consumer insights professor s.j. grant spring 2006 buyer behavior, marketing 3250

Consumer Insights

Professor S.J. Grant

Spring 2006

BUYER BEHAVIOR, MARKETING 3250

Outline

Need for consumer insightsRole in product developmentMessage clarity

Case: Pepsi One Case: MasterCard Case: Altoids Case: DiGiorno Pizza

Need for Consumer Insights

Concept of value must be defined in context of what targeted consumers are willing to pay forIt is not always clear what features

provide valueWhat is level of optimal

tradeoff?


Apple introduced the versatile Newton in 1993 But for all its technological advancements, the

handwriting recognition software was flawed, and the product flopped

Motorola Envoy, launched in 1994, also failed to make inroads with consumers

Palm Pilot, an incremental improvement over its predecessors, became a huge success when it was introduced in 1996


Product quality is not just the strength of its attributesCoca-Cola introduced an improved

formula after losing Pepsi Challenge taste tests, but consumers rejected New Coke

Consumer Insights: Pepsi One Pepsi introduced Pepsi One, a one-calorie

cola, in 1998 Addition to line of products: Pepsi, Diet

Pepsi, Mountain Dew, Diet Dew, Slice, Mug

Pepsi One fits you like a glove. You are viewed by friends as an intellectual and a trendsetter. You go out of your way to learn about new music, fashion, and trends. There's a brainy side of you too. You often pull interesting facts out of your hat and stun people with your worldliness. The same goes for your impeccable taste in music. You also have a spark that lights up the room when you make your entrance. Your smile is magnetic.

Case Study: MasterCard

There are some things money can’t buy. For everything else there’s MasterCard.


VISA

Everywhere you want to be

Life takes VISA

American Express: Membership has

its privileges


Associated with acceptance at 24 million locations

Affiliated with 15,000 financial institutions

Market share is in mid 20s, about half that of Visa


Consumer insight: Values were changing in a fundamental way in the late ‘90s

More emphasis was being placed on family and human relationsMaterial consumption was

almost taken for granted

Market Shares

(% Purchase Volume)

1998 2000 2001 2003 2005

MasterCard 25.50 25.60 27.61 30.7 23.9

Visa 52.25 51.75 50.38 51.4 49.6

American Express 16.30 17.25 16.14 12.3 14.3



More recent versions of the ad have off-beat humor, irreverence

Represent departure from nostalgic, sentimental executions

A change in strategy?

Males, 20-28, working Smokers Drink coffee, beer Frequent restaurants or carry out Go to movies and clubs frequently Looking for empowerment

Case Study: Altoids

Case Study: Altoids

Drawing on a retro image, Altoids brand is built on the benefit of having “curiously strong” breath-freshening capabilities

Case Study: Altoids

Case Study: Altoids

0

10

20

30

40

Percentage

1996 2000 2001

Market Share

Tic TacsAltoids

Case Study: DiGiorno

Consumers who enjoy delivery pizza complained of inconsistent carry out/delivery quality Long waits High price Cold when delivered

Idea of high-quality frozen pizza met with cynicism

Case Study: DiGiorno

Pizza, which is sold in supermarket freezer, was positioned against delivery pizza as the frame of referenceHigher quality ingredientsSelf-rising crust

Point of difference: “It's like getting a $12 pizza for $5”

Kaboom Porcelain Tile & Grout Restorer Foaming bathroom cleaner – uses organic salt as

cleaning agent Most women have 4 – 6 products on hand at all times

that are used to clean bathrooms • Bathroom cleaner

• Heavy duty• Shower/tub/multipurpose

• Daily shower• Toilet• Mirror • Floor

Case Study: Kaboom

FREQ

UEN

CY O

F USE

FREQ

UEN

CY O

F USE

Heavy Duty SpecificCLR; Lime Away; Tilex Mildew

Heavy Duty GeneralComet; Tilex Soap Scum

Routine (Bi)weeklyShower/Tub: Scrubbing BubblesToilet Bowl: Lysol; Clorox Mirror: WindexFloor: Pine Sol; Armstrong

Light/DailyArm & Hammer Clean ShowerTilex Daily Shower

SEVERITY O

F PRO

BLEM

SEVERITY O

F PRO

BLEM

low

high

high

lowK

aboom PTG

R

Case Study: Kaboom

Women who clean their bathrooms

Bathroom cleaners

From the makers of Oxi Clean

Target

Frame of Reference

Point of Difference

Case Study: Kaboom

Captures most frequently encountered cleaning problems in order of priority. Allows Kaboom to enter consideration set and span heavy duty and routine cleaning segments.

KABOOM

Shower, Tub & Tile Cleaner

Aggressively Cleans:

Soap Scum, Dirt, Hard Water Build Up,

Calcium & Lime Stains, Rust Stains,Grout Stains

Clean Easy. Breathe Easy.

Defines brand promise. Suggests no fumes without evoking unpleasant association.

Descriptor anchors product in mid-frequency FOR.

Borrowed brand equity from Oxi Clean enhances Kaboom’s credibility.

From the Makers of Oxi Clean!

Case Study: Kaboom

consumer insights professor s.j. grant spring 2006 buyer behavior, marketing 3250

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