MBA

Assignment - Consumer Behaviour

Assignment - Consumer Behaviour

CASE STUDY BPL SANYO REFRIGERATORS

MBA

Assignment - Consumer Behaviour CASE STUDY BPL SANYO REFRIGERATORS

Situation BPL Sanyo is about to launch a refrigerator, which is one of its kinds and has been built using the state of the art technology. It is a high end refrigeration system with new features being brought to the market for the first time. Mr Peter, the head of marketing team are pondering over the following questions towards forming a strategy for launch of the new refrigerator: How should it be positioned? What should be the distribution? What should be advertising? What should be its contents, appeal, and visualization? What should be the brand name? Should be called it refrigerator or refrigerating system? Should we use verbal copy or visual copy? What should we state in the body copy of the ads? What problem should our product is seen to solve? How do we get the consumer or customers to have a look at our product?

It is endeavored to answer the above questions by understanding the type of consumer and analyzing the consumer decision making process Type of consumer who purchases high end refrigerator Although the man of the house may be involved in the purchase process, it is an observed fact that the woman is the main decision maker in case of a refrigerator. An up-class, married and working woman with kids has the need to store lots of fruits, vegetables, milk products and frozen foods. Also being a lady with high social affiliation, she wants to store lots of drinks and ice to be able to conduct big parties at home. Consumer decision making process during purchase of high end refrigerator. Having identified the type of customer, the consumer decision making process is analyzed below:1. Need

The following needs are identified for a refrigeration system at the high end segment:(a) Stated need : The consumer wants a refrigeration system with excellent features and great looks. (b) Real need : The consumer wants a refrigerator to boast/show off as her prized possession (Aspirational Value). (c) Unstated need : The consumer expects good after sales service and a free cleaning kit from the dealer. (d) Delight need : The consumer would like the dealer to do free home delivery, installation and demonstration. (e) Secret need : The customer wants friends to see her as a savvy and classy consumer.

MBA 2.

Assignment - Consumer Behaviour Information Gathering/Search

For purchase of a high end refrigerator customer will use the following platforms for search of information:(a) Internet : Online stores, feature/price comparators, reviews, company website etc (b) Word of Mouth : Advice/ Recommendation of relatives friends and colleagues hold a key to forming strong image about the product brand/features. (c) Television Ads : TV advertisements can create a strong influence for consumers to search for further information from other sources. (d) Magazines : Ads. in home dcor and interior design magazines are regularly referred by the working woman for furnishing their homes. (e) Experiential source: Individuals own experience with a brand product/ prior handling of a particular product feature is perhaps one of the top three drivers of consumer bias for/against a brand. (f) Window shopping : Consumers may do a window shopping to check out the product features/looks/price, etc. 3. Evaluation of Alternatives : The alternatives are evaluated on the basis of the consumers criteria and the relative importance of these criteria. They are then ranked and a choice made. For a high end refrigerator following are the criteria in the order of importance towards purchase decision:(i) (ii) (iii) (iv) (v) (vi) (vii) Brand name Features, look and feel Free home delivery, installation and demonstration After sales service Price Discounts Free cleaning kit

4. Purchase : The purchase act involves the exchange of money or a promise to pay for a product, or support in return of ownership of a specific good, the performance of a specific service, and so on. Purchase decisions remaining at this stage center on the place of purchase, terms and availability. If these elements are acceptable, a consumer will make a purchase. 5. Post-Purchase Behavior: Frequently, the consumer engages in post-purchase behavior. Buying one item may lead to the purchase of another. Re-evaluation of the purchase occurs when the consumer rates the alternative selected against performance standards. Cognitive dissonance, doubt that a correct purchase decision has been made, can be reduced by follow-up calls, extended warranties, and postpurchase advertisements.

MBA

Assignment - Consumer Behaviour

Having understood the process of consumer decision making, an endeavour is made to answer the following questions:1. How should it be positioned? It is should positioned as an aspirational brand and a class refrigeration system which meets the complete family requirement and whose acquisition makes the customer a very proud owner. 2. What should be the distribution? The distribution should be done through high end single brand consumer product show rooms in malls and up-market places. It is also important to make it easily available for customers and accessible for those prospective customers doing window shopping for information search. 3. What should be the advertising? What should be its contents, appeal, and visualization? The aspirational brand value of the product must be advertised. The TV advertisement can project the pride of the owner (lady of the house) while showcasing her new refrigeration system to the guests during a party. Excerpts from an article on aspirational branding is placed at annexure.

4. What should be the brand name? Should we called it refrigerator or refrigerating system? It should be positioned as a refrigerating system with high aspirational value. The probable brand names are:(a) BPL Sanyo Smart Ref System (b) BPL Sanyo Elegant Ref System (c) BPL Sanyo Platinum Series Ref System 5. Should we use verbal copy or visual copy? We need both to build a powerful brand. Advertising today is a visually oriented discipline. And we have Confucius to thank (or blame) for this state of affairs. Confucius' famous saying, "A picture is worth 1,000 words," has been quoted endlessly in advertising circles in America. Branding is a onetwo process and it doesn't start with the visual. It starts with the verbal. So the first question a marketing manager must ask is, "What is the verbal? What is the verbal message we are trying to put into consumers' minds?" That's the nail. It's not that the nail is more important than the hammer, but the nail is the first decision a company needs to make. Often marketers will focus his or her entire attention on the visual without considering whether the visual hammer will hit the right nail3. It is extremely important that the verbal and visual message must match with each other to create the occupy the intended position in the consumers minds.

MBA

Assignment - Consumer Behaviour

6. What should we state in the body copy of the ads? Your familys complete refrigeration system. 7. What problem should our product is seen to solve? (a) Refrigeration requirement of a complete family with both parents working and having kids (b) For those who improve their financial status obtaining the brand is now an affirmation of their success and new found social status. 8. How do we get the consumer or customers to have a look at our product? (a) Launching a television campaign on fresh food, fitness and health (b) Product display boards at key locations in shopping malls on launch of the new product (c) Creating a buzz by displaying the new product at the center of all shopping malls like cars

Annexure

MBA

Assignment - Consumer Behaviour

Aspirational branding selling the dream2

Creating an aspirational brand usually takes a lot of time and investment. If you have lots of both then this type of branding really pays off. Ferrari, Rolex, Dolce & Gabbana, The Ritz, Rolls Royce, the IPod and Nike are all aspirational brands. Through their advertising and branding campaigns they promise sophistication, attractiveness and individuality. We too can be cool, we can compete, we can look great and feel great, we can just do it, be it, live it. Unfortunately for many the aspirational brand is just that an aspiration. An unaffordable luxury tantalisingly out of reach something to aspire towards. Branding an aspirational product or service has a lot to do with supply and demand. If you can create a high demand for your product or service and then only produce a limited supply then you can charge a high price. This price takes your brand outside the finances of the majority of the market making it a symbol of success/status. A high price is also taken by some consumers as an indicator of quality. Interestingly though the quality of the product/service itself does not necessary have to be better than its competition, it only has to be percieved as being better. A symbol of success Many customers aspire to be rich with the assumption that life will be better and more fulfilled (it is of course!). Consumers like to buy into the dream or, at least feel like they may at some point in their life be able to afford the dream. The assumption developed by aspirational branding is that in obtaining the brand they will in some way improve their life and the perceptions of people towards them. For those that do improve their financial status obtaining the brand is now an affirmation of their success and new found social status. Aspirational branding- some key points to take into consideration 1. The demand for your product should be well in excess of the supply. When everyone wants your brand but few can obtain it then it can become an aspirational brand. The main advantages with this are that your profit margins will increase and demand for your product/service will be much more predictable. You are however purposefully excluding the majority of your potential market in exchange for greater security and stability. 2. The brand should actively look to charge a premium. The immediate assumption is that because it is more expensive it must be better. If the majority of the interested market cannot afford it then they aspire to afford it. 3. The brand image and associated advertising must tie into the aspirations of the target customers. It is vital that you understand your customer base. Your brand logo design needs careful consideration. 4. Supply should be actively limited to ensure that demand remains high.

MBA References :-

Assignment - Consumer Behaviour

1. Consumer Behavior by Leon Schiffman and Leslie Lazar Kanuk - Fifth edition 2. http://www.startupbranding.co.uk/aspirational_branding.php 3. http://www.brandingstrategyinsider.com/2009/09/creative-strategy-visual-or-verbal.html