Management Problem
Introduction
The organization initiated its operations in 1919 selling home appliances like washing machines, refrigerators and other small domestic appliances (Electrolux.com.au 2018).
The organizational mission is to reinvent consumer experiences and delivering solutions that enhance well-being and sustainability across the world.
1.2 Management Problem
Decline in sales
According to Avenell (2014), the appliance sales in Electrolux declined in 2013.
The appliance maker shares declined thereby making Electrolux a slow performer.
Low profitability
The rise in input cost has declined cost savings thereby affecting overall profitability.
Low customer satisfaction
The customers buy products from the companies who deliver maximum satisfaction.
There is low customer satisfaction resulting in lower sales and profitability.
1.3 Background of Research
Failure in integrating latest technology
Electrolux has failed in integrating the modern and latest technology in its product marketing strategies leading to decline in market share.
The gap in communication between marketing and retailing teams is affecting the sales volume adversely.
1.4 Research Questions
What are the causes of decline in Electrolux Company sales?
Which should be the most suitable marketing approach that shall maximize sales of the company products?
What is the level of customer satisfaction in response to the company’s products?
1.5 Research Objectives
To determine the causes of decline in sales of Electrolux Company.
To develop the most suitable marketing technique to maximize the company’s product sales.
To investigate the level of customer satisfaction regarding the company’s products
Communication- Employers should distinctly indicate their expectations from the employees and supply them with feedback on their performance and work (Blašková, Bízik and Jankal, 2015).
Value- Employees become very productive when they notice that they are valued (Arslan 2017).
Trust- Employers can best engage their employees by letting them do their tasks without telling them how to do it (Nasri and Zarai 2013).
Corporate Reputation
Employees may be trained in a manner that they are satisfied and can serve the customers well. Efficiency needs to be enhanced with less wastage of input.
Regular usage of processes
If the employees practice a few processes on a regular basis, they can help improve the corporate reputation.
Non-integration of modern and latest technology
If the organizations do not implement the latest tools and technology, it leads to decline in consumer interest (Zopiatis and Theocharous 2018).
Less consumer-friendly environment
When the consumers perceive that they are facing difficulty such as time consumption, carrying baggage and others, they find purchasing in the particular organization quite difficult (Aydin, Ceylan and Aydi 2014).
Technology helps in integrating sales and marketing functions.
Customer must be the focus of any organization. Tools such as CRM may be implemented that can improve customer experience (Szabo and Koblen 2017).
Social media can help in improving relationship with the customers.
Introducing latest technology in the business shall ensure greater efficiency, productivity and reduction of unnecessary costs (Shen, 2015).
The research study fails to acknowledge the reasons such as inadequate distribution channels that lead to decline in profit.
The research study only reviews technology as a factor that can improve sales volume and profit margin.
Background of Research
The impact of technology on an organization is studied at length. IT has meant to show higher levels of organizational integration thereby increasing organizational performance.
Numerous explanations have been provided how the management fails to leverage the complete potential of technology.
The time lag between the IT investment and organizational performance can affect sales and profitability.
As propounded by Saunders et al. (2007), the researcher passes through multiple stages for attaining the objectives of research. The different layers are elaborated as under:
Research Philosophy
Research philosophy refers to the justification of how the research shall be conducted.
This research study follows positivism research philosophy in which the cause and effect relationships shall be specified.
Research Approach
This research study follows inductive approach in which new theories might be inducted.
This mainly follows the qualitative approach for examining data between respondents.
This research study applies both qualitative and quantitative approach.
Under qualitative approach, the researcher develops questions and expands information on the same.
As per quantitative approach, the researcher measures the data using statistical methods and techniques
Research Strategy
This research study includes multiple approaches such as case study research, surveys, interviews and literature review for gathering data.
Case study approach is beneficial in drawing generalizations and establishing key features of the assessment.
Interviews and literature review are qualitative approaches used in the research study.
Survey is categorized under quantitative approach whose results are graphically represented.
Choices
This research study uses mixed method approach including both qualitative and quantitative approach.
This research study implies cross sectional time horizon where data is collected at a certain time.
This research study uses both primary and secondary data sources.
Primary data is derived from first-hand sources via surveys and interviews.
Moreover, secondary sources are used and data is collected via publications, academic journals, articles and books.
Research Design
The research design refers to the appropriate methodology and the way in which it shall be analysed.
This research study includes descriptive research design where the experiences of the respondents are closely related.
Sample Size and Sampling Technique
The sample size selected for this research study is 50 respondents.
The sampling technique used for the purpose of this study is by random sampling where individuals were chosen randomly from a large population.
It is observed that there are 30 women and 20 men in the sample for the research study.
Data revealed that women were more likely to participate in the survey and had greater Customer Loyalty Inde
It is analyzed that 72% of the respondents feel that Electrolux is not technologically competitive.
However, the remaining 28% believe that the organization is technologically competitive.
It is analyzed that 40 respondents look forward to all the factors such as store location, customer service, latest technology and pricing important.
There are only 2 respondents who consider pricing, 3 that consider customer service and 5 that consider latest technology as their priority.
With regard to overall satisfaction, it is analysed that majority of the customers are disappointed with Electrolux.
Research Questions
The data reveals that 30 respondents have the highest frequency of being unsatisfied with Electrolux offerings and services.
Further, 10 respondents seem satisfied, 8 are highly satisfied, 10 are highly disappointed and 2 have a neutral opinion.
According to the interview results, customer satisfaction is related with strategic marketing.
The companies shall be able to improve customer loyalty by integrating modern technology in the organization.
Social media has brought an ever-increasing amount of empowerment to customers.
Respond to inquiries, feedback, praise, and complaints in a timely and compassionate way
Generate positive and caring brand image.
According to the interview results, customer satisfaction is related with strategic marketing.
The companies shall be able to improve customer loyalty by integrating modern technology in the organization.
Social media has brought an ever-increasing amount of empowerment to customers.
Respond to inquiries, feedback, praise, and complaints in a timely and compassionate way
Generate positive and caring brand image.
According to the case study analysis of Tesco, there were multiple face-scanning technology installed at petrol stations personalising advertisements to individual customers once they reached the cash register.
Another case study example is for Pepsi that created over 250 million interactive cans where the players could win a chance to play football with the leading players.
RO1- The causes of decline in sales of Electrolux Company is non-adherence to latest technology, marketing and CRM efforts.
Social media marketing is found the most suitable marketing approach.
The customers are not very satisfied with Electrolux offerings and services.
Within the limited time frame, an extensive study could not be conducted.
The respondents were not willing to participate in the research study.
There is no evidence if the results can be generalized for all retail organizations.
The focus on social media marketing is less.
The study only covers Electrolux and no other organization.
The sample size of research study is too small.
Greater sample size may be considered for generating results.
Multiple small businesses may be considered for generating data.
Future study should use the findings of this current study as a
foundation for subsequent studies examining innovation.
Extensive literature review must be covered.
Innovation and shifting paradigms must be the focus.
Marketing research for effective managerial decision making must be conducted.
Social media marketing is a mandatory concept in every organization.
Highly experienced sales and marketing professionals must be employed.
Customer feedback can help in remedy website glitches.
The research study is beneficial to the students who are willing to engage in businesses.
The study is implied for the managers at Electrolux so that they can make required improvements.
The suggestions and feedback from customers may be integrated in retail organizations.
The innovation companies can benefit from the studies as they shall realize the popularity and need for latest technologies.
Avenell, P., 2014. Electrolux Australia sales declined at the end of 2013, company upbeat despite 19 per cent profit dip – Appliance Retailer. [online] Appliance Retailer.[Accessed 15 Sep. 2018].
Blašková, M., Bízik, M. and Jankal, R, 2015, Model of Decision Making in Motivating Employees and Managers. Engineering Economics, 26, 5,
Choudhury, M.M. and Harrigan, P., 2014. CRM to social CRM: the integration of new technologies into customer relationship management. Journal of Strategic Marketing, 22(2), pp.149-176.
Electrolux.com.au, 2018. About Us. [online] Electrolux.com.au.[Accessed 15 Sep. 2018].
Hanwate, A. and Thakare, P., 2015. SMART TROLLEY USING RFID. International Journal of Research In Science and Engineering e-ISSN, pp.2394-8299.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
