BSBMKG607 Assessment 3

BSB61015 Advanced Diploma of Leadership and
Management
BSBMKG607 Manage Market Research
Assessment 3: Research Project Evaluation
Submission Details
This assessment task must be submitted online by the due date specified by your
Trainer/Assessor and Assessment Plan for this unit of competency. Any variations to this
arrangement must be approved in writing by your assessor.
Submit a file with the required evidence attached as per
❑ Specifications below
❑ Acknowledgement of original work, free from plagiarism as per Assessment Plan
❑ Special needs (considerations if required see Access & Equity Policy)
❑ Naming document files when submitting assessments (check Assessment Plan)
❑ Identifying the Unit, Assessment Number, student name, student number, date and page
number (preferably) in the Footer
❑ Assessor’s additional and particular instruction/s.
Performance Objective
This assessment task requires you to review the market research project and evaluate the
findings that have been presented, as well as evaluating and recommending improvements to
the research approaches and processes used.
Assessment Description
You need to develop a report describing and evaluating the research undertaken and the
findings presented. As part of this report you need to review the project performance against
the initial research project plan, and review the process for future improvements.
Procedure
From the case study provided you are required to prepare a final report on the market
research process including information under the following headings:
BSBMKG607 Assessment 3 Version: v18.0 Page 1 of 18
Developed by: Nortwest Pty Ltd Approved by: AM Issued: November 2017 Review: November 2018
1. Findings: A review of the research report provided to you by the consultant including:
 a brief summary of the report findings
 a description of how you confirmed the validity of information and data included
in the report
 a statement assessing the relevance and usefulness of findings against research

objectives.
2. Performance: assess the project performance against the research plan.
3. Review: A review of the feedback provided to you from various stakeholders, and any
changes to the process required by this feedback. Also review all of the monitoring
reports and monitoring activities completed throughout the project (in AT2) and make
recommendations for changes or improvements to the research process.
With your completed report you also need to submit a revised set of research guidelines (from
Assessment Task 1) incorporating the changes noted in your report for use in the next market
research project.
Specifications
You must provide:
 A written Final Report (Steps 1-3)
 Written revised Research Guidelines for the organisation.
Your assessor will be looking for:
 Evidence that you have examined the case study and have reviewed the market
research process for the organisation.
Distance-based learners:
 Complete assessment as per instructions.

Market Research Report
Abstract
The objective of the research was to examine the market viability of adding the
lighting fittings classification to Houzit’s variety. Existing and new customer’s survey
was conducted regarding the efficiency and value addition of lighting fixtures sold by
Houzit Company. The outcome proves that lighting and fixtures are mostly used by
those household which are renovating their houses. The conclusion of the report is that
including lighting fixtures on products sold by Houzit is a viable business idea. It is
therefore recommended that Houzit should go ahead and continue selling the lighting
fixtures as well as invest more on advertisement of the product.
Introduction
Lighting fixtures are used in illuminating through by means of several lighting
expertise. About 90% of households in Australia are busy constructing houses as well as
renovating the old ones. As a result, there is a high demand of lighting fixtures by these
households. calls such a situation as good for the market since the households creates a
high demand for the lighting fixtures hence calling for more suppliers of the products. A
part from the need of common lighting fixtures, the public is in need of high energy
efficient, durable and high quality light fixtures.
Due to the daily demand of the lighting fixtures by the customers of Houzit
Company, the company decided to supply and sell the products. Surprisingly, the loyal
existing customers talked to other people of how efficient the lighting fixtures from
Houzit are making them to also come and buy from the store .This report inspects the
viability of selling lighting fixtures to its loyal customers as well as the new customers.
Methods
The research was carried out by questionnaire as well as observation on the
number of customers who buy the products daily .About 1000 questionnaires were
given to customers who bought the products while 1000 others were sent through email.
Observation of the number of customers that bought the lighting fixtures was carried out
for one month. There were both Lakert scaled questionnaire and open ended
questionnaires for any other information that customers could provide. The assessment
assembly boxes were situated in all the branches of Houzit Company for a period of one
month. The research was voluntary as well as random so as to avoid biasness.

Findings
The above pie chart shows the 3 billion (96%) value of new places and
renovations .With only 130 million (4%) being the demand of home-wares.

The above chart shows that out of the total 130 million of home-wares that are
demanded by consumers, 22 million which is equivalent to 16 % are light fixtures.
Results show that there is an increasing trend in the growth rate of the
renovation and constructions of new homesteads as well as the growth rate of Brisbane
region which is the largest market for lighting and fixtures.
The growth rates are demonstrated in the graph shown below:
When the customers were asked on the total amount of income spend on home-
wares, the research found out that out of $110,000 that every person earned per year,
they only spend $560 on home-wares. This is 0.5% of the total income which is 99.5%.
According to research, Houzit has one chain competitor in the lighting and fixtures
products which only takes a small part of the market of lighting and fittings in Australia.
When the customers were asked about the efficiency of the lighting fixtures sold by
Hurzin, they gave the following responses:
Efficiency of Hurzin’s Lighting fixtures Responses in %
Very efficient 87%
Efficient 10%
Nutral 2%
Poor 1%
When the customers were asked whether they would refer a person to purchase Lighting
fittings from Hurtzin, these were the responses:

Reference Responses
Yes 95%
No 5%
The results show that 95 % of the customers would advise their friends or families to
purchase the lighting and fitting products from Hourtzn.
Correspondingly, the customers were asked on their view about the price level and they
gave the following responses:
Price level Responses
High 20%
Affordable 70%
Neutral 7%
Low 3%
Validity and reliability of data
To confirm the validity and reliability of the collected data, a correlation
analysis was done on some responses. For example the customers were asked to judge
the efficiency of lighting as well how much money they spend on lighting and fitting
products from Houzin .There was appositive relationship between the two variables
meaning that the data was valid .There was a 0.5 % standard error in the data which
measured the variability of data.

Since the study was to investigate the feasibility of including lighting fixtures in
the assortment of Hourzin company, the above data was efficient in the investigation
.The main reason is that because it shows how the customers perceive the products, the
available market share of the product as well as how much money people are willing to
spend on the products.
Performance
Analytically, project performance was in line with research project. To begin
with, the major objectives outlined in the research plan were actualized after
undertaking the research project. Noteworthy to mention, among the objectives outlined
in the project plan was to assess the nature of the lighting fixture industry as well as the
level of competition within the industry. The two variables were comprehensively
covered as shown by the research report. Additionally, the research questions were
addressed comprehensively. As pointed out by research report, all research questions
were addressed comprehensively. Also, the described methodologies outlined in the
research plan were adequately followed. Notably, scientific methods were adopted from
data collection to data analysis. With scientific methods applied, it is possible that
credible and reliable conclusions were drawn through the project. Finally, the project
goals were actualized within the specified timeline as indicated by the initial research
plan. It is noteworthy to point out that, such a project would take relatively a long time
to accomplish as noted by previous researches of such significance and magnitude.

However, for this project, the outcomes were actualized within a relatively short
duration of time
Research guidelines
Research guidelines are crucial in conducting research. Research guidelines help
provide more concrete and reliable data which is useful in drawing up meaningful
conclusions. In conducting research, it is expected that the researchers and the host
institution must work hand in hand to facilitate the research process. This section seeks
to present the research guidelines which are to be followed by the researchers as well as
the host institution.
Review
The Lombard’s did not talk ask the store managers many questions yet they have
all the information pertaining to desires of customers .The main reason is that the
customers are always open with the store managers hence being able to tell them their
perception on the products .The Lombards should have spent more time asking the store
managers on the performance of the product and how many times the customers visit
the store to ask for the products.
Lombard results did not bring out how badly people need the product so that Hourzin’s
stakeholders confirm that their business idea was viable and on demand .Lombard could
have located large market which is need of Houzin’s lighting and fitting products.

Researcher Guidelines
Integrity
1. Researchers are expected to maintain honesty during the research process,
including, generating data, analyzing data, publishing the findings as well as
pointing out areas of weakness.

2. Plagiarism and fabrication of results will be taken a serious misconduct during
research and will attract serious penalties
3. The researchers should report cases of misconduct so that appropriate actions are
taken.
Openness
1. Researchers should maintain a high degree of openness to the relevant parties
provided that such openness does not infringe other laws particularly intellectual
property laws.
2. Researchers are expected to provide relevant data and materials to other
researchers provided that intellectual property rights are not infringed.
Observing professional standards and legal requirements
1. Where applicable, researchers are expected to observe professional standards
including scientific methods when undertaking their research.
2. The researchers should follow legal requirements of the host countries to avoid
unnecessary law suits and penalties.
Ethical Guidelines
1. The researchers are expected to follow the professional code of ethics
undertaking their research.
2. The host institutions should put into place appropriate mechanisms to ensure that
risks of misuse during the research are easily identified and managed.
Co-operation

1. There should be mutual co-operation between the researchers and the host
institution to foster easy exchange of ideas.
Supervision
1. The host institution should provide appropriate direction of research as well as
oversee the supervision of the researchers.
2. Individual responsibilities should be written and availed to supervisors.
3. Supervisors should oversee the overall research process to ensure appropriate
and significant findings are drawn.
Host institution Guidelines
1. The host institution should formulate appropriate formal procedures for
investigating and reporting researcher misconducts.
2. The institution should provide adequate structures to support good research
practices.
3. The institution should form a culture through which integrity is maintained
through the organization.
Conducting Research
1. High standards should be maintained when designing and conducting research
projects
2. Researchers should be aware of the relevant legal and ethical implications that
could occur during research
3. Resources used to generate data should be properly managed. Relevant
equipment used should be adequately stored.

4. The standard operating procedures should be noted and followed to ensure
consistency and accuracy of the information obtained.

Case study
You receive a market research report from Lombards Consulting (see following pages).
You sent out the market research report as well as your variance summary of the marketing
activities taken to key stakeholders and asked them to reply by email.
Later, in discussion with the principals of Lombards Consulting, you are made aware of the
location and availability of source data on which the report was based. These include the
original responses to the customer surveys, taped interviews and focus groups (with signed
participant consent forms) and notes taken during conversations with staff, with Houzit
staff/managers and customers. Copies of secondary data was also available, crossed
referenced and physically identified in the report and source document. Where possible
Lombards Consulting used the scientific method of careful observation, formulation of
hypotheses, prediction, and testing in their research. They also spoke of using multiple
methods to ensure greater confidence in the findings.
When asked about the lack of time spent with the Houzit managers, Lombards consulting
spoke about the healthy scepticism they have built toward assumptions made by managers
about how the markets work. They also said that the intellectual divergences between the
mental styles of line managers and marketing researchers often got in the way of productive
relationships. The marketing researcher's report may seem abstract, complicated, and
tentative, while the line manager wants concreteness, simplicity, and certainty. Lombards
suggested they be involved in the earliest part of the planning process, in fact why not make
them permanent feature in the marketing strategy team.
Emails from stakeholders

The general manager said in an email “I was disappointed that Lombards did not speak to the
store managers more. They have real ‘day to day’ contact with customers and have much
knowledge about what customers want. Perhaps next time they could be involved formally in
the process”
The group buying manager said in an email “The report confirms what we thought about the
new category. I would have liked to see more opinion from the consultants describing what
they believed that the business environment data meant in terms of the business
opportunity.”
The CEO said that the “feedback from the board was to pass on their congratulations to you on
a job well done given the short time frame.” You replied that a research of that magnitude
would normally require a 12-14 week turn around. The CEO agreed.

For: Houzit By: Lombards Consulting
Scope: Conduct market research to determine the market feasibility of adding the lighting
fixtures category to Houzit’s assortment.
The Industry
The specific category, ‘lighting fixtures’, is part of the home-wares market. Home-wares are
linked to the domestic new dwelling and renovations industry.
 Industry Size – The market for new dwellings and renovations is Australia wide with
particular concentrations in demand in the high population growth states of Queensland
and Western Australia. In Queensland there is significant demand in the South East corner
of the state in which the greater Brisbane sector fits.
The value of new dwellings and renovations market in the greater Brisbane areas is
estimated in 2009/10 at $3 billion. The size of the home-wares business in that market is
estimated in 2009/10 as $130 million. The ‘Lighting fixtures’ category within the home-
wares business is estimated in 2009/10 at $22million. There are approximately 12
independent outlets currently supplying this category. Our research identifies that 89% of
people that purchase home-wares are also in the market for lighting fixtures.
 Industry Growth - The new dwelling and renovations markets industry in Australia is
growing at 3.2% p.a. and has been holding a long term growth rate of 2.7% p.a. The
greater Brisbane area is growing at 4.5% per year. Outlook for the coming years is that
this industry will continue to grow at above national averages and remain ahead of the
long term trend by at least one percentage point. The lighting fixtures category within this
industry is estimated to follow the same trend lines.
Target Market Statistics
The target segment is the ‘lighting fixtures’ category. The target market for this category are
Houzit’s existing customers and new customers that share the same profile as the existing
Houzit customers.
 Target Market Size – All households that are engaged in constructing new dwellings and
renovations in the greater Brisbane area are the target market for Houzit’s ‘lighting
fixture’ category. This equates to 45,000 households p.a. in the 2009/10 years. These
numbers are expected to grow in the coming years in line with the growth in the new
dwellings and renovations industry in the greater Brisbane area.
 Income and Activity Rates – The Houzit customer profile is skewed towards 25-45 year of
age, professionals and managers in employment with a combined household income
averaging at $110,000 per annum. Households spend on average $560 per year on home-

wares.
 Education - The Houzit customer profile is skewed towards higher education featuring
both vocational and university qualifications. As a group, those customers born overseas
tend to spend 50% as much on home wares as customers born in Australia.
Business environment
Houzit operates within a business environment that has many facits.
 Demographics: Population is growing in the target market ahead of the national trend.
There has been a steady increase (5% p.a.) in two income households over the past
decade and is estimated to continue at the same rate
 Economy: The economy is expansionary with a per annum growth in GDP of 3.2%.
Average incomes have increased above the trend line for inflation. Unemployment is low
at 4.1% and steady.
 Social: The customers in the target area are concerned about environmental issues. They
actively participate in recycling programs including the use of re-usable shopping bags.
Research shows that the target area are not active church attendees, choosing to use
their weekends in renovations and home maintenance.
 Technological: Fast internet speeds are available for the target market. The shift in
turning tradesmen equipment into Do-It-Yourself continues to gain ground.
 Political: Governments are pushing for more medium density living in town-houses and
units to cope with the growing population. The government is giving incentives for home
wares that do reduce resource use or help minimize waste.
Competitive Factors
There are no chains offering lighting fixtures in the target market.
 Direct Competition - There are 12 competitors in the target area which are each
independently owned. They offer similar assortments as Houzit, although many offering
laundry and kitchen equipment which is not in Houzit’s offer. One national chain that does
offer very similar products to Houzit (including lighting fixtures) does not have a store in
Brisbane, choosing the north and south coast instead.
 Porter's 5 Forces - The competitive environment does not represent a significant squeeze
on Houzit’s profits, however the power of suppliers is an area that has significant play in
Houzit’s target market.
 Indirect Competition - Electricians will represent a potential competitor in the ‘lighting

fixtures’ category. Often they have the opportunity to sell ‘lighting fittings’ to customers
and so undercut retailers.

Conclusion
The market research supports the view that the ‘lighting fixtures’ would be a feasible category
addition to Houzit’s assortment, given the positive customer response, the growth in the
market and the lack of organised competition.
Sources
Home-ware Trade association – Industry data
Australian Bureau of Statistics – Greater Brisbane area
IBIS market report 2009/10 Home-wares
Home-ware Magazines and Publications International
Newspaper – The Courier Mail


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BSB61015 Advanced Diploma of Leadership and

Submit a file with the required evidence attached as per

❑ Acknowledgement of original work, free from plagiarism as per Assessment Plan

❑ Special needs (considerations if required see Access & Equity Policy)

❑ Naming document files when submitting assessments (check Assessment Plan)

❑ Assessor’s additional and particular instruction/s.

 a brief summary of the report findings

 a statement assessing the relevance and usefulness of findings against research

2. Performance: assess the project performance against the research plan.

 A written Final Report (Steps 1-3)

 Written revised Research Guidelines for the organisation.

Your assessor will be looking for:

 Complete assessment as per instructions.

BSBMKG607 Assessment 3 Version: v18.0 Page 2 of 18

including lighting fixtures on products sold by Houzit is a viable business idea. It is

fixtures as well as invest more on advertisement of the product.

Lighting fixtures are used in illuminating through by means of several lighting

efficient, durable and high quality light fixtures.

The research was carried out by questionnaire as well as observation on the

month. The research was voluntary as well as random so as to avoid biasness.

BSBMKG607 Assessment 3 Version: v18.0 Page 4 of 18

BSBMKG607 Assessment 3 Version: v18.0 Page 5 of 18

demanded by consumers, 22 million which is equivalent to 16 % are light fixtures.

region which is the largest market for lighting and fixtures.

The growth rates are demonstrated in the graph shown below:

Hurzin, they gave the following responses:

Efficiency of Hurzin’s Lighting fixtures Responses in %

Very efficient 87%

fittings from Hurtzin, these were the responses:

purchase the lighting and fitting products from Hourtzn.

gave the following responses:

Price level Responses

Validity and reliability of data

To confirm the validity and reliability of the collected data, a correlation

measured the variability of data.

BSBMKG607 Assessment 3 Version: v18.0 Page 8 of 18

spend on the products.

Analytically, project performance was in line with research project. To begin

addressed comprehensively. As pointed out by research report, all research questions

were addressed comprehensively. Also, the described methodologies outlined in the

to accomplish as noted by previous researches of such significance and magnitude.

BSBMKG607 Assessment 3 Version: v18.0 Page 9 of 18

Research guidelines are crucial in conducting research. Research guidelines help

the host institution.

the store to ask for the products.

BSBMKG607 Assessment 3 Version: v18.0 Page 10 of 18

1. Researchers are expected to maintain honesty during the research process,

including, generating data, analyzing data, publishing the findings as well as

pointing out areas of weakness.

BSBMKG607 Assessment 3 Version: v18.0 Page 11 of 18

research and will attract serious penalties

1. Researchers should maintain a high degree of openness to the relevant parties

2. Researchers are expected to provide relevant data and materials to other

researchers provided that intellectual property rights are not infringed.

Observing professional standards and legal requirements

1. Where applicable, researchers are expected to observe professional standards

including scientific methods when undertaking their research.

unnecessary law suits and penalties.

1. The researchers are expected to follow the professional code of ethics

undertaking their research.

BSBMKG607 Assessment 3 Version: v18.0 Page 12 of 18

institution to foster easy exchange of ideas.

1. The host institution should provide appropriate direction of research as well as