Globalization's Impact on UK Retail Markets: A Waitrose Case Study

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Unit 11- Research Project
“How globalisation will impact the UK’s retail markets/‘Waitrose’”
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Table of Contents
P3.....................................................................................................................................................3
P4...................................................................................................................................................10
P5...................................................................................................................................................20
P6...................................................................................................................................................21
P7...................................................................................................................................................23
Reference List................................................................................................................................25
Appendix 1.....................................................................................................................................26
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P3
Conduct primary and secondary research using appropriate methods for a business
research project that consider costs, access and ethical issues
1. State your gender
Options Number of
respondents
Total number of
respondents
Percentage of
respondents
Male 15 25 60
Female 7 25 28
Others 3 25 12
Table 1: gender of the respondents
Findings: Among the consumers of the Waitrose, 60% of the consumers were male and 28%
were female. On the other hand, 12% of the consumers belonged to other category.
2. State your age
Options (in years) Number of
respondents
Total number of
respondents
Percentage of
respondents
18 to 25 5 25 20
26 to 33 7 25 28
34 to 41 6 25 24
42 to 49 5 25 20
50 to 57 2 25 8
Table 2: Age of the respondents
Findings: The customers of the Malaysia belonged to various age groups. However, out of the
25 consumers, 28% belonged to 26 to 33 years age group, while the equal number of respondents
was found for the age groups 18 to 25 and 42 to 49. The percentage of this two group ranged to
20%. The percentage of people belonging to the age group 32 to 41 was 24; while only 8%
people belonged to the age group 50 to 57.
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3. Has globalisation opened scope for new businesses?
Options Number of
respondents
Total number of
respondents
Percentage of
respondents
Yes 18 25 72
No 2 25 8
Don’t know 5 25 20
Table 3: Scope for new business
Findings: As per the point of view of the consumers, 72% believed that globalisation has
opened the scope for the new businesses to expand. In addition to this, 8% did not agree and the
remaining 20% did not know whether globalisation had an impact or not.
4. How long you are using the Waitrose products and services.
Options Number of
respondents
Total number of
respondents
Percentage of
respondents
0 to 6 months 5 25 20
6 to 12 months 7 25 28
12 to 24 months 8 25 32
More than 24
months
5 25 20
Table 4: Use of Waitrose products
Findings: 32% had been using the products for 12 to 24 months and 285 for 6 to 12 months.
20% have been using the products for 0 to 6 months and more than 24 months respectively.
5. Do you want Waitrose to expand in Malaysia?
Options Number of
respondents
Total number of
respondents
Percentage of
respondents
Yes 24 25 96
No 0 25 0
Don’t know 1 25 4
Table 5: Expansion of Waitrose in Malaysia
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Findings: 96% of the consumers of the Malaysia agreed to the expansion of the Waitrose in the
Malaysia, while 4% did not have any idea related to the matter.
6. How likely will the consumers of Malaysia benefit from the expansion of the Waitrose
in Malaysia?
Options Number of
respondents
Total number of
respondents
Percentage of
respondents
Very likely 20 25 80
Likely 2 25 8
Neutral 2 25 8
Less Likely 0 25 0
Unlikely 1 25 4
Table 6: Benefit of Malaysian consumer from Waitrose
Findings: 80% of the consumers of Malaysia considered that expansion of the Waitrose to be
very beneficial for them, while 8% found to be beneficial. On the other hand, 8% responded
neutrally and 4% did not agree.
7. Do you think that the existing product lists of Waitrose can attract the Malaysian
customers?
Options Number of
respondents
Total number of
respondents
Percentage of
respondents
Yes 22 25 88
No 1 25 4
Don’t know 2 25 8
Table 7: Preference of Waitrose products in Malaysia
Findings: 88% of the people were in accordance to the fact that the Malaysian consumers would
prefer purchasing the products of the Waitrose. However, a single customer from the survey
showed a negative outlook towards the purchase preference of the Waitrose products whose
percentage ranges to 4%; while 8% of the Malaysian consumer was not sure.
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8. As per your viewpoint, what is the most preferable area of the business strategies
followed by Waitrose that can affect the expansion stage?
Options Number of
respondents
Total number of
respondents
Percentage of
respondents
Expansion to an
emerging economy
6 25 24
Innovation of the
existing product
9 25 36
Development of the
new product
4 25 16
Change in the
pricing strategy
6 25 24
Table 8: Strategy for business expansion
Findings: According to the survey conducted on the Malaysian customers, the best way for
Waitrose to expand is by innovating the existing product. To this, strategy the preference was
shown by 36%, while 24% each showed the preference for expansion to emerging economy and
a change in the pricing strategy respectively. The remaining 16% revealed that the best way is by
developing a new product.
9. Do you think that the current marketing strategies are useful for the other multinational
retail companies operating in Malaysia?
Options Number of
respondents
Total number of
respondents
Percentage of
respondents
Yes 23 25 92
No 0 25 0
Don’t know 2 25 8
Table 9: Significance of the strategies for other retailers
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Findings: The current marketing is observed to suitable for other retailers available in the
Malaysia. This was agreed by 92% of the customers of the Malaysia, while 8% were not sure of
the fact. However, not negative answer was obtained.
10. Based on your perception, what would be the main survival strategy while expanding
the business in Malaysian retail market.
Options Number of
respondents
Total number of
respondents
Percentage of
respondents
Decrease in the price
of the products of
the Waitrose
18 25 72
New products in the
store shelves
3 25 12
Innovation of the
existing products
4 25 16
Table 10: Surviving strategy for Waitrose
Finding: As per the customers of the Malaysia, there are diverse survival strategies that
Waitrose can opt for. However, the maximum agreements were with the decrease on the prices
of the products of the Waitrose. This option was voted by 72% of the total customers. However,
16% went for the innovation of the existing products and 12% felt that by developing new
products, Waitrose would be able to survive the consequences of the expansion in Malaysia.
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Qualitative data
1. What are the factors that contribute for the growth and survival of the company?
Manager 1 “One of the most essential factors that would
help in the growth as well as survival of the
company in the foreign market is management
factor. This includes the efficiency of the
management. In addition to this, the quality of
the product of the Waitrose has always been a
key factor in its growth and survival”
Manager 2 “The growth and survival of the company
greatly depends on the commitment it makes to
is consumers and by the action taken by the
organisation to satisfy the needs and demands
of the consumers. In this case, Waitrose has
always looked forward to decrease the prices
of the products so that best quality products
could be made availed at low prices. Apart
from this, company is also open for accepting
the environmental factors such as forming joint
ventures, open to the economic policy framed
by the governing body and so on”
2. What could be the possible challenges that the company would face while expanding its
business into the territory of the Malaysia?
Manager 1 “As per my view, the main challenge that the
company will face while expanding into
Malaysia is related to the difference in the
culture of the region as compared to the UK.
Henceforth, it would be challenging the
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company to deliver products as per their
culture. Along with this language barrier could
also be challenging, even the local market
competition”
Manager 2 “The main challenge that the company would
face is related to tax code and compliance
issue. With the change in the region, the
taxation policy also changes so it would be
challenging the company to restructure the
policies.
3. What would be the most effective strategy that would help Waitrose to safely enter into
the Malaysian Market?
Manager 1 “As per my views, the most effective strategy
would be either licensing strategy or the
strategy of creating a joint venture. This will
help the company to prosper in the Malaysian
Market.
Manager 2 “Good relationship is the key to success. Thus,
I strongly feel that Waitrose will have to
establish good relationship with the political
bodies of the Malaysia to safely enter into the
area”.
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P4
Apply appropriate analytical tools, analyse research findings and data
Question 1
60%
28%
12%
Gender of the respondents
Male
Female
Others
Figure 1: Gender of the respondents
Analysis
It is observed from the representation above that the survey respondents were primarily men.
This proves that the products available to the consumers within Waitrose are catering to the
requirements of the male gender mostly. The presence of other gender within the survey
respondents prove that Waitrose designs and develops products that attract the other genders as
well. However, considering the large number of male responding participants in the survey prove
that the company invests in developing their products for all types of consumers. Despite the
results providing information about the prominence of all genders in the participant group, the
presence of majority male responses prove that the results gathered from the survey are based on
male opinion mostly.
Question 2
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20%
28%
24%
20%
8%
Age of the respondents
18 to 25
26 to 33
34 to 41
42 to 49
50 to 57
Figure 2: Age of the respondents
Analysis
The figure above shows that the number of respondents within the survey mostly belongs to the
age groups of 26 to 33 years and 34 to 41 years. Thus, it can be stated that the responding
customers who participated in the survey belonged to middle age group. Equal percentage of 42
to 49 years and 50 to 57 years participants proves that the organisation develops products that
attract consumers of every age. However, the majority participating members belong to the
middle age group suggesting that the outcomes generated from the study is influenced by the
opinion of this age groups.
Question 3
72%
8%
20%
Scope for new business
Yes
No
Don’t know
Figure 3: Scope for new business
Analysis
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The results gathered from the survey prove that participating consumers are mostly aware of the
benefits that globalisation present to the businesses seeking to operate in foreign markets. It is
evidenced from the figure that companies aiming to function within the business environment in
retail sector develop their products in a way that would help the company to expand their
transactional activities in the international market. Thus, it can be recognised from the above
representation that the customers who participated in the survey are aware of the benefits
globalisation provide to businesses. Hence, it can be analysed form the information that
customers are loyal for the brand and believe that aspects of globalisation would be beneficial for
Waitrose.
Question 4
20%
28%32%
20%
Use of Waitrose Products
0 to 6 months
6 to 12
months
12 to 24
months
More than 24
months
Figure 4: Expansion of Waitrose in Malaysia
Analysis
The representative figure above shows that participating consumers in the survey are well
acquainted with the products and business operations of Waitrose and Partners. It is recognised
from the results from the survey that the customers have been making purchases from the brand
for more than a year. It is noted that majority of the consumers who participated in the data
collection method have been associated with the retail business for 24 months (2 years). Thus, it
can be analysed that the opinion of the customers gathered from the survey are effective for the
organisation in expanding their operations in new areas.
Question 5
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