Effect of Product Differentiation on Sales Turnover - 275 Words

Effect of Product Differentiation on Sales Turnover (Research Proposal Sample) Content: EFFECTS OF PRODUCT DIFFERENTIATION ON SALES TURNOVER. A CASE STUDY OF RAIPLY LIMITED, ELDORETA RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELORS DEGREE INà ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬2015DECLARATIONSTUDENTà ¢Ã¢â€š ¬S DECLARTIONI, the undersigned, declare that this procurement proposal is my original work and that it has not been presented in any other university or institution for academic credit.NAMESignà ¢Ã¢â€š ¬................................. Date...................................SUPERVISORSThis proposal has been submitted for examination with my approval as university supervisorsNAME:Signature:....................................................Date:- ....................................NAMESignature:- ....................................................Date:- ....................................ACKNOWLEDGEMENTI wish to express my gratit ude to my supervisorà ¢Ã¢â€š ¬s à ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬. for the great inspiration, valuable guidance and the relentless encouragement they made to ensurethatthisworkmettheexpectedstandards.Iappreciatethesacrifice he made despite his busy schedules giving guidance, assistance, support, professional advice and constructive criticism up to the end. I thank my course unitsà ¢Ã¢â€š ¬ lecturersà ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬for enriching me with excellent course content that enabled me to handle the research topic.My special gratitude goes to my siblingsà ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬ for their love, prayers and support. My deepest appreciation goes to à ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬.for his prayers, encouragement and support throughout my proposal writing. I am indebted to my course mates à ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬ for their company throughout my entire study period, the group discussions that we had, your love and encouragement meant a lot to me.Much gratitude goes to all my colleagues for all the support during my study period and for covering for me in my absence. God bless you abundantly.CHAPTER ONE1.3 Objectives * To determine the effects of differences in quality on sales turnover of Raiply Limited. * To estimate the effects of differences in features/ design on sales turnover of Raiply Limited. * To investigate the effects of differences in availability (timing and location) on sales turnover of Raiply Limited.Conceptual FrameworkIndependent variablesDependent variableDifferences in qualityProduct differentiationSales turnoverDifferences in availability (timing and location) Sales turnoverDifferences in features/ designSource, Author 2015CHAPTER TWOLITERATURE REVIEW2.1 Empirical Review2.1.1Effects of differences in quality on sales turnoverIn this era of globalization, there is increasing pressure on firms by consumers and competitors alike to continually innovate in new products and to upgrade the quality of existing goods and services. Quality practices have been shown to enhance organizational sales turnover (Wotruba, 2005). Quality experts distinguish between two general types of output quality i.e. the degree to which a good or service provides key customer requirements, or customization, and how reliably these requirements are delivered, or reliability (Tanner, 2003). Ishikawa and Lu (1985) make a similar argument when they separate quality into à ¢Ã¢â€š ¬Ã‹Å"à ¢Ã¢â€š ¬Ã‹Å"backward lookingà ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬ and à ¢Ã¢â€š ¬Ã‹Å"à ¢Ã¢â€š ¬Ã‹Å"forward-lookingà ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬ components. Defects and flaws in quality are c alled backward looking quality, while forward-looking quality is characteristics that can become a productà ¢Ã¢â€š ¬s sales point. Oakland (1993) distinguishes between similar components, referring to à ¢Ã¢â€š ¬Ã‹Å"à ¢Ã¢â€š ¬Ã‹Å"qualityà ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬ as the meeting of customer requirements, and à ¢Ã¢â€š ¬Ã‹Å"à ¢Ã¢â€š ¬Ã‹Å"reliabilityà ¢Ã¢â€š ¬Ãƒ ¢Ã¢â€š ¬ as the ability of a product to continue to meet the customer requirements.Quality has a direct bearing on customer satisfaction. If a company produces a quality product, satisfied customers will ranks them higher in surveys than companies that fail to provideÂquality products or services and this will increase the number of customers coming fir their products thus increasing the total sales turnover. In addition, dissatisfied customers are more vocal in their criticisms of a company with quality problems. Various websites will rank different companies according to customer satisfaction and quality products. Poor c ompanies may get an initial sale of a product or service but it will not create repeat customers. To avoid circumstances like these, Companies must improve or increase on the level of their product quality or to maintain the good standard of their quality provision of products to the customers in order to raise the rate at which it gets it sales turnover.Quality of the products may also directly affects costs of many Companies. While using less expensive parts and equipment might cut costs in the short term, the long-term effects might be far more expensive. For example, using certain raw materials that costs less in the production of the products might save company money in the short term, but that raw material used might be more complicated than more expensive raw materials or lack customer service. If a problem arises with the products which are produced from these cheap raw materials, there can be lack of customers support and this means that it takes longer to accomplish the jo b, thereby costing the company more money than if it had used a more expensive, higher quality raw materials.2.1.2 Effects of differences in features/ design on sales turnover.It is not enough for a business to have good products sold at attractive prices. To generate a good sales turnover, the benefits of products have to be communicated to customers. The organization has to convey the message about the product on offer to its consumers ( Bart, 2002). This helps in sustaining a perennial demand for the product and in suitably positioning it among the target audience. Different organizations have different designs of attracting their customers in order to generate profits hence improve their sales turnover. One of them includes adding complementary services or products which may help them gain new clients as well as maintain existing ones. For example a lawn-mowing or landscaping company might add swimming pool maintenance for little additional cost. Neither service is technically c omplex or difficult to deliver, both require regular home visits, and each are a burden to the homeowner (Reinfeld, 2005)Similarly, CompaniesÂcan easily serve the commercial market with the same crews and equipment used in its normal residential business. Contracts to provide future maintenance or extended warranties can be sold with almost all capital equipment. The company can review the products of their competitors for ideas.Another design can be entering into a cooperative sales agreement whereby contact companies that sell a complementary product or service with a request to sell. For example, computer hardware companies often sell software, which facilitates the sale of their hardware. Furthermore, pet food distributors offer proprietary vitamins and pet furniture, and home remodeling businesses also sell landscaping (Darmon, 2008). Many companies actively seek complementary products as they add very little to marketing and sales expenses. It is just a matter of finding t he right partner. Adding additional salespeople for no out-of-pocket cost is a sure sales booster.Companies may also lower the prices of their products or adjust the prices to meet the objectives or the market situation in order to increase the sales turn over. An immediate price increase may bring additional sales turnovers and profits to the company if the price increase doesnà ¢Ã¢â€š ¬t negatively impact sales. A price reduction stimulates more sales and takes market share away from other suppliers. Knowing how their products compare with similar products from the buyersà ¢Ã¢â€š ¬ viewpoint, as well as the prices of competitive products, will allow them to best position your prices in the marketplace. Changing prices may "shake things up," so they have to be particularly sensitive to the reaction of their customers and prospects as the new prices go into effect. If the reaction is not positive, they can make further adjustments, including a return to the old prices.2.1.3 Effect s of differences in availability (timing and location) on sales turnover.Different companies operate in different markets where they target their customers and these markets may be far or near the sites of production. The demand for the products also varies with seasons (time) and this can affect sales turnover positively or negatively (Darmon, 2008). . Sales turnover of Raiply can be affected positively by timing when the demand for these products is higher and they are available within the required markets. To ensure that positive results are met, products must be located closer to the customers and should be made available all the time. Timing may also affects sales turnover of a company because the demand for the products may be lower at certain times. This can also occur when they are op...