''Purchase of Organic Products in Discount Supermarkets in Dublin''

Total Page:16

File Type:pdf, Size:1020Kb

''Purchase of Organic Products in Discount Supermarkets in Dublin'' 1 ‘’Purchase of Organic Products in Discount Supermarkets in Dublin’’ Dissertation submitted in part fulfilment of the requirements for the degree of Msc Marketing At Dublin Business School Student: Tai Pui Yee (IKY) (10375210) Supervisor: Michael J Maguire Msc Marketing August, 2018 2 Declaration of Ownership Declaration: I, Tai Pui Yee, declare that this research is my original work and that it has never been presented to any institution or university for the award of Degree or Diploma. In addition, I have referenced correctly all literature and sources used in this work and this work is fully compliant with the Dublin Business School’s academic honesty policy. Signed: Date: 20th August 2018 3 Acknowledgments I thank various people for their contributions to this dissertation. I am immensely grateful to my supervisor, Michael J Maguire, for his comments, guidance and patience during the entire research process. He always provides me the effective solutions to work out the way as planned. All his efforts greatly strengthen the readability, logic and credibility of my first dissertation, as well as minimizing the unnecessary procedures. This smoothly completed research project cannot be achieved without his insightful contribution. I would also like to show my gratitude to all the participants involved in the research for their precious time and valuable insights, giving rise to the findings of this research. My peers’ support and encouragement have been motivating me when I felt frustrated doing research at midnight. I would also like to extend my appreciations to all my co-workers and managers for kindly giving me extra time off and working around my schedule in the past year of my study. Finally, I wish to thank my family for the remote support throughout my study. 4 Abstract Ireland sees the greatest growth of organic market in Europe with a positive future outlook. At the same time, the growth of discounter supermarkets in Ireland is crowned the top among multiple western countries with a growing market share, greatly altering the consumers’ shopping habits in the country. Therefore, this research is concerned with ‘’Purchase of Organic Products in Discount Supermarkets in Dublin’’. It aims to find out the factors that drive Irish consumers’ purchase of organics products in discounters. This finding is conductive to their ambitious business goals. Based on this main research question, two main focuses – commercial and environmental areas – form the sub-research questions as well as running through the entire research. This research is conducted in Ireland by quantitative method and using questionnaire for data collection. The sample size consists of 101 respondents who are above 18 years old. The findings are analysed by using Microsoft Excel. The result shows the five features of discounters contribute positively to purchasing organic products in discount supermarkets. They are their price, brands / products, product diversity, shopping environment and shop location. Last but not least, recommendations are made in the end of the research to provide incisive directions to the retailers. 5 Content Page Declaration of Ownership .................................................................................................................. 2 Acknowledgments .............................................................................................................................. 3 Abstract .............................................................................................................................................. 4 Content Page ...................................................................................................................................... 5 List of tables........................................................................................................................................ 7 List of figures ...................................................................................................................................... 8 1. Introduction ................................................................................................................................ 9 Research Question and sub-research questions ......................................................................... 13 Research Objectives ..................................................................................................................... 14 Research Hypotheses ................................................................................................................... 14 Reasons for studying this supermarket format in this country .................................................. 14 Significance of this study .............................................................................................................. 15 2. Literature Review ..................................................................................................................... 16 2.1 Introduction ............................................................................................................ 16 2.2 Definition of organic products ............................................................................... 16 2.3 Any significant differences between product/service offered by German discounters and that by Irish indigenous supermarkets relating to driving the purchase of organic range? .......................................................................................... 17 2.31 Brand or Product – Private Labels (PLs) or National Brands (NBs) ....................... 18 2.32 Diversity of product Assortment ........................................................................... 19 2.33 Price....................................................................................................................... 19 2.34 Shopping Environment .......................................................................................... 22 2.35 Shop Location ........................................................................................................ 23 2.4 To identify the effective strategies that marketers can carry out in order to attract more people to consume organic products in discounters? .......................... 23 2.5 Is the environmental concern related to Irish consumers’ behaviour towards the purchase of organic food? ............................................................................................ 26 2.51 The theory of consumer behavior......................................................................... 26 2.52 Environmental concern in relation to Irish consumers’ behaviour towards the purchase of organic food .............................................................................................. 27 2.6 To identify the opportunities to implement environmental plan to influence consumers’ behaviour, resulting to contributing the business’s profit. .................... 30 2.7 Conclusion of Literature Review ............................................................................ 31 3. Methodology ............................................................................................................................ 32 3.1 Introduction ............................................................................................................ 32 3.2 Research Design ..................................................................................................... 33 6 3.21 Research Philosophy ............................................................................................. 33 3.22 Research Approach ............................................................................................... 34 3.23 Research Strategy ................................................................................................. 35 3.24 Time Horizon ......................................................................................................... 36 3.3 Sampling - Selecting Respondents ......................................................................... 36 3.4 Data Collection ....................................................................................................... 37 3.5 Data Analysis Method ............................................................................................ 39 3.6 Research Ethics ....................................................................................................... 40 3.7 Conclusion of Methodology ................................................................................... 40 4. Findings ..................................................................................................................................... 41 4.1 Data Presentation................................................................................................... 41 4.11 Demographics and basic organics shopping habits ............................................. 41 4.12 Commercial drives of organics purchase ............................................................. 44 4.13 Environmental drives of organics purchase ........................................................ 55 4.2 Summary of Findings .............................................................................................. 60 5. Discussion of Findings .............................................................................................................. 61 5.1 Sub Research Question One ................................................................................... 62 5.2 Research Objective
Recommended publications
  • Review of the Economic Impact of the Retail Cap
    REVIEW OF THE ECONOMIC IMPACT OF THE RETAIL CAP Report prepared for the Departments of Enterprise, Jobs and Innovation and Environment, Community and Local Government APRIL 2011 Review of the Economic Impact of the Retail Cap Executive Summary i 1. Introduction 1 1.1 Objectives of the study 1 1.2 Structure of the report 2 2. Background 3 2.1 Policy and legislative framework for retail planning 3 2.2 Overview of the current retail caps 4 3. Overview of recent retail sector developments 6 3.1 Economy wide developments 6 3.2 Retail developments 8 3.3 Structure of the retail market 15 4. Factors driving costs and competition in retail 35 4.1 Impact of the retail caps on costs 35 4.2 Impact of the retail caps on competition 38 4.3 Other factors that impact competition/prices 41 4.4 Impact of the retail cap on suppliers 42 5. Conclusions and recommendations 44 APPENDIX: Terms of Reference 48 Review of the Economic Impact of the Retail Cap Executive Summary One of the conditions of the EU-IMF Programme for Financial Support for Ireland is that ‘the government will conduct a study on the economic impact of eliminating the cap on the size of retail premises with a view to enhancing competition and lowering prices for consumers and discuss implementation of its policy implications with the Commission services’. This process must be concluded by the end of Q3 2011. Forfás was requested to undertake the study and worked closely with a steering group comprising officials from the Departments of Enterprise and Environment.
    [Show full text]
  • Britain's Tesco Scraps Irish Supplier Over Horse Meat Scare 30 January 2013
    Britain's Tesco scraps Irish supplier over horse meat scare 30 January 2013 British retail giant Tesco said Wednesday it has "Ultimately Tesco is responsible for the food we axed an Irish beef supplier which sparked a food sell, so it is not enough just to stop using the scare after horse DNA was found in beefburgers in supplier." Britain and Ireland, where horse meat consumption is taboo. "We want to leave customers in no doubt that we will do whatever it takes to ensure the quality of Tesco said in a statement that it has decided to their food and that the food they buy is exactly what stop using Silvercrest after uncovering evidence the label says it is," added Smith. that it used meat from non-approved suppliers, mirroring a move by US fast-food chain Burger The consumption of horse meat is a common sight King last week. in central Asia, China, Latin America and parts of Europe. Two weeks ago, the Food Safety Authority of Ireland (FSAI) had revealed that up to 29 percent (c) 2013 AFP of the meat content of some beefburgers was in fact horse, while they also found pig DNA. The frozen burgers were on sale in high-street supermarket chains Tesco and Iceland in both Britain and Ireland, and in Irish branches of Lidl, Aldi and Dunnes Stores. The FSAI had said burgers had been made at two processing plants in Ireland and one in northern England. Following the news, Britain's biggest retailer Tesco issued an immediate apology and pledged to investigate the matter.
    [Show full text]
  • Mintel Reports Brochure
    Supermarket Retailing / Brand Importance - Ireland - November 2018 The above prices are correct at the time of publication, but are subject to Report Price: £1095.00 | $1478.58 | €1232.31 change due to currency fluctuations. “Supermarket retail sales are forecast for continued growth in 2018/19 but with the increasing uncertainty surrounding Brexit, many NI consumers are already feeling the pinch with food prices rising and a noticeable increase in supermarket prices. Market leaders will need to do more to deliver on price and quality whilst differentiating themselves from the pack.” – Emma McGeown, Research Analyst This report looks at the following areas: BUY THIS This Report will examine the grocery retailing sector in Ireland through exploring the issues that are REPORT NOW driving growth in IoI. Covered in this Report is the sale of all grocery items including market segmentation of supermarket retail sales via mainstream supermarkets, such as Tesco, Asda, SuperValu and Dunnes Stores. The sale of groceries through convenience format stores, such as Spar, VISIT: and the hard discounters, Aldi and Lidl, is also discussed, however, it is not included in the Market Sizes store.mintel.com and Forecast section. CALL: EMEA +44 (0) 20 7606 4533 Brazil 0800 095 9094 Americas +1 (312) 943 5250 China +86 (21) 6032 7300 APAC +61 (0) 2 8284 8100 EMAIL: [email protected] This report is part of a series of reports, produced to provide you with a DID YOU KNOW? more holistic view of this market reports.mintel.com © 2018 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel. Supermarket Retailing / Brand Importance - Ireland - November 2018 The above prices are correct at the time of publication, but are subject to Report Price: £1095.00 | $1478.58 | €1232.31 change due to currency fluctuations.
    [Show full text]
  • Kantar Report for CMA Store Exit Survey FINAL for PUBLICATION
    Consumer research to inform the Sainsbury’s/Asda merger inquiry Findings from the store exit survey February 2019 © Kantar Public 2018 Contents 1. Introduction and methods 3 2. Summary of key findings 12 3. Overview of customers 14 4. Choice attributes 24 5. Results from diversion questions 30 6. Diversion ratios to the Merger Party 46 7. London and Northern Ireland stores 53 8. Case studies 58 Appendix A – Survey Questionnaire 65 Appendix B – Store Level Diversion Ratios to the Merger Party 78 © Kantar Public 2018 1. Introduction and methods This report includes findings from an exit survey conducted as part of the Competition and Markets Authority (CMA)’s inquiry into the anticipated merger between Sainsbury’s and Asda. The survey was conducted in September and October 2018. In this introductory chapter, we set out the research objectives and provide background information on the sample and the methodology used to obtain the results. © Kantar Public 2017 3 Background and sample design This study forms part of the consumer survey research commissioned to provide evidence for the CMA’s inquiry into the anticipated merger between Sainsbury’s and Asda (the Merger Parties or Parties). The research involved short exit interviews conducted at a sample of the physical stores belonging to the Parties. The target population was customers who had just paid for grocery goods at the main supermarket checkouts (including self-checkouts). The high-level research objectives included examining: • Choice attributes • Geographical considerations • Closeness of competition, including diversion between the Merger Parties • Competitive constraints from other retailers, out of market constraints and cross-channel substitution.
    [Show full text]
  • Multiple and Symbol Operators: the Battle for Market Leadership in the Irish Grocery Market
    Technological University Dublin ARROW@TU Dublin Case Studies School of Retail and Services Management 2002-01-01 Multiple and Symbol Operators: the Battle for Market Leadership in the Irish Grocery Market Edmund O'Callaghan Technological University Dublin, [email protected] Mary Wilcox Technological University Dublin, [email protected] Follow this and additional works at: https://arrow.tudublin.ie/buschrsmcas Part of the Business Commons Recommended Citation O'Callaghan, E., Wilcox, M.:Multiple and Symbol Operators: The battle for Market Leadership in the Irish Grocery Market. Case Study. Irish Marketing Review VOL.14, No.2 This Article is brought to you for free and open access by the School of Retail and Services Management at ARROW@TU Dublin. It has been accepted for inclusion in Case Studies by an authorized administrator of ARROW@TU Dublin. For more information, please contact [email protected], [email protected]. This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 4.0 License Dublin Institute of Technology ARROW@DIT Articles School of Retail and Services Management 1-1-2002 Multiple and Symbol Operators: The battle for Market Leadership in the Irish Grocery Market Edmund O'Callaghan Dublin Institute of Technology, [email protected] Mary Wilcox Dublin Institute of Technology, [email protected] This Other is brought to you for free and open access by the School of Retail and Services Management at ARROW@DIT. It has been accepted for inclusion in Articles by an authorized administrator of ARROW@DIT. For more information, please contact [email protected].
    [Show full text]
  • Consistency from Aldi
    CK 0216 Shopperwatch_LDL_EMS Template 2012 19/02/2016 09:22 Page 7 FEBRUARY 2016 | CHECKOUT 65 Welcome to ShopperWatch, a partnership between Checkout and Behaviour & Attitudes (B&A). Every month, ShopperWatch tracks shopper opinions on retailer advertising, new product launches, and retailer and brand promotions. This month’s edition examines where consumers are choosing to shop, and marks the continued rise of Aldi and Lidl. The first aspect of the ShopperWatch feature asks over 500 shoppers for their opinions on what’s hot on the shelves and on the screens each month. TOP TV FOOD AND DRINK TOP NEW PRODUCTS/ TOP BEST PROMOTIONS ADVERTS PACKAGING OR OFFERS 1. Aldi: ‘Unbelievable Value’ / 1. McDonnell's Curry Sauces: 1. Aldi ‘Super 6’ ‘Unbelievable Dads’ New Range 2. Goodfella's Pizzas: Half Price 2. Coca-Cola: ‘Brotherly Love’ 2. Mooju: High in Protein 3. Tropicana: Various Offers 3. Lidl: ‘Firemen's Calendar’ 3. Fibre One: Cakes/Bars 4. Pizza/Side/Dessert for €5: Tesco 4. Avonmore Supermilk: 4. Chivers: Single Serve Jelly Pots ‘Little Heroes’ 5. €10 off €50: Multiple Outlets 5. Sacla Pesto Shots (Single Serve) 5. McDonnell's Curry Sauce: ‘India’ *Results based on 519 online interviews with adults aged 16+ quota controlled in terms of gender, age, socio-economic status, region and grocery shopper. Fieldwork was conducted via B&A’s Acumen Panel 2nd – 9th February, 2016. Shopperwatch questions are spontaneous in nature with open response questions. 'Unbelievable' Consistency From Aldi Aldi's latest marketing campaign, built around the message of Other new products catching the eye included Mooju, Fibre One cake 'Unbelievable Value' is already showing signs of being as popular as last bars, and single serve pots from Chivers and Sacla respectively.
    [Show full text]
  • The Great Taste of Irish Grass-Fed Dairy Starts Here
    NOVEMBER 2019 Retail News Ireland’s Longest Established Grocery Magazine The great taste of Irish grass-fed dairy starts here. #LoveIrishDairy ndc.ie 24|Retail News|November 2019|www.retailnews.ie Irish Quality Food & Drink Awards Irish Quality Food & Drink Awards Celebrating the best Irish food and drinks The winners of the Irish Quality Food & Drink Awards 2019 have been announced, recognising the finest indigenous products available in Irish stores. THE winners of the prestigious Irish Quality Food & Drink Awards 2019 were announced on Thursday, October 24, to a packed house at the Clayton Hotel, Burlington Road, Dublin. Producers, retailers and wholesalers from across the Irish food and drink industry came together to celebrate the very best produce available in Ireland. Products were judged earlier this year by a panel of over 50 food experts from across Ireland and the UK over a three-week period at the University of Limerick, with awards presented to the finest products across more than 50 categories. The awards include both branded and own-label produce, and highlight the efforts made by retailers and wholesalers to provide the best quality at the best prices for their customers, both the general public and Pictured at the presentation of the Gold Q Award to North Cork Creameries the foodservice industry. are (l-r): Beckie Dart, Director, Irish Quality Food and Drink Awards; Ruairi Callaghan, North Cork Creameries; and Hector Ó hEochagáin, Irish Quality Special Awards Food and Drink host. In addition to the category winners being announced (see the full list of winners here: www.irish.qualityfoodawards.com and on page 28), a number of special awards were also announced.
    [Show full text]
  • Merchants Quay Shopping Centre
    FOR SALE BY PRIVATE TREATY – TENANTS NOT AFFECTED MEST. 1989 MERCHANTS QUAY SHOPPING CENTRE 1-5 ST PATRICK’S ST. CORK www.MQSCCORK.com CORK CONTENTS 02 Welcome to Merchants Quay 06 At a Glance 08 Location 10 Getting Around 12 Amenities 16 Current Opportunity 20 Planning / Future Development 22 Investment Market 24 Floor Plans 36 Contacts Welcome to Merchants Quay CORK’S MOST Shopping Centre, RENOWNED RETAIL DESTINATION. 2 3 CBRE and Savills jointly present Merchants Quay Shopping Centre for Sale by Private Treaty. Merchants Quay offers investors an excellent opportunity to acquire an established Shopping Centre in the heart of Cork City, the economic centre of the south west region. Merchants Quay provides an excellent opportunity to secure a key retail asset located on Cork’s principal retailing street. The Shopping Centre extends to 4,040 sq m (43,488 sq ft) in total and benefits from four market leading anchor tenants which include Marks & Spencer, Dunnes Stores, Debenhams and SuperValu, although not part of the sale these key anchors significantly contribute to the annual footfall which is in excess of 8.2 million visitors per year. The scheme has full planning permission to reconfigure and enhance the internal layout allowing for the provision of a number of larger and more modern retail units. The proposed redevelopment plans are designed to create a new retail focal point at the northern end of St. Patrick’s Street. 4 5 A T A GLAN C E FOOTFALL IN EXCESS OF 43,488 sq ft 8.2 million OF RETAIL SPACE PER YEAR OVER TWO 29 INTERNAL units FLOORS SHOPPERS SHOP THERE MORE THAN 36% ONCE A WEEK ADJOINING 4 ANCHOR STORES 500,000 CORK COUNTY’S POPULATION Cork 10 min WALK TO CORK TRAIN STATION APPROX.
    [Show full text]
  • National Economic Context
    3.0 INTRODUCTION In setting out this strategy it is important to assess the economic context at a national and regional level as current and projected economic growth can have a profound effect on factors such as expenditure change and thus on the nature and quantum of retail development that occurs. Indeed, the exceptional economic performance of the ‘Celtic Tiger’ coupled with continued immigration and falling unemployment rates has resulted in a broadening of the nation’s retail offer. As can be expected, this rapid expansion in the country’s retail market has been associated with the emergence of a number of distinct trends in retailing. One of the purposes of this chapter is to examine the principle retail trends which are likely to have an impact on the development of the retail sector in Longford. 3.1 ECONOMIC PERFORMANCE TO DATE Ireland has one of the world’s most globalised economies, with extensive external trade and investment links. It is also one of the world’s most dynamic, with annual growth rates well in excess of averages for the developed world. Ireland’s period of unprecedented economic growth began in the early 1990’s. Between 1990 and 1995 the economy grew at an annual average growth rate of 4.8% and, between 1995 and 2000, it averaged 9.5%. Growth rates have since been maintained in the 4-5% range, a level almost five times higher than the old EU15 average.1 The legacy of this ‘Celtic Tiger’ economy is substantial, in particular regarding the country’s transition from one of Europe’s poorest economies to one of its
    [Show full text]
  • Local and Artisan Food: a Case for Supermarket Space? Authors
    Local and artisan food: A case for supermarket space? Authors: Michelle Dunne & Dr Angela Wright (Cork IT). The aim of this research study is to explore how the Irish consumer relates to local and artisan food products, and, in particular, to investigate whether Irish consumers would consider the supermarket environment as a suitable location and space for the purchase of local and artisan food items. Relevant secondary literature was examined, a gap was identified, and this was followed by a quantitative primary research approach. The empirical findings were collected from a comprehensive online survey which resulted in a remarkable 14,646 respondents. This rich data enabled the researchers to thoroughly examine the characteristics and behaviour displayed by Irish food retail consumers when deliberating various elements relating to local and artisan food products. A noteworthy finding from the current study is that 98.8% of respondents would like to be able to purchase local food products in a supermarket. This research also reveals that 76% of respondents expect to pay either less than, or the same price, for local food products, as they do for similar standard food products in supermarkets. Interestingly, 66.5% of respondents are either ‘very likely’ or ‘likely’ to increase their food ‘spend’ on local and artisan food products in the next twelve months. This research will be of direct benefit to parties involved with, and connected to, the grocery retail sector in Ireland. This includes multinationals, Irish owned stores, and independent grocery retailers. Local and artisan food producers will also benefit from these findings, and especially organisations such as Enterprise Ireland and Bord Bía who aim to support Irish businesses and grow the success of the Irish food story.
    [Show full text]
  • Retail Times Q2 2018 - Retail Times 31
    Q2 2018 www.retailexcellence.ie – Pages 30-31 – Pages – Pages 26-29 – Pages – Pages 36-37 – Pages HOTTEST STORES STORES HOTTEST E H Next Gen 53 Degrees North Degrees Gen 53 Next The New & Impressive Shannon Duty Free Shannon Duty Free & Impressive The New Retail Leader – Niall Anderton Leader Retail in the World and Ireland right now and Ireland in the World T I very much hope that you are trading well W currently. While we hear a lot about the economy recovering, there are many parts of the Irish retail landscape which are not enjoying that same buoyancy. The migrate of consumer demand to international websites, and particularly non-EU sites which do not apply VAT and Customs Duty, is a significant issue. The formation by Retail Excellence of the first ever cross-party Oireachtas Committee for Retail is a very welcome development and one which will ensure that the E voice of the Irish retail industry is heard. You will notice that we have changed the look and feel of Retail Times magazine. We want the magazine to better celebrate retailing excellence and in that regard this edition does just that. Our main feature looks at the best stores across the globe and closer to home. There is a great L interview with Niall Anderton, Managing Director of Circle K and also informative profiles of the new Shannon Duty Free and the new 53 Degrees North store format. As you are all aware the Retail Excellence Retreat is fast approaching. I urge all members to attend this keynote event.
    [Show full text]
  • Competition (Amendment) Act 2006
    TABLE OF CONTENTS 1. Introduction p.4 2. The Groceries Order - Legal Background p.7 3. The Fair Trade Commission Report 1991 p.17 4. Summary of Submissions on the Groceries Order p.20 5. Independent Study on Impact of the Groceries Order p.34 6. Arguments in favour of retaining the Groceries Order p.39 7. Arguments against retaining the Groceries Order p.77 8. Conclusion and Proposals p.95 Appendix A Report of DKM Economic Consultants Limited entitled “Economic Impact on the 1987 Groceries Order”. 1 FOREWORD One of the faintly bizarre aspects of the public policy debate on competition law is the passion aroused by the only left-over remnant of the old Restrictive Practices regime, namely the Groceries Order. Its best known feature is the ban on below invoice price selling (commonly, if somewhat inaccurately, referred to as 'below-cost-selling') and it is this feature which arouses the most controversy. However, as highlighted in particular in Chapter 6 within, some of the other provisions of the Groceries Order (such as those relating to suppliers’ terms and conditions and the ban on “hello” money, sometimes referred to as “fair trade” provisions) are also capable of generating controversy. A further peculiarity of the debate on the Groceries Order is that its legal status is such that it cannot be amended. It can only be either left intact or repealed in its entirety. As explained in Chapter 2 within, this is because the order was made under the Restrictive Practices legislation which was repealed by the Competition Act 1991.
    [Show full text]