#Welcome Back …Maggi completed COMEBACK of the year…

Maggi was back on the shelves after its prolonged absence of about six months in Indian market. SIGH!!!! Yes, you read that right. The leader in instant noodle market in India was banned in India due to testing positive for excess Lead & MSG (Mono Sodium Glutamate) by FSSAI(Food Safety and Standard Authority of India) on June 5,2015.

But after the dust had settled Maggi came out clean and made its return to the market.And

Time line of Maggi fiasco!!

In July Bombay High Court overturned ruling by FSSAI as they had used arbitrary method in banning Maggi and ordered for a new round of tests by government accredited labs. Nestle got some relief and after the Court’s ruling Nestle India immediately rolled out a mass media campaign with  #WeMissYouToo slogan.This was Nestle’s way of gearing up for a relaunch. This campaign immediately struck the nostalgic cords in minds of the people and was a great campaign by Nestle to regain trust and feel for the brand among the masses.

Maggi didn’t use celebrity endorsers for their campaign. Instead they used general public to arouse sentiments in their loyal fan base,  who also felt the same way as the actors in the adverts portrayed. In every advertisement, the connection of utility, and the ease Maggi brought to individual’s lives, was highlighted. So marketer’s of Maggi had a clear idea of the attitude and decision making of the consumers about their brand. In an extremely moderate and basic promotion, Maggi voiced the question inside everybody’s head: ” When will it be back?”.

Affects on Consumer Behaviour towards Maggi.

Despite the  harmful findings in contents of Maggi there was more bitterness among its large number of ‘fans’, than rage. Maggi had been a religion, not a noodle. From the 80s it brought to Indian palate a new taste with which they  got bulldozed!.

Maggi had   made a bond that no other brand could make, almost to a level of Classical Conditioning in which Maggi was to instant noodle; what Xerox was to photocopies, where the item and brand had grown to be synonymous. According to Iacobuccci (p.p. 19 ,2013) “when customers begin to learn and associate certain things” like in this case, noodles with Maggi, they are developing a classical conditioning towards it through learning and memory.

Maggi had also embedded in the Indian food culture like no other brand could and according to Iacobuccci (p.p. 22 ,2013) Cultural Differences due affect consumer behavior.It had become like a staple food of students in hostels, to working  professionals and for everybody who didn’t know or had much time for cooking.The advertisement below perfectly illustrates the convenience Maggi had brought to people’s life.

Some surveys were conducted and people were asked for their opinion on Maggi after the fiasco.

1. Opinion of the respondents regarding whether relaunch of Maggi should be allowed?

survey3

vast majority of people i.e. 66% wanted Maggi to be available at the market again.

2. Whether it was safe to consume before ban?

survey maggi

After the ban, majority of the respondents (74%) felt that Maggi which was eaten before the ban was not good for health.

3. Whether it was safe to consume after relaunch?

survey2

After the ban was lifted only about 50 % felt that “it was safe to consume after relaunch“.

But the test results proved that Maggi was safe and healthy to consume.Maggi re-entered the market in November and faced competition like never before. Maggi has started gaining its lost market share and is now again the leader of Instant Noodle Market in India much due to the love and nostalgia from its consumers which was achieved due to loyalty, memories and learning which people had associated with it.

Steps undertaken by consumer in order to buy Maggi now that world is normal again..

stepsinbuying

Image Source- Self made

Now maybe after the controversy surrounding it some people might give buying noodles a miss altogether and switch to a new and completely different product, but many of us can sleep with the peace of mind that Maggi is back in the market again.

 

MADHAV GARG / 216272243

 

 

 

 

 

 

 

 

 

But Bombay High Court overturned ruling by FSSAI (Food safety and standard authority of India) as they had used arbitrary method and unauthorized lab results in banning Maggi. Nestle got some relief and  after the Court’s ruling Nestle India immediately rolled out a mass media campaign with  #WeMissYouToo slogan. This campaign immediately struck the nostalgic cords in minds of the people and was a great campaign by Nestle to regain trust and feel for the brand among the masses.

This initiative by Nestle won a lot of praise and was very successful. Maggi didn’t use celebrity endorsers for their campaign. Instead they used general public to arouse sentiments in their loyal fan base who also felt the same way as the actors in the adverts portrayed. In every advertisement, the connection of utility, and the ease Maggi brought to individual’s lives, was highlighted. In an extremely moderate and basic promotion, Maggi voiced the question inside everybody’s head: ” When will it be back?”

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FACTORS THAT INFLUENCES CUSTOMER BUYING BEHAVIOUR FOR MCDONALD’S

MC DONALD

TAKE A STROLL DOWN MEMORY LANE

“Try to remember the kind of September, when life was slow and oh, so mellow…” I have fond memories with this song, who sang by the late Patti Page as it reminds me the very first time I had my McDonald’s. Back in 2001, being able to have McDonald’s in a place where I grew up is just like you see diamonds through the walls Minecraft. The franchise is somewhat wider than the parliamentary and has sparked off a feeding frenzy in my town. I still can remember that familiar smell of double cheese hamburger, slowly penetrates into the air vents and fumigates my dad’s old Datsun. I welcome it into my nostrils, and soon after that, I started drooling. I was totally blown away by the flavors unraveling in my mouth.

 

THE RELATIONSHIP BETWEEN CONSUMER BEHAVIOR AND MARKETING STRATEGY

‘Without a strong, recognizable brand name, a product is no more than a commodity, without advertising, there is no recognizable brand name.’ (Wright 2000, p. 89). Customer buying behavior relies heavily on awareness and recognition which attained from the advertisement. The advertisement is an effective means of communication which most of the ad contains a rhetorical element of sales, besides creating brand loyalty. Today, McDonald’s is one of the largest brand advertisers on Malaysia television. Promotional activities together with exceptional sales technique within the restaurant have a tactical role to play in getting the customer to return to the restaurants regularly.

Before a person makes the decision, a series of alternatives must be available. When a consumer has an option whether to buy or not to buy, a choice between brand A and brand B, or a choice of spending time with swimming or cooking, that consumer is in a position to finalize a decision. Customer choice depends on many aspects since human brain divided into two hemispheres which are on the left and right. It is essential for an advertisement to combine the rational element with emotional dimension in a brand proposition.

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PSYCHOLOGICAL FACTOR

Four types of psychological factors affecting the consumer buying behavior are perception, motivation, learning, beliefs, and attitudes. Psychological factors play a significant role in determining buying decision. For example what kind of image the pound saver menu has shown or how the customer feels when they purchase it. In other words, the ad of the product must link with the realism of the consumer buying behavior. If the advertisement clicks with the customer’s emotion, then the chances of a positive result are high. Jill McDonalds, CMO of McDonald’s UK reveals the idea of ‘Black Box Model.’ is they wanted to be confident about what they are and what they stand for as McDonald’s have always been customer oriented. The messages that delivered by the company through advertisement is to make the consumer feel positive about their product besides building a brand image.

Perception is how you interpret the world around you and make sense of it in your brain. You do it through stimuli that affect your different thoughts which are sight, hearing, touch, smell and taste. Consumers bombarded with McDonald’s various types of marketing strategy such as the television, radio, magazines, and internet. User’s perception of it become heightened as it is popping up everywhere. In the case of selective attention, McDonald tries to attract customer’s attention by promoting new menu based on the festive season such as GCB Hamburger which only available on Chinese New Year and Hari Raya celebration. McDonald will retain the information based on customer’s needs and how well it matches with their values and beliefs. McDonald offered free drinks for the client to try in conjunction to promote their new line of coffees and cakes.

McDonald always strives to provide products which demanded by their loyal customers. McDonald always prioritizes on excellent customer service, product quality, hygienic and cleanliness in their restaurants. McDonald successfully launched New Chicken Legend Burger and fried chicken in competing with KFC for their best selling chicken bucket. The company also launched a broad range of healthy products such as organic milk, salads, and vegetarian burgers. The sales price of the McDonald’s product reflects the targeted customer’s decision to purchase the benefit which it related in pricing rationale to value, profit, and volume of the product. McDonald has always maintained their product quality when there is cutting cost to compete with another fast food chain.

PSYCHOLOGICAL

 

SOCIOLOGY FACTORS

The statistic shows that fast food is developing and expanding immensely. Hence, many people are consuming fast food and take it regularly either lunch or dinner and even breakfast. The nature of working force increased due to the rise in numbers of women employed, including international students and foreign workers have arisen. Thus, it leads to less time allocated in food preparation at home and indirectly made an enormous contribution to fast food industry.

The fast food is driven by multi-cultural people in Malaysia. Thus, McDonald makes an effort in promoting the different cultural promotional menu like The New Rio Burger Uniquely Brazilian in conjunction with Olympic games 2016. The idea of launching free internet service in the McDonald restaurants helps to get customers walk into the restaurant. The free wifi concept attracted students which helping them in saving money on the web indirectly. Consumers can make payments with hassle free via card payments which prove to be convenient and no minimum amount restriction. The fast-food trend takes away the concept of cooking in the house where people would not bother to dine in trains or buses as long it helps them to save time.

McDonald used the idea of sub-culture by diversifying few of the restaurants into ‘Halal’ restaurant to accommodate with Muslim customer. Considering the fact about the diverse number of different ethnic background, McDonald operates various events with a promotional item to attract the client. McDonald successfully marketed their products to their targeted customers and developed well-positioned great deals for a manageable group of target segments by offering the right product that meets the client’s expectation. McDonald’s customer profile is considerably diverse. Family comes with their children for a sweet treat; kid’s visits McDonald’s for seeking fun and young adults come for a value meal.

SOCIOLOGY

REFERENCE LIST

1.McDonald’s Corporation 2016, ‘I’m Lovin It’, Golden Arches Restaurant Sdn Bhd,  retrieved 30 July 2016, < http://www.mcdonalds.com.my/company/history>

2.Iacobucci, D 2013, Marketing management student edition, 4th edn, Cengage Learning, South-Western, USA

 

ANN HARITH

216180041

aharith@deakin.edu.au

 

Why Marketers should not rely on Marketing Metrics?

marketing-roi-marketing-success-metrics-social-marketing-consultant

Have you ever walked in your Managers office and being questioned about the effect your marketing campaign had on the sales of product of the company. There is a high probability that you partially justified about the impact your marketing activity had on the sales. If you are one of them, I will give you an explanation in next few minutes.

Introduction

Just as chefs asses the quality of their dish by smelling and Tasting the food. Similarly metrics such as Financial, Behavioral, Memory, Customer Profile, Marketing activity and Physical Activity are vital tools that are utilized by  Marketing Managers to evaluate the effect of their Marketing Campaign or asses & guide their Marketing Actions.

Hefty amount is spent by Marketing institutions on developing various metrics for managers , Managers don’t realize the fact that these tools are technical in their approach but they fail to produce any relevant information. Reason for their lack of delivery can be attributed to parameters measured in a wrong way (Sharp 2013,p. 81).

Financial Metrics

A) Return on Investment

marketingROI-825x340

Concept of ROI is very popular in marketing and is referred as percentage return on marketing activity. In other words it can be described as returns from the campaign minus the cost of the campaign divided by the cost of the campaign.

Real purpose for any marketing campaign is to maintain the market share. Through ROI we are measuring the extra sales, it is not possible to determine the returns from any ongoing campaign. Hence , managers should avoid using the ROI while measuring the performance of the marketing Activity.

In Nutshell, associating a marketing activity with the use of revenue can end up companies viewing short term opportunities and missing out long term opportunities. ROI is for evaluating one time capital Project.” Is Marketing an one time Project?” The answer to this question is no. Since Marketing Expense is an necessary evil and technically is  an expense and requires time to time intervention.

In an era , where  Marketing activity is more complex these days when compared with older times, it is not worth investing time to evaluate how effective it is if it can not be measured.

B) Profit Margin

Another  regularly used Metric, which is describes as how much the firm earns from these sales after deducing the direct sales of manufacturing or providing the service. When we say Profit Margin of 30 Percent , it means that 70% of sales revenue in Production cost and 30% contributes to fixed cost and potential future profits(Sharp 2013,p. 87).

If profit margin for a product or Service is reducing, it tells us that the brand is losing its  competitiveness in the market. Since it is calculated without including sales and adverting cost. we can not determine how profitable any business operation is. But we can get an overview about how much money can be spent on marketing of a product or a service of a particular brand(Sharp 2013,p. 88).

If profit Margin is very small , there is no room for further price reduction for the product in the market , hence marketing managers should look for marketing strategy such as increasing Brand awareness, customer satisfaction & service Quality and increase their physical presence by increasing their shelf space in supermarkets and opening brick and mortar stores.


Conclusion

There are specialists who claim to have the capacity to evaluate circumstances and end results with pinpoint exactness. In this way, for supervisors its more vital to abstain from committing one of the greatest errors of something is easygoing when it isn’t or missing the genuine cause through and through. When we utilize ROI as a measure, Marketing division tasks are demonstrating higher ROI, But number of Companies are losing piece of the overall industry and painfulness decays.

Profit Margins to some degree help Marketing Managers to assess what methodology will work. It is ideal to build an exploratory configuration around our advertising exercises with the goal that we can have a superior thought than our adversary about what truly causes what and what works.

Furthermore, Marketers can consider opting for Revenue to Cost Ratio which describes about money generated for every dollar spent in Marketing. Since Marketing cost includes Display ad Clicks, media spend, advertising agency fees and Pay per Click spend . Hence It is easy to  understand and Apply when Marketing cost and Revenue generated is used via Revenue to Cost Ratio.


 

 Reference List

  1. Colias, M 2015, GM Claims Victory Even As Its Market Share Slips, Automotive News, retrieved 31 JULY 2016, <http://www.autonews.com/article/20151012/OEM/310129962/gm-claims-victory-even-as-its-market-share-slips>.
  2. Leone, C 2016, What Is A Good Marketing ROI?, Webstrategiesinc.com,<http://www.webstrategiesinc.com/blog/what-is-a-good-marketing-roi&gt;.
  3. More, R 2009, HOW GENERAL MOTORS LOST ITS FOCUS – AND ITS WAY, Iveybusinessjournal.com, retrieved  31 July 2016,< http://iveybusinessjournal.com/publication/how-general-motors-lost-its-focus-and-its-way/>.
  4. Sharp, B. (2013) Marketing Metrics Marketing: Theory, Evidence, Practice. Oxford University Press, Melbourne, Australia.

    Student Name- Sapransh Jaipuria

Student Id- 215354693

 

How could Apple get success—an analysis of customer behavior.

Apple-cover

Apple Inc is a technology company which headquartered in Cupertino, California. It was established in 1976 by Steve Jobs, Steve Wozniak as well as Ronald Wayne. Apple was focus on personal computer and computer applications for costumers and now it has gotten success in variety of products for example iPhone, iPad and iMac, etc.

apple market share

According to IDC analysis (2015), iPhone took 13.9 percentage of the worldwide smartphone market share which was following Samsung in 2015 Q2. In addition, Apple keeps to get success on its big screen mobile phone. The sales volume went up 35 percentage year over year. Also, Apple has accumulated amount of loyal customers. How Apple could do it? Is any secret hide in their success?

Apple’s marketing based on customer behavior.

The reason why Apple get such a success is because their insight of customer behavior.

Needs are the basic of purchasing behavior. Maslow stated there are five levels of human needs. The most basic one is psychological need. And then, they are safety needs, social needs, esteem need. The top one is self-actualization needs, which is the famous Maslow’s hierarchy needs theory.

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Most products from Apple belong to high-end products because they are high-technique products and not cheap. According to Maslow’s hierarchy needs, owning an iPhone or an iMac could satisfy their esteem need. For example, in China, many young people purchase Apple’s products since it could represent their wealth and status.

Customer involvement

Customer-Involvement-Sandy-Hubbard

     Customer involvement plays a very important role in marketing which could influence customers purchasing behavior. It is also quiet necessary during the process of Apple marketing strategy. There are 3 factors could effect customer involvement which are personal factors, product factors and situational factors.

Personal factors

Personal factors include self-image, personal characteristic, etc. Apple focus on high technique and fashion. Advertisements of Apple mainly express that Apple’s products instead of fashion and high-end products. Although the price of Apple is not cheap, there are still many customers would like to purchase it. Since it could satisfy a well self-image.

Product factors

Product factors means that if there is a perceived risk when they buy a particular brand or products. This risk is mainly from the quality of products and the expectation of its future price. In terms of this aspect, IOS system is easy to handle even for a 3-year old baby. Besides that, Apple really do well in their after-sales service. In addition, the price of Apple’s products hardly to reduce. If there is a high likelihood that the future price would reduce, customers are not willing to purchase it now. Therefore, since the price will remain for a long time, customers will buy it at any time as long as they want.

Situational factors

Situational factor relates to the customer environment. A customer environment relies on social and physical attributes (2015). For example, if peers around a customer are all using iPhone, iPad or iMac, the customer is easy to be effected by those peers, which motivate that customer to purchase Apple’s products. A person in this world is not individual. Therefore, their motivation, decision, and process of purchasing behavior is easily to be influenced by situational factors.

 

So besides customer involvement, what other factors could influence customer behavior?

 

Cultural factors

Cultural factor comes from different parts associated to culture or cultural environment about that customers belong to. American culture is a kind of multi-culture. It shows freedom and creation. Apple keeps focusing on creation. Because of its creation, it represents new things and fashion. That is why it can occupy such big market share.

Psychological factors

Psychological-Factors-of-consumer-behavior

In terms of psychological factors, Apple mainly uses following 4 aspects in its marketing strategy in order to influence customer behavior, which are motivation, sensation and perception, learning and memory, beliefs and attitudes.

To grow sales and encourage purchasing behavior, Apple is trying to create a need in customers’ mind and guide customers produce purchase motivation.

Apple also use sensation and perception to motivate customer behavior. For example, in terms of visual, the big screen and extreme thin body could catch customers’ eyes. Its fashion appearance especially metal shell attracts many young and character people.

Learning and memory through action. People learn while they act. If customers have good experience while they purchase some products, there is a high likelihood that they may repeat to buy is. To keep the loyal customers and expand the new customers, Apple pays attention to spread their idea by advertisement and provide a good service to no matter online or offline customer so that can create a good experience for them.

For some customers, Apple is not only a brand, but also a belief. Every time when Apple issue a new product, there are thousands of people to queue up for it all around the world. Those loyal customers are also called “Apple fans”.

 

 

Reference

Aanstoos, CM 2014, ‘Maslow’s hierarchy of needs’, Salem Press Encyclopedia of Health, retrieved 30 July 2016,<http://eds.a.ebscohost.com.ezproxy-f.deakin.edu.au/eds/detail/detail?sid=811efb5a-62cd-4dc4-a3f9-66e02ce42bb0@sessionmgr4008&vid=3&hid=4113&bdata=JnNpdGU9ZWRzLWxpdmUmc2NvcGU9c2l0ZQ==#AN=93872091&db=ers>

IDC Research Inc. 2015, Smartphone Vendor Market Share, 2015 Q2, IDC Research Inc, retrieved 30 July 2016,<http://www.idc.com/prodserv/smartphone-market-share.jsp>

Perreau, F 2016, The Consumer Factor: Consumer Insight, Market Research, Consumer Behavior & Neuromarketing, The Consumer Factor, retrieved 30 July 2016,

< http://theconsumerfactor.com/en/4-factors-influencing-consumer-behavior/>

Rangaswamy, E 2015, ‘A Study on the Critical Success Factors of iPad Focusing on the Buyer Behaviour and Involvement’, Amity Global Business Review, vol. 10, pp. 95-109, retrieved 30 July 2016, <http://eds.a.ebscohost.com.ezproxy-b.deakin.edu.au/eds/pdfviewer/pdfviewer?sid=bc1340c2-8631-4cae-a212-84a937ba996a@sessionmgr4006&vid=3&hid=4113>

Zoeller, S 2015, How Apple Uses Consumer Behavior Marketing to Win, Stephen Zoeller’s Marketing Blog, retrieved 30 July 2016,

<http://www.stephenzoeller.com/how-apple-uses-consumer-behavior-marketing-to-win/>

 

Zhao White

student ID: 216206535

Thirsty ? Drink an AD

Deanne Marian Lawrence                                                                                                                                          deannemarian                                                                                                                                                                  216290012                                                                                                                                                                       dmla@deakin.edu.au

Coke Zero is a zero-calorie, zero-sugar drink, with the same taste as regular Coke. Many people were misinformed about its flavor and thought it tasted like a diet cola. To fix this, Coca Cola started a sampling campaign using technology and social media to engage its consumers.

Traditional marketing of Coke Zero used to promote how it tastes, but this ‘Drinkable Ad’ is digitally focused and uses ‘Sensory Marketing’ strategies to focus on how the drink sounds to get more people to try the drink.

So What Is ‘Sensory Marketing’ ?

Sensory Marketing is a marketing strategy that emphasizes on engaging the five senses of an individual ( Visual, Hearing, Smell, Taste and Touch), it is to be seen as a way to satisfy the customers mind and heart in marketing strategy and tactics.

The Coke Zero ad uses three senses namely visual, hearing and taste to engage its consumers.

Do we actually pay attention to ads ? While watching a movie or series on TV we usually switch the channel during the breaks. We are not interested in watching commercials, maybe because we have seen the same commercial too many times or maybe we are not interested in those products. But Coke Zero tried something different.

The Coke Zero  drinkable ad creates the illusion that you can actually taste the campaign. Coke Zero collaborated with shazam, helping the audience enjoy a Coke Zero with the help of technology. By shazaming the ‘Ad’ viewers see Coke Zero pouring in the screens of their phone, filling a glass, which ends up into an actual free Coke Zero that can be redeemed at stores. The ads on the radio could also be shazamed for a free coke. This increased engagement with the TV and radio ads.

Use of Social Media 

The consumers also used twitter to receive their free Coke Zero coupon. All they had to do was re-tweet the sound of a Coke Zero being poured and they received their coupon.

Coke Zero also used ads in magazines which became cups and flyers that became straws, both of these could be redeemed for a Coke Zero .

According to Coca-Cola, 85% of millennials have not tried Coke Zero but, nearly 50% of those who try it go on to become monthly drinkers.

Choice Freedom

The consumers were given the freedom to choose the way in which they wanted to try Coke Zero. They could use the ads on TV or radio or even twitter. They could even use the ads in magazines, flyers and digital posters to get their free Coke Zero . This allowed the consumers to be engaged with the product in different ways, giving them a new experience each time.

   Some Interesting Facts                                                                                                                                               

70% of consumers believe that emotions account for 50% of their purchasing.                      82% believe that the event is the experiential form of communication most likely lead to the purchase.                                                                                                                                                               66% said that experiential marketing positively affects their opinion on the brand.           9 out of 10 consumers believe that testing the product through experience is the best way to get information on the brand.                                                                                                                8 out of 10 consumers who have experienced positive consumption have talked about the brand.

Instead of looking at a products attributes and features, people now look at the product as an experience. They want to reach self-fulfillment through different products show their lifestyle, and express their uniqueness. The consumers attraction to a firm might therefore be greater for firms seeking ”Mind and Heart Share” rather than traditional market share.

 

References

Iacobucci,D 2013 Marketing Management (MM4), Student Edition, South-Western, Cengage Learning, Mason, Ohio

Hulten,B,Broweus,N,Dijk,M 2009, Sensory Marketing, Palgrave Macmillas, UK

Swant, Marty, 2015, Coke Zero’s  ‘Drinkable Advertising’ Push Looks To Get  Millennials Sampling, Adweek, p1-1, Retrieved 26 July 2016, MasterFILE Premier

http://www.designpm.com/marketing-of-the-five-senses/

http://www.thedrum.com/news/2015/06/04/anatomy-ad-behind-scenes-coke-zero-s-drinkable-advertising-campaign

 

The art of queuing: Marketing dream or nightmare

Queuing, as the name suggests involves waiting in line, usually to be served. People are faced with queues nearly every day, whether it be waiting in line to order a coffee, lining up at the automatic teller machine or waiting to get into a football match. In these instances queuing usually evokes a negative emotional response, with people often reporting feelings of frustration and boredom whilst waiting in line. But queuing also tells us a lot about consumer behaviour, and can work both for or against a product or brand in a marketing context.

Research has often focused on the negative experiences associated with queuing. Businesses often look at how to reduce queuing in order to avoid the negative consequences experienced by a consumer who has to wait in a line. All of this, in order to improve a customer’s experience and hopefully reduce a customer’s ill feelings towards a product or service.

However queuing is now being embraced as a potentially positive marketing tool.

Across Australia, many premium food outlets now have queues out the door. People are prepared to wait for long periods to be served. But why wait when you may be able to get a similar product two doors up? As we know in marketing, perception is reality.

Lune Croissanteire, a handmade croissant business in Melbourne provides one example of why we wait. Fresh and flaky pastries known for their quality, variety and unique handmade technique, sees customers line up from 5am – 2 and a half hours ahead of the store opening time. Why do we wait? Because businesses with queues have an air of ‘desirability’ and ‘success’. And seeing a line of customers influences the perceived value of a product, as other customers can’t bear to ‘miss out’. According to Koo and Fishbach (2010) the value of a product further increases the more people that line up behind you. In this context, the queue acts as its own successful marketing tool, in that the longer the queue the more desirable the product is and the longer people may be willing to wait.

Screen Shot 2016-07-31 at 8.03.49 pm

Underlying this consumer behaviour is the psychological principle of social desirability, that is people imitating others behaviour or the ‘herd instinct’. According to Katharina Kuehn, director of RDG insights, ‘a crowd will always draw a crowd.’ This works best in a lifestyle or occasion category like waiting for a croissant, not a functional category where a queue can act as a deterrent to customers.

From a marketing perspective then, queues can be seen as a positive experience and the aim should be for businesses to optimise the waiting experience , not minimise the waiting time. This can be achieved by demonstrating to customers the perceived value added by the waiting experience.

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Ways to ensure a positive queuing experience:

Queues as a positive signal

Incorporation of queues into service design so that it is viewed as part of the experience in that the service has already begun while waiting in a queue.

Queues and perception of value

The perceived value of a product will positively affect their perception to wait.

By ensuring the end service is highly valued by the customer (i.e. good quality, unique), the longer the customer will be willing to wait.

Queues like signals

A queue can give a positive signal about the business and be interpreted as a sign of quality and value.

Wimbledon, the grand slam tennis tournament in England, is a good example of where optimising the queuing experience has been taken to a whole new level. Not only do they produce a guide to queuing  for customers but they offer food outlets, music and encourage customers to bring a picnic to enjoy while they wait, encouraging social interaction between customers. Consumers enjoy the experience as much as the tennis! Further, it has been identified that people who wait less than expected are happier than those who wait longer than expected, and that promotional activities while you wait in line helps to reduce perceptions of waiting time. Disney in their theme parks, overestimate waiting times for rides and have cartoon characters mingling with patrons while they wait, so that guests are pleasantly surprised when they get to the front of the queue ‘ahead of schedule’. A clever marketing ploy!

Queuing is an interesting consumer behaviour that if marketed correctly can be viewed as a pleasant and positive experience. Customer satisfaction will be high if the perceived value of queuing matches their expectations of the experience.

Andrea Shone (andshon) 201184022

Pokémon Go and Chill …… ???

As someone who has recently become single after 10 years it was made apparent to me very quickly that dating in a tech savvy world is a whole new ball game. Getting my head around what apps are used for hook ups vs. which ones to find your soul mate and then understanding the unique lingo that underpins them has been quiet the experience.

Who knew that ‘Netflix and Chill’ did not actually mean sit on my couch watching Netflix and eating ice-cream!

Over the past eight years the online dating industry has continued to expand, increasing 3.5% per year, resulting in a 2.1 billion dollar industry. With such a steady growth there has been a continual flood of apps and websites into the marketplace, it only makes sense that organisations are looking for genius ways to separate themselves from the crowd and attract users to their sites and apps.

PokéDating is doing just that!

Pokedates imageUnless you have been living under a rock for the last few weeks you would be well aware of the craze of Pokémon Go taking over the whole world.

An app that is free to download that takes you out and about to find and catch Pokémon in a world of augmented reality.

With over 21 million active daily users around the world it seems a smart choice for a dating app to target this market that has so conveniently been segmented for them.

Let’s take a closer look at how Pokémon, dating and STP have worked for three entrepreneurs.

pokemongo-vs-tinder-love
What is PokéDating?

PokéDating is a way for Pokémon Go users to identify each other and at the very least go hunting and at best, fall in love. Built in just three short days by three entrepreneurs who describe it as ‘literally Tidner but for Pokémon Go trainers’.

A mate wanting a date, but needing to go Pokémon hunting was the catalyst for the birth of PokéMatch. Who doesn’t love the idea of having a mutual interest right off the bat when meeting someone new.

A match made in heaven so it seems.

Pokematch app store

Users have the ability to:

  • Answer questions about themselves
  • Qualities they seek in their partner
  • Upload their schedules and locations

 

All of this goes to create their PokéProfile. Users are matched based on their personality and interests. A date a location for the date is sent to each user, free of charge for your first match. Every match there after costs $20, a small price to pay  to find someone to go Pokémon hunting with, whilst possibly falling in love. It seems like PokéMatch have identified a  niche in a competitive marketplace.

What is STP?

Segmentation, targeting and positioning is a strategic approach taken in modern day marketing and is a commonly used as it centres around the customer vs the product.

PokéMatch has used a stroke of genius to tap into a market that has already been segmented, meaning that groups of customers have already been split into those that share similarities; in this instance those that like and engage in playing Pokémon Go and those who don’t.

As the work in segmenting the market has already been done for them and they are able to move straight into targeting their users. Targeting in essence is assessing the attractiveness of each market segment and getting a greater understanding of where the return on investment would be upon targeting one segment vs another.

For PokéDates, targeting the single population of Pokémon Go users is a bit if a no brainer. Users within this demographic are already familiar with app use and more than likely would already be on dating apps like Tinder. Due to the size of the online dating market, it makes sense that this target groups would have the potential to draw a profit if they are able to meet their users expectations around suitable matches.

If the essence of positioning is about developing a product that shows a benefit the target segment will value, pricing it to be profitable (but still seen as valuable) with clear promotional avenues, its seems that PokéDates were able to position themselves to tick all these boxes.Poke-Match-630x353

 

Time will only tell if the world of PokéDating will continue to grow, but for me, I am definitely not part of the targeted segment and I’ll stick to meeting up for a coffee, in the real world!

 

*All thoughts and words are my own Sarah Hart 213182103

In text references where applicable. In addition the following resource was also utilised:

  • Iacobucci, D. (2014) Marketing Management (MM), in Customer Satisfaction and Relationships. 4th Edition. London: Cenage Learning

 

 

SINGING DOGS!!! Now that I have your attention…

It’s no secret, cars have been around for decades but the variety of brands in the market continues to grow. A common perception of what kind of value a car could bring to an individual is how it can become an “extension of a person’s personality.” So with this idea in mind, how are we being enticed to think about buying a car from a specific brand?

This is where Subaru steps in with their can ‘do’ attitude.

Lets paint the scene…
You’re sitting at home minding your own business and watching some tv when the show cuts to an ad break. Here comes out the phone while we wait for the show to start again. All of a sudden your foot starts tapping to the sound of the beat and repetitive tune, so you look back to the tv where these adorable singing dogs clearly want to go and do something.  It wraps up with the three dogs and their owners going on an adventure to the beach, and a final shot of the car that transported them to their destination. We are left to ponder, “do more of the good stuff.
Well that wasn’t so bad and actually rather captivating.

In general, advertisements appeal mainly to auditory and visual sensations.  If they didn’t, we would be glued to our phones until the show starts again. Therefore, attention is an essential facet of consumer behaviour.

A sub-division of attention is selective attention, which can be broken down into a two-step process. Briefly, the first step is referred to as bottom-up processing, which is a relatively automatic pre-attentive step. It has been acknowledged that the more salient the object, the greater the chances of noticing it; for example, the singing dogs is an immediate attention grabber. The second step is top-down processing which allows us to fully analyse and understand the information being presented; for example, going on an adventure in a Subaru vehicle.

They have our attention. So what is Subaru’s campaign trying to ‘do’?

The concept is designed to rebrand the company to the Australian public and appeal to their “active nature.” Andrew Caie, Subaru’s general manager of Marketing, highlights that “’Do’ is the ultimate verb and indicates a renewed focus on delivering an exceptional customer experience.” So over the next 12 months, Subaru has planned to release 31 short movies with the overarching and simple message ‘Do.’ That’s right, we’ll be seeing and hearing a lot more of Subaru in our everyday life.


Now that we briefly understand their intention, what strategy is being implemented to capture the public’s attention?

Targeting the customer’s needs is a key strategy within consumer behaviour and a commonly used theory is Maslow’s Hierarchy. In 1943, Maslow was interested in what motivates a person to attain desired needs. So how does Subaru’s campaign utilise this theory?

maslow-pyramid

The first need fulfilled is safety.  When focusing on purchasing a specific car, we definitely want it to be safe for us and our family. They demonstrate this in the first commercial when they choose to drive the car and how the dogs get to their final destination safely. Also, one of their short-films focuses on how their cars can avoid a crash. Since this basic need is fulfilled, how are the psychological needs being addressed?

The family spending and enjoying their time together targets the needs of belongingness and love, which could ultimately target the emotional experience of the audience. Creator of the campaign, Peter Buckley, reflects how they want to “appeal to people’s emotions.” By targeting emotions, it could potentially assist in obtaining new customers. Within the context of marketing, emotions play a role in decision making and developing connections with value and satisfaction. Referring back to the original advertisement, as the car drives past their neighbours, there is a sense of envy by the neighbour’s dog directed to its owner who doesn’t own a Subaru. You can see the dog thinking, I want to go on an adventure too! Therefore, the esteem needs are being fulfilled through the sense of accomplishment and the singing dogs acknowledging their prestige.

And finally, how is the tip of the pyramid being targeted? Well by the pure joy of being able to go to the beach! Targeting self-actualisation goes a little further, however, as the audience should be left feeling a sense of potential growth.  Their campaign highlights that in order to grow and enjoy the important things in life, you should consider buying a Subaru.

Subaru have understood what could allow them to grow further within Australia. Possible customers have been addressed on a multitude of levels through their unique way of promoting cars. Thus, this attention grabbing campaign could benefit Subaru in the future.

As for us, it’ll be hard to say the word ‘do’ and not think of Subaru!

Nichola Stamatakos | 215234781

The Gift of the Maggi

welcome back maggi Source:  (Team and Sultana, 2015)

The Indian consumer market was forced to wait much longer than the standard ‘2 minutes’ for their beloved noodles. An instant ban was placed on 5 June of 2015 amid rising contamination fears. Yet Maggi (owned by Nestlé), seem to have risen from the proverbial ashes despite the ban lasting six months. They did this in the most unconventional of fashions.

It is tempting for those of us involved with marketing to categorise, analyse, and even predict consumer behaviour. Despite numerous theories, good marketing strategies are about as common as, well, good marketing strategies. Marketing is not an easy field to master and that is why we seldom see it done well.

The Purchase Process
3 Ps

Source (p.p. 13, Iacobucci 2013)

“It will be an uphill task for
Maggi to regain its lost glory,”

– Sandop Roy (Rana, 2016)

The average company might look at a blanket ban of its biggest seller as grounds for despair. One might expect them to re-enter the market gradually re-establishing trust over a number of years. We might even expect a relaunch that makes the existing product distance itself from the old version that was deemed unsafe. Instead, what Maggi did was use this time to focus on making sure they remained relevant. Maggi focused on the pre-purchase phase of the purchase process. After all it was the only phase they could focus on.

Nestle remained active marketers of Maggi noodles actually using the absence as a means to remain engaged with their loyal customers. Maggi created a hashtag, full-page newspaper advertisements, and a number of YouTube clips. This helped keep the long established emotional bond while the brand was being battled in court. By maintaining this familiarity while they were no longer available for purchase, they remained familiar, and possibly creating a sense of longing with customers who might have taken them for granted. This is crucial as instant noodles are more of a commodity than a specialised purchase. 
This can create difficulties when trying to segment.

maggi                                                   (click to see video)

The Cultural Landscape
Nestlé are a large multinational corporation. They have a multitude of brands the world over. Their marketing has been called into question before. In the 1970’s, they were accused of getting third world mothers hooked on expensive baby formula (Krasny, 2012). A move which ultimately backfired on how the brand is perceived even 40 years on.

In this instance, Maggi have shown they are able to adapt to the ethnicity and culture of the Indian people. Cultural differences can have a significant affect on consumer behaviour. (p.p. 22, Iacobucci 2013). This emotional style campaign might have fallen drastically short in the west. In India Maggi noodles are synonymous with a mother’s love unlike Australia where we think of the poverty associated with being a student. Picking up on Indian sentiment and family values Maggi tailored their forced absence and relaunch in the most personal of ways.

The Phoenix Effect
After the ban had ended, Maggi was poised to launch itself back into the market. Maggi boasted an impressive 77% of India’s noodle market before the ban took place (Team and Sultana, 2015). As of March 2016, Maggi are yet to return to their pre-ban levels of sales, yet their six month performance is noteworthy and they remain the market leader.

Maggi’s Market Share of India’s Noodle Sales
graph

Source: (Rana, 2016)

Where to From Here?
It is obvious this ban of Maggi has created a sizeable loss of revenue and undoubtedly some damage to their brand. Their willingness to take risks, understand their market, and  sustain goodwill has likely mitigated a proportion of these averse effects. We will need to keep our eyes open to see if they can recover fully, although returning to market leaders is an impressive feat in itself. Maggi had everything to lose but they weren’t afraid to role the dice. It makes us wonder if marketers the world over can steer clear of boring safe campaigns and adopt Maggi’s ’leap of faith’ approach to similar success.

References
Iacobucci, D. (2013) Marketing management (MM4) / edition 1. United States: South-Western College Publishing

Krasny, J. (2012) Every parent should know the scandalous history of infant formula. Available at: http://www.businessinsider.com.au/nestles-infant-formula-scandal-2012-6#the-baby-killer-blew-the-lid-off-the-formula-industry-in-1974-1 (Accessed: 28 July 2016).

Meri Maggi (2015) #WeMissYouToo | NEIGHBOURS. Available at: https://www.youtube.com/watch?v=1w1myYavVsE (Accessed: 30 July 2016).

Rana, P. (2016) How Nestlé clawed its way back to the top of India’s Noodle market. Available at: http://blogs.wsj.com/indiarealtime/2016/04/20/how-nestle-clawed-its-way-back-to-the-top-of-indias-noodle-market/ (Accessed: 30 July 2016).

Team, M. and Sultana, N. (2015) Maggi noodles sold out on Snapdeal, 12 packs at Rs 144. Available at: http://www.moneycontrol.com/news/business/maggi-noodles-sold-outsnapdeal-12-packs-at-rs-144_4059981.html (Accessed: 28 July 2016).

Marcus Fernandez / 213362851

The views expressed in this blog are my own and do not represent the views of any organisation I am affiliated with.

How Coca-Cola influence Customer Behavior?

Customer behavior is influenced in psychological and sociological. The international brand Coca-Cola, the biggest soft drinks and beverage company in the world, is very successful in producing effects on consumer behaviors. Coca-Cola is one of the most valuable and well-known brand in the word. Although the company is a manufacture of beverage, it business has penetrated in every walk of life. The brand of Coca-Cola itself is a symbol of taste. However, although Coca-Cola is a successful brand and its business has covered more than 200 countries in the world, there are still lots of choices for customers in the supermarket shelves of beverage (Coca-Cola.com, 2016). How Coca-Cola influence Customer Behavior? Beside the effects of famous brand Coca-Cola has built, the company has continued to deliver its brand value to customers in both psychological and sociological.

Psychological Influence

Before customers make their purchase decision, the collect and identify information they needed. Senses delivered by enterprises result in the selective attention of customers. Customers get information of appearance, sound, taste, smell, touch of a product, and then choose their preferring one. These senses and information finally create sensation and perception in the mind of customers. Sensation and perception create basic acceptation of a brand, and learning and memory enhanced the acceptance. That how the psychological influences a brand, or a product, create to customers. Thoughts and decisions of customers may be affected and changed by the psychological factors and finally the whole customer behaviors are different (Iacobucci, 2014).

A typical brand logo of Coca-Cola is pictured as white letters in red background, or red letters in white background. The strong contrast colors in Coca-Cola brand image convey impressive brand identity to customers. The color red in white is striking, expressing the brand promotion of passion, active lifestyle. The taste of Coca-Cola is a distinctive element that make it different from others, especially Pepsi. Tastes of Coca-Cola carbonated drinks with unique formula to produce are unique for customers. Senses conducted by Coca-Cola place the impressive brand image of Coca-Cola into the mind of customers.

Image 01

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In addition to the perceived sensation and perception by customers, Coca-Cola promotes its brand in every walk of life to get repeated exposures. People may be familiar with the Coca-Cola bottle image, that’s the results of its repeated exposures. In movie, music, and sports, Coca-Cola make its brand connected with people’s lives. Coca-Cola puts its ads in movies, puts lyrics in bottles, and provides sponsorships for sports (Coca-Cola.com, 2016).

Image 03

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Moreover, Coca-Cola unveils Coca-Cola capsule collection at Berlin Fashion Week. It indicates the brand would get higher exposures to the world (Coca-Cola.com, 2016). Along with the positive brand spirit expressed in its exposures, Coca-Cola delivers an active lifestyle and a perception of good life which are accessible for customers. The perception is enhanced by its repeated exposures over and over again through its ads in different ads, media, and places. With its recognizable brand image, brand associations are created in the process of learning and memory (Solomon, 2014).

 

Sociological Influence

While customers decide whether to buy a brand, or a product, and whether the brand worth a repeatedly purchase, their attitudes and decision making is very important. Attitudes toward a brand are the results of psychological perception and memory. A significant factor effects customers’ decision making is the social-cultural differences between the brand and preferences of customers. For example, carbonated drinks of Coca-Cola may be well welcomed by the young aged from 16 to 28, for children, middle age and old people, the carbonated drinks are less attractive (Coca-Cola.com, 2016; Broniarczyk and Griffin, 2014). For another, for western countries like the USA, the traditional eating habit of fast food makes people familiar with cola drinks. However, eastern countries, including China, Japan, Korea, are less accessible for cola drinks. And people have raised their concerns on healthy diet, the carbonated drink is regarded as high in fats and sugars (Thogersen,et al. 2012; Ozdipciner, et al. 2012).

So how Coca-Cola maintain its attractiveness facing the socio-cultural differences and changes? The answer is changes and innovations in brand and products. Not only carbonated drinks, Coca-Cola company provides product categories including juice, water, teas, coffee. In addition, the low & no calorie, caffeine free, low sodium categories are provided to customers with special needs. For customers in different age and different countries and regions, they can choose their preferred product category. But the purchase decision making of Coca-Cola product categories based on the condition that customers highly accept the Coca-Cola brand. In fact, as the largest beverage company, Coca-Cola has the largest sales in both sparkling and still beverages (Coca-Cola.com, 2016).

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In addition, Coca-Cola continues to innovate its beverages to offer more choices to customers (Coca-Cola.com, 2016).

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More choices can weaken the influences from socio-cultural differences. In the category of carbonated soft drink, Diet Coke and Coke Zero are provided for customers who have higher requirements on the health of diet and low sugars and calorie but still like the flavor of cola (Coca-Cola.com, 2016).

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Moreover, the international ad campaigns of Coca-Cola, such as its recent ads for Rio Olympic Games, are effective in narrowing the socio-cultural differences within different markets of Coca-Cola (Coca-Cola.com, 2016).

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Published By CHENGXU ZHANG 216057786

chengxu@deakin.edu.au

 

Reference

Broniarczyk, S. and Griffin, J. (2014) Decision difficulty in the age of consumer empowerment, Journal of Consumer Psychology, 24 (4), pp. 608-625.

 

Coca-Cola.com (2016) Available at:

http://www.coca-colacompany.com/ (Accessed: Jul. 27th, 2016)

 

Iacobucci, D. (2014) Marketing Management (MM), in Customer Satisfaction and Relationships. 4th Edition. London: Cenage Learning,.

 

Ozdipciner, N. & Li, X. & Uysal, M. (2012) ‘Cross‐cultural differences in purchase decision‐making criteria’, International Journal of Culture, Tourism and Hospitality Research, 6 (1), pp. 34-43.

 

Solomon, M. R. (2014) Consumer behavior: Buying, having, and being. Engelwood Cliffs, NJ: Prentice Hall.

 

Thogersen, J. & Jorgensen, A. K., & Sandager, S. (2012) ‘Consumer decision making regarding a “green” everyday product’. Psychology & Marketing, 29(4), pp. 187-197.