Market Research

Apple launched its products in China in 2009. Recently, Apple has been criticized by Chinese government and media regarding three main issues, including slave labors, guarantee scandals, and underdeveloped infrastructure. This assignment is to begin with an outlook onto the strategic issues that need solving. The next part of the report goes further into an intensive analysis of the situation Apple has confronted in China. To make clear the three issues, the first thing to do is to look out for information needs that are essential for the clear formulation of the problems.

From hat, proper tools were applied to foster the scanning process in order to find out pertinent evidence which will answer the hypotheses set by the groups. Looking deep into the situation, more has been revealed behind the truth. In this process, some information gaps have also been revealed. Thanks to the research, it has been concluded that Apple was under great pressure from media and Chinese governments which aim at exaggerating the negative sides of the issue. Effort was also put to find out information about competition as well as other aspects related to the government policies and media, etc.

Then, the report aims at positioning the Apple company, using the SOOT analysis and Pestle analysis of Apple in China related to the issue. These pieces of analytical information were of great help to the group in finding how the company can use its internal and external resources to adapt and reinforce its position in the context of its scandals in China. A further important aspect of the case study is to identify Apple’s stakeholders in China and position them, using the Perceptual Mapping. After that, implications have been drawn as to which stakeholders Apple should focus its efforts on to deal with the doted issues.

In the next part, the report summarizes the scanning process used by Apple to identify problems, information needs, collect, analyze and communicate information. This scanning process will provide proper methods for pertinent information related to the issue. The most important part of this report focuses on recommendations on action plans that Apple should apply to tackle the strategic issues mentioned above. Suggested actions include operational ones for immediate actions and strategic ones for a longer period of time in the future so that Apple can still maintain its image in China market.

Besides, these specific activities are also prioritize based on the urgency of each one. Last but not least, the Communication Strategy part ensures that every of Apple activities should maintain its key message and indicates how Apple will communicate its activities to its stakeholders. From the provided recommendations, it is hoped that Apple management can consider implementation for strengthening their position within the tablet and smart-phone market in China.

Analysis

Strategic Issue guarantee scandal and underdeveloped infrastructure. However, China is a significant market for Apple. Apple’s market share in China is continuously growing while decreasing in mature countries. Issues related to human rights and labor protection in China are sensitive and of globally mutual concern. If we do not address these issues properly, we will lose Chinese customers as well as suppliers and sub- contractors. This may also seriously impact the reputation and sales of Apple products worldwide. II. Analyze the Apple situation 1 . Student slave Labor: Chinese students forced to ‘intern’ at phone factory. Hypothesis: HI: Foxhound’s labor shortage for manufacturing phone 5 H2O: Foxing would like to cut cost in manufacturing phone 5.

Information need: (see Automated scanning process) Looking for evidences:

• The labor need of Foxing in manufacturing phones in China is really high, because: Foxing. Assembled. Demand for phone 5 is too high for manufacturing capacity of The phone 5 is the most difficult device that Foxing has ever
• Students labor: 200 students from a university have been forced to do assembly work at Foxing and cheated as a “internship”. Each student was paid 1 ,550 Yuan ($243) per month for a six-day week, 12 hours a day. However, each worker also had to pay much for food and accommodation. Their parents were not informed ND no signed agreements or contracts were in place.
• In DCE 2012, workers in Samsung factory work 12 hour per day. Even when Samsung sent investigators to the factory, nothing changed later. However, Government and Media don’t complain as much as in Apple’s case.
• Labor cost in China is increasing. Most provinces and cities have set up minimum wage levels of more than RMI,OHO. Conclusion: Apple and Foxing had trouble in meeting the demand of market and increasing salary, therefore they hired students for manufacturing.

Research on the chutney industry * Study of salad accompaniment (2007) revealed that Mayonnaise and salad cream compete with pickles, chutney and relish as meal accompaniments and as sandwich ingredients. Ethnic products such as mango chutney, premium products such as organic beetroot and relish that are marketed as essential barbecue components are growing in popularity. There is a good opportunity for salad accompaniments to step into the breach with innovation in flavours that satisfy consumer demand for exotic flavours to brighten up mealtimes. Mintel (2009) has researched into attitudes towards food preparation and found an increase of people that want to try new recipes 7 points between 2005 and 2009 Rising concerns about obesity have put the spotlight on the nation’s diet as never before. Not only confined to adults, obesity rates are set to increase among both boys and girls if current trends continue, with more than one in five girls forecast to be classified as obese by 2010. This has serious implications for their future health. * The English provender company EPC is rolling out a new product range and packaging, based on the theme of natural ingredients. The launch will include seven chutney made using the traditional open-pan cooling method. There will be four new flavours, including Hot Chilli & red pepper chutney and Moroccan spiced chutney and new recipes for three existing flavours including ploughman’s plum chutney and caramelised red onion chutney. ’ The range will retain its trademark square jar but new clear labels will allow consumers to see the natural colour and texture of the products. The use of script typeface will give an artisan feel to the range, while tamper tags will carry serving suggestions and natural ingredients will be stamped around the lid. our research revealed a growing demand for products that taste as good as home-made using natural ingredients and traditional cooking methods’ says marketing director Grahame Wright. We’re filling a gap in the premium mainstream market’ EPC says the ? 31M chutney category has grown by 4% in the past 12 months and is targeting Christmas shoppers. * In July 2007 marketing director Kerr Arthur said that ‘consumer tastes are becoming ever more sophisticated. People are beginning to look beyond classic flavours and are also using the products in different ways such as for sandwich filling, dip and barbecue ingredients. ‘Whit this in mind we decided to extend our range of speciality chutneys and have developed these tasty new recipes to make al fresco dining more memorable this summer’ ( fire-roasted pepper chutney with capers and sweet caramelised onion chutney with orange) * Ribblesdalecheese (2011) have done a small tasting session on their chutneys and had a small questionnaire for their subjects. These are the results that they * 1) How do you rate it out of 10? * 2) Would you change anything? * 3) Would you eat it with cheese? * 4) Would you buy it?

Results of the Men Tasters|  |  |  |  |  | | Rank|  | Type| Total score| Average Score|  | 1| Tomato & Chilli| Spicy| 145|  | 8. 0|  | 2| Sweet Chilli| Hot| 149|  | 7. 9|  | 3| Red onion marmalade| Savoury| 111|  | 7. 8|  | 4| Onion 1|  | Savoury| 79|  | 7. 3|  | 4| Spicy Onion| Spicy| 82|  | 7. 3|  | 4| Spiced Apple| Sweet| 67|  | 7. 3|  | 4| Piccalilli|  | Spicy| 66|  | 7. 3|  | 4| Apple 1|  | Sweet| 55|  | 7. 3|  | 5| Pineapple|  | Sweet/Spicy| 66|  | 6. 8|  | 5| Banana|  | Spicy| 66|  | 6. 8|  | 6| Pear & Apricot| Sweet| 66|  | 6. 7|  | | Apple 2|  | Sweet| 51|  | 6. 1|  | 8| Tomato 2|  | Savoury| 36|  | 6. 0|  | ‘This is quite interesting, because if  you take the top five chutneys, then men prefer savory chutneys, and preferably a little spicy and hot. The sweeter chutneys appear at the lower end of the table. So what do women like, is this any different? ’ Results of the Women Tasters|  |  |  |  |  |  |  |  |  |  |  | Type|  | Total score| Average Score|  | 1| Red onion marmalade|  | Savoury| 120|  | 8|  | 2| Piccalilli|  | Spicy| 92|  | 7. 7|  | 3| Sweet Chilli|  | Hot|  | 61|  | 7. 6|  | | Pear & Apricot|  | Sweet| 99|  | 7. 6|  | 3| Apple 1|  | Sweet| 76|  | 7. 6|  | 4| Pineapple|  | Sweet/Spicy| 90|  | 6. 9|  | 4| Tomato & Chilli|  | Spicy| 83|  | 6. 9|  | 4| Spicy Onion|  | Spicy| 62|  | 6. 9|  | 4| Onion 1|  | Savoury| 55|  | 6. 9|  | 5| Spiced Apple|  | Sweet| 81|  | 6. 8|  | 6| Banana|  | Spicy| 78|  | 6. 5|  | 7| Apple 2|  | Sweet| 82|  | 6. 3|  | 8| Tomato 2|  | Savoury| 41|  | 5. 9|  | ‘Well, looking at this, it would appear that women do have slightly sweeter tooth’s than men,  and that men and women do have different tastes.

Whilst Caramelized Red Onion Chutney and Sweet Chilli Jam appears in both men and women’s top 3, women far prefer Piccalilli to men and men far prefer the spicy Tomato & Chili to women; look at the Pear and Apricot: it is fourth in the women’s preferences and third to bottom in the men’s’ – interesting, hey? And another question to ask…who buys chutney? Men or women? ’ ‘There are many conclusions that can be drawn from this piece of work, but for us, it helps to identify what we are going to make.

This includes Sweet Chilli Jam, Tomato & Chilli, Caramelised Red Onion, Piccalilli, Apple, Pear & Apricot…and we have a couple of new ones up our sleeve! ’ And in case you wondered, here is the combined list of men and women’s results. | What Both Men & Women Tried | Total Score| Average Score| 1| Red onion marmalade|  |  |  | 230. 5 | 7. 9|  | 2| Sweet Chilli|  |  |  | 210| 7. 8|  | 3| Apple 1|  |  |  | 131| 7. 7|  | 4| Tomato & Chilli|  |  |  | 227. 5| 7. 6|  | 5| Piccalilli|  |  |  | 158| 7. 5|  | 5| Pear & Apricot|  |  |  | 165| 7. 5|  | 6| Pineapple|  |  |  | 156| 7. |  | 7| Spicy Onion|  |  |  | 144| 6. 9|  | 7| Banana|  |  |  | 144| 6. 9|  | 8| Spiced Apple|  |  |  | 147. 5| 6. 7|  | 8| Apple 2|  |  |  | 133| 6. 7|  | 9| Onion 1|  |  |  | 134| 6. 4|  | 10| Tomato 2|  |  |  | 77| 5. 9|  | |  |  |  |  |  |  |  | * Pickles, chutneys and relishes are failing to capture the attention of younger shoppers. While for older generations chutneys have been a flavoursome accompaniment to a range of meals, with some creating their own concoctions, younger consumers’ most likely exposure is when they’re dipping their poppadums into a spot of mango chutney. Bainbridge (2007) believes that ‘November and December are the best-selling months for the pickles, chutneys and relishes sector, as shoppers stock up on accompaniments to their turkey leftovers and ham sandwiches. ’ Dorset population research Pring (2011) laid out interesting demographics research on the Dorset area: * Dorset is average sized, small sparse population (159 per sq. km compared with 362 for E&W on average. * Life expectancy in Dorset for both men (80. 3 years) and women (82. 8 years) was higher than the England average.

Largest elderly population of all the shire counties (29% of retirement age 19% for England and Wales) * Population is increasing due to net inward migration * Average house prices are among the highest in the UK outside London * But, Earnings are below national levels * Unemployment is low * But, there is little manufacturing * Approx. 10,500 people work in residential/social care (7% of employees in employment) * More people work in social care than directly in leisure and tourism * Median gross annual pay in Dorset was ? 24,927 (South West ? 24,922, England ? 26,165) * The latest unemployment rate for Dorset is 4. % (South West 6. 0%, England 7. 6%) * Dorset lowest quartile affordability ratio (house price to earnings ratio: a higher ratio means less affordable housing) was 10. 3 (South West 8. 2, England 6. 7). References Pring, A. , 2011. The demographics of Dorset and its effect on End of Life Care [online] [viewed on 13 November 2012]. Available from: http://www. piperhub. com/wp-content/uploads/2012/01/Dorset-Demographics-and-EOLC-Andy-Pring. pdf Bainbridge, J. , 2007. Sector Insight: Pickles, chutneys and relishes – Changing tastes hinder growth [online] [viewed on 10 November 2012].

Available from: http://www. prweek. com/uk/news/771632/Sector-Insight-Pickles-chutneys-relishes—Changing-tasteshinder-growth/? DCMP=ILC-SEARCH Bainbridge, J. , 2008. Sector Insight: Pickles, Chutneys and relishes [online] [viewed on 10 November 2012]. Available from: http://www. prweek. com/uk/features/862382/Sector-Insight-Pickles-Chutneys-relishes/ Ribblesdalecheese’s, 2011. Chutney Tasting Results II. In: Ribblesdalecheese’s Blog[online]. 20 February 2011 [viewed on 5 November 2012]. Available from: http://ribblesdalecheese. wordpress. com/2011/02/20/chutney-tasting-results-ii/ Food Manufacture, 2007.

Chutney offer sophistication [online] [viewed on 5 November 2012]. Available from: http://www. foodmanufacture. co. uk/NPD/Chutneys-offer-sophistication Food Manufacture, 2011. Chutneys ‘go natural’ in time for Christmas market [online] [viewed on 05 November 2011]. Available from: http://www. foodmanufacture. co. uk/Ingredients/Chutneys-go-natural-in-time-for-Christmas-market Mintel, 2007. Salad Accompaniments – UK – August 2007 [online] [viewed 11 November 2012]. Available from: Mintel Mintel, 2009. Media and Food (The) – UK – October 2009 [online] [viewed on 11 November 2012] . Available: from Mintel

Executive Summary:

This business plan focuses upon the idea of a small electrical company with the name of Braze, which distinguishes itself from its competitors upon the basis of providing customers with colourful and designed electronic products. The exteriors of the products are offered in neon colours and a variety of designs and are aimed at attracting fashion-conscious, fun-loving, and generally young consumers who are appreciative of brightly coloured products. The brand will price its products at a slight premium and position the pricing in the midst of Samsung and Sony. The brand will initially open outlets in the cities of London, Birmingham, and Manchester and gradually expand into other international markets once it stabilizes itself and gains a strong customer base.

This business plan conducts a competitor analysis, explains the pricing and marketing strategy of Braze, analyzes its customer profile, and describes its initial start-up costs and payback period. The report concludes with an analysis of the company’s future plans and a summary of all the main points made in the plan.

Introduction:

The electronics industry is highly penetrated and carries a great degree of competition. However, the industry also holds a vast amount of potential and profitability as new products are invented and upgraded from previous models. Consumers are looking for highly innovative, easy-to-use, and trendy products which add to their style, convenience, and are as much automated as possible. The drawback of investing in the electronics industry is that products have a very short lifecycle and quickly become outdated once they are released in the market and it is essential for producers to ensure that they continue to innovate their products as much as possible to ensure customer retention. Another problem of investing in the electronics industry is that it may require significant investment, continuous innovation and efficiency, and a highly interesting unique selling proposition in order for businesses to set themselves apart from their competitors. Moreover, the electronics industry also has a very narrow and competitive pricing strategy as it is a requirement for them to price their products in line with their competitors (Tidd & Bessant, 2011).

This business plan will outline a proposal for a new small electronics and electric company and will begin with an analysis of the existing competition in the market and how this company can set itself apart from its competitors, commence with an analysis of the costs and payback period estimated for the required project, followed by a description of the staffing requirements for the project, and concluding with a description of the future plans for the company and its expansion.

Business Idea/Unique Selling Proposition:

The business idea is to begin a new electrical company which offers a highly innovative and personalized service, and offers their clients technological products which also add to the customer’s home decor and/ or personalized preferences. The company seeks to offer electrical appliances, such as televisions, tablets, laptops, hair styling and grooming appliances, and other electrical appliances, in the home category or the self-care category. The company’s name will be Braze and this name is suggested because it is short and comprehensive and also has a highly jazzy feel to it. The “z” sound at the end is used to give the company’s name a hi-tech sound while the “br” sound at the beginning of the company’s name is used to signify the “brightness” as those are the types of products that the company is offering to its customers. Moreover, the company originates in England and the “br” at the beginning of the company’s name also gives it a “British” feel which helps the company maintain its identity and helps consumers recognize its country-of-origin.

The main business idea is to offer consumers a variety of electrical products and to differentiate itself upon the basis of providing these products in a variety of different colours. For example, the company may offer LED screen televisions, tablets, hair straighteners, and other appliances in a variety of colours such as blue, green, golden, red, purple, and other designs. Designs such as leopard prints, snake prints, zebra prints, and other colours may be offered in the electrical appliances which may appeal to varying consumer segments and attract consumers who wish to match these appliances with their home decor or wish to match them with their personal preferences. This is also the point that the company will use as its unique selling proposition and its point of differentiation from other companies.

The next section of this plan will conduct a comprehensive competitor analysis of the electronics industry and the types of products being offered.

Competitor Analysis:

As mentioned before, the electronics industry is highly saturated with many companies competing to gain market share and customer loyalty. Most of the companies in the industry seek to gain customer loyalty and market share through competing upon the basis of price, quality, and being the first to introduce updated models of previously introduced electrical appliances. The largest companies in the industry include:

Sony·Slightly premium priced

·Differentiates itself on the basis of high quality and goodwill as it is a renowned company

·Produces a variety of products including mobile phones, televisions, laptops and tablets, etc.

(MIT Technology Review, 2013)

Samsung·Moderately priced but in-line with competitors

·Competes with competitors on the basis of price while also ensuring that it maintains quality

·Produces the same variety of products that Sony does

(BusinessInsider, 2013)

Nobel·Low-priced compared to competitors

·Competes with competitors mainly on the basis of price while it is known for having moderate levels of quality

·Produces nearly the same variety of electrical products as its competitors

(MIT Technology Review, 2013)

Pricing Analysis of Competitor Companies:

Samsung Plasma TV 43”- ?399.00 (Amazon, 2014)

Sony Plasma TV 43”– ?433.00 (Amazon, 2014)

Nobel Plasma TV 43”– ?295.00 (Amazon, 2014)

Brand Positioning and Pricing Strategy for Braze:

As Braze is going to be a small electrical company catering to a market niche which prefers colourful and designed electrical products, the company is likely to have higher costs compared to its competitors as they are all well-established brands who have a well-defined customer base. Thus, the company is going to charge its customers a slight premium price from that charged by Nobel and Toshiba as it aims to position itself as a modern, high-quality, fashionable brand which represents convenience, quality, and style at the same time.

The company will begin with approximately three outlets in various parts of England, especially in the larger cities such as London, Birmingham, and Manchester. The outlets will be designed differently from traditional electronics shops which usually have plain white interiors or use light colours in their interiors. The shops will have colours, such as pink, green, golden, purple, and other colours, which would add a highly bright and fun-loving image to the shops. The interiors of the outlets will be lit with spotlights and some neon lights, which will extenuate the designs of each of the electronic products.

The staff in the shops will be trained to provide customers with a highly personalized service and keep records of customer preferences and will also be encouraged to take customer suggestions regarding popular product designs that customers may prefer in the products. The staff will be wearing uniforms of bright colours and will be encouraged to display salesmanship which exemplifies the company’s tagline of “We Wish to Brighten Your Day”. The interiors of the outlets will be luxuriously furnished with easy chairs and magazines which show the company’s range of products.

The company is aiming to exemplify a differentiated image which also promotes an aura of luxury, style, fashion-consciousness, and a high level of personalization. Thus, the company will be charging a slightly higher price than Nobel but a slightly lower price than Sony as the company is aiming to break into a highly penetrated and competitive market. The company’s price list may be as follows:

Plasma Television 43”- ?400.00

Tablet-?350.00

Microwave Ovens-?100.00

Set-up Costs and Payback Period:

In its initial stages, the company will need a high amount of investment to develop its products and set up its three outlets. The company will need investment for production costs and then investment for purchasing furniture and other essentials for its three outlets. The company would require approximately ?100,000 pounds to develop and produce a small range of designed and coloured products. The company is advised to rent a small factory area in the suburbs of London or Birmingham to facilitate its production process and also initially rent its three outlets in London, Birmingham, and Manchester as there may be requirements of switching locations from time to time. The company is advised to rent these outlets within malls such as BrentCross in London or Trafford Centre in Manchester in order to help the brand gain maximum exposure. Thus, the company’s initial costs would be estimated to amount to the following amounts:

Product Development Costs: ?100,000

Factory Rent: ?1500 p.m.

Machinery Costs: ?100,000

Outlet Rent in London: ?2000 p.m. (Gumtree, 2014)

Outlet Rent in Manchester: ?1850 p.m. (Gumtree, 2014)

Outlet Rent in Birmingham: ?1900 p.m. (Gumtree, 2014)

During the company’s initial stages, the company is likely to have a small range of customers as it is basically catering to a market niche. Thus, we can assume that the company is likely to sell approximately 50 products in each of its outlets per month during its first year of operations. As the company expands its product range and focuses upon advertising and promotional activities, it may be able to expand its customer base and increase its sales. However, this process is likely to take 2-3 years before the brand can consider itself to be stable in the electronic goods niche market. The firm is likely to recover its investment in approximately 5 years time but is not likely to recover its initial investment before this time period as it will be struggling to expand its customer base.

Customer Profile and Marketing Strategy:

The company will initially be catering to customers of both genders within the approximate age range of 15-50 who would appreciate the brightly coloured electrical appliances that the company offers and also have the ability to pay for the slightly premium priced products. The company’s customers are also likely to be fashion-conscious, fun-loving, energetic, and having an appreciation for colours and designs. The brand is likely to appeal to women more than men as women would be more likely to appreciate the aesthetic appeal of the electronic products offered than men would.

Hence, the company’s initial marketing and advertising strategy will be based on demonstrations and displays within the popular malls of England and through pamphlets dispersed throughout the three cities in the homes of potential consumers. Advertisements will also be made on billboards, radio, and within magazines. The company will initially be located in only three cities of England, thus the company may not initially depend upon television advertisements but may also pursue this medium when it expands its business to other areas as well.

Staffing Arrangements and Position of Owner:

In its initial stages, the company will staff a small number of people to be able to sufficiently cater to the various functions that the business requires to be performed. The company’s factory may employ 3 electrical engineers who will aid in the research and development of the products and guide factory operations. The company will also employ two graphic designers who will create the designs printed upon the exteriors of the products. The factory will be run by approximately 20 workers who will produce the products required for the three outlets. Supervision will be required for the workers which means that two experienced managers will also be hired in order to supervise operations.

The company’s logistics network will be set up via trucks which will transport the finished products to the three outlets of Braze. The company will initially rent three trucks and hire four drivers to transport the products to the required outlets. The extra driver will be employed to cater to emergency situations and the drivers will be required to work on a rotational basis in order to ensure reliability in the delivery and transport process.

Braze’s outlets will require three salespeople each and one manager for each outlet initially to cater to inventory management, sales, and outlet maintenance. The skills required for the salespeople will include a high level of persuasive ability, excellent communication and management skills, high levels of creativity in order to help in putting products on display and presenting them in front of customers in a unique manner. Moreover, the salespeople will be required to have a pleasant personality and will preferably have degrees in communication and/or marketing.

The managers employed in the outlets will be required to have experience amounting to approximately 3-5 years and have degrees in management, leadership, marketing, or other business disciplines. The owner of the business, being an electrical engineer, will aid the production process with fresh ideas and will work in collaboration with the other employed electrical engineers to create innovative products and attempt to re-design products frequently in order to remain in coordination with customer demands. The owner will also facilitate operations by supervising the outlets on a rotational basis and ensuring that the brand is being promoted appropriately and keeping any potential problems in check.

The company will also additionally need to hire an accountant and make use of a cleaning service once a week in order to keep its outlets clean and presentable for customers.

Company’s Future Plans:

The company’s future plans will consist of expanding the business within other areas of the United Kingdom. The company will initially aim to expand its outlets within Wales and Scotland and will also open outlets in Edinburgh, Glasgow, Sheffield, and other areas. The company will also aim to increase its research and development investment and try to make a breakthrough invention in the market and be the pioneer introducer of a new product. This will eventually enable the company to grow in size and capture a larger percentage of the electronics market.

Further, the firm will also plan to purchase its outlets and factory area in order to reduce its monthly costs and to increase the value of its fixed assets. The company may choose to raise finance for this expansion through bank loans and/or by adding partners to the business and converting it into a partnership or a private limited company.

Within about ten years time the company may aim to go international and may expand into the areas of Ireland and Europe. The company’s initial targets may be France, Belgium, Netherlands, and Germany before it attempts to expand into other markets of Europe. The company will then aim to target the markets of the USA and Canada followed by the markets of Asia. Braze will also have to expand its staff and employ more experienced and competent managers who can handle international operations.

Conclusion:

Braze is a small British electrical company which aims to differentiate itself from its competitors on the basis of providing them with personalized, colourfully designed electronic products which are likely to appeal to their aesthetic sense and are likely to attract fun-loving style conscious customers who appreciate brightly coloured products. The company initially aims to enter the market with a small factory area located in the suburbs of London or Birmingham and three outlets ideally situated in mall areas of London, Birmingham, and Manchester.

Braze aims to cater to the tastes of fashion-conscious, young and middle-aged customers who would like electrical appliances which can add a sense of style to their home decoration or their accessories because of their unique colours and designs. The company aims to initially rent all of its premises and employ a small number of employees. The company’s initial marketing strategy will be based upon promoting the products via demonstrations and through pamphlets distributed in the homes of potential customers, radio, billboards, and magazines. Later on, once the company stabilizes itself, it will aim to expand into other markets of Europe, USA and Canada, and then later on pursue the markets of Asia.

References

Amazon (2014) Nobel Televisions. [online] Accessed on January 4, 2014 Available at: http://www.amazon.co.uk/Televisions-Sound-Vision-Projectors/b?ie=UTF8&node=560864

Amazon (2014) Samsung Televisions. [online] Accessed on: January 5, 2014 Available at: http://www.amazon.com/Samsung-UN40EH5300-40-Inch-1080p-Black/dp/B0074FGR74

Amazon (2014) Sony Televisions. [online] Accessed on: January 5, 2014 Available at: http://www.amazon.com/Sony-SGPT111US-Wi-Fi-Tablet-16GB/dp/B005FXYJZY

Business Insider (2014) . [online] Accessed on January 3, 2014 Available at: http://www.businessinsider.com/samsung-corporate-strategy-2013-3

Gumtree (2014) Birmingham Rental Rates. [online] Accessed on January 4, 2014 Available at: http://www.gumtree.com/

Gumtree (2014) London Rental Rates. [online] Accessed on January 3, 2014 Available at: http://www.gumtree.com/

Gumtree (2014) Manchester Rental Rates. [online] Accessed on January 4, 2014 Available at: http://www.gumtree.com/

MIT Technology Review (2013) Sony. [online] Accessed on January 4, 2014 Available at: http://www.technologyreview.com/article/416848/sony/

Tidd, J., & Bessant, J. (2011). Managing innovation: integrating technological, market and organizational change. Wiley. com.

The company/brand selected for the research proposal project Is Wall-Mart. INTRODUCTION Wall-Mart Stores, Inc. , branded as Wall-Mart, Is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. Headquartered In Bonneville, Arkansas, the company was founded by Sam Walton in 1962 and incorporated on October 31, 1969. It has over 11,000 stores in 27 countries, under a total 55 different names. It operates in India as Best Price.

The company is the world’s largest public corporation, the biggest private employer in the oral with over two million employees and the largest retailer in the world. Wall-Mart is a family-owned business, as the company Is controlled by the Walton family, who own over 50 percent of Wall-Mart through their holding company, Walton Enterprises. It is also one of the world’s most valuable companies and is also the largest grocery retailer in the US. The partnership between Birth Enterprises and Wall-Mart has been dissolved.

Now Walter India Private Limited is a wholly owned subsidiary of Wall-Mart Stores Inc. Walter India owns and operates 20 Best Price Modern Wholesale stores in 8 states across India. Division of wall-mart: Neighborhood Markets (groceries) Cam’s Club (membership) Discount stores (FMC & apparels) Wall-Mart superstructures (groceries) THE PROBLEMS FACED BY WALL-MART Late entry Overlook competitors Destroy small businesses Joint venture & Nationalism Culture difference Suppliers Government Regulations The problem which is looked at In this research project is government regulation.

The statement of the problem- The problem which Is looked at In this research project Is the government for retail global companies makes it difficult to make any development in India so Wall-Mart wants to launch e-commerce. Objective of the study- it is to see how Wall-Mart will make a difference in the economy by online purchases. To see how the Indian market responds to e-commerce and will it help in increasing sales of the company. What will India do for Wall-Mart?

Wall-Mart needs India, and it needs success in India. At the same moment as the Joint venture in India was announced this weekend, Wall-Mart announced something stunning about its November financial performance. In the US, in stores that have been open at least a year, sales actually fell compared to last year. Same-store US sales fell Just 0. 1% – the decline comes to about $mm. It wouldn’t have been a decline at all if each US store had sold Just $1 ,250 a week in additional merchandise.

The performance is chilling because it’s only the second time in 25 years that Wall- Mart’s same-store sales haven’t grown. The truth is that while the US still accounts for more than 70% of Wall-Mart’s sales, the country is full up with Wall-Marts: 53% of Americans already live within five miles of a Wall-Mart, and 90% live within 15 miles. If an American wants to shop at Wall-Mart, he or she already is. So if Wall-Mart is going to continue to grow, it must tap new and receptive markets like India. What will Wall- Mart do to India?

The mood about Wall-Mart in the United States is conflicted, at best. For two years, there has been a noisy national debate about Wall-Mart’s impact – low prices, yes, but also low wages, poor working conditions, small merchants swept away, manufacturers squeezed. In the recent Congressional elections, prominent Democrat politicians routinely attacked Wall-Mart, despite the fact that millions of Democrat voters shop there every week. In developing nations, in contrast, the arrival of Wall- Mart stores is still greeted with gratitude.

But will Wall-Mart bring with it to India exactly the kind of business practices that cause resistance to it in the US? Indian’s retail market is likely to be transformed over the next 10 years, and Wall-Mart is determined to be part of that. When a superstore opens that can do $1 m or $mm in business a week, it’s going to vacuum sales away from small merchants. Yes, Wall- Marts, and all hyper marts, create hundreds of Jobs. But there is a big difference between being a shopkeeper, and working in a store for mega-corporation.

But at this Indian’s elected officials want to understand what happens when Wall-Mart arrives, hey need only consult local officials in China or Mexico or Missouri. And if Indian officials want to both usher in a new consumer era, and preserve some of the traditional aspects of Indian commerce, they need to act now – with zoning laws, with rules on the size of stores and the hours they may be open – before the hyper marts roll in. Once they dot the landscape, as we’ve discovered in the US, it’s too late to do anything but mourn the traditional ways of shopping.

SECONDARY RESEARCH FINDINGS Wall-Mart will open 50 cash-and carry-stores in the country in the next 4-5 years, a eve that will strengthen the presence of the retail major in the wholesale segment. The announcement comes a day after the Bops manifesto declared that the party will not allow foreign direct investment (FAD) in the multi-brand retail segment if it forms the next government. The BGP, in its manifesto unveiled Monday, said that it is not in favor of FAD in the multi-brand retail sector, though it was open to FAD in all other sectors if it led to Job and asset creation.

However, the company has refrained from entering the sector, citing stringent conditions related to mandatory 30 per cent local rouging. Given that 100 per cent FAD is allowed in the cash and carry segment, this sector presents an opportunity to the company to make in-roads in the vast Indian market. In a statement, Walter also said that it will launch business-to-business (BIB) e-commerce platform for members of its cash and carry ‘Best Price Modern Wholesale Stores’. “Walter is committed to India and we are excited about our growth plans.

We will continue to focus on the cash and carry format as we are very happy with the way it has shaped up in the last few years. The format is also poised o grow in India and we would like to serve the growing customer base by opening 50 new cash and carry stores over the next four-five years and extend the e-commerce platform to our cash and carry members with a virtual shopping opportunity,” Scott Price, president and CEO, Walter Asia, said, in the statement. The retailer currently has 20 Best Price Modern Wholesale Stores in the country.

The first store opened in Marital in May 2009. Currently, 100 per cent FAD is allowed in single brand retail, and 51 per cent is allowed in the multi-brand retail sector. Also, 100 per cent FAD is allowed in BIB e-commerce, but not in BBC e-commerce. Price also said that the company will take “a number of important steps to strengthen compliance so that we do the right thing everyday’. “We are evaluating and reinforcing procedures and programs relating to all compliance areas… And responsible sourcing among others,” Price added.

PEST ANALYSIS Strong opposition to FAD in Indian’s retail sector Taxation police – VAT Low access to banking facilities Economic analysis: GAP growth Foreign investments Money supply Inflation Social analysis: Corporate social responsibility Environmental safety Ease of shopping Technological analysis: Retail media network ERP system Online shopping CRM system CONSUMER ANALYSIS What will Wall-Mart do for Indian consumers? Wall-Mart will be a sensation in India – as it has been in China and in Mexico.

At the moment, there is Just a single hyper mart in the whole country, in Iambi. Indian’s rapidly growing middle class has more money to spend than any previous generation – but no place to spend it. Just 7% of retail spending in the country is in what westerners would consider “organized” retail stores. Even in China, that number is 20%. So Wall-Mart’s acres of low-cost merchandise from around the world, gathered under a single roof, will be like a carnival for a slice of Indian consumers.

Wall-Mart store openings in developing nations are frequently huge events – tens of thousands of Chinese show up when new stores open there – and with good reason. People everywhere are grateful to have the products of the world delivered to their doorstep at affordable prices. Competitors are competitors within an industry. Competition in the industry can be weak with few competitors that don’t compete very aggressively or it can be intense tit many competitors fighting in a cut-throat environment.

Key competitors of Walter in the retail sectors are: VA Barilla Group- It has a strong presence in apparel retail and owns renowned brands like Allen Solely, Louis Phillips, Trouser Town, Van Houses and Peter England. The company has started to expand aggressively to compete with other players. Trend- It is subsidiary of the Data group, operates lifestyle retail chain, book and music chain consumer electronics chain etc. Landmark Group K Rajah Crop Group Reliance Pantaloon Others stores are: Big bazaar Spencer Careful & metro are the main wholesale cash-and-carry brands.

The questions may also be concerned with the respondents’ personal background, factual knowledge, attitudes or opinions, for example, in the case of the assignment is to do with vacations and the Information related to It. Why was It used? Firstly, one of the mall reasons the questionnaire Is being used as part of this Assignment is that it really gives the student an opportunity to get out and do some real practical field research.

It gives the student a sense freedom to ask who they want and where they want in order to obtain the data. It is also a lot of students’ first time to do something Like this, so the skill set of the class will be tested and Improved n greatly with the completion of this task. It will help with confidence, clarity in speaking and accuracy of the execution of both the written questionnaire but also with the analysis and conclusion of results. What are the mall objectives?

The mall goal was to find out where people went In Ireland or abroad on Vacations or citations and also to investigate other very interesting and appropriate variables such as, How many times do you travel abroad or within Ireland whether to go abroad or stay in Ireland, Your preferred mode of transport whilst taking a holiday, What would your average spend be whilst talking a holiday and the ever topical and spoke about element for Irish people, weather. These are all very relevant questions which were asked in such a way that only accurate questions could be received back from respondents.

The main objectives and intended outcomes from the questionnaire included, To obtain a partial lifestyle profile of people who currently holiday, with a particular emphasis on the financial dimension and To determine holidaying habits and patterns of these customers. Other objectives and goals included pre testing the questionnaire before it was given to the public. This was a vital tool in aiding the clarity and effectiveness of the questions being asked as It made sure that questions could be clearly understood and had adequate range for response.

Also, Ambiguity was avoided at all times possible by providing answers such as 3-4 times a year, multiple choice questions and also providing a scale type answer on questions 5 and 14 which allowed the respondent the ease of not over thinking the response as they were Just required to circle a box. Danger and Fleming http://www. Recompilations. Com/Luzon/questionnaires. HTML (f), groups must discuss the KEY findings from their 20/25 surveys The key findings of the questionnaire will now be examined and analyses.

The main objectives, as 1 OFF reached only by the clear and easy to follow questionnaire which the team designed and this allowed for very clear and efficient reading of the results for analysis. The key findings made by the group included, In question one, respondents were asked ‘Do you usually spend your holidays in Ireland or abroad, Of the 20 people asked, 8 said abroad, 2 said in Ireland and 10 aid both showing a major majority to those who travel outside the country. This is illustrated in the graph The next key finding the group found was in question 2,the average length of stay whilst taking a holiday.

The findings showed that of the 20 people surveyed, 16 said they stay 5 days or more with 4 saying 3-4 days in total. This shows that people generally prefer 5 plus days away which for the average working person would be accurate as people generally tend to book 2 weeks off whether it be in summertime or other. Question 5 examined a table of questions which looked at how strongly people disagreed or agreed with certain statements. The one statement that stood out the most was Weather always plays a role when I am booking a holiday.

Of the 20 people examined, interestingly,4 disagreed, 6 were neutral, 6 agreed and 4 strongly agreed. This shows that half the people see weather as a major consideration when deciding to go on holidays and 6 neither agree nor disagree which could mean they just want to get away and don’t mind the weather. Also in this section of statements was the statement, ‘l want to go on a holiday sometime soon’. The results to this were say to predict didn’t disappoint. 11 of the 20 asked said they strongly agree and 9 said they agree with going away soon.

This could possibly have to do with the time of year which we did the survey, the evenings are getting darker, nights getting colder which could lead people to think of sunny beaches and sun pushing them to want to go on holiday sometime soon. Question 8 looked at what of transport people were more likely to take. This was asked in a scale format with 1 being you’re most preferred and 6 being least preferred. The unanimous verdict on this question was hat Airplane was the preferred choice of travel, Train coming second and Boat coming third.

Air travel today is extremely accessible and affordable for people in all walks of life. Ireland now has 5 major international airports, all of which are nodal points and can be reached easily and efficiently by other modes of transport such as car, bus or train. Question 9 looked at what countries the respondent had been to before from a list of countries. Of the 20 people examined, 20 had been to Spain. This really makes correlates with the other questions as people had already said in revises questions that weather plays a key role and also that the majority of them usually take their holidays abroad. 0 people had been to Great Britain which also shows evidence of the accessibility nowadays to get to Britain from Ireland by air or by boat. One of the main objectives of the questionnaire was examined in question 10. This looked at the financial dimension of people when going on holiday at home or abroad. Of the 20 asked, 8 said their average spend in Euro would be 401-600 with 4 people saying each of the other 3 categories. The Euro allows people travel easily to ND from the continent with thousands of cash points and no need to change money over whilst traveling in the continent.

It also shows that people do have the money to Question 11 gave respondents the options of ticking a box to what they look for whilst on holiday. Of the 20 examined, 12 said culture, 12 said food 12 said the beach,14 said leisure, 17 said to relax and 10 said adventure. This shows people really want to just relax, eat and be near a beach which is true in a lot of cases and shows that people do need to get away for a week or two in order to unwind and relax from their acetic lives. This is illustrated in the graph below, Question 13 gave statements and the respondents had to circle yes or no to each statement.

The 3 main observations from this part was that of the 20 people asked, 20 said yes to ‘l like to travel to different countries, 16 said they ‘like learning about different cultures’ with 4 saying they don’t like it and interestingly, when given the statement of ‘l like going places where they speak English’, 5 respondents said yes with 15 saying no. This reiterates question 11 when 12 people said they look for ultra on holiday and here one can see that 15 of the 20 don’t want to go somewhere where they speak English.

This shows the multi cultural which people are now adopting. This can be seen by the vast and diverse affordable destinations made available by airlines and travel providers which are now very accessible such as, Dublin, Hong Kong or even Africa. Another key finding of the questionnaire was observed in question 14 where respondents were given a table with factors of importance to them when taking a holiday, here -2 was the lowest concern and +2 as the highest concern.

The Weather was the winner here with 14 people giving it a +1 and 4 giving it a +2, which shows people see weather as a major factor when considering and deciding going on holiday abroad or at home. As seen in the first assignment, the weather plays a huge role in people’s lives and especially in Ireland where it is usually wet and windy. One needs vitamin D and sunlight to survive and this could be a reason for people wanting to go on vacations rather than citations and thus opting to go abroad where there in almost certainty of sun.

Another key finding was that of the finances and how highly they rate it in their list of importance. Interestingly 6 people gave it a O, 9 gave it a +1 and 3 gave it a +3. This shows people are not overly concerned by finances and actually a lot of places people go on holidays abroad can be relatively cheaper than here at home. The flights are cheap, accommodation is cheap and the cost of living in aloft places like Spain is cheaper which Is again reiterated in question 9 where the 20 people had been to Spain. Of the 20 people examined, 9 were male and 11 were female.