MASTER IN BUSINESS ADMINISTRATION Semester (Autumn-2011) Subject: Last Digit of Roll No : Topic: Practical Case Study On: Marketing

Research 1 Research On Consumer Behavior Procter And Gamble

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Acknowledgment I would like to thank Ms Naheed Akhtar and Mr Salman for their direction, assistance, and guidance. In particular, Mr Salman recommendations and suggestions have been invaluable for the project and for assignment. I also wish to thank to my concern Teacher, who have all taught me techniques of construction of 2nd Assignment. Special thanks should be given to my class fellows of A.I.O.U who helped me in many ways. Finally, words alone cannot express the thanks, I owe to, my teacher, for his encouragement and assistance in M.B.A .

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Abstract Consumer Behavior is concerned that people's products, services and for these products and services in response to Marketing activities. In theory, all enterprises are likely to conduct consumer behavior research, but in practice, when the Marketing Management were faced with a consumer-related issues, if there is a better than a consumer research solutions, They also do not necessarily need to conduct consumer research. Of course, if the Information is valuable, marketing personnel should be willing to pay a price for the acquisition of information. However, in doing so, the marketing of consumer behavior must have a correct understanding of: Consumer behavior is the enterprise in order to make a better decision-making carried out, it is a symbol of a highly professional operation. This paper argues that consumers should have a correct understanding of behavior, and on this basis, the argument in terms of scientific Research methodology should be noted, and last analysis of consumer behavior in the ethical issues.

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Table of Contents Introduction

Page 4 6 5 7 9 10 11

Marketers must be noted that the question

The Necessity to study Consumer Behaviour Case Study SWOT Analysis Conclusion Recommendation

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Introduction Consumer Behavior is concerned that people's products, services and for these products and services in response to Marketing activities. This paper argues that consumers should have a correct understanding of behavior, and on this basis, the argument in terms of scientific Research methodology should be noted, and last analysis of consumer behavior in the ethical issues. On the marketing staff, the consumer behavior of this topic is very important not only because of consumer behavior analysis is the basis for the formation of marketing strategy, but also because of consumer concern is the marketing of the business practices of the important contributions. More and more companies recognize that only a real understanding of consumers, enterprises can develop better products and services to consumers and more effectively market their products and services. The necessity to study consumer behavior Marketers must first have the market concept, if an enterprise to obtain maximum profit, we must anticipate and meet consumer demand. Therefore, the market analysis is to study the contents of the first consumers to understand consumer needs and desires and as the basis for developing business plans. Through scientific investigation and analysis of consumer behavior, many enterprises have obtained great success. For example, Procter & Gamble Company has developed the first trademark for the "Pampers" disposable diapers, this diaper is very convenient, easy to use and save time, but when these obvious benefits, in the early advertising and promotional activities were greatly exaggerated time, product sales are a pale. Later, P & G through

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scientific investigation and research, insight problem, that the mother is more concerned with the interests of the baby, followed by their own interests. The marketing practices from our point of view, the consumer research is not enough to do some research just asked advertising agencies to conduct some market research. Most of these surveys are just some statistical analysis of data, and less from the perspective of a real study of consumer behavior consumer. In theory, all enterprises are likely to conduct consumer behavior research, but in practice, when the Marketing Management were faced with a consumer-related issues, if there is a better than a consumer research solutions, They also do not necessarily need to conduct consumer research. Of course, if the Information is valuable, marketing personnel should be willing to pay a price for the acquisition of information. However, in doing so, the marketing of consumer behavior must have a correct understanding of: Consumer behavior is the enterprise in order to make a better decision-making carried out, it is a symbol of a highly professional operation. Some people think that investing in the consumer behavior research, the greater the greater the correctness of the decision-making. But the fact is not true. As we have seen many examples, as some enterprises have invested a considerable amount of research costs, but the end result was very poor. This was mainly caused by two reasons, the one hand, consumer behavior research itself is also of good and bad points. Good research will give operators to provide useful and often indispensable information, but there are also some studies are unhelpful. Marketers must be noted that the question: how to convert the consumer's reaction to actual sales performance? How to compare the actual

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purchase behavior, verify the consumer's preferences? Consumer behavior research does not guarantee the right decision, it can only provide information in order to increase the likelihood of a correct decision-making. On the other hand, consumers are sometimes the words and deeds. Enterprises in the Development of marketing, market research decisions tend to be based on reports, by consumers in the questionnaire answers given, ritualistically launch marketing activities. However, in the practical implementation of marketing activities, the process only to find that the market situation and the research results to differ materially. Consumer spending expressed ideas and actual consumer behavior, contrary to well-established businesses make goods or services have serious discrepancies in the overall decision-making. The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how

The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products, and retailers); The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and

How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

One "official" definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these

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processes have on the consumer and society." Although it is not necessary to memorize this definition, it brings up some useful points:

Behavior occurs either for the individual, or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use).

Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest.

Consumer behavior involves services and ideas as well as tangible products. The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy.

There are four main applications of consumer behavior:

The most obvious is for marketing strategyi.e., for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers, since they will in turn influence many subsequent customers brand choices.

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A second application is public policy. In the 1980s, Accutane, a near miracle cure for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the drug. To get consumers attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers.

Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic.

As a final benefit, studying consumer behavior should make us better consumers. Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size premium by buying the larger quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain.

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There are several units in the market that can be analyzed. Our main thrust in this course is the consumer. However, we will also need to analyze our own firms strengths and weaknesses and those of competing firms. Suppose, for example, that we make a product aimed at older consumers, a growing segment. A competing firm that targets babies, a shrinking market, is likely to consider repositioning toward our market. To assess a competing firms potential threat, we need to examine its assets (e.g., technology, patents, market knowledge, awareness of its brands) against pressures it faces from the market. Finally, we need to assess conditions (the marketing environment). For example, although we may have developed a product that offers great appeal for consumers, a recession may cut demand dramatically.

Our History in Pakistan

Procter & Gamble Pakistan, headquartered in Karachi, commenced operations in Pakistan in 1991. Our goal was to become the finest global consumer goods company operating locally in Pakistan. To fulfill this goal, we are serving Pakistani consumers with premium quality brands including Head & Shoulders, Pantene, Ariel, Safeguard, Pampers and Always that strive to make everyday lives better.
With commitment came growth, and in 1994 we acquired a soap-

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manufacturing facility sprawling seven acres of land at Hub, Balochistan. In 2002, the plant tripled its soap-manufacturing capacity with an investment of $3 million. In 2004, with an initial investment of about half a million U.S. dollars, a PUR facility was set up with a production capacity of 50 million sachets of the water purifier annually. The P&G Hub plant is the first of its kind in the world. It provides people access to safe drinking water and is able to export millions of liters across the globe. Today, the Hub plant is equipped with state-of-the-art manufacturing technologies and quality assurance processes and systems, reflecting the company's values of safe, hygienic and ethical manufacturing practices.

P&G Pakistan headquarters are consistently upgraded to the company's progressive values. Investments of $ 1.6 million have taken place in the workspace environment to date. The P&G Pakistan head office today hosts highspeed digital networks and advanced systems and facilities.

As a company with vast global experience, P&G has always believed in the potential Pakistan has as a country. Since 1989, the total amount invested by P&G Pakistan in assets, working capital and market development is approximately $ 100 million. In addition, Procter & Gamble contributed Rs 4.3 billion to the national exchequer in the form of taxes and duties in 07/08, increasing 22 percent over the previous year. Strengthening its commitment to invest further in Pakistan, P&G recently broke ground for its second manufacturing facility in Pakistan. The launch of

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this manufacturing facility is testimony of P&Gs successful history in the country and symbolizes P&Gs confidence that Pakistan will continue to provide a stable and conducive business environment over the long-term. This project involves an investment of about US$100 million and is P&Gs largest single investment in the country to date.The facility is expected to improve local industrialization prospects by creating tremendous potential opportunity of business over the next few years. With the plant occupying only one-third of the total 25 acres of land acquired, provision has been built in for future expansion projects. P&G has attracted outstanding individuals since the day it began operations in Pakistan. The company presently employs more than 300 people, 99 percent of which are Pakistanis and creates more than 4,000 jobs indirectly in Pakistan. All this makes P&G a more locally focused company. Product Information We are committed to providing products of consistently excellent quality and standards products that have a positive effect on the lives of the world's consumers. As we continue to succeed in this aim, we can keep growing as a marketing community. All products marketed by Procter & Gamble Pakistan (Pvt) Ltd are fully compliant with local regulations and laws Pantene Head & Shoulders

Wella

Safeguard

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Ariel Pampers

SWOT ANALYSIS OF P & G Strength: Scope was long experience in the oral hygiene industry since 1967. The taste or flavor of scope better than other mouthwashes. High quality product, quality processes and procedures. Have a first rating in mouthwash.

Weaknesses: Threats: Too many competitors in this industry. Price wars with other competitor. Not patentable, competitor can attempt to duplicate a product Not enough make a distribution channel. Lack of canning or packaging. Undifferentiated product or services with other competitor. Brand which it concentrate for a healthy oral. Move into new market segment that offer improves profit. A developing market such as in the internet. Place more distribution channel such as more drugstore and food store.

Opportunities:

Research On P&G Consumer Behavior (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way.

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Segmentation involves finding out what kinds of consumers with different needs exist. . Generically, there are three approaches in P&G. In the undifferentiatedstrategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really cant offer much that another one cant. Usually, this is the case only for commodities. In the concentrated strategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors Conclusion: Marketers must be noted that the question: how to convert the consumer's reaction to actual sales performance? How to compare the actual purchase behavior, verify the consumer's preferences? Consumer behavior research does not guarantee the right decision, it can only provide information in order to increase the likelihood of a correct decision-making.

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On the other hand, consumers are sometimes the words and deeds. Enterprises in the Development of marketing, market research decisions tend to be based on reports, by consumers in the questionnaire answers given, ritualistically launch marketing activities. However, in the practical implementation of marketing activities, the process only to find that the market situation and the research results to differ materially. Consumer spending expressed ideas and actual consumer behavior, contrary to wellestablished businesses make goods or services have serious discrepancies in the overall decision-making Recommendations Proctor & Gamble being the leader in the consumer Fast Moving Consumable Goods have to undertake continuous surveys to better understand the consumer needs with related to the different products Proctor and Gamble have to develop in-house marketing research team to carry out the continuous tracking surveys Proctor and Gamble have to train the team with the latest marketing research techniques

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Proctor & Gamble have to work with the different marketing research agencies to get the better result of the data References: Malhotra, Naresha K. (2002), Basic Marketing Research: A Decision-Making Approach, Upper Saddle River, NJ: Prentice Hall, ISBN 0133768562 9780133768565 0130090484 9780130090485 Twedt, Dick Warren (1983), 1983 Survey of Marketing Research, Chicago: American Marketing Association Marketing Research: An Applied Orientation 2006 (5th Edition) by Naresh Malhotra. ISBN 0132221179 Business-to-Business Marketing By Paul Hague, Nick Hague and Matt Harrison (undated) accessed October 9, 2006 Wibowo Martino, Marketing Management for Small Medium Enterprises, Jakarta,Indonesia, 2008, unpublished material Glazer, Rashi (October 1991), Marketing in an Information-Intensive Environment: Strategic Implications of Knowledge as an Asset, Upper Saddle River, NJ: Journal of Marketing, pp. 119 Boudreaux, Michael (March 1984), "Prepare for Your Future in Marketing, Your Interviews, and Something 'Extra'", Student Edition Marketing News (2): 34 Kinnear, Thomas C.; Root, Ann R. (1988), 1988 Survey of Marketing Research, Chicago: American Marketing Association

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