market research on supermarket proposition

ABDOU MEITE /Q09821695
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Student work starts here…
Contents
0.2 Research Proposal................................................................................................................... 2
0.2.1 Background-..................................................................................................................... 2
0.2.2 Definition of the problem..................................................................................................3
0.2.3 Aims and objectives:.........................................................................................................4
0.2.4Scope of the study............................................................................................................. 4
0.2.5 Research approach and methodology................................................................................ 5
0.2.5 Secondary research ..........................................................................................................5
0.2.6 Primary research .............................................................................................................. 7
0.2.6A Focus Groups ................................................................................................................. 7
0.2.6B Online Surveys.............................................................................................................. 11
0.1 Secondary research............................................................................................................... 14
0.1.1Prices vs brands............................................................................................................ 15
0.1.2 Customer loyalty and influences...................................................................................... 16
0.1.3 Supermarket Private brands vs National brands.............................................................. 17
0.1.4 Secondary research conclusion........................................................................................ 18
0.3Design of primary data collection tools.................................................................................... 19
0.4 Report on pilot...................................................................................................................... 21
0.5 Conclusions and recommendations........................................................................................ 29
Reflection................................................................................................................................... 30

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0.2 ResearchProposal
0.2.1 Background-
Asdaaimsto be the bestweeklyshopretailerofferinglowerpricesthanitscompetitorswhilst
maintainingitsintegrityinprovidinghighqualityproductstoitscustomers. Inorderto achieve this,
Asdainvestsinitsprice strategy – the budgetforthe next5 yearsis to invest£1billioninitsprice
plan. In thisway,Asdaundercutsitscompetitors. Asdaseesitspurpose asto“save everyone
money,everyday”(Asda,2014 ) and to become Britain’smosttrustedretailer(asda,2014)
Supermarketssectors
Retail supermarketsinthe UKcontinue tobe a competitive place due toexternal factorssuchasthe
recession,inflation,interestrates,jobsecurityandlackof increasestosalary. These have all
affectedcustomerdecisionsinpurchasingatsupermarkets.WARC states,“Promotional activityisat
an all-time high”withretailersundercuttingpricestoencourage customerstoshopand the price
wars can be seeninthe advertising.Asstated,the supermarketsectorisverycompetitiveand2014
saw the marketshare slightlydecline fromthe topmarketleaders.Tesco,Sainsbury,Asdasaw a
small decrease inprofitandsharesdue tothe marketconditions.The noticeabledecreaseinthe top
foursupermarketswasMorrison’swithadecline insales due toitslate arrival of e-commercial
storesonline,itsmarketingpositioningandprice comparisonswithotherUKretailers. Morrison’s
plansto dedicate over£1 billiontowardsitsprice strategy issettoincrease salesoverthe next
three years.
Aldi,Lidl andWaitrose have seensignificantincreasesinmarketshare points,gainedfromtop
supermarketsaccordingtoKantarworldpanel (2014), whichstates,“Overthe pastthree years
Waitrose,Aldi andLidl have takenacombined3.5 share pointsfrom the competitionwhichequates
to £4.4 billionperyear”. Aldi andLidl are categorisedas‘discounters’andare acquiringmarket
sharesfromthe topsupermarketsbecause theyhave gainedtrustfromthe middle classsegment,
knownas,“Maidstone Mums”. Before the recession,thissegmentonce consideredLidl andAldi a
‘nightmare’andnotsociallyacceptable due toitsstigmaof cheap,poorqualitygoods. "Itisthislow-
pricingstrategythatcontinuestodraw new middle-classcustomers –the Maidstone Mums– into
our storesforthe firsttime"(The guardian,2014) Aldi'ssalesare currentlyrisingbymore than30% a
yearand Lidl'sby nearly16%, accordingto the latestindustrydata (The guardian,2014)
Thisis furtherconfirmedbyRacplus(2014),who reports,“Sainsbury'sfinance bosssaysdiscounters
coulddouble marketshare by2020”. Therefore thishighlightsdiscountersare becomingasocial
‘norm’withtheirlowpriceswhichaffectAsda’smarketshare,forcingthemtocompete inthe
pricingwar to gaincustomers.
The researchisgoingto focusprimaryon how Asdacan buildvalue propositionforthe student
marketalignwithcompetingwithprices.The purpose istobuildstudentmarketrelationshipby
communicatingthe messagesof interesttostudent.Thiswill give the marketingstrategyadifferent
dimensionandofferemotional attachmenttodifferentiatewithcompetitorsprices.

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0.2.2 Definition of the problem
The supermarketsector is very competitive asthere has beena decline inmarket share of the top
four supermarkets. This has happenedas discounters’storeslike Lidi and Aldi are gaining the
confidence ofthe middlesclasssocial group as they look to save moneyin the hard economy. This
has caused the market share shiftto discounters because of the low pricesand consumers wanting
to save.
The researchis based on targeting and positioningstudentsefficientlyandeffectivelytoraise and
create Asda propositionofferingto differentiate fromcompetitorsforthe studentmarket.
Understandingstudentpurchasing behaviourand influenceswill be the basis for creating tailored
experiencesandprivate label products which appeal to the studentmarket.
The researchis important to Asda because understandingtarget market needsand wants will
improve customer retention. Buildingstudentvalue propositionand engagementofemotional
advertisingwill increase the chances ofstudents’interaction and purchasing with Asda and
differentiate fromcompetitors.
Asda will benefitfromthe research as it will gain informationand understandingofstudent
perceptiontowards shopping.This will helpAsda improve student acquisitionsand retentionto
increase continuouspurchasing and build customerrelationships. Through understandingstudent
interestand motivation inpurchasing will enable Asda to build a brand cateringfor students,
focusedon emotional marketing.
The researchis important as there is no informationon student purchasinginterestsand
behaviourto enable keydecisionsto be made in providingservicesand products that target
students.

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0.2.3 Aims and objectives:
Objective have been broken into three section, all sections together will conclude with
recommendations to Asda understanding of the student market interest and motivation
towards shopping experiences
1. Students – segmentation; decision making; needs
i) Understanding the student segmentation groups through gathering
demographics and behaviour traits to ensure targeting of students groups is
effective
ii) Understanding student psychological decision-making and main
influences.(need/wants, interest and motivation)
iii) Understanding student perception of Asda supermarket positioning in
comparison with other local supermarkets,( main proposition)
iv) To understand university student’s purchasing behaviour and to examine the
factors which students take into consideration when purchasing a product from
their local supermarket
2. Communication
i) Effectiveness advertising and promotions
ii) Effective marketing communicational channels
iii) Effective and interactional advertising channels evaluation
3. Price sensitivity
i) Understanding effective pricing strategy and the perception towards the quality
of the products
ii) Determine if students are brand-loyal or driven by price
0.2.4Scope of the study
 Scope of studyisnational primarilyindominantuniversitycities

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0.2.5 Research approach and methodology
The researchapproach isto understandstudentpurchasinginfluencesandexperiencesduring
shoppingincontrastwithstudentlifestyle needstoimprove Asdapropositionoffering.The
methodologyhasbeendevisedtoanalyse specificvariablesinordertounderstandstudents’market
perceptionstowardsshoppingandcurrentmarkettrendssuchas Private label brands.
The researchdesignwill focusontwodesignstructuresfromthe objectives:
 Exploratorymethodswillbe appliedtounderstandvaluable “proposition”tobe able to
create suitable servicesandproductsforthe studentmarket.Thismethodprovidesinsight
and can highlightvariablesof concernwhichwere overlookedornotprioritised. Thisis
knownas ‘datamining’,whichoffersthe chance togainqualityinformation. Further
explorationisthenpossible throughdetailedquantitative analysis,the mainreasonbeingto
understandattitudes,behaviourandinfluencestowardssupermarketshopping.
 A ‘DescriptiveCross-Sectional Analysis’will be appliedtounderstandeffective
“communication”and“pricing”strategiesusingquantitative onlinesurveys.
0.2.5 Secondary research
Secondaryresearchwill be usedtogaininsightintostudentspurchasingbehaviourtowardsgrocery
shoppingandto establishcurrenttrendsinthe supermarketsector. Thiswill formanunderstanding
of knowledge gapstodevelopprimaryresearchapproachestothe problemtoenable preciseand
accurate informationthatenableskeydecisionmaking.
Secondaryresearchwill be brokendownintofoursections.Eachsectionprovidesinformationon
keyvariablesof studentpurchasingbehaviour,markettrendsandgeneral censusestowards
shopping. Thiswill be the foundationindevelopingprimaryresearchapproaches.
Sectionone (TargetGroupIndex)
Thissectionwill understandstudentbehaviourtowardsshoppingthroughthe use of the TGI
database inorderto establishthe following:
1. Students’shoppingpatterneachmonth
2. Studentshoppingpreference - in-store oronline
3. Amountof moneyspentongroceries
4. Main decidingfactorsinshopping
5. Most attractive supermarketforstudents
Thiswill outline students’ shoppingbehaviourand influences.
Sectiontwo
Understandingkeyinfluentialfactorsinpurchasing
 Understandingkeydecision-makingfactorsforcustomers
 To understandthe extentof eachfactorin influencingpurchasingbehaviour

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Gain insightintoinfluentialfactorswhichcustomerstake intoconsiderationwhenpurchasingnew
products
Sectionthree
Understandingof pricingandbrandloyaltywithinthe currenteconomicclimate
 Keyexternal factorswhichaffectconsumerpurchasingbehaviour
 Understandconsumerdeciding-factorsbetweenbrands,ethical products, fashionable
brandsand pricing
 Understandingthe distinctionbetween brandloyalty consumersandpricingincentive-
drivenconsumers
In orderto establishwhichvariable ismostimportantinpurchasingdecisionmaking
Sectionfour
Understandingthe effectof external factorsandpurchasingtrends,establishthe markettrendsin
private label brandsvsnational brands
 Understandingmarkettrendswithinthe supermarketsector
 Establishprivate brandsandnational brandsperformance forecasting
 Establishthe importance of private brandlabels
Gain insighttowardssupermarketsectorperformanceonprivate brandsvsnational brandstogain
understandingof customerattitudestowardsnationalandprivate brands

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0.2.6 Primary research
Qualitative investigation
Objectives:understandingstudents’motivationinpurchasing,interestandneedstobuild
supermarketvalue proposition
0.2.6A Focus Groups
Focusgroups will provideinsightsintobuildingpropositionthattargetsthe studentmarket. Focus
groupswill,therefore,take a‘Conative Model Approach’,asemi -structuredformattoidentity
variableswhichstudentstake intoconsiderationwhenmakingpurchasingdecisions. Thisapproach
enablesthe creationof anhypothesis whichcanlaterbe validatedbyquantitativedatawithabigger
sample size.
Focusgroups provide anopportunitytogaininsightintoattitudesandmotivations,establishingkey
variablesinofferingbrandproposition. Thisexploratoryapproachisdevisedasanopendiscussion
for studentstoexpressvaluable perceptionsandexplore keyaspectsthatinfluence purchasing. This
will leadtodefiningkeyemotionsthatsupportsthe developmentof marketingmaterial.
Understandingneedsandwantswill create the basesforeffective marketingthattargetsstudents.
Sampling
Target market
Demographics Target market
Age 18-25
Gender Malesand females
Educational Undergraduates
Occupations Full time students
SamplingFrame
 Universityintranetdatabasesthroughwhichthe targetpopulationcouldbe reached,with
permissiontoaccess
 Facebook(thiscouldbe done throughFacebookdemographical settinginadvertisingwhich
showsstated occupationas ‘currentuniversitystudents’,samplingerrorwillcome from
past studentswhomayhave notupdatedstatusto graduatesor otheroccupation)
SamplingTechniques
 Methodsto be usedare “probability”samplingasthe targetpopulationcharacteristicswill
be measuredthroughpre-screeningtoincrease precisionof targetpopulation.Thiswill
eliminaterandomsamplingmakingthe samplingpreciseandrelevanttothe problem
definitiontargetgroup.
 Stratifiedsamplingwill be usedtoincrease the chancesof precisioninthe targetpopulation.
Groups (strata) will be definedthroughdemographical characteristics,supermarket
shoppingexperiences andeducational year

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Determiningthe Sample Size
 The sample size will consistof 30 Universitystudents
 Each focus groupwill consistof 5 students,thiswill giveachance for everystudentto
participate andexpressopinionsonthe matterinhand.Thiswill avoidthe chancesof
intimidationorshynesstoindividualsandhelpimprovechemistry,thusimprovingthe
qualityof informationgiven
 smallersample groupgainprecisioninunderstandingthe targetmarketneedsandwantsto
surface importantvariables
Validate the Sample
The criteriaof the targetpopulationwill be screenedthroughapre-questionnaire outlining
the target populationinordertosolve the problemdefinitionrequirement:
Age 18-25
Shoppingpattern  Has shoppedata local
supermarket
 Planningtoshopat local
supermarket
 Mainlyshopsat supermarkets

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Focus GroupContent Analysis–
Advantages Disadvantages
 Generates hypothesisandidentify
variables
 Collectconsumerattitudes,motivesand
behaviour
 Target populationviewpoints
 Understand targetpopulation language
 Reveal targetpopulationissues
 Reportissues,understandneedsand
wants
 Create innovationtomarketingdecision
 Wide range of information
 Biasinterpretation
 Lacks chemistrybetweenparticipants
 Organisationandarrangingroomsand
timesmaybe a problem
 Shyness,conflictsandintimidation may
reduce motivationtoparticipate
 Videorecordingmaymake participants
uncomfortable,invade privacy
Focus group variables
 Moderatorsneedto be charismaticandconfidentstogetthe most outof the participants,
moderatorsare importantto keepthe focusgroupconversationflowing andexploringthe
discussioninfurtherdetailwithprobingmethodstoobtainsuitableinformationof the
objective.
 Transcriptand videorecordingneedstobe informedtoparticipantstoevade miss-
communicationof privacylaws.These will laterplayapart inobservationof facial
expressionandbodylanguage forfurtherunderstanding,alsousedfordataanalysis
gatheringtoconclude.
 Comfortable environmentisimportanttoparticipants,asthe environmentisfriendly,warm
and relax will effectparticipateswarmthtofeel safe andable tobe confidentindiscussing
information

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Data Analysis
 Reflectonownvaluesandattitudes,factorswhichmaybe biastowardsthe researcher
observationmainlytocultural value differences,understandbiasnessfromthe researcheris
importantfordata analysisof qualitativeresearch.(unconsciousvalues)
Data Assembly
Gatheringdata
 Transcripts
 Video
 Moderator notes,observationnotes
Data Reduction
 Organisingandstructuringdata
 Codingdata , breakingdownthe dataintosubgroups,importance andrelevance
“codingis a processthat enablesthe researchertoidentifywhattheysee asmeaningful andtoset
the stage to draw conclusionandinterpretmeaning”(Naresh,kMalhotra,2012,page 298)
Data Display
 Displayingthe informationinsuchamannerto be understoodandto conclude with
justification
 Segmentsgroupsare formedandinformationallocatedtoresponsive segmentgroup,group
can consistof agesand genderbutwill be adoptedtorelevantcategorise wheninformation
istaken
 Informationcould be displayedaschart,table graphs andspread sheet
 Main purpose isto see the meaningof the informationtherefore crosstabulation shouldbe
prioritisedinordertocreate a hypotheses (similaritiesanddifference)
Data Verification
 Presentavalidmeaningof the data thathave collected
 Confidence thattheyare representingavalidview of theirparticipants,

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Quantitative Investigation
Objectives:
 understandingeffectivecommunicationchannelstotargetstudentsefficiently
 understandingpricingperceptionof studentandtoestablishmustappealingpricingfor
studentinpersuasion inpurchasing
0.2.6B Online Surveys
Self-administeredstructuredquestionnaireonline toobtaininformationonstudentcommunication
orientationpreference andpricingstrategyperception.
Questionnairesare simpleandeasytocreate withthe target populationinmind.Questionnaire will
be directlyalignedwiththe objective of the problemdefinition.The sample will be ata greatersize
and hypothesiswill be proventoconclude the research.
Sampling
Target market
Age 18-25
SamplingFrame
 Universityintranetdatabasesinwhichthe targetpopulationcouldbe attainedthrough
universityaccesswhengivenpermissiontoaccess
 Facebook(thiscouldbe done throughfacebookdemographical settinginadvertisingwhich
showsstudentsstating occupationsascurrentuniversitystudents,samplingerrorwill come
frompast studentwhomayhave not updatedstatusto graduatesor otheroccupation)
SamplingTechniques
 Methodsto be usedare “probability”samplingasthe targetpopulationcharacteristics will
be measuredthroughpre-screeningtoincrease precisionof targetpopulation.Thiswill
eliminaterandomsamplingmakingthe samplingpreciserelevanttothe problemdefinition
target group.
 Stratifiedsamplingwill be usedtoincrease the chancesof precisionof the targetpopulation,
groups(strata) will be definedthroughdemographical characteristics,supermarketshopping
experiences,educational year

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Determiningthe sample size
 The sample size will consistof 500- 1000 targetpopulationparticipants, the size will state
precise variablesinwhichthe targetpopulationvaluemostandprioritise towardsshopping
and communication
 The biggerthe sample size the accurate the hypothesis obtaininassociationwithdefinition
problemobjectives.
Validate the sample
 the criteriaof the targetpopulationwillbe screenthroughapre questionnaireof
requirementstoobtainthe righttargetpopulationtosolve the problemdefinition
requirement:
Age 18-25
Shoppingpattern  Has shoppedata local
supermarket
 Planningtoshopat local
supermarket
 Mainlyshopsat supermarkets
Online surveyquestionnaire contentanalysis
Advantages Disadvantages
 Simple tocreate
 Simple toanalyses
 Directquestions,consistent questionof
objectives
 Fixedresponsequestionreduce
possibilityof confusion
 Biggersample size informational
manageable
 Easy accessto target population
 Motivation of participantstoanswer
questionmaynotbe accurate
 The language needstobe
understandabletothe targetpopulation
to minimise misunderstandinganderror
on question
 Target populationmaynotbe verified
throughonline surveyaccurately

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Quantitative Dataanalysis
Analysingquantitativedatais simple asbecause the questionare closed- endedquestionstherefore
leavingthe participantstoanswerfromthe variationprovidedmakingthe probabilityknownto
researchers.OnlinesurveyprovidersegSurveyMonkeyprovidedataanalysissummaryafter
participantshave answeredthe question.Thisformof analysiscomesastablesandgraphsfor the
researchertointerpretandmanipulate togainunderstandingof the researchtoverifyinformation.
Thissoftware haslimitedtoolsforinterpretation,forreliableandefficientsoftware “SPSS”hasmany
toolsformanipulation,interpretation andcrosstabulationtoolstoenable detailedconclusionsfrom
data analyses.
Benefitsof SPSS
 Handle large amountsof data
 Carry out sophisticatedstatistical analysisinseconds
 Produce veryprofessional chart
Researchlimitation
The researchingcostincurssecondarycredible databaseswhichhave asubscriptionrate orcost per
report,eachreport pricescan varyfrom £200 to £1000 dependingonthe context.Hiringrooms,
moderators,experts,transcriptwriters/softwareall are expenses,alsosample frame acquirement
will be athigh price.The exchange of informationwillcome ata price as well,the targetpopulation
may require motivationthereforeexchangeof moneyorprizeswill come intoconsideration.SPSS
software will be apremiumcostwhichcannotbe establishedatthispointasbecause quotesare
needed.The time of building,executing,datacollectingandinterpretationwill take 4monthsas
showninthe Gantt chart below.A teamof 6 highlyskilledindividual will be delegatedtaskto
achieve toensure the researchwill be done toahighstandard.
Gantt chart
figure 0.2.6c: timetable of researchprocess

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0.1 Secondary research
Secondaryresearchisgoingto assistwithunderstandingthe problemdefinitionandtogain
informationto ensure knowledge gapsare improvedand understood, developingfurther
recommendations andprimaryresearchtools onthe clientbrief.The process givesthe opportunity
to be creative whilst enhance the understandingof the problemdefinitionand tohelpcollectand
elaborate informationtodevelop suitable objectivesforthe primaryresearchphase.
Secondaryresearchhasbeenbrokendownintosmall sectionswhichare alignedwithunderstanding
studentshopping andcurrenttrendswithinthe supermarketsector
UsingTarget Group Index the researchwasbasedonunderstandingstudents’shoppinghabitswhich
are inalignmentwiththe clientbrief.Correspondinginformation wasbasedon: ‘age 15- 24 years’
and ‘notworkingfull time students/atschool’.These were twomajorindicatorsof studentprofiling
throughdemographical traits.The informationcouldnotdifferentiatebetweenhighschool,college
and universitystudents.The followinginformationwasfound:
TGI Netquest(2010)
 Studentsare likelytoregularlyshop2-3timesamonth
 Studentsare likelytoshoponline
 Majorityof studentwill spendunder£13 on mainshoppingbutalsostudentmaximumon
weeklyshopping is£30
 Advertising,,lowpricesandpastexperiences are all importanttostudents
 Asdaattracts the15-24 age-groupas theirmainshop
The researchshows students’ routine forgroceryshoppingtobe 2-3 timesa monthstudentsare
likelytogofor theirmainshop. Studentsare alsomostlikelytointeractwithonlinegrocery
shoppingincomparisonwithotherage groups.The index shows studentsare verykeenonspending
under£13 on weeklyshopscomparedtootherprices butsome studentwill spendupto£30
maximum.Maindecidingfactorsfor studentsshoppingare advertisements,low pricesandpast
experiences.
The research highlights students’shoppingbehaviourandthese are takenintoconsiderationto
understandthe knowledge gaps,to specifykeyvariables inordertoimprove clientbriefdecision-
making. The researchraisedinterestingpointstoelaborate,suchasvalue proposition ononlinefor
studentshopping,spendinglimitationsanddecidingfactors. Thisisa valuable partof the client
researchoutcome.

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0.1.1Prices vs brands
.1
Table 0.1.1B UK consumerattitudesTGFpartnership2013
Showsconsumerbehaviouranticipationgoinginto2014, the distinctionbetweenbrands,prices,
fashionandethicsforUK consumers
The economicdownturnhasaffectedthe landscape of purchasingbehaviouramongconsumers and
has changedsocio-culture perceptionstowardsspending. The barriersof social classeshave
diminisheddue tocustomers’ squeezeondisposal incomeanduncertaintytowardsjobsecurity,
salariesandwage increases.Therefore ithasopened apathwayforconsumerstoresortto
discounter’s storeslike AldiandLidl duringthe recessiondue tolow prices.
The graph shows the biggestindicatorsof consumers’influence inpurchasingproductstobe pricing,
accordingto the WARC research.This isover brands,ethical termsandtrendingbrands, which
showspricingplaysa bigpart indecision-making. Thisresearch,however, hasnottakeninto
considerationproductqualityfactorsand value formoneywhichmayhave interpretedthe results
differently.
Summary
The researchshows, “The uncertaintyandsqueeze onhouseholdincomesthatcanbe seenacross
much of Europe is makingconsumersmore price-driventhanever”(Michael Brennan,2014)
Therefore analysisof pricingisimportantasa meansof understandingthe economicconditionsof
the target group,inorder forAsda tomake accurate judgementonpricingstrategies.

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0.1.2 Customer loyalty and influences
Figure 0.1.2b: influential factorof consumer purchasingbehaviour2013
“Based on respondents with onlineaccess only.New products are defined as any product not purchased in
the past”
The table showsthe maininfluential factorswhichconsumersvalue whendecidingtotrynew
productsin the UK. ‘Friendsandfamily’,’saw itinshops’,‘recommendation’sonnew productsare
keypersuasionvariablesforconsumerstryingnew products. Thisindicatescustomerexperience
withbrands(customerrelationship) will encouragewordof mouthandhelpgenerate close relatives
or friendsinpurchasingnewproducts.‘Saw itina shop’and ‘free sample’are basedonshopfloor
experience and‘possiblepackaging’whichwill encourage customersinpurchasingnew products.
Summary
The Influentialelementof worda mouthisveryeffectivetocustomersasrecommendationby
“friends”and“family”will encouragecustomertotrynew products,butalsoshop floorappearances
isvital and free sample are variablestoalsoconsider. These indicate productswithappealing
packagingand contentor price will imposeimpulsive decisionmakingforcustomertotry new
products. Therefore communicationthroughpackagingandfree sampleonshopfloorwill help
encourage customerpurchasingdecision.

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0.1.3 Supermarket Private brands vs National brands
Private labels are becomingasignificantpartof the consumershoppingbasketdue to the economic
uncertainty.Consumersare appreciatingprivatelabelbrandwithinsupermarkets incomparison
withnational brands. Private label brandsare importanttosupermarketsasthisisan opportunityto
gaina greatermarketshare also because there isa decline innational brands.Mostsupermarkets
have the same national brand,therefore privatelabelsandpricesare movingtothe forefrontof
gainingconsumerandmarketshares.
Figure 0.1.3, showsnational brandsandprivate label brandsperformance 2014
Private label brandsare becomingincreasinglyimportanttosupermarketsales accordingtothe MSL
GROUP, London which has stated“private label salesaccountingfor46.49% of total grocerysalesin
Januaryand 48.06% for February , andup by 0.88% comparedto same periodin2013”. The figures
showcontinuous increasesthroughoutthe monthsandthe acceptance of private brands whichare
becomingimportantin consumershoppingbaskets. Thereforeattentionshouldbe paidtothisas it
isan upcomingtrend, vital tomarketsharesas the national brands’value decrease asthe table
above shows. “ withincreasingcompetitionamongretailersforconsumerstospend,private labels
are setto become the newbattleground“ (NathanGray,2014)
Conclusion
The research forecastthe importance of private labelswhichare partof consumerattraction to
shopsand an increasingmarketshare.Therefore,itisimportantretailersunderstandconsumer
perception of private labelstobuildcustomerproposition bydifferentiatingtheirbrandsfrom other
retailers.Thisgivesthe opportunitytodifferentiate andcreate aproduct line withcustomers’
interestinmind asretailerscommonlyhave the same nationalbrandsmakingprivate brands a
decision- factorinshopping. Thisisthe mainreasonwhythe researchof understandingstudent
marketisbeinginvestigatedtocatera product line withspecificpropositiontowardsthe student
market

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0.1.4 Secondary research conclusion
Keyfindings:
 Studentsare likelytouse onlineshopping
 Studentswanttospendlessbutare willingtoexceed budgetif necessary
 Advertising,lowpricesandexperiences(services) are keydecidingfactors
 Cost of ‘above brands’,fashion andethical brandsare keydecidingfactors
 As the economyrecovers, consumers continue to looktosave money
 The current trendof private labels becomingthe norminshoppingbasketsandfuture
projectionsestimate an increase tomarketshare insupermarketssector
 Private labelsare becomingkeyareastoexplore, differentiatingvalueproposition toenable
consumergain
 Students are likelytobe influencedbyfriendstotrynew products
 Influencedbyshopfloorappearances
How DoesthisAffect Thinking?
The keyfindingsshowscustomers behaviourtowardsshoppingandthe changinglandscape of the
supermarketsector. The secondaryresearch hasopenedthe interlinkbetweencurrentand future
trendsincomparisonwith customerperceptionandinfluence onshoppingbehaviour. Therefore
primaryresearchwill be basedon studentperception of retailerpropositionandprivate label
brands,needsandwants.The importance of supermarketanalysisissegmentationtherefore
researchwill be basedonstudentperceptionandlifestyle whichcanimprove understandingof
consumerneedsandwants onprivate brandsexpectation.
The researchis importanttothe clientbrief asthisis a majorpart on movingforwardsasnational
brandsdecline.The opportunitytodifferentiate will be throughprivate brandsproposition.
Understandingstudentperceptionof private brands,includingneedsandwants,willhelpthe
decision goingforwardsandbuildarelationshipwithstudents,persuadingthemtopurchase at
Asda.

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0.3Design of primary data collectiontools
Objective:understandingstudents’motivationinpurchasing,interestandneedstobuild
supermarketvalue proposition
Theory: the buyingdecisionprocess
The buyingdecisionprocesswill be atthe heartof understandingstudentsbuyingprocess whichwill
indicate student needswithinshopping;thiswill build the marketingproposition.The model isused
to understandthe differentvariable of purchasingprocesswhichwillbe adaptedtothe quantitative
focusgroup to gain insighttostudentpsychological andmotivation processtowardsshopping. if
Four stagesto the buyingprocess: (CLTYAGI,ARUN KUMAR, P 55 2004)
Problemrecognition
 Recognizesaproblemorneed
 Problemtriggeredby internal orexternal stimuli becomesadrive
 Satisfythe drive
 Identifystimuli
Information search
 Heightenedattention: consumerpaysmore attentiontovariable,egsupermarket,
consumerwill payattentiontosupermarketads,conversation,friendsandfamilyperception
and recommendation
 Active informationsearch:activityseekingforinformationfromfriends,family,books,
magazine andreviewstobuild onopinion
Major informationsourcesthatconsumerswilllookintotoinfluencespurchase information
1. Personal sources:friends,family,colleagues, neighbours
2. Commercial sources:advertising,salesperson,packaging,display
3. Publicsources: massmedia,reviews,
4. Experiential sources: handling,examining,usingproduct
Awarenesssets,considerationsetandchoice setsare importantsetsinconsumerschoicesof
products. The image and category of the productmust be positive onthe marketingprospective to
entersets. If organisationare notinthe setit missesthe chance tobe consideredpurchased
Evaluationof alternative
Thisis the processinconsumerdecide on purchasing,the interpretationprocessof the information
gained, cognitivelyapproachhasthe biggestfactoron evaluation andpurchasingnew products
Productattributionanddifferentiationplayakeydecisionpartin evolutional process

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Purchasing decision
 Pay attentionto attributes thatare connectedwiththeirneeds
 Importantattributes
 What attributescome tomind
 Brand image importance
Conclusion
Thisis the perspective processinhowcustomerapproachpurchasingdecisionmaking.This
approach will be in-directedaskedinthe focusgroup.Understandingthisprocesswithstudents
needswill be able togaininsightintoimportant variables.Thisprocesswillallow developmentof
marketingpropositiontowardsthe studentAsdabrand.
Quantitative
Objectives:
 understandingeffectivecommunicationchannelstotargetstudentsefficiently
The surveyobjective will be tounderstandcommunicationchannelsthatstudentappreciate toavoid
clutterand noise fromotherorganisation,alsothe contextinwhichstudentmayappreciate andgain
a response from.
The surveywill startwith demographicscharacteristics: age,genderandeducationyear,thiswill
make interpretationandcross tabulation create and verifyhypotheses.The structure will be
“generalised”to”specific”behaviourtowardscommunication ,thiswill be the pathwaytomarketing
activitiesthroughcommunicationtoolsandeffectivenessresponse.
Questionnaire will consist of Likertscales;theseare ratingscalesthatrequire the participantsto
indicate the degree of satisfactionor dissatisfactions towardsthe statementusingratingscalesof 1
meaningagree and5 meaningdisagree.Thiswillbe usedtounderstandstudent perceptiontowards
communicationandthe agreementsof eachstatement.The researchshouldshow effective
communication channel inwhichAsdacanuse to targetstudentefficientlytoavoidnoise. Order
scaleswill be usedforstudentstostate communicationtools inorderof usage.

Page 21 of 2
0.4 Report onpilot
AB researchconsultantislookingtounderstandstudentlifestyletodevelopastudentbrand.AB
researchwantsto enquire studentshoppinghabitsandexperiences,needsandwantstodevelop
studentbrandwhichiscreatedby studentsandusedbystudents.
Overarching themes
Questions
Possible Probes
(followup questions)
Problemrecognition
Why doyou go to yourlocal
supermarket?
Do yougo with
friends/individual?
How muchto you spend?
Is that a fixedcost?
What do youbuy?
What type of foods/products?
Why the type of food/food?
Regularitems/differenteach
time?
Specificvariables, egprice,
brands,health to buy
Identifystimuli What isyour feelingtowardsshopping?
Why do youfeel thatwhy?
How oftendoyoufeel thatway
towardsshopping?
Studentvalue tobuild
proposition
What do youthinkabouta student
value brand?
whatproducts wouldyoulike to
see underthe studentvalue
brand?
Why ?
What will be a choosingfactor
of studentdecision?price,
context, convenience food
What wouldattract studentof
decidingtobuy studentvalue
brand?
Wouldyoubuy studentvalue
items?
Informationsearch
where wouldyougoto findinformation
on supermarket?
What informationproviderdo
youfindveryuseful?
Awarenesssets,
considerationsetand
choice sets
What supermarketsdoyougo to?
Why ?
What do youthinkaboutasda?
Whats are importantfactors,
aboutdeciding?

Page 22 of 2
Commercial information
Has an ad influencedyouinattending
supermarketandtryingnew products?
What was the ad?
Where wasthe ad?
Factors instoresof purchasing
new products?
Evacuationalternative
What do youlookfor whendecidinga
supermarkettoshopin?
What supermarketdoyou
attendand why?
Wouldyoulookfor student
offers?
Purchasingdecision
What do youexpectfromyour
shoppingexperience?
What attribute are influential toyou
whendecidingsupermarket?
Culture
What wouldyouconsiderasthe
studentculture?
Advertisingwithstudentwould
yoube interestwithasbecause
youcan relate tothe character?
Conclusion
These question are formulatedwiththe theoryinmindof the buyingdecisionmaking.Gatheringthis
informationwill be able toconclude withspecificvariablestogaininsightandto developstudent
brands.

Page 23 of 2
1st
draft
Survey
Gender Male Female
Age 16-20
21-25
26-30
31+
UniversityYear 0
1
2
3
4
Please tickif youuse the following:
Smart phones 
TV 
Radio 
Social media 
PC/laptops 
Tablets 
Please place in order of usage ?
Smart phones 
TV 
Radio 
Social media 
PC/laptops 
Tablets 
From the following rank the order of which you will expect advertising ads?
Smart phones 
TV 
Radio 
Social media 
PC/laptops 
Tablets 
(1: I did 2:I was, 3:I thought about it ,4:I didn’t care 5, I haven’t seen an ad )
1 2 3 4 5
i have seen TV ads of products
and I have brought the product
i have seen ads on social media
of products and I have brought
the product

Page 24 of 2
I have seen ads on my smart
phone of a product and I have
brought the product
When I am shopping at my local supermarket I am influenced by:
(1=strongly disagree, 2=disagree, 3=neither agree nor disagree 4=agree, 5= strongly agree )
1 2 3 4 5
Price
Brands
Packaging
Health attributes
Friend/family
What communication channels will influence you in purchasing from your local supermarket? and why ?Eg TV ads,
radio, social media or instore promotions?
………………………………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………………………………
……………………………………………………………………………….
Feed-back
 The front and size hardto read,looksold
 no introductionanddisclaimertothe survey
 hard to understand,the language andwordingisnotcorrect
 email isa formof communicationchannel
 surveyshouldbe onone page
Changes
 change font to Arial
 Make the questions bold
 change the wording of the questions, more professional
 include email
 Introduction
 Number

Page 25 of 2
2 daft
Survey
I am carrying out this survey to find out the most effective way to advertise and
communicate to students. All results will be anonymous and your details will be kept
private and confidential.
Gender Male Female
Age 16-20
21-25
26-30
30+
University Year 0
1
2
3
4
Please tick if you use the following: Which of the following do you use?
Smart phones
TV
Radio
Social media
PC/laptops
Tablets
Please rank the following in order of your usage per day?
1 being most used to 6 being least used.
Smart phones
TV
Radio
Social media
PC/laptops
Tablets
Please rank the following in order of where you expect to see advertising ads?
1 being most likely to 6 being least likely
Smart phones
TV

Page 26 of 2
Radio
Social media
PC/laptops
Tablets
Please indicate your response to the following statements?
1: I did 2: I was going to 3: I considered it 4: I didn’t pay attention to it
5: I haven’t seen an ad before
1 2 3 4 5
I have seen TV ads of
products and I have
brought the product
I have seen ads on
social media of
products and I have
brought the product
I have seen ads on my
smart phone of a
product and I have
brought the product
When I am shopping at my local supermarket I am influenced by?
1: Strongly disagree 2: Disagree 3: Neither agree nor disagree 4: Agree
5: Strongly agree
1 2 3 4 5
Price
Brands
Packaging
Health attributes
Friend/family
What forms of communication influence you the most when purchasing from your
local supermarket? State why?
Eg TV ads, radio, social media or instore promotions?
Final

Page 27 of 2
I am carrying out this survey to find out the most effective way to advertise and
communicate to students. All results will be anonymous and your details will be kept
private and confidential.
1. Gender Male Female
2. Age group 16-20
21-25
26-30
30+
3. University Year 0
1
2
3
4
4. Which of the following do you use?
Smart phones
TV
Radio
Social media
PC/laptops
Tablets
Emails
5. Please rank the following in order of your usage per day?
(1 being most used to 6 being least used.)
Smart phones
TV
Radio
Social media
PC/laptops
Tablets

Page 28 of 2
6. Please rank the following in order of where you expect to see
advertising ads?
(1 being most likely to 6 being least likely)
Smart phones
TV
Radio
Social media
PC/laptops
Tablets
7. Please indicate your response to the following statements?
(1: I did 2: I was going to 3: I considered it 4: I didn’t pay attention to it ,5: I haven’t seen an ad before)
1 2 3 4 5
I have seen TV ads of
products and I have
brought the product
I have seen ads on
social media of
products and I have
brought the product
I have seen ads on my
smart phone of a
product and I have
brought the product
8. When I am shopping at my local supermarket I am influenced by?
(1: Strongly disagree 2: Disagree 3: Neither agree nor disagree 4: Agree 5: Strongly agree)
1 2 3 4 5
Price
Brands
Packaging
Health attributes
Friend/family
9. What forms of communication influence you the most when purchasing from
your local supermarket? State why?
Eg TV ads, radio, social media or instore promotions?
…………………………………………………………………………………………………
…………………………………………………………………………………………………

Page 29 of 2
Summary
The pilotmethodwasusedto critique the survey;the processof observationwasappliedtoapprove
the questionsandformatwithinthe survey.The primaryprocesswastobe able to identifystudent
communicationchannelsforadvertisingorinteractionpurposes.Thereforethe translational process
was to obtaininformationon communicationchannelstogain insighttothe studentmarketthrough
usingwordsand scenarioswhichstudentcanvisualise toanswerthe questionprecisely.
The surveyhas beencritique tothe targetpopulationpreference,the wordingandfrontmakesit
easyto read,the Likertand orderscalesare appliedwithinthe surveytomake the targetpopulation
visualise scenarioandtoreplywithspecific answers.Thisenablesthe interpretation of data
collectioneasiertobreakdownto enable insightandhypotheses.
0.5 Conclusions andrecommendations
The decisionthe businessshouldtake iscreatingabrandwhichappliestomassesbuthas
personalisationaspectwhichapplytodifferenttargetgroups.Asthe landscape of the supermarket
sectorbecome increasinglycompetitive,differentiate andproposition are key forcustomer
acquisitionandretention.
As personalisationattributesare becomingakeyfactorin consumerpurchasing,isitimportantto
understand the needsandwantsof consumers segmentstocompete inastrongsector. The
performance of private brandssuggestthatconsumerare willingtopurchase private label brands
therefore the opportunityof differentiate isimportantand the abilitytodevise unique sellingpoints
will create businesssustainability. The researchfocusonthe studentmarketasstudents are a big
factor inthe economy,thisalsohas longtermaspectof continuespurchasingaftergraduation.
The researchis necessaryasbecause the currenttrendof private brandshas not peakedtoitsfull
potential yet. The researchprocessconsistof 3stages(1 focusgroup,2 online surveys) these
combinedtogetherwill givethe researcheravisual of the studentculture.Focusgroupwill provide
narrative andquestionnairewillprovide visuals. altogetherthiswillgive insighttoasdato create a
bandcateredspecificallytostudent.
Future recommendation
Researchersshouldhave anunderstandingof the organisation,marketconditions,current/future
trendsand consumers perception.Thisiswill the foundationof knowledgegapsandcreating
opportunitytofurtherresearchtosustainthe businessmodel. Researchers shouldfindinnovating
methodologytocreate precise judgement andtogaininsighttoproblemdefinition. Innovating
methodologiesare becomingatrendwithinthe researchsector,butalwaysremembertohave the
foundationof the oldtheoriesasaback backbone.

Page 30 of 2
Reflection
Things that went well!
i) Findinginformationonthe problemdefinitionusingsecondarydatabaseswentwellfor
me,as I usedmy skills toskimthrough articlesandwas able topick up valuable quotes
to supportmy statements,the use of graphswaswell thoughtouttosupportmy
statementandgive the readera visual.
ii) ReadingabouttheoriesandincorporatingthemintomyworkwhichIhave achievedand
I have made themrelevanttomyproblemdefinition.
iii) The structure of the report iseasyto readwithvarioussubheading
Areas of difficulty
I. Areasof difficultieswasusingthe TGInetquestdatabase,IfeltI couldof found more
information onstudentlifestyle
II. interpretation of the index numberwouldof helpedme achieveunderstanding ,Ilooked
intothe demographical sectionwhichIwascomfortable withbut I couldn’tunderstandthe
lifestyle sections.Thiswould have helpedme onunderstandingstudentbehaviour, there is
minimal informationonstudentlifestyle fromacredible source butitcouldhave been
throughachievedthroughTGInetquestwhichwouldof statedvariablestoelaborate on.
III. Devisingdatacollectionwashardasbecause the relationshipbetweenquestionsand
objectiveshadtoworktogethertogaininsight,thereforeeachquestionhastohave
purposes.Ifoundthishardas there is noright pathin gettingtothe objective,beingcreative
and buildingscenarios forthe readertohelpfulfilobjective.
Improvements
An areato improve onis focusingonone variable ata time.The problemdefinition hadvarious
differentvariableswhichare sometimesconfusingbetweeneachvariable,therefore nexttime Iwill
fullyfocusonone variable toachieve the objective.

Page 31 of 2
References
C.L. Tyagi,ArunKumar,2004, ConsumerBehaviour,[online] [viewed06may2014] available from:
http://books.google.co.uk/books?id=9i_xa8UsAUoC&dq=buying+decision+process&source=gbs_navl
inks_s
KMR software,2010, foodretailers[online] [viewed06may 2014] available from:
https://www.kmrsoftware.net/netquestuni1/default.aspx
Nareshk Malhotra, 2012, marketingresearch,fourthedition,England
Asda,2013, aboutus, [online] [31march 2014] available from:
http://www.asdasupplier.com/about-us/ethics-at-asda/ethical-policy
Nielsen,2013, influential factorof consumer purchasing behaviour2013[digital image][viewed06
may 2014] available from: http://www.nielsen.com/uk/en/insights/press-room/2013/uk-consumers-
are-less-brand-loyal-when-trying-new-products.html
Trajectorypartnership,2013, UK ConsumerAttitudes,[digitalimage][viewed06may 2014] available
from:
http://www.warc.com/Content/ContentViewer.aspx?MasterContentRef=eac2a139-c0d9-4e19-9a50-
8331b1e50d0f&q=TGF&CID=A100983&PUB=WARC-EXCLUSIVE
Eveningstandard,2014 , Asda chief executiveAndyClarke:'Iwon’tbe tackledonprice'[31 march
2014] available from: http://www.standard.co.uk/business/business-news/asda-chief-executive-
andy-clarke-i-wont-be-tackled-on-price-9207401.html
Kantarworldpanel,2014 , UnprecedentedchangesinGroceryRetailinginthe UK,[online] [31march
2014] available from: http://www.kantarworldpanel.com/global/News/Unprecedented-changes-in-
Grocery-Retailing
Kantarworldpanel,2014 UK, UK grocery marketgrowthslowing[online] [31march 2014] available
from: http://uk.kantar.com/consumer/shoppers/110214-kantar-worldpanel-grocery-share-data/
Michael Brennan,2014, The UK in2014: Marketingto the post-recessionaryconsumer[online]
[viewed06may 2014] available from:

Page 32 of 2
http://www.warc.com/Content/ContentViewer.aspx?MasterContentRef=eac2a139-c0d9-4e19-9a50-
8331b1e50d0f&q=TGF&CID=A100983&PUB=WARC-EXCLUSIVE
NathanGray,2014, Private label growth:UKconsumerdatasuggestsprivate label trendishere to
stay[online] [viewed06 may2014] available from: http://www.foodnavigator.com/Market-
Trends/Private-label-growth-UK-consumer-data-suggests-private-label-trend-is-here-to-stay
NathanGray,2014 showsnational brandsandprivate label brandsperformance 2014,[digital image]
[viewed06may 2014] available from http://www.foodnavigator.com/Market-Trends/Private-label-
growth-UK-consumer-data-suggests-private-label-trend-is-here-to-stay
Racplus,2014, Sainsbury'sfinance bosssaysdiscounterscoulddouble marketshare by2020, [31
march 2014] available from:http://www.racplus.com/news/sainsburys-finance-boss-says-
discounters-could-double-market-share-by-2020/8659671.article?referrer=RSS
The guardian,2014, Maidstone Mumbacks discountersassupermarketbigfourare outflanked
[online] [31march2014] available from: http://www.theguardian.com/business/2014/mar/23/aldi-
lidl-maidstone-mums-shopping-recession

Page 33 of 2
Appendix
Value productshave stigmaassociatedwiththemascheapandpoor qualitytherefore supermarkets
have repositionsthe ownbrandrange tomake it more suitable forcustomers.The marketing
strategysupermarketshave imposedtorepositionthe perceptionof ownbrandsvalue productare
to redesignthe packagingimage whichhasshowntoincrease customerappetence andhasincrease
salesat tescoand ocadoa ecommerce base supermarketretailer.
Ocado
Achievements
 Figure jumpedfrom 79%in 2012 and 84% in 2013.
 Increase productsinbaskets
 Profitof £129 to every£1 investedinre-design
Tesco

Page 34 of 2
Achievements
 Perceptionof qualityimprove
 Tescomarket share increase
 Like forlike tescovalue improve by9.8%

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