Final presentation for MKTG607: Consumer Behaviour

1. [MKTG607] CONSUMER BEHAVIOUR
SMU MBA Class of ‘14

2. CATEGORY SEGMENTATION
DISTRIBUTION CHANNELS
[MKTG607] CONSUMER BEHAVIOUR
Secondary Research
whiskey
brandy
vodka
liqueurs
7.9%
$34.4 M
Dept stores & duty-free
On- trade
Hyper-
marts
56%
23%
Liqueur liˈkər,liˈk(y)o͝or/
alcoholic beverage made from a distilled spirit
that has been flavoured & bottled with sweeteners

3. [MKTG607] CONSUMER BEHAVIOUR
Secondary Research
Irish whiskey, cream based
$50 (700mL)
33.1%
Various flavours $46 (700mL)
7.0%
Mexican coffee, rum based
$56 (700mL)
4.1%
German, 56 herbs & spices
$55 (700mL)
3.7%
Italian, almond flavoured
$66 (500mL)
3.3%

4. [MKTG607] CONSUMER BEHAVIOUR
Focus Groups
PARTICIPANTS
MODERATOR
♂ ♀
RECRUITMENT
GROUP MAKE-UP
INCENTIVE
free drinks at Thirteen @ One George
five of the same gender in each group
each member recruits one participant who must not know each other or the moderator

5. [MKTG607] CONSUMER BEHAVIOUR
Focus Groups
Q6: Is there anything else you would like to say about your experience with buying and consuming liqueurs?
Q1: What is your favourite brand of liqueur?
Q2: If you could use just one sentence to summarise your experience with liqueurs what would that be?
Q3: Who and what in particular have influenced your liqueur purchases?
Q4: What is it that you enjoy the most about liqueurs?
Q5: Describe the perfect time or occasion for when you will be indulging in liqueurs.
ENGAGEMENT QUESTIONS
EXPLORATION QUESTIONS
EXIT
QUESTION

6. [MKTG607] CONSUMER BEHAVIOUR
Focus Groups
“… I would buy what I want to try for myself …”
“… my friends told me the mint chocolate one tastes good so I went to buy one …”
“… I spend quite a lot of time looking at whatever is available as there are so many to choose from …”
“ … I bought it just because the bottle looks nice …”
“ … Baileys has the same bottle shape for all flavours …”
“ … Kahlúa is different due to its coffee flavour …”
“… they have Christmas twin packs which I like to buy as gifts when I go home …”
“… I buy from DFS when I’m overseas …”
“… I’m a big fan of Jägerbombs …”
“… nothing too expensive & also you can’t store them for long once they are opened …”
“ … it is always cheaper to buy at the airports …”
“… I can always compare prices in the store …”
“ … I think girls like to drink Baileys as the alcohol is not too strong …”

7. 1
3
2
KAHLÚA VERSUS COMPETITORS
CONSUMER MOTIVATION
CONSUMER ABILITY
CONSUMER OPPORTUNITY
Ability of brand to create personal relevance for consumers: Kahlúa’s distinctive coffee taste & flavour profile often cited as the most important benefit
Consumers’ ability to accurately interpret product information: Kahlúa’s packaging design conveys product attributes such as taste, size & origin
Ability of brand to ensure ease of availability of its products: Based on site surveys, Kahlúa is readily available in mass channel department stores & on-trade outlets
Ability of brand to reduce consumers’ perceived risk: Most focus group participants were thus unaware of accolades won by Kahlúa for taste & quality
Fit of brand to consumers’ cognitive style: Kahlúa’s packaging is perceived as dated & un-innovative as compared to other brands
Ability of brand to reduce purchasing, usage or learning time: Liqueurs an ingredient in savoury desserts or cocktails; recipes are easily retrievable
Ability to of brand inspire felt involvement in consumers: Unlike category leader Baileys, focus group participants did not cite a strong emotional connection or heart loyalty for the brand
Acceptance of brand by its target demographics (age, income): Neither gender segment showed a stronger preference for Kahlúa; both found the brand to be reasonably priced
Ability of brand to overcome distractions & other barriers to purchase: According to focus group participants consumption occasions for Kahlúa are scarcer than that of category leader Baileys
[MKTG607] CONSUMER BEHAVIOUR
Focus Groups

8. [MKTG607] CONSUMER BEHAVIOUR
Surveys
QUESTIONS
RECRUITMENT
60 participants split equally by gender
Q1: Measuring total unaided awareness
What brands of liqueurs have you seen or heard of?
Q2: Measuring total brand awareness
Please select all the brands of liqueurs you have ever heard of, even if you’re not very familiar with them.
Q3: Measuring trial
Please select all the brands you have ever tried.
Q4: Measuring regular usage
Please select all the brands you drink regularly nowadays.
Absinthe Green
Campari
Giffard
Lillet Blanc
Amaretto Disaronno
Cointreau
Grand Marnier
Midori
Baileys
Drambuie
Heering
Pimm's No.1
Bols
Frangelico
Jägermeister
Sourz
Bigallet China China
Galliano
Kahlúa
Tia Maria

9. [MKTG607] CONSUMER BEHAVIOUR
Surveys
QUESTIONS
Q5: Thinking about all these different brands of liqueurs you have tried, please select the one statement which best describes your attitude to each of these brands:
REJECTORS
Concept
Product
“I’ve never tried this brand, not do I want to”
“I’ve tried this brand but I won’t drink it again”
AVAILABLE
Unaware
Noticed
“I’ve never heard
of this
brand before”
“I’ve heard of this brand but don’t know much about it”
ACCEPT
Interested
Experimenters
“I have never tried this brand but I would like to”
“Not a brand I tend to drink, but I’ll have one sometimes”
ADOPT
Occasionals
Regulars
“It’s a brand I drink, but I’d consider others first”
“It’s one
of my favourites along with others”
ADORE
Loyals
Staunch
“It’s almost always the first brand I’ll consider”
“It’s the only
brand
I drink”

10. [MKTG607] CONSUMER BEHAVIOUR
Surveys
QUESTIONS
Q6: Thinking about all these different brands of liqueurs you have not tried, please select the one statement which best describes your attitude to each of these brands:
REJECTORS
Concept
Product
“I’ve never tried this brand, not do I want to”
“I’ve tried this brand but I won’t drink it again”
AVAILABLE
Unaware
Noticed
“I’ve never heard of this brand before”
“I’ve heard of this brand but don’t know much about it”
ACCEPT
Interested
Experimenters
“I have never tried this brand but I would like to”
“Not a brand I tend to drink, but I’ll have one sometimes”
ADOPT
Occasionals
Regulars
“It’s a brand I drink, but I’d consider others first”
“It’s one
of my favourites along with others”
ADORE
Loyals
Staunch
“It’s almost always the first brand I’ll consider”
“It’s the only brand I drink”

11. [MKTG607] CONSUMER BEHAVIOUR
Surveys
QUESTIONS
Q7: Starting with [brand], how would you rate [brand] on the following attributes on a scale of 1 (least) to 10 (most):
Is a brand that I love (felt involvement)
Tastes better than other brands (taste)
Is of better quality than other brands (quality)
Has a more distinctive image than other brands (distinctiveness)
Is a brand that I can enjoy anytime & anywhere (consumption occasions)
Is worth what I pay (value)
Q8: How important are these six attributes are to you in a liqueur brand?
•Is a brand that I love
•Tastes better than other brands
•Is of better quality than other brands
• Has a more distinctive image than other brands
•Is a brand that I can enjoy anytime & anywhere
•Is worth what I pay Please indicate your response by allocating 120 points across these six attributes, allocating more points to the attribute you consider more important.

12. [MKTG607] CONSUMER BEHAVIOUR
Surveys
BRAND
TOP OF MIND
UNCUED
CUED
Amaretto
0
0
12
14
6
15
Baileys
26
30
30
30
30
30
Bols
2
0
27
11
24
25
Kahlúa
0
0
22
20
27
28
Jägermeister
2
0
30
30
29
27

13. [MKTG607] CONSUMER BEHAVIOUR
Fishbien analysis
FELT INVOLVEMENT
DISTINCTIVENESS
VALUE
TASTE
OCCASIONS
QUALITY
RELATIVE IMPORTANCE OF VARIOUS LIQUEUR ATTRIBUTES OF MALES VERSUS FEMALES

14. ♂
[MKTG607] CONSUMER BEHAVIOUR
Fishbien analysis (Males)
FELT INVOLVEMENT
DISTINCTIVENESS
VALUE
TASTE
OCCASIONS
QUALITY
PERFORMANCE OF KAHLÚA (119) VERSUS JÄGERMEISTER (154)

15. ♀
[MKTG607] CONSUMER BEHAVIOUR
Fishbien analysis (Females)
FELT INVOLVEMENT
DISTINCTIVENESS
VALUE
TASTE
OCCASIONS
QUALITY
PERFORMANCE OF KAHLÚA (109) VERSUS BAILEYS (175)

16. [MKTG607] CONSUMER BEHAVIOUR
Surveys
HYPOTHESIS 1
HYPOTHESIS 2
HYPOTHESIS 3
STATEMENT OF HYPOTHESIS
Kahlúa is unable to inspire a strong sense of felt involvement or emotional connection with consumers
Kahlúa is perceived as dated, un-innovative & non- distinctive as compared to other brands
The consumption occasions for Kahlúa are scarcer & less well-defined than category leader Baileys
PERTINENT OBSERVATIONS
FROM SURVEY
Both genders reported low felt involvement scores; a larger gap to Baileys was observed for females than for males
Felt involvement is the most important attribute for female respondents
Both genders scored Kahlúa the lowest amongst all five brands in scope in terms of having a distinctive image
Distinctiveness is the most important attribute for male respondents
The gap between Baileys & Kahlúa in terms of occasion scores in Q7 is not significant
Both genders scored Kahlúa the lowest when asked if it was ‘a brand that could be enjoyed anytime & anywhere’
VALIDATION OF HYPOTHESIS
Data validates hypothesis
Data validates hypothesis
Data validates hypothesis

17. [MKTG607] CONSUMER BEHAVIOUR
Recommendations
Packaging re-design for a more distinctive & contemporary look for enhancing on-shelf presence; seasonal, limited- edition variants
Strong & distinctive brand persona aided through consistent communications, clear messaging & clever experiential or partnership strategies
No clear evidence to show that neither gender segment exhibits a stronger affinity or brand loyalty towards Kahlúa
Kahlúa performs less well on attributes that are commonly important to both males and females
♂ ♀
friendship
taste
& flavour
Mexican
heritage

18. [MKTG607] CONSUMER BEHAVIOUR
Recommendations
One-word strapline ‘delicioso’ (Spanish for ‘delicious’) to sum up everything Kahlua is trying to convey
Witty broadcast or print ads featuring cocktail ideas, new consumption occasions, celebrities

19. [MKTG607] CONSUMER BEHAVIOUR
Thank you