A Study of the Impact of Values and Life Style(VALS) on Brand Loyalty with special reference to English News Paper

1. Presented by: Group:
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3.  High growth in Indian newspaper industry due to opportunities not only in
the territories of the players, but also in those of the competitors.
Thousands of crores were spent by players to invade each other’s territories,
making understanding reader preference as the only way to survive.
 People correspond to their beliefs to which they identify themselves, while
looking for a newspaper.
 Defining reader profile helps in designing better marketing strategies, hence a
study of VALUE AND LIFESTLYES (VALS) is essential.

4.  VALS views people on the basis of their attitudes, needs, wants, beliefs
and demographics.
 This program was created by SRI International in 1978.
 VALS uses psychology for customer segmentation which has led to a
creation of link between personality traits and purchase behaviour of
consumers.
 It helps distinguish differences in motivation and also captures the
psychological and material constraints on consumer behaviour.
 Individuals may have common characteristics such a age, sex,
geographic location, etc. but their psychographic structure varies, hence
psychographic segmentation comes into play.
 Psychographic segmentation helps in pin pointing the most receptive
audiences for the company’s messages.

5.  Brand loyalty is another important aspect. Customers don’t change
brands for extra benefits or attributes of the competitors. Brand loyalists
are less price sensitive and this is reflected in the brand equity.
 Players must make good use of customer lifetime value because all the
difference is made by the consumers perception. Brand loyalty is the
result of positive attitudes and perceived values. For example; a Harley
Davidson rider bearing a Harley tattoo on his arm.
 Consumers tend to link emotions and values in consumption
experiences. Values are one of the most powerful explanations of
influences on Consumer Behaviour.
 VALS helps in understanding reasons behind consumer choice and the
motivations that stimulate Consumer Behaviour.

6.  Newspapers shape the nation and it holds true for India as well.
 Even before India got independence, newspapers played a major role in
spreading the issue of independence.
 Today, India has over 300 big newspapers, besides hundreds of medium
and small-sized ones. And the number is increasing almost everyday as
existing newspapers bring out new editions apart from new players joining
the bandwagon.
 There was a time when select group of newspapers were ruling a particular
region and they all were self-contained and did not wish to foray into other
regions.
 For example, Hindustan Times was confined to Delhi region, The Hindu
in Chennai region, while Anandabazar Patrika was confined in West
Bengal and Bhaskar in Gujarat and so on.

7.  But lately, the scenario has completely changed; for example, the Times of
India added a number of new editions . The Indian Express group
launched its Marathi daily ‘Loksatta’ in Bangalore and Hyderabad.
 Regional newspapers like Dainik Jagran , Dainik Bhaskar , Rajasthan
Patrika, Amar Ujala, etc have also started spreading their hold over B
class cities.
 Business newspapers have also branched into new editions in newer
territories. The Times Group has launched a Gujarati language edition of
The Economic Times.
 Another popular way seen to enter into other territories quickly has been
by acquisitions, like Times of India group acquired Bangalore-based
publishing house, Vijayanand Printers to tap the southern market.
 Top newspapers in India are now opting for high-speed web presses like
that of Goss, MAN Roland, Mitsubishi and mailroom systems from Ferag
and Muller Martini.

8. THE HINDU
The Hindu started in 1878 as a weekly and became a daily in 1989.
 According to the Indian Readership Survey in 2011, it is the third most
widely read English newspaper in India with a readership of 2.0 million people.
 It is printed in twelve centers namely Chennai , Coimbatore , Bangalore ,
New Delhi , Hyderabad ,etc…
The Hindu also publishes Business Line, Front Line and Sport Star .
It had also published many books like The Survey of Indian
Industry 2012 , Sachin-Tribute To A Legend etc.

9. The Times Of India
The Times of India was launched in Bombay in 1838.
It is owned by Benett,Coleman & Co. Ltd.
It is the largest newspaper in the country with a strong national presence.
It is India’s most widely circulated English daily and the group’s mega-brand.
The Times of India is rated amongst the world’s six best newspapers and has a
daily circulation level of more than a million copy.
It is published from Mumbai,Delhi,Bangalore,Ahmedabad,Lucknow and
Patna.
The group also publishes Economic Times,Femina,
NavbharatTimes,Filmfare,Sandhya Times,andTimes FM.

10. THE NEW INDIAN EXPRESS
The New Indian Express is an Indian English language braodsheet daily
newspaper published by the Express publications and based in Chennai.
It is printed in fourteen centers.
It has a major presence in the four southern states of Tamil
Nadu,Karnataka,Andhra Pradesh,Kerala and also Orissa.
The group also publishes newspaper Dinamani in Tamil and Kannada
Prabha in Kannada, and also magazines ,Cinema Express in Tamil,
Malayalam Vaarika in Malayalam and Tamil Express in Tamil.
At present it’s the only national daily which publishes news of far-flung
Andaman and Nicobar Islands on an everyday basis.

11. 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 uses psychology to segment people according to their distinct
personality traits.

12. VALS segments
VALS™ places consumers into
one of eight segments based on
their responses to the VALS
questionnaire. The main
dimensions of the segmentation
framework are primary
motivation (the horizontal
dimension) and resources (the
vertical dimension).

13. VALS segments VALS types description
 Innovators (formerly Actualizers)
Innovators are successful, sophisticated, take-
charge people with high self-esteem. Because
they have such abundant resources, they exhibit
all three primary motivations in varying degrees.
They are change leaders and are the most
receptive to new ideas and technologies.
Innovators are very active consumers, and their
purchases reflect cultivated tastes for upscale,
niche products and services.
Image is important to Innovators, not as evidence
of status or power but as an expression of their
taste, independence, and personality. Innovators
are among the established and emerging leaders
in business and government, yet they continue to
seek challenges. Their lives are characterized by
variety. Their possessions and recreation reflect a
cultivated taste for the finer things in life.

14. VALS segments VALS types description
 Thinkers (formerly Fulfilleds)
Thinkers are motivated by ideals. They are
mature, satisfied, comfortable , and reflective
people who value order, knowledge, and
responsibility. They 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 have a moderate respect for the
status quo institutions of authority and social
decorum, but are open to consider new ideas.
Although their incomes allow them many
choices, Thinkers are conservative, practical
consumers; they look for durability,
functionality, and value in the products they
buy.

15. VALS segments VALS types description
 Believers
Like Thinkers, Believers are motivated by
ideals. They are conservative, conventional
people with concrete beliefs based on
traditional, established codes: family, religion,
community, and the nation. Many Believers
express moral codes that are deeply rooted and
literally interpreted. They follow established
routines, organized in large part around home,
family, community, and social or religious
organizations to which they belong.
As consumers, Believers are predictable; they
choose familiar products and established
brands. They favor American products and are
generally loyal customers.

16. VALS segments VALS types description
 Achievers
Motivated by the desire for achievement,
Achievers have goal-oriented lifestyles and a
deep commitment to career and family. Their
social lives reflect this focus and are structured
around family, their place of worship, and work.
Achievers live conventional lives, are politically
conservative, and respect authority and the status
quo. They value consensus, predictability, and
stability over risk, intimacy, and self-discovery.
With many wants and needs, Achievers are active
in the consumer marketplace. Image is important
to Achievers; they favor 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.

17. VALS segments VALS types description
 Strivers
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, who don't have enough of it to meet
their desires. They favor stylish products that
emulate the purchases of people with greater
material wealth. Many see themselves as
having a job rather than a career, and a lack of
skills and focus often prevents them from
moving ahead.
Strivers are active consumers because
shopping is both a social activity and an
opportunity to demonstrate to peers their
ability to buy. As consumers, they are as
impulsive as their financial circumstance will
allow.

18. VALS segments VALS types description
 Experiencers
Experiencers are motivated by self-expression.
As young, enthusiastic, and impulsive
consumers, Experiencers quickly become
enthusiastic about new possibilities but are
equally quick to cool. They seek variety and
excitement, savoring the new, the offbeat, and
the risky. Their energy finds an outlet in
exercise, sports, outdoor recreation, and social
activities.
Experiencers are avid consumers and spend a
comparatively high proportion of their income
on fashion, entertainment, and socializing.
Their purchases reflect the emphasis they
place on looking good and having "cool" stuff.

19. VALS segments VALS types description
 Makers
Like Experiencers, Makers are motivated by
self-expression. They 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. They live within a traditional
context of family, practical work, and physical
recreation and have little interest in what lies
outside that context.
Makers are suspicious of new ideas and large
institutions such as big business. They are
respectful of government authority and
organized labor, but resentful of government
intrusion on individual rights. They are
unimpressed by material possessions other
than those with a practical or functional
purpose. Because they prefer value to luxury,
they buy basic products.

20. VALS segments VALS types description
 Survivors (formerly Strugglers)
Survivors live narrowly focused lives. With
few resources with which to cope, they often
believe that the world is changing too quickly.
They are comfortable with the familiar and are
primarily concerned with safety and security.
Because they must focus on meeting needs
rather than fulfilling desires, Survivors do not
show a strong primary motivation.
Survivors are cautious consumers. They
represent a very modest market for most
products and services. They are loyal to
favorite brands, especially if they can
purchase them at a discount.

22.  Highly reliable and credible source.
 Unbiased news presentation.
 Enhancing their language fluency.
 Wide coverage of news.
 More entertaining and lots of pictures.
 High print quality.
 Recommend to their friends.

23.  Psychographic profile of customers.
 Building brand Image.
 Characteristics of VALS segments.
 Believers are strong loyal customers.

26. Strategies
The following framework suggests four types of market
dominance strategies :
Market Leader
Market Challenger
Market Follower
Market Nicher

27.  The market leader is dominant in its industry.
 They should defend their market share by retaining their
existing customers.
 Market Leader should have strong customer base of
Thinkers and Believers.
 The Times of India is the world’s largest selling newspaper
according to The Audit Bureau of Circulations.
 They have a very strong base of Strivers(45%).
 They have to target Believers and Thinkers to increase their
loyalty base.

28.  A market challenger is a firm in a strong , but not dominant
position .
 It typically targets the industry leader.
 The Hindu is the 3rd largest selling English daily.
 Innovators are the strongest base of The Hindu(40%).
 Strivers are the most vulnerable segment to be targeted by
The Hindu.
 Strivers are impulsive, easily bored and are fashion victim.
 The Hindu may come out with supplements with
entertainment,colorful pictures and stories about the latest
trends in fashions along with retaining the strong base of
Innovators.

29.  A Market follower is a firm in a strong , but not dominant
position .
 They can follow 2 options:
 To strengthen the loyalty of existing customer base by
delivering the core benefits to their segment.
 Expanding their customer base by targeting Brand
Switchers.
 The New Indian Express have strong loyalty base of
Believers(35%).
 They can tap the potentials among the Strivers and
Strugglers.

30.  In this strategy the firm concentrates on a select few target
markets. It is also called a Focus Strategy.
 The niche should be large enough to be profitable, but small
enough to be ignored by the major industry players.
 Makers and Achievers are the segment to be tapped.
 Newspapers with political alignment may target the
Achievers.

31.  The strategy followed by Times of India in Chennai to
capture the market is unique.
 This study is examining various VALS segments and their
impact on brand loyalty particularly in the context of major
English newspapers.
 Further they can possibly include extension to different
Brands and Regions according to geo-demographic factors .
 Similarly, the relationship between lifestyles and preference
for Regional Vs English Newspaper can also be focused on.