Executive summary
The report provides a brief about the Australian retail sectors alongside with the market
segments they obtain. The research illustrates Target Australia’s product strategy and the new
SBUs they adopt. The report details as to how these SBUs can adhere into solving the
problems cited in the previous assessment. The data implemented advocates the instruments
as well as the sample population used while conducting the research. Lastly, the report
figures out the design, the data collection methodologies and as to how the proposed study
will be functional towards the management of Target Australia.
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Table of Contents
Introduction 2
Problem and background 2
Purpose of the research 3
Target population and sampling plan 3
Sampling design and data collection method 4
Research instrument 4
Schedule 5
Personal requirement and estimated cost 5
Integrating data 6
Conclusion 6
References 7
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Introduction
The development of retail business is wholly dependent upon linking the wholesalers with the
consumers enumerating a proper description towards industry expansion. In the opinion of
Sutton-Brady, Kamvounias and Taylor (2015), the Australian retail sector is among the
largest developments with the country enlarging its branches with every passing day
promoting a range of varied products. The Australian retail industry has around 140,000-
retail business, which summons largely towards the growing GDP of the country as well as
accolades 10.7 per cent (2015) of the employment. The report draws a clear understanding of
the strategic business units and the target population for the Target Australia a retail unit
owned by the Wesfarmers. The research has been conducted mainly based on a secondary
data collection method. Acknowledged journals, books and articles have been studied to
gather relevant information about the research. The report first describes the problem and the
background of the research and then elaborates about the purpose, target population, research
instruments, time, estimated cost and data collection method.
Problem and background
The Australian retail sectors contribute to around 4.1 per cent of the total GDP of the country.
A strategic business unit (SBU) within any retail sector is an operational independent profit
centre of any existing business comprising of a generative marketing plan as well as
upholding a discrete campaign analyzing the competition (Sammut‐Bonnici and McGee,
2015). The SBU within Target Australia is based on the import and the export of different
kinds of goods that allows expanding of a varied consumer range. Target Australia is among
the most acclaimed departmental stores with headquarters in Melbourne and operating around
275 locations (Target Australia, 2020). The corporate earns a yearly revenue of around
2.802 billion AUD and facilities with products such as home decors, men and women’s wares
as well as Christmas gifts. Within retail sectors, SBUs are often small to enhance flexibility
as well as large to produce effective control of numerous variables. Even being an
independent unit of a functioning industry the SBUs helps in responding towards economic
changes within a focused market (Sammut‐Bonnici and McGee, 2015). Target Australia
advocates SBUs by developing new business units and product range as well as adopting
towards a flexible organizational structure. The corporate sets forth SBUs by the
development of product range such as manufacturing Christmas gifts besides home decors
and clothing (Target Australia, 2020). Target Australia induces SBUs by its organizational
structure, which promotes both back office and front office variants. This largely resembles
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the logistics, finance, R&D, production and sales (Target Australia, 2020). The background
of the report thus is inscribed into enumerating a detailed brief about the market segments of
Target Australia as well as the other new SBUs it adopts. This SBUs will help towards
encountering the problems of the corporate, which have been largely focused within the
marketing approach of the previous assessment.
Purpose of the research
The research is significant into displaying the SBUs or the product frame required into
dealing with the problems faced by Target Australia identified in the previous assessment.
The research is also important towards elaborating a combined brief about the market
segment strategies of retail business outlets in Australia as well as its target population. The
process of market segmentation is identifying or dividing the customer range into different
groups and mediums based on the analysis of varied variants (Wilkinson, 2013). The
segmentation strategy of Target Australia is focused mostly upon the demographic,
geographic, behavioural and psychographic. The target audiences for large retail sectors in
Australia such as Woolworths and Wesfarmers Limited are especially from the high-income
level background (Target Australia, 2020). The target audiences are especially analysed
based on their living standard measures (LSM) which need to be on the scale of 8 to 10.
Under the varied components of Target Australia acknowledges its target population by
concurring them into an age of above 16 years as well as facilitated a high standard of living.
Besides this, the retail sector targets population mostly based on cities such as Queensland,
Melbourne, New South Wales and Sydney. Cities propagate a high range of LSM and thus in
the year of 2019 Target Australia accumulated revenue of around $300 million (Target
Australia, 2020). The range of products is determined by evaluating the previous purchase
alongside the purchasing behaviour of target audiences as well as their attitudes, interests and
lifestyle. Thus, the purpose of the research is to promote the significance of the SBUs
alongside with the market segments of the Australian retail sectors.
Target population and sampling plan
A descriptive research design has been used for conducting the research. This research design
appropriately describes the population that is analysed within the research by setting forth
research instruments to provide authentic data implementation (Nassaji, 2015). The target
population for Target Australia is the population reviving upon a high-income standard
lifestyle. The LSM needs to be between 8 and 10. Target Australia also focuses upon the
middle-class range of consumers as the studies suggest the income level of the middle class is
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around $33,300 and $88,700 (Glover, 2015). This targeted middle-class population within a
few years will hover the rise of Australian retail by solely promoting the buy of each of their
daily needs from stores. Major statistic claims that the already facilitating middle-class retail
customers in Australia is around 75% of the median income. To conduct the study a random
sampling method has been adhered into conducting the research. A sample of 1 to 100 people
redeemed under the middle-class customer criteria have been interviewed to set forth the
report.
Sampling design and data collection method
A random sampling design has been used to conduct the research. The random sampling
design subsequently chooses a large set of individuals and conducts experiments and studies
on that given set (Acharya et al. 2013). To adhere and facilitate the report with the authentic
and relevant data the research has undergone both qualitative and quantitative data collection
methods. The qualitative data has been signed into promoting the authentic numerical and the
statistics of the Australian retail sectors alongside with the income level of their target
population. The quantitative data have been used to elaborate brief discussions about the
SBUs within the retail sectors as well as the most proposed SBUs within the organizational
structure and the product strategy that Target Australia affirms (Choy, 2014). Secondary data
ascertaining the study of varied journals and articles have been used to determine the market
segment strategies of retail sectors, as well as the primary data, has been utilized to interview
the sample population to learn about their purchasing behaviour and lifestyle standards.
Research instrument
The most significant research instrument used to derive data for the given report is a set of
questionnaires put forth towards interviewing the sample population. Questionnaires include
questions based upon the purchasing behaviour of the targeted population as well as
questions to business stakeholders about the new SBUs within their retail business. Other
than, this survey has also been conducted to check out on the formation of the SBUs within
retail sectors as well as conducting studies to analyse the organizational structure and the
product strategy of retail sectors in Australia. Interviews have been conducted upon the
targeted population mentioned within the sampling plan as well as business stakeholders of
Target Australia have also been interviewed to detail about SBUs within their business.
Schedule
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To conduct the operations of the research a determined schedule process has been obtained.
The schedule was done by drawing up a Gannt chart to conduct every operation through a
systematized manner.
Time-period
Task Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week
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Primary
investigation
Secondary
investigation
Sample
selection
Conducting
interviews
Analysing
and
evaluating
accumulated
data
Forming of
a detailed
report
Personal requirement and estimated cost
The estimated cost for each of the proposed actions has been widely outlaid in the formulated
in the below-given table. The table also proposes the personals required conducting every
operation within the research and the rate required for their payment.
Task Personals Job Rate
Primary
investigation
10 college faculties Delving into major
research by
upholding research
instruments.
15$ each = 150$
Secondary
investigation
5 research students Reading journals
and articles based on
SBUs in the retail
business of
Australia.
13$ each = 130$
Sample selection 1 to 100 middle-
class retail
customers alongside
with 15 business
stakeholders.
Helping to adjourn
data on SBUs and
market segment of
retail sectors.
184$ total
Conducting 35 research students Helping to conduct 7$ each = 245$
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interviews interviews by
advocating
questionnaires.
Analysing and
evaluating
accumulated data
10 college faculties Examining the
accumulated data.
5$ each= 50$
Forming of a
detailed report
3 college faculties Writing down the
research report.
5$ each= 15$
Total estimated cost= 774$
Integrating data
The management of Target Australia can derive the answers from the conducted interviews
and adjust their management stand along with their product strategy to combine and
formulate newer SBUs within their business. The retail’s management can also use these
data’s into adhering to circumstances that can facilitate larger customer engagement. Lastly,
through the proposed study the management of Target Australia can also figure out the most
significant target audiences and their purchasing behaviour that can develop their business
strategy.
Conclusion
Thus, the report has engaged and enlightened upon the varied SBUs within Target Australia
and its medium to focus upon its target audiences. The report has significantly highlighted the
market segment practices through which Target Australia operates. Most profoundly, the
report has adjusted a wider view upon the Australian retail sectors as well as factors that
enumerate its business. Lastly, every factor within the research symbolised the variants used
in conducting it.
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References
Acharya, A.S., Prakash, A., Saxena, P. and Nigam, A., 2013. Sampling: Why and how of
it. Indian Journal of Medical Specialties, 4(2), 330-333.
Choy, L.T., 2014. The strengths and weaknesses of research methodology: Comparison and
complimentary between qualitative and quantitative approaches. IOSR Journal of Humanities
and Social Science, 19(4), 99-104.
Glover, D., 2015. An economy is not a society: Winners and losers in the new Australia (Vol.
7). Black Inc..
Nassaji, H., 2015. Qualitative and descriptive research: Data type versus data
analysis. Language Teaching Research, 19(2), 129–132.
Sammut‐Bonnici, T. and McGee, J., 2015. Strategic business units. Wiley Encyclopedia of
Management, 1-1.
Sutton-Brady, C., Kamvounias, P. and Taylor, T., 2015. A model of supplier–retailer power
asymmetry in the Australian retail industry. Industrial marketing management, 51, pp.122-
130.
Target Australia, 2020, Sustainability and community, viewed 11 th November 2011,
https://www.target.com.au/.
Wilkinson, F. ed., 2013. The dynamics of labour market segmentation. Elsevier.