ASSIGNMENT

PGDM BATCH-2019-2021
Academic session 19-21
Term-3
Type-Midterm
Subject- Consumer Behaviour

Name-Abhishek Kumar Tyagi Faculty Name- Dr. Arpita Srivastava

Section – D E-mail – [email protected]
GM-19008 Phone no: - 9868403547
PGDM-19248 Date - 30ND March 2019

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Case study-1
Factors affecting Consumer Behavior Martin Incorporation was a company carrying business
in cosmetics and perfumes. They were not following the marketing concept and were
catering to a target market which was using their products. In other word, they only
concentrated on what they would make, and did not bother about changes in preference of
their target market. They were later joined by Mr. Ash, a marketing graduate who advised the
company regarding the changing consumer preferences, and the changes that were necessary
to be incorporated in the product. He emphasized upon the income factor and social factors
only. He modernized the product to a great extent and invested about 30 lakhs in new
packaging, etc. Even after six months of these changes brought about by him, the company
did not seem to have a proportionate increase in sales. The Assistant Manager and the
Product Manager were not happy with the changes, and thought that although an effort has
been made in the right direction, some important factors concerning consumer behavior had
been neglected.

Q.1-Do you agree with the Assistant and Product Managers, and why?
Ans-1
Yes, I agree with the Assistant & Product Manager that efforts were made in the
right direction but many elements affecting consumer behavior were ignored.
The following elements were:-
The Company was using the product concept of marketing which was outdated in Today’s
scenario as now producers manufacturer product that match consumer’s demand, taste and
preference .Therefore, Mr. Ash should have focused on the marketing concept to produce
and market products accordingly. The target audience was limited to the existing customers
of the company .Various new markets must be explored to increase sales. Effective targets
marketing is essentials to promote and position the product effectively in the market
For example- Grooming Products for men, Sales and Chemicals free cosmetics for babies,
Organic and costomics for women
The market for cosmetics was not effectively by segmented Mr. Ash cosmetics market can
be segmented effectively by dividing the market into group which are homogenous within
and heterogenous among themselves on the basis on their age, gender, occupation
Etc.
For Example-Market can be segmented into
Working women, Housewife, teenage girls, Daily consumers, Beauty parlor, Film Industry
Rich people, Middle class people, Low income group
While attention was paid to income and social factors many personal factors such as Age
Occupation, Lifestyles personality of a consumer were neglected.
For Example-
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Age-working women elderly women, Teenage girls all have different needs
Income-The rich pay more attention to how they look than people with less income
Occupation-A house hold has simple beauty needs as she stays at home most of the time
while a working lady has more intensive beauty needs as she goes out of the home every day
and has to look presentable in the office
Personality- Traditional women and modern women both have different needs. Some prefer
expensive perfumes while some are use natural fragrances like “it”
Attitude-People have different attitudes towards chemicals in beauty products .Some prefer it
while some dislikes it and prefer herbal organic products
Lifestyle-While urban people make use of deodorants and perfumes to smell goods .Rural
population prefer use of soaps, sandalwood and it to smell good
Keeping the income factors in mind no changes were made in products quantities i.e.
small units of previous products .keeping in mind the social factors no efforts were made
to use opinion leaders like celebrities which would have been more effective in
influencing sales than change in products packaging
Existing products were modernized while no attention was paid to new product development
for new potential markets in cosmetics industries.
For Example-Grooming products for men
No efforts were made to advertise the products to targeted audience or re-position the brand
according to the changing customer taste and preferences. No offers, discounts or sales
promotion activities were carried out by Mr. Ash to boost sales

Q.2- What other factors, if any, could have been considered? Suggest a comprehensive
plan for changing Consumer Buying Behavior.
Ans-2
Other factors are:-
 Age- Babies Teenagers Middle Aged people and elderly all have different needs and
requirement related to cosmetics and beauty products. Therefore the target audience
could have been segmented on the basis of age pf consumers

 Occupation-Working ladies v/s Housewife. Clerical; staff v/s top management ,

Daily consumer vs. consumer from fashion industry
While a household, a normal clerk and daily consumer may have nominal needs and
demand basic products working ladies, Directors and C.E.O’s of a company.
Makeup artist’s beauticians, film stars may have specific needs and high demand for
beauty

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 Products. Products could have been designed and developed for one or few segments
on the basis of their occupation.

 Standard of living-Rural vs. Urban people, low income group vs. High income group
While rural people and low groups may use of soaps and traditional products, urban
people and high income group are more inclined towards expensive beauty
products .Different products could have been developed for both the segments and
different pricing strategies could have been followed

 Perception & Attitude-Chemicals vs. organic /herbal products

While some people perceive beauty products negatively due to chemicals ingredients
in them some people recommend them, Make share for both chemicals and organic
products could have been analyzed and the more profitable market could have been
targeted

 Involvement-Normal consumers Film industry

Consumer segment like makeup artists, beauticians, film starts will have
involvements in buy beauty products than normal consumers, Therefore depending
upon the target market packaging and labeling should have been made

 Culture-Due to different culture norms regarding appearances laid down by different

religions, mens and women of a religion dress up and make use of specific cosmetics
products./For Example Hindu, Jain & Bengal women use sindoor and bindi while
Muslims do not. Sikh men don’t use shaving products as they are not allowed to cut
hair .Many Jain men and women use white tikka
.
 Operation Leaders-celebrities and doctors act as effective opinion leaders for
cosmetics and beauty products which could have been used and their impact on the
sales, brand value and price could have been raised

 Personality and self-concept-Alpha males vs. passive males. feminism vs.

tomboyish girls
While alpha males and feminism girls may use and encourage use of beauty
products while massive males and tomboyish girls may like to stay raw and refrain
from using other beauty products.

Comprehensive plan for changing Consumer Buying Behavior can be followings:-

1. Identify Customer Expectations. Interview customers and understand, from their

perspective, what they are expecting and what’s driving it. This will help you to
educate and prepare your sales reps to adapt to and address the changing behaviors
among their clients. But don’t just do this once — rather, create an ongoing dialogue
to keep your finger on the pulse of your customers and their demands

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2. Engage Prospects. Create conversations with aspirational customers, and explore
what they value about the relationships they have with your competitors. With the
potential for just a little business, it will benefit you to try to understand their ideal
customer- vendor relationship and how you can best present your value proposition to
meet their needs.

3. Evaluate Processes and Metrics. Identify which process and metric changes are
necessary for you to effectively monitor and respond to changes in buyer behavior. A
recent statistic indicates that the amount of face time sales reps spend in front of
customers today versus three years ago is approximately 40% less. If your company is
using the same processes as three years ago, you might question whether what you
are doing is adequate or if you are engaging your customers properly.

4. Mobilize Your Leaders. Work with line leadership in a planning session to help them
understand and address the changing business environment. Lay out a timeline for
behavior in the past, how you are addressing the behavior now, and what you will be
expected to change in the future.

5. Look to the Future Now. Identify goals for the future and talent skills necessary to
successfully achieve those goals. Be willing to test trends, and be on the forefront
rather than constantly playing catch up and watching from behind. Take a proactive
posture that promotes interacting with clients and prospects to not only stay in touch
but also anticipate future changes.

Some behaviors are short-lived or cyclical, and you don’t want to chase every
gimmick and fad. However, it is unlikely that the influence of social media and the
opportunities to converse with customers will diminish anytime soon. Don’t ignore
or dismiss what potential buyers find online about your product or business.
Acknowledge customers’ research and build on it, tailoring your market proposition
And pitch to build on their online intelligence gathering and show them clearly and
confidently how buying from your company will be the best choice for them

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Q2)
Collect 2 latest Print Advertisement (Refer English News Paper and Paste Images of
News Paper Advertisement) in which marketer are targeting various stages of Family
lifecycle for their product and services and explain how they are highlighting the
benefits of their product and services vis a via the current pandemic of CORONA
VIRUS.
Ans-2
1-First print advertisement

First Advertisement
“LIFEBOY”

In this advertisement of “LIFEBOY SOAP” the markets have targeted the Full nest 1 and
Full nest 2 which are the stages that lies within Family Life Cycle

Full Nest 1 & 2 Families in the Full Nest 1 classification have more children in the home
than adults. The kids in the house are all younger than 6, the parents rely primarily on credit
for purchases and buy mainly household necessities that people purchase home-related items
the most during the Full Nest 1 stage. Full Nest 2 families have children 6 and older. The
house is still dominated with children, but these individuals tend to have a little more control
over their finances, as wives who took off work to raise children are likely returning to work
around this time. Necessities, such as groceries and children's clothing, are still the main
purchases in these homes.

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Life boy is a leading brand & has established itself well enough in the sanitizing market and
have built its reputation through the products they provides targeting whole family no matter
of what age and of what gender , It has been a successful brand in winning people believe and
their trust.

If we match or correlate the product and brand with the current scenario of Global epidemic
of “CORONA VIRUS” then this brands fits the best accordingly.

The motive behind creating this product of this brand was SANITIZING and KILLING
LIFE THREATNING GERMS” which fits perfectly in today’s scenario and happenings

If you look at the advertisement you will find that all four members of the family are looking
inside their bathrooms or washrooms with a smile and sparkling eyes with hope that this
products supports you by giving you help, strength or encouragement against the Global
epidemic.

As the government issued the order of washing your hands at least 6 times in a day with the
help of soap and sanitize well during the day.

The brand appropriately fits into the situation and is able to connect as well as able to win
trusts of the people.