Presented By:

Atul Agarwal

Balu K Thomas

Dhiraj Bhabhulgaonkar

VALS System

INTRODUCTION

VALS™ is a consulting and consumer research service. VALS consulting provides clients with tailored marketing strategies for targeting, positioning, and communications—real-world, real-time, actionable strategies.

VALS is the acronym for "Values, Attitudes and Lifestyles“.

VALS™ is a marketing and consulting tool that helps businesses worldwide develop and execute more effective strategies. The system identifies current and future opportunities by segmenting the consumer marketplace on the basis of the personality traits that drive consumer behaviour. VALS applies in all phases of the marketing process, from new-product development and entry-stage targeting to communications strategy and advertising.

History Original VALS system was built by consumer

futurist Arnold Mitchell in 1970`sVALS was formally inaugurated as an SRI

International product in 1978 and was cited by Advertising Age as "one of the ten top market research breakthroughs of the 1980s.“

In 1989, VALS was redefined to maximize its ability to predict consumer behavior.

VALS is a system for grouping consumers according to psychological and sociological theories in order to predict their behaviour in the purchase decision process.

Customers can be grouped in 3 categories:

1. need-directed -consumers who make purchases based solely on need.

2. outer-directed -consumers who make purchases based on their perceptions of the way others view them.

3.  inner-directed -consumers who make purchases out of some inner need.

VALS Framework

Main Dimensions of the segmentation Framework

Primary Motivation An individual's primary

motivation determines what in particular about the self or the world is the meaningful core that governs his or her activities

Consumers are inspired by one of three primary motivations: ideals, achievement, and self-expression.

Resources Different levels of resources

enhance or constrain a person's expression of his

or her primary motivation. Energy, self-confidence,

intellectualism, novelty seeking, innovativeness, impulsiveness, leadership, and vanity play a critical role

Thinkers tend to be well educated  and actively seek out information in the decision-making process. They are well-informed about world and national events and are alert to opportunities to broaden their knowledge.

Thinkers are conservative, practical consumers; they look for durability, functionality, and value in the products that they buy.

Believers are conservative, conventional people with concrete beliefs based on traditional, established codes: family, religion,  community, and the nation. As consumers, Believers are predictable; they choose familiar products and established brands. They favor U.S. products and are generally loyal customers.

Thinkers/Believers

Achievers are motivated by the desire for achievement, Achievers have goal-oriented lifestyles and a deep commitment to career and family. 

Image is important to Achievers; they favour established, prestige products and services that demonstrate success to their peers. Because of their busy lives, they are often interested in a variety of time-saving devices.

Strivers are trendy and fun loving. Because they are motivated by achievement, Strivers are concerned about the opinions and approval of others. Money defines success for Strivers. They favor stylish products .

Achievers/Strivers

Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that they place on looking good and having "cool" stuff.

Makers express themselves and experience the world by working on it—building a house, raising children, fixing a car, or canning vegetables—and have enough skill and energy to carry out their projects successfully. Makers are practical people who have constructive skills and value self-sufficiency.

Experiencers/Makers

The purpose of the VALS™ survey is to identify the VALS type of the person taking the survey

 To find out about a person's product ownership, media preferences, hobbies, additional demographics, or attitudes

The VALS Survey questionnaire consists of 35 attitude and four demographic questions

The current VALS Survey questionnaire is the third version based on this kind of extensive empirical research.

VALS SURVEY

New Product Development

Positioning

Communication

Geolocation

Policy

Applications of VALS

VALS™ consultants facilitate successful product launches and help avoid costly mistakes

Understanding the needs of various consumer groups guides new-product and services development.

Applications: Ideation Entry-Stage Targeting Concept Testing Focus Groups Features and Benefits Business Partnerships Distribution ChannelEg : A European luxury automobile manufacturer used VALS to

identify online, mobile applications that would appeal to affluent, early-adopter consumers within the next five years

Innovation : New Product Development

Identify which market opportunities are strongest. Relating features and benefits to distinct segment needs

clarifies strategies for targeting and expansion.Applications:

Competitive Analysis Brand Differentiation Target Selection Proprietary Research Linking of Data Sets Customer Retention

Eg : A Japanese auto manufacturer repositioned its product line in the United States by using VALS to understand target consumer perceptions of its product mix better. The resulting advertising campaign, based on VALS, increased sales 60% in six months.

Targeting: Positioning

 Understanding what motivates consumers illuminates how to speak to them in ways that will initiate action.

Applications: Value Proposition Brand Personality Creative Develoment Channel Planning Media Placement

Eg: A large pension plan provider to the United States conducted a custom research survey of its participants, incorporating VALS to identify which of its participants it could service electronically

Communications: Channel Planning

Federal, state, and local governments and other policy makers can use VALS™ to understand consumer acceptance of and resistance to current and future policy: Nonprofit organizations can benefit by better understanding contributors and volunteers.

Applications: Segmentation Thought-Leader Identification Campaign Ideation Theme Development Communications Design Donor Outreach Public Relation.

VALS helped a State Department of Conservation increase residential recycling of bottles and cans through its custom research study.

Policy

Gain a fresh perspective by getting "into the heads" of your customers.

Create richly textured consumer profiles or personas.

Understand the distinct communications styles of your best targets.

VALS Benefits