06 Aug Buyer And Consumer Behaviour
March 2017 You have recently been appointed as the Marketing Coordinator at Mars Inc. Australia. Mars is a leading consumer brand company, providing products to local and overseas markets in the Food, Pet Care, Chocolate, Gum & Confectionary categories. Your role is within the Gum division. Mars owns gum brands such as Extra, Eclipse, Hubba Bubba and Juicy Fruit. Your Marketing Director is also new to her role and has commissioned some market research to collect data on people’s gum buying behaviour. As you are a recent Marketing graduate from UniSA, she asks that you analyse and interpret the data and share your insights on gum buying behaviour with the department. Your Marketing Director has given you a list of specific questions that she wants answered. Prepare a 2000-word report that addresses the questions outlined below. Provide an Executive Summary (approx 1 page) outlining the major findings of the report and the implications for the brand Extra. This is followed by the main body of the report divided up into the four sections:
– Understanding Buyer Behaviour – Brand Performance – Mental Availability – Demographics and Segmentation
This should be followed by a reference list. Your work should make reference to material taught in this course via your readings and other sourced materials. You should include at least 10 references as a minimum requirement. You do not have to include the tables from this document. Note: The word count excludes the executive summary, all tables and your reference list. Headings and sub-headings in the report are encouraged where appropriate. It is important that this deadline is adhered to. This part of the assessment needs to be submitted no later than Monday 1st May by 11.00pm (at which time the submission link closes). This course has a no extensions policy unless exceptional circumstances apply (for more information please refer to the Course Outline). Extensions will not be granted for this work on or after the due date. All extension requests need to be submitted in writing via the ‘Extensions’ link on the course website.
Buyer and Consumer Behaviour SP2 2017 – Assignment 2
Section 1: Understanding Buyer Behaviour 1. Your new Marketing Director asks for your opinion about which of the two
theories, Cognitivism or Behaviourism, is the best approach to understand buyer behaviour. Explain each and give reasons for your preferred theory. (400 words approx.)
Section 2: Brand Performance Table 1: Brand Performance Measures
Brand
Market Share Penetration
Average Purchase
Frequency
Category Buying
Rate
Share of Category
Requirements
Sole Loyalty
Orbit 37 75 2.2 5.2 43 22
Extra 27 55 2.2 5.4 41 13
Mentos 20 45 2.0 6.8 29 7
PK 12 35 1.5 7.2 21 0
Jila 6 21 2.0 7.9 18 0
Airwaves 4 18 1.0 9.5 11 0
Average 100 42 1.8 7.0 27 5 2. Are there any patterns evident between the brand performance measures in
Table 1? Describe the patterns and differences that you see between the competing brands, and specifically for Extra. (400 words approx.)
3. Your Marketing Director says “sole loyal buyers are the best type of buyers to have, these buyers are the key to brand growth”. She wants to implement a marketing strategy encouraging existing buyers to only buy Extra. Explain if this is a good strategy to take. Why / why not? (300 words approx.)
Section 3: Mental Availability 4. Describe Mental Availability. Discuss how mental availability can be built and
enhanced. What are the appropriate marketing strategies for building mental availability? Name 10 category entry points that you would expect to be included in an advertisement for Extra. (400 words approx.)
Section 4: Demographics & Segmentation 5. Your Marketing Director believes that the Extra brand should be targeted towards
a customer profile of males, aged 26-45 years old, who earn more than $70,000 per year. Analyse Tables 4-6. Do you agree/ disagree with your Marketing Director? Explain your answer. (300 words approx.)
Buyer and Consumer Behaviour SP2 2017 – Assignment 3
Table 4: Demographics – Gender
Brand Male Female Male Dev. Female
Dev. Average
MAD
Orbit 64 36 4 -4 4
Extra 60 40 0 0 0
Mentos 59 41 -1 1 1
PK 61 39 1 -1 1
Jila 61 39 1 -1 1
Airwaves 58 42 -2 2 2
Average 60 40 2 2 2
Table 5: Demographics – Age
Brand 16-25 26-35 36-45 46-55 56-65 16-25 Dev. 26-35 Dev.
36-45 Dev.
46-55 Dev.
56-65 Dev.
Avg MAD
Orbit 16 35 18 13 18 -2 6 -6 -2 3 4
Extra 16 31 24 18 11 -2 2 0 3 -4 2
Mentos 18 27 23 16 16 0 -2 -1 1 1 1
PK 23 28 20 14 15 5 -1 -4 -1 0 2
Jila 19 24 27 15 15 1 -5 3 0 0 2
Airwaves 17 29 30 13 13 -1 0 6 -2 -2 2
Average 18 29 24 15 15 2 3 3 2 2 2
Table 6: Demographics – Total household income
Brand
Less than $50,000
$50,000 – $70,000
More than $70,000
<$50k Deviations
$50-$70k Deviations
>$70k Deviations
Average MAD
Orbit 23 29 31 3 6 -7 5
Extra 21 19 43 1 -4 5 3
Mentos 16 22 40 -4 -1 2 2
PK 21 22 39 1 -1 1 1
Jila 22 21 35 2 -2 -3 2
Airwaves 18 24 41 -2 1 3 2
Average 20 23 38 2 3 4 3
6. What marketing strategy recommendations would you make to your Marketing
Director as a result of your demographic and segmentation analysis above. (200 words approx.)
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