Annexure-V- Cover Page for Academic Tasks

Course Code: MKT509 Course Title: Consumer Behaviour

Course Instructor: Prashant Chauhan

Academic Task No.: 2 Academic Task Title: Case Study – Group Discussion

Date of Allotment: 17march’2020 Date of submission:28 march’2020

Student’s Roll no: A23 Student’s Reg. no:11908709

Evaluation Parameters: (Parameters on which student is to be evaluated- To be mentioned by students as
specified at the time of assigning the task by the instructor)

Learning Outcomes: (Student to write briefly about learnings obtained from the academic tasks)
Learnt how to apply theoretical concepts in practical and real time situations in given company’s case study

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other student‟s work or from
any other source except where due acknowledgement is made explicitly in the text, nor has any part been written
for me by any other person.

Student’s Signature:

Evaluator’scomments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator‟s Signature and Date:

Marks Obtained: Max. Marks:

 FREITAG-DESIGING A Brand From Nothing But Waste
Introduction:
This case is written by Thomas Buergi and Marc-Elliott Spafford from FHNW Universtiy of
applied sciences and arts of north western Switzerland . As we know Switzerland is one of the
cleanest countries we have in the world. It mainly focuses on things which get recycles with
the waste of Aluminium foils, Cans, paper etc. They take these decisions bounding to
Environmental issues. Daniel and Markus Freitag brothers both are designers of Zurich, they
came up with an idea to make use of old truck tarpaulins , Tubes in bicycle and safety belts in
car as their main materials for their FREITAG bag. Their idea was so accepting as the bag was
Swiss made Carry all , which was inspired by the way New York. The hand-made FREITAG
bags and FREITAG accessories, among them wrappings for all major APPLE products,
are attractive to a world community of consumers in Zurich, Tokyo, ny or London. the
beginning had not been a simple one, though. The inexperienced Freitag brothers had to
find out their business lessons the hard way. Their step by step approach and their being
loyal to their core values honesty and sustainability paid call at the end of the day .
FREITAG has always remained FREITAG. the training objectives are to:
(1) develop a brand around a particular set of values
(2) interact with a community and learn from its members
(3) resist the temptation to grow at a quick pace
(4) stay faithful your values while expanding your product line and
(5) remain creative and versatile while exploring foreign markets.

Recommendations:

NEED RECOGNITION :
The potential FREITAG customer is looking for a solid , trendy and individual item to transport
his belongings safely, weatherproof and comfortable. Still, the outward appearance is important
to him and not everyone should have a similar or equal bag.The FREITAG customer reacts
most notably to external stimuli, for example :obtained information of his close socio -
environment.

SEARCHING INFORMATION :
It's because FREITAG is rather modest with its advertisement, the commercial sources are less
important to a potential FREITAG customer. The marketer is not directly taking influence on
him. The focus is stronger on personal sources like mouth to word advertising of friends and
family, or the to see and to be seen factor. After searching for channels of FREITAG, he uses
the most important commercial source; their website. There, the customer is getting in touch
with the vast product segment and its individual designs.
Evaluation of alternatives:
Generally consumers evaluate the products/bags mainly according to its quality. Cost-benefits
ratio, weather resistance and life-span.
Due to the prior information search, it is obvious that the market of bags is huge. On that
account, the influence of the socio-environment and the sympathy to the company is a main
factor for the customer's choice.

Purchase Decision:
The final decision is taken mostly due to the function and design of the FREITAG products
and its changeable utilization. For example, a FREITAG bag is totally water and weatherproof,
solid, handy, but still design driven and unique.
The loyalty to the band is less important.

Post purchase Behaviour:

A satisfied FREITAG customer uses his high qualitative and long lasting product in various
ways. It underlines his individuality and fulfil his expectations in design and function. Through
wearing, he automatically generates a commercial source.

Macro Environment
STEP Strategy

Sociological:
Through the RIP character (recycled individual products) the bags are responding to the trend
of individual products.
Over the last twenty years, other competitive products entered the market and caused that
FREITAG products are regarded as being less unique as before The original customers of
FREITAG lab products grew older.
Above was the picture advertising FREITAG
The main consumers for FREITAG nowadays can be defined as late majority:
- Targeting Gen X and Gen Y
-Lifestyle changed from recycling to individualism.

Technological:
-R.I.P are mostly produced by hand
-Self-developed FREITAG production process:
raw materials, cutting the traps, washing, bag design, sewing
Sewing of the bags done through partners in Switzerland, Czech, Republic, Bulgaria, France,
Portugal and Tunisia.

Economical:
-FREITAG wants to enter new markets.
-As the traps gets more scarce the company will have to deal with increased costs, which either
have negative effect on the margin or raise the product price.
-The treat of used material causes additional costs and is time consuming.

Political:
-Regulated use of water.
-Foreign policy of Switzerland affects the exports.
-Changes in bilateral contracts.

Comparison with competitors:

FREITAG'S idea is highly known to the consumer and its market segment for more than two
decades, so that its help factor got slightly decrease due to mass consumption. However the
trend of individualism and environmental consciousness provides chance to gain back its
Pioneer reputation the technical ability to combine machine made manufacturing with
handmade solutions supports the individual character. Economically can be summarised that
FREITAG tries to expand by using products made out of scarce raw materials. Both factors
combined create a high risk to run out of material before development of foreign market is
finished. Probably prices will increase in future due to the difficulty to find truck tarpaulins.
Especially expansion with Europe good turn out to be difficult due to the exclusive Swiss
market and the consequences of the latest immigration law. Also research about competitiors
prove that expansion could become very challenging because the market is covered with
product out of truck tarpaulins. Additionally, FREITAG'S reference line enters a market of
highly completed fashion accessories.
After an intensive search about the brand FREITAG , Individualism and Storytelling and their
sustainable character as their strengths. However, they face high competition within their
market. Especially, the reference line could carry the risk of loosing FREITAG's individual
character since the shapes are strongly related to common fashion items of mainstream
companies. Competing with these fashion items could force FREITAG to loose it's timeless
design and character.
Another fact is that they are forced to think about an alternative material. Moreover several
countries not even know truck tarpaulins. However this knowledge is essential to understand
FREITAG story and message. It is questionable to plan to enter new markets by using a
material that is slowly running out and also highly unknown timing would be perfect to
introduce products out of different material since customers expect FREITAG to act as a
Pioneer. the company could even take the risk to create something totally different due to their
great innovative reputation.

Geographic is about dividing market in two different geographical factors that targets the
urban market. One of a survey results that 80% of the bag on a live in a city or in a sub urb of
a city.

Demographic segmentation divides the market into groups based on variables such as age
gender and income the age of customers is between 19 to 40 years with 64% the age group 19
to 24 years is mostly represented 75% of the fright tagbag owners a female the income range
of right that customers covers no income to over 130000 CHF a year. The biggest share with
28% are people with an income under 16000 CHF closely followed with 20% each of them the
income range 35000 to 60000 CHF and 60000 to 100000 CHF

Psychographic is about dividing bias into different groups based on lifestyle of personality
31% of the participants are using their bag for a learning environment another 29% for leisure
time

Conclusion:
Focusing on the brothers as the face of the company could promise great success but it could
also lead to a disaster if staff changes are happening. To avoid any risk, storytelling could
slightly move towards presenting a certain spirit as the face of the company.
To conclude the service offering a city bike tour would promote the sustainable spirit of a bike
culture, would add a service that mainstream competitors do not have, would support
individualism since each bike tour is different and move away from the truck topic. Also one's
own story about the FREITAG City bike tour could be included in the story telling process. In
future FREITAG could expand the idea to different target groups and different cities as well.
Taking this facts into account, one can say that the FREITAG City bike tour will be a great
success and a step forward towards a new innovative offering.

References:
• https://www.zoominfo.com/c/freitag/372527143
• https://poseidon01.ssrn.com/delivery.php?ID=47702902911908500807602001503006
508703001705901200400200010109509909508408907311610000105501312500604
705510001812107010911906505505000806408210701210712011711507401103706
900109408500012500002608408311201310300312102309908502312502300906612
1025012106003&EXT=pdf
• www.moderncraft.blogspot.com/2008/09/freitag-bags.html