Consumer Analysis, Essay Example
Part 2: Problem approach
- Research question (value): what product benefits will lead the target market to perceive to perceive that the product provides greater value than competing product offerings?
- Hypothesis: the product benefits that will convince the target market to buy the Red bull include natural taste, high quality and flavored drink.
Information: it is always crucial for one to identify benefits that customers expect to get by purchasing and using products from the market. For instance, automobile buyers may want prestige or luxury from products. In the case of our, Red Bull drink, consumers are interested in satisfying taste, attractive package with natural flavors free of chemicals and appealing color- black for this case.
- Research question 2a (consumer perception): What positioning will communicate and create that perceived value?
- Hypothesis: Adverts through the media such as radio, television newspapers, magazines and billboards will help in communicating and creating the perceived value.
Information: A company needs to identify the traits of consumers who would show an interest in the product while targeting a market. We need to collect information concerning the consumers’ needs, tastes and preferences. Successful advertising will help in creating an image, brand, among consumer’s minds. Brand positioning can thus cater to the customer needs, interests and tastes in the target market.
- Research question (Consumer perception): How should you tailor the market mix elements to communicate your desired product positioning?
Hypothesis: The high quality of Red bull, taste and healthy attributes including discounts will help in communicating the desired product positioning.
Information: Marketing has to do with providing correct benefit bundles to the customer. It is not a mere provision of products and services. It deals with provision of changing benefits for the changing demands and needs of customers. We should view products in three levels including core product, actual product and augmented product level.
- a). Research question (Purchase intentions): What other factors will motivate/influence the target market’s decision to purchase your product?
Hypothesis: Social factors will influence the target market’s decision to purchase our product. The social factors include social status and groups to which customers belong.
Information: A consumer’s decision to buy and utilize services and products is influenced by people around him or her- those who interact with them and various social groups they belong to as well as by personality, psychological factors and lifestyle. The groups that interact with customers indirectly or directly influence their purchase decisions and, therefore, studying them is crucial for a marketer.
3 (b). Research question (Purchase intentions): How can the marketing mix be designed to impact positively these factors?
Hypothesis: We can design the market-mix by ensuring that the advertisements reach social halls and residential areas.
Information: Advertising is a critical thing in marketing because it creates awareness of existence of a new product in the market. It ensures that customers receive information that will influence their choice when buying competing brands in the market.
RQ1: What is the target market’s attitude toward the parent brand?
Hypothesis: The target market has a positive attitude towards the parent brand.
Information: the target market’s attribute belief and evaluations of the parent brand is a pleasing one. Red Bull has been and still is a popular drink among men. It has most consumers consisting of students, athletes and night clubbers. The aim of the company has to market it to hardworking people and opinion leaders with active lifestyles.
RQ2: Does target market perceive a fit between the parent brand and extension product category?
Hypothesis 1: The target market’s perceived fit will be positive between the brand and product image.
Hypothesis 2: The target market’s perceived fit will be positive between the original brand product category and extension product category.
Information: We need to carry out positioning analysis on the parent brand perception among the customers. The Red Bull has been on the lead in the market of energy drinks, although Monster and Rockstar are some upcoming drinks that threaten the Red Bull. The extension product category should focus on the healthiness, effectiveness and taste.
RQ3: What product benefits or attributes will target consider greater value than competing products?
Hypothesis: The new Red Bull’s taste and effectiveness provide greater value than competing brands.
Information: The consumer rating of relative value of our products compared to competing product names is as follows:
|Product name and customers’ rating|
RQ4: What other factors will motivate/influence our target market’s purchase intentions toward our brand extension?
Hypothesis: Advertising by use of internet via social media such as Facebook and Twitter will positively influence our target market’s purchase intentions.
Information: the target market’s purchase intention ratings have been high and customers at level 2 have rated advertising using the internet. We need to improve our efforts to realize increased purchase intention ratings in the future.
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