Case Study

Case Study On The Bas is o f………

Consumer BehaviorCourse Code: MKT - 451

Submitted to: Kaiyum Hossain

Lecturer

Business Administration

GROUP NO : 2

G roup Members: ID:

Tanvir Ahmed 062200042

Rakibul Hassan Sunny 062200071

Ali Imam 062200026

Md. Belal Hossain 062200125

Md. Ahsan Khan 061200073

Saydatun Nessa Asha 0622001

Submission Date: 07 May 2009

Chapter-3: Market Segmentation

Case One: Watching M&M’s grow

Question1: Do you think that it was a good segmentation strategy for M&M’s to develop a new

version targeting adults?

Answer: At first the company came up with two vital colors as blue and green. Then they

introduced two new companies which are not only physically bigger, but they also expanded

their organization size. This is approximate 55%. They came up with some latest strategy. In

which they made a planned design to appeal efficiently to the adults. For this they replaced the

existing two colors with some special attractive colors. These colors indicate the cheerful or

colorful meaning which is acceptable to the adults. For this they introduced red color instead of

maroon. The blue color is now a version of blue/grey (sky blue). Also the green color is changed

with turquoise.

So we can say that it was a good segmentation strategy for the targeting adults.

Question2: Would M&M’s be better off pursuing a mass marketing approach?

Answer: Mass marketing approach is used for all types of customers at a time. Here company

does not use any segmentation strategy. But the M&M’s company has a target market of adults.

So they should not go for mass marketing strategy. It is not appropriate strategy for them. It has

also some drawbacks as:

Need huge promotional activities

Need intensive distribution

Increasing marketing cost

No target customer

Hard to positioning

Eventually we can say that segmentation strategy is appropriate for M&M’s.

Case Two: Growing the Airwalk market

Question1: To which VALS segment (segments) do you feel this Airwalk advertising campaign

will especially appeal?

Answer: VALS stands for Values and Life Style System which is based on social values and is

adapted as marketing tool. This is a sub segmentation of geo-demographic segmentation. VALS

is focused on eight distinctive segments.

The Airwalk company is campaigned their advertisement for those people who don’t ever

stepped onto skateboard but they want independence and spirit from life. This advertising

campaign will especially appeal for the experiencers segment (one of the segments of VALS).

Because this type of people appreciate the unconventional. They are active, impulsive and

seeking stimulation from the new, offbeat and risky. They spend a high proportion of their

income on fashion socializing and entertainment.

So we can say that the Airwalk company is mainly focused on experiencers segment in their

advertisement campaign.

Chapter-4: Consumer Motivation

Case One: The Product Collection at New Product Works

Question1: Rate three of the new product featured on the link, compare your ratings to those of

previous respondents and explain your ratings in the context of consumer need and motivations.

Answer: The three successful products are as below:

1. Triaminic Cough Thin Strips

Manufacturer: Novartis Consumer Health, Inc.

A convenient way to treat the symptoms of colds in a pocket-size, dissolvable thin film form that

dissolves on your tongue without the need for water or measuring, ensuring an accurate dose of

medicine each time. The portability of this product gives it an edge up on other cold remedies.

2. Windex Multi Cleaner with Vinegar

Manufacturer: S.C. Johnson & Son, Inc

This special ammonia- free formula comes with no harsh vinegar smell, just a pleasant scent.

Windex Multi Cleaner containing vinegar is a versatile cleaning solution that can be used

through out the home without streaking. An added bonus is the special trigger spray that sprays

at any angle. Even upside down. Windex's new multi cleaner looks like a success not just

because of its versatility but the simplicity in getting the job done.

3. Resolve Dual Power Spot Carpet Cleaner

Manufacturer: Reckitt & Colman, Inc

Resolve Dual Power brings together two extremely, effective liquid stain removal agents; a stain

fighter and an oxygen activator. When combined the result is a deep saturation that breakdowns

and dissolves the toughest stains. Oxi Action has been a success on laundry stains. Why not

carpet? It should make for a well chosen partner with Resolve for what the public might seen as

double your money.

The ratings:

Product Name Rating Scale

1. Triaminic Cough Thin Strips 7 10

2. Windex Multi Cleaner with Vinegar 8 10

3. Resolve Dual Power Spot Carpet Cleaner 8 10

These products are successful because of the fulfillment of consumer’s needs and motivations.

As Triaminic Cough Thin Strips is cold and easily hold in a pocket and it can be used without

using water in customer tongue.

Same as Windex Multi Cleaner with Vinegar has a spray holder. So the consumer can easily use

it any where any side any time.

As well as Resolve Dual Power brings together two extremely, effective liquid stain removal

agents; a stain fighter and an oxygen activator.

Question 2: From favorite failures select three of the products featured on the link and explain

why they failed in the context of consumer need and motivations.

Answer: The three failure products are as below:

1. Avert Virucidal Tissues

This Kimberly-Clark product lasted ten months in the test market before it was pulled from the

shelves in Upstate New York back in 1985. The tissue contained vitamin C derivatives and was

the first tissue scientifically designed to kill cold and flu germs when sneezing, coughing, or

blowing your nose into them. Unfortunately for Kimberly-Clark, people didn't believe the claims

and they were frightened by the name.

2. Premier Cigarettes

R.J. Reynolds (RJR Nabisco Inc., subsidiary) spent over $300 million to market its Premier Smokeless Cigarettes. However, the flame for Premier burned a short-lived 5 months after its launch in test markets back in 1988 due to several concerns. Premier was priced at a 25% premium to other cigarettes, but cost was not the greatest issue. The problem was that smokeless cigarettes appealed to non-users-non-smokers!

3. Clairol Look of Buttermilk

Clairol introduced this shampoo in test markets back in 1974 and left many consumers asking just what exactly the “Look of Buttermilk” is anyway.

The Ratings:

Product Name Rating Scale

1. Avert Virucidal Tissues 5 10

2. Premier Cigarettes 3 10

3. Clairol Look of Buttermilk 4 10

These products are failure because they do not fulfill consumer’s needs and motivations.

As Avert Virucidal Tissues is de-motivated the consumers by their name and feature. The consumers do not believe their advertisement at all.

Same as Premier Cigarettes was priced at a 25% premium to other cigarettes, but cost was not the greatest issue. The problem was that smokeless cigarettes appealed to non-users-non-smokers! So it also de-motivates the consumers.

As well as Clairol Look of Buttermilk. It is a shampoo. But the consumers claimed about its name and packaging or outlook.

Case Two: Need – focused definition of business

Question1: Listed and prepared a short summary of the listed each company’s vision and definition of its business.

Answer: The vision and the type of business of the listed company’s is given below:

Company Name Business Vision1. Merck A global research-driven

pharmaceutical companyThe mission of Merck is to provide society with superior products and services by developing innovations and solutions that improve the quality of life and satisfy customer needs, and to provide employees with meaningful work and advancement opportunities, and investors with a superior rate of return.

2. Monblanc N/A N/A3. J&J Consumer Product Company The values that guide our

decision making are spelled out in Our Credo. Put simply, Our Credo challenges us to put the needs and well-being of the people we serve first

Question2: Based on their websites list the major product lines of each of the three companies then describe how each company’s products stem from its definition of the business in which it operates.

Answer: The product lines of the two companies are given below:

Merck:

Vaccines Medicines

MERCK/SCHERING-PLOUGH PHARMACEUTICALS

As the company is a pharmaceuticals company so the product line has a strong relationship with the definition of its business.

J&j:

Baby Care Skin & Hair Care Wound Care & Topicals Oral Health Care Women's Health Over-the-Counter Medicines Nutritionals Vision Care

As the company is a consumer product company so the product line has a strong relationship with the definition of its business.