FORMULATING MARKETING STRATEGY FOR CROSSWORD, AHMEDABAD USING THE CONCEPTS OF THE BOOK ‘CONSUMER BEHAVIOR AND MARKETING STRATEGY’ BY PETER & OLSON

PRESENTATION ENDEAVOR

Crossword in a Nutshell

The Current Status

Current A, C, B, E’s

The Desired Status

Desired A, C, B, E’s

Marketing Strategies & their justification

CROSSWORD IN A NUTSHELL

The Inception of the chain was on 15th October 1992.

A wholly owned subsidiary Company of Shopper's Stop Ltd - India's .The Holding Company inter-alia also acts as a Master Franchisee of the Company.

Crossword, has forty-eight stores, across Mumbai, Bangalore, Ahmedabad, New Delhi, Ghaziabad, Pune, Nagpur, Vadodara, Kolkata, Chennai, Jaipur, Vishakhapatnam and Hyderabad

Positioned as a lifestyle bookstore , crossword encourages serious book buyers in addition to book lovers by way large, spacious, well laid out stores with bright light and cheerful interiors to stay and browse.

CROSSWORD IN A NUTSHELL (CONT..)

OTHER PLAYERS:

Landmark

Om Book Shop

RESPONDENT DETAILS

Sample size: 14(students, a housewife and a school kid )

9 Males; 4 females; 1 kid(5yrs)

CURRENT STATUS.

Crossword enjoys established brand status w.r.t. Landmark.( in Ahmedabad)

Om Book shop Lures the price sensitive customers .

Sales of fiction books is highest followed by children specific.

Crossword Landmark Om Book shop

Week days

Week end

Week days

Week ends

Week days

Week ends

Footfalls 250-300 Upto 500

300-350 Upto 650

100-150

200-300

stores 4 1 1

CURRENT A,C,B,E.

Emotion Joy(7) Love(4) Fear(1) Guilt(2) Anger(1)

Specific Feelings

Warmth(5) Apprecia-tion (8)

Satisfaction(7) Sad(1)

Moods Alert(1) Relaxed (10)

Calm(5) Bored(2)

Evaluation Like(10) Good(9) Favorable (13) Unfavorable(1)

Types of affective responses

CURRENT A,C,B,E

Cognition

TYPES OF PRODUCT KNOWLEDGE.

Bundle of Attributes

Bundle of benefits

Value satisfaction

Crossword

Crossword

Crossword

Large book store

Not been cheated

Satisfied and relaxed

Concentration to read

Authenticity of having original copy of the book

Find all types of books at one place

Branded store

Reader centric ambience

Wisdom + sense of accomplishment

KNOWLEDGE

General knowledge Procedural knowledge

Branded Book store Its free to enter

Has a large collection of books Its free to browse

It also stocks stationery and other items one can gift.

Cash and card, both are acceptable

It is expensive You ought to maintain silence in the store

Visited by people of educated background or having intellectual bent

Non- smoking place

SCHEMA: ASSOCIATIVE NETWORK

Brand

Reliable

Easy to get a voucher or book online

Attracts good crowd

ExpensiveOrganized book store

Find the stuff you need

Easy to find specific books

Quiet

Large collection

Find books one needs

Sense of freedom

Self help store

Everyone busy reading

boringHuge

Good ambience

Gives concentration

to read

Colorful/ cheerful

Lots of toys

Find more kids to

play with

Can’t go in groups

MEANS END CHAIN FOR CROSSWORD

AbstractAttributes

ConcreteAttributes

Functional consequence

Psychosocial Consequence

Instrumental value

Terminal value

Branded book store

Expensive Good to visit often Inspires to read Ambitious(to buy) Wisdom

Convenient Well situated Approachable Value for time Logical/ responsible Sense of comfort

Huge Loads of books More choices Satisfied Cheerful and independent

Sense of accomplishment/ pleasurable

Colorful/ cheerful Lots of toys Get to play Enjoyment Cheerful and independent

Pleasurable/ happy

Huge book store Large section for kids Informative Learning experience for children

Responsible/ sincere(honest)

Sense of accomplishment/ taking care of family/ happy

Book store BOOK STORE!! Intense environment Boring Responsible (not disturb other)

True friendship

Book store Self help No one disturbs Freedom Independent/ imaginative/ capable

Freedom/ pleasurable/ wisdom/ self respect/ happiness

Huge book store Place to read without intervention & has a quiet environment

Find books of choice to sit and read

Can’t go for referring a book in a group

Self controlled -

Attributes Consequences Values

BASIC MODEL OF CONSUMER PRODUCT INVOLVEMENT

Consumer characteristics•Serious buyers

•Book lovers•Overall all backgrounds and

demographics

Product characteristics•Expensive•Reliable

•Well estb. Brand•Assures service quality ( ambience+ staff+ books

availability+ service recovery

Situational context•To gift

•For mood change•To buy•To read

•To hang out•Accompany some

•Urge to visit while passing by

Intrinsic self-relevance

•Worth visiting•Happy•relaxed

Situational self relevance

Promotional offers+ Need based

InvolvementHigh involvement

•Branded book store

•Self help•Quiet•Huge

Interpretation & Integration processes

CONSUMER’S COGNITIVE PROCESSING MODEL INVOLVED IN

INTERPRETATIONExposure to environmental info.

Reference, outlets (accidental), print media

Interpretation processPreconcious + focal attention

Comprehension: Highly automatic, deep, elaborate,

and greater recall

K,M,BIt has a huge collection;

Most favorable;Expensive yet reliable

Integration processPositive attitude;

Decision to make a visit

BehaviorMake a visit, recommend +

revisit

Expensive , reliable, worth visiting

Cognitive process

FISHBEIN’S MODEL.

Crossword Ao=51

Collection of books &

stationery

Store layout , interiors

Pricing

e1=+3

e2=+3

e3=0

b1=8

b2=9

b3=8

LandmarkAo=23

Collection of books &

stationery

Store layout, interiors

Pricing

e1=+2

e3=+1

e2=0

b1=8

b2=7

b3=8

Score:Crossword: 51Landmark: 23

Om Book shop: 18

EFFECT OF INVOLVEMENT AND PRODUCT KNOWLEDGE.

High involvement

High knowledge

BASIC MOTIVATION Influence of reference groups, need based visit; believe that they’ll find

what they’re looking for

END GOAL Feeling satisfied , relaxed, happy after visiting the store

GOAL HEIRARCHY find what they were looking for, found it worth spending time

CONSIDERATION SET Landmark, Om book shop.

CHOICE CRITERIA Affect referral, important person, works best!

DECISION HEURISTICS Source credibility, goal satisfaction.

DECISION PROCESS Limited problem solving(moderate)

COMMON BEHAVIOR SEQUENCE

CONSUMPTION STAGE TYPES OF BEHAVIOR EXAMPLES

PRE PURCHASE Information contact Reference groups, Ads(print)

Funds access Carry cash or just prefer to walk in with a credit/debit card

PURCHASE Store contact Locate crosswordJust travel (if known)Enter the store

Product contact Search for the item(book, stationery etc).Sit and readGo to the billing counter

Transaction Exchange available funds to exchange and exit.Or exit without purchase

POST PURCHASE Consumption & Disposition

Read bookGift itInventory it for future referencerevisit

Communication Recommend it to others.

APPROACHES TO INFLUENCING OVERT CONSUMER BEHAVIOR

consumers want to relax, satisfy their need, come to read, and buy

influences their repeat visits, Spread of WOM, Purchase

influence by way of warmth in the atmosphere which leads to joy of customer & creates rich KMB’s

stimuli placed, comfortable seating, quiet atmosphere with light background music, clear signage

Can be taken a note of by way of sales and ethnographic systems such as surveillance systems

Avg time spent : 1-3hoursvisiting frequency: once in every two weeks/ once a month

ENVIRONMENT

SOCIAL ENVIRONMENT

Macro & micro social environmental factors

MACRO SOCIAL FACTORS

PARTICUALRS MICRO SOCIAL FACTORS

Culture Indian Family

Sub culture Gujrati, ahmdavadi, IIM-A ( intellectual crowd), other student crowd influencing and encouraging reading habits.Overall culture adaptable yet rigid with values.Stingy, look for value for money and seek high utility in purchase.

Friends

Social class High and middle class, young professionals. Teachers

PHYSICAL ENVIRONMENT

MODEL OF CULTURAL PROCESSES

Cultural meaning in social & physical environment

Cultural meaning in CW is enhanced

RitualsAcquisition (CW adopted)

Possession (purchase)Grooming: influence others

Nurture: influence from others

Cultural meanings in consumers

Mkting strategies: stores like CW ,

Landmark

Fashion system

Other institutions: Educational etc do

influence the culture

adapt to the new culture Be a part of the society, to gain acceptance

DESIRED STATUS.

To increase purchase along with footfalls.

Increase revenues from current level by at least 25%

Increasing purchase of books other than fiction and books for children.

DESIRED A,C,B,E’S

TYPES OF AFFECTIVE RESPONSES

EXAMPLES

Emotions Love and joy

Specific feelings Appreciation and satisfaction

Moods Relaxed

Evaluations More favorable and liking

DESIRED K, M, B’S

VALS™ FRAMEWORK & SEGMENTS

Score details:

Innovators : 3/6

Strivers 2/6Experiencer:

4/6Achiever:

2/6Makers: 1/6

Person Segmentation

Situation segmentation

Person/ situation segmentation

Large book store, Users are 18-40yrs of age

Someone to relax and read misses to enjoy a coffee as CCD is quite expensive.

Students cant afford to discuss in groups

Coffee from vending machine is preferable; place for group discussion is preferable.

Benefit segmentation

to relax and read without compromising

comfort

Product Perception Segmentation

Brand will enjoy high usage, and a perception of a more favorable liking.

Behavior segmentation:

The brand will gain more favorable attributes due to addition of new KMB’s

Person situation segmentation

BRAND LOYALTY AND USAGE RATE

Brand Loyalty

Light usage

Variety seeking

Heavy Usage

BEHAVIOR & ENVIRONMENT

Behavior: Buy, repurchase and recommend Crossword, participate.

Environment:

New seating arrangement

More in-store advertising

Newspapers advertisements.

Coffee Vending machine

Juke Box for inventory and book search for interactive marketing in-store along with feedback initiative.

CONCEPTUAL MODEL OF COGNITIVE PROCESSING OF

PRICE FORMATIONPrice information: credit data(become a

CW member by paying 1000/-

Attitude ( positive)or experiential

Integration( will compare price of membership and its details and seta trade off for price v/s benefits and

advantages

comprehension( comprehension of engaging customer as a part of CW)

Share information at point of sale through a visual card(small leaflet)

Will engage as a CW Member

Environment

Affect & cognition

Behavior

AN EXPECTANCY DISCONFIRMATION APPROACH TO SATISFACTION

PREPURCHASE EXPECTATIONS

Large store, printed price, large collection,

Reader centric ambience

POST PURCHASE PERCEPTIONS

Large well lit store, with a soothing environment coupled with crowd to inspire reading instict.Positive

DISCONFIRMATION(11)

Neutral(1)Negative (2)

SATISFACTION

COMMUNICATION PROCESS FOR PROMOTION

MECCAS MODEL

Driving force

Value orientation of ad

Leverage point

Hook connecting tangible attributes and

consequence to intangible value and

goal.

Consumer benefits

Verbal or visual key benefits.

Message elements

Communication of brand attitude in ad

Executional framework

All details of finished ad including model, setting, situation, clothing, script,

theme.

Values

Psychosocial consequences

Functional consequences

Attributes

READ WITHOUT COMPROMISE

CENTRAL ROUTE TO PERSUASION

exposure to the persuasive communication of CW Membership and introduction of vending machines

Persuasion

Brand attitude:+ve

Purchase intention: will be encouraged

comprehension

Deeper thoughts due to consequences ( comfort without compromise)

Attention

Higher involvement with message leading to further involvement with store

JUSTIFICATION

Analysis of consumer vulnerability

Schema

Other facts

AN ANALYSIS OF CONSUMER

VULNERABILITY

buy regularly

never buy

buy occasionally

dislikeNeutralLike

loyal to brand (6)loyal to brand (6)

(8) occasional buyers but not vulnerable they like our brand but do not buy. due to price sensitivity.(8) occasional buyers but not vulnerable they like our brand but do not buy. due to price sensitivity.

SCHEMA: ASSOCIATIVE NETWORK

Brand

Reliable

Easy to get a voucher or a book, online

Attracts good crowd

ExpensiveOrganized book store

Find the stuff you need

Easy to find specific books

Quiet

Large collection

Find books one needs

Sense of freedom

Self help store

Everyone busy reading

boringHuge

Good ambience

Gives concentration

to read

Colorful/ cheerful

Lots of toys

Find more kids to

play with

Can’t go in groups

OTHER FACTS

Landmark is a renowned brand backed by TATA group and with its recent establishment in the city it has equivalent no. of footfalls due to in-store presence with Westside.

Buying books is seen as worth treasuring by only 33.33% of the respondents.

Crossword enables to read but endeavors to buy are few.

Book authenticity is not top of the mind criteria, book content is

OTHER FACTS (CONT…)

THANK YOU.

Reasons to not purchase Reasons to purchase

Online availability Purchase intention : gift

Free book reading in store Worth treasuring

High prices Repetitive reading required

Pirated version/counterfeit books in market are available

Good quality of paper vis-a-vi street hawkers and other local book stores

One time stories are not preferable to be bought

To buy for passing time during traveling

Library memberships Imposed reading

Thank you!