Executive summary

This study aimed to describe how Masters Home Improvement Division could be perfectly executed. This is as far as Australian market is concerned. The questions that bother Masters currently is what marketing strategies will be used to enable the introduction of the DIY concept regain the loyalty that is lost to competitors such as Mitre and Bunnings. There are various researches done in the Australian market to establish different marketing strategies to be used to market bathroom related products. The study collected data from 115 respondents done by questionnaires. The study proposed to find which marketing strategies make them purchase products most. Descriptive analysis was used to analyze and interpret the data. The results of the study identified that price strategy can have the remarkable effect on marketing when combined with excellent advertisements. The study recommends that Masters need to use a combination of both price and advertising strategy to be able to perfect the introduction of DIY concept as far as Home Improvement Division is concerned.

 

 

 

 

 

 

 

Table of Contents

Introduction. 3

Literature review.. 5

Research design. 9

Sampling. 11

Data analysis. 12

Presentation and analysis. 12

A brief explanation of the findings. 15

limitations and caveats……………………………………………………………………………………………………………………..16

 Reccomendations and conclusison. 17

Reference. 18

Appendix. 20

 

 

 

 

 

 

 

 

 

 

 

Marketing

Introduction

1.1. Abstract

Notably, the major supermarket in Australia, Woolworths has been experiencing steady losses and bad performance in the recent years. By institutionalization of Masters Home Improvements Division, the supermarket has been inevitably receiving losses. One of the major issues surrounding ineffectiveness of Masters Home Improvements Division is that it is receiving critical competition from The West farmers-owned Burnings group (Knox & Knox 2015, p.102). There is a hemorrhaging of the Woolworths’ business, which has called the supermarket to design new strategies to avert the situation. The supermarket confirmed that in 2014, the loss that was incurred was not anticipated. The respective losses raised by the highly competitive Australian market and the Federal Budget’s effect on the preferences of the consumers. Arguably, the supermarket indicates that Masters Home Improvements Division is in the development phase. Therefore, there is the need to push Masters Home Improvements Division to the next stage. The next step entails the introduction of DIY Bathroom products/services to the target consumers in Australia. The target users will come from Queensland, Victoria, and South Wales.

  • Background information

Various marketing strategies have been used by Woolworths to make the Masters Home Improvements Division study unleash the expected outcome. However, this has not been the situation as most of their potential clients have been switching to burnings group. In 2014, to be exact, the supermarket made sales of $752 million. This was an increase of 42.2%: sales lower than expected (Rosser 2009, p.142). The introduction of DIY bathroom services and products will enable the Masters Home Improvements Division improve performance. Due to the increased competition from Burnings group and Mitre, DIY products and services will provide the mechanism for price negotiations. In addition, the introduction will be integrated with centrifuged advertisements to attract the maximum attention from the Australian market. Masters Home Improvements Division having DIY concept imply that it will be mainly concentrated on planning.

The DIY concept in the Masters Home Improvements Division will be exceptional services that will see improvements in the layout of the customer’s bathroom. Wholesomely, the projects will provide the right bath-ware selection at cheaper prices. The supermarket will collaborate with House Rules (a reality TV show) to advertise regularly their products to capture the mind of the target market. The study, therefore, proposes at coming up with recommendations on how the DIY products/services can attract the mindset of the clients in the vast Australian market. The study will first apprehend facts that have been letting the Masters Home Improvements Division down in the Australian market (Knox & Knox 2015, p.112). The study is pertinent to the supermarket because it will comprehend some of the factors that make it fail to perfect Masters Home Improvements Division. Ineffective marketing plans and strategies have been the reason for the failure of the Masters Home Improvements Division to reach its objectives. For instance, wrong marketing strategy such as concentrating on the female consumers has led the supermarket to incur the adverse losses.

  • Research objectives

The intention of the study is to observe how different marketing strategies can assist Woolworths perfect its Masters Home Improvements Division, mainly the DIY project. The study also aims at finding the ineffective marketing strategies used by Woolworths to bring bad results (Azzara 2010, p.115). The study will consider consumers’ response to the DIY bathroom concept at the Masters stores. The consumers’ responses are necessary to determine the marketing strategy to use since they are the end-users of the commodities. Therefore, the objectives of the study are as follows:

  1. Determine the reason for the ineffectiveness of the Masters Home Improvements Division
  2. To establish the best marketing strategies to be used to perfect DIY concept

The significance of this study is to establish the challenges that face the Masters Home Improvements Division. Furthermore, the study will offer accurate recommendation that will be useful in the improvement of the division. (Azzara 2010, p.125). The fundamental reason for the study is to develop more literature for the study in Masters Home Improvements Division since there is little information available about the research topic. Due to the fact that the study utilizes descriptive approach, the goal will be to use appropriate methods to attain the goal. The reason for using this approach is because there are no definite theories that can provide in depth information about the research topic. (Goertz & Mahoney 2012, p.145). Hence, using a specific method, the research will offer accurate data and analyze it to ensure that the conclusion drawn is accurate. The study will also supplement the available literature about the research topic.

 Literature review

  • Introduction

Various articles have endeavored to illustrate the reason Masters Home Improvements Division has failed in Australia. The following discussion illustrates how different articles argue towards the failure of Masters Home Improvements Division as far as marketing strategies are concerned (Rubin & Babbie 2011, p.111). The study will review and summarize various literature gaps that exist in the research topic and develop an appropriate technique for caring out the study. Scholars confirm that both Woolworths and Lowe instituted a poorly crafted marketing strategy. The reason behind the constructing was to kill its rivals such as Bunnings group ultimately.

  • Mainbody

Knox & Knox (2015, p.112) introduces this topic by admitting that marketing strategies at Woolworths made it fail resonantly on its Masters Home Improvements Division. The authors argue that the marketing strategies used do not match to either each other or the place (store). Roth, M. (2014, p.123) adds that the marketing strategy used by Woolworths disallowed each business to function as independent. This was contrary to the West farmers who allowed business to operate as a silo. Broughton (2012, p.134) confirms that the strategy used by Woolworth only distracted it from its businesses. Negatively, the approach led to the marked slowdown in sales growth from that engagement within the years of the implementation of Masters Home Improvements Division.

Stimson & Haynes (2012, p.156) argue that the market strategy used by Woolworths in the implementation of Masters Home Improvements Division used wrong locations. The authors argue that effective marketing strategy must match with the location. A business is likely to fail if the situation is portrayed negatively besides it giving bonuses and affordable prices. This is different to The West farmers who had the bound on Woolworths for the top big-box locations. Knox & Knox (2015, p.122) attest that a business needs to be a property, developer.

The Masters Home Improvements Division failed to make an impact on the market. Bunnings has succeeded in controlling the market by having 324 stores and plans to open more 20 stores each year for the next biennium. On the other hand, Woolworths’ Masters Home Improvements Division had expected to roll out 150 stores in five years durations. However, its marketing strategy was featured with wrong locations. Knox & Knox (2015, p.132) criticize the statement of Stimson & Haynes (2012, p.166).by arguing that for a business marketing strategy to function properly, there is the need to choose quality locations, excellent value sites, and execute the plan faster. However, the authors add that no business can accomplish the three intentions at one time. The reason behind it is that one of three intentions can be accomplished disallowing accomplishment of the others. For Woolworths, it was propelled by the pursuit for their speedy rollout. Therefore, it ended up choosing inferior market targets. Stimson & Haynes (2012, p.176) argues that some of the locations selected by Woolworths were some of the discarded areas by Bunnings.

The marketing strategy was characterized with selling the wrong stuff. Broughton (2012, p.146) argues that Masters Home Improvements Division failed terribly because it offered wrong products. Roth, M. (2014, p.143) adds that not only did the supermarket sell wrong items, but it also sold them at the wrong time of year. The Masters Home Improvements Division did not grasp seasonality of hardware. It is observed that at its time, Woolworths tied with Lowes USA meant stock that was out of season in Australia. Rosser (2009, p.112) criticizes the statement of Broughton (2012, p.148) by arguing that the reason the Masters Home Improvements Division failed is that it entered into highly competitive white goods sector. The author adds that Woolworths ignored the high-margin essential hardware. Hoover (2009, p.131) adds to the argument of Rosser (2009, p.145) by attesting that the supermarket lacked a deep enough range in some of their core sections. This is in terms of power tools, garden care, and hardware. The author attests that the best marketing strategy to utilize is the one that extends the product range.

Hoover (2009, p.195) argues that a good marketing strategy must be enriched with effective leadership. The author contributed that Masters Home Improvements Division failed because it was poorly led. The organization culture during the implementation of the Masters Home Improvements Division was not strong. The employees at the supermarket were not empowered. This is unlike their rivals, Bunnings, who instituted a strong organizational culture that empowered their employees (Rosser 2009, p.145). The marketing strategy failed at Woolworths since the employees were not allowed to challenge the top management. Observably, feedback and ideas were never invited at Woolworths. Noticeably, Rosser (2009, p.162) absorb that Bunnings was able to snatch customers from Woolworths Masters Home Improvements Division because they were able to show great enthusiasm, willingness, eye contact, and smiles that are not often seen in the Australian retail business. Woolworths needs to have this kind of leadership. It needs to dissolve its top-down management/hierarchy (Knox & Knox 2015, p.142). For instance, Woolworths’ Masters has that staff to park their cars tail-in to the kerb. This is a definite symptom of their rigid workplace culture.

The Masters Home Improvements Division is said to fail by Rosser (2009, p.172) who argue that it denied its customers the shopping experience. Masters failed to create trust with its potential clients. The author attributes that Bunnings was able to compete profusely with Master because it was able to build confidence to its customers that they can give them quality services and products. The author argues that it has now become a routine to the Australians to buy at Bunnings. The marketing strategy used by Mitre, for example, had no free activities and workshops for children and adults. Bunnings, on the other hand, has free activities and workshops for adults and children, which make a point for customers to experience shopping. Hoover (2009, p.145) adds that Masters was unable to replicate the experience and notices the store layout has been failing with customers.

  • Conclusion

In conclusion, the introduction of DIY services and products by Masters needs a marketing strategy that has strong leadership and characterized with appropriate locations. The marketing strategy must combine both elements of prices and advertisements. Roth, M. (2014, p.153) argues that perfect places characterized by poor price strategies cannot realize the needed target sales. In addition, the author attests that Masters needs to use price strategies to recapture the already taken market share by Bunnings. However, this point is criticized by Hoover (2009, p.159) who argue that price plans not characterized by proper adverting elements can bring minimal results. The author argues that a marketing strategy has to use reliable advertisement mediums to reach the vast customers’ pool. The author adds that price strategy has to match the advertisement medium used. The review has, however, failed to give the exact approach to be used by Masters to make the introduction of DIY concept succeed in the Australian market (Hoover 2009, p.175). This literature gap has led the study to find the best marketing strategy to be used by Masters to realize sales from the plan. The marketing strategy must be the one that addresses the shortcomings that have been witnessed with the Masters Home Improvements Division (Rosser 2009, p.182). The study aims to provide which method will be useful with the introduction of DIY concept.

Research design

  • Nature of research

The type of the study is both descriptive and exploratory. The exploratory section analyzes the current situation of Masters Home Improvements Division in Australia (Wrench 2013, p.145). In addition the analysis be descriptive by describing the best marketing strategy to be used by Woolworths to increase its market share in Australia (Zachariadis, Susan & Michael 2013, p.123). The research involves unfolding how the provided recommendations can be implemented to ensure that Masters Home Improvements Division achieves its objectives.

  • Requireddata

The study will entirely rely on quantitative data alone. The quantitative method will use questionnaires to collect quantitative information. This type of information is necessary to generate a theory. Carlson, Vincent, Hardesty & Bearden (2009, p.867) argue that quantitative information is used to give information that describes a theory hypothetically. The data is mostly used to determine which method of advertising and promotion attracts them to purchase the products from Masters and its competitors. Collecting quantitative data is important in this study because it will enable the study accomplish its objectives early. The situation at Woolworth’s need immediate solutions to amend the problem, and this can be performed using quantitative data only.

  • Data collection methods and instrumentations

The quantitative method will entirely use the questionnaires. The importance of quantitative research is that it will enable the study come up with the exact figures to decide which marketing strategy can best work with DIY concepts. The questionnaires will be semi-structured. The main reason the questionnaires will be semi-structured is to enable the respondents and the researchers adhere to the topic (Zachariadis, Susan & Michael 2013, p.132).The questionnaires will be sent to respondents in Victoria, South Wales, and Victoria. Their response will be evaluated using a Likert Scale.

The research strategy is a survey. Self-administered questionnaire will be provided to collect data from the respondents, this will make it easy for data collection and responses from participants in Victoria, South Wales, and Queensland. Both male and female participants will be used for the study, in addition, they will be differentiated according to their age. Hence the above approach is considered as appropriate to use in this study. (Zachariadis, Susan & Michael 2013, p.134). The study will use self-completing questionnaire since it will enable the respondent to fill it at their convenience. The study will incorporate survey strategy, which will be helpful in gathering primary data concerning the Masters’ DIY products and service. The research time will only send them questionnaires after approval confirmation.

Ethical considerations

The entire participant in the research will join the team for free. No participant will be  forced to take part in the study hence everyone has to sign a consent form to show that he or she agrees with the set terms and conditions. All the research team members are expected to show respect to the participant. All information provided by the respondent will be carefully secured. (Sekaran & Bougie 2010, p.120). Confidentiality of the data collected from the participants will be protected to ensure privacy of the respondents.. Consent forms shall be sent to the online-based participants.

Sampling

The study will incorporate convenience sampling since it is less costly and can be used easily in the field. The research will also use this technique since it enables researcher to get to respondents and communicate to them conveniently. Convenience sampling is a type of non-probability sampling method. The study will incorporate non-probability approach to collect the intended units for the research. The strategy is effective since it will ensure that the research team gets the intended sample size quickly. With the use non-probability sampling method, the variables to be analyzed resulted to clients from Queensland, Victoria, and South Wales (Rubin & Babbie 2011, p.121). Convenience sampling is useful because it assist in finding issue of the research problem. It is the best form of sampling to generate a theory. However, during the research the researchers experienced issues with non-probability sampling because they could not be generalized (Nelder 2011, p.207). In addition, the researcher will be able to complete the sampling inexpensively. This is because the process is simple and cheaper as it does not have to collect a large of samples to do sampling.

 Data analysis

The information collected will be concurrently coded and put on an excel sheet to shorten for further determination (Wrench 2013, p.142). Every participant average score will be analyzed in the sheet to make it easy for the analysis. The data will examined through narrative and descriptive. To determine the standard deviation and the mean, descriptive approach will be used in the data analysis. Hence the analysis will depend on standard deviation and mean to analyze the data. The study will then progress to data interpretation and discussions. The aim at this stage is to complete the research objective identified.

Presentation and analysis

In this subsection, the data gathered in answering the fundamental research questions are presented and sammarized.

Demographic representation of respondents using quantitative method

The number of respondents from Victoria, South Wales, and Queensland:

Region No. of respondents
Victoria45
Queensland40
South Wales30
Total=115

Table 3- The number of respondents from South Wales, Victoria, and Queensland (Mitchell & Jolley 2010, p.178)

 

The profile of respondents by age is given in the following table

1.Age (years)No. Percentage (%)
Below 20107.61
21-304439.09
31-404640.10
Above 401513.20
Total115100

Table 1: The age of the respondents in the questionnaires (Azzara 2010, p.135)

As illustrated in the table above, the age 31-40 formed most of the respondents. This means that they are the group of clients who purchases products at Masters mostly. They constituted 41.1%.

The table  below shows the responses of the respondents towards services given by Masters when prices are being taken into considerations:

Number Percentage
8977.4
2622.6%
Total  115100

Table 2- The response to if reduced prices by the Master can lead them to switch from Bunnings to Masters

Compressively, table 2 gives that 89% percentage of the respondents believed that price strategy can make them purchase DIY products from the Masters

The table below indicates the response of the respondents regarding the effects of advertisements towards the purchasing DIY products and services:

NumberPercentage
7872.4
3127.6%
Total  115100

Table 3- The response of respondents regarding advertisement (Nelder 2011, p.205)

Table 3 illustrates that a high percentage of the users switched to Bunnings and Mitre because of the advertisement that frequented the companies. This is because they advertisements with concern for the clients

The net analysis

When the means and standard deviations were done about prices and advertisements in determining what makes customers to Bunnings and Mittre, the study came up with the following table:

No.ItemGrand mean Grand SD (standard deviation)Severity rank
 
1Prices2.390.11st
2Advertisements3.180.122nd

Table 4- The effects of prices and Advertisements in marketing DIY products and services (Mitchell & Jolley 2010, p.56)

In simpler terms, the grand mean (2.39) and grand SD (0.1) means that prices form a focal point in making clients switch from Masters to Bunnings and Mitre (Kothari 2009, p.132). This is because the services given by the Masters are at a higher price. Nevertheless, the client can acquire the same products from Bunnings and Mitre with lower prices. This factor becomes the prime reason for DIY services and products to reach the Vast Australian Markets. The second factor determining the switching of customers Masters to Bunnings and Mitre is advertisements (Azzara 2010, p.165). The overall mean (3.18) and grand SD (0.12) indicates that most customers switch to other supermarkets because of the advertisement used.

A brief explanation of the findings

The study found that the reason Masters is experiencing a fall in revenues is the price strategy. The approach does not match with the expectations of the clients. The clients want a price strategy that gives them appreciation(Rubin & Babbie 2011, p.1312). Although the price strategy used by Masters in marketing gives lower prices, the lower prices are meant to be sales-oriented than clients oriented. Masters have its attendants being unenthusiastic unlike their counterpart’s Bunnings and Mitre. Most of the respondents from the three regions agreed that price strategy with consumer orientation can make them reconsider buying DIY products and services (Knox & Knox 2015, p.22). Concerning advertisements, they agreed that the form of advertisement used by Bunnings and Mitre had customer touch. The advertisements used by Masters lacks customer touch such that even if they advertise lower prices and bonuses, customers still purchase bathroom products from Bunnings and Mitre. They add up that the services advertised by Mitre do correspond to their psychological expectations (Rubin & Babbie 2011, p.124). The respondents agreed that they liked an advertisement that gives them the priority. Therefore, it becomes submissive to respond to Bunnings’ advertisement than to Masters.

In summary, the study has found that price strategy can make DIY products and service realize the intended intention if matched with the clients’ expectation. In addition, the study has deducted that advertisements with customer touch can make Masters Home Improvement Divison on DIY fight the competition from Mitre and Bunnings.

Limitations and caveats

Observably, the large sample size used through questionnaires was mainly troublesome as they were large. The researchers took many days to synthesize the information. Another limitation of the study is that it encompassed on non-random sampling tool only. Smith (2014, p.117) argues that random sampling reduces the reliability of the research. The author attested that random sampling that is based on non-probability technique results to results that are only interested in researchers. There is an opportunity for further research to investigate the exact price strategies to use for DIY to excel. In addition, an opportunity for further research is given by the study to examine the best advertisement to use for the DIY concept.

Recommendations

One of the recommendations is that Masters should reconsider restructuring is price strategy in marketing DIY concept (Rubin & Babbie 2011, p.141). Price strategy that gives clients the priority can make the whole Masters Home Improvement Division excel in the Australian market. Another recommendation is that Masters needs to concentrate on a proper advertisement mode that will make sure that it gets an additional market share in the market. This includes having advertisements that have consumer touch (Knox & Knox 2015, p.232). The final strategy to use is to combine both price strategy and advertisement strategy in the marketing. The combination of the both entails that the consumers are bombarded with the impacts of the both strategies such that they can now relate Masters with quality and prioritization of their consumers.