The document discusses consumer behavior research and decision making. It notes that early consumer behavior research in the 1980s focused on the decision making stage, viewing shopping as problem solving. More recently, research has looked at how consumers resolve dilemmas through market decisions characterized by tensions between ideal states and conditions needed to activate incentives and decision mechanisms.
1. TASK1
Consumer behavior is perhaps the most researched topic in customer-oriented research,
especially when it comes to selecting items from a variety of options. In many sectors of
consumer science, it has recently become a hot topic. Consumers' dilemma is solved through
market decision-making, which is characterized as "a conflict between an ideal state and ideal
conditions that are required for incentives and decision-making mechanism activation (Jeddi,
2013)." In summary, most of the research on consumer behavior in the early 1980s focused
strictly on the decision-making stage, while shopping was seen as a problem-solving activity,
essentially allowing consumers to Clients bypass the problem-solving stage (REISINGER, 2009).
1. Level of competition
You can decide whether to pursue or abandon a market based on the degree of
competition. Learn as much as possible about your competitors' products, including
their price points, quality, distribution technology, consumer loyalty, and after-sales
support capabilities.
If there is already a lot of competition, it is best to focus on smaller and expanding
industries where competition is less intense. For multinational companies, smaller
markets may not be profitable, but for small and medium producers it is more than
enough.
2. Country performance
Analyze the macroeconomic conditions and development of each country you choose.
Important indicators include population, per capita income and consumer demographic
data. If a country’s demand for your product is growing steadily, but the country’s
overall economic performance has deteriorated, then the demand for your product is
likely to decline. If the demand for products increases with the country’s economic
development, then the country may be a better long-term investment.
3. Trade Barriers
All tariff and non-tariff barriers (standards, rules, quotas, import licenses, etc.) must be
determined for each country/region you are going to, as well as necessary adjustments
and packaging and labeling restrictions. In other cases, significant trade barriers may
keep your product away from the market, and necessary changes may involve more
funds than you are willing to invest. For example, if the packaging and labeling
standards are not met, foreign customs authorities will seize the items.
4. Political Factors
2. It is vitally important to know the political stability of the export destination at all times,
especially if it is a developing country. For example, if a military coup occurs, the new
government may change its policies; if a country falls into social unrest, the interruption
of activities will basically ruin it. Furthermore, it is well known that the new government
will change its policies in response to various investment problems. These changes can
have a negative impact on your ability to generate and repatriate profits
5. Infrastructure
If the export market lacks reasonable channels for experienced staff, providing help
from headquarters can be very costly. Exports can be hampered by a lack of physical
infrastructure (such as roads, utilities, and telecommunications services). For example,
the inability to deliver perishable items on time or the inability to use refrigerated
storage facilities can be an effective deterrent.
6. Intellectual property protection
Proper enforcement of patent and trademark regulations will prevent foreign
companies from stealing your technology. For example, software exporters may wish to
avoid markets where patent or trademark restrictions are often weak or unenforced.
More than
governments have consistently listed China and several other emerging countries as
serious infringements of intellectual property rights. Therefore, before exporting art or
knowledge-intensive products, please carefully read the reports prepared by the United
Nations and the newly established World Trade Organization.
7. Cultural knowledge
It is important to understand the buyer’s culture and preferences. In one country,
friendly behavior may be considered offensive in another country. Product designs that
do not conform to cultural tastes may be rejected. Remember, many foreigners think
that being kind means agreeing without regard to the consequences or their ability to
act.
Having a bilingual or multilingual employee to show sincerity helps avoid typical
misunderstandings caused by improper translation.
TASK 2
MARKETING RESEARCH
Various marketing research / analysis concepts can be found in academic literature and
textbooks. The differences between them are rarely essential, because they rarely involve
questions of substance, but rather words used to construct concepts, as well as their breadth
and focus. The American Marketing Association's conceptualization of marketing analysis is one
3. of the most systematic and widely accepted concepts. Marketing research is a knowledge-
based function that identifies and describes marketing possibilities and difficulties for
marketers, as well as for customers, consumers, and communities (Parmar, 2010).
Focus groups are one of the most important tools for conducting primary consumer research.
This method requires gathering a group of people in a room or area and asking them questions
about the brand, production, expectations, and reviews. The focus group can be managed or
held in the most convenient place for the company or company. Thanks to technological
advances and social media, they can now be done remotely via video conferencing. But the key
element here is that there are some commonalities between the members of the group, such
as belonging to the same age group, having similar races, etc (Windows, 2012).
OBSERVATIONS
In primary market research, there are two basic methods of observation or analysis: analysis
through dialogue and interaction with the subject and observation without dialogue and
interaction with the subject. This type of analysis is often used to evaluate or quantify the
behavior of users or customers, and is part of the main quantitative investigations. For
example, this strategy is more personalized than opinion polls and online surveys.
I used analysis through dialog with two consumers in rural area. Asked following questions each
of them to see the gaps of our product and unmet needs from the products.Key findings as
follows
When looking for this chocolate cream biscuits, our brand- Munchee comes into their
mind
Biggest competitor for our product is maliban chocolate cream biscuits
Favorite aspect of our product crispiness, softness, smoothness, crunchiness
Features that are better in our competitor’s product - flaky.
Changes they recommend making to our product to give us an edge over our
competitors is lower the biscuit density which gives more volume and a lighter bite
According to them our product has no issues when using our product
Something that has deterred you or would deter you from using our product is maliban
has using better marketing campaigned than us. So consumers used to buy maliban
sometimes in there area. So our product must be marketed better in other areas like we
do in urban areas.
Our product’s key weaknesses are expire date is short and packing is not attractive.
TASK 3
The marketing mix is defined as "a set of tactical marketing tools used by a business to achieve
expected results in its target market (Kotler, 2012)." Oreo's marketing strategy uses a marketing
mix framework to verify brands, which includes four Ps (product, price, location, promotion).
Product innovation, pricing strategy, promotion planning, etc. are examples of marketing
4. strategies. These business techniques based on the Oreo marketing mix contribute to the
success of the brand.
PRODUCT
Oreo is a recognized biscuit brand with global operations in hundreds of countries. Oreo’s most
famous product is the chocolate sandwich, which consists of two chocolate wafers with a layer
of cream in between. However, more progress has been made in launching other variants of
Oreo products to meet the needs of a larger customer base. They come in various shapes and
flavors, and some are not sandwich biscuits. Since its establishment, more than 500 billion
Oreos have been sold worldwide. Oreo's marketing mix includes a number of significant
products (www.oreo.com, 2021).
• Double Stuffed Oreo
• Sugar free Oreo
• Golden Oreo
• Oreo Thins
• Flavors: Green Tea, Lemon, Orange Ice Cream, Fruit Punch
• Oreo Fudges, Jell-O Oreo, Oreo Chocolate Candy Bar
The design of various product variants is a key component of attracting a large number of
consumers to buy products. Oreo packaging has also had a vital impact on expanding the
popularity of the product. It is generally believed that Oreo products taste better, and the
introduction of wet biscuits only adds to this perception.
PRICE
The brand has a lot of competition, but these products have managed to gain market share by
meeting expectations in terms of the value they provide. To gain greater market share in newer
and price-sensitive countries, Oreo initially adopted a lower marketing pricing strategy. Later,
when Oreo became more and more popular in the newly entered market, the price of the
products also increased. Due to the different pack sizes that are sold at different prices, the
brand can gain a greater influence on sales at the national level. Oreo was launched primarily to
gain market share in cities, leading to a slight increase in product prices.
PLACE
Oreo offers its products to customers through Mondelez's global distribution network. For the
different Oreo products, each continent has facilities to meet the needs and feelings of
manufacturing customers. They are believed to have been listed in approximately 100 countries
/ regions around the world. As part of the distribution strategy of the marketing mix, sales and
marketing teams ensure that products are marketed through appropriate distribution channels.
shopping malls, malls, mom and dad stores, retail stores, and other traditional channels that
provide these things can be found all over the world.
PROMOTION
5. The brand is most closely related to macerated and macerated biscuits with cream and rich
flavor. The distinctive packaging also helps consumers quickly identify the brand. Oreo is widely
known for his extensive use of visual media in television and print advertisements. His
advertising ideas target both young people and children. Customers have been interacting with
brands through social media platforms. During the brand's debut in various regions, both the
store display and outdoor advertising have been well publicized. Another platform that the
brand uses to reach the target audience is social networks. Movie stars have been recruited to
speak on behalf of the brand globally. It is one of the few products that was first launched a
century ago, but has gained fame in recent decades due to more aggressive marketing
activities. As a result, the Oreo marketing mix is complete.
TASK 4
Marketing activities are carried out using strategic technology, which is a series of wise
behaviors. It is not just a process of setting a series of options for the company, writing them
down, setting marketing goals related to the overall goals of the organization, and planning and
pricing related projects that are most likely to achieve the goals (Pachauri, 2004).
SEGMENTING
Segmentation Category Component
Geographic Urban
Semi Urban
Demographic- Age 6 to 18
18 to 24
24 to 39
Income Upper
Middle
Physchographics Outgoing
readiness to try new products
experimental by nature
dont mind spending a little extra on
snacking
brand-conscious
lifestyle is comfortable
TARGETING
Oreo's target segment should be divided into two parts:
1) Focus on the Primary Target Segment
2) Segment of Secondary Target
6. Primary Segment:
The target market of the product is the main market segment. The main target market will
generate most of the revenue. These customers have similar qualities and behaviors, generate
the highest sales, and are most likely to buy immediately.
Children and adolescents consume more milk. Biscuits are also butter biscuits, which are often
eaten by children who like to eat butter. Children appreciate the cute advertisements that show
the close relationship between children and their parents and siblings.
Secondary Segment:
In this segment there are adults, office workers and parents are all present. More importantly,
the snacking habits of this market segment make it unique. The target customer’s income is
increasing, the lifestyle is fast-paced, and working hours are unstable, all of which make people
more likely to eat snacks.
POSITIONING
Positioning is to gather multiple target audiences together, choose the right method, and at the
same time use the company's excellent ideas and advantages to surpass competitors. The
image on the right shows six different strategies for product placement. Pricing must be at the
forefront of strategic decisions, aiming to provide lower costs than competitors. Provide
products of higher quality than competitors (Kinra, 2006). Oreo uses emotional appeal to
reiterate that your product is the parent-child binding force in the ad. Oreo also adopted its
global "Twistlickdunk" positioning in the market, despite price and SKU manipulation. Help
attract the attention of children, who will beg their parents to buy them Oreo cookie. Oreo
have long been associated with leisurely consumption.
7. To occupy the youth and adult market, it has just hired the young and enthusiastic Neymar as
its brand ambassador. Neymar has over 159 followers in instagram and 85.3 followers on
facebook (Socialblade, 2021). Most of the target segmentation preferring football. So an
emerging young star like Neymar has been selected for better targeting perspective.