Posted: April 1st, 2015

Market research/ Business research method

Paper Outline

1. Introduction
2. Objectives

• Research

1. Determining factors
2. Legal aspects
3. Demand
4. Population distribution
5. Budget
6. conclusion

Introducing a new Carrefour Branch in RasAlkhaimah will improve sales growth and profitability

Introduction

Ras Al khaimah is a very potential destination for establishing a new Carrefour branch. This is because there are no other shopping outlets that match Carrefour in the region. The existing Carrefour branch in Al Manar Mall has already created the familiarity that is required for the establishment of a new business. Therefore, Carrefour has a competitive advantage over the rest of the competitors because potential customers are aware of its products and services. The products offered by Carrefour match the needs of Ras Al Khaimah residents. For instance, the people love a place where they can shop all their household goods under one roof. There is no establishment that offers this service. Therefore, people have to travel to Al Manar Mall to shop from Carrefour. Introducing this new branch will save them time and cost of travelling. It will experience a ready market from the existing customers and create a new market. The new market existsfor people who will find it convenient to shop due to the short distance involved (Oxford Business Group, 2011).

The study not only covers the probability of growing sales through the new branch, but also measures the level of satisfaction derived from the existing branch. The feedback obtained is a good strategy for increasing sales. This will be possible by improving on the shortcomings to gain a competitive advantage (Zott&Amit, 2008). Based on the performance of the existing branch, the new branch is likely to pick up over a period of less than a year.

Objectives

The study will establish whether RasAlkhaimah residents are interested in the products offered by Carrefour. It will find out the lifestyles that Ras Al Khaimah residents associate with the products offered by Carrefour. It will also establish whether these products will still be demanded in the long term. This will be critical in gauging the future of the Carrefour branch if established. The popularity of Carrefour among the residents will also be established. This will aim at establishing if the residents are familiar with the products offered and their experience in purchasing and consuming these products.

The study will also find out the existing competition by establishing the alternative places of shopping frequented by the residents. The preference of these products to those offered by Carrefour will be determined so as to establish the competition that the new branch is likely to experience.

The population distribution of the Ras Al Khaimah area will be established in the study. This will determine the demand that is available for the variety of products offered by Carrefour. This will be compared with the products offered so as to match the needs of the population with the products available. Population growth will be established to measure the expected level of demand in the future if the new branch is introduced.

The challenges experienced by customers who shop in the existing branch will be established through getting customer feedback. This will be critical in establishing a strategy to improve on customer service and stay ahead of the existing competitors. Also, this will be useful in finding out the attitude that customers have in regards to shopping by Carrefour. Through the feedback, the study will establish whether it is advisable to open the new branch in Ras Al Khaimah. The possible challenges that might be experienced if the branch is introduced will also be determined through this feedback. This will help in predicting whether the challenges outdo the benefits of establishing the new Carrefour branch in this location.

Research

This study will have a wide coverage to ensure that adequate data is collected. It targets to reach more than a quarter of the population through involving a sample from each demographic and geographic segment. It will be done at a random and systematic way that will ensure at least each group and area of study is represented. Concentrating on discussions and interactive sessions will effectively cover a large number of individuals (Zott&Amit, 2008). The research will involve all the age groups ranging from the school going children to the aged. This will ensure that the study covers the targeted market adequately. Since Carrefour provides products for all age groups, the market will be adequately covered. The study will be divided into two sections so as to achieve wide market coverage with great success. One section will target non-working people, who are mostly housewives and small scale business people. The other section will target working class in the evening as they return home from work. This will also involve school going children and college students who return from school early in the afternoon.

The market conditions as at present will be analysed. This will be through holding discussions with people in the targeted areas through observation and interviews. The conservations will address the need for a new branch in the market. It will involve probing to establish whether these residents are interested in Carrefour products or not. This will be done by conducting interviews to find out if they have ever shopped from Carrefour and how their experience was. For those who may not have experienced, the reasons will be established. The interview will also establish whether the residents have an interest in the products offered by Carrefour. This will be established through discussions that will focus on the residents’ lifestyles (Zott&Amit, 2008).

The expected trends in the future will also be established by discussing the spending habits of the population in the past (Thompson, 2010). Observation will also be applied when housewives are shopping for their products. This will be compared with the current needs to establish the trend. It will also help in determining the products that can be used as lead products in attracting a significant number of customers to Carrefour. Demand for these goods in the future will also be established so that the profitability of the branch in the long term is anticipated.

Determining Factors

Legal aspects

The level of trust to be put when embarking on a business investment is determined by factors such as the legal frameworks and the commercial laws put in place. When rules and procedures are put down, violation is minimal the probability of deceit is at the minimal for investors (Laeequddin, et al, 2009). Ras Al Khaimah is governed by the sharia law, and this proves that establishment of Carrefour is safe. The probability of conflict with the government is minimal because the RAK Investment Authority accommodates business investors. The global economy requires a dynamic business practices.Ras Al Khamah is willing to achieve this by encouraging investment both domestic and foreign.

Demand

For a business to thrive in a new location, it establishes itself in terms of brand or increased product knowledge among the consumers. This is an advantage to Carrefour because this is a well-known outlet among the locals. Considering that another branch is already established in Al Manar Mall, the new branch is likely to do well. This is because Carrefour already has a market share. Customers who travel to shop in the other branch can now have the products brought nearer to them. The customers already know this chain. The task would only be to inform the customers about the new branch that is nearer to them. Future trends can be anticipated by studying the changing living standards over the last decades. This helps to establish whether the variety of the products offered will be in demand even in the long term (Thompson, 2010).

Population distribution

The population in Ras Al Khaimah is growing as evidenced by the rate at which commercial and residential houses are being constructed. The demand for low cost housing means that the population has grown. Demand for services like housing means that the rest of the related industries like household and home-care goods also increase. This is a favourable sign that implies that if Carrefour is established in Ras Al Khaimah, it will experience growth due to the ready market. Demand is the determining factor on whether a business should be located at a destination.In this case, the location is a good one and attracts business growth (Oxford Business Group, 2011).

Budget

A budget will ensure that the study is carried successfully without any financial issues arising. The expected costs will be kept at the minimal so that the least amount of money possible is spent.

Conclusion

The idea of opening another Carrefour branch in Ras Al Khaimah is a viable one. This is because the area has a good potential for business. This is based on the fact that there is only one shopping mall, which happens to be from Carrefour. This makes Carrefour popular among the residents, and this is an added advantage over the existing competitors. The existing branch has already created a clientele, so if a new branch is introduced, it will serve to improve customer service and efficiency. This means that customers who have been avoiding shopping from Carrefour due to the distance involved will be relieved to shop effectively. Others who have experienced shopping in this outlet, but were not able to frequent due to inconveniences associated with the distance, will also start shopping. The population of the area is wide and matches the products offered by Carrefour. Therefore, there is adequate demand for these products. It is also likely that new customers will come on board because the shop is brought right at the door step. They will shop because it is convenient for them. This branch will serve to maximize sales, and thus the branch is likely to experience sales growth and profitability.