mktg607: improving the brand performance of kahlúa in singapore

[MKTG607] CONSUMER BEHAVIOUR

SMU MBA Class of ‘14

CATEGORY SEGMENTATION DISTRIBUTION CHANNELS


Secondary Research

whiskey

brandy

vodka

liqueurs

7.9%

$34.4 M

Dept

stores &

duty-free

On-

trade

Hyper-

marts

56% 23%

Liqueur liˈkər,liˈk(y)oo͝r/ alcoholic beverage made from a distilled spirit that has been flavoured & bottled with sweeteners


Secondary Research

Irish whiskey,

cream based

$50 (700mL)

33.1%

Various

flavours

$46 (700mL)

7.0%

Mexican coffee,

rum based

$56 (700mL)

4.1%

German, 56

herbs & spices

$55 (700mL)

3.7%

Italian, almond

flavoured

$66 (500mL)

3.3%


Focus Groups

PARTICIPANTS MODERATOR

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RECRUITMENT

GROUP MAKE-UP INCENTIVE

free drinks at Thirteen @ One George five of the same gender in each group

each member recruits one participant who must not know each other or the moderator


Focus Groups

Q6: Is there

anything else you would like to say

about your experience with

buying and consuming liqueurs?

Q1: What is your favourite brand of

liqueur?

Q2: If you could use just one sentence to

summarise your experience with

liqueurs what would that be?

Q3: Who and what in particular have influenced your

liqueur purchases?

Q4: What is it that you enjoy the most

about liqueurs?

Q5: Describe the perfect time or

occasion for when you will be indulging in

liqueurs.

ENGAGEMENT QUESTIONS

EXPLORATION QUESTIONS

EXIT QUESTION


Focus Groups

“… I would buy what I want

to try for myself …”

“… my friends told me

the mint chocolate one

tastes good so I went to

buy one …”

“… I spend quite a lot of time

looking at whatever is available

as there are so many to choose

from …”

“ … I bought it just

because the bottle looks

nice …”

“ … Baileys has the

same bottle shape for

all flavours …”

“ … Kahlúa is

different due to its

coffee flavour …”

“… they have Christmas

twin packs which I like to

buy as gifts when I go

home …”

“… I buy from DFS when

I’m overseas …”

“… I’m a big fan of

Jägerbombs …”

“… nothing too expensive &

also you can’t store them for

long once they are opened

…”

“ … it is always cheaper to

buy at the airports …”

“… I can always

compare prices in

the store …”

“ … I think girls like to

drink Baileys as the alcohol

is not too strong …”

1 3

2

KAHLÚA VERSUS COMPETITORS

CONSUMER MOTIVATION CONSUMER ABILITY CONSUMER OPPORTUNITY

Ability of brand to create

personal relevance for

consumers: Kahlúa’s distinctive

coffee taste & flavour profile often

cited as the most important benefit

Consumers’ ability to

accurately interpret product

information: Kahlúa’s packaging

design conveys product attributes

such as taste, size & origin

Ability of brand to ensure ease

of availability of its products:

Based on site surveys, Kahlúa is readily

available in mass channel department

stores & on-trade outlets

Ability of brand to reduce

consumers’ perceived risk: Most

focus group participants were thus

unaware of accolades won by Kahlúa for

taste & quality

Fit of brand to consumers’

cognitive style: Kahlúa’s packaging

is perceived as dated & un-innovative

as compared to other brands

Ability of brand to reduce

purchasing, usage or learning

time: Liqueurs an ingredient in

savoury desserts or cocktails; recipes

are easily retrievable

Ability to of brand inspire felt

involvement in consumers:

Unlike category leader Baileys, focus

group participants did not cite a

strong emotional connection or heart

loyalty for the brand

Acceptance of brand by its

target demographics (age,

income): Neither gender segment

showed a stronger preference for

Kahlúa; both found the brand to be

reasonably priced

Ability of brand to overcome

distractions & other barriers to

purchase: According to focus group

participants consumption occasions

for Kahlúa are scarcer than that of

category leader Baileys


Focus Groups


Surveys

QUESTIONS

RECRUITMENT

60 participants split equally by gender

Q1: Measuring total unaided awareness What brands of liqueurs have you seen or heard of?

Q2: Measuring total brand

awareness Please select all the brands of liqueurs you have ever heard of, even if you’re not very familiar with them.

Q3: Measuring trial Please select all the brands you have ever tried.

Q4: Measuring regular usage Please select all the brands you drink regularly nowadays.

Absinthe

Green Campari Giffard Lillet Blanc

Amaretto

Disaronno Cointreau

Grand

Marnier Midori

Baileys Drambuie Heering Pimm's No.1

Bols Frangelico Jägermeister Sourz

Bigallet China

China Galliano Kahlúa Tia Maria


Surveys

QUESTIONS

Q5: Thinking about all these different brands of liqueurs you have tried, please select the

one statement which best describes your attitude to each of these brands:

REJECTORS

Concept Product

“I’ve never

tried this

brand, not

do I want

to”

“I’ve tried

this brand

but I won’t

drink it

again”

AVAILABLE

Unaware Noticed

“I’ve never

heard

of this

brand

before”

“I’ve heard

of this brand

but don’t

know much

about it”

ACCEPT

Interested Experimenters

“I have

never tried

this brand

but I would

like to”

“Not a

brand I tend

to drink, but

I’ll have one

sometimes”

ADOPT

Occasionals Regulars

“It’s a brand I drink,

but I’d consider

others first”

“It’s one

of my favourites

along with others”

ADORE

Loyals Staunch

“It’s almost always

the first brand I’ll

consider”

“It’s the only

brand

I drink”


Surveys

QUESTIONS

Q6: Thinking about all these different brands of liqueurs you have not tried, please select

the one statement which best describes your attitude to each of these brands:

REJECTORS

Concept Product

“I’ve never

tried this

brand, not

do I want

to”

“I’ve tried

this brand

but I won’t

drink it

again”

AVAILABLE

Unaware Noticed

“I’ve never

heard

of this

brand

before”

“I’ve heard

of this brand

but don’t

know much

about it”

ACCEPT

Interested Experimenters

“I have

never tried

this brand

but I would

like to”

“Not a

brand I tend

to drink, but

I’ll have one

sometimes”

ADOPT

Occasionals Regulars

“It’s a brand I drink,

but I’d consider

others first”

“It’s one

of my favourites

along with others”

ADORE

Loyals Staunch

“It’s almost always

the first brand I’ll

consider”

“It’s the only

brand

I drink”


Surveys

QUESTIONS

Q7: Starting with [brand], how would you rate [brand] on the following attributes on a scale of 1 (least) to 10 (most): Is a brand that I love (felt involvement)

Tastes better than other brands (taste)

Is of better quality than other brands

(quality)

Has a more distinctive image than other brands (distinctiveness)

Is a brand that I can enjoy anytime & anywhere (consumption occasions)

Is worth what I pay (value)

Q8: How important are these six attributes are to you in a liqueur brand? • Is a brand that I love

• Tastes better than other brands

• Is of better quality than other brands

• Has a more distinctive image than other brands

• Is a brand that I can enjoy anytime & anywhere

• Is worth what I pay Please indicate your response by allocating 120 points across these six attributes, allocating more points to the attribute you consider more important.


Surveys

BRAND TOP OF MIND UNCUED CUED

Amaretto 0 0 12 14 6 15

Baileys 26 30 30 30 30 30

Bols 2 0 27 11 24 25

Kahlúa 0 0 22 20 27 28

Jägermeister 2 0 30 30 29 27


Fishbien analysis

FELT INVOLVEMENT

DISTINCTIVENESS

VALUE TASTE

OCCASIONS QUALITY

RELATIVE IMPORTANCE OF VARIOUS LIQUEUR ATTRIBUTES OF MALES VERSUS FEMALES

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Fishbien analysis (Males)

FELT INVOLVEMENT

DISTINCTIVENESS

VALUE TASTE

OCCASIONS QUALITY

PERFORMANCE OF KAHLÚA (119) VERSUS JÄGERMEISTER (154)

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Fishbien analysis (Females)

FELT INVOLVEMENT

DISTINCTIVENESS

VALUE TASTE

OCCASIONS QUALITY

PERFORMANCE OF KAHLÚA (109) VERSUS BAILEYS (175)


Surveys

HYPOTHESIS 1 HYPOTHESIS 2 HYPOTHESIS 3

STATEMENT OF

HYPOTHESIS

Kahlúa is unable to inspire a

strong sense of felt

involvement or emotional

connection with consumers

Kahlúa is perceived as dated,

un-innovative & non-

distinctive as compared to

other brands

The consumption occasions

for Kahlúa are scarcer & less

well-defined than category

leader Baileys

PERTINENT

OBSERVATIONS

FROM SURVEY

Both genders reported low felt

involvement scores; a larger

gap to Baileys was observed

for females than for males

Felt involvement is the most

important attribute for female

respondents

Both genders scored Kahlúa

the lowest amongst all five

brands in scope in terms of

having a distinctive image

Distinctiveness is the most

important attribute for male

respondents

The gap between Baileys &

Kahlúa in terms of occasion

scores in Q7 is not significant

Both genders scored Kahlúa

the lowest when asked if it

was ‘a brand that could be

enjoyed anytime & anywhere’

VALIDATION OF

HYPOTHESIS Data validates hypothesis Data validates hypothesis Data validates hypothesis


Recommendations

Packaging re-design for a more distinctive & contemporary look for enhancing on-shelf presence; seasonal, limited-edition variants

Strong & distinctive brand persona aided through consistent communications, clear messaging & clever experiential or partnership strategies

No clear evidence to show that neither gender segment exhibits a stronger

affinity or brand loyalty towards Kahlúa

Kahlúa performs less well on attributes that are commonly important to both

males and females

♂ ♀

friendship taste

& flavour

Mexican heritage


Recommendations

One-word strapline ‘delicioso’ (Spanish for ‘delicious’) to sum up everything Kahlua is trying to convey

Witty broadcast or print ads featuring cocktail ideas, new consumption occasions, celebrities


Thank you

mktg607: improving the brand performance of kahlúa in singapore

Marketing