Its a Study of Consumer Behaviour and Marketing Strategy for Bru Coffee (Ahmedabad)

1. MARKETING STRATEGY FOR “BRU” COFFEE , HINDUSTAN UNILEVER LIMITED USING FRAMEWORK OF THE TEXT CONSUMER BEHAVIOR AND MARKETING STRATEGY BY PETER & OLSON FOR AHMEDABAD MARKET “Happiness begins with Bru” Presented By: NIKITA SANGHVI SOURCE: CONSUMER BEHAVIOUR AND MARKETING STRATEGY, 7TH Edition, By J. Paul Peter And Jerry C. Olson (2010), TMH Education Pvt. Ltd.

2. FLOW OF PRESENTATION Step 1: Current Status of Product Step 2: Current acbe’s (Components of WOCA) (Section 1 to Section 4) Step 3: Desired Status of Product (With Reason) Step 4: Desired acbe’s Step 5: Marketing Strategy for Creating Desired acbe’s (Section 5) Step 6: Justification (Why do you think whatever data has been given will give the desired status of product?) BATCH 2009-2011 STEVENS BUSINESS SCHOOL 2

3. CURRENT STATUS OF BRU Bru is a power brand from the HUL's stable. A brand which pioneered the instant coffee category in Indian market in 1969 Bru is the market leader in coffee segment with a value share of 49.6 %. Bru is positioned on the theme of happiness. The brand has the tagline " Happiness begins with Bru". The positioning and communication has been consistent with the brand's promise of kickstarting one's day with a Bru. Annual Consumption of Coffee: 1 lakhtonne BATCH 2009-2011 STEVENS BUSINESS SCHOOL 3

4. CONTENT(Current Schema) A Perspective on Consumer Behaviour Affect and Cognition and Marketing Strategy Behaviour and Marketing Strategy The Environment and Marketing Strategy BATCH 2009-2011 STEVENS BUSINESS SCHOOL 4

5. SECTION 2 AFFECT AND COGNITION AND MARKETING STRATEGY BATCH 2009-2011 STEVENS BUSINESS SCHOOL 5

6. Exhibit 3.2 TYPES OF AFFECTIVE RESPONSES BATCH 2009-2011 STEVENS BUSINESS SCHOOL 6

7. Exhibit 3.2 BATCH 2009-2011 STEVENS BUSINESS SCHOOL 7

8. Exhibit 3.5 BATCH 2009-2011 STEVENS BUSINESS SCHOOL 8 Cognitive Processes In Consumer Decision Making

9. ENVIRONMENT Advetisement (33.33%), Salesman (33.34%), Family(33.34%), COGNITIVE PROCESS INTRPRETATION PROCESS ATTENTION and COMPREHENSION Sales promotion(33.33%), Jingle(66.67%) MEMORY NEW KNOWLEDGE, MEANINGS AND BELIEF New Ingredient (33.33%), Bitter Taste (33.33%), Nice Aroma (33.34%) STORED KNOWLEDGE MEANING AND BELIEF INTEGRATION PROCESS ATTITUDES AND INTENTIONS DECISION MAKING Favourable(66.67%) , Experiment (33.33%) Purchase- 1007% 9 BATCH 2009-2011 STEVENS BUSINESS SCHOOL

10. Exhibit 3.7SITUATION ONE SCRIPT OF APPROPRIATE PROCEDURE FOR BUYING A BRU COFFEE BATCH 2009-2011 STEVENS BUSINESS SCHOOL 10

11. Exhibit 3.7SITUATION TWO SCRIPT OF APPROPRIATE PROCEDURE FOR BUYING A BRU COFFEE BATCH 2009-2011 STEVENS BUSINESS SCHOOL 11

12. Exhibit 3.7SITUATION THREE SCRIPT OF APPROPRIATE PROCEDURE FOR BUYING A BRU COFFEE BATCH 2009-2011 STEVENS BUSINESS SCHOOL 12

13. Exhibit 3.8 BATCH 2009-2011 STEVENS BUSINESS SCHOOL 13

14. Level of Product Knowledge More abstract Less abstract BATCH 2009-2011 14 STEVENS BUSINESS SCHOOL Exhibit 4.1

15. BATCH 2009-2011 STEVENS BUSINESS SCHOOL 15 Exhibit 4.2 TYPES OF PRODUCT KNOWLEDGE

16. Means-End Chains OF PRODUCT KNOWLEDGE BATCH 2009-2011 STEVENS BUSINESS SCHOOL 16 Exhibit 4.4

17. Exhibit 4.6 MEANS END CHAIN DIRECT ELICITATION FREE SORT TASK TRIAD TASK BATCH 2009-2011 STEVENS BUSINESS SCHOOL 17

18. DIRECT ELICITATION Product Form Price Ingredients Brand Size Availability Variant Packaging BATCH 2009-2011 STEVENS BUSINESS SCHOOL Exhibit 4.6 18

19. Exhibit 4.6 BATCH 2009-2011 STEVENS BUSINESS SCHOOL FREE SORT TASK 19

21. POD : Availability, Strong AromaBATCH 2009-2011 STEVENS BUSINESS SCHOOL 20

22. Exhibit 4.6 KEY ATTRIBUTES CONSIDERED BY CONSUMERS Aroma Flavour Availability BATCH 2009-2011 STEVENS BUSINESS SCHOOL 21

23. LADDERING - FLAVOUR You said that the Flavour in Coffee is important to you in deciding what brand to buy? Why is that? Because I like Strong and Dark Coffee. (Psychosocial Consequences and Concrete Attribute) Why is it important to have Strong and Dark Coffee? Because it keeps me awake and alert and so that I don’t feel sleepy while doing CB Course Project . (Functional Consequences) Why is it important to remain awake and alert? So that I can work passionately. (Psychosocial Consequences) BATCH 2009-2011 STEVENS BUSINESS SCHOOL Exhibit 4.7 22

24. Exhibit 4.7LADDERING - FLAVOUR Why is it important to be passionate about work? Because of this I’ll be able to work efficiently and give better result. (Instrumental Value) Why is it important to give better result? So that everybody will appreciate my work. (Psychosocial Consequences) Why is it important to get appreciation from everyone? Then I’ll feel I am on the top of the world. ( Terminal Value) Why it is important to feel that? Because that will make me feel confident about myself. ( Psychosocial Consequence) Why it is important to feel confident about yourself? That’s it !!! ………………. BATCH 2009-2011 STEVENS BUSINESS SCHOOL 23

25. Exhibit 4.7LADDERING - AROMA You said that the Aroma in Coffee is important to you in deciding what brand to buy? Why is that? Because it brings a smile on my face. (Psychosocial Consequences) Why is it important to you to bring smile on the face? Because it refreshes me. (Psychosocial Consequences) Why is it important to you to get refresh? Because it will then activate my senses. (Functional Consequences) Why is it important to you to activate your sense? So that I can think about new ideas. (Psychosocial Consequences) BATCH 2009-2011 STEVENS BUSINESS SCHOOL 24

26. Exhibit 4.7LADDERING - AROMA Why is it important to you to think about new ideas ? So that I can represent myself as innovative person. (Instrumental Value) Why is it important to you to represent yourself innovative? So that I can differentiate myself in a crowd. (Instrumental Value) Why is it important to differentiate yourself in a crowd? So that I can capture the attention of everyone. (Psychosocial Consequence) Why is it important to capture attention of everyone? Because it gives me determination to do better work. (Instrumental Value) BATCH 2009-2011 STEVENS BUSINESS SCHOOL 25

27. Exhibit 4.7LADDERING - AROMA Why is it important for you to do better work? Because it will give me social recognition. (Terminal Value) Why is it important for you to get social recognition? I don’t know!……………….. BATCH 2009-2011 STEVENS BUSINESS SCHOOL 26

28. Exhibit 4.7LADDERING - AVAILABILITY You said that the Availability in Coffee is important to you in deciding what brand to buy? Why is that? So that I don’t have to wander around to buy the product. (Functional Consequences) Why is it important to you to not to wander around? Because it will help me to save time. (Functional Consequences) Why is it important to you to save time? So that I can get back to my home early and spent more time with my friends. (Psychosocial Consequences) BATCH 2009-2011 STEVENS BUSINESS SCHOOL 27

29. Exhibit 4.7LADDERING - AVAILABILITY Why is it important to spent more time with your friends? Because I like to be with them. (Psychosocial Consequences) Why do you like to be with them? Because it gives me pleasure. (Psychosocial Consequences) Why is it important to you to get pleasure? So that I can remain cheerful every time. (Terminal Value) Why is it important to you to remain cheerful? Because cheerfulness gives me good health. (Instrumental Value) BATCH 2009-2011 STEVENS BUSINESS SCHOOL 28

30. Exhibit 4.7LADDERING - AVAILABILITY Why is it important to you to remain in good health? So that I can remain physically fit. (Terminal Value) Why is it important to you to remain physically fit? So that I can look attractive. (Psychosocial Consequences) Why is it important to you to look attractive? Because this makes me feel good about me. (Terminal Value) Why is it important for you to feel good about yourself? That’s it !!! ……………… BATCH 2009-2011 STEVENS BUSINESS SCHOOL 29

31. Exhibit 4.4 A MEC Model of Consumers’ Product Knowledge BATCH 2009-2011 STEVENS BUSINESS SCHOOL 30

32. Exhibit 4.4 A MEC Model of Consumers’ Product Knowledge BATCH 2009-2011 STEVENS BUSINESS SCHOOL 31

33. The Zaltman Metaphor Elicitation Technique interview BATCH 2009-2011 STEVENS BUSINESS SCHOOL 32

34. PRE-INTERVIEW INSTRUCTION BATCH 2009-2011 STEVENS BUSINESS SCHOOL The Zaltman Metaphor Elicitation Technique interview 33

35. STORYTELLING BATCH 2009-2011 STEVENS BUSINESS SCHOOL The Zaltman Metaphor Elicitation Technique interview RELAX CHEERFUL CELEBRATION DELHI TRIP GET TOGETHER COLD WINTER DAY SUCCESSFUL TASK ACTIVATES BRAIN 34

36. EXPAND THE FRAME BATCH 2009-2011 STEVENS BUSINESS SCHOOL The Zaltman Metaphor Elicitation Technique interview VOLLEYBALL MATCH CELEBRATION STATION MY HOME HOT SPRINGS AEROPLANE FLYING 35

37. The ZMET interview SENSORY IMAGES AROMA: BABBLE TASTE: BATCH 2009-2011 STEVENS BUSINESS SCHOOL 36

38. The ZMET interview VIGNETTE Hey Frenz! I am Bru Coffee. Your instant friend is now on duty. Just open the packet, add milk and sugar to me and I am prepared to as quickly as you desire. I am a companion for good time, happy time, success time, lovely time, relax time, bad times, idle time, sleepy time, exhaustive time, lonely time…. My favourable taste and strong aroma activates the nodes of your senses and again you become a new, improved, refreshed and enthusiastic star. …  BATCH 2009-2011 STEVENS BUSINESS SCHOOL 37

39. The ZMET interview DIGITAL IMAGE BATCH 2009-2011 STEVENS BUSINESS SCHOOL 38 7 1 3 4 2 6 5 2

40. MEC & ZMET MEC Aroma Flavour Availability ZMET Association with Self esteem, Socializing, Happiness BATCH 2009-2011 STEVENS BUSINESS SCHOOL 39

41. Exhibit 4.8 A Basic Model of Consumer Product Involvement BATCH 2009-2011 STEVENS BUSINESS SCHOOL 40

44. Price

45. Strong Aroma

46. Variants

48. Sales promotion

49. Celebrations

50. Less time to decideInterpretation & integration process 41 BATCH 2009-2011 STEVENS BUSINESS SCHOOL

51. EXPOSURE TO INFORMATION Intentional exposure: 33.33 % Accidental exposure: 66.67 % BATCH 2009-2011 STEVENS BUSINESS SCHOOL 42

52. VARIATIONS IN COMPREHENSION Exhibit 5.3 Automatic Processing Highly Automatic More Controlled Levels Shallow Deep Elaboration Less elaborated More elaborated Memorability Lower recall Greater recall

53. Exhibit 6.1 LEVELS OF SPECIFICITY OF AN ATTITUDE CONCEPT BATCH 2009-2011 STEVENS BUSINESS SCHOOL 44

54. SALIENT BELIEFS ABOUT AN OBJECT & ATTITUDE TOWARDS AN OBJECT BATCH 2009-2011 45 STEVENS BUSINESS SCHOOL Exhibit 6.1

55. Exhibit 6.3 Multiattribute Attitude Model ∑ A = o b e i i i =1 Where, Ao = Attitude towards the object bi= strength of the belief that the object has attributes ei= evaluation of attribute n = Number of salient belief about the object BATCH 2009-2011 46 STEVENS BUSINESS SCHOOL

56. Exhibit 6.3

57. Exhibit 6.3

58. BATCH 2009-2011 STEVENS BUSINESS SCHOOL 49 Exhibit 7.2

59. Exhibit 7.3 FORMING A CONSIDERATION SET OF BRAND CHOICE ALTERNATIVES BATCH 2009-2011 STEVENS BUSINESS SCHOOL 50

60. Exhibit 7.7 EFFECT OF INVOLVEMENT AND PRODUCT KNOWLEDGE ON CONSUMERS’ PROBLEM SOLVING PROCESSES High Involvement, High Knowledge BATCH 2009-2011 STEVENS BUSINESS SCHOOL 51

61. SECTION 3 BEHAVIOUR AND MARKETING STRATEGY BATCH 2009-2011 STEVENS BUSINESS SCHOOL 52

62. Exhibit 8.1 ADOPTION/PURCHASE PROCESS BATCH 2009-2011 STEVENS BUSINESS SCHOOL 53

63. A Common Behaviour Sequence for a Coffee Purchase BATCH 2009-2011 STEVENS BUSINESS SCHOOL Exhibit 8.2 54

64. Measure Consumer Behavior Consumption stage Example of behaviors Types of behavior Sales Promotion WOM Advertisement Information contact Pre purchase Cash in Hand Funds Locate outlet Enter Outlet Purchase Store contact Product contact Obtain Product Transaction Take product at home Consumption Post purchase Consumption & Disposition Tell others about product Communication

65. Exhibit 8.3 FACTORS AFFECTING INFORMATION SEARCH BY CONSUMERS BATCH 2009-2011 STEVENS BUSINESS SCHOOL 56 INCREASING THE INFLUENCING FACTOR CAUSES SEARCH TO: INFLUENCING FACTOR

66. THE PROCESS OF CLASSICAL CONDITIONING Exhibit 9.1 Unconditioned stimulus Unconditioned response Neutral stimulus- Product Song/ Tagline Unconditioned stimulus - Commercials in TV serials Unconditioned response Conditioned response – Feelinf of Friendship and Happiness Conditioned stimulus 57 BATCH 2009-2011 STEVENS BUSINESS SCHOOL

67. Exhibit 9.4 OPERANT CODITIONING Sales Promotion Technique Free Sample Purchase of Product Entry into store Display ad Purchase in Store BATCH 2009-2011 STEVENS BUSINESS SCHOOL 58

68. Exhibit 10.1 Approach to influencing Overt Behaviors Influence consumer’s affect and cognitions Influence overt consumer behavior Marketing Mix stimuli placed in the environment Information about consumer’s affect, cognitions, behaviors Consumer research data Sales, market share data BATCH 2009-2011 59 STEVENS BUSINESS SCHOOL

69. Strategies Designed to Influence Overt Consumer Behavior BATCH 2009-2011 60 STEVENS BUSINESS SCHOOL Exhibit 10.2

70. SECTION 4 INTRODUCTION TO THE ENVIRONMENT BATCH 2009-2011 STEVENS BUSINESS SCHOOL 61

71. Analyzing Situation 1 SITUATION 1 Lazy – Exhausted Environment: in the classroom, attending session Goal: To get Rejuvenate Affect/Cognition: Feeling Sleepy but want to get alert Behaviour: Went to Canteen, ask for coffee and go back to the class SITUATION 2 Friends – Getogather Environment: Enjoyment, fun time, Noisy envt. Goal: To Spent quality time and get pleasure and collect some memories Affect/Cognition: Happy and excited to be with friends Behaviour: Prepares coffee and Snacks for all BATCH 2009-2011 STEVENS BUSINESS SCHOOL 62

72. Exhibit 11.2 BATCH 2009-2011 STEVENS BUSINESS SCHOOL 63 FIVE GENERIC CONSUMER SITUATIONS

73. Exhibit 12.3 MODEL OF CULTURAL PROCESS Cultural meaning in social and physical environment Marketing strategies Other Institutors Fashion System Cultural meaning in Product and Service Cultural meaning in Consumer Social Interaction Intentional Actions 64 BATCH 2009-2011 STEVENS BUSINESS SCHOOL

74. Exhibit 13.1 BATCH 2009-2011 STEVENS BUSINESS SCHOOL 65 TYPES OF SUBCULTURE

75. Exhibit 14.1 TYPES OF REFERENCE GROUPS BATCH 2009-2011 STEVENS BUSINESS SCHOOL 66

76. Exhibit 14.2 EFFECT OF PUBLIC-PRIVATE AND LUXURY-NECESSITY DIMENSIONS ON REFERENCE GROUP INFLUENCE FOR PRODUCT AND BRAND CHOICE BATCH 2009-2011 STEVENS BUSINESS SCHOOL 67

77. Exhibit 3.6CURRENT SCHEMA BATCH 2009-2011 STEVENS BUSINESS SCHOOL 68

78. SECTION 5 CONSUMER ANALYSIS AND MARKETING STRATEGY BATCH 2009-2011 STEVENS BUSINESS SCHOOL 69

79. DESIRED STATUS Repositioning: A companion not just associated with happiness but also with self confidence, self appreciation , self recognition. Re-launch the various flavours of Bru Coffee as companion for different affective responses. Introduce the whole range of Bru Coffee as “Café in your own Home” Remove the node of “Strong Taste” as one of the reason for low A0 BATCH 2009-2011 STEVENS BUSINESS SCHOOL 70

80. DESIRED SCHEMA BATCH 2009-2011 STEVENS BUSINESS SCHOOL 71

81. Exhibit 15.1 BATCH 2009-2011 72 STEVENS BUSINESS SCHOOL Task In Market Segmentation

82. Market Segmentation Segmentation Bases for Consumer Markets

83. Market Segmentation

84. Exhibit 16.3 BRAND COMMITMENT AND PURCHASING PATTERN BATCH 2009-2011 STEVENS BUSINESS SCHOOL 75

85. Exhibit 16.4 BRAND LOYALTY AND USAGE RATE BATCH 2009-2011 STEVENS BUSINESS SCHOOL 76

86. Exhibit 17.1 TYPES OF AFFECTIVE RESPONSE BATCH 2009-2011 STEVENS BUSINESS SCHOOL 77

87. Exhibit 17.1 BATCH 2009-2011 STEVENS BUSINESS SCHOOL 78

88. BATCH 2009-2011 STEVENS BUSINESS SCHOOL 79 Exhibit 17.3 TWO ROUTES TO PERSUASION IN THE ELM

89. AN ANALYSIS OF CONSUMER VULNERABILITY Exhibit 17.5 ATTITUDE TOWARDS OUR BRAND TWO DIMENSION Neutral Dislike Like Our regular customers who are vulnerable to our competitors Buy regularly Loyal to our brand PAST PURCHASE PATTERNS OF OUR BRAND Buy Occasionally Occasional customers who are vulnerable to our competitors Customers of competing brands who are vulnerable to our brand Forget it Never Buy BATCH 2009-2011 80 STEVENS BUSINESS SCHOOL

90. Exhibit 17.6 THE MECCAS MODEL BATCH 2009-2011 STEVENS BUSINESS SCHOOL 81

91. Exhibit 17.6 BATCH 2009-2011 STEVENS BUSINESS SCHOOL 82

92. Exhibit 19.1 BATCH 2009-2011 STEVENS BUSINESS SCHOOL 83 The Wheel of Consumer Analysis: Channel Strategy Issues

93. BATCH 2009-2011 STEVENS BUSINESS SCHOOL 84

94. ***THANK YOU*** BATCH 2009-2011 STEVENS BUSINESS SCHOOL 85