisfaction including the followings.

Customers expectations

Customers level of satisfaction or dissatisfaction

Customers suggestions to improve

Key attributes that affect the selection of a supplier by the customer and the importance of
those key attributes

Strengths and weaknesses of the supplier in the customers point of view


To TESCO assessing customer responses is vital to get a feed back about the services they provide
and to go for further improvements. TESCO has built up goodwill over years as a pioneer of food
retail industry in Britain. However it would be important to carry out surveys upon the customer
satisfaction on the relationship with TESCO over years. Such a study will derive the following
benefits to the company.

Get information about the employees performance with customers.

Identify the areas to be improved further

Identify the weaknesses of the system that the company doesnt pay attention sufficiently

Give an idea about future customer movements

Can obtain some information about the competitors and their services that have an impact
on TESCOs target markets
TESCO can easily carry out a Customer Satisfaction survey to find out these points. The survey can
be carried at every outlet in Britain and process them into valuable information that would result in
future improvements of the businesses and the ensuring being the pioneer of food retail industry in
UK further.
A customer satisfaction survey sheet for Tesco
TESCO
Customer Satisfaction Questionnaire

At our practice we take pride in our business but we are always looking for meet the goals of our
loyal customers. Therefore we often search the ways and mean that how our service can be further
improved. Hence we would delight if you can answer following short questions and support us to
provide a improved service for your satisfaction.

How satisfy you are with


Your total experience at
TESCO supermarkets
The way you are dealt with
the shop floor employees
The courteousness of the
staff
The support of the staff
when you searching for a
product
The price you paid for the
products at TESCO
The availability of product,
price and other necessary
information
The arrangements of food
courts
The availability of variety of
products

Very
satisfied

Satisfied

Neutral

Dissatisfied

Very
dissatisfied

The terms of credit facilities


provided
Speed of the services
provided
Ability to make complaints
directly to the officers
Please, let us know your suggestion to improve our services to provide you a satisfactory service:

..

Conclusion
The buyer behaviour determines by the factors that determine the number of stages of the purchase
decision process. The profitable marketing starts with the discovery and understanding of consumer
needs and then developing a proper marketing mix to meet the customer expectations.
Marketing research is an integral part of the marketing decision making process. It is a important
component of the marketing decision support system that gain a company competitive advantages.
There are five methods of market research. The validity and the reliability of them are to be
discussed and debated to choose a most suitable method of research.
Brand loyalty, company image and the repeat purchasing have a combined relationship to each
other. Three of them are deriving the competitive advantages to the company.
Consumer satisfaction survey will help the company to identify the level of satisfaction of the
consumers relationship having with the company. It will give an understanding of the customers
brand loyalty, corporate image and the necessary improvements to enhance the satisfaction and
ultimately achieve the shareholder expectations.
Bibliography
Book References

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Stauble V.R. (2000), Marketing Strategy, A Global Perspective. United Status of America:
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Kerin R.A. Vijay Mahajan, Varadarajan P.R. (1990), Contemporary Perspectives on Strategic
Market Planning. United Status of America, Allyn and Bacon.

Kerin R.A. Peterson R.A. (1998), Strategic Marketing Problems, Cases and Comments, 8ed.
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Graham, John R. Making Marketing Work. Direct Marketing, September 1998, 40.

Guiltinan, Joseph P., and Gordon W. Paul, et al. Marketing Management. 6th ed. New York:
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Hiam, Alexander, and Charles D. Schewe. The Portable MBA in Marketing. 2nd ed. New
York: John Wiley & Sons, Inc., 1998.

Lynn, Robert A., and John M. Thies. Marketing Strategy and Execution. In Dartnell
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Corp., 1984.

McCarthy, E. Jerome, and William D. Perreault Jr. Basic Marketing. 13th ed. New York:
McGraw-Hill College Div., 1998.

Schnaars, Steven P. Marketing Strategy: A Customer-Driven Approach. Reference ed. New


York: Free Press, 1995.
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2.1 Different types of market research techniques

According to Bradley (2007) marketing research represents an integral part of the business
operations in the present world. He explains that, there are several major methods through which
organizations conduct marketing research.

Business to business research

Advertizing research

International research

Audience research

Social research
However, being more specific on the subject of marketing research (Saunders et al., 2011) there are
five basic marketing research techniques such as surveys, focus groups, personal interviews,
observation and field trials.
From these five types, surveys represent direct questions asked from the research sample and
larger the sample more reliable the outcome of the research will be. Surveys can be done through
various methods such as over the telephone, person to person and through mails. However, the
reliability is highest when it comes to face to face surveys.
On the other hand, personal interviews are basically interviews conducted with both open and semistructured questionnaires. Through a personal interview the researcher will be able to gather more
subjective data than surveys. Focus group discussions are somewhat similar to personal interviews
where the moderator uses a series of questions in order to trigger answers from a group of people.
(Saunders et al., 2011)
According to Saunders et al., (2011) observation is another research technique used by
organizations where customers are observed by the researcher being outside the sample. However,
this method can prove to be quite challenging. Finally, field trials test customer responses by placing
products in test shops where consumers will be able to experience the product in real life conditions
before providing feedback.
2.2 Using secondary data to achieve market research objectives
Organizations should not only develop marketing research strategies and tactics, but also they
should make sure that they achieve their marketing research objectives because the achievements

will decide the stability of the organization at the end of the day. As Churchill and Iacobucci (2010)
mention, organizations should first understand the purpose of the research, what are the information
needed and how will the information be utilized in the research.
Thereafter, the organization needs to achieve its marketing research objectives by checking whether
similar researches have been conducted in the past, reviewing whether there are existing and
relevant data, how much the company can spend on research and obtaining of needed information
and finally, the best possible methods according to which data will be used in the research.
According to Churchill and Iacobucci (2010) one of the major objectives of research is to make sure
that information doesnt reach its processing stage in a bias form because it may lead towards bogus
figures which will do nothing but harm the ultimate objectives of the research. Once the researcher
has gathered the information required, he/she will be able to test the hypothesis on which the
research is based while making sure that the above mentioned objectives are being realized at the
end of the day.
2.3 Validity and reliability of market research findings
Not only conducting marketing research, but also it is important that the Primark validates the
research findings. When it comes to validating the market research findings it is important that
Primark concentrate on validating the methods which were used in order to collect data and validate
the consistency of the data sources utilized (Ruckdeschel, 2012).
Equally, using different researchers in order to gather data will also validate the research findings by
reducing the biasness of the research to a greater extent. When multiple perceptions are being
developed in order to gain an understanding on a research area and multiple perspectives are being
concentrated by the researcher, the percentage of biasness will definitely decrease within the
research (Ruckdeschel, 2012).
Ruckdeschel (Ruckdeschel, 2012) also explains that, research methods, data sources, using
multiple researchers are very important in order to validate the research study of Primark while the
researcher uses proper theoretical conceptions. This will eliminate the risk of the research objectives
going astray while helping the researcher to keep thoroughly on course most of the time.
2.4 Marketing research plan to obtain information in a given situation

As Saunders et al., (2011) explain, market research plans are set by organizations according to a
standard template which is developed in order to focus the research towards its final objectives.
According to the authors, first of all the researcher should formulate and clarify the research topic in
the most suitable manner.
Thereafter, the researcher should be cautious enough to critically evaluate the previous literature
based on the research topic. This will be with the sole intention of Primark understanding where the
current research is in the field of marketing research and it will be very important because the next
step will concentrate on selecting proper samples (Saunders et al., 2011).
According to Saunders et al., (2011) the researcher will then need to collect secondary data as well
as primary data. Primary data may be collected through various methods like questionnaire surveys,
interviews, observation etc. Once the data have been collected the researcher should then use an
appropriate strategy to analyze the research findings. This will include analyzing the qualitative data
as well as the quantitative data which will be followed finally by writing the research report.
3.1 Assessing market size trends within a given market
Lavinsky (2012) explains that, assessing market sizes and trends of Primark is very important, but
equally challenging for companies intending to maintain market dominance through the same
strategies. Especially, if the firm is competing in emerging markets with new products and new
customer segments it happens to be much challenging to assess the market size accurately.
Therefore, Lavinsky (2012) suggests that Primark adapt several elements in order to generate a
better understanding on market size assessment.
Competitors Primark should clearly know who their competitor in the market is and who potential
competitors are once the firm releases a new product. This will provide the Primark with much
needed marketing intelligence in assessing market size trends.
Customers Customers form an integral part of Primark. Therefore, Primark should have a clear
understanding on the demographic and psychographic background of their customers while
understanding clearly how far they have developed brand loyalty towards Primark. (Lavinsky, 2012)

Market factors Market factors include elements such as government regulations such as
consolidations as well as price changes which are important to the organization in terms of
assessing the market size trends.
Case studies Identifying case studies based on similar transformation in the markets while paying
attention closely to customer adaption rates will also provide the firm with much needed marketing
intelligence.
*Please refer the power point presentation for more details of this section
3.2 Competitor analysis for the fashion outlet
Riley (2012) explains that analyzing competitors is very important for all organizations irrespective of
the field in which they are involved. Since the case concentrates on fashion outlets in UK it is
important that the fashion outlet discussed through this case concentrate more on the same field.
Through a well conducted competitor analysis the organization will be able to manage its competitive
advantage in the market, better understand past, present and potential competitors as well as
develop comprehensive strategies in order to fit the market requirements.
When it comes to competitor analysis there are several questions to be asked by the organization.
They are depicted below.

Who are our competitors?

What threats do they pose?

What is the profile of our competitors?

What are the objectives of our competitors?

What strategies are our competitors pursuing and how successful are these strategies?

What are the strengths and weaknesses of our competitors?

How are our competitors likely to respond to any changes to the way we do business?
Furthermore, the organization will be able to gain a better understanding on the fields which it
decides to test through recorded data, observable data and opportunistic data. Recorded data
represents the data set which can be accessed through internal or external publications while
observable data will be assembled through several sources. Opportunistic data are data come from
discussions made with suppliers, customers as well as previously conducted competitor analysis.

3.3 Opportunities and threats of the fashion outlet


This case resembles a situation where a fashion outlet in London has faced with a challenging
scenario where its management tries its best to develop it into a stronger position which may
develop a competitive advantage over other outlets operating in the business. Ferrell and Hartline
(Ferrell & Hartline, 2010) explain that, once organizations analyze their current situation through a
well conducted SWOT analysis covering strengths, weaknesses, opportunities and threats it will
be able to develop a better idea of market capitalization.
In the current case, one of the main opportunities of the company is that, it has a strong panel of
directors and employees who are committed towards their jobs. The best example is Ms. Caroline
who tries her best to bring her fashion outlet into a strong position. Equally, the field in which it
operates fashion tends to be another opportunity for the company with the United Kingdom
gaining much needed reputation as one of the best grounds for fashion. Once the company makes
sure that it exploit these opportunities properly it will be assured that it claims the best of its efforts by
the end (Ferrell & Hartline, 2010).
However, the company has lost much of its financial stability. As a result, it will not only lose its
possibilities to advertize more aggressively but also the organization is more likely to lose the
comfort of exploiting opportunities for research and development. The brand image of the company
too has undergone certain challenges along with the delicate situation displayed within the past few
months, thus challenging the newly appointed Managing Director of bringing the organization into a
strong level of customer appreciation. (Ferrell & Hartline, 2010)
4.1 Techniques of assessing customer response
According to Simpson (2012) customer satisfaction is nothing but important to organizations, but it
happens to be very difficult to be measured accurately. However, customer satisfaction is vital for
any organization which tries to develop a positive stance over other organizations of the business
while maintaining its competitive advantage in the market. A disappointed customer is highly unlikely
to return to the company for more deals while satisfied customers will spread out the good words
about the operations of the organization promoting it among other too. This is why it is mentioned
that customer responses are much important for organizations.

Simpson (Simpson, 2012) explains several methods which organizations can use in order to
measure consumer responses such as consumer surveys, competitor assessments, pinpointing
specifics as well as understanding the expectations of the market. However, within this case, the
student will be designing a questionnaire which may be utilized in order to understand the responses
of the current and potential consumers in the market.
Depicted below is the questionnaire carrying all close ended, semi structured as well as multiple
choice questions intended to measure the level of customer satisfaction parallel to their responses
by the fashion outlet mentioned in this case.
1.

Are you interested in fashion expanding beyond traditional boundaries?


Yes..

2.

No..

Do you think that the United Kingdom has an advantage when it comes to fashion
designing?
Yes..

3.

No..

Do you think that fashion designing is a healthy trend to be undertaken in the United
Kingdom?
Yes..

4.

No..

As a customer do you believe that our fashion outlets are successful in providing what you
are looking for?
Yes..

5.

No..

According to your opinion, what are the areas our company has to develop in order to best fit
your interests?

6.

What are the difficulties you have identified when it comes to purchasing items from our
outlets?

7.

In which grade will you rate the level of service of our fashion outlets?
.Very poor
.Poor
.Moderate
.Good
.Very good

8.

According to your opinion in which grade are we in terms of product development?


.Very dissatisfactory
.Dissatisfactory
.Neither satisfactory nor dissatisfactory
.Satisfactory
.Very satisfactory

9.

As per your understanding where will you rate our outlets in terms of brand image?
.Very weak positioning
.Weak positioning
.Moderate positioning

.Strong positioning
.Very strong positioning
10.

As a customer of our fashion outlets, will you recommend us to a friend of yours? Why or
why not?

4.2 Customer satisfaction survey


Techniques which can be used in order to help the organization assess the responses of
customers to its marketing activities
To the Managing Director
Prepared By:
Date:
Executive Summary
This report is intended to address possible techniques which can be adapted by the fashion outlet in
order to assess the responses of customers when it comes to the marketing activities of the
organization. The author has made a comprehensive approach towards the most practical
techniques and strategies taking into consideration the organizational background in order to
develop a better view regarding the presuming need.
Introduction
When it comes to assessing the responses of customers it is important that organizations
understand that they are dealing with the cumulative experience of customers. When a customer
reaches the points of contact within an organization, he/she will be exposed completely to elements
which will decide whether the customer will leave the premises satisfied or dissatisfied. Cicerone,

Sassaman and Swinney (Cicerone et al., 2008) explains that, the organization will be solely
responsible for the feelings which customers will gain through the interaction with the company
which will also decide the future in terms of brand loyalty.
4.2.1 Measuring customer responses
Smith (2007) explains that, customer satisfaction can be measured under several different criteria.
They are explained below.

Overall measures of satisfaction

Affective measures of satisfaction

Cognitive measures of satisfaction

Behavioral measures of satisfaction

Expectations measures
However, a more specific explanation too has been provided parallel to the performance of the
organization incorporating it with customer satisfaction.
Productive performance indicator
According to this variable, organizations tend to determine the number of customer orders
processed during one human hour. This will not only indicate the level of consumer satisfaction and
responses but also it will be much beneficial for the organization to minimize time consumption
which will have a direct effect towards the organizational productivity. (Management Study Guide,
2012)
Financial performance indicator
This indirectly refers to the TRC or Total Response Cost. This will help the organization to actively
calculate the cost incurred for the asset usage, customer response workflow, infrastructure as well
as medium charges for the internet as well as phones. Thus, the organization will also be able to
understand who the most profitable customers are and who are not. As a result, a financial
performance indicator will be able to provide an organization with knowledge to check customer
response while enhancing its own financial features. (Management Study Guide, 2012)

Quality performance indicator


Order Entry Accuracy (OEA) and First Time Fill Rate (FTFR) are the primary measures which
calculate the quality performance of an organization. Invoice accuracy as well as Order Status
Communication accuracy are some other measures which can be developed by organizations in
order to measure quality performance which will have a significant impact towards the overall
customer impression and response of the organization. (Management Study Guide, 2012)
Response Cycle Time indicator
The Order Processing Time (OPT) is used to indicate the response cycle time of the organization.
The time taken since the order was the received until the time it was ultimately delivered to the
market is being measured through this method. This is one of the main reasons why CRM systems
have become much affective in the present day business context. Through increasing productivity of
an organization and reducing the time taken for order delivery, this method helps organizations to
increase the customer response level along a positive channel much possible than ever.
(Management Study Guide, 2012)
4.3 Determining the success of the questionnaire
There are various methods which can be used by the researcher when it comes to developing a
scheme to identify the success factors of a given survey or questionnaire. However, Gillham (2000)
explains that, there are several methods which researchers may use when it comes to analyzing the
effectiveness of a questionnaire.
A questionnaire, as Gillham (2000) explains, needs to cover the areas in depth. Equally, it is
important that questionnaires be answered with answers in a way that the researcher will be able to
develop any subjective answer into standardized answers. Since the questionnaire reflects the
respondents opinions the researcher will be able to determine the success of the questionnaire
more effectively.
Gillham (2000) also mentions that, the success of the survey depends on the chance which people
get to participate in it. The researcher therefore, needs to provide people with an opportunity and
interest to participate in a survey. Once these steps are completed the researcher will be able to

determine the success of the questionnaire and appropriately skew the collected data in a way that
they lead towards the ultimate and unbiased objectives of the research.
Conclusion
During this assignment, it was realized that market intelligence can be addressed in various forms
extending from simply understanding the consumer decision making process to conducting and
reviewing the process of a market research survey. Furthermore, it was also understood by the
student that the researchers role in the marketing intelligence system is highly important and when it
comes to the industry of fashion designing in the United Kingdom this role only tends to be more
challenging as well as competitive.

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