marketing research - walmart a case study

36
Research Design & Analysis “Walmart in Australia – A Case Study” Submission date: September 21, 2016 Submitted by Word Count – 4,000 Words Name Sakina Chappalwala Akash Sharma

Upload: sakina-chappalwala

Post on 12-Apr-2017

210 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Marketing Research - Walmart A Case Study

Research Design & Analysis

“Walmart in Australia – A Case Study”

Submission date: September 21, 2016

Submitted by

Word Count – 4,000 Words

Name

Sakina Chappalwala

Akash Sharma

Page 2: Marketing Research - Walmart A Case Study

TABLE OF CONTENTS

1. WAL-MART’S MANAGEMENT DECISION PROBLEM AND THE MARKETING RESEARCH PROBLEM

FOR EXPANSION INTO AUSTRALIA .................................................................................................3

1.1 BRAND ORIGIN................................................................................................................................3

1.2 THE DECISION PROBLEM FACED BY MANAGEMENT...............................................................................3

1.3 THE MARKETING RESEARCH PROBLEM.................................................................................................4

1.3.1 The Broad statement of the Market Research Problem.......................................................41.3.2 The Specific Components of the Market Research Problem.................................................4

2. IDEAL TYPE OF RESEARCH DESIGN...............................................................................................5

2.1 EXPLORATORY RESEARCH DESIGN........................................................................................................5

3. RATIONALE FOR VARIABLES TO BE INVESTIGATED......................................................................7

3.1 COMPETITION RESEARCH...................................................................................................................7

3.2 SEGMENTATION RESEARCH................................................................................................................7

3.2.1 Demographically Segmented Market..................................................................................83.2.2 Behaviorally Segmented Market..........................................................................................9

3.3 INSIGHTS ON EXISTING BRAND IMAGE..................................................................................................9

3.4 KEY BRAND COMMUNICATION ELEMENTS...........................................................................................10

3.5 DISTRIBUTION RESEARCH.................................................................................................................10

4. ROLE OF QUALITATIVE RESEARCH AND ITS TECHNIQUES...........................................................11

4.1 KEY BENEFITS OF QUALITATIVE RESEARCH FOR UNDERSTANDING THE MANAGEMENT PROBLEM......................11

4.2 IDEAL QUALITATIVE RESEARCH TECHNIQUE.........................................................................................11

4.2.1 Focus Groups Method........................................................................................................124.2.3 Social Media Monitoring....................................................................................................12

5. RECOMMENDED SURVEY METHOD...........................................................................................13

5.1 ELECTRONIC SURVEY METHODS........................................................................................................14

5.1.1 Email Surveys.....................................................................................................................145.1.2 Internet surveys using social media...................................................................................14

7. SUGGESTED SURVEY QUESTIONNAIRE..................................................................................15

8. SAMPLING PLAN FOR ADMINISTERING THE SURVEY.............................................................19

REFERENCES.................................................................................................................................22

APPENDIX:....................................................................................................................................26

Walmart in Australia - A Case Study2

Page 3: Marketing Research - Walmart A Case Study

1. WAL-MART’S MANAGEMENT DECISION PROBLEM AND

THE MARKETING RESEARCH PROBLEM FOR EXPANSION

INTO AUSTRALIA

1.1 BRAND ORIGIN

Wal-Mart is an American Multinational Retail Chain that started as a single discount store, selling the idea of more at everyday low prices and has now grown into the world’s largest retail giant. With nearly 11,500 stores across 28 countries, it has become a known name in households across the world (Wal-Mart Store, Inc 2016). Walmart’s entry into the Australian market has been long due, however there are some considerations that need to be addressed with a thorough marketing research.

1.2 THE DECISION PROBLEM FACED BY MANAGEMENT

As stated in Malhotra (2013), Marketing research implies the identification of the management decision problems raised by the decision makers, market experts, secondary data analysis and an in-depth qualitative research. The problem will then need to be solved by identification of relevant qualitative and quantitative data and its analysis.

When entering Australia, the biggest challenge faced by Walmart’s management is that of identifying a strategy to survive in the world’s most concentrated supermarket industry where the duopoly of Coles and Woolworths threatens the entire retail industry (Chung 2015). In addition to focus on achieving ‘everyday low prices’ from its new Australian suppliers, Walmart will need to thoroughly research the market potential and market share statistics in order to compete with these two dominating companies (as seen in Figure 1, p.4). The duo commands unprecedented power in Australia, the kind that Walmart has in USA which will not be operationally viable if not dealt with strategic efficiency.

The other major concern revolves around Walmart’s existing brand in Australia which is dampened by the accusations of underpaying

Walmart in Australia - A Case Study3

Page 4: Marketing Research - Walmart A Case Study

employees, unfair customer management, exploitation of suppliers in developing countries as also predatory competitive strategies that are causing bankruptcy for most small-scale competitors (Morillo, Mcnally & Block 2015). The management’s positive attitude towards this research is imperative for a successful resolution of the identified problem.

1.3 THE MARKETING RESEARCH PROBLEM

Walmart began building Supercentres in 1988 in The US and grew to understand the market needs and demands gradually over a period of 50 years (Walmart Store, Inc 2016). On the other hand, Australian home brands like

Coles and Woolworths founded in 1914 and 1924 respectively have a much deeper

understanding of the Australian customers and are almost 100years ahead of Walmart in their

market research. Adopting an analytical research model with verbal and graphic elements is

the recommended research approach.

1.3.1 THE BROAD STATEMENT OF THE MARKET RESEARCH PROBLEM

The marketing research aims at obtaining information required to combat the competitive

strategies deployed in the market and how this information can be sourced from secondary

data as part of the preliminary research.

1.3.2 THE SPECIFIC COMPONENTS OF THE MARKET RESEARCH PROBLEM

The procurement of objective evidence required by the management at Walmart needs to be

relevant, accurate, reliable and timely based on Malhotra’s Market research classification

seen in figure 1 includes:

1. Competition Research about existing market share and consumer perceptions

2. Segmentation research in identifying the different potential segments for example –

segments such as groups preferring locally sourced fresh produce, bakery, deli and dairy

products as opposed to the apparel and electronic divisions which can be sourced

internationally

3. Information studied from a cause-effect perspective to gain qualitative insights on existing

Brand image

4. Brand Communication Elements that attract end consumers

5. Distribution Research to achieve lowest possible prices

Walmart in Australia - A Case Study4

Page 5: Marketing Research - Walmart A Case Study

2. IDEAL TYPE OF RESEARCH DESIGN

In order to identify the most apt research design, construction of a marketing research design for developing an approach to the problem is important. This acts as a roadmap for conducting this marketing research project. Figure 2.1 illustrates the two basic research design options

Malhotra (2013) gives us – Exploratory Research Design and Conclusive Research Design

2.1 EXPLORATORY RESEARCH DESIGN

Where conclusive research would help Walmart understand the depth of the market competition it faces in Australia, the exploratory research

Walmart in Australia - A Case Study5

Page 6: Marketing Research - Walmart A Case Study

design will be a more meaningful type of research owing to its flexibility and adaptability benefits. With the information needs loosely defined, exploratory research will allow the management to understand the reason for the nuances in the market as well as the points-of-difference banked by the competitors.

As seen earlier, the problem of fierce competition identified is heavily researched and evidenced by industry experts like Roy Morgan, Business Insider and others of their like. As observed in figure 2.2, the duopoly of Coles and Woolworths commands a total of approximately 70% market share as of December 2015, with the German Aldi and Australian IGA standing at a distant 3rd and 4th spot. In a market as tightly held as this, Walmart will need to reinvent itself on various front.

Australia’s Supermarket’s Share of Market 2007 - 2015

Figure 2.2 – Australia Supermarket’s Share of Market 2007 – 2015 Source Roy Morgan 2016

The exploratory research should be followed by a conclusive research to assist the decision

makers in evaluating the proposed research findings and implementing the most suited

recommendation. It provides a cost effective platform for analyzing secondary data and

Walmart in Australia - A Case Study6

Page 7: Marketing Research - Walmart A Case Study

preparing the foundations for qualitative primary research. Sizing up the market and its

potential at the time of implementing an expansionist move to avoid any failures should be

the primary objective of the research design. Surveys of online focus groups and examination

of social media content are some of the recommended methods under exploratory research.

This is aimed at formulating a well-defined management problem, develop hypothesis to

prepare for any alternative courses of action, identification of variables that could help

generate meaningful insights into the problem and make room for further research.

The marketing research approach best suited for Walmart at this initial stage should comprise

of external suppliers of information including – limited service suppliers that provide access

to field services, focus groups, qualitative services and other analytical services (Eg.

Published Material, Computer databases etc.) as also full service suppliers such as internet

and social media platforms. Syndicated Service suppliers such as the Australian Market &

Social Research Society, Roy Morgan Research, Australia and The Nielson Co, UK are to be

utilized for gathering meaningful information.

3. RATIONALE FOR VARIABLES TO BE INVESTIGATED

Looking at some figures it was found that Walmart grossed US $482 billion in 2015 (Justin,

G 2015). That is, if Walmart was a country, it would have the world’s 28th largest GDP

(Snyder 2015). However, the retail giant has also been battling issues around it’s vindicated unethical practices from 2003 resulting in 56% of Americans voting on Zogby for the notion “Walmart is bad for America” (Morillo, Mcnally and

Block 2015). At the same time, home brands Coles and Woolworths are not new to such flak

(Sydney Morning Herald 2016).

3.1 COMPETITION RESEARCH

As seen previously in figure 2.2, Coles and Woolworths are Walmart’s biggest competitors commanding 70% of the Australian Supermarket’s market share. Interestingly, of the four major supermarkets – Woolworths, Coles, Aldi and IGA (in the order of market share), IGA has the most loyal customers according to a Roy Morgan press release (2016). Beaton-Wells

Walmart in Australia - A Case Study7

Page 8: Marketing Research - Walmart A Case Study

(2015) notes how Woolworths was falling behind Coles in 2015 but it has now been reversed. Also, Aldi’s share of business is growing overtime capturing some of that from the duopoly whereas brands like IGA enjoy the benefit of proximity and have been able to only scratch the surface so far.

In her article, Phillipov (2015) acknowledges the significant public criticism faced by both Coles and Woolworths from farmers, politicians as well as media. The latest findings from Roy Morgan Research (2016) show that a whopping 77%

of the Australian consumers visit at least two different supermarkets in an average four

weeks. It emphasizes on how supermarket loyalty is close to inexistent in this part of the

world. This presents an objective case for Walmart Supercentres’ expansion into Australia.

The variables Walmart will need to look into closely therefore include:

3.2 SEGMENTATION RESEARCH

In their article, Panday and Pathak (2013) identify a supermarket’s desire for stability in its

segment’s structure. This is particularly difficult to achieve given the heterogeneous needs

and changing customer preferences over a period of time. In order to identify key potential

segments for Walmart, the market research should divide the market in two main variables:

3.2.1 DEMOGRAPHICALLY SEGMENTED MARKET

The inherent competitive advantage established by Walmart is that of being a one-stop shop

for buyers ranging from young adults to senior citizens (Walmart Stores, Inc 2016). This

qualitative research should look at a smaller but more focused group of data providers that

assist in generation of rich descriptions to the assessed problem (Connelly 2013). When

conducting geo-demographic coding with the sample audience segmented demographically,

according to Smith (2013, p. 76) the target segments to be investigated should include-

Age Group : 18 – 35 years

Gender : Primarily Women

Walmart in Australia - A Case Study8

Page 9: Marketing Research - Walmart A Case Study

High literacy rate : 99% in youth aged from 15-24 years and 96% adult literacy rate (UNESCO 2016),

Economic Status :

Comprising of mainly

students and young families

who would prefer everyday

low prices. The average

weekly earnings of

$1,141/household (RBA

2016)

Ethnic Backgrounds :

Australians are familiar with

English but come from a

highly diverse number of

backgrounds

Figure 3.1 – Australian Economy Snapshot Source: RBA 2016

3.2.2 BEHAVIORALLY SEGMENTED MARKET

When segmenting the market behaviorally, it is important to understand the trends existing in

the market and the future change possibilities (Chekwa, Martin and Wells 2014). The target

segments to be investigated include:

1. Attitudinal Data – For. E.g.: segments such as those preferring locally sourced products

2. Media Consumption insights – For. E.g.: Smartphone Savvy Consumer Segments: More

than 60% of Australians use internet on their smartphones more than once a day

Walmart in Australia - A Case Study9

Page 10: Marketing Research - Walmart A Case Study

3. Customer convenience preference of Supercenters (Walmart) over Supermarkets (Coles

and Kmart)

4. Shift in demand towards online retailing with substantial access to computers and

internet

5. Impact of loyalty programs like Coles’ Flybuys and Woolworths’ Rewards Card

The change in consumer communication preference over a period of time has inclined

towards social media platforms which will form the foundations of this research (Patino,

Pitta, Quinones 2012). A close look at the online focus group’s user pages on these platforms

will allow the exploratory research to delve closely into the components of the research

identified previously.

3.3 INSIGHTS ON EXISTING BRAND IMAGE

Even though Walmart is easily the World’s largest retail chain, it is definitely not the world’s

most appealing organization (Snyder 2015). From 2003 Wal-Mart has been in bad light with

setbacks including voters blocking various planned supercenter launches, class-action gender

discrimination suits, and exploitation of employees on count of lower than admissible wages

and so on (Lake research partners 2005). This can prove detrimental for Walmart’s survival

when launched in Australia posing questions about what is the existing brand equity of the

brand in this market. This therefore is a major variable that needs investigation.

Walmart’s supercentre will need to identify key elements that reflect its unwavering

commitment bring value to all its stakeholders.

3.4 KEY BRAND COMMUNICATION ELEMENTS

As seen in figure 3.2, the key brand characteristics to be investigated will include both

tangible and intangible attributes (Duncan 2005 as cited in Keller 2013)

Walmart in Australia - A Case Study10

Page 11: Marketing Research - Walmart A Case Study

Despite the various controversies that surrounded Walmart, Kirklin (2006, p.2) claims that

the company is not all evil and these accusations are a birth child of the sheer size of the

organization (as cited in Morillo, Mcnally and Block 2015). With 269 Walmart stores closing

down in the biggest-ever mass closing, the retail giant is already seen making room for it

digital operation expansion (Genslar 2016). This will help in improving and establishing a

progressive and market leader brand image in the Australian Market.

Innovative location-based marketing allows the marketers to reach the buyers right where

they are. A further research into consumer brand perceptions, brand management techniques,

adoption of digital advertising campaigns and even brand endorsement prospects is essential

(Phillipov 2016).

3.5 DISTRIBUTION RESEARCH

Assessing alternate supply option is another important variable in this exploratory research.

With almost 70% of Walmart’s products sourced from China, a lot of American and

European suppliers closed down (Chan 2011). This was to achieve lowest possible prices for

its consumers. However, when it comes to fresh produce and grocery items, Walmart will

need to source locally. The research needs to identify the most suitable farmers and suppliers

especially given the recent controversy faced by Coles on ethical sourcing.

4. ROLE OF QUALITATIVE RESEARCH AND ITS

TECHNIQUES

Walmart in Australia - A Case Study11

Page 12: Marketing Research - Walmart A Case Study

With the identification of exploratory research design, the intent of this report is to initiate

geo-demographic coding that will combine both internal secondary data sources (i.e.

Walmart’s customer databases, data warehousing and mining, CRM and Database marketing)

and external secondary data sources (i.e. Syndicated Data, Business Data, Government Data

and Social Media sources) identified by Malhotra (2013). Syndicated sources of secondary

data are free of bias to a large extent when compared to primary data (Bãlãšescu 2014)

making the qualitative research effective as the conclusion may differ from what was

expected when the research started.

4.1 KEY BENEFITS OF QUALITATIVE RESEARCH FOR UNDERSTANDING

THE MANAGEMENT PROBLEM

1. Requires a comparatively smaller sample size than quantitative research and is

relatively cost efficient (Alvesson 2003)

2. The three key features of qualitative research that set it apart as identified by

Branthwaite and Patterson (2011) are:

i. A conversation – An Impersonal dialogue

ii. Active listening – Assessment of any reluctance or suppressed emotions

iii. An Interactive Rapport – Deeper insights once comfort-level is achieved

3. Assists in revealing the differences between the foreign and the domestic market

4. Makes headway for in-depth conclusive research which is quantitative in nature

5. Feelings and emotions that could be used further in advertising research (Silverman

2011)

4.2 IDEAL QUALITATIVE RESEARCH TECHNIQUE

The recommended qualitative research procedures curated in Malhotra (2013) are seen in

figure 4.1. Walmart must identify qualitative research methods that adopt a direct approach,

wherein the participants are aware of the purpose of the research (Alvesson 2003).

An appropriate deployment of the direct qualitative research methods of Focus group

interviews is more likely to provide insights regarding market share, market competition and

consumer preference for Walmart. Incorporation of social media monitoring would further

facilitate recognition of consumers’ buying behaviour and their openness to welcome the

American Walmart culture into Australia (Frost national bank 2010).

Walmart in Australia - A Case Study12

Page 13: Marketing Research - Walmart A Case Study

4.2.1 FOCUS GROUPS METHOD

The dynamic emergence of online focus groups method poses a better suited method due to

its ease in recruiting interviewees, building rapport, monitoring and track-keeping. It is

touted to provide an understanding of a sample of individuals who are the major buyers of

products and services from the Australian super market heavy weights (Coles and

Woolworths). Such focus groups also help interpret previously obtained quantitative results

as their responses are not restricted by physical intimacy of the interviewer. (Alvesson 2013).

4.2.3 SOCIAL MEDIA MONITORING

Use of platforms like Pinterest, Instagram, Snapchat, Facebook and Twitter is increasingly

adopted by the Marketing research fraternity primarily because of their intuitive insights into

changing trends (Malhotra 2013 as cited by Robertson 2014). Social media monitoring with

sentiment analysis would closely assist in reflecting Walmart’s existing brand image as well

as that of its competitors. Based on the source of content, the social media posts can be coded

as positive, negative or neutral in order to collate responses from various sources regarding

similar research questions (Poynter 2011, p. 23).

5. RECOMMENDED SURVEY METHOD

Walmart in Australia - A Case Study13

Page 14: Marketing Research - Walmart A Case Study

Surveys are one of the most effective ways of collecting descriptive quantitative data. As

seen in figure 2.1, this research method falls under the conclusive research category and can

help Walmart’s management in assessing the problem and evaluating the due course of action

with evidence. Surveys are one of the most efficient sources for collecting descriptive data

that can help define the customer personality, behaviour, needs and expectations (Connelly

2013). The insights from qualitative research are used in formulation of questions for such

surveys. Surveys are therefore conducted to find out who the consumers are, how they behave

and why they behave in certain ways. Malhotra (2013) identifies some effective Survey

Methods seen below in figure 5.1-

Figure 5.1 – A Classification of Survey Methods Source: Malhotra 2013, Fig 7.4, p. 187

The criteria for selecting a survey method as listed by Malhotra (2013), when applied to

Walmart’s case, suggests that electronic survey methods of E-mail surveys and Internet

Surveys would be the speediest, most cost efficient and free of interviewer bias. Tailoring the

market research methods deployed to understand the scale of market potential and consumer

preference, in order to investigate the key brand communication characteristics, should be

Walmart in Australia - A Case Study14

Page 15: Marketing Research - Walmart A Case Study

strongly considered by Walmart’s management (Segal and Giacobbe 1994). Sensis (2016)

demonstrated comprehensively that the internet usage in Australia was on the rise.

5.1 ELECTRONIC SURVEY METHODS

Coles and Woolworths have stores all over Australia and in order to connect with their

customer base a large scale survey would need to be done. Electronic surveys are one of the

best methods to reach such a large audience. It is especially essential for Walmart as it is

trying to conduct a pre-market quantitative research with social desirability being the issue

and not sample control. It will aid Walmart in understanding the expectation and preference

of consumers better.

5.1.1 EMAIL SURVEYS

Email surveys would aid the company in gathering information regarding price, product and

purchase patterns directly from consumers. The reminder or follow up process would also

become simple with the involvement of electronic devices thereby reducing field work and

interviewer bias (Malhotra 2013). These processes should be carried out in a manner that

involves hard-to-reach audience.

5.1.2 INTERNET SURVEYS USING SOCIAL MEDIA

The study of independent variables and hard facts provide the basis of reliability and validity

in any research project (Sapp 2006). Australia had been consistently listed at or near the top

of social media usage rankings. According to a survey conducted by Deloitte, 80% of

Australian survey respondents used social media in 2015, up from 65% in 2012 (Deloitte

2015). Furthermore, Sensis 2016 reported 87% of Australians access the internet daily.

Therefore, the positive figures regarding internet accessibility and increasing dependence on

social media point out towards the fact that internet surveys using social media platforms

would be a viable medium to gather information on consumer behaviour and preferences.

6. SUGGESTED SURVEY QUESTIONNAIRE

Walmart in Australia - A Case Study15

Page 16: Marketing Research - Walmart A Case Study

Personal Information :

Name:Age: ( ) <18 years ( ) 18-25 years ( ) 25-40 years ( ) 40-65 years ( ) >65 yearsGender: ( ) Male ( )FemaleContact Number:Address:

Questionnaire:

1. I visit the supermarket at least-

Once a week

More than once a week

Once in two weeks

Once a month

2. How far do you travel to your primary grocery store?

Under 2 Kilometers

2 to 10 Kilometers

More than 10 Kilometers

3. My typical weekly budget for grocery and home shopping falls in the range of:

$ 0 - 50 $50 -100 $100 - 150 $150 - 200

4. Based on the below mentioned elements, please indicate how important are they to

you

Walmart in Australia - A Case Study16

Page 17: Marketing Research - Walmart A Case Study

5. How likely are you to visit a supermarket because of specials or promotions being

advertised, 1 being not likely at all and 7 being extremely likely?

1 2 3 4 5 6 7Not at all likely Extremely likely

6. Below are a number of statements regarding attitudes to shopping. Please read these

statements and indicate your extent of importance associated with each of them

Walmart in Australia - A Case Study17

Page 18: Marketing Research - Walmart A Case Study

7. The supercentre’s community engagement is an important factor in selecting my

preferred shopping spot

8. How would you rank the following retailers in terms of your personal brand

preference?

9. How satisfied are you with the prices of the products you shop from the retailers you

ranked No. 1 in question 8?

10. How would you rate the retailer you ranked No. 1 in question 8 on the following

elements of the store’s ambience?

11. Choose your preferred shopping platform for the listed categories?

Walmart in Australia - A Case Study18

Page 19: Marketing Research - Walmart A Case Study

12. How likely are you to prefer a supercentre (Everything from groceries, apparels,

electronics to furniture under one roof) over supermarkets (Different stores for

groceries, apparels, electronics, furniture etc.?

13. Have you heard of Walmart Supercentres?

Yes No

14. If you answered ‘Yes’ for question 10, how would you feel about Walmart’s

introduction in Australia? Please click on the option

15. How likely are you to try Walmart Pay, a new mobile payment platform like Apple

Pay?

Walmart in Australia - A Case Study19

Page 20: Marketing Research - Walmart A Case Study

7. SAMPLING PLAN FOR ADMINISTERING THE SURVEY

Sampling innovations have changed the way statisticians thought about capturing data from

large populations (Brick 2011). Sampling is the observation of some part of a population to

get an estimation of the whole population pertaining to the findings relating to the identified

management decision problem (Thompson, 2012). Theoretically, there are two types of

sampling techniques:

Probability sampling Non probability sampling

The 20th century witnessed a dramatic shift to probability sampling replacing the full

enumeration of non-probability sampling. In more recent times, online sampling has become

Walmart in Australia - A Case Study20

Page 21: Marketing Research - Walmart A Case Study

easier to target a more select sample with increasing number of people responding to them.,

thereby giving us the third sampling technique:

Internet Sampling via Social Media

The Sampling Design Process laid down by Malhotra & Birks (2007):

Figure 7.1 The Sampling Design Process Source: Malhotra and Birks (2007)

Designing a sampling process for Walmart’s international marketing research is a challenging

task as the sample is quite large. Hence, the sampling should be done in a way that the

potential sample is chosen randomly from the curated target segments.

7.1 TARGET POPULATION

Age Group: 18 – 35 years Gender: Primarily Women Economic Status: Comprising of mainly students and young families who would

prefer everyday low prices (EDPL).

7.2 SAMPLING FRAME

It is the representation of the elements needed for the target population. The sample frame is

to be obtained from the available syndicated sources as there is not much data available on

Walmart in Australia - A Case Study21

Page 22: Marketing Research - Walmart A Case Study

official government websites. This will require provision of a detailed description of the

desired retail shopper Walmart wishes to target and any known buying habits that are

preferred by the retail giant.

7.3 SAMPLING TECHNIQUE

Sampling is an essential step of the process of a typical marketing research. Based on the

nature of the identified population and the data that is being collected through sampling of the

population, there are several ways for drawing a sample. Some of the sampling techniques are

listed below:

Figure 5.2 Sampling Techniques Source: Malhotra and Birks (2007)

Probability sampling on the other hand is the method in which probabilistic chance of

selection of each element of the population is fixed and enjoys the benefits of higher

accuracy, projectable results and stratification (Malhotra 2013). In favor of Internet

sampling, Market Research Association’s Research Industry Index (2014) reports that more

than 50% of primary research is now done online.

Thus, the two prominent techniques identified for Walmart’s market research needs include:

Stratified sampling - The population is divided into various strata and then elements are

randomly selected from each stratum. This will balance the precision and sampling costs need

for Walmart (Stratified Sampling 2008).

Internet Sampling via Social Media- With the surveys at the tap of their fingers, online

surveys have been on a rise. With more than 79% of Australians under 55 years of age,

owning smartphones (Deloitte 2015, seen in figure 2 – Appendix A), online sampling will

Walmart in Australia - A Case Study22

Page 23: Marketing Research - Walmart A Case Study

help drastically in engaging internet users in more rewarding online surveys resulting in

quality samples. The use of survey routers proposes in-the-moment invitation of internet

surfers to surveys via online banners, interstitials(pop-ups) and google ad words and more on

social media platforms (Brigham, Fallig and Miller 2014).

SAMPLING SIZE

Sampling size will be based on the qualitative and quantitative research that has been done to

make sure that all the elements are included in the study. Methods, like Neyman allocation

should be used to select the ideal sample size of the strata (Cingi 1994).

SAMPLE EXECUTION

All the details in sample design should be implemented carefully so that there is no chance of

error. Linking every stage of the Sampling plan to the management and research problem

would serve to provide a more meaningly understanding of the perspective for generation of

models, research questions as well as analysis (Silverman 2011)

REFERENCES

‘Stratified Sampling’ 2008, n.p.: Sage Publications, Inc, Gale Virtual Reference Library, EBSCOhost

Beaton-Wells, C 2015, ‘Australian supermarket competition is great for consumers but it could ruin the economy’, Business Insider, The Conversation, 7 July, retrieved on 20 August 2016, <http://www.businessinsider.com.au>

Branthwaite, A and Patterson, S 2011, ‘The power of qualitative research in the era of social media’, Qualitative Market Research: An International Journal, Vol. 14 Iss: 4, pp.430 – 440

Brigham, N Fallig, M and Miller, C 2014, 'The Impact of Survey Routers On Sampling and Surveys', Journal Of Advertising Research, 54, 4, pp. 381-387, Business Source Complete, EBSCOhost, retrieved 18 September 2016

Walmart in Australia - A Case Study23

Page 24: Marketing Research - Walmart A Case Study

Chan, A 2011, Walmart In China, Ithaca, N.Y.: ILR Press, eBook Collection (EBSCOhost), EBSCOhost, retrieved 13 September 2016

Chekwa, E, Martin, J, & Wells, K 2014, 'Riding on the waves of sustained competitive advantage: Consumers’ perspectives on Walmart Corporation’, International Journal of the Academic Business World, vol. 8, no. 2, pp. 13-25

Chung, F 2015, ‘Supermarket monsters: How Coles and Woolworths suffocate us’, News.com.au, 18 June, retrieved on 1 September, < http://www.news.com.au/finance/business/retail/supermarket-monsters-how-coles-and- woolworths-suffocate-us/news-story/c901feb4f6c255d3a6b613140cbea30c>

Connelly, M. L 2013, "Demographic data in research studies." MedSurg Nursing - Expanded Academic ASAP. July-Aug, retrieved 7 September 2016, <http://ezproxy.deakin.edu.au/login?url=http://go.galegroup.com/ps/i.do?p=EAIM&sw=w&u=deakin&v=2.1&id=GALE%7CA341687270&it=r&asid=5f3856f88968e3eb70ebafe72c07435c>

Davis, L, & Hodges, N 2012, 'Consumer shopping value: An investigation of shopping trip value, in-store shopping value and retail format', Journal Of Retailing And Consumer Services, 19, pp. 229-239, ScienceDirect, EBSCOhost, retrieved 13 September 2016.

Finn, A. 2001, Mystery shopper benchmarking of durable goods chains and stores. Journal of Service Research, 3, 310–320

Gensler, L 2016, 'The World's Largest Retailers 2016: Wal-Mart Dominates But Amazon Is Catching Up', Forbes.com, p. 1

Gummesson, E 2005, ‘Qualitative research in marketing: Road‐map for a wilderness of complexity and unpredictability’, European Journal of Marketing, Vol. 39 Iss: 3/4, pp.309 – 327

Hill, C. W. L. 2015, International Business Competing in the Global Marketplace, 10th edn, McGraw Hill Education, New York.

Justin, G. D 2015, ‘Walmart’ – Research Starters, Salem Press Encyclopedia, January, accession number 89402704, accessed 16 August 2016, Business Source Complete, EBSCOhost.

Kadilar, C, & Cıngı, H 2009, Advances In Sampling Theory : Ratio Method Of Estimation, [Saif Zone, Sharjah, U.A.E.]: Bentham Science Publishers, eBook Collection (EBSCOhost), EBSCOhost, retrieved 14 September 2016

Keller, K.L 2013, Strategic Brand Management: Building, Measuring and Managing Brand Equity, 4th edn, Pearson Education Inc., New Jersey, USA

Walmart in Australia - A Case Study24

Page 25: Marketing Research - Walmart A Case Study

Lake, C, Mermin, D and Wiefek, N 2005, ‘Re-branding Wal-Mart’, Social Policy, Fall 2005, Lake Research Partners, retrieved 21 August 2016, < http://ezproxy.deakin.edu.au/login? url=http://search.ebscohost.com/login.aspx?direct=true&db=eue&AN=19992523&site=ehost-live&scope=site>

Lamb, C, Hair, J, & McDaniel, C 2005, Essentials Of Marketing, n.p.: Cincinnati, Ohio : South-Western ; London : Thomson Learning, 2005., DEAKIN UNIV LIBRARY's Catalog, EBSCOhost, retrieved 13 September 2016.

Lijadi, A, & van Schalkwyk, G 2015, 'Online Facebook Focus Group Research of Hard-to-Reach Participants', International Journal Of Qualitative Methods, 14, 5, pp. 1-9, Academic Search Complete, EBSCOhost, retrieved 15 September 2016

Manolicã, A and Roman, T 2012, ‘Mystery shopping research – Seeing the company’s performance through the eyes of the customers’, Scientific Annals Of The 'Alexandru Ioan Cuza' University Of Iasi: Economic Sciences Series, 59, 2, pp. 105-112, SocINDEX with Full Text, EBSCOhost, retrieved 7 September 2016.

Mattsson, J 2012, 'Strategic insights from mystery shopping in B2B relationships', Journal Of Strategic Marketing, 20, 4, pp. 313-322, Business Source Complete, EBSCOhost, retrieved 13 September 2016

Morillo, J, McNally, C, & Block, W 2015, 'The Real Walmart', Business And Society Review: Journal Of The Center For Business Ethics At Bentley College, 120, 3, pp. 385-408, Philosopher's Index, EBSCOhost, viewed 12 September 2016

Nash, S 2016, ‘Loyalty Pays but not much’, Money (Australia Edition), Rewards, 1 June, p.2

Pandey, J, & Pathak, D 2013, 'A Predictive Methodology of Rough Set Theory Used to Analyze Market Segmentation and Competitive Environment for Supermarket', IUP Journal of Marketing Management, vol. 12, no. 3, pp. 52-62

Patino, A, Pitta, D. A, Quinones, R 2012, ‘Social media's emerging importance in market research, Journal of Consumer Marketing, vol. 29, issue 3, pp. 233 - 237

Phillipov, M 2016, ‘‘Helping Australia Grow’: supermarkets, television cooking shows, and the strategic manufacture of consumer trust’, Agriculture and Human Values, volume 33, Issue 3, pp 587–596, doi:10.1007/s10460-015-9643-6

Poynter, R 2011, ‘Chatter matters’, Marketing Research, vol. 23, no. 3, pp. 22-28.

RBA - see Reserve Bank of Australia, Australian Economy Snapshot, Department of Research 2016, RBA, September 8, retrieved on 8 September <http://www.rba.gov.au/snapshots/economy-snapshot/>

Walmart in Australia - A Case Study25

Page 26: Marketing Research - Walmart A Case Study

Robertson, N 2014, ‘Study Guide – Topic 2: Developing a research design and use of secondary data’, MPK701 - Research Design and Analysis Coursework, Deakin University, Australia

Roy Morgan Research 2015, Supermarket Loyalty: What’s that?, press release, 8 September, Roy Morgan Research Australia, retrieved 24 August 2016, <http://www.roymorgan.com.au/findings/6442-supermarket-loyalty-whats-that-201509072312>

Roy Morgan Research 2016, Supermarket Sweep: Aldi’s share of Aussie Market still rising, 15 April, Roy Morgan Research Australia, retrieved 24 August 2016, <http://www.roymorgan.com/findings/6762-supermarket-sweep-aldis-share-of-aussie-market-still-rising-201604142258>

Sapp, M 2006, Basic Psychological Measurement, Research Designs, And Statistics Without Math, Springfield: Charles C Thomas, eBook Collection (EBSCOhost), EBSCOhost, viewed 12 September 2016

Segal, M.N. and Giacobbe, R.W. (1994) ‘Market segmentation and competitive analysis for supermarket retailing’, International Journal of Retail & Distribution Management, 22(1), pp. 38–48. doi: 10.1108/09590559410051395

Semiz, BB 2016, 'Comparison of Stratified Sampling and Quota Sampling in Terms of Population Mean', Proceedings of the Multidisciplinary Academic Conference, pp. 97-103

Silverman, D1 2011, Qualitative Research: Issues Of Theory, Method And Practice, n.p.: Los Angeles, Calif. ; London : SAGE, 2011., DEAKIN UNIV LIBRARY's Catalog, EBSCOhost, retrieved 13 September 2016.

Smith, W 2013, Student Handbook to Economics: Entrepreneurship, EJB Publishing Services, Yurchak Printing, Landisville, Pa, USA

Snyder, B 2015, 9 Facts About Wal-Mart That Will Surprise You, Fortune.com – 6th June 2015, accessed on 5th January 2016,<http://fortune.com/2015/06/06/Wal-Mart-facts/>

Thompson, SK 2012, Wiley Desktop Editions : Sampling (3), Wiley, Somerset, US. Available from: ProQuest ebrary, retrieved 14 September 2016

Toscano, N and Schneiders, B 2016, ‘Woolworths Wages in doubt after coles scandal’, Sydney Morning Herald, 1 June, retrieved on 6 September 2016, <http://www.smh.com.au/business/workplace-relations/woolworths-wages-in-doubt-after-coles-scandal-20160601-gp9cy6.html>

Wal-Mart.com 2016, About Us- Our Business, accessed 24 August 2016, <http://corporate.Wal-Mart.com/our-story/our-business>

Walmart in Australia - A Case Study26

Page 27: Marketing Research - Walmart A Case Study

APPENDIX:

Smartphone Ownership in Australia 2015 (Under 55 years of Age)

Walmart in Australia - A Case Study27

Page 28: Marketing Research - Walmart A Case Study

Figure 2 – Ownership of Smartphones by Australians under 55 years of age Source: Deloitte 2015

Walmart in Australia - A Case Study28