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Consumer Insights

Consumer Insights. Professor S.J. Grant Spring 2006. BUYER BEHAVIOR, MARKETING 3250. Outline. Need for consumer insights Role in product development Message clarity Case: Pepsi One Case: MasterCard Case: Altoids Case: DiGiorno Pizza. Need for Consumer Insights.

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Consumer Insights

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  1. Consumer Insights Professor S.J. Grant Spring 2006 BUYER BEHAVIOR, MARKETING 3250

  2. Outline • Need for consumer insights • Role in product development • Message clarity • Case: Pepsi One • Case: MasterCard • Case: Altoids • Case: DiGiorno Pizza

  3. Need for Consumer Insights • Concept of value must be defined in context of what targeted consumers are willing to pay for • It is not always clear what features provide value • What is level of optimal tradeoff?

  4. Need for Consumer Insights • Apple introduced the versatile Newton in 1993 • But for all its technological advancements, the handwriting recognition software was flawed, and the product flopped • Motorola Envoy, launched in 1994, also failed to make inroads with consumers • Palm Pilot, an incremental improvement over its predecessors, became a huge success when it was introduced in 1996

  5. Need for Consumer Insights • Product quality is not just the strength of its attributes • Coca-Cola introduced an improved formula after losing Pepsi Challenge taste tests, but consumers rejected New Coke

  6. Consumer Insights: Pepsi One • Pepsi introduced Pepsi One, a one-calorie cola, in 1998 • Addition to line of products: Pepsi, Diet Pepsi, Mountain Dew, Diet Dew, Slice, Mug Pepsi One fits you like a glove. You are viewed by friends as an intellectual and a trendsetter. You go out of your way to learn about new music, fashion, and trends. There's a brainy side of you too. You often pull interesting facts out of your hat and stun people with your worldliness. The same goes for your impeccable taste in music. You also have a spark that lights up the room when you make your entrance. Your smile is magnetic.

  7. Case Study: MasterCard There are some things money can’t buy. For everything else there’s MasterCard.

  8. Case Study: MasterCard • VISA • Everywhere you want to be • Life takes VISA • American Express: Membership has its privileges

  9. Case Study: MasterCard • Associated with acceptance at 24 million locations • Affiliated with 15,000 financial institutions • Market share is in mid 20s, about half that of Visa

  10. Case Study: MasterCard • Consumer insight: Values were changing in a fundamental way in the late ‘90s • More emphasis was being placed on family and human relations • Material consumption was almost taken for granted

  11. Case Study: MasterCard Market Shares (% Purchase Volume)  1998 2000 2001 2003 2005 MasterCard 25.50 25.60 27.61 30.7 23.9 Visa 52.25 51.75 50.38 51.4 49.6 American Express 16.30 17.25 16.14 12.3 14.3

  12. More recent versions of the ad have off-beat humor, irreverence Represent departure from nostalgic, sentimental executions A change in strategy? Case Study: MasterCard

  13. Case Study: Altoids • Males, 20-28, working • Smokers • Drink coffee, beer • Frequent restaurants or carry out • Go to movies and clubs frequently • Looking for empowerment

  14. Case Study: Altoids Drawing on a retro image, Altoids brand is built on the benefit of having “curiously strong” breath-freshening capabilities

  15. Case Study: Altoids

  16. Case Study: Altoids

  17. Case Study: Altoids

  18. Case Study: DiGiorno • Consumers who enjoy delivery pizza complained of inconsistent carry out/delivery quality • Long waits • High price • Cold when delivered • Idea of high-quality frozen pizza met with cynicism

  19. Case Study: DiGiorno • Pizza, which is sold in supermarket freezer, was positioned against delivery pizza as the frame of reference • Higher quality ingredients • Self-rising crust • Point of difference: “It's like getting a $12 pizza for $5”

  20. Case Study: Kaboom • Kaboom Porcelain Tile & Grout Restorer • Foaming bathroom cleaner – uses organic salt as cleaning agent • Most women have 4 – 6 products on hand at all times that are used to clean bathrooms • Bathroom cleaner • Heavy duty • Shower/tub/multipurpose • Daily shower • Toilet • Mirror • Floor

  21. high low Heavy Duty Specific CLR; Lime Away; Tilex Mildew Kaboom PTGR Heavy Duty General Comet; Tilex Soap Scum SEVERITY OF PROBLEM FREQUENCY OF USE Routine (Bi)weekly Shower/Tub: Scrubbing Bubbles Toilet Bowl: Lysol; Clorox Mirror: Windex Floor: Pine Sol; Armstrong Light/Daily Arm & Hammer Clean Shower Tilex Daily Shower low high Case Study: Kaboom

  22. Case Study: Kaboom • Women who clean their bathrooms • Bathroom cleaners • From the makers of Oxi Clean Target Frame of Reference Point of Difference

  23. Case Study: Kaboom From the Makers of Oxi Clean! Defines brand promise. Suggests no fumes without evoking unpleasant association. Borrowed brand equity from Oxi Clean enhances Kaboom’s credibility. Clean Easy. Breathe Easy. KABOOM Descriptor anchors product in mid-frequency FOR. Captures most frequently encountered cleaning problems in order of priority. Allows Kaboom to enter consideration set and span heavy duty and routine cleaning segments. Shower, Tub & Tile Cleaner Aggressively Cleans: Soap Scum, Dirt, Hard Water Build Up, Calcium & Lime Stains, Rust Stains, Grout Stains

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