Type of Study
The type of study adopted by Emil Vicale is an exploratory study. He does not have a specific goal or problem to solve by the study; instead, he is only interested in establishing the viability and feasibility of the toy production company. According to Dudovskiy (2019), exploratory research studies aim to investigate a problem that has not been clearly defined. As implied by the name, its main objective is merely to explore the study question or the identified problem and not provide any conclusive results to aid decision making. Exploratory studies are often used to better understand a problem, a potential business opportunity, or a gap in the field of economics.
Following increased individual requests for his brand of custom-made toys and action figures, Vicale decided to conduct an exploratory study to investigate the potential for the action figure business (Schindler, 2019). In general, the research is done in a descriptive format assessing and reporting on several market trends and relevant competitors, such as Hasbro. Dudovskiy (2019) highlights that the exploratory research design is developed to help researchers and entrepreneurs explore an existing problem or gap in the market in varying levels of depth. It starts with general understandings or ideas of business opportunities and builds to identify specific issues that can be the focus of future more comprehensive studies aimed at developing solutions for decision making.
Recognizing the potential for venturing into action figures, the president of Hero Builders uncovered details such as the extent and scope of the doll industry through an internet search. After identifying the main competitors, Vacale then additionally investigated the retail environment. It revealed that toy stores started to stock more Hero villain toys on their shelves as they attracted customers. The entrepreneur also discovered a significant competitive advantage over all the other manufacturers in his Rapid Prototyping Technology (RPT) and the uniqueness of developing dolls in the image of modern-day heroes who many people related to. The firm ultimately found that prototypes’ uniqueness positively affected the growth of the sales figures.
Research Evaluation
Because Vicale only formulated an exploratory research process before the hero and villain action figures launch, HeroBuilders.com’s research was ineffective. According to Schindler (2019), six major standards are significant and are required for business research to be successful and provide ample information for effective decision making. These standards include a clearly defined purpose of a study, a thoroughly planned and executed research design and methodology, adoption of practical ethical standards in the study, adequate analysis to supplement decision makers’ needs, and a detailed reporting and justification of the findings and conclusions made. Nunn and McGuire (2010) advance that effective business planning and research enables a business to leverage adequate information, knowledge, and competence of the human resource to develop strategic goals and directions for an organization that contributes to the best chances of success.
Vicale initiated this research to identify the most suitable growth strategy for the action figures e-commerce (dependent variable). The company’s efforts to introduce their action dolls into the existing toy retail market was the independent variable (Schindler, 2019). The fact that girls were found to be also interested in such toys became the moderating variable. The researchers asked lawyers to assess possible effects to the growth strategy if competitors introduce their hero dolls prototypes (the control variable). Media was the confounding variable since it increased the number of requests making the company produce more dolls to meet the demand. The main obstacle was high competition threatening any possible growth strategy.
However, the study lacked any focused research topic or purpose, such as identifying a niche market or developing an effective marketing strategy for the new products they were bringing into the market. The study did not have a well-planned and executed research strategy either and did not offer any meaningful solutions regarding how to sell the product on the toy market for maximum productivity of the resources used and ultimate profitability. As a result, although the company experienced significant success launching the hero and villain action figures into the market, they were soon overwhelmed due to significant unpreparedness.
Research Plan
Following the exploratory study, Vicale should have carried out more detailed and focused research to ensure the development of an effective market entry strategy to assure adequate preparedness and success. In addition to the internet search that revealed the harsh competition within the doll-making industry and the retailing and legal issues, effective product and customer analysis, marketing, and retailing strategies had to be included in the study. These issues would further uncover insights concerning potential partnerships and other market characteristics such as a niche market and effective pricing techniques.
Despite already receiving multiple requests for the product from friends, Hero Builders had to conduct a product and customer analysis. It would contribute immensely toward adequate decision-making on the number of products required, the different types, and the specification of products needed. Additional research would also provide feedback on the popularity and quality of the products to enhance growth and development further. Chang and Taylor (2016) affirm that conducting product analysis and involving potential customers in the idealization and launching stages of new products impacts the ultimate financial performance of the product both directly and indirectly through accelerating the time to market. This would help the company better plan adequate volumes of the product and avoid unpreparedness.
Moreover, a marketing strategy analysis would help the firm identify the best ways of promoting the final product to the masses and how to best launch it into the market, maximizing profits and positive outcomes. Obasan, Ariyo, and Banjo (2015) confirm that marketing factors such as product, promotion, price, and place strategies are significant considerations in business since they are directly linked with the ultimate product performance within the market. Conducting a marketing analysis would help introduce the Hero villain action figures effectively into the doll business and consequently yield maximum outcomes and success.
References
Chang, W., & Taylor, S. (2016). The Effectiveness of Customer Participation in New Product Development: A Meta-Analysis. Journal of Marketing, 80(1), 47-64.
Dudovskiy, J. (2019). Exploratory Research – Research-Methodology. Research-Methodology. Web.
Nunn, L., & McGuire, B. (2010). The Importance of a Good Business Plan. Journal of Business & Economics Research (JBER), 8(2). Web.
Obasan, K., Ariyo, O., & Hassan, B. (2015). Marketing strategy and product performance: a study of selected firms in Nigeria. Ethiopian Journal of Environmental Studies and Management, 8(6), 669.
Schindler P. S. (2019). Business Research Methods (13th ed.). McGraw-Hill.