arpico

Marketing Information & Research CIM Membership No. 38431369

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Task 1 12 sides of

A4 (4959

words)

Task 2 1555 words

Task 3 1524 words

Total 9123

Marketing Information & Research

Professional Certificate in Marketing

Study centre : Next Business School

CIM Membership Number : 38431369

CIM Declaration

I confirm that in forwarding this assignment for marking, I understand and have applied the CIM policies relating to word count, plagiarism and

collusion for all tasks. This assignment is the result of my own

independent work/investigation expect where I stated. Other sources are

acknowledged in the body of the text and/or a bibliography is appended.

The work that I have submitted has not previously been accepted in

further confirm that I have not shared

CIM Declaration

I confirm that in forwarding this assignment for marking, I understand and have applied the CIM policies relating to word count, plagiarism and

collusion for all tasks. This assignment is the result of my own

independent work/investigation expect where I stated. Other sources are

acknowledged in the body of the text and/or a bibliography is appended.

The work that I have submitted has not previously been accepted in

substance for any other award. I further confirm that I have not shared

my work with other candidates.


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Acknowledgment

I would like to express my special appreciation and thanks to my lecturer Mrs. Ruwandi, you

have been a tremendous mentor for me. I would like to thank you for encouraging me

through out every step of the assignment. Your advice on both assignment as well as on my

career have been priceless. I would also like to thank my fellow classmates for letting my

time be an enjoyable moment, and for your brilliant comments and suggestions, thanks to all

of you. I would especially like to thank the staff at Next Business School. All of you have

been there to support me.

A special thanks to my family. Words cannot express how grateful I am to my mother and

father for all of the sacrifices that youve made on my behalf. Your prayer for me was what

sustained me thus far. I would also like to thank all of my friends who supported me in

writing, and incented me to strive towards my goal. At the end I would like express

appreciation to my beloved fianc who spent sleepless nights with and was always my

support in the moments when there was no one to answer my queries.


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Table of contents

Contents Acknowledgment .................................................................................................................................... 2

Table of contents ..................................................................................................................................... 3

1.0 Richard Pieris & Co.PLC- Company background. ........................................................................... 4

1.1 Marketing problem ............................................................................................................................ 5

1.2 Research Objectives .......................................................................................................................... 6

1.3 Research methodology ...................................................................................................................... 7

Type of data ........................................................................................................................................... 7

Source ..................................................................................................................................................... 7

Purpose .................................................................................................................................................. 7

Competitors messages on the move ........................................................................................................ 7

1.4 PRESENTATION ........................................................................................................................... 14

1.5 Timing of the project ...................................................................................................................... 15

1.6 Estimated budget for the research. .................................................................................................. 15

Task 2 .................................................................................................................................................... 17

3.0 Introduction Task 3 ...................................................................................................................... 31

3.1 Strategic importance to the company of building data analysis tools ............................................. 31

3.2 Identify the relevant data analysis tools which the company could use.......................................... 31

3.3 Data protection legislation and controls .......................................................................................... 32

3.4 Recommendations for the ethical usage of collected data .............................................................. 33

3.5 Conclusion ...................................................................................................................................... 34

Bibliography ......................................................................................................................................... 35

APPENDIX .............................................................................................................................................. 36


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1.0 Richard Pieris & Co.PLC- Company background.

Going 80 years back in 1940 a few partners who set themselves up in a business as commission

agents ,export and import dealers first emerged the business venture in a filling station, the beginning

of the national institution was mode set and converted into a limited liability with the founding

partners as directors and over the years grew to a business power house. Today, Richard Pieris and

Company PLC can justifiably claim a place in the front rank of the countrys diversified business conglomerates.

The Company has created a strong presence in every nook and corner in the country for all its

products and services offered. It is well known amongst all Sri Lankans the Brand name of Arpico has placed a seal of Trust, Excellence and Heritage towards the masses at large. The vision statement

of Arpico is to be a market driven technologically oriented diverse group while focusing the

expectations of the customers and to ensure a continuous growth, while the mission statement of this

company is to exceed expectations of the customers.

Supercenters

Richard Pieris Distributors Ltd. manages the renowned Arpico chain of Supercenters,

Superstores and an island wide network of Showrooms. The network retails a wide array

of fast moving consumer goods (FMCG), household goods, apparel, furniture & electronics,

and provides a host of value added services such as bank service points, ATMs, credit card and mobile bill payment facilities etc. through its seventeen Super Centers / Stores and twenty

four Showrooms

Industry players and its performance.

The main competitors that possess a threat is Cargills, by its rapid expansion has been very evident. The outlets cater to middle and low income group category of customers. Cargills main strategy is low

price value addition to customers by way of purchasing at low price (purchasing economies of scale).

Cargills operates island wide with 268 outlets with all 24 districts in Sri Lanka.

Cargills is the current number one or market leader in the super market chains and currently poses a

threat to the ordinary boutiques operating island wide. This is mainly because of the strategy Cargills

follows beating the lowest price into the lowest. Their strategy attracts all walks of the population.

The next being Keels Super operated by the number one business chain in Sri Lanka i.e John Keels

Holdings PLC. These super markets cater to the urban population as opposed to Cargills outlets. The

group expanded the outlets mainly in the urban areas of the country. Keels Supper focused mainly in

the upper middle class customers. Its expansion was not rapidly penetrating the geographical towns in

the country as opposed to the Food City outlets. Keels Supper was not having the same expectations

as compared to its direct competitor Food City with low net margins and issues of sustainable returns.

In view of the same Keels are developing a mall concept to support the new and upcoming Super

Market expansion.

The segment of customers is mainly on the urban middle and upper middle class customers, and

young adult customers has the focus for the Arpico Supper Centers. Apart of the above mentioned

customers there are seasonal customers that visits the outlets based on the occasions of the year.

Mostly Sri Lankan customers walk into ARPICO due to the availability of any products from a

variety of brands; convenience.

Performance

As per the annual report published for the year 2012/2013 ARPICO Group has recorded a net profit

before tax of Rs. 3.05Bn.The retail sector reported a 15.7Bn revenue contribution to the overall profit

of 34.6Bn. The turnover of the Company improved steadily compared to the previous year even

though


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the economy showed signs of a slowdown. However, there is a drop in the operating profits of the

company compared to the previous year mainly as a result of the imposition of Value Added Tax

(VAT) on the retail and wholesale industry with effect from 01st of January 2013, the increase in the

cost of operation as a result of energy/fuel price increases at the beginning of 2012, and a non

recurring capital gain included in the prior year operating profit figure. Furthermore, the reduction in

consumer spending evident throughout the year resulted in a drop in demand for non essential items.

1.1 Marketing problem

*Keells super outlets are geared up with mobile technology and currently operates with the facility of

purchasing customers daily needs online. No other supermarket does online sales and they take the

first mover advantage. May it be a busy day at work, last minute shopping, one minute changes to the

recipe or may it be in the traffic items can be purchased through the Keels Super mobile app or the

website.

*The Arpico super center houses more than 300,000 products and 43,000 categories in its super

centers. Hence of its vast range of products the company needs to communicate special promotions and offers that are made in time to time. It is estimated that 700,000 customers patronize the super

centers on a daily basis. Having considered the turnover of those customers, the company foresee the

potential for further growth.

*Cargills has 68948 facebook likes, 788 tweets on twitter and 637 check ins on foursquare. They update their facebook and twitter page daily. Keells super has 102,547 facebook likes, 2732 tweets

and 601 check ins on foursquare. While ARPICO has only 20,263 facebok likes, no twitter posts and 3241 check ins on foursquare. This clearly indicates that ARPICO is not making using of social networks. Facebook page is active, but not many likes. No twitter posts at all. ARPICO has the

highest in terms of existing and potential customer involvement on foursquare.

Rationale behind the research

The global phenomenon on e-commerce has widespread apart from the developed countries to

emerging markets. Following the ICT penetrations worldwide, Sri Lanka has evolved to be among the

forerunners in an actively growing ICT environment. This research is focused on customers

behavioral response customers communications on the move.

Competitor modern trade businesses also referred to as super markets has embarked being aggressive

to increase their noise levels by announcing special promotions and offers to their existing and

potential customers. The mode of mobile phones, smartphones, tablets have become a vehicle to

communicate marketing messages more frequently.

Some benefits of research knowledge on customer communications on the move, benchmark ARPICO offerings with other competitors, predict the future needs and diverse wants of potential and

existing customers.

Therefore this research which elaborates the use of effective communication by Arpico Super Centers

will help develop sound communications strategy using on the move communication tools


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1.2 Research Objectives

Following are the objectives developed to complete the task.

2.1 To outline the various categories and number of marketing messages that come by the ARPICO

super centre customers and future customers who receive from Keells, Cargills and Laughs while they

travel.

Analyzing the types of marketing communications used by ARPICO which both existing and potential customers receive whilst on the move.

Identify the types of mobile communications used by other competing organizations in their marketing messages.

Observe how often the messages are communicated to current and potential customers of ARPICO vs competitor firms.

Suitable types which ARPICO could utilize in marketing special customer updates.

Whether competitors send messages online or offline.

The volume of messages received from ARPICO vs competing entities.

2.2 Analyzing the key types of apparatuses that current and forthcoming ARPICO super center

customers are willing to obtain marketing promotions on; when they are out traveling.

Observe the mobile trends Sri Lankan customers follow which ARPICO could derive in marketing messages.

Understanding the internet penetration of Sri Lanka which ARPICO can market their retail therapy.

The tendency of potential and existing customers to own a smart phone, tablet or laptop.

Identify types of internet connectivity which current and potential customers prefer to use.

Understanding the operating systems which potential and existing customers use.

2.3 Assessing the different platforms those current and impending ARPICO customers would be

willing to approach.

A clear observation of customer awareness about current marketing messages sent by ARPICO as well as other companies.

How active customers are online using e mail, whats App, foursquare, twitter etc.

Selection of customers towards auto generated messages vs. personal messages.

Understanding for what purposes potential and existing customers wish to receive marketing messages.

Evaluate the platforms which customers perceive their future communication needs.

2.4 Comparing and contrasting with explanation, the types of notification both the current and

prospective American Express cardholders would prefer whilst they are out.

Understanding the extent which customers need help from the company regarding products.

Customer responses to promotions and offers sent on the go.

Changes which customers would prefer adding to the current marketing strategy of ARPICO.

Instances and situations which customers intend to interact with ARPICO.

Evaluate types of messages customers require information on a daily basis.


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1.3 Research methodology

This elaborates how the above mentioned objectives are achieved. Under 3.0 we will talk about

research methods of primary and secondary. Secondary we will divide under internal and external and

under primary methods we sub divide into qualitative and quantitative.

Secondary research

This market research has been already done by an organization and is available within the

organization. For an example reports or studies that has been done by agencies, surveys done

previously for a specific purpose.

By using a secondary research it would help to achieve the above mentioned objectives on assist in

analyzing the number of marketing messages the customer would receive from other competitor

organizations, To identify the current customers and potential customers that are willing to obtain

marketing promotions while they are on travel, in order to identify what type of notification the

customer would prefer in obtaining.

Internal sources

Type of data Source Purpose

Customer

complaints

Internal customer care dept. Analyzing current process management systems

to meet customer satisfaction.

Seasonal Trends

Arpico Bonanza promotional

reports

To observe own brand concept and attract

customers to enjoy the shopping spree.

Customer

Satisfaction

Privilege Cards log/database To identify a loyal customer base where the

customer will have trade discounts, entitle for

special promotions.

Staff dedicated

for SM

Facebook, Twitter reports Identify promotions on social media. Attract

customers whilst having the shopping experience

been discussed by customers.

Previous

promotional

Activities-

Effectiveness

Arpico Christmas Millionaire

campaign reports

To identify Seasonal customers and to improve

upon its Seasonal objectives.

Table 1: Internal Secondary Sources

Source: Author contribution

External sources

Type of data Source Purpose

Competitors messages on the

move

Competitor Websites and

advertisements

To compare what contact

methods used by competitor Vs.

own

Industry Benchmarks Annual reports , magazines,

external data

To understand the Companys rating Vs. Competitors

Customer Discussions Interviews, business forums,

Blogs

To understand the need for

improvement

Table 2: External secondary sources

Source: Author contribution

Usefulness of secondary data

There are several favorable outcomes that can be seen mainly by using a secondary research that is

the services ease of access where it is convenient and could be obtained speedily, The research may


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help clarify the research focus, Help in effectively eliminating the need and other expenses to carryout

research when compared to primary research. Technology plays a major role with internet use speed

of accumulating information is very high.

Drawbacks of secondary data

However there would be drawbacks of using this research. In many instances the researches would

not get the full study of the data collected, accuracy of data can be highly doubtful and it will be

difficult to compare as the data provided is biased, It is not timely this means to say that the

information collected from secondary data would include past trends that would not suit the present

situation.

Due to these limitations identified above regarding secondary data it is recommended to carry out a

primary research.

Primary Research.

This is a set of data that are in original form. These primary researches are mainly conducted in order

to answer specific questions where the information that is required are collected directly from the

focused market. The primary research is carried out in this project in order to evaluate the no. of

marketing messages the customers would obtain by other supercenters while they are on the move.

Objective of primary research is that to gain all relevant data related to on the move communications

of potential and existing customers.

Primary research could be mainly done is two ways that is through qualitative and quantitative

research. Qualitative research is done through depth interviews or through focus group discussions

where it would help the researcher to dive deep into the problem. Quantitative data helps in gathering

numerical figures that is transformed into statistics. This research will be done through surveys that

are obtaining data through face to face communication or the use of online.

Quantitative Research.

The research activity of same is a vital phenomenon and a set of information to fulfill the objectives

of the finding more accurate. In this aspect of fulfilling the quantitative objectives it would enable to

understand the use of mobile phones out of which the trend in shifting from conventional mobile

phone units in to smart phones and further extended to Tablets etc... The quantitative research will

elaborate the current IT platform in the county and would further elaborate through data the furfure

evolution of marketing promotions and new trends that would affect the lively hood of communities.

The collected data converted to numerical data will guide the organizations objectives to focus on the desired customer groups that will affect the overall business performance of the Company.

The quantitative Research Methods

Are mainly conducted in three different ways

o Surveys o Experiments o Panels

The methods of a Survey provide an broad image of how technological influence the masses at large.

It is a passive process where organization identifies to make the best opportunity of its reach.

Therefore other methodology in terms of experiments and panels is not likely the requirement to

identify the growing phenomenon of such subject matter. Glen Arbon will not carry out experiments

or panel interviews.


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Survey

The set of quantitative data is vital to understand the mode of communication especially for those

customers who are mobilized and using mobile technology to receive and disseminate information. It

is important that a study is conducted to find out from those customer groups the effectiveness of

reaching them more effectively. Therefore the following methodology could be used in collecting the

required quantitative data.

o An interview could be conducted with a selected sample base o A set of direct attributed questioner could be posted direct to customer or can pose online

questioner to a sample customer base.

o Quantitative data on demographys of mobile phone uses, access to IT related devices/computers, uses of Social Media etc...

Population

The set of selected population is the urban customer Groups, Young Adults and a mix of middle

income level groups. Existing customers who are also the competitor customers and potential

customers groups are Middle and upper income groups to be in the category of the Urban Group. The

Young Adult Group is considered the ages between 23 years- 37 years. The above customer groups

are selected based on the common or majority of population that visit the ASCs and those who frequently visit the competitor outlets on a far regular basis.

The customer groups also enter the urban/seasonal category as we find a considerable amount of

corporate clients contributing to the business of ASCs.

A sample of those customer groups is vital where the real customer needs can be identified. The

specific outlet of the ASC can have the targeted product portfolio and could identify the customers

taste of choice this could be achieved through a validated set of questions in terms of the income

levels and other preferences of those CGs.

Sampling

A sample is a smaller (but hopefully representative) collection of units from a population used to determine truths about that population (Field, 2005)

Purpose of Sampling:

Resources (time, money) and workload

Gives results with known accuracy that can be calculated mathematically

The benefit of sampling for Arpico Supper centers will provide the organization to improve upon its

accurate spending on its research. It will provide the organization to derive absolute benefit and to

know where the organization should target to communicate its products and services.

The sample data can be constructed as per mentioned bellow based on the information provided by

the customers in relation to their category, Therefore the data can be taken of those clients. Further

information from the data base on the age groups.

Sampling is used to gain information about a population when a full census is not practical. In order

for your results to be representative of the population you are surveying, you must ensure that you

select an appropriate sample of respondents.

To determine the appropriate sample size, the estimated response rate and desired accuracy of the

final results must be taken into consideration. The greater the survey sample size the smaller the error

margin, and the more reliable the survey results will be.


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Stratified sampling

In statistical surveys, when subpopulations within an overall population vary, it is advantageous to

sample each subpopulation (stratum) independently. Stratification is the process of dividing members

of the population into homogeneous subgroups before sampling Glen Arbor & Co Ltd will formulate

the following in order to carry out this sampling technique. Total sample consists of all loyalty card

members stratified into different age groups.

Type of Privilege Card Total

Age Group Silver Gold Platinum

20-25 400 170 50 620

26-40 850 300 180 1330

41-60 900 1000 1200 3100

61-65 800 900 300 2000

66 and

above

300 20 30 350

Total 3250 2395 1760 7400

Table 3: Total sample frame

Sampling errors are found in conducting a survey. Sampling are difference between the sample value

and the true value of the population being surveyed. We wish to minimize it in our fullest capacity

mentioned in the report below. Our agency assures of a 98% accuracy level.

Contact methods used for conducting survey:

Telephone and online methods of contacting the sample frame will be carried out as follows;

Telephone

Loyalty card holders will be contacted through the telephone and one to one questions will be raised

according to each customers. Half of the sample frame will be selected for the exercise of asking

queries through telephone. Selected questions will be raised depending from each customer groups.

People who do not have access to the internet and questions which need answers will be asked

through means of telephone.



20-25 200 85 25 310

26-40 425 150 90 665

41-60 450 500 600 1550

61-65 400 450 150 1000

66 and above 150 10 15 175

Total 1625 1195 880 3700

Online

Loyalty card holders who preferred e mail or online method of communication are selected here.

These type of customers will be reviewed with a general set of questions varying from age group to

age group and also varied upon loyalty card membership.



20-25 200 85 25 310


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26-40 425 150 90 665

41-60 450 500 600 1550

61-65 400 450 150 1000

66 and

above

150 10 15 175

Total 1625 1195 880 3700

It will be various methods through all possible IT platforms that the selected sample group will be

contacted upon on the survey. The use of Internet, SMSs, Social Media sites, will be used. The main reason to use the IT platform is to understand the role of communication through using the internet

and email is to evaluate the objectives of the customers using such facility to update the information

of marketing communications.

The survey researcher is survey administered and self-administered as the method of using the

questioner through telephone and through using internet /emails. The interviews will be conducted

during office hours and after office hours to make the researcher understand the type of customers

involved during the time of the day. Most customers can be busy when contacted during the day time

where the questioner can be emailed for feedback. Some may be free to be interviewed.

The advantages and disadvantages of the contact methods could be that when the respondents could

be busy in their work places they may not provide the accurate information that the researcher would

require to conclude the real required data. On the other hand the advantage would be than having to

focus more on a researcher administered model which would create situations that the respondents

may sometimes avoid. In instances of such nature the researcher could focus on to the self-

administered method of conducting the survey.

Non sampling errors and ways to overcome

Non-sampling errors could take place in either during the research interview process and through the

self-interviewed process that would initiate towards the survey. There could be respondents who

would not react positively or there could be errors that could not be recorded in a proper manner

during telephone conversations. The probability of errors could be minimize by evaluating the issues

and circumstances that could occur during such interviews be discussed with e team of researchers

and have the contingencies been evaluated to minimize such shortfalls.

Data collection tools

Data will be collected by use of questioner this is a set of questions asked by the subject in order

collect information about the Arpico super center customers. The different target groups of Arpico can

be contacted through online, telephone calls, where they would fill in necessary information and

through online. The questionnaire would include the multiple, yes or no of questions regarding on the

move communications.

Quantitative data processing

Once the data is stored in the computer and is free of error Glen Arbon would select the most

appropriate approach for Tabulation and Statistical analysis. (Wilson 2006)

The data preparation method would process in the following way,

1. Data entry The information that was gathered about the Arpico super center customers will be entered into the computer.

2. Editing - Edit such information gathered if there are defaults found in the Customer base. 3. Coding - This is where we would assign codes ,for closed / structured questions.


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Processing of data would happen with the use of softwares such as Excel/SNAP/SPSS.By using these softwares Glen Arbon could analyses the data.

Statistical analysis

Statistics would involve the collection /interpretation and the analysis of raw data. There will be

several methods used in Statistical analysis.

Descriptive analysis.- This would show quantitative measurements. Would help in organizing and summarizing data .

Ex: We could obtain a certain percentage of how many customers are currently obtaining marketing

messages about Arpico super center products while they are on the move.

Frequency distribution. This is a method of classifying data, where the collected data will be divided into segments.

Time series analysis Analyses the behavior of Arpico super center customers over a period of time.

There also strengths and weaknesses of using such statistical analysis. Advantage of using descriptive statistics for the project research is that clarification of large volumes of data is possible

and is easy to calculate. main disadvantages could be that lack of confidentiality ,that is when the

subject used in this research are not truthful because they would feel the need to tell the researcher

what they would like to hear. Questions that the individual feel is personal would not be answered.

There leading to lack of confidence intervals.

Limitations of Survey Research

A survey is a non-experimental descriptive research method .This method is used in order to collect

data that cannot be directly observed. Basic types of surveys are cross sectional surveys and

longitudinal surveys, but there certain limitations that could be seen in using surveys,

Insecurity of limiting access to the population (customer segments) of concern.

Lack of time to carry out a survey to the selected market segment.

It carries a large cost it would have lack of funding necessary to carry out the whole research.

Certain biasness seen in some of the questions surveyed.

We could minimize the limitations of surveys by;

Before conducting the research the researcher should be knowledgeable about the area he/she wishes to research.

To widen the base of experience ,this could be done by talking to other practioneers in the same field we wish to conduct our research.

Avoiding posting questioners that cannot be answered by the subject. Ex. You could ask questions that have been answered satisfactorily.

Qualitative Research.

This is used in gathering information about human behaviuor,and the reasons that govern such

behavior.

Qualitative research is also suggested for this project. Glen Arbor to identify the individuals interest

to obtain such messages ,so that Arpico supercenters could increase their savings and move forward.

According to our research of analyzing communication modes of the selected market for Arpico

Super centers. It will enable Glen Arbon to Research about their response levels,based on their

behavior and perception.


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Methods of qualitative methods

1. Focus group discussions. Focus group discussions is where a group of people are being questioned on their belief /perception /attitudes/opinions towards.

2. Depth interview - This is also an analysis where its more secure and confidential. The conversation would be conducted by the interviewer and respondent.

Depth interview is more suitable for this research project because of the following reasons,

Can reach a large sample.

Questions are structured and is asked in the same way so that respondents answers can be more easily answered.

You could be on one on one since its face to face discussions.

Since it is questioned personally the questions are fully understood.

Deeper insight / flexible you could go into greater knowledge than the focus groups.

Better Report - Since participants will feel comfortable in talking openly in interviews than in focus groups. Richer data can be obtained.

Planning qualitative research

Depth interviews

In-depth, qualitative interviews are excellent tools to use in planning and evaluating Extension

programs because they use an open-ended, discovery-oriented method, which allows the interviewer

to deeply explore the respondents feelings and perspectives on a subject. This results in rich background information that can shape further questions relevant to the topic. The key characteristics

of in-depth interviews are the following:

Open-ended Questions. Questions need to be worded so that respondents expound on the

topic, not just answer yes or no. Many open-ended questions begin with why or how, which gives respondents freedom to answer the questions using their own words.

Semi-structured Format. Although it is important to pre-plan the key questions, the

interview should also be conversational, with questions flowing from previous responses

when possible. For example, if an interviewee remarks that The elections are approaching, an appropriate response would be, How do you feel about the candidates involved?

Recording Responses. The responses are typically audio-recorded and complemented with

written notes (i.e., field notes) by the interviewer. Written notes include observations of both

verbal and non-verbal behaviors as they occur, and immediate personal reflections about the

interview.

In sum, in-depth interviews involve not only asking questions, but systematically recording and

documenting the responses to probe for deeper meaning and understanding.

As on the interviewers details: In the beginning of the interview, it is important to make introductions, explain the purpose of the study, and put the respondent at ease. If you plan to audio

record the session, obtain the respondents permission and test the equipment to make sure it is working properly. The main responsibility is to listen and observe as you guide the respondent

through a conversation until all of the important issues on the interview guide are explored. Following

sample frame will be selected for the in depth interviews:-


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20-25 3 3 4 10

26-40 2 4 4 10

41-60 3 3 4 10

61-65 1 2 2 5

66 and

above

1 2 2 5

Total 10 14 16 40

Table 4: Sample for in depth interview

LIMITATIONS OF QUALITATIVE RESEARCH

It would take more time when compared to quantitative research.

Since mainly the behavior of the customer is analyzed it would be difficult to get in to quantitative data.

Qualitative processing/ analyzing

All data collected through qualitative research will be analyzed through transcript analysis. Set of

collected data will be processed to the computer database.

Common limitations of transcript analysis Remedies to solve the issues

Bias answers supplied Data analyzed of all age groups

Data collected could be scattered all over Computer will sort the data

1.4 PRESENTATION

The research details will be put into a suitable format that would be a report. Later on Glen Arbor

would hand in a presentation to Arpico PLC .The company will make sure that Arpico PLC are

monthly updated with the findings. Since the collected data will be in the form of a presentation we

will include a graphical approach and with use of excel sheets the data will be provided.


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1.5 Timing of the project

The Gantt chart below will show the time period that is required to carry out the project. 14-15 weeks

Research

Activity

Week

1

Week

2

Week

3

Week

4

Week

5

Week

6

Week

7

Week

8

Week

9

Week

10

Project

approval

Collection of

secondary

data

Collection of

Quantitative

research

Collection of

Qualitative

research

Data

processing

Presentation

of Data to

Arpico PLC

1.6 Estimated budget for the research.

Research Activity Cost

Collection of primary data:

Telephone calls 150,000

Online surveys 70,000

Depth Interviews 140,000

Secondary data:

External data 120,000

Internal data 90,000

Data processing 125,000

Presentation 75,000

Total 5,000,000

Word count : 4959 words, 12 sides of A4


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TASK 2


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Task 2

Slide 1

This presentation demonstrates how the relevant company (Arpico), its competitors and other companies communicate with their customers who are on the move. In addition this also focuses on the sources of information and their latest trends in how organizations get information from customers and vice versa. 1. The secondary data is used by Glen Arbor to evaluate how the rivalry companies To Arpico PLC would try communicate with the competitors. 2. The collection of the information will help in identifying the changing trends of how other Competitors will use to market messages to the customers on the move. 3. Usefulness and limitations of conducting The secondary research will be evaluated. 4.Glen arbor will help in showing Arpico Plc the other options which can be used and make it possible to acquire such data.


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Slide 2

Utilizing secondary research to identify communication methods preferred by customers when they interact with the organization, and their latest trends. Ex- Use of blogs and micro-blogs (Twitter)

Recognize and evaluate other sources of secondary information used by competitor organizations to communicate with customers. Ex- SMS alerts

Discussion of benefits and limitations of secondary research used by organizations. Hence we cover details of secondary research which is both internal and external to the

organization. Secondary research is the most easiest source as it is very quick and cheap.


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Slide 3

Internal secondary data. Data base The data variable will help Arpico PLc to obtain more customer information Annual report Customers past information can be gathered and collected. Emails The messages that have been communicated with the customers and their

responses to such mails. Feed back / suggestion box Can collect the suggested ideas of the customers and

identify the methods these customers would prefer in obtaining. External secondary data Facebook likes - How often customers are seen actively involved online. Newspapers/ Trade publications - Customer feedback for the marketed messages can be

identified. Market research organization reports Can collect the past information about customers

and their trends of communication. Social networks- To recognize which companies are actively involved in social media


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Slide 4

Due to the ICT penetrations worldwide Sri Lanka has evolved to be among the forerunners in an actively growing ICT environment

Due to communication devices being evolved it easy to access the Arpico Customers more quickly

Mobile Phone have greater access to social media such as Facebook , twitter , therefore customers are being updated instantly about products where ever they may be.

Smart phones having the access to mobile data instead if using routers / dongles the customers can easily access info. As they prefer.

Laptops being evolved to tabs are also used by the customers to obtain marketing messages while they are on the move.

Devices being innovated customers would prefer to obtain info. Within the shortest possible time.


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Slide 5

Database- Analyze trends in customers preference, buying behaviour, trends etc., however these information are from past and thus are outdated thereby reducing its reliability.

Twitter- Gain access to real time information regarding their customers and their preferences which could be useful feedback. However it is an open forum and thus each user could have their personal view thus leading to bias.

Annual reports- this helps the organization to maintain their accountability however they are based on past data and is highly subject to organizational bias.

Suggestion box- Option for customers to present their opinions and complains regarding the organization while hiding their identity. However this would be of little use to the company as it limits their ability to interact with the relevant customers and discuss the shortcomings.


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Slide 6

Blogs- A detailed understanding regarding a customers views, likes and dislikes. However this could lead to the company getting negative publicity if the blog promotes a bad image of the company and its product, which may not necessarily be true.

Competitor websites- Assess their rivals potential future plans and strategies based on the information they release. However this usefulness is limited as companies ensure not to share critical information openly.

Marketing research firms- These firms provide an independent appraisal of the market situation and trends therefore are unbiased. However they could be contracted by the competitors as well and thus critical information of the company could be leaked and hence confidentiality cannot be ensured.

Newspapers- this is an inexpensive source to obtain customer information and enables to identify customer reactions to advertisements. However these information could be outdated and irrelevant.


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Slide 7

Cargills Food City, a direct rival for Arpico Super Center, uses twitter to advertise and promote its products extensively. Given that tweets can be posted free and the presence of large number of tweets in Sri Lanka, makes this a very effective form of communication. They highly promote their value addition to the economy with their low price strategy.

Keells super involves heavy mobile involvement specially with marketing their online purchase and delivery option.


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Slide 8

E-mail- This is an effective way to keep in touch with customers directly and communicate with them with regards to promotions and offers. However the company could be blamed for spamming customers inbox with unwanted mails which are not expected by customers.

Facebook fan pages- Identify the popularity of their company and products among the FB users. However their opinions posted could be highly biased and is not directly comparable with other organizations.

SMS alerts- Allows the company to communicate with customers quickly and cheaply. However customers generally tend to ignore such SMS alerts and thus has a lower reach.

Newsletters- This enables the company to communicate with customers by providing many details. However is costly since printing has to be done in large quantities.


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Slide 9

Statistic reports- Provides company with a large set of information regarding the market and demographic trends. However this indicates past information and thus could be irrelevant to the current situation.

Social bakers- Indicates the company's popularity and position on social media. However only limited information could be obtained and more details can only be obtained if a payment is made.

Foursquare- A check in mobile app which could help customers identify any stores closer to its location and thus a company could attract customers to them through the app. This however is more friendly in developed countries and is less useful in other parts of the world.

Google ads- Company will promote itself by having ads placed on the main page of Google. However this is very expensive and payments are expected to be made per click.


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Slide 10

Secondary information means the facts are already analyzed. Thus less time needs to be spent and the information could be used directly.

Secondary information could be obtained more cheap and is more cost effective. Also given the fact that less time is spent the information could be utilized as soon as required unlike primary research where lot of ground work is required

Internet is a readily available source for secondary information and less effort is needed to reach a secondary information source.

Although secondary research are done for a different purpose altogether, however, some of their findings could be directly applied to the current project thus making the source more relevant.


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Slide 11

Information acquired via secondary sources is rarely directly useful for the given activity unless modified accordingly. Hence secondary is more irrelevant more often than not.

Secondary data is barely reliable since they are mostly obtained from outsiders and even if its internal they could be biased.

Secondary source is something that was used in the past for a different purpose and hence may be highly unsuitable to the current context given that the conditions are highly likely to be drastically different.

Although secondary sources have a time advantage, however this could be limited if they need waste modifications are reanalysis.


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Slide 12

Internet is a major source for secondary information. However the access is limited by various restrictions.

Only a sample of a particular piece of information is shared and the rest is restricted or undisclosed.

Privacy and confidentiality regulations makes sharing of certain information online as illegal and thus seeking access to them could lead to serious law suits.

Even when well detailed information is available their sharing is limited and thus a payment is expected to gain access to the full information.


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Slide 13

Although secondary information has the benefits of being cheap and quick, however their limitation of being highly irrelevant and unreliability is outweighing. In the current dynamic environment and given the rapid expansion in the IT sector, the validity of seeking for more secondary information is highly questionable. Even the availability of abundance of secondary information will not make them 100% reliable and relevant. Hence the ideal and the best alternative is to shift to primary sources, where it can be built from scratch and thus make it 100% suitable for the given requirement. Although it will take more time and money, they will prove effective once they are applied for the particular use.

Word count : 1555 words


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TASK 3


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3.0 Introduction Task 3

This briefing paper considers the strategic importance of using data analysis tools for Arpico Super

Center along with their database to gain insight into key customer data. This reports starts with

identification of the data analysis tools relevant to the company and how it can use it to gain more

insight into customers travel patterns and frequency of while on the move. In addition this also

considers the impact of data protection regulations to the company.

3.1 Strategic importance to the company of building data analysis tools

Different types and sources of data are available to the company with regards to the customers on

the move, this considers; details of customer travel patterns, usage and impact of social media on

the customers preference for communication, the level of interaction with regards to marketing

messages while on the move, mobile phone usage and their trends, different mobile communication

patterns etc.

Before starting data analysis it is important these forms of data are accurately collected and then

properly stored. All forms of data collected with regards to customers on the move many not be

used for the analysis, however storing them will not be a waste since they could prove handy with

regards to any further data analysis that has strategic implications, hence it is important that even

the minute collection of data is not discarded from storing.

The company should always consider digital or electronic collection of data and their subsequent

storage. This will prove effective when it comes to data analysis as data can be easily read and

analysed, when compared with hard copy storage of data. Thus the company should have strategies

in place to collect data electronically and storing them appropriately, such as, using a laptop for

questionnaires. Further it would be useful to store data separately for each customer base and then

analysed accordingly.

Data Base is a manual or computerized source of data relevant to marketing decision making about

an organizations customers (Wilson 2006)

3.2 Identify the relevant data analysis tools which the company could use

It is important that the database of the company is devised strategically rather than maintaining a

simple database containing personal details of customers. Therefore the database should go further

into the customer by identifying their communication preferences and patterns while on the move.

In addition it is important that the communication needs of the customers are sought out such that

a good relationship with the customers can be maintained.

There are various ways in which the company could choose to analyse customer data, such as-

Descriptive research- this helps describe the characteristics of the situation in which the

research is done. This research utilizes both qualitative and quantitative methodologies in

the studies done. This describes who, what, where how of a particular situation, however,

not what caused it.


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Exploratory research- this type of research is highly useful when the problem is not clearly

defined. Thereby this begins by investigation into the problem and thereby provides an

insight into the situation.

Causal research- this helps determine which variable is causing a particular behaviour. This

helps to identify the relationship between two variables and which variable is dependent on

the other.

Predictive research- this research helps predict the likelihood of a particular outcome. This

begins by defining the existing situation and based in that the future occurrence is predicted.

The company can consider many data analysis tools to research its customer database, some of

which are-

Box and Whisker Plot- A graphical representation of statistical data. This helps illustrate the

spread of a set of data. This technique tool is very useful because it helps manage a large

number of data easily. This shows summary information hence will not be useful if more

details are expected.

Check sheet- A structured form or sheet used to collect data especially for real time data

capturing. This is highly useful when the event under consideration repeats. This is a follows

a standard procedure thus will not be useful for singular and unique outcomes.

Control chart- A graphical representation of how a particular process changes overtime. This

represents the data on a timeline in order to indicate progress. This would help highlight

shortcomings in the process; however this uses past data and thus will be of limited use to

make future decisions, especially if the conditions are different.

Design of experiments- This deals with planning, conducting and interpreting tests to

identify the values of a parameter. This would help highlight the key factors in a process.

Histogram- A graphical representation of data that uses bars of different heights to indicate

the values. This is highly useful to obtain a summary of results with regards to large values

of data, however will be of limited use to identify the causes of the outcomes.

Scatter diagram- A graphical representation of two variables of data. This helps highlight the

relationship between two sets of data variables.

3.3 Data protection legislation and controls

In simple terms data protection can be identified as the legal control to access data stored in

computers. Data legislations control business from obtaining customer information and their usage

inappropriately. Thus any company or individual who has access to customer information should use

them responsibly in line with the data protection laws. Otherwise could be subject to legal suits and

could cause heavy damages.

Arpico Super center has a large database with critical customer information. Thus Arpico Super

Center has the responsibility to protect the data and at the same time use them efficiently. The

database of Arpico Super Center is merely a record of customer information and thereby is treated


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less strategically and thus is subject to lapse in protecting them. Hence the following are the major

short comings of Arpico Super Centers data management policies-

Each Arpico Super Center store maintains a separate data base with records of its customers

and thus has less integration which could lead to data duplication and inefficiency in storage.

Detailed customer records are only kept for the premium customers while the other set of

customers are ignored and hence the data could provide misleading results since a large

proportion of customers are ignored.

Some of the data are still stored manually as hard copies rather than digitally.

The IT system of Arpico Super Center is less sophisticated and has fewer features compared

to that of the competitors such as Keells. It lacks integration with the other aspects of the

company.

Data protection policies are not very robust; any staff member could log in to the system

and view records, the IT system is prone to phishing and hacking from external users, usage

of standard packages to record and store data and thus is not very supportive to the needs

of Arpico Super Center.

Arpico Super Center could adopt the following to improve its data protection policies-

Initially set up a data protection policy for the company which should be strictly followed

and implemented.

Training of staff to abide by data protection legislation and to use data more strategically.

Update the IT system to be more conducive to data protection.

Clear segregation of duties among staff with regards to which of them can have access to

data of customers

Continuous verification to ensure that the database is up-to-date and the customer

information are accurate.

3.4 Recommendations for the ethical usage of collected data

Although there are legislations governing the protection of data, the company is expected to act

beyond the legal requirements with regards to data protection to establish their ethical stance.

Therefore the company should take measures to protect the critical data even if there are no

legislations expecting to do so.

Some if the advantages of being ethical with regards to data protection are-

It will ensure that no laws are compromised since the company will be acting beyond the

legal expectations.

Good data collection and protection policies will help improve the customers confidence

and loyalty to the firm.


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Being ethical in data collection will pave way for more information being acquired since

integrity is established.

The limitations of choosing not to be ethical with regards to data projection are-

Could lead to compromising of legal requirements since the company would have no want to

protect the data beyond legal expectations.

Customers could lose trust on the company and could lead to shifting to competitors if they

are found to be more ethical with regards to data protection.

Not being ethical with regards to data collection could bring a great deal of negative

publicity.

3.5 Conclusion

A clear understanding of Arpico Super Centres approach to dealing with customers on the move can

now be achieved. It is now clear for the company with regards to what tools and methods it should

use in data analysis and also the approach it should take with regards to data protection. The simple

recommendation is that the company should give more strategic importance to data of customers

on the move along with their usage and protection.

Word count : 1524 words


35

Bibliography

Alan Wilson 2003, Marketing Research: An Integrated Approach, Harlow, Pearson

ARPICO annual report http://www.arpico.com/assets/anual-reports/RPC%202012-13.pdf

ARPICO local website, http://www.arpico.com/

ARPICO super centre review,2012

http://managementstudyguide.com/secondary_data.htm

http://mrciimraipur201214.wordpress.com/2013/07/17/sampling-methods/

http://www.cimlearningzone.co.uk/store/assets/files/247/original/MIR_SE_Report_Sept_2010.pdf

http://www.socialresearchmethods.net/kb/survey.php

interacitve360.wordpress.com

Researched on Alan Wilson 2006, Marketing Research: An Integrated Approach 2nd Edition, Prentice

Hall


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APPENDIX

Figure 1: Company Logo

A few partners, who set themselves up in a business as commission agents, export and import dealers

first emerged the business venture in a filling station. The beginning of this national institute was

modest. Today Arpico PLC can justifiably claim a place in the front rank of the countrys diversified business conglomerates.

The vision statement: To be a market driven, technologically oriented diverse group while focusing

the expectations of the customers and to ensure a continuous growth. The mission statement: To

exceed expectations of the customers.

Since of the latest years the company has diverse its business into seven main sectors with having

forty five companies in its group portfolio. Sectors namely the Retail sector, Manufacturing and

distribution, Plantation sector, Exports sector, Construction sector, Finance sector and Health care

sector. Focusing on the Retail sector of Arpico PLC this is one of the largest retailer of general utility

goods in Sri Lanka with the brand Arpico. Arpico Super centers has a network of over 25 showrooms

located in key towns island wide and Large format hyper market stores, popularly known as Arpico

super centers carry a wide range of household and grocery items under one roof.

Products and Services.

There are over 30,000 high quality items falling into the main categories of grocery, fresh fruits,

vegetables ,pharmacy ,wine and spirits, household items such as linen ,kitchenware ,electronics,

plastics ,toys, and many items to satisfy the household wants and in addition to all these Arpico super

centers offer a food court, banking facilities ,to create a friendly atmosphere to its existing and

potential customers.

Customer Base.

Arpico super centres has a network of over 25 showrooms located in key towns island wide .Offering

customers a wide range of house hold and grocery items. Their rapid expansion has ensured the strong

hold to a loyal customer base. Be it children or adult, Arpico super centres has something to offer

everyone. The segment of customers is mainly on the urban middle and upper middle class customers

and young adult customers has the focus for Arpico Super Centres. Apart of the above mentioned

customers there are seasonal customers that visits the outlets based on the occasions of the year.

Industry players and its performance.

The main competitors that possess a threat is Cargills, by its rapid expansion has been very evident. The outlets cater to middle and low income group category of customers. Cargills main strategy is low

price value addition to customers by way of purchasing at low price (purchasing economies of scale).

Cargills operates island wide with 232 outlets with all 24 districts in Sri Lanka. Cargills is the current

number one or market leader in the super market chains and currently poses a threat to the ordinary

boutiques operating island wide. This is mainly because of the strategy Cargills follows beating the

lowest price into the lowest. This will attract all walks of the population.


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The next being Keels Super operated by the number one business chain in Sri Lanka i.e John Keels

Holdings PLC. These super markets cater to the urban population as opposed to Cargills outlers.The

Keels Supper Centers are recognized mainly for its own meat products starting the range from Keels

and later acquisition of the Elephant House Sausages. The group expanded the outlets mainly in the

urban areas of the country. Keels Supper focused mainly in the upper middle class customers. Its

expansion was not rapidly penetrating the geographical towns in the country as opposed to the Food

City outlets. Keels Supper was not having the same expectations as compared to its direct competitor

Food City with low net margins and issues of sustainable returns. In view of the same Keels are

developing a mall concept to support the new and upcoming Super Market expansion.

Figure 2: Total market contribution

Figure 3: Arpico Group Pefromance

Future Outlook; ARPICO Group recently launched ARPICO Finance, ARPICO Insurance, ARPICO

Pharmaceuticals in the year 2013. Company expects to capture the market in the year 2015.

According to the Chairman Mr. Sena Yeddehige his future outlook for the entity is to see all the

sectors in the economy operating under the umbrella of ARPICO.

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Arpico 0thers

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