Co-operative group strategic perspective of renewable energy

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

The main objective of this dissertation is to study the Co-operative group strategic Perspective of renewable energy and how company winning up the challenge of tackling global climate change as among the worlds leading business. When you look ten years back where The Co-0perative use to on the ball winning up the challenge of global climate change. EU presently struggling to recovery from the recession and the on path to sustainable low carbon expectations. As this time EU has tremendous opportunity for their economy recovery to improve country's energy security to take the opportunity as tackle challenge of climate change through the investments of decarbonised energy sectors.

The main question is the EU's currant emissions target as 20% reduction from 1990 levels by 2020 and all so the target that looks to not enough to drive the low carbon change. By setting the high target of the 30% reduction the private sector deliver to approach the private sector will build low carbon future to move to target of 30 % will be accommodates good achievement of predictability for the investors. As carefully studding of where the UK use to be continues with companies in a wide range of sectors are now realizing that there are benefits in also getting involved in renewable energy.

As study back to last few years where UK use to be present the service at present UK renuweble energy prjeact and industry revolution for tackling climate change had been one of the their main primary objectives on the vition and mition statement . According to the new parliament of UK aims deliver policy idea of ensure that progress to made tackling climate change for north sea oil reserves and take attention energy security whilst keeping the country on the track to go for the reducing the carbon by 34%by 2020 .

"In the frigid opening days of 2009, Britain's electricity demand peaked at 59GW.

Just over 45% of that came from power plants fuelled by gas from the North Sea.

A further 35% or so came from coal, less than 15% from nuclear power and the rest from a hotch-potch of other sources. By 2015, assuming that modest economic growth resumes, a reasonable guess is that Britain will need around 64GW to cope with similar conditions."

"How long till the lights go out?", The Economist, August 6th 2009.

The according to the review of the UK renewable energy strategy that the country needs to reduce emissions of the corbon dioxide and other greenhouse gases. And the new strategy of the UK renewable energy will be work with the cuple with nuclear power, carbon.

The target of 2020 the UK renewable energy strategy suggests that renewbles can fill more than 30% of electricity (5.5% today) expecterd form the wind with contribution of the hydro, bio energy , marine sources and the smole scale tecnoligies . 12% of the heat witch present 10% shuld come from the biomass, biogas ,solar and the heat pumps . below the chat 1 valued explanation these shares with the comparison to 2008 renewable energy use and projection 2020 levels based on the current policies

Energy strategy

The Co-operative Group's energy strategy focuses on The Co-operative Food's stores, distribution and the Group's head office operations, which comprise over 90% of the Group's energy use25. The energy programme is directed by a Programme Board chaired by the Managing Director of The Co-operative Estates. There are three areas of focus: the encouragement of staff

behavioural change and better housekeeping; amendments to the standard ongoing refit programme; and a retrofit programme designed to reduce energy at the most energy-intensive stores. Capital expenditure of ï¿¡7.6m was committed in 2007/08 with a further ï¿¡10.3m approved for the period 2009 to 2011 inclusive.

The Renewable energy association of UK

The renewable energy association ( REA ) take lead of the renewable energy producers and the and introduce of all the renewable energy operation to the UK . REA had been established in 2001 to support and the represent the British renewable energy prociders and the increase the usage of the sustainable energy in the UK . The association take the lead of most of the UK organisation with project devolpments (fuel, power suppliers, and service providers ) and association head as the largest renewable energy industry association in the UK .

The REA main object to mainly secure the best legislative and framework for the expanding renewable energy production and the undertake policy developments and provide inputs to the government.

According to the REA they expect two ways of improving this

1. Energy efficiency, to reduce the energy usage and ensure that which is used is more productive

2. Sustainable energy - buying or producing renewable energy to cover most or all of commercial needs

Adopting the above objectives REA had been projection of the renewable as supplementary a business stream

Providing new opportunities to farmers & landowners for renewable energy projects to the growing energy crops or renewable fuels.

An Identifying the partners in the sector to meet projection of the business objective

An investing and the funding opportunities including financial networks for the sustainable energy

Establishing the renewable transportation option

Joint venture:

The "Operating joint ventures" are when two or more firms create an entity, a "child," to carry out a productive economic activity. (Harrigan K.R., 2001)

A framework is proposed for predicting whether firms will cooperate in forming joint ventures or other forms of inter firm cooperation. The framework also posits which forces de-stabilize cooperative ventures, and suggest Conditions where strategic needs are best served by joint ventures (Harrigan, 2001)

In the growing economy and to cope-up with competitions, the managers and entrepreneurs are also growing in their skills. Joint ventures have long been used by entrepreneurial firm to expand in new markets. Still their lies some questions such as,

What of the use of joint ventures within mature economies?

What of the firms whose markets are being invaded by global competitors? (Harrigan, 2001).

There are lot many recommended tools for measuring the competitive behaviour and industry structure. The research was pre-supported by the strategy research centre, Columbia University. The article in the journal sketches out "operating joint ventures" which are created due to international competition. The operating joint ventures are when the two or more firms create an entity. The article also gives an overview about what the parent firms might configure to achieve their status in competitive market.

Wind farms and renewable electricity generation

the co-operative all of the electricity needs to the group (808gwh) was supply by mainly wind and hydro technologis . this achived as world largest purchasers of green electrocity and its supports annual saving of the 434014 tonnes co2 saving.The group made trimendus impruvements in the devolopments of the their own renuveble energy capacity . The project that The co-operative devolopments are

Goole, Yorkshire the co-operative own land with 14 turbine wind farm is had been capable of suppling 28MV electrocity power to 16000 homes annually.

Coldham, Cambridgeshar wind farm developed in 2006 with eight turbine for 16MV

Extension of the Coldham wind farm for another seven turbine in 2008

In 2008 at New Mills , Derbyshire the Co-operative owend smole hydro project and it had fill the 81000 KWH eleactrocity by the end of year 2008.

The second project granterd for small hydro in Yorkshire in February 2009

As an out come of this all hard work group recived renuweable energy assotion pinior aword in 2009 and this is the second time aword that group recived after 2007.It has proved the only company that had won two time this oword

Green house Store CO² Refrigeration Systems

The recent technology developments of the greenhouse gas storage moving at pace in UK large food Store. Among the co-operative business specially in the food store the management had been understated the food store air conditioning and refrigeration operation are major source of greenhouse gas emission because of the high usage of hydroflurocarbon system. It has been identify the as a global worming potential and its is thousand time more than the carbon dioxide (Co2). The leakage of the refrigeration gas systems with the co-operatives reduction had been achieve at appointed contractor whose focused on the maintenance of the equipments. the cooperative has positive identify the maintain of the equipments and reduce the environment impakets with their innovation technology at the Manchester Store. As the present food supply chain depends upon refrigeration its imprtence to see and analyse the refrigeration contribution to greenhouse gas emissions in every stage of the operation. Its great study of the how the food store contribution to improve greengas eficenciy of the equpments and as a practice reducing with the operation targets with the cold chain. According for the peper studies genaraly 20% to 50% percent of energy saving posibilites for the by improving the efficiency of the refrigeration in stores .in other way impruments of the efficiency can be achieved from right maintenance of equipments.

The potential of reducing refrigeration energy usage.

The study of points that the ways of saving energy and methods of energy efficient structure through development of the new technologies have been place in the current food stores in the UK. There many companies has been experience huge amount of reducing emissions from the supermarket cold storage. Generally 20% to 50% considerable amount of energy can be save through the proper maintenance and the usage of the equipment.

As an example cold storage or refrigerations has to ensur mantenanse of the equpments , the proper door seals ,that the doors are properly close and with out any leakages .

There are many advices available for the refrigeration energy use such as the Carbon Trust , the institute of the refrigeration and the international institute of refrigeration.

As some of the advices are summarize below for guide to important efficiency gains.

Stand-alone fridges freezers and refrigerated display cabinets

The stand -alone refrigerated are the comenhoigh useage becose the attractiveness with the product displys and ease of the operation objectives. That mean this units are expecterd to operate or use most of the time of the day and it is unexpecterdly often operate inefficiently and waste energy

The few areas are that can be attend

Make sure the right temperature maintenance to control overcooling and it will not improve the product quality.

The products in the table are only a guide. Refer to the Food Safety (Temperature Control) Regulations 1995.

The fitting of seals should good condition and it should not allow leak of the cool and worm air to enter in the setup. The seals has to be pro up with service technician unless this make the work more and waste energy for nothing .

Efficeant controle of the light in ht cold space and make use of internal light in the refrigerated spaced off at the trading hours.the energy consumby the lights and remve the heat controle by refrigerator door swetch. It should be properly work

Overfilling of the refrigeration will be effect to the cold air flow and redusing the active performance of the whole systerm . specealy open display refrigerated require effert to coold air out of the lord products and will cost of more effort to keep up the refrigeration .

The worm air acsess cuse the refrigeration hader to work. As an examples hot cooking equipment , deract sun light and by ensuaring more than enough vanterlation to main tain the cool.

the proper insterlation of the night blinds are well effective way of keep cool air when the operation are finish .

Cooled storerooms

In food Stores mostly operate cooled storerooms as for their storage of the chilled and frozen products, energy for the refrigeration might be stand for half of the total energy bill. Well planed method of housekeeping will be important cooled store room's large reduction of the store running cost.

The right Temperatures of rule

Most cold cold store rooms are maintaining lower temperature than actual request of the temperature due to uncertainties about the equipment failure. In reality overcooling a storerooms are increace the chance of the equipment failure with increasing the duty on the refrigeration plant the stores operation (Staff) believes the set of the lower temperature will be able to cover few hours grace to get the contractor to repair any failed parts of the components before the perishable products beat their storage temperature. Its always be the practice of ensure that the right temperature for the fulfil of the requirements of the safe storage of food

Control of the air change rate

The exchange of the air in cooled storerooms can account for up 30%of the heat weight because enters of the worm air. The store can be plan or fixe the self-closing doors and operation staff has to ensure remain doors should closed as practice and frequency. As a classic example , the build -up and amount of the ice on the cooled room floors and walls can be understand as high level of the air change cool room. As food store coolstoroom doors might rgulary used for the requrmants and installation of strip curtain to prevent cool air exchange with the worm air. The curtains should be not damage strips and wll fitted for the stay in the good condition. The maitance must the places cand be exchange the worm air in the cooldroom , especially seams between panels, damagers and conveyors .

The Evaporator Performance

In generally the function below the level of 0°C will cause ice builds up and all so causing the refrigeration system to work harder. The effect to the capacity drop due to build up on ice. As a result the cooled room might not able fill the required temperature. The regular defrosting will be avoid ice builds on the evaporator is important to maintain the performance and the efficiency levels. To stop the development of the ice the store must check the and pland efficency defrost systerm on stor leval mainly it should function correctly and all so defrost systerm set the heat load in the operation area to sufficient controle of building ice level in the stor room . staff must ensur the product ars stork in order rater than the stacked under or in frount of the evaporator as as it will effect the air flow around the stor room, it will as result of the high temperature and consequently . that mean the refrigeration system will concuming more power than the aht it needs .

Controle of the heat lord

The generation of the heat load of the additional equipments shul be minimise the heat of the evaporator fans ,lighting will be reduse 35%of the heat generate by the refrigeration system .

Actions to be taking

Replacing of the lower power fan mortars

Get the teqnicale advise from the specel maintenance contaractor

Average evropertor carrys two or mor fans witch is not need to running all the time nesseseraly to assurance of airflow of the storeroom some of the fan can be simpaly modify with the on and off with accordance reqwarments of the temperature .

Regular check of the lighting systerm if is not require switch off and it should be energy eficent lamps witch is energy efficents lamps .

Concidration of the additional equipment of lift the supply off heat for the as an exaple other mortars for charging devices .

Ensuer the people owen heat that they wear good safty coold cloth for their owen safety and reduse the energy cost of the systerm

Proper door seals for not provide for the any extra heat into the system as broken down doorseals contribute the increase of the power consumption by the 11%

Finaly over cooling of the products are not extra benefiting and it will be increase the chance of the defolt of the equipment as well as wast of energy

There are many other way of the saving money and improve the refrigeration system in the store. The strong store mangemant for operation of the refrigeration systerm will be the next step for the improve efficency and conciderable saving by the following steps

knowledge and study about the system.

Strong identification of the where the mechanism are located, check the key factors that ihave describe above and monitor consumptions period of time and mishearing about the improvements.

Understandin about the operation agenst the systerm usage

the importence of the understanding study the way in the systerm is operated and is their any issues to be address such as doors , the lording of worm products in the cooled room and temperature controls .

Identify and get actions if request any special advice or discuss the more complex or wide arias with the maintenance consultant


British Refrigeration association

Carbon Trust

Institute of Refrigeration

Make some arrangements with operation staff energy saving policies and efficiency measure system in place.

Staff awareness

In the store operation staff and employment commitment for the energy saving and efficency useage can be help for change in the work place . to reduce energy useage , cut cost , improve the competitive envarmant and its contribute the profits through reputation to the organition . energy evairness progrums develop internal change, ideas ,and the mortivation every operation staff to use energy efficiency. Starting with the staff awareness for the energy awareness program according to the carbon trust UK thay have been list out the four essential steps to satisfy the key awareness programs creating organization vision, commitment and capability should be lead by the CEO and Senior Management team.

The support and buy-in of all staff are also required. Strategic conversations need to be facilitated amongst the line management and key stakeholders to complete the strategy design. Ian Brooks (Leadership of a cultural change process) gives an example of how a chief executive, Frank Collins, and a cadre of skilled managers, managed to win both hearts and minds at the National Health Service (NHS) general hospital. The change from outright objection to overt support of their unit gaining self-managing Trust status is a classic example to prove how important the support and buy-in of key stakeholders are in change implementation

Its important to understand planning is basis of the program witch is communicate energy policy organize document witch is express what target to be achieved, how organisation meet the cooperate goal and what are the stake holders expects for how to improve energy efficiency of the operation.

Strategy Implementation Process The key challenges and implications of the strategy do not require a change in scope but merely realignment. The nature of the change is sudden or 'Big Bang'. As such, the change can be described as 'Reconstruction'.

Source: Adapted from J Balogun and V. Hope Hailey, Exploring Strategic Change. Prentice Hall 1999

In order to implement this change in order to achieve its business strategy, The Co-operative shop needs to implement both a Short-Term Plan and a Long Term Plan.

Short-Term Plan


Included in Plan

Need further focus

Customer/Market Perspective

Customer/Market Perspective

Further uplift the standards of service at all customer touch points, example Services, Quality standards , Ticketing Offices, Overseas Offices, Airport Services

Develop a Customer Charter that detail customer rights and entitlements

Internal Systems and Processors

Internal Systems and Processors

Maximising sales opportunities through E-Marketing, SriLankan Holidays, and other non-traditional channels and markets

Redrawing of the Company's organisational structure

Further increasing punctuality and operational efficiency

Upgrading the Company's products to match the finest industry standards.

Continued investment in automation and modernization of systems in all key areas Operations, Finance, Communications, Inventory, Logistics, and Management Systems.

The strength of the other SBUs like Engineering, IAA etc could have been utilised to offer value additions when negotiating 'Codeshare arrangements' in order to get better rates and optimise benefit from the deal.

Use of 'Matrix Structure' to further enhance process effectiveness by taking a holistic view.

Finance Perspective

Finance Perspective

Reducing of frequencies on less profitable routes

Increasing frequencies to more profitable destinations

Matching of aircraft types to specific routes to increase profitability

Increase network revenue by using revenue management optimizing models

Focus on the Company's top ten cost items, to reduce usage, whilst negotiating lower prices from suppliers

Curtailing of corporate sponsorships and advertising

Whilst reducing the top ten cost lines needs to be done considering the external pressures, it could have been better focused if the approach taken was 'Optimising value' rather than 'Cost Cutting'.

Learning and Growth Perspective

Learning and Growth Perspective

Enhancing employee productivity through different models in working patterns and working hours and steps

Increase training and development of staff especially those who have direct contact with the customers

Long-Term Planning

The Long-term initiatives can be analyzed under 3 key areas;


Hewlett-Packard is a company that has, for a long time, been conscious of its culture; 'The HP Way' and has worked hard to maintain it over the years. Hewlett- Packard's corporate culture is based on 1) respect for others, 2) a sense of community, and 3) plain hard work (Fortune Magazine, 1995). HP's growth and success over the years has been due in large part to its culture. Another successful company that expends a lot of energy in maintaining its workplace culture is Southwest Airlines. Herb Kelleher, Southwest's CEO in an article written in the ACA (American Compensation Association) Journal, Winter1995 issue attributes the success of Southwest Airline to its corporate culture.

In a 'Reconstruction' change process, it is important to ensure that a conducive culture is created within the organization in order to ensure effective implementation of the strategy as well as to ensure that the strategy sustains on the long-run. Therefore, focusing on the 'Culture Web' of the organization is critical.

Stories - The key question in this context is 'what core beliefs do the stories reflect?' The medium used by The Co-operative shops to communicate these stories is their monthly news letter. This includes the events and success stories of staff and the company as well as commendations on excellent service.

Symbols - In terms of 'symbols' there does not seem to be any key organizational symbols at the co-operative . As described in the book 'Fish Sticks' (Stephen C.Lundin, John Christensen and Harry Paul), effective use of symbols can help staff to discover their personal responsibility and contribution to the overall strategy and vision and how they could live 'Vision Moments'. These 'Vision Moments' relate to living the core values and beliefs of the business that help realize the strategy.

Power Structure - The Power Structure at the Co-operative is hierarchical and formal in nature. The existence of various unions has also resulted in the power distance being high. The new management team was able to break some of these barriers and was able to get the involvement of the unions in the strategy development process. However, the representation at these strategic committees was not in the capacity of individuals but as unions. Therefore, the varied interest of the individuals that constitute the committee may have prevented in achieving optimum results of the collective effort.

Structures - The Co-operative shops are operates on a conservative structure. Cross Functional Teams have been used on an adios basis when the need arises. In terms of strategy development, cross functional teams were used and these included representatives of the The Co-operative shops as well. However, there is no evidence of cross functional teams in the strategy implementation process or for continuous review of strategy to address strategic gaps. Furthermore, it can be argued that the absence of a matrix structure may hinder the creation of a cohesive unit that is critical in process optimization as well as implementation of strategy.

Control systems - The Co-operative has put in place control systems to monitor and manage the key deliverables relating to its strategy. In terms of its efforts to differentiate via operations , instant feedback mechanisms have been put in place. A separate documents page for feedback has also been created on their corporate web site. Furthermore, service standards and service level agreements have been established with both internal departments and external stakeholders to ensure that The Co-operative maintain the competitive edge that it has set out to achieve through its strategy.

Rituals/routines - In the early 2000s, HSBC launched a global initiative titled 'Managing for Value' (MfV). This initiative resulted in staff reviewing each activity they engaged in and questioning if it adds value to the organization, are resources used been optimized and if the activity / process can be done better. Over the course of this initiative, this became a routine. Some even referred to this initiative as a philosophy. Regrettably, The Co-operative has not initiated any rituals or routines in support of its strategy. This can be viewed as a critical drawback in creating a culture that supports and sustains its strategy.

Communication options


Checking and reviewing


A view of Strategy formation through the Strategy Lenses

Better understanding of an organizations strategy development process can be gained through the use of strategy lenses. The three strategy lenses are design lens, experience lens and idea lens. It is very important to view the development of an organisation strategy from all three lenses because viewing the strategy through only one lens may result in failure to see issues raised by other lenses (Johnson, Scholes & Whittington; 2005).

The Co-operative shop UK development process also can be viewed through these three lenses as discussed below.

Design Lens - It is the deliberate positioning of the organisation through a rational, analytic, structured and directive process (Johnson, Schools & Whittington: 2005). The Co-operative mainly adopts a design lens as the top management is involved in developing the strategy of the organization.

Experience Lens - The experience lens views strategy development as the outcome of individual and collective experience of individuals and their taken for granted assumptions (Johnson, Scholes & Whittington: 2005).

Idea Lens - The idea lens sees strategy as the emergence of order and innovation from the variety and diversity which exist in and around organizations (Johnson, Scholes & Whittington: 2005).

Chapter 3: Methodology

"Knowing what you want to find out leads inexorably to the questions of how will get the information.'"

-Miles and Huberman (1994, pp.42)

This chapter provide the task methodology for research. It will state research methodology, which more includes research plan, research sampling approach, questionnaire and interview with some of the delegates like store managers , Area energy champions stores, executive and operation staff of the Co-operative shop. According to the last chapter the literature review combines with the research equation of this study is brought up . Methodology is the fine answer to the equations and the way the research ware carried out in the right manner. This contribute opportunity of the get a correct answers for my research questions and all so its achieved good insights in to the proposal at hand . The main attention and the focus of the methodology here is determined by primary research, accordingly undertaking research that is novel in nature and all so this will highlights the methods that would be to attempt to use explore this study . The choice of the research approach is the starting point discussed and explains this chapter, followed by the collection of the data analysis. The limitation of the research methodology all so express at the end of the chapter .the basic limitation is because of the time factor and was less time to get ready the paper and meet the deadline it was not possible me to meet some of the de personalities for the face to face interview there are some lots of limitations witch I have attention and discussed end the chapter .


3.2 Research Methods

"Research means different things to different people" (Amartunga, Baldry, Sarshar and Newton, 2002) and the meaning behind it are to investigate innumerable data, theories, experiences, concepts and law. "The procedural framework within which the research is conducted" is the definition of research methodology. (Remenyi et al., 1998).The two broad and distinct approaches to social research cover the Quantitative and Qualitative methods of enquiry. As per passage of Bryman and Bell (2007) in one of his paper, Questionnaire is the distinct form of qualitative analysis only, Data is collected from large number of participants which are referred in paper as either data or samples. On the other way, qualitative analysis can approach in a form of field notes, interview transcripts, and documents which grant information in more details (Bryman and Bell, 2007). Qualitative measurement is appropriate when the possessions of data collected is needed

Quantitative research has been branded as the "science that silences too many voices" since it relies heavily on remote, inferential empirical methods employed to extend and reinforce certain kind of data, interpretations and test hypotheses across samples. This leads to the failure of capturing the participants' perspectives (Denzin and Lincoln, 2000, pp.10). It follows rigorous methods and procedures which allow generalization of the findings, to measure and analyze causal relationships between variables (Denzin and Lincoln, 2000). Thus the area of research where the topic under study is large and also when there is a need to deduce casual relations between variables, then the use of quantitative method can be justified, (Gordon and Langmaid, 1988) which is not the case in this study hence the quantitative approach has not been opted for.

The qualitative concept on the other hand intends to gives a throw knowledge of understanding, study and insight into a particular situation or phenomenon, by on condition that answers to questions of 'how?' to a certain extent than 'what?' (Miles and Huberman, 1994). Unlike qualitative research which occurs in natural settings, quantitative research is where hypotheses are established. (Silverman, 2000; Creswell, 2003). 37

3.3 Why Qualitative Approach for this Research?

"Qualitative research is often cast in the role of the junior partner in the research enterprise, and many of its exponents feel it should have more clout and more credit."(Dey, 1993)

The main benefit of using qualitative research methods in marketing and advertising research is that the consumer gets an opportunity to actively voice their opinion and such an opinion is not shaped by the methodological assumptions of quantitative research (Creswell, 2003). Qualitative methods are generally considered capable to present richer and more expressive data, compared with quantitative research methods (Silverman, 2000) and this is the reason the researcher uses this method in the current study.

Qualitative methods of conducting research can be valuable in bringing closer the corresponding respondents and the researcher closer to one another. This facilitates in a more effective understanding of the research topic under study. (Easterby-Smith et al, 2002)

Qualitative research gaining popularity has various reasons which were recognised and listed by McDaniel, Jr and Gates (2002). The very first motive was that qualitative approach proves to be more economical than quantitative approach. Also the qualitative approach is the best way to understand the in-depth motivations and feelings of the consumer as it results in first-hand experiences with flesh-and-blood consumers and witness consumers' reactions to concepts and hear them at length, in their own language. In addition of the above two, it has been found out that qualitative research also has the power to increase the efficiency of quantitative research. (McDaniel, Jr and Gates (2002). 38

Qualitative research is highly appropriate in areas where people's motives, thoughts, feelings require reasoning and also where the individual experiences need to be explored. (Gordon & Langmaid, 1988). Every respondent has an idiosyncratic manner of perceiving things which may or may not be congruent to the researcher's standpoint.(Renzetti & Lee,1993)

In context to the research topic of this study, a qualitative method of enquiry is justified as the views on the perception of the Indian consumers about celebrity endorsement are highly subjective and difficult to measure by the researcher. The use of qualitative research mode will facilitate an interpretive study of a particular issue where the researcher is central to deriving logic of the responses received from the respondents (Silverman, 2000), which is different from quantitative research where the role of the researcher is to take an isolated stand.(Duffy, 1988) as a qualitative researcher is more involved with the truth as perceived by the respondent rather than the objective truth.(Burns, 2000)

3.4 Data Collection

"The diverse forms of qualitative data collection and the multiple goals of qualitative research inhibit development of a uniform approach to the extensiveness of qualitative data collection." (Sobal, 2001)

3.4.1 Primary data

The data collection method in this particular research comprises of two forms namely primary and secondary data. "Data collected specifically for the research project undertaken" is the definition of primary research as provided by Saunders (2003: pp 486). Primary 39

data is generally originated by any researcher to address any specific problem or issue at hand, where the only drawback is that it can be expensive and time-consuming. The various ways of gathering primary data is through surveys, focus group, observations and interviews.


In the process of reviewing the literature on celebrity endorsement a gap was detected in viewing these issues, from the perspective of young Indian customers. In an attempt to bridge this gap, qualitative interviews which were based on an open-ended interview guide that was well designed to collect first hand information.

In sync with the precept of qualitative research which reasons that systematic inquiry must occur in a natural setting and not in an synthetically controlled one such as an experiment, (Silverman, 2006), interviews should take place "to find out what is on someone's mind….We interview people to find out from them those things we cannot directly observe" (Patton, 1990).

Interviews is that qualitative tool that has the flexibility to be adapted to the level and personality of the respondents, last as long or as short as you think necessary, and draw out the spontaneous reactions of the respondents(Hanabuss, 1996). The interviews give voice to common people, open them for a close personal interaction between the researchers and their subjects allowing them to freely present their life situations in their own words, and. (Kvale 2006)

"Interview procedures come in a number of forms, but can most easily be distinguished by the degree of structure used by the researcher in the interview process". (Arnould, E.J., Wallendorf, M., 1994). According to Seidman's (1998) in-depth interviewing utilizes open-40

ended questions that constructs and directs the probing of participants' answers and the goal of in-depth interviewing is to get the participants reconstruct his or her experience within the topic under study. All the participants were interviewed face-to-face and the interviews lasted for about half a half on an average. Open-ended rather than closed-ended questions, unstructured rather than structured interview schedules since qualitative research frequently involves face-to-face contact between researcher and subject, and the samples are also typically small. (Cannon 1988)

3.4.3Pilot test

A pilot interview was performed with the help of an Indian student in the University of Nottingham to check for any obstacle in the interview guide. This proved to be beneficial as it helped unveil that the interview questions needed to be rephrased in a more simple language to make it comfortable for the interviewees and the jargons and some unknown marketing terms present in the interview guide were to be done away with. Also the pilot test helped the researcher to get at ease with the entire interviewing process as the researcher was a novice. It gave an introductory idea of the responses and helped in reframing the questions and changing their order which would encourage more continuity in thinking.

3.4.4 Secondary Data

Prerequisite to the collection of primary data is a careful scrutiny of the existing secondary data. (Malhotra, 2005) Data that is collected from existing journals, reports and statistics from private and public institutions. For this specific study the collection of secondary data was done primarily from marketing journals already available on this topic. Secondary data helps the author to comprehend the perception of Indian consumers on celebrity endorsement better. One should proceed to primary data only when one has exhausted the secondary data 41

source. Thus the study carried out has analysed the primary data with the rationale and validation of the present secondary data.

However, one needs to be careful while using secondary data as maybe the collected data may be biased as the collector of that original data might have highlighted only a partial picture or another aspect may be that data may be quite old and also the data quality could be unknown. (Saunders et al, 2007).

3.5 Sampling Strategy

The process of sampling constitutes one of the principal areas of confusion, a problem not helped by the insufficient manner in which it is covered in the literature. (Marshall, 1996). There are no clear cut rules for sample size in qualitative inquiry therefore its determinant depends on what you want to know, the purpose of the inquiry, what will have credibility, what's at stake, what will be useful, and what can be done with the available time and resources. (Sobal, 2001) Thus, choosing a study sample is an important step in any research project since it is rarely efficient, practical, or ethical to study whole populations.

Qualitative researchers usually work with small samples of people, bound by unambiguous contexts, and studied in depth (Miles and Huberman, 1994). A particular form of nonprobability sampling called the Judgement sampling was used in order to select the interviewees 'at random'. Judgement sampling occurs when a researcher selects sample members to conform to some criterion (Cooper and Schindler, 1999). The sampling frame for this study were the young people in India aging between 21-26 years who were exposed to advertisements enclosing celebrities in general and known to be skilled in "making sense of complex imagery and illusions to the world beyond advertising" (O' Donohoe et Tynan 42

3.6Data Analysis

Once the data is collected it needs to be thoroughly analyzed in order to arrive to a valid conclusion. Since the chosen approach is qualitative in nature grounded theory has been used to evaluate the data. Strauss & Corbin has defined grounded theory as an "approach is a qualitative research method that uses a systematic set of procedures to develop an inductively derived grounded theory about a phenomenon".

Grounded theory is a process by which a researcher generates theory that is grounded in the data (Glaser & Strauss, 1967; Strauss and Corbin, 1998). The key to ground theory is to generate enough in-depth data that can illuminate patterns, concepts, categories, properties, and dimensions of the given phenomena (Glaser & Strauss, 1967; Strauss & Corbin, 1998). As expressed by Charmaz (1983), grounded theory occurs through the disassembling and reassembling of the data. This disassembling and reassembling occurs through the "coding" process. Coding is one of the means of developing the analysis as it serves to synthesize, summarize and sort many observations made of the data. (Charmaz, 1983: 112).

A serious problem associated with opting to use this approach is that the totality of the philosophy as expressed by the interviewee is destroyed while organizing the material though the process of coding. To overcome this problem, transcription of the taped interview has been suggested.(Wiseman, 1979: 278). Since all the interviews conducted were recorded with the permission of the candidates this need for transcription was possible and hence the primary data collected has been analyzed through the process of 'coding'. 44

The key areas under the chosen topic which has been analyzed against the data available from the literature review are the general perception of the Indian consumers about the celebrity endorsement process, their personal preference, does it result in brand recall and hence influence purchase, what are the views on multiple clebrity endorsement and the necessity of the existence of a appropriate relationship between the product and the celebrity. The impact of negative publicity and overshadowing the product has been explored. Also the importance of match up hypotheses has been investigated with the help of four examples of celebrity endorsements from India. (Refer to Appendix 1).

3.7 Summary

The chapter has described and authenticated the methods used for carrying out this study. By adopting the qualitative method the researcher was able to provide vivid picture as the research seeks to concentrate on richness of the response rather than on a simple 'yes' or 'no' approach. An in-depth and semi-structured interviews process was used which helped in a enhanced understanding of the individuals perception on celebrity endorsement. In order to reach far away consumers telephonic interviews were conducted. Also by conducting a pilot interview before carrying on with the actual interviews resulted in providing the correct direction to the research.

The following chapter the analysis and discussions of the data are done based on the theories given in the literature review

1998). The reason for selecting this age group is that, such advertisements usually target them as audience as they are known to think rationally and are well aware of communication activity called celebrity advertising and are marure enough to interpret it in a rational manner. As emphasized by Malhotra (2005) "Qualitative research is unstructured, exploratory in nature, based on small samples…" the sample size for this research study is 10.

3.5.1 Research Informant Profile Name