BDM Report: Market Analysis and Data Collection for Essential Ltd

This BDM report focuses on market analysis and data collection for Essential Ltd, a discount supermarket in the UK. It includes primary and secondary data collection methods, analysis of customer preferences, and recommendations for efficient business decisions.

BDM Report

EXECUTIVE SUMMARY
In order to expand strategically in the market so that the set targets of company can be
achieved it is important that the market is analysed by collecting detailed information through
primary and secondary data collection. These methods help in gaining information regarding the
needs and wants of customers and how the competitors are able to attract customers and fulfil
customer demands. In this report data collection will be done so that before establishing new
business knowledge about the market and competitors can be gained so that efficient business
decisions can be made.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Primary data collection...........................................................................................................4
Analysis of primary data........................................................................................................6
Secondary data collection.....................................................................................................17
Analysis of secondary data...................................................................................................19
Key findings.........................................................................................................................19
Recommendations................................................................................................................20
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
In the contemporary world where the competition among businesses is increasing, the
importance of data collection and its interpretation so that effective results can be found that can
help in decision making have also become important. In order to efficiently compete in martlet
and to sustain in the competitive market it is important that data is collected using qualitative and
quantitative methods so that an overall view of market can be gained. In this report data
collection and its analysis will be done for Essential Ltd so that it can successfully launch its
supermarket stores that will offer groceries and general merchandise to customers at lowest rates
in UK. Further interpretation of data so collected will be done along with formulation of
recommendations so that it can sustain in the competitive marketplace.
MAIN BODY
Primary data collection
When data is collected for the first time by researcher directly from sources by the way of
questionnaires, surveys, interviews etc. so that fresh data can be gathered that can help in making
correct interpretations and evaluations (Babić, 2017). The authenticity and reliability of such data
collected is high as it is collected directly from the sources by researcher. In order to gain the
responses of customers for the discount supermarket Lidl a questionnaire containing 15 questions
will be used to gather necessary information from 30 customers. This can help Essential Ltd in
gaining information on how Lidl is able to attract a large number of customers.
Questionnaire
Q1) Which age group of people do the most purchasing from Lidl?
a) Age 20-35
b) Age 35-60
c) Above 60
Q2) Which gender group of people shop more at Lidl?
a) Men
b) Women
Q3) What is the educational level of its customers?
a) Less educated
b) Moderately educated

c) Highly educated
Q4) How much does the customers spend in their one purchase?
a) Between $50-300
b) More than $300
Q5) The income group of people who shop at Lidl?
a) Between $25,000 and $150,000
b) More than $150,000
Q6) How do the location of Lidl attract customers?
a) Easily accessible store locations
b) Difficulty in accessing stores
Q7) What attracts the customers most to shop from Lidl?
a) Low prices
b) Frequent and heavy discounts
Q8) Why is shopping at Lidl convenient to customers?
a) Easy display
b) Large variety of products
Q9) What are the variety of products available to customers?
a) Branded products
b) Groceries and general merchandise
Q10) Shopping at Lidl is conducted mostly at?
a) Online
b) In stores
Q11) What else attract customers to shop from Lidl?
a) Ambience and space
b) Easy mode of payment
Q12) Are the goods which customers want available at the Lidl stores?
a) Yes
b) No
Q13) What are the other stores which customers prefer over Lidl?
a) Tesco
b) Asda

c) Sainsbury
Q14) How can more customers be reached by Lidl?
a) Promotions
b) Social media advertising
c) Discounts and offers
Q15) What help Lidl in achieving high customer satisfaction?
a) Discounted prices
b) Large variety of products
c) High market research
Analysis of primary data
After gathering data from 30 customers of Lidl; following results can be found which can
be interpreted and analysed in such a manner that effective decisions can be made by Essential
Ltd:
Q1) Which age group of people do the most
purchasing from Lidl?
Frequency
Age 20-35 15
Age 35-60 10
Above 60 5

From this data it can be said that most of the customers of Lidl belong to the younger
group of people who buy products in bulk and also are more prone to impulse purchasing which
lead them to purchasing more from the stores. Thus the stores of company keep such items that
attract young customers more like food products which are both healthy and tasty etc.
Q2) Which gender group of people shop more at
Lidl?
Frequency
Men 10
Women 20
It can be said from this graph that mostly women shop from the stores of company as
they come there to collect the daily use groceries and general merchandise. The company tus
maintains a wide variety of stock of such products that can help women in shopping easily so
that they can collect all the items they want for their household.
Q3) What is the educational level of its
customers?
Frequency
Less educated 5
Moderately educated 15
Highly educated 10

This graph shows that the people making purchases from these stores belong to the
moderately educated group of people who are well aware of the prices of products offered by
company. These people also belong to the moderate income groups who like to purchase high
quality products at low prices.
Q4) How much does the customers spend in their
one purchase?
Frequency
Between $50-300 20
More than $300 10

From this graph its can be said that out of 30 customers 20 spend between $50-300 while
their shopping at the company stores which means that most customers purchase the products
they need. 10 customers might also indulge into impulse purchasing and spend more than $300
while shopping.
Q5) The income group of people who shop at
Lidl?
Frequency
Between $25,000 and $150,000 20
More than $150,000 10
From this graph it can be said that out of 30, 20 customers of Lidl have the income
between $25000 and $150000 while only 10 belong to more than $150000 income group which
means that moderate income groups make up the most purchasing from Lidl.
Q6) How do the location of Lidl attract
customers?
Frequency
Easily accessible store locations 10
Difficulty in accessing stores 20

From this graph it can be said that out of 30 customers only 10 have easy accessibility to
Lidl stores while other 20 face problems in accessing these stores. This means that the presence
of these stores is not wide in the market.
Q7) What attracts the customers most to shop
from Lidl?
Frequency
Low prices 15
Frequent and heavy discounts 15

From this graph it is clear that both the low prices offered by company and the frequent
and heavy discounts offered by company on its products help it in attracting a large number of
customers.
Q8) Why is shopping at Lidl convenient to
customers?
Frequency
Easy display 10
Large variety of products 20
This graph depicts that out of the 30 customers 10 are attracted towards Lidl due to the
easy display of products in its stores while the other 20 are attracted due to the presence of large
variety of products in the stores.
Q9) What are the variety of products available to
customers?
Frequency
Branded products 10
Groceries and general merchandise 20

This graph makes it clear that out of the 30 customers 10 shop in the company as it offer
branded products of items and the other 20 are attracted due to the groceries and general
merchandise items which are available in stores.
Q10) Shopping at Lidl is conducted mostly at? Frequency
Online 15
In stores 15
This graph makes it clear that customers of Lidl shop both from its online application and
from the physical stores which makes the customer base of company very large.

Q11) What else attract customers to shop from
Lidl?
Frequency
Ambience and space 20
Easy mode of payment 10
This graph interprets that out of the 30 respondents 20 feel that the ambience and space in
stores attract them to shop from Lidl while the other 10 say that as there are easy and flexible
modes of payments available in company they shop their products from Lidl.
Q12) Are the goods which customers want
available at the Lidl stores?
Frequency
Yes 20
No 10

From this graph it can be said that of the 30 customers 20 find the goods they are looking
for in the Lidl stores while the other 10 do not agree on the same which means that the company
needs to improve its supply chain management so that customers can be made available right
products on time.
Q13) What are the other stores which customers
prefer over Lidl?
Frequency
Tesco 15
Asda 10
Sainsbury 5

From this graph it can be interpreted that Tesco is the biggest competitor of Lidl as out of
30 customers, 15 switch to Tesco if they do not find the goods in its stores, 10 turn to Asda while
the rest go to Sainsbury. This means that the company has a large number of competitors in
market.
Q14) How can more customers be reached by
Lidl?
Frequency
Promotions 10
Social media advertising 10
Discounts and offers 10

From this graph it can be said that Lidl can reach to its customers and increase the
awareness about company by using various methods like promotions, social media advertising
and discounts and offers so that a large number of customers can be attracted towards the
company.
Q15) What help Lidl in achieving high customer
satisfaction?
Frequency
Discounted prices 15
Large variety of products 10
High market research 5

From this graph it can be said that out of the 30 customers, 15 are attracted towards the
company due to the products offered at discounted prices, 10 are attracted because of the large
variety of products that are available while 5 are attracted as the company do a lot of market
research and offer products based on taste and preferences of customers.
Secondary data collection
Secondary data is collected from sources which already contain information about certain
topic from the view point of other authors and researchers. This data can be collected from
books, newspapers, internet etc.
Lidl Stiftung & Co. KG is a German global discount supermarket chain which is
headquartered in Neckarsulm, Germany. The company has around 10,000 stores in European
nations and USA and offer its customers products at discounted rates so that a large number of
customers can be attracted (Linder and Williander, 2017). The company has total revenue of
Eur€89.869 billion, operating income of about Eur€1.951 billion, net income of about Eur€1.287
billion. The company has a total market share of 5.9% in the grocery industry. Some graphs that
can help in depicting its position in market clearly are as follows:

Source: International sales of Lidl .2020
From this graph it can be said that the international sales of Lidl in market is increasing
each year which means that the company is able to attract a large number of customers and
increase its sales. Thus it can be said that the company is able to expand strategically in the
international market so that the gross profits of company can be increased.
Source: Comparison of sales of Lidl with other retailers .2020
From this graph it can be said that Lidl is able to increase its sales in comparison to other
retailers present in the international market and has been able to attract more number of
customers through its discounted stores.

A comparison of Lidl with its competitors present in the market:
Basis Lidl Tesco Sainsbury Asda Morrisons
Market
share
5.9% 28.4% 15.3% 15.4% 10.14%
Revenue £474.5
million
£63,911
million
£29.007 billion £21,666
million
£17,735 million
Operating
profit
£1.9 million £2.21 billion £239 million £803.2
million
£348.00million
Gross profit
margin
4% 5.2% 6.29% 5% 3.88%
Analysis of secondary data
From the data collected above it can be said that Lidl which a a discount supermarket and
has its branches in many countries is able to increase its sales as the company can attract a large
number of customers by the way of heavy discounts that are offered on its products (Eisenberg,
2017). This has allowed the company to become a competitor in the market as it offer high
quality of products at low process which leads to high customer satisfaction leading to its
increasing reputation in market can also be said that Lidl is able to effectively compete with the
large competitors present in market like Tesco, Asda, and Sainsbury as the sales of company is
more than these businesses and the company can further expand in untapped market so that they
can be captured which can help in increasing the revenue of company.
Key findings
From the primary and secondary data which is collected so as to understand about the
market position of Lidl following are the key information which has been found:
 The company offer its customers products as per their tastes and preferences so that high
vale can be created for them.
 They give heavy and frequent discounts on the products offered by them and also sell the
products at comparatively low prices which help in gaining the attention of a large
number of customers.

 The company also offer a wide range of quality products to its customer so that they can
have many options to choose from thereby increasing their level of satisfaction (Lytras,
Raghavan and Damiani, 2017).
 The company promotes its products via various platforms like social media, print media,
through promotions, discounts and offers etc.
 The stores of Lidl are well structured, spacious and the ambience is friendly and
welcoming which also helps in attracting customers.
Recommendations
From the above data which is collected, interpreted and analysed it can be said that Lidl
has become successful in market by applying various strategies like pricing, promotion, location
etc. so that the target customers can be reached. It is thus important that Essential Ltd which is
about to launch its discount stores follow the following recommendations so that it can
successfully sustain in the market and deal with the competitors in an efficient manner:
 Essential Ltd must locate its stores at places that are near to a large number of target
customers which requires the application of marketing strategy in an efficiently manner
so that target customers can be known and it can position its products in markets.
 It is important that the company increase the use of online application so that all the age
group of people can be captured and the convenience of shopping can increase for the
company.
 Use of promotional strategy so that a large number of customers in market can be reached
by using advertisement on various platforms and offering discounts on the products that
are offered by the company.
 The company must offer a variety of products to its customers so that their trust can be
gained which can help in increasing the sales of company.
CONCLUSION
From this report it can be concluded that market research play an important role in
gathering information about the competitors of business that are present in market so that
effective strategies can be formulated that can help in dealing with them. also it help in analysing
the influence of competitors in market so that better strategies can be formed to attract more
number of customers.

REFERENCES
Books and Journals
Babić, Z., 2017. Models and methods of business decision-making.
Linder, M. and Williander, M., 2017. Circular business model innovation: inherent
uncertainties. Business strategy and the environment, 26(2), pp.182-196.
Eisenberg, M.A., 2017. Legal models of management structure in the modern corporation:
Officers, directors, and accountants. In Corporate Governance (pp. 103-167). Gower.
Lytras, M.D., Raghavan, V. and Damiani, E., 2017. Big data and data analytics research: From
metaphors to value space for collective wisdom in human decision making and smart
machines. International Journal on Semantic Web and Information Systems
(IJSWIS), 13(1), pp.1-10.
Müller, J.M., Buliga, O. and Voigt, K.I., 2018. Fortune favors the prepared: How SMEs
approach business model innovations in Industry 4.0. Technological Forecasting and
Social Change, 132, pp.2-17.
Ocasio, W. and Radoynovska, N., 2016. Strategy and commitments to institutional logics:
Organizational heterogeneity in business models and governance. Strategic
Organization, 14(4), pp.287-309.
Zhang, Y. and Wen, J., 2017. The IoT electric business model: Using blockchain technology for
the internet of things. Peer-to-Peer Networking and Applications, 10(4), pp.983-994.
Clauss, T., 2017. Measuring business model innovation: conceptualization, scale development,
and proof of performance. R&D Management, 47(3), pp.385-403.
Online
International sales of Lidl .2020. [Online] Available through:
<https://www.retaildetail.eu/en/news/food/strong-growth-rate-affects-lidls-profits>
Comparison of sales of Lidl with other retailers .2020. [Online] Available through:
<https://www.retaildetail.eu/en/news/food/strong-growth-rate-affects-lidls-profits>