Business School Assignment Cover Sheet – Group Business School Assignment Cover Sheet

Business School

Assignment Cover Sheet – Group

Business School

Assignment Cover Sheet – Group

Student Number: Z5198274 Name: Yue Hu

Student Number: Z5385184 Name: Yiming Wei

Student Number: Z5379235 Name: Lifeng Lin

Student Number: Z5390686 Name: Zhongzhuo Deng

Student Number: Z5382650 Name: Xinlei Lin

Course: MARK5811 Applied Marketing Research Tutor: Terrence Chong

Lecturer: Ting Yu Tutorial Day: Monday Time: 7pm-9pm

Assignment: Research report

Date due: 19th November Date Submitted:

_________________________________________________________________________

I declare that this assessment item is my own work, except where acknowledged, and has not been submitted for academic credit elsewhere, and acknowledge that the assessor of this item may, for the purpose of assessing this item:

Reproduce this assessment item and provide a copy to another member of the University; and/or

Communicate a copy of this assessment item to a plagiarism checking service (which may then retain a copy of the assessment item on its database for the purpose of future plagiarism checking).

I certify that I have read and understood the University Rules in respect of Student Academic Misconduct.

Signed: ………….…………………………….. …………………….. Date: …….…/……….…/……..

Signed: Yiming Wei Date: 18/11/2021.

Signed: ………….…………………………….. …………………….. Date: …….…/……….…/……..

Signed: ………….…………………………….. …………………….. Date: …….…/……….…/……..

Signed: ………….…………………………….. …………………….. Date: …….…/……….…/……..

NOTE: It is considered Academic Misconduct to SIGN ON BEHALF OF ANOTHER STUDENT.

I declare that this assessment item is my own work, except where acknowledged, and has not been submitted for academic credit elsewhere, and acknowledge that the assessor of this item may, for the purpose of assessing this item:

Reproduce this assessment item and provide a copy to another member of the University; and/or

Communicate a copy of this assessment item to a plagiarism checking service (which may then retain a copy of the assessment item on its database for the purpose of future plagiarism checking).

I certify that I have read and understood the University Rules in respect of Student Academic Misconduct.

Signed: ………….…………………………….. …………………….. Date: …….…/……….…/……..

Signed: Yiming Wei Date: 18/11/2021.

Signed: ………….…………………………….. …………………….. Date: …….…/……….…/……..

Signed: ………….…………………………….. …………………….. Date: …….…/……….…/……..

Signed: ………….…………………………….. …………………….. Date: …….…/……….…/……..

NOTE: It is considered Academic Misconduct to SIGN ON BEHALF OF ANOTHER STUDENT.

Date due: ____________________ Date Submitted: ________________

Please note ALL group members must sign this cover sheet themselves

Individual commentary to be provided separately

Mark/Grade: _________________

Hello Fresh

Marketing Research

(word count: 2950)
Table of content

1

Executive summary 4

Introduction 5

Marketing challenge and objective 6

Research method and procedures 7

Data analysis and findings 9

Recommendations 11

Conclusion 14

Limitation 14

Reference 15

Appendix 19

Executive summary

Introduction

Marketing challenge and objective of Hello Fresh

Marketing challenge

Meal kit is a quick and convenient solution for time-pressed consumers, so it’s not surprising to see that convenience has become a major positioning appeal this quarter, and that it has grown over previous years (Mitchell, 2020). Growing competition from other food types has also led to healthier meals, with some products reducing additives and adding more natural ingredients. But as the market grows, Hello Fresh is facing the following challenges (Mitchell, 2020).

1. The competition is strong

For Hello Fresh, its biggest competitor is Dinnerly, Dinnerly is a recent entrant after launching in 2017 and seeing rapid growth. There is a stark difference between the way these two position themselves in the market, with HelloFresh offering a relatively premium service and Dinnerly focusing on a low-cost, affordable offering. However, they both fundamentally offer a weekly box of ingredients that can be cooked up into tasty meals at home (David, 2021).

However, despite the different market positioning of the two companies, the two companies belonging to Meal Kit share the same market, and Dinnerly has become the biggest challenge for HelloFresh. At the same time, more and more enterprises have seen the business opportunities in the Meal Kit industry and have chosen to join the competition. For example, “Every Plate”, the latest rookie in 2021, has made extraordinary performance just after it entered the Australian market (David, 2021). The strength of established competitors and the increasing number of new brands could lead to a gradual decline in Hello Fresh’s market share.

2. The number of customers decreased after lock down ended

According to research released by ForgeRock on Wednesday, 40 per cent of Australian respondents said they would use more digital services, including online shopping, in the wake of the COVID-19 pandemic, but 64 per cent said they would revert to grocery shopping. As more and more Australian states announce the lifting of the lock down, Australian consumers gradually turn their attention to offline supermarkets and generally choose to go shopping, which will have a huge impact on the Meal Kit industry. This will lead to the direct loss of some valuable customers for Hello Fresh. How to deal with the decrease of customers after the lock down will be a big challenge for Hello Fresh (Food Box Mate, 2021).

Research Objectives

The company is now expanding its customers’ meal options, offering more than twice as many recipes a week, as well as a range of new side dishes, desserts and lunch options. The trend in consumer healthcare towards buying food online and the expansion of its distribution networks across the country have also seen their demand rise, with their meal kits now available to more than 84 percent of the population, up from 72 per cent last year (Plastow, 2019).

In the fourth quarter of 2020, HelloFresh revenue grew 143% year-over-year to $51.8 million during the same period. The company has almost tripled its local workforce in the past year.

HelloFresh CEO Tom Rutledge says the company distributes more than 500 million meal kits to families around the world each year and is one of its fastest growing markets.

He said the COVID-19 pandemic has led to more people trying their meal packs as customers look for alternatives to going to supermarkets (Plastow, 2019).

As Hello Fresh’s market share and revenue grow, it will become more important to listen to consumers’ demands, so it is necessary to conduct a survey on consumer satisfaction. To maintain or increase market share and improve competitiveness, this research will adjust the development direction of Hello Fresh in the future based on the understanding of real customer needs and customer satisfaction

So the objective of this research will identify the consumer satisfaction about shopping experience by using hello fresh in Sydney, Australia.

Marketing Research method and procedures

This report applies primary and secondary data to help determine the research objective and analyse consumer satisfaction about shopping experience by using hello fresh. Moreover, this report would adopt a qualitative research method to better understand the research goals and obtain accurate data. The sampling strategy of the report will specify the target group, sampling frame and sampling technique, and also determine the sample size. Thirdly, it would use online questionnaires to analyze the sample population for quantitative research.

Research method design

The most appropriate research method for this study is a quantitative method to investigate a large number of customer satisfaction. As one of the most important methods, this quantitative method is practical and effective for market researchers to study (Queirós, Faria & Almeida, 2021). The advantage of using quantitative methods is that it converts answers into numerical data. This is useful for powerful statistical management. Furthermore, the advantage of the quantitative method is that it is inclusive and diverse. It is a broad and creative form of research to obtain a larger number of more reliable results (Queirós, Faria & Almeida, 2021). It helps HelloFresh to understand the attitudes and opinions of consumers. This study determined several independent variable factors related to hello fresh customer shopping experience satisfaction through quantitative research, such as customers’ values, opinions and attitudes.

Secondary data and survey

This report adopts secondary data analysis to analyze current and past hello fresh customer satisfaction, and to better help researchers identify the marketing objective, which not only saves a lot of time and cost, but also helps researchers to conduct further research more easily. Hello fresh provides one of the lowest price meal kit products on the market. In Australia, Hello fresh is favored by many consumers because they want more convenience when preparing meals at home (Mailloux, 2017). According to Mailloux (2017), starting from January 2018, HelloFresh’s impression score has risen from 15 to 18 points. In addition, HelloFresh’s customer satisfaction has recently reached a peak of 26 points. This survey attempts to measure whether hello fresh satisfaction is still at its peak after three years. With the development of the meal kit industry, Australians have begun to pay more and more attention to food health issues. Good food and nutrition are important for good health and well-being and may reduce the risk of disease. Healthy eating means choosing the right foods and knowing how much to eat (Moores, Bell, Buckingham, & Dickinson 2020). In particular, millennials are concerned about their ability to pay for healthy food for a long time. Hello fresh has always provided low-cost and high-quality healthy food. This is why many Australians choose hello fresh. And with unexpectedly delicious recipes and flexible plans, HelloFresh has always been rated as the best food delivery service in Australia (Gibson & Partridge 2019). After obtaining the information from the report analysis, the researcher determined that the research method to achieve the marketing objective is survey. The objective is to identify customer satisfaction with the hello fresh shopping experience. The type of survey will be descriptive, and the motivation for the research is to find out what has happened. Descriptive research is usually defined as quantitative research. In order to achieve this survey goal, this survey aims to evaluate customers’ values, opinions and attitudes towards hello fresh. Descriptive surveys are the primary condition for obtaining results and improving the customer’s shopping experience. The final decision on the appropriate survey method is online questionnaires. In the current severe circumstances of the coronavirus era, online questionnaires are the most appropriate method of market research. In addition, online questionnaires are also a cost-saving, reliable and time-saving survey method. Due to the convenience and availability of the Internet, online questionnaires are one of the most responsive methods. Because of the popularity of the Internet, it is certain that the survey response may be more ideal. Online questionnaire surveys are one of the most frequently used data collection techniques.

Sampling strategy

The research will be located in Sydney, Australia. The target audiences are students, workers and other millennials who have previously purchased Hello Fresh. The sampling frame could be drawn from the customer database provided by Hello Fresh, and also the collected information of the respondents would be kept confidential. In order to better identify Hello Fresh’s customer shopping experience satisfaction, this report adopts a cluster sampling method. For example, the report would survey customers who have purchased Hello Fresh in Sydney, Australia. A simple random sampling technique is used to select customers from the Sydney area. According to Rahi, Alnaser, and Abd Ghani (2019), The most popular recommended rule for sample size is 200 per group. So the sample size of this report is determined to be 200 samples.

Questionnaire Design

The questionnaire would be presented in the form of a general description at the beginning, proving that the questionnaire is detailed information about the purpose of the research. The online questionnaire contains nine questions, and it takes about 3-5 minutes for the respondents to answer. However, some respondents are concerned that some online surveys also have fraud and privacy security issues (Kharraz, Robertson, & Kirda, 2018). Therefore, the questionnaire is designed to be anonymous to ensure the privacy and security of the respondents, and with mandatory questions to ensure that the respondents are distinguished from customers who have consumed hello fresh, and only customers with consumption records are kept. The QR code of the questionnaire will be distributed through various channels such as social media and websites. The results will be obtained automatically when the respondent submits the answer to the questionnaire, and the results of questionnaires with less than two minutes of response time and some unanswered questionnaires were eliminated to ensure the accuracy of the survey results. The research questions are based on the unique selling point of hello fresh. For example, the recipes provided by hello fresh, pricing satisfaction, delivery service, consumer shopping frequency, customer loyalty and recommendation. All the factors mentioned will be applied to measure the satisfaction of hello fresh’s customer consumption experience. Moreover, the questionnaire contains multiple choice and scoring questions. Respondents would answer the questions by clicking on the options. It contains questions in different formats in case the respondent feels that the survey question is of a single form and reduces the response rate. The questionnaire provides time-saving, closed-ended questions that are easy to answer and analyze. It does not contain open questions, so the respondents would not be confused and difficult to analyze. A total of two hundred online questionnaires were sent out in this study, and 115 true and accurate questionnaires were received.

Data analysis and findings

Sorting from all questionnaires, we collected a total of 115 highly reliable and complete questionnaires. Putting all the data together in an appendix for further study. This is a simple index of the data:

experience: how satisfied and dissatisfied with the experience,

price = how satisfied and dissatisfied with the price,

recipe = how satisfied and dissatisfied with the recipes,

recomm = how likely would people recommend Hello Fresh to friends,

quality = rate of the product quality,

again = how likely are people to purchase again,

category= which category do people consider the most important

In the preliminary exploration of the data, we checked the average value of each variable. The mean value of Recommend is 6.14, which was higher than our expectations since the average value of the Experience variable was only 5.91. We believe this may be caused by the fact that while Hello Fresh still has a lot to improve, its differentiation strategy still makes it stand out from its competitors in the ingredient supply industry.

After having an initial exploration of the data, we conducted ANOVA tests on the variables ‘Experience’ and ‘Recomm’ respectively. We hope to find out how each variable affects customers’ retention and recommendation intention through ANOVA. The results show in the picture below.

It can be clearly found that the factors influencing customers’ recommendation intention are ‘experience’, ‘recipe’ and ‘quality’, while the price has no significant influence. This confirms that the most attractive feature of Hello Fresh is its unique services and products. We believe that when a consumer recommends Hello Fresh to their friends, the fast, efficient shopping process and unique taste in ingredients will be the most attractive advantages. At the same time, we found that all factors significantly influenced customer retention, which is not a surprising result. These factors are critical for any food supplier to improve service and customer loyalty.

However, it is difficult for companies to improve multiple services at the same time. To further explore where Hello Fresh should focus on during its first step, we started with a simple visualization of ‘Which category do people consider the most important’.

As can be seen from the figure, what people care most about is whether the food material is healthy(healthy ingredients), followed by whether the material is convenient for cooking, and the least people care about is price. Thus, a possible strategy for Hello Fresh would be to offer more healthy eating options while lowering difficulties of cooking with all those healthy food packages. This further shows that The food package differentiation of Hello Fresh is one of the main ways to attract customers. On the other hand, we also made a linear regression model for the variable ‘again’.

According to the regression model, ‘price’ and ‘quality’ are the factors that significantly affect ‘again’ (customer retention). This result is consistent with our analysis of data visualization. The more satisfied people are with price and quality, the more likely customers are to buy again. The linear regression model is:

Again_rate = 0.2485*Price_rate + 0.366*Quality_rate – 0.3451

This means that every time people’s satisfaction with the price increases by 1, customers’ willingness to re-consume will increase by 0.2485. When customers’ evaluation of product quality increases by 1, their willingness to consume again will increase by 0.366. It is worth noting that for enterprises, it is not easy to reduce product prices, which is closely related to technological development and enterprise business strategy. It is relatively easy to improve the quality of products. Besides, compared with the price rate, the quality rate is more significant, which means that it is more likely to improve the enterprise in the short term. Therefore, we believe that short-term goals to improve product quality and provide a healthier choice of ingredients would be an effective direction.

Recommendations

From the findings, the marketing of the product Hello Fresh needs to be based on the most important aspects of the product to the customer. The rationale behind this is that the overall aim of marketing is to gain the confidence of consumers in the product being offered (Hanssens and Pauwels 2016). Once confidence is gained, then brand loyalty is achieved, which is a vital factor in the sales of a product (Hanssens and Pauwels 2016). Since product quality and price are the most important aspects of the Hello Fresh product, its marketing strategy should be based on these two aspects. However, as pointed out previously, it is difficult to reduce the price, then the go-to strategy is concentrating on the quality and the value of hello fresh in the eyes of the consumer. Therefore, the recommendation is to improve the quality and health of the product and work on convincing the consumer that the product is of high value to them and that they need it.

To the consumer, product quality is vital. The reason for this is that consumers buy products to satisfy a need that they have (Whelan and Kronthal 2019). Hence, hello fresh should strive to understand effective ways to solve their customer’s needs and consequently, meet their demand. High product quality is also important if consumers are to establish a connection with the brand and hence count the company as reliable in meeting their needs (Diptura and Yasa 2021). Of importance to note is that if the quality of hello fresh is to be improved, then the company has to listen to the opinion of the consumer about what quality is to them. As much as consumers want products that satisfy their needs, they associate quality with varied aspects of a product such as ease of use, durability, longevity, efficiency, and its safety level (Razak, Nirwanto and Triatmanto 2016). Hence, the proposed quality improvement should be customer-driven, with other factors such as technology being used to help produce what the customer wants (Razak, Nirwanto and Triatmanto 2016). Besides, factors associated with quality differ with the product in question, hence the need for a market survey to establish what consumers associate with quality in hello fresh.

Seeing that hello fresh is a food product, its health benefits are often used to assess its quality. In the recent past, consumers including millennials and generation z have become more conscious of their health. The two population groups make up a large market segment, hence their evaluation of the usefulness of the product in terms of health is an important aspect of quality that has to be put into consideration in the making of hello fresh.

Making high quality the basis of marketing has been proven to be an effective marketing strategy. According to the findings of this study, improving the quality of the product is more beneficial than even the pricing of the product. If quality is assured, then consumers are ready to pay comparatively high prices for products offered (De Giovanni and Zaccour 2019). This is especially true if the customers are convinced of the value and need of the product. Even with higher prices than those of competitors, if the customers feel that they are receiving value for their money, then the product is likely to sell, despite the higher prices. Furthermore, the findings prove that the quality of hello fresh influences other key aspects of effective marketing such as customer retention, and recommendation to other people. Based on all of the above arguments, the producers of hello fresh implement a marketing strategy that focuses primarily on product quality. The strategy should consider what the customer considers high quality for the hello fresh product and improve its quality based on customer feedback. With high quality, the consumer will see the value of the product, hence buying it even at high prices.

Conclusion

Limitation (Rewrite)

Survey is a simple and efficient way to obtain statistical data, but its disadvantages are also obvious. It’s just hard to get detailed feedback. Taking our research as an example, our questionnaire can reflect a general satisfaction situation, but it is difficult to find out the deep-seated reasons and understand customers’ detailed thoughts.

Reference

Australian Financial Review. 2021. HelloFresh expands as meal kit orders soar. Viewed 16 November 2021,

Gibson, A. & Partridge, S. 2019. ‘Nutritional Qualities of Commercial Meal Kit Subscription Services in Australia’, Nutrients, vol.11, no.11, pp.2679.

Kharraz, A., Robertson, W. & Kirda, E. 2018, ‘Surveylance: automatically detecting online survey scams’, Security and Privacy, pp. 70-86.

Mailloux, M. 2021, ‘Impacts on the Interest Level of Consumers Toward Meal Kit Delivery Services’, La Salle University Digital Commons, viewed 16 November 2021, .

Mate, F. and Mate, F. 2021, ‘Australian Meal Kit Industry Survey Results | Food Box Mate’, Food Box Mate. Viewed 16 November 2021, .

Mate, F. and Mate, F. 2021, ‘HelloFresh vs Dinnerly (2021) | Comparison & Discounts | Food Box Mate’, Food Box Mate. Viewed 16 November 2021, .

Moores, C., Bell, L., Buckingham, M. & Dickinson, K. 2020, ‘Are meal kits health promoting? Nutritional analysis of meals from an Australian meal kit service’, Health Promotion International, vol. 36, no. 3, pp.660-668.

Plastow, K. 2021, Coles, ‘Woolworths feel pressure as meal box delivery grows,’ The New Daily. Viewed 16 November 2021, .

Queirós, A. Faria, D. & Almeida, F. 2017, ‘STRENGTHS AND LIMITATIONS OF QUALITATIVE AND QUANTITATIVE RESEARCH METHODS’, Oapub.org. Viewed 16 November 2021, .

Rahi, S., Alnaser, F.M. & Abd Ghani, M. 2019, ‘Designing survey research: recommendation for questionnaire development, calculating sample size and selecting research paradigms’, Economic and Social Development: Book of Proceedings, pp.1157-1169.

Hanssens, D.M. and Pauwels, K.H., 2016. Demonstrating the value of marketing. Journal of marketing, 80(6), pp.173-190.Viewed 16 November 2021

Whelan, T. and Kronthal-Sacco, R., 2019. Actually, consumers do buy sustainable products. Harvard Business Review.Viewed 16 November 2021

Diputra, I.G.A.W. and Yasa, N.N., 2021. The Influence of Product Quality, Brand Image, Brand Trust On Customer Satisfaction And Loyalty. American International Journal of Business Management, 4(1), pp.25-34.Viewed 16 November 2021

Razak, I., Nirwanto, N. and Triatmanto, B., 2016. The impact of product quality and price on customer satisfaction with the mediator of customer value. IISTE: Journal of Marketing and Consumer Research, 30, pp.59-68.Viewed 16 November 2021

De Giovanni, P. and Zaccour, G., 2019. Optimal quality improvements and pricing strategies with active and passive product returns. Omega, 88, pp.248-262.Viewed 16 November 2021

Appendix

Questionnaire

Q1 How often do you shop with Hello Fresh?

#

Answer

%

Count

A.

Once a week

16.52%

19

B.

Once every two weeks

43.48%

50

C.

Once every three weeks

24.35%

28

D.

Once a month

15.65%

18

Total

100%

115

#

Field

Minimum

Maximum

Mean

Std Deviation

Variance

Count

1

Q1 How often do you shop with Hello Fresh?

1.00

4.00

2.39

0.94

0.88

115

Q2 How satisfied and dissatisfied are you with the experience of Hello Fresh?

#

Field

Minimum

Maximum

Mean

Std Deviation

Variance

1

Very dissatisfied – Very satisfied

3.00

7.00

5.91

0.91

0.83

Q3 How satisfied and dissatisfied with the price of the product?

#

Field

Minimum

Maximum

Mean

Std Deviation

Variance

Count

1

Very dissatisfied – Very satisfied

3.00

7.00

5.84

0.88

0.78

115

Q4 How satisfied and dissatisfied are you with the recipes of Hello Fresh?

#

Field

Minimum

Maximum

Mean

Std Deviation

Variance

Count

1

Very dissatisfied to Very satisfied

1.00

7.00

5.81

1.09

1.18

115

Q5 How are you satisfied and dissatisfied with the delivery services of Hello Fresh?

#

Field

Minimum

Maximum

Mean

Std Deviation

Variance

Count

1

Very dissatisfied to Very satisfied

2.00

7.00

5.77

1.04

1.08

115

Q6 How likely would you recommend Hello Fresh to your friends?

#

Field

Minimum

Maximum

Mean

Std Deviation

Variance

Count

1

Very unlikely to Very likely

3.00

7.00

6.14

0.88

0.78

115

Q7 How would you rate the product quality of Hello Fresh on a scale 1 of 10?

#

Field

Minimum

Maximum

Mean

Std Deviation

Variance

Count

1

1

4.00

10.00

7.84

1.32

1.74

112

Q8 How likely are you to purchase again from us?

#

Field

Minimum

Maximum

Mean

Std Deviation

Variance

Count

1

Very unlikely to Very likely

1.00

7.00

6.00

1.15

1.33

111

Q9 Which category do you consider the most important while choosing Hello Fresh?

#

Field

Minimum

Maximum

Mean

Std Deviation

Variance

Count

1

Q9 Which category do you consider the most important while choosing Hello Fresh?

1.00

5.00

2.62

1.33

1.76

114

#

Answer

%

Count

1

Convenient for cooking

25.44%

29

2

Exquisite recipes

22.81%

26

3

Healthy ingredients

30.70%

35

4

Economic price

6.14%

7

5

Food delivery service

14.91%

17

Total

100%

114

business.unsw.edu.au

Last Updated 29 July 2014 CRICOS Code 00098G

business.unsw.edu.au

Last Updated 29 July 2014 CRICOS Code 00098G

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