Lidl And Iceland Promotional Strategies

Published Date: 02 Nov 2017

Introduction:

In our daily we all do purchasing and it is the important part of our life. We have large variety of stores, shopping centres and other markets, where we can go for our required stuff and for the fulfilment of our needs and wants. As we said there are numbers of stores so this could be a difficult that where should consumer go, but it is sure that where consumer will go or which store is selected for purchasing must have some features and attributes. These include both purchasing items and Store itself. Now consumer can select the store, on the behalf of its personal attributes or on the basis of items that store sells and both option could be chosen. If two different stores have same brands then it will be bit confusing. However consumer can use the other option of store that where he will be given something along or in association with brands even that might be intangibles like services and tangible like some rewards.

All companies depend upon customers for their survival and future growth. They are always wanted to attract them in order to increase their sales revenues. So for attraction they use some kind of advertising and promotional strategies for not only the sake of promotion but also make them loyal to company and brand. However, for gaining the loyalty of customers, a sequence of promotions, service, store attitude and product benefits are required if any thing missing that could be the cause of declining existing loyalty. Here in this study we will see the different promotional strategies and their effects and how they play and change the behaviour of customer.

In the view of research problem, study of two rival companies can clear the arising questions and problems which are lidl and Iceland. These two retails companies are UK well known retail companies which have segregated customers and buy same products on different consumer perceptions.

Research questions:

What sort of market source plays important role in the consumer behaviour and attitude which make consumer loyal to the specific company?

Why people prefer one company to other when both companies have got same good in their store?

Why the rival companies copy the physical benefits with little efforts but competing intangible and invisible values might be difficult for them?

Consumer and its behaviour for purchasing?

Why consumers prefer one store on the other one?

Research objectives

Following objectives must be achieved in order to find the retail consumer strategies,

To gather consumers perceptions and views using questionnaire.

To analyse them with certain statistical tools.

To evaluate at what extent these strategies are effective and what are the weaknesses and how to overcome on them.

To get relevant and sufficient data on the promotional strategies of both above mentioned companies.

Literature Review

For complete understanding and it would better and essential that we go through the important and effective theories related to this research project. For this my aim is to describe the following topics as under.

Promotional strategies are not only the core part of any firm and company but it also cause of increasing or decreasing the sale, and definitely effect on the loyalty of customer. That why every company spend lot of money on their promotional activities.

Promotional Mix

Promotion mix is communication tool kit which enables company to decide how to best promote their product by using promotional tools. In preparing these decision company develop a promotional or integrated marketing communication plan. John W. Mullins (2008) defines "The IMC planning process as one of structure and reinforce equally profitable relations with employees, customers, other stakeholders, and the general public develop and coordinate a strategic communications programme that enables them to make beneficial contact with the company brand through a variety of media." Some promotional fundamentals as following

Advertising:

William F. Arens, Contemporary Advertising (Burr Ridge, IL: Richard D. Irwin, 1996), described that "any paid form of non individual presentation and promotion of ideas, goods or services by recognized sponsor." There are different medium can be used for this such as direct mail, email, radio, TV.

Personal Selling:

Malcolm McDonald (2008), On Marketing Planning: Understanding Marketing says that "It is a procedure of helping and persuade one or more prospects to buy a good or service or to act on any idea through the use of an oral presentation." For example, "Person to Person Communication."

Sales Promotion

David L. Kurtz, H. F. Mackenzie, Kim Snow, (2009) Contemporary Marketing, say that these are incentives and inducement which are designed to increase and stimulate the purchase of products or service. For example trade shows, exhibition coupons, contests, product samples, sweepstakes

Consumer Promotions

Phillip Kotler, Gary Armstrong, (2010), Principle of Marketing, describe that "A promotion strategy that calls for spending a lot on advertising and consumer promotion to induces final consumers to buy the product, creating a demand vacuum that pulls the product through channel." Here we distribute free coupon, samples, cash refund, warranties and free trail. This will put a significant influence on the existing and new customers. This will encourage them to come in the store because you have reduced their purchasing new product risk factor.

Promoting Existing Product

Norton Paley (1989, p.350 ) " you may want to use one or more different tools when attempting to promote established brands, such as premiums, price packs, contests and sweepstakes, trading stamps, cross promotions that use one brand to advertise another and demonstration. These tools aim to attract competitors, customers, build market share, introduce new version of established brands and reward buyer loyalty."

Methodology

The purpose of research is to find and to get information about the customers. It tells the researcher that what are the behaviours, habits of consumers? Furthermore how they will react with certain changes, what are their intentions and what they want to see in future. It should also consider that data must be quality data.

For this generally there are two types of research.

Primary Research Methods

Secondary Research Methods

Primary Research

These methods are used to collect and obtain the primary data from targeted and focused consumers through different techniques for instance observation, surveys and interviews. The purpose of this research is to get first hand and primary data which give the actual and current data about the consumer. In this method the researcher is responsible for the design the questionnaire or methodology, collection of data and to analyse and summarise that obtain data. There are few methods for primary research

Observation & Experiments

This method is used for collecting primary data. In this researcher observes, examines and records the attitudes, behaviours, other visible and invisible. The aim of observation method is to examine that what the consumers do, rather than why they do.

Survey Research

It is widely used research method where researcher gathers the primary data from the consumer or respondents by email, Personal interviews, questionnaires, via telephone or online. Though survey is most famous method for the primary data collection, it has some problems and hindrances in conducting survey such as different culture, languages and different economic situation of consumers.

Interviews

In this method researcher conducted an interview and ask questions and discuss face to face with respondent. The answers given by consumers are then summarised and used for decision making for future. This method is good because here researcher directly focus on individual consumer via mutual face to face conversation.

Secondary Research Method.

Secondary research comprises the sources of data and other information which was collected and gathered by others. Market research papers, government reports, books, industry studies, news paper and magazines are some of examples for obtaining secondary data. This form of information and data are inexpensive and relatively quick than compare to primary data but cannot provide the current market and consumer data because secondary data represent the past.

There are variety of sources and many forms where one can access the secondary data. One of the most popular sources is library because there you can have wide variety of data and information in different formats. Researcher can obtain data and information from many sources some of them are below

Newspaper And Magazines

Special newspaper and magazine are also used for the collection of secondary data. Many research article which are written by professors, consultant, analyst and researcher are printed, from where one can obtain data and information.

Internet.

Now days every thing you want can get on internet. This is the fastest way to access data and information. There are hundreds of websites which are in this business to provide you, your required information and data.

Qualitative Data And Research Approach

Helle Neergaard and John P (2006) write as "The goal of qualitative research is to develop concepts that enhance the understanding of social phenomena in natural settings, with due emphasis on the meanings, experiences and views of all participants." The data and information obtained or generated is not easily quantifiable. It is used to get deeper insights into consumer attitude and behaviour through asking open end questions. For instance, if you ask a question to consumer that what is your earning? Then there will be the only specific answer of less than few words, but if you ask him that what are your suggestions? Then he can tell you what he actually wants to express. It may comprise of few sentence. His answer gives you that what are the consumers think about the certain product or service.

Quantitative Data And Research Approach

Joshua Grossnickle and Oliver Raskin, (2001) described that "Quantitative research is the measurement of consumer characteristics, behaviours and attitudes. It forms the core of marketing research and can be used confidently to make critical business decisions." Data collected by these techniques can be amended and analysed by statistical tools, from large amount of samples may be drawn with some confidence to the population from which the subjects in the sample are drawn. The larger the sample size the better result can be synthesized and this data can be represent using charts and graphs..

Role Of Ethics

There are many ethical dilemmas that can rise during the data collection. These issues revolve around honesty and lying and the quality of data and concerning with the construction of data. Ethical guidelines are genera and concerning with the construction of data. Ethical guidelines are generally given by certain institutes they approved such a things which will not be harm for any one. Lincoln and Guba (1989) argue that "ethics are part and parcel of paradigm position held by the researcher. The authors believe that much depends on the moral boiling point of the individual enquirer will make different decisions even when confronted with similar circumstances. Further more they assert that nothing inherent in conventional modes.

Timeline

Task

Weeks

Duration

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Literature Review

 

 

 

 

 

 

 

 

 

 

 

 

Research design and evaluation

 

 

 

 

 

 

 

 

 

 

 

 

Questionnaire Design and data collection

 

 

 

 

 

 

 

 

 

 

 

 

Data Analysis

 

 

 

 

 

 

 

 

 

 

 

 

Conduct the Result and Analysis Session

 

 

 

 

 

 

 

 

 

 

 

 

Draft

 

 

 

 

 

 

 

 

 

 

 

 

Review Report

 

 

 

 

 

 

 

 

 

 

 

 

Presenting final paper

 

 

 

 

 

 

 

 

 

 

 

 

[Source: Gantt Chart]

KEY DATES:-

Questionnaire Design and date collection will be held in third week and conducting the results and the analysis of the primary data will be held in 9th week of the given plan. The results will be derived after giving due consideration to the questionnaire out comes. The final draft will be presented in the 10th week.