ANALYZING MARKETS

Analyzing Consumer Markets

Consumer Behavior is the study how individuals, groups and organizations select, buy, use and dispose off goods, services, ideas or experiences to satisfy their needs and wants.

Factors affecting consumer behavior are :

Cultural factors :

5 star available in various quantities and is easily affordable irrespective of the social status. since Indians love to eat sweet after their meals , they generally prefer chocolates . Thus, 5 Star is consumed in various parts of India in the form of an after food dessert.

Social factors :

The behavior of people can be affected by family, friends, co-workers, religious groups, professional groups, inspirational groups etc. another direct influence is the family of procreation i.e. the person’s spouse and children.

Reference groups such as family and friends consume 5 star and hence other people looking at them also feel like trying it. Hence in this way socially the use of a product is effected.

Personal factors :

A person’s age, occupation, personality and perception of oneself, lifestyle, values etc also affects the choices we make.

5 Star is consumed by any one and every one in the society. No special status or personality or lifestyle is required to do the same.

Theories which govern the consumer behavior are :

Freud'sTheory

It is a sales theory which supposes that consumers choose whether or not to purchase a product due to unconscious desires and motivators, and that the qualities of the product, such as touch, taste or smell, remind them of past events. Recognizing how the elements of a product trigger an emotional response from the consumer can help a marketer or salesperson understand how to lead a consumer toward making a purchase.

When we link this theory to 5 star we find that most of the time it is consumed without any actual stated reason. It is consumed  just for a mood change, or when there is a craving to eat something sweet.

Maslow's Hierarchy of Needs 

Maslow's Hierarchy of Needs is a "content theory" of motivation"

The classes of needs were summarized by Maslow as follows:

5 Star is consumed in India as a dessert either after meal or anytime anywhere. Hence, according to this theory, 5 Star falls under the basic need  i.e. the psychological needs.

Herzberg's Two Factor Theory

Herzberg's theory is related to certain characteristics of job related to job satisfaction, while certain other factors are related with job dissatisfaction. These factors are:

 Here 5 star's seller has a role to play. He need to identify the motivators  or the person who is satisfied by its characteristics and taste.

Analyzing Business Markets 

A business market consists of all organizations that acquire goods and services used in the production of other products and services that are sold, rented or supplied to others.

Characteristics of business markets

• Fewer, larger buyers
• Close supplier-customer relationship
• Geographically concentrated buyers
• Derived demand
• Inelastic demand
• Fluctuating demand
• Professional purchasing
• Many buying influences 
• Multiple sales calls
• Direct purchasing
• Reciprocity
• Leasing

 In a business scenario there are three types of buying situations

• Straight rebuy
• Modified rebuy
• New task 

 Factors Influencing Business Buying Behaviour are depicted in figure below

For any confectionery to be manufactured , the supply chain include raw material suppliers to the manufacturer. Extensive search is done about the supplier. Quotations etc are called and one with the best price and service is fixed. Cadbury does regular checks to maintain the quality of 5 star. It also make sure that time to time new variants are launched.

SALES MANAGEMENT

Sales Management

The AMA defines sales management as ‘the planning, direction and control of the personal selling activities of a business unit, including recruiting, selecting, training, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to the sales force.’ It is the business discipline which is based on the practical application of sales techniques and the management of a firm’s sales operations. It is an important aspect of business as it generates revenue for the firm and leads it to profits and future growth.

The sales management model is given below. It is how any sales department of an organization functions.

Sales management can involve any of the following activities:

(1) formulation of sales strategy,sales force compensation policies, sales revenue forecasts, and sales plan,
(2) implementation of sales strategy through selecting, training, motivating, and supporting the sales force, setting sales revenue targets 
(3) sales force management through development and implementation of sales performance, monitoring, and evaluation methods, and analysis of associated behavioral patterns and costs.

In case of 5 Star ,the sales management team should be aware of the competition and should do everything possible to promote the product in order to make it a market leader or help in retaining the position .The  price is more or less same when compared to competitors and hence extra efforts need to be put in order to persuade the customers. The benefit that 5 star has over its competitors is that it offers variety in flavors. Cadbury has always had good presentation,demonstration and high brand recall, so it was always successful in promoting 5 Star.

HOLISTIC MARKETING

Holistic Marketing

According to Business dictionary holistic marketing is defined as "A marketing strategy that is developed by thinking about the business as a whole, its place in the broader economy and society, and in the lives of its customers. It attempts to develop and maintain multiple perspectives on the company’s commercial activities.

Holistic Marketing has four main components :

Cadbury through various channels like print,TVC etc reaches its audiences and inform them about their products.The company also maintains good performance and internal marketing policy.Cadbury performs multiple CSR activities like GurikhaProject,it also partnered with Vatsalya Foundation, an NGO working with underprivileged street children in Mumbai.They  believe that for sustaining in the long run it is very important to give back to the society .

Cadbury use integrated marketing to advertise its products and inform the customers They have strong internal communication system and the various departments work in coordination with each other for growth of the company .They also follow a strong set of ethics and culture.

BRANDING

   

Brand

AMA defines brand and branding as "a name,term,sign,symbol or design or a combination of them,intended to identify the goods or devices of one seller or a group of sellers and to differentiate them from those of competitors." 

Cadbury as brand was first launched in the year 1824 headquarter in Birmingham, United Kingdoman and  launched in India on 19 July 1948 , headquarter in Mumbai.5 Star was launched in 1969, 5 Star soon became the star of every refrigerator and pocket; people could not resist biting into one.
Being the second largest brand in the Cadbury portfolio, 5 Star enjoys extensive marketing and promotion. Continuous product development activities and interesting advertisements have ensured that 5 Star enjoys undivided attention and demand from its countless fans. This chocolate is iconic. To every chocolate-lover’s taste buds, it brings back mouth-watering memories. 

Brand Equity 

AMA defines brand equity as "Brand equity is a phrase used in the marketing industry to try to describe the value of having a well-known brand name, based on the idea that the owner of a well-known brand name can generate more money from products with that brand name than from products with a less well known name, as consumers believe that a product with a well-known name is better than products with less well known names. "

Within a pyramid, the model highlights four key levels that you can work through to create a successful brand. These four levels are:

1. Brand identity.
2. Brand meaning.
3. Brand responses.
4. Brand relationships.

Within these four levels are six building blocks that further help with brand development. These six building blocks are salience, performance, imagery, judgments, feelings, and resonance.

The brand equity of 5 Star very high as it is a brand that belongs to CADBURY . Cadbury itself as a brand has high brand equity and has been always associated to quality and value for money products .

SEGMENTATION, TARGETING and POSITIONING

  

Segmentation

According to AMA market segment refers to "The process of subdividing a market into distinct subsets of customers that behave in the same way or have similar needs. Each subset may conceivably be chosen as a market target to be reached with a distinct marketing strategy. The process begins with a basis of segmentation-a product-specific factor that reflects differences in customers' requirements or responsiveness to marketing variables. Segment descriptors are then chosen, based on their ability to identify segments, to account for variance in the segmentation basis, and to suggest competitive strategy implications. To be of strategic value, the resulting segments must be measurable, accessible, sufficiently different to justify a meaningful variation in strategy, substantial, and durable.

The elements of segmentation is depicted in the figure below.

Targeting

Targeting, according to AMA, is “narrowly focusing ads and keywords to attract a specific, marketing profiled searcher and potential customer.

”Target market is defined as the particular segment of a population on which the seller focuses its merchandising and promotional expertise to satisfy that sub-market in order to accomplish its profit objectives.

Since 5 Star is consumed by people from every age group, geographic location, gender and so its ads and promotional campaigns are designed in such a way that it targets all the sections of the society. In short rich or poor, male or female, kid or adult, everyone is a consumer of 5 Star.

Positioning

Product positioning as defined by AMA is ‘the way consumers, users, buyers and others view competitive brands or types of products. As determined by market research techniques, the various products are plotted onto maps, using product attributes as dimensions.”