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Unit 37 : Consumer Behaviour and Insight
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Assignment Title:
Module Leader:
Internal Verifier: Issued on:
Formative Assessment Week:
Deadline:
Submitted on:
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Marketing Essentials
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Student Name: Student ID:
Campus:
Pearson Registration Number:
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Case study Introduction
Background
The Coca-Cola Company is the world`s largest beverage company and is the leading producer and marketer of soft drinks. Today, Coca-Cola is consumed throughout the world at the rate of more than 600 million times per day and this figure is continuing to rise. However, Coca-Cola is not the sort of company to live on its past glories; instead it looks to the future as a challenge and constantly seeks new markets and ways of increasing its market share in areas where it currently has a strong presence. It is the world`s largest producer and distributor of syrups and concentrates for soft drinks. Products developed by the Company are sold through bottlers, fountain wholesalers and distributors around the globe. Brand Coca-Cola accounts for about 75 per cent of the Company`s unit sales volume of soft drinks. The remaining 25 per cent consists of well known soft drinks such as Sprite, Fanta, Fresca, Mello Yello, Surge, Barq`s Root Beer and many other brands. The Company`s soft drink operations are managed in 6 Groups: North America, Latin America, Africa, Greater Europe, Middle/Far East and The Minute Maid Company (the world`s leading marketer of fruit juices and fruit drinks).
The Buying process
"A buying decision making process is the selection of an option from two or more alternative choices" (Jiang, 2010). Coca-colas consumers can be explained in Consumer as a Problem Solver (Habitual Decision Maker). A habitual decision maker makes choices that are characterised by an impulse made with little effort and without conscious control (Solomon et al, 2006). Coca-Cola`s brands are low involvement products and so require little information search. Most decisions made by people who consume Coca-Cola are with little or no conscious effort. Coca-Cola consumers purchase Coke for example based on a habit that has been formed over time.
Market research:
The Coca-Cola Company uses a customer-based approach to market research, not a product-based approach. Because of Coca-Cola’s close relationship with its customers, it is able to create products that are focused on their market segments. Market research enables Coca-Cola to determine the type of product consumers seek, the best places to promote and distribute the products, and the price that offers consumers the best value for their money.
Consumers in different markets can be quite different, even when their consumer profiles appear similar. Coca-Cola Vanilla is a good example of this phenomenon. Coca-Cola Vanilla was established in the U.S. with a good market following, but the Coca-Cola Company wanted to extend the brand to the U.K. Market researchers tested the product concept in the U.K. in order to gauge the response of consumers and Coke fans. Through taste tasting, Coca-Cola was able to ascertain how the product should taste for Coke drinkers in the U.K. Focus groups held with consumers were the basis for identifying the most attractive product design to have British appeal.
The work of market researchers in a company like Coca-Cola is complex. Just think of what it takes to test and develop a product range that is attractive to consumers around the globe. The Coca-Cola company and its market research department and market research partners does this very well. Market research keeps tabs of consumer perceptions about the current range of Coca-Cola products, and it helps the company to extend the product range by focusing on customer-driven opportunities.
Conclusion:
Understanding consumers` behaviour is a key to having a successful company; marketers need to deepen their research on their consumers because the consumers are becoming aware of the important role they play in their consumption pattern. Competitors are always also looking for tactics to grow and influence new consumers, and any organisation that does not meet up with consumer`s expectations would be losing a consumer. Companies should look for ways to retain their current customers and also focus on getting new ones "attracting new customers should be a priority in a recession" (Pearce and Michael 2006). Organisations should actively engage their customers more than before.
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As competition in the market grows for beverages, you have been asked to prepare a report on showing the impact of consumer decision making and the complexities of customer behaviour with regards to Coca-Cola to your line Manager at Coca-Cola London.
Your report should consists of the following :
- Title
- Summary
- Introduction
- Body
- Conclusions
- Recommendations
- Appendix
- References
- Table of Contents
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Evidence required
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Written Report with a word limit :1200 words+/-10%
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Grading Criteria (AC) covered by this task: P1, P2 and M1
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AC
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To achieve the criteria you must show that you are able to:
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P1
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Explain and analyse the stages of the consumer decision-making journey for a given product or service.- Coca Cola.
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P2
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Explain why it is important for marketers to map a path to purchase and understand consumer Decision-making process in the context of Coca -Cola.
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M1
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Evaluate how marketers are responding to the decision-making process, applying relevant factors, concepts and models that influence decision-making at Coca-Cola.
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Task 2
Vocational Scenario
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LO2: Evaluate appropriate forms of research to understand influences on the decision-making process(B2B and B2C)
As a trainee Brand Manager, you have been assigned responsibility to prepare and present PowerPoint presentation in front of a marketing panel on the company’s products and services highlighting market research and decision making for B2B and B2C at Coca-Cola.
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Evidence required
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PowerPoint Presentation and Speaker’s Notes (12 slides approx.) word limit :200 words+/-10%
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Grading criteria (AC) covered by this task: P3, P4 and M2
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AC
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To achieve the criteria you must show that you are able to:
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P3
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Compare and contrast the key differences of the decision-making process
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in the context of B2B and B2C, providing specific examples of Coca-Cola market research .
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P4
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Evaluate the different approaches to market research and methods of research used for understanding the decision-making process in both B2B and B2C in the context of Coca-Cola.
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M2
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Provide a coherent and justified evaluation of how different factors influence decision- making and buying behaviour, supported by specific examples in relation to market research conducted for Coca-Cola.
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Task 3
Vocational Scenario
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LO3: Evaluate how marketers influence the different stages of the decision- making process (B2B and B2C).
Your line manager has found your previous report on consumer decision making journey very useful and it is highly appreciated across the marketing department Now, he has asked you to provide a Marketing Plan that should include evaluation of how marketers influence the different stages of decision making process of B2B and B2C for the research purpose.
Your Marketing Plan should include the following:
- Introduction
- Evaluation of different stages of the decision-making process of B2Band B2C
- Conclusion
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Evidence required
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Written Marketing Plan -Word limit of 1100 words+/-10%.
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Grading Criteria (AC) covered by this task: P5, M3 and D1
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AC
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To achieve the criteria you must show that you are able to:
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P5
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Evaluate how marketers can influence the different stages of the decision-making process of B2Band B2C in the context of scenario provided above for Coca Cola”.
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M3
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Critically evaluate how marketers influence each stage of the decision-making process with reference to relevant methods and models applied at Coca-Cola for the above scenario.
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D1
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Critically evaluate the application of appropriate theories, concepts and models that influence and Impact upon the decision making process in the context of Coca-Cola as discussed in Task 1, 2 and 3 (LO1, L02 & LO3).
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Sources of information to support you with this Assignment.
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Recommended Textbooks:
BRASSINGTON, F. and PETTITT, S. (2012) Essentials of Marketing. 3rd Ed. Harlow: Pearson.
EAST, R., WRIGHT, M. and VANHEULE, M. (2013)
Consumer Behaviour: Applications in Marketing. 2nd Ed. London: Sage Publications.
SHIFFMAN, L. and WISENBLIT, J. (2014) Consumer
Behaviour. 11th Ed. London: Prentice Hall.
SZMIGIN, I. and PLACENTINI, M. (2014) Consumer Behaviour. Oxford: Oxford University Press
Websites
1. Marketing Week: Extracts from Marketing Week and news headlines.
- MINTEL: Contents pages for Mintel Market Research Reports.
- Product Development and Management Association: Full- text of `Visions` journal on product development process and product management.
- Silicon Glen: An online guide to Scotland, with an emphasis on Scottish e-business.
- www.marketingprofs.com
- http://www.marketingpower.com/Pages/default.aspx
- http://www.cim.co.uk/Home.aspx
* Subject to change according to new editions and/or publications
Links
This unit links to the following related units:
Unit 2: Marketing Essentials
Unit 22: Product and Service Development Unit 38: Customer Value Management
Unit 41: Brand Management.
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Other assessment materials attached to this Assignment Brief
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- PowerPoint Presentation Slides
- Guidance for Students
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Assessment Information:
The specific assignment details and the tasks can be found in the FSB Connect site.
Cross-Referencing of Module Outcomes to Module Assessment (detailed below)
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Types of Assessment
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Task 1
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Task 2
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Task 3
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Required Format of Submission
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Report
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Slides
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Marketing Plan
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LO1
Demonstrate the ability to map a path to purchase in a given category, including the decision-making process.
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1,200
words
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LO2
Evaluate appropriate forms of research to understand influences on the decision-making process(B2B and B2C)
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12 slides
200 words
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Not Applicable
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LO3
Evaluate how marketers influence the different stages of the decision-making process (B2B and B2C)
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Not Applicable
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1,100 Words
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Total Recommended Word Count
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2,500 Words (Maximum)
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Please Note: All Assessment Criteria (in LO1 to LO3) must be successfully completed in order to achieve a Pass grade in this Unit/Module. Merit or Distinction grades cannot be achieved/awarded, unless and until LO1 to LO3 have been successfully completed by the Student
Learning Outcomes and Grading Criteria
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Pass
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Merit
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Distinction
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LO1 Demonstrate the ability to map a path to purchase in a given category, including the decision- making process
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LO1, 2 & 3
D1 Critically evaluate the application of appropriate theories, concepts and models that influence and impact upon the decision making process supported by specific examples and contexts
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P1 Explain and analyse the stages of the consumer decision making journey for a given product/services.
P2 Explain why it is important marketers to map a path to purchase and understand consumer decision making.
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M1 Evaluate how marketers are responding to the decision making process, applying relevant concepts and models
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LO2 Evaluate appropriate forms of research to understand influences on the decision-making process (B2C and B2B)
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P3 Compare and contrast the key differences of the decision making process in the context of B2C and B2B by providing specific examples.
P4 Evaluate the different approaches to market research and methods of research used for understanding the decision-making process in both B2C and B2B contexts.
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M2 Provide a coherent and justified evaluation of how different factors influence decision making and buying behaviour supported by specific examples.
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LO3 Evaluate how marketers influence the different stages of the decision-making process (B2C and B2B)
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P5 Evaluate how marketers can influence the different stages of the decision-making process of B2C and B2B, giving specific examples
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M3 Critically evaluate how marketers influence each stage of the decision- making process with reference to relevant methods and models applied.
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