HI6008 Research Design on Penetrating the Market as New Entrant Assessment 3 Answer

Penetrating the Market as a New Entrant in “Online Baby Care Product Industry”

Research Design and Methodology

1.0 Research Methodology

1.1 Introduction

With the ongoing technological advancement and digital development, establishing an online platform for business operations allow organisations to expand their reach and accessibility to consumers, provide rapid and time-efficient consumer services and facilitate quick interaction with consumers. The online baby care industry, too, has been growing at an exponential rate. However, the market of online baby care products is dominated by a select few organisations with international business capacity including Woolworths, Coles and Baby Bunting Group. As newcomers in the industry, new market penetrators may find it significantly hard to compete with such businesses due to their extensive capacities and investment capabilities. Besides, there is a wide range of factors that must be considered by businesses looking forward to penetrating the market. The first and foremost of these factors is the extent of potential growth in the industry. Hence, the research addresses the current status and growth of online baby care businesses in Australia. With the analysis of this question, the researcher could address how the online baby care businesses in Australia are growing and expanding their businesses along with capturing more market share. It also allowed the researcher to address the current and potential upcoming trends in the industry. The second factor to be addressed is the challenges to be faced by the newcomers in the Australian online baby care industry. As newcomers, a business must be able to identify such challenges, risks and threats to ensure that the business can develop appropriate coping strategies to mitigate such challenges. Hence, the second research question addressed the potential challenges to be faced by new entrants in the industry. Furthermore, as newcomers, it is pivotal for new businesses to develop effective consumer attraction and engagement strategies to ensure that the companies can establish a new market with the captured clientele and retain them for long-term success. Hence, the third research question addressed the potential strategies and techniques that the new entrant could adopt to attract and retain consumers for the long-term. The current chapter focuses on describing the methodology, tools and techniques selected by the researcher to carry out the research.

1.2 Overview

The research methodology chapter entails the listing and description of the various tools, techniques and methods that the researcher has implemented to perform the research. In addition to that, the reason behind selecting the specific research methods, tools, as well as, techniques have been also justified with appropriate evaluation of the available research methods. The selection of appropriate research methods allows a researcher in terms of developing the fundamental structure based on which the various steps of the research are conducted (Kumar, 2019). For the current research, the methods and techniques that have been considered by the researcher include the deductive approach of research, the descriptive design of research and the positivism approach to the research philosophy. The researcher has utilised a mixed-research method whereby, only primary data is collected with the use of two separate data collection techniques including the quantitative and qualitative methods of data collection. As opined by Flick (2015), the utilisation of a mixed-research method facilitates the triangulation of the data as with the use of this method, it is possible for researchers to compare the findings and outcomes derived from different sources and thereby, contributes to enhancing the validity and reliability of the collected information. Furthermore, in this chapter, the data analysis tools, the ethical considerations thought of by the researcher and the research timetable have also been addressed.

1.3 Research Onion

Figure 1: Research Onion

Source: Influenced by Saunders et al. 2015

To ensure that research maintains a logical and reasonable investigatory process suited for answering all the issues or questions addressed within research, it is pivotal for a researcher to plan step-by-step research processes that can be followed while performing the research. The research onion, developed and hypothesised by Saunders et al. 2015, in this context, is an efficient and significant tool that ensures that the formation of the research steps follows a systematic and logical sequence. In the current research, the researcher has emphasised on the adoption, as well as, the implementation of proper sampling and data collection tools along with the design, approach and philosophy. According to Jonker and Pennink (2010), research can extract efficient outcomes only when the research layers are arranged in the appropriate order. The use of the research onion to design the steps of the research has allowed the researcher to maintain a logical and systematic sequence of the research layers.

1.4 Research Paradigm

1.4.1 Research Approach

In the context of social, as well as, academic research studies, the typical research approaches that are followed by researchers include the top-to-bottom approach also known as the deductive approach along with the bottom-to-top approach also known as the inductive approach. As mentioned by Sufian (2015), the fundamental functionality of these two approaches differs in the fact that the deductive approach extensively focuses on first the development of a hypothesis based on past research, the obtention of a substantial amount of knowledge and then use the knowledge to authenticate the pre-developed hypothesis while the inductive approach focuses on criticising existing knowledge, finding out their flaws and strengths and then develop new models or theories (Davis and Michelle, 2011). The scope of the current study is inherently focused on identifying facts and practical evidence that can allow the researcher to address the research questions. Hence, it is not necessary to develop new models and theories. Therefore, the deductive approach has been chosen to be implemented for the current research. 

1.4.2 Research Design

Similar to the research approaches, multiple designs can be used by researchers while carrying out a typical academic or even a social investigation. The research designs that have been observed to be repeatedly used in the context of a wide range of social and academic studies consist of the exploratory, explanatory, as well as, the descriptive research designs. Before choosing the appropriate research design, it is pivotal that a researcher can identify the significance of the objectives, as well as, the aim of a research paper (Hauberg, 2011). However, in this context, Prasad (2017) denotes that the first two designs are appropriate in cases where the researchers have not considered structured research objectives or do not have a specific research aim but just a research topic. However, the current research study has both a formal and structural set of objectives along with a specific research aim. The descriptive design, therefore, has been the most obvious choice for the researcher. The descriptive research design allows researchers to extensively study and review existing pieces of literature, models and theories to evaluate both the positive perspectives of a population associated with a phenomenon, as well as, the negative perspectives or point of views of the populous.  

1.4.3 Research Philosophy

The philosophy refers to the mindset of the researchers and the approach that has been taken by the researchers while performing an investigative study. Two types of research philosophies that have been repeatedly observed to be implemented by scholars in studies that perform academic or social investigations include the positivist approach and the interpretive approach. While the fundamental thought that drives positivists is that only factual pieces of evidence or information that can be both observed, as well as, measured are usable in the context of research studies, the fundamental thought that drives interpretivism is that only psychological perspectives held by a population in association with a research topic or problem can be used in the context of research studies (Taylor and Medina, 2011). Based on the fact that the current research involved the analysis of the overall market environment, growth potential, opportunities and threats, as well as, efficient consumer attraction and retention strategies, it was decided that the use of factual pieces of evidence from real-life implications and an experienced population would be used in the research and hence, the positivist approach has been followed by the researcher.

1.5 Methods of Data Collection

The researcher chose the primary type of data to conduct this study. The selection is driven by a few facts. Firstly, the amount of existing empirical peer-reviewed studies that have thoroughly investigated the online baby care industry are currently very limited. Therefore, it would not have been possible for the researcher to obtain a substantial amount of credible information from authentic and reliable sources in case secondary research was performed. Furthermore, the use of the primary research technique allows researchers to gain the first-hand perspectives of knowledgeable personnel that have first-hand knowledge in the field and therefore, their perspectives and opinions can be of considerable significance to address the research questions (Teherani et al. 2015). The researcher has collected both the qualitative (that can be observed, recorded and interpreted) and quantitative types of information (that can be recorded and measured) to perform data triangulation to consolidate the outcomes generated from the data analysis.

1.6 Research Strategy

Research strategies refer to the techniques used by researchers to collect information. The type of data that has been collected and interpreted in the current study is primary. Therefore, the selection of an efficient technique or strategy that suits the collection of primary data was necessary. The key strategies used for primary data collection include surveys, interviews, experiments, first-hand subject observations and focus-group sessions among others. The researcher, for the current study, has employed the survey questionnaire and the interview strategy combinedly. While the survey questionnaire has allowed the researcher to gather first-hand quantitative information from a massive business population within the online baby care industry, the interview strategy has allowed the researcher to obtain qualitative information from 7 senior managers from organisations within the online baby care product industry. With a combination of two or more types of researchstrategies, as opined by Driscoll (2011), researcherscan gain a substantial amount of insight concerning the psychological perspectives of the population, as well as, sufficient quantitative information to support the psychological perspectives. Some sample survey questions that will be asked to the respondents include;

• To what extent would you agree that online sales of baby care products is more feasible than offline sales?
• Which parts of the population are generally more aware towards purchasing baby care products from online shopping websites?
• Which of these baby care products are purchased most frequently online by consumers?

1.7 Sampling Size and Method

To gather primary qualitative and quantitative information, two different sampling methods have been used. For the survey questionnaire, the sampling method that has been used is the stratified random probability sampling method. A sample size of 55 was selected from the social media platforms of the top three previously mentioned companies that are dominating the online baby care product industry currently in Australia including Coles, Baby Bunting Group and Woolworths for the survey. For the interview, a non-probability convenient sampling method technique was used to contact a total of 7 people in managerial positions within Coles and Woolworths. As opined by Robinson (2014), the convenience sampling method allows researchers to make the most convenient selection of participants or respondents facilitating data collection.

1.8 Data Analysis

The researcher has employed two types of data analyses. For the quantitative information, numeric data analysis has been performed by turning the frequencies of the responses into percentages and preparing excel charts to enhance visual comprehension of the data. The responses collected from the interview have been descriptively in excel and the most frequent patterns, trends and similarities observable from the responses were noted and then described using a thematic analysis method. The methodological triangulation of data collection has allowed the researcher to ensure and maintain the validity and reliability of the collected information and thereby, has contributed to the consolidation of the research outcomes. 

1.9 Ethical Considerations

With the involvement of human research participants, researchers must establish an ethical parameter within which the data collection and analysis processes are performed (Choy, 2014). The researcher, before the commencement of the data collection process, ensured to inform the chosen respondents of the purpose behind the study, as well as, how the collected data would be used. All participants were further informed of their right to voluntarily provide the information and leave the survey or interview at any stage of the study. Additionally, it was ensured that the information collected from the respondents do not reveal their identities, place of work or any other identifiable information that could expose them. Per the data protection act 2009, the researchers ensured that the collected data was safely encrypted and kept in a USB drive only accessible to the researchers and the supervisor. The collected data would further be destroyed once the final research is submitted and would be used for only this research and not for any other purposes. Finally, the questions that have been asked to respondents have been designed in a bias-free and unambiguous manner to ensure that the sentiments, feelings, religious and ethnic perspectives of the respondents are not exposed to harm.

1.10 Timetable for the Research

Table 1: Research Timetable

Source: Author

1.11 Envisaged Analysis and Interpretation of Survey Data

• To what extent would you agree that online sales of baby care products is more feasible than offline sales?

Figure 1: Feasibility of Online Sales of Baby Care Products

A large number of the sample size representing almost 67% of the population agreed that online sales of baby care products is more feasible compared to offline sales. 

• Which parts of the population are generally more aware towards purchasing baby care products from online shopping websites?

Figure 2: Most Frequent Buyers of Baby Care Products

As represented from the above graph, almost 53% of the buyers that purchase baby care products online are parents whereas, about 33% of the population are doctors.

• Which of these baby care products are purchased most frequently online by consumers?

Figure 3: Most Frequently Purchased Baby Care Products

As represented by the graph, bath and skincare products and diapers are the high-selling items with 27.27% and 30.91% sales of the chosen products online whereas food supplements and baby milk formulas represent about 18.18% and 23.64% of the sales respectively.

1.12 Summary of Findings

It is expected that the findings could suggest that the online baby care product industry in the context of Australia is rapidly growing, as indicated by the high CAGR growth rate of 2.8% in the literature review section. The envisaged findings of the survey indicated a high feasibility of online sales of babycare products compared to offline sales. It is expected that in relation with this outcome, the research will further enhance the idea concerning the feasibility of online sales in the context of babycare products. The survey results also showed that parents are most likely to buy baby care products online. Therefore, it is expected that the findings of the study would further consolidate the idea concerning the strategies that online baby care companies could adopt to generate success. Finally, the survey results identified bath and skincare products and diapers to be the highest-selling items in the online baby care product industry. Therefore, it is expected that the findings would be able to consider how these products may be marketed to emsure that new entrants can capture the clientele within the market. In relation with research question 1 and the existing pieces of literature evaluated in the literature review section, this anticipated finding would allow the researchers to comprehend the potential of the online baby care industry in Australia. Furthermore, it is expected that the findings would show the extent to which baby care products are being increasingly sold in the Australia market through online platforms.It is further anticipated the the findings could suggest a few challeges that can be faced by new entrants into the market including the limited operational capacity and investment capability of the new entrant compared to the large firms in addition to the pricing policies of the premium brands. On the one hand, the premium pricing of the well-known baby care products relates to perceived higher quality among customers. On the other hand, pricing the products too high would not allow the business to offer a unique value proposition to the clientele. It is expected that the findings will also reveal the importance of online interaction with the prospective clientele to create high levels of consumer engagement and the methods and strategies that could be implemented by the new entrant to enhance the consumer retention and attraction capabilities.

1.12 Conclusion

In the research methodology chapter, the researcher has listed and described all of the selected methods and tools that have been used in the current study and has provided justifications on why these specific tools are significant in the context of the current study. Furthermore, the researcher has ensured to consider the ethical implications of the data collection processes and develop suitable strategies to cope with the ethical implications due to human participants being involved in the research.