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Consumer
Behaviour
ANAND KAPUR
Several facets of consumer behavior exist, such as:
• How a consumer feels about certain brands, products, or services
• What motivates a consumer to pick one product over another and why
• What factors in a consumer's everyday environment affect buying
decisions or brand perceptions and why
• How consumers make decisions in groups or when they are alone
WHAT IS CONSUMER
BEHAVIOUR?
consumer behavior is a psychologically-based study of how individuals
make buying decisions; what motivates them to make a purchase
Why is Consumer
Behavior important
to Business ?
76%
80%
of consumers expect
companies to
understand their needs
and expectations
organizations that lead in
customer experience out
performed laggards on
S&P 500 index by
IMPORTANCEOFCONSUMER
BEHAVIOUR Importance of
Consumer Behaviour
• Consumer Differention
• Retention of Consumers
• Design Relevant marketing campaign
• Predicting Market Trend
• Competition
• Innovate New Products
• Stay Relevant in the Market
• Improve Customer Service
DOTHERIGHTTHINGAS
MARKETERSTOBUILDTRUST.
Model of Consumer
Behaviour
Case Studies
Importance of Consumer Behaviour
Some of the interesting case
studies to understand the
Importance of consumer
behaviour
Number Fever:
The Pepsi
Contest That
Became a Deadly
Fiasco
Decades ago, a marketing stunt
promised Philippine soda drinkers a
chance at a million pesos. But an
error at a bottling plant led to
600,000 winners—and to lawsuits,
rioting, and even deaths.
PEPSI349NUMBERFEVERSCANDAL
In 1992, Pepsi ran a marketing
Campaign called Number Fever to
boost sales.This campaign soon
turned into National Riot
PEPSI349NUMBERFEVERSCANDAL
Pepsi was worried about losing
Market Share in the Philippines so
they decided to launch this
campaign. Classic lottery Gimmick.
Man with lucky number on his bottle
cap gets a million pesos
The only mistake was
this lucky number (349)
was accidently printed
over 800,000 caps.
When Pepsi realised that what they
had done, it was too late. They now
owned the winners a combined total
of over $10 Billion. Thousands upon
Thousands of Filipinos demanded
their money and took to the streets
as the campaign soon turned into
violent riot.
PEPSI349NUMBERFEVERSCANDAL
Pepsi refused to give those people
many and many people turned
violent, destroying many of their
trucks and even kill a few people.
Soon, Pepsi recieved thousands of
Lawsuits.
It took almost 15 years
to dissolve all cases and
end the dispute,
resulting in millions of
dollars lost
When they started, they needed a low budget
way to increase brand awareness out there.They
choose a very simple route.They just went to
every single trash can in London and fillled with
empty Red Bull cans.
This created a perception that
there was massive demand
for this unkown product,and the rest is history
Genius
Marketing By
Red Bull
Today,this Bull is dominating it's niche, is the brand
leader in sector,and number one for top of head
recognition. Whoever thought up this idea deserves
Medal
DETTOL
Vs
SAVLON
Many startups now a days feel frustrated why their
product is not a success inspite of solving the burning
problem of the consumers .
A SMALL ST ORY OF DET T OL AND
SAVLON IN INDIA DURING EARLY
1990'S
Savlon's tagline was "healing without
hurting". It hoped for a mega success.
The result was completely different . The
Savlon launch bombed.
Dettol came up with a counter punchline
"it hurts when it works" & consumer
believe Dettol.
In early 1990's Dettol was a household
name, the most dominant brand in
Indian market. However it is used to
have a pungent smell & caused
burning sensation. As a child, can
recall feeling scared even with the
mention of Dettol applied on wound.
Savlon got rid of these 2 issues when
launched , it had good smell & no
burning sensation. It had solved
these 2 major problems and as per
research was a better germ killer
than Dettol.
DETTOLVSSAVLON
BRANDMARKETINGAND
CONSUMERBEHAVIOUR
Gillette
GILLETTECASESTUDY
The Gillette Company has a long history
of being 'the first to market...' in its own
areas of operation.
What “Mach” are we at now with Gillette? They
keep adding blades and go from MachX to
MachX+1 every few months as if the physics
of sound doesn’t matter, isn’t it?
GILLETTECASESTUDY
• Gillette makes the Guard razor, which
accounts for two of every three razor now
sold in India
• But in 2002, its predecessor the Vector was a
massive flop after intense focus grouping with
MIT students rather than India residents
• 'A-ha moment': Developers quickly learned to
better understand the exploding market
GILLETTECASESTUDY
GILLETTECASESTUDY
Gillette did the market research,
so what went wrong?
Here’s the catch –
they didn’t do the market research in India!
Gillette tested the product with Indian Students in
MIT and hence missed one crucial insight about
shaving habits in India. A large part of Indian men
don’t have access to running water while shaving,
so unclogging the Vector razor isn’t possible.
Yeah, a rather face-palm moment for Gillette
marketers, for sure.
Gillette did the market research,
so what went wrong?
When Gillette launched its Vector razor
in India, however, things weren’t
moving at such a high velocity. Gillette
did some market research before
launching this razor. They found out
that Indian men had longer and thicker
hair than Americans. So, they included a
plastic piece that could slide down in
order to unclog the razor while shaving.
Vector was launched but didn’t do well.
GILLETTECASESTUDY
The next time Gillette focussed on the Indian market,
they did things the right way. 20 people from their
headquarters spent 3,000 hours with more than 1,000
consumers in their homes. The result – Gillette Guard,
one of the bestsellers in India. It consisted of just a
single blade, to deliver safety rather than a smooth
shave, focussing on what Indian men really needed.
THAT is the power of doing market research the right
way!
GILLETTECASESTUDY
ANAND KAPUR
MBA(TYC) SEMESTER-III
Thank You
WE WANT T O H EAR FROM YOU!

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Importance of consumer behaviour

  • 2. Several facets of consumer behavior exist, such as: • How a consumer feels about certain brands, products, or services • What motivates a consumer to pick one product over another and why • What factors in a consumer's everyday environment affect buying decisions or brand perceptions and why • How consumers make decisions in groups or when they are alone WHAT IS CONSUMER BEHAVIOUR? consumer behavior is a psychologically-based study of how individuals make buying decisions; what motivates them to make a purchase
  • 3. Why is Consumer Behavior important to Business ? 76% 80% of consumers expect companies to understand their needs and expectations organizations that lead in customer experience out performed laggards on S&P 500 index by
  • 4. IMPORTANCEOFCONSUMER BEHAVIOUR Importance of Consumer Behaviour • Consumer Differention • Retention of Consumers • Design Relevant marketing campaign • Predicting Market Trend • Competition • Innovate New Products • Stay Relevant in the Market • Improve Customer Service
  • 6. Case Studies Importance of Consumer Behaviour Some of the interesting case studies to understand the Importance of consumer behaviour
  • 7. Number Fever: The Pepsi Contest That Became a Deadly Fiasco Decades ago, a marketing stunt promised Philippine soda drinkers a chance at a million pesos. But an error at a bottling plant led to 600,000 winners—and to lawsuits, rioting, and even deaths. PEPSI349NUMBERFEVERSCANDAL
  • 8. In 1992, Pepsi ran a marketing Campaign called Number Fever to boost sales.This campaign soon turned into National Riot PEPSI349NUMBERFEVERSCANDAL Pepsi was worried about losing Market Share in the Philippines so they decided to launch this campaign. Classic lottery Gimmick. Man with lucky number on his bottle cap gets a million pesos The only mistake was this lucky number (349) was accidently printed over 800,000 caps.
  • 9. When Pepsi realised that what they had done, it was too late. They now owned the winners a combined total of over $10 Billion. Thousands upon Thousands of Filipinos demanded their money and took to the streets as the campaign soon turned into violent riot. PEPSI349NUMBERFEVERSCANDAL Pepsi refused to give those people many and many people turned violent, destroying many of their trucks and even kill a few people. Soon, Pepsi recieved thousands of Lawsuits. It took almost 15 years to dissolve all cases and end the dispute, resulting in millions of dollars lost
  • 10. When they started, they needed a low budget way to increase brand awareness out there.They choose a very simple route.They just went to every single trash can in London and fillled with empty Red Bull cans. This created a perception that there was massive demand for this unkown product,and the rest is history Genius Marketing By Red Bull Today,this Bull is dominating it's niche, is the brand leader in sector,and number one for top of head recognition. Whoever thought up this idea deserves Medal
  • 11. DETTOL Vs SAVLON Many startups now a days feel frustrated why their product is not a success inspite of solving the burning problem of the consumers . A SMALL ST ORY OF DET T OL AND SAVLON IN INDIA DURING EARLY 1990'S
  • 12. Savlon's tagline was "healing without hurting". It hoped for a mega success. The result was completely different . The Savlon launch bombed. Dettol came up with a counter punchline "it hurts when it works" & consumer believe Dettol. In early 1990's Dettol was a household name, the most dominant brand in Indian market. However it is used to have a pungent smell & caused burning sensation. As a child, can recall feeling scared even with the mention of Dettol applied on wound. Savlon got rid of these 2 issues when launched , it had good smell & no burning sensation. It had solved these 2 major problems and as per research was a better germ killer than Dettol. DETTOLVSSAVLON BRANDMARKETINGAND CONSUMERBEHAVIOUR
  • 13. Gillette GILLETTECASESTUDY The Gillette Company has a long history of being 'the first to market...' in its own areas of operation.
  • 14. What “Mach” are we at now with Gillette? They keep adding blades and go from MachX to MachX+1 every few months as if the physics of sound doesn’t matter, isn’t it? GILLETTECASESTUDY
  • 15. • Gillette makes the Guard razor, which accounts for two of every three razor now sold in India • But in 2002, its predecessor the Vector was a massive flop after intense focus grouping with MIT students rather than India residents • 'A-ha moment': Developers quickly learned to better understand the exploding market GILLETTECASESTUDY
  • 16. GILLETTECASESTUDY Gillette did the market research, so what went wrong? Here’s the catch – they didn’t do the market research in India! Gillette tested the product with Indian Students in MIT and hence missed one crucial insight about shaving habits in India. A large part of Indian men don’t have access to running water while shaving, so unclogging the Vector razor isn’t possible. Yeah, a rather face-palm moment for Gillette marketers, for sure.
  • 17. Gillette did the market research, so what went wrong? When Gillette launched its Vector razor in India, however, things weren’t moving at such a high velocity. Gillette did some market research before launching this razor. They found out that Indian men had longer and thicker hair than Americans. So, they included a plastic piece that could slide down in order to unclog the razor while shaving. Vector was launched but didn’t do well. GILLETTECASESTUDY
  • 18. The next time Gillette focussed on the Indian market, they did things the right way. 20 people from their headquarters spent 3,000 hours with more than 1,000 consumers in their homes. The result – Gillette Guard, one of the bestsellers in India. It consisted of just a single blade, to deliver safety rather than a smooth shave, focussing on what Indian men really needed. THAT is the power of doing market research the right way! GILLETTECASESTUDY
  • 19. ANAND KAPUR MBA(TYC) SEMESTER-III Thank You WE WANT T O H EAR FROM YOU!