Marketing Research 2 - Impact of Covid-19 on Sales of Woolworth Company
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This marketing research study analyzes the impact of Covid-19 on the sales and growth of Woolworth Company. The study includes a situation analysis, informal investigation of secondary data, and primary research. The findings suggest that e-commerce is a key strategic choice to overcome negative impacts of Covid-19.
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MARKETING RESEARCH 2
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Table of Contents INTRODUCTION...........................................................................................................................3 Findings............................................................................................................................................4 1. Objectives of study..................................................................................................................4 2. Situation analysis.....................................................................................................................4 3. Informal investigation of seconmdary data..............................................................................6 4. Analysis of results....................................................................................................................7 Primary research..........................................................................................................................8 Covid pandemic affected negatively sales of company...............................................................8 E-commerce is a key strategic choice to overcome negative impacts of covid 19......................9 Physical contacting in sales resist customers to come over company's stores...........................10 Healthy environment at stores...................................................................................................11 CONCLUSION..............................................................................................................................12 RECOMMENDATION.................................................................................................................12 REFERENCES..............................................................................................................................12 Appendix........................................................................................................................................13
INTRODUCTION Woolworth company is a super market chain founded in the year 1924. Headquarter of the company is located in New South Wales, Australia. Company is currently associated with the 1051 locations. The super market sector is a established premises at which all different products are sale based on the individuals needs and demand of the potential customers in the market. The organisation is among the fastest super market chain in Australia and allow a good basis to deliver the whole study. This study is based on the event that could result into decreasing sales of the company. Also the organisation is growing rapidly that could provide all the required information needed to conduct the whole study. This entire research will be based on the data that will collected through primary and secondary research study. Information or data become the significant part of the research study that is conducted to deliver the final objectives of the study conducted. Role of primary and secondary research is very essential in order to process the overall objectives of the study. Findings 1. Objectives of study The objective of this study is to assess the impact of covid 19 over declining sales of the organisation. In the recent time covid 19 pandemic has been demonstrated and identified as the major challenge the whole society is faced. Pandemic has completed demolished the growth and success opportunities for the all different business organisations at a global level (Seetharaman, 2020). Australia's economy could also affect immensely in against to the pandemic. In the time of the covid business houses at a global level along with Australia got affected immensely. AS many industries could shut down as a result of the pandemic. Major shut in the stores, lock down has also imposed which could completely demolished the growth and development opportunities and possibilities of the all different business houses channelise the business operations. Super market stores were completely shut that could affect the growth and development possibilities of the business ventures. 2. Situation analysis Situation analysis comprises with the evaluation and analysis in respect to the macro and micro business environment factors that can affect the business operations. Macro environment impacts
Macroenvironment impact is comprises with the factors like political, economic, social, technological, environment and legal factors influence the business operations of organisation. All these are thee external business environment factor effect the business operations of company. Political factor:Political factor comprises with the policies formulated by the government to enhance and boost the progress of the retail sector. The market sector comprises with the product portfolio contain all the basic products require for living so the government contain a special interest in the overall growth and development of the market (Fairlie, 202). The product portfolio of the sector generate more attention of the potential customer towards the sector. In the time of covid pandemic government has adopted the policies like lock-down, shutting down the market, curfew and such like practices to control the pandemic situation. Political stability also exist in the Australia which also favour the government to make strong decisions that can direct and gudie the overall growth and progress of the business environment. Economic factor:Economic factor of Australia is very progressive in nature. The retail sector is emerging rapidly. The covid pandemic could completely demolish the overall growth ability and potential of the retail market. The statistics clearly demonstrate that the growth of the sector has been reported as -2.6% and -1.14% in the past two financial years (Jallow Renukappa and Suresh, 2020). This declining in the growth is clearly reflecting the decreased sales of the sector. Inflation in economy has also increased that could further demolish the buying power or capacity of the potential customers under respective target market. Effect of covid is very negative over the retail sector as the super market stores remain closed as a result of lock-down and such like practices. Social factor:is among the core macro environment factor influence the business operations of the venture. This factor comprises with the choices, preferences, fashion, trends associated with the society and such like elements. Role of social factor is to influence the choices of the people in the respective target market. The impact of the covid 19 is over the society as a whole. As the supermarket stores were completely closed that could further influence the growth and progress of the sector in the respective business environment (Chinn and et.al.,2020). People were not able to buy the product of their need as the stores were either shut or open only for the limited time duration. In such a situation this become challenging for the companies to generate sales.
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Technological factor:considered as the major element or factor affect the performance of the retail market. Supermarket stores has used the technology in te time of covid to make the e- commerce trade. At some level the technological development and advancement could support the organisations in the retail market to deliver the sales but in larger situation this has completely spoiled the growth possibilities. Only the e-commerce channels were able to operate. The issue also raised in supply chain management as due to the over traffic over the sites the demand was huge. In the situation of covid 19 only the e-commerce sites were able to operate properly but the rest of the entities were completely unable to function. The result of all this was in the face of low sales of organisations and reduced growth rate of the whole retail sector. Environment factor:is another key element party of the macro business environment. This is denoted as the environment friendly practices adopted in the sector. Organisations under the retail sector has been engaged in various corporate social responsibilities like plantation, green energy, water harvesting and such like policies (Angelucci and et.al., 2020). Environment factor allow the companies to contribute in the overall growth of the society as a whole. In the time of covid all the campaigns launched by companies belong ton the retail sector were completely stopped. Also te calamity is proved as a cursed over the nature. Legal factor:comprises with all laws and legal developments that is associated with the retail sector. In order to deliver the business operations in retail sector various laws and legislations are required to cope up with such as equality law, anti discrimination law and many other legislations. In against to deliver the business operations organisation associated with the retail sector needed to incorporate with all the laws and legal regulations associated with the market. The above stated factors are a part of the macro environment influence the business operations of firm. Micro environment factor Micro environment factor associated with the internal environment of the business venture. Woolworth Company is associated with the following factors and features related to the business operations entertain by the organisation. Strength: Resource management of company is very progressive in nature. Hiring practices involve both internal and external recruitment practice. Marketing campaign of company involve both online and offline mode of promotions.
Weakness: Financial resources are limited in number with the Woolworth Company. Small staff restrict the company to manage operations. Opportunities: Digital marketing is a great opportunity for organisation. E-commerce platform is another key opportunity associated with the organisation. Threat: Competition in the market. Pandemic was a huge threat. Lock-down imposition related threat. 3. Informal investigation of seconmdary data The recent records of the company presented the fact that the revenue of the company is recorded as 42.151 billion in the year 2020. The growth rate of the organisation was 5.34% in the year 12019 that is further reduced to -11.51% in the year 2020. The decline in the sales of the company clearly indicated about the fact that covid 19 pandemic has completely demolished the overall growth potential and ability of the business venture in respective target market (Sarkodie and Owusu, 2021). The lock down and the shut of the offices and stores could result into decline sales of the business venture. The effect of the pandemic is such that the customers has move forward over e-commerce mode of trading as the stores were either closed or unable to assure a proper safety. The physical contacting becomesmajor issue in the tie of covid that could motivate the customers in market to switched towards only the online trading practices in order to meet all different retail product requirements. The views of theBloom and et.al. (2020),has criticized the fact that the effect of pandemic has been very negative in respect to the business venture. The pandemic has motivated and directed the business houses to look forward to the e-commerce trading practices so that customers can easily place the order even by staying at home. This become very challenging for the super market stores who are not associated wioth the e-commerce trading practice to meet all different needs and requirements of the customers (Mofijur and et.al., 2020). Avoiding physical contactingbecome also a huge challenge for the target customer to meet the need and requirements. The decline in sales of the Woolworth Company is clearly sating and quoting the aspect that the effect of the whole pandemic has been over the sales and growth of the company.
The result of this is that company also faced issues related to liquidity and many such functional issues. 4. Analysis of results Correlations Do you feel that covidpandemic could negatively affectthesales andgrowthof theWoolworth Company? Haveyou noticedthat physicalcontact insalescould resistthe customersto cometostores for the shop? Doyoufeelthatcovid pandemiccouldnegatively affect the sales and growth of the Woolworth Company? Pearson Correlation1-.250 Sig. (2-tailed).486 N1010 Haveyounoticedthat physicalcontactinsales could resist the customers to come to stores for the shop? Pearson Correlation-.2501 Sig. (2-tailed).486 N1010 Model Summary ModelRR SquareAdjustedR Square Std. Error of the Estimate 1.612a.375.297.43301 a.Predictors:(Constant),Doyoufeelthatcovidpandemiccould negatively affect the sales and growth of the Woolworth Company? This is clearly demonstrated the fact that the covid pandemic has created a relationship between the decline sales of company. The above stated factors can clearly demonstrated the fact that the relationship between customer safety and sales of company is direct. If the organization cannot offer the safe environment than it would significantly affect the sales and growth of the company.
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Primary research Covid pandemic affected negatively sales of company Q.1) Do you feel that covid pandemic could negatively affect the sales and growth of the Woolworth Company? Yes6 No4 Interpretation: The above stated graph clearly demonstrate the fact that 60% of the respondents agreed with the fact that covid 19 pandemic could demolish the sales and growth possibilities of the business entity. The remaining 40% respondents did not agree with the fact. Based on the majority of respondents it can be stated that the pandemic has negatively affect the sales of company. YesNo 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 60.00% 40.00% Column B
E-commerce is a key strategic choice to overcome negative impacts of covid 19 Q.2) Do you agree that e-commerce was the key strategic option that could overcome the negative impacts of the covid over sales? Strongly agree4 Agree2 Neutral1 Disagree2 Strongly disagree1 Interpretation: The respondents has clearly demonstrated that e-commerce is a key strategic choice that can be used to overcome the negative impacts of covid 19 pandemic,. 40% respondents has strongly agreed to this fact. Physical contacting in sales resist customers to come over company's stores Q.3) Have you noticed that physical contact in sales could resist the customers to come to stores 40.00% 20.00%10.00% 20.00% 10.00% Strongly agree Agree Neutral Disagree Strongly disagree
for the shop? Yes7 No3 Interpretation: The above stated graph clearly indicate that 70% of the respondents mentioned that the physical contacting is a key hurdle company face to attract customers for visiting company's stores. The remaining 30% respondents disagree to the fact. Based on the opinions stated by the majority of respondents it can state that physical contacting can be a possible reason behind declining company's sales. 70.00% 30.00% Yes No
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Healthy environment at stores Q.2) Do you agree with the fact that e-commerce was the key strategic option that could overcome the negative impacts of the covid over sales? Strongly agree2 Agree2 Neutral1 Disagree3 Strongly disagree2 Interpretation The majority of respondents has clearly mentioned that Woolworth Company is capable enough to provide a healthy atmosphere to customer over its stores. Strongly agreeAgreeNeutralDisagreeStrongly disagree 0 0.05 0.1 0.15 0.2 0.25 0.3 20.00%20.00% 10.00% 30.00% 20.00% Column B
CONCLUSION The impact of covid 19 was such that it could completely affect the sales of the Woolworth Company. The physical contacting involve in the sale become a major reason behind the decline sales of the organisation. RECOMMENDATION This is recommended that the Woolworth Company must give emphasis over the e- commerce sales of the company. Ensuring health safety become essential for the organization (Haleem and et.al., 2020). Company should also ensure physical distancing at the time of shop in stores of company (Savić, 2020). REFERENCES Books and Journal Angelucci, M and et.al., 2020. Remote work and the heterogeneous impact of covid-19 on employment and health(No. w27749). National Bureau of Economic Research. Bloom, N and et.al., 2020. The impact of Covid-19 on productivity(No. w28233). National Bureau of Economic Research. Chinn, D and et.al.,2020. Safeguarding Europe’s livelihoods: Mitigating the employment impact of COVID-19. McKinsey. Retrieved May,31.p.2020. Fairlie, R., 2020. The impact of COVID‐19 on small business owners: Evidence from the first three months after widespread social‐distancing restrictions. Journal of economics & management strategy,29(4).pp.727-740. Haleem, A and et.al., 2020. Areas of academic research with the impact of COVID-19. The American journal of emergency medicine,38(7). pp.1524-1526. Jallow, H., Renukappa, S. and Suresh, S., 2020. The impact of COVID-19 outbreak on United Kingdom infrastructure sector. Smart and Sustainable Built Environment. Mofijur, M and et.al., 2020. Impact of COVID-19 on the social, economic, environmental and energy domains: Lessons learnt from a global pandemic. Sustainable production and consumption. Sarkodie,S.A.andOwusu,P.A.,2021.ImpactofCOVID-19pandemiconwaste management. Environment, development and sustainability,23(5). pp.7951-7960.
Savić, D., 2020. COVID-19 and work from home: Digital transformation of the workforce. Grey Journal (TGJ),16(2).pp.101-104. Seetharaman, P., 2020. Business models shifts: Impact of Covid-19. International Journal of Information Management,54.p.102173. Appendix Q.1) Do you feel that covid pandemic could negatively affect the sales and growth of the Woolworth Company? Yes No Q.2) Do you agree with the fact that e-commerce was the key strategic option that could overcome the negative impacts of the covid over sales? Strongly agree Agree Neutral Disagree Strongly disagree Q.3) Have you noticed that physical contact in sales could resist the customers to come to stores for the shop? Yes No Q.4) Do you believe that Woolworth Company could not offer a healthy and safe atmosphere to its customers that also become a result in the form of declining sales of company? Strongly agree Agree Neutral
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