Case study 5 consumer behavior

Please Follow the example case and complete the following case study.  Please note that all sections must be complete.  The key issues section is critical.  Look for the terms and concepts that we have learned and apply them to the case.  Do not define the key issues.  What in the case makes them the key issue? 

Grading Rubric:

1. Case Summary 2 points
2. Key issues 10 points
3. Personal Analysis 3 points
4. Case Questions 9 points
5. Conclusion 2 points

CASE STUDY

SHAMPOO BUYING: A “BAD HAIR” DAY?

When was the last time you purchased shampoo or other hair care products? How long did it take you to choose? How did you decide?

The hair care aisle of a typical drugstore has more than 200 choices for shampoo. The packages promote a myriad of benefits including repair, protection, hydration, control, and nourishment. How does a consumer make the match between his or her needs and the brand benefits? It’s not easy to choose, and therefore not a surprise that many shoppers spend about 20 minutes in this aisle when they select a shampoo brand.

The confusion builds when you consider that it is not just shampoo that we buy. There are gels, mousses, hairsprays, shine enhancers, and conditioners. A recent Mintel survey shows that three-quarters of consumers use conditioner in addition to shampoo, and these numbers are even higher for women.

One way that consumers try to simplify the purchase process is by referring to compelling advertising, so ad agencies work hard to create effective messages that can reinforce current brand loyalty or persuade consumers to try a new brand. Hair care product advertising relies heavily on television, print, the Internet, and outdoor advertising, most commonly in the form of billboards. In addition, many ad campaigns feature appealing celebrity endorsers such as Katie Holmes, Nicole Scherzinger, and Sofia Vergara.

And it’s not only women in the United States who scratch their heads over these choices. To the women of Singapore and the Philippines, the choice of hair conditioner poses the same challenges. To connect with women in these countries, Unilever tried a nontraditional campaign to show the benefit of Cream Silk Hair Fall Defense, a conditioner brand the company sells in those countries. Cream Silk’s core benefit is the “strength” it gives hair. With the help of advertising agency JWT, Unilever was able to break through the advertising clutter and deliver its message in an entirely new format.

JWT began by contacting Paul Goh, the leading violin bowmaker in Singapore. For this promotion, Mr. Goh was asked to switch out the horsehair violin bows he traditionally used and exchange them with human hair on four of his violin bows. This hair had been washed and conditioned with Cream Silk. To demonstrate the strength of the hair, a string quartet used the bows as it played during a 4-hour concert in a busy shopping mall in Manila. Good news for Unilever: The entire concert concluded without even one broken hair on the violin bows! You can view the video yourself on YouTube; just search “The Human Hair Quartet.” The viral video has excellent production quality and includes the advertising message:

When it comes to showing strong hair, all commercials show it the same way. So we changed the game, by turning the demonstration of STRONG HAIR, into a live performance ….

DISCUSSION QUESTIONS
Describe Cream Silk’s promotion within the context of the multiattribute model: Which attribute(s) were central to the promotion and how does the model explain what the company was trying to accomplish with the “Human Hair Quartet?” What limitations might this model have for predicting consumer’s attitudes and purchase behavior towards Cream Silk? (Hint: Take a look at the Theory of Reasoned Action.)
In contrast to the Cream Silk promotion, Old Spice used its characteristically quirky approach to persuade men to try its hair care products. The integrated campaign, “That’s the Power of Hair,” incorporated a popular Huey Lewis tune, an interactive Web site, and funny ads featuring animated hair. Discuss the type of message appeal and the Elaboration Likelihood Model route each campaign used.

Please see the sample format that the instructor wants below :

On every case assignment you must meet the minimum standards for depth and organization. Any case analysis that is under 500 words (not counting title and references) will receive a zero. Each case also must have a minimum of 3 outside references, not counting the textbook.

Below is a Sample Case Analysis.  This sample gives you a clear example of how the required case analysis format should be delivered. Follow this format in your analysis.

Do not use the Key Marketing Issues used in the sample case. Each case will have its own set of Key Marketing Issues which you will choose based on the details of the case content and the class reading. Follow this format on all 8 case analyzes.

Sample Case Assignment Analysis Format

MRKT 5000 Online Course

(Instructional notes in red)

(Your name here)

Can Pepsi make Pepsi One the One? (This is a case from a previous edition of the Marketing text – not currently in your text book. This is only a sample analysis to demonstrate analysis format only)

CASE SUMMARY:

Pepsi One is an innovative product launched in the market by PepsiCo to keep the image of innovation, fast movement, and competitiveness.  The case includes the steps of a new-product development process.  Emphasizing the launch of the product and the ways that Pepsi One is getting more familiar to the target market.   Pepsi One is becoming a successful product by getting more market share from the main competitor Coca-Cola.

(Each case to be analyzed will be read from the text, with specific questions assigned)

KEY MARKETING ISSUES

• Line extension – Development of a product that is closely related to existing products in the line but meets different customer needs.  Pepsi One is a product that tries to differentiate itself from the normal diet products, to reach different target markets.

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• Product modification – Change in one or more characteristics of a product. Pepsi changed the sweetener to acesulfane potassium (ace K) to create the Pepsi One.
• Aesthetic modification – Changes to the sensory appeal of a product.   Pepsi tried to appeal as a not a new diet drink but a new way of tasting a soda.
• New-product development process – A seven-phase process for introducing products: Idea generation, Screening, Concept testing, Business analysis, Product development, Test marketing, Commercialization.  The PepsiCo performed all phases of new-product development in order to ensure the product would succeed in the market.
• Product differentiation – Creating and designing products so that customers perceive them as different from competing products.  Pepsi One tries to differentiate itself being the only low calorie drinks that taste exactly as a regular drink (Pepsi).
• Product design – How a product is conceived, planned, and produced. 
• Styling – The physical appearance of a product.   Pepsi One omits the word “diet” and even the word Pepsi, is secondary to the thick, black lettering of the word “One”.
• Product positioning – Creating and maintaining a certain concept of a product in customers’ minds.  Through advertising the company tried to keep the idea of the product in customer’s minds.

(These are the issues in this particular case – each case will have a different set of Key Issues)

Personal Case Analysis

I learned that Pepsi One was a product created by a modification of an existent product “Pepsi Diet”.  The product modification was the sweetener used.   A new taste of cola was added to the appeal for a low calorie soft drink.  By trying to differentiate Pepsi One from a classic Diet product, PepsiCo shows its innovative style and gain market share from Coca-Cola.

CASE QUESTIONS

1-    Is Pepsi One a new product, a modified product, or a line extension?  Explain your answer.

Pepsi One is a new product, line extension and a modified product.  Pepsi changed the sweetener to acesulfane potassium (ace K) to create the Pepsi One and tried to be unique by being a low calorie soft drink, which tastes a regular soft drink.

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2-    In what way is Pepsi One positioned?

Pepsi One was positioned by including characteristics that target market most desires.  Understanding the diet aspect of Pepsi One helped attract an unusual market segment for a diet drink:  cola-loving males in their 20s and 30s. The product is not made to compete head to head with Diet Pepsi.

3-    Over the years, PepsiCo has had a number of product failures.  Evaluate PepsiCo management’s decision to introduce Pepsi One?

PepsiCo was launched just after test indicated consumers liked its taste as much as its creators did.  In extensive home-use tests, almost 70 percent of Pepsi One tasters reported they would purchase the product again.  To differentiate Pepsi One from the horde of diet soft drinks, PepsiCo focused on the product’s taste, which is almost indistinguishable from the taste of sugared soft drinks.

CONCLUSIONS

The company that wants to be competitive needs to be innovative and always introduce new products in the market.  PepsiCo used line extension of its Diet products to create Pepsi One.  Pepsi One is a product modification as well, which was consisted of in changing the sweetener to acesulfane potassium (ace K).  This aesthetic modification provided the product differentiation that appealed to customers as product with low calorie that tastes as a regular soft drink.  The different product design that included change on the styling never seen before, helped to position the product among the cola-loving males in there 20s and 30s.  By being innovative Pepsi One is guaranteeing its position on the soft drinks market, taking some market share from its big rival “Coca-cola.”

Works Cited

(Each analysis must include a minimum of three outside references, not counting the text or references from the case subject directly)

Bramhall, Joe, “Pepsi Inc”, Hoovers, http://www.hoovers.com/xm-holdings/–ID_60656–/free-co-factsheet.xhtml

“Choosing a soft drink”, Soda pop.com Click & Learn:  http://www.pepsicity.com/rpsm/edOid/105548/rpem/ccd/lookLearn.do

Deitz, Corey, “Learn the Difference to Make the Best Choice For Yourself”, Your Guide to softdrinks, December 29, 2005, Pepsi and Coke Comparison Chart 

http://pop.about.com/od/satelliteradio/a/blsatcomparecht.htm

Company Profile, “Pepsi, Inc”, February 10, 2006, NAMC Newswire, http://www.newswire.com/companyprofiles/xmsr.html

Insight from Standard & Poor’s, S&P Boosts Pepsi to Strong Buy, BusinessWeek online, February 9, 2006, http://www.businessweek.com/investor/content/feb2006/pi20060209_35961.htm?chan=tc

(Make sure your name is at the top of the paper)

(Remember that any paper with less the 500 words of content – not counting the words from the questions and references – will receive a zero)