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Consumer Insights Professor S.J. Grant Spring 2006 BUYER BEHAVIOR, MARKETING 3250.

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Presentation on theme: "Consumer Insights Professor S.J. Grant Spring 2006 BUYER BEHAVIOR, MARKETING 3250."— Presentation transcript:

1 Consumer Insights Professor S.J. Grant Spring 2006 BUYER BEHAVIOR, MARKETING 3250

2 Outline Need for consumer insights Role in product development Message clarity Case: Pepsi One Case: MasterCard Case: Altoids Case: DiGiorno Pizza

3 Need for Consumer Insights Concept of value must be defined in context of what targeted consumers are willing to pay for It is not always clear what features provide value What is level of optimal tradeoff?

4 Need for Consumer Insights Apple introduced the versatile Newton in 1993 But for all its technological advancements, the handwriting recognition software was flawed, and the product flopped Motorola Envoy, launched in 1994, also failed to make inroads with consumers Palm Pilot, an incremental improvement over its predecessors, became a huge success when it was introduced in 1996

5 Need for Consumer Insights Product quality is not just the strength of its attributes Coca-Cola introduced an improved formula after losing Pepsi Challenge taste tests, but consumers rejected New Coke

6 Consumer Insights: Pepsi One Pepsi introduced Pepsi One, a one-calorie cola, in 1998 Addition to line of products: Pepsi, Diet Pepsi, Mountain Dew, Diet Dew, Slice, Mug Pepsi One fits you like a glove. You are viewed by friends as an intellectual and a trendsetter. You go out of your way to learn about new music, fashion, and trends. There's a brainy side of you too. You often pull interesting facts out of your hat and stun people with your worldliness. The same goes for your impeccable taste in music. You also have a spark that lights up the room when you make your entrance. Your smile is magnetic.

7 Case Study: MasterCard There are some things money can’t buy. For everything else there’s MasterCard.

8 Case Study: MasterCard VISA Everywhere you want to be Life takes VISA American Express: Membership has its privileges

9 Case Study: MasterCard Associated with acceptance at 24 million locations Affiliated with 15,000 financial institutions Market share is in mid 20s, about half that of Visa

10 Case Study: MasterCard Consumer insight: Values were changing in a fundamental way in the late ‘90s More emphasis was being placed on family and human relations Material consumption was almost taken for granted

11 Market Shares (% Purchase Volume) 1998 2000 2001 2003 2005 MasterCard 25.50 25.60 27.61 30.7 23.9 Visa 52.25 51.75 50.38 51.4 49.6 American Express 16.30 17.25 16.14 12.3 14.3 Case Study: MasterCard

12 More recent versions of the ad have off-beat humor, irreverence Represent departure from nostalgic, sentimental executions A change in strategy?

13 Males, 20-28, working Smokers Drink coffee, beer Frequent restaurants or carry out Go to movies and clubs frequently Looking for empowerment Case Study: Altoids

14 Drawing on a retro image, Altoids brand is built on the benefit of having “curiously strong” breath- freshening capabilities

15 Case Study: Altoids



18 Case Study: DiGiorno Consumers who enjoy delivery pizza complained of inconsistent carry out/delivery quality Long waits High price Cold when delivered Idea of high-quality frozen pizza met with cynicism

19 Case Study: DiGiorno Pizza, which is sold in supermarket freezer, was positioned against delivery pizza as the frame of reference Higher quality ingredients Self-rising crust Point of difference: “It's like getting a $12 pizza for $5”

20 Kaboom Porcelain Tile & Grout Restorer Foaming bathroom cleaner – uses organic salt as cleaning agent Most women have 4 – 6 products on hand at all times that are used to clean bathrooms Bathroom cleaner Heavy duty Shower/tub/multipurpose Daily shower Toilet Mirror Floor Case Study: Kaboom

21 FREQUENCY OF USE Heavy Duty Specific CLR; Lime Away; Tilex Mildew Heavy Duty General Comet; Tilex Soap Scum Routine (Bi)weekly Shower/Tub: Scrubbing Bubbles Toilet Bowl: Lysol; Clorox Mirror: Windex Floor: Pine Sol; Armstrong Light/Daily Arm & Hammer Clean Shower Tilex Daily Shower SEVERITY OF PROBLEM low high low Kaboom PTGR Case Study: Kaboom

22 Women who clean their bathrooms Bathroom cleaners From the makers of Oxi Clean Target Frame of Reference Point of Difference Case Study: Kaboom

23 Captures most frequently encountered cleaning problems in order of priority. Allows Kaboom to enter consideration set and span heavy duty and routine cleaning segments. KABOOM Shower, Tub & Tile Cleaner Aggressively Cleans: Soap Scum, Dirt, Hard Water Build Up, Calcium & Lime Stains, Rust Stains, Grout Stains Clean Easy. Breathe Easy. Defines brand promise. Suggests no fumes without evoking unpleasant association. Descriptor anchors product in mid- frequency FOR. Borrowed brand equity from Oxi Clean enhances Kaboom’s credibility. From the Makers of Oxi Clean! Case Study: Kaboom

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