UNIVERSITY OF BAHRAIN

College Of Business Administration

Department Of Management and Marketing

Assessment -02
MARCH -2021

MKT461 – CONSUMER BEHAVIOUR

1. Name: Faisal Fazal Rahman Student ID: 20183056 Section: 04

2. Name: Ahmed jawed Student ID: 20175620 Section: 04

Please Note:
A. This is a GROUP assessment (group of no more than 2
students) submitted the assignment on blackboard on or
before the due date.
B. The assessments should be in PDF format.

SECTION A
SECTION A
ABC is in the business of herbal cosmetics since 1984, with an objective of

becoming a one roof solution for all beauty and cosmetic products. It provides a wide

range of beauty cosmetic products strictly prepared with herbal ingredients. Its
product range spans hair care, skin care, body/ face/hand/foot care products.

Recently it has ventured into Health care with the introduction of 2 Products - CON

TUMBLER - a water tumbler that will help control Blood pressure, reduces

Cholesterol and also purifies blood and SLIM TUMBLER - a water tumbler with a

Presence of NATURAL HERB (a natural Natural herb that controls sugar and burns

fat.

(a)What steps the ABC Company should take to form the Consumer Attitudes

towards their new 2 products?

Answer: In order to shape the consumer attitudes towards the two tumblers that ABC

Company is launching in the market, ABC Company must ensure that the positioning

and targeting for the customers is done in a right manner. The Company must

regularly market these products to create a perception among the customers that

these tumblers are health effective in nature and the product entail no side effects.

The ABC company must also perform an efficient segmentation exercise where they

would spot and list the types of targeted customers from the market whom they want

to sell this product aggressively to. This ensures that relevant mode of

communication is done to the relevant type of audience and these audience

segments understand the need of a health-conscious tumbler. Both CON and SLIM

tumblers must be rolled out for try-outs so that the customers are aware and

confident about the product before purchasing them and the customers can also help

to market the product through word of mouth.

(b)Suggest an appropriate promotional strategy for ABC company "health care

tumblers" looking at the perception. Related barriers people may have against this

form of product.

Answer: As a part of the promotional strategy to be adopted by ABC Company, the

company must invest in an offer related pricing strategy where initially the product is

sold at a discounted price. This encourages the customers to purchase and try the

products before the promotional offer runs out. This helps to remove the pricing-

based barrier from the product. In addition, the company must also focus on an

ambassador-based promotion where a celebrity or a known figure with a good brand

value endorses the product on various social media platforms. Endorsement of the

product from a trusted celebrity instills a sense of confidence and helps in removing

the performance-based barrier from the product. The company must also market

about its various inspection tests being conducted and approvals from medical and

regulatory authorities obtained on the product. Substantiation from such authorities

eliminates the fear of any side- effects or ill-effects from the product. This type of a

promotional activity helps to reduce the adoption-based barrier from the product.

SECTION B
Read the case given below and answer the questions given at the end of the case.

The Kellogg challenge

Kellogg Company has distribution in over 150 countries and vet is still unknown to
one-third of the world's population. According to its CEO,'the company plans to
change all that “Kellogg has built a company called cereal plant in Latvia and has
sales in Poland and Hungary.
It has also constructed a cereal plant in Srilanka and also has entered the Chinese
market. Entry to these two countries have helped to enhance then on U.S. sales
which in 2001 were 62% of total volume and 49% of total revenue. However, the
company is aware that international expansion and the development of global
Brands for its products will not be easy. To work towards its global aspirations, the
company has reorganised itself into four divisions: North America, Latin America,
Europe and Australia. According to the CEO:
"The way we used to be organized, we were a U.S.based multinational-a company
with a big domestic business and, by the way, sonic international business. That was
the way we were thinking; that was the way the organisation was structured.
Today, if you talk to customers in the UK, Canada, or Australia, they'd think of
Kellogg as being based in the UK or Canada or Australia. We are global in
organisational structure and business, but also multidomestic.We now have a
number of truly global brands (Frosted Flakes and Corn Flakes, with Froot Loops
and RiceKrispies close behind and Frosted Mini Wheats and Honey Nut loops
moving rapidly). There used to be slight variations in our food around the world but
now you will recognise the products wherever you go
Advertising for frosted flakes is now global and that for other Brands may follow.
Expanding into many markets will involve more than trying to gain share from the
other cereal marketers. It will require altering long held traditions. :
"In Asia for example, consumers are used to eating something warm, soft and
savoury for breakfast and we are going to sell them something that is cold, crisp and
sweet or bran tasting. That's quite a difference."
The challenge is made greater by the existence of local competitors and traditional
breakfast - food suppliers in countries like China and Srilanka. Competition is strong
even in these countries where consumption is low. For example, in Srilanka, with
consumption at 10 bowls per year per person compared to ten pounds in the U.S.,
there are more than 50 direct and indirect competitors from packaged food
manufacturers, to a whole lot of traditional breakfast meals in both organized and
unorganised sector.
Questions:

(a) What are the needs and values involved in the consumption of a product such

as breakfast cereal?

Answer: Consuming a healthy breakfast cereal, meets the needs of most

homes as they can be consumed as they are or with milk and do not require

cooking.

Some of the needs of breakfast cereals are:

I. Most working population prefer easy and quick breakfast options owing to

the time limitations for cooking

ii. Healthy and suitable for consumption by all age groups

iii. Easy to carry and consumed as a snack

Some of the values of breakfast cereals are:

I. Contributes to a healthy start

ii. Nutritious

iii. Can help one stay light and active during the day else traditional breakfast

can be quite heavy

iv. Availability of cereals in various forms and flavours, meets the needs of

consumers with various taste buds.

(b) What consumer behaviour variables would support and what would harm the

chances of Kellogg succeeding with cold cereal in Srilanka?

Answer: Some of the factors that can support or harm the succession of cereals in

the country mentioned are as follows:

Supporting Variables Consumers Harmful Variables

Easy to prepare as no heating is Adapting to the consumption of cold

required
Quick to eat during busy schedules
Provide Sri Lankan flavoured to attract
cereal can be unpredictable
Competitiveness with traditional
breakfast options
Cultural and climatic variance can harm
succession of cereal over other
breakfast options

(b) Suggest an appropriate promotional strategy for Kellogg's cornflakes, looking

at the perception related barriers people may have against this form of

breakfast.

Answers: A promotional strategy of the company can adopt to succeed is

through the introduction of new breakfast options involving local flavours such

as coconut or cinnamon-flavoured breakfast cereals. As country’s cousin alien

with tropical flavours, the food consumption of the local is mainly tropical and

spice-based.