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This report attempts to study the consumers behavior for a particular cola brand, MOJO. It is brand of Akij Food and Beverage Ltd., a sister concern of prominent group of companies of Bangladesh, Akij Group. In the year 2007 MOJO was the market challenger in Bangladeshi cola market with a sales of about 52 crores BDT. The brand was launched in 14th April, 2005 targeting the youth of Bangladesh who like the Bangladeshi trends. All those years MOJO is doing satisfactory in the market place and competing well with RC Cola). People prefer MOJOs pricing but it has to improve its image in status and quality issues. However, still now MOJO has the chance to recover its own position because target customers (according to the survey result) are potential and have not constructed their belief structure for MOJO. For some particular aspects of consumer behavior such as perception, attitude, self-orientation and life style etc, this report has found out some drawbacks and recommended some affective strategies to recover those issues successfully.
1.0 INTRODUCTION
1.1 Origin of the Report
While doing the Consumer Behavior course; our course instructor Ms. Kohinoor Biswas assigned us to do a term paper on the consumer behavior and marketing strategy of a product. Through a lottery our
A REPORT ON CONSUMER BEHAVIOR ON instructor gave us the topic MOJO Cola on which we have conducted our total term paper.
1.2 Objectives
The main objectives of the term paper is to 1. Find out the consumers belief, attitude and behavior about MOJO cola 2. Find out the segmentation and target market 3. The market positioning 4. Recognizing the consumers learning and perception 5. Building a strong marketing strategy for MOJO Cola.
1.3 Scope
The term paper having a great deal of issues has provided us a wide range of scope of doing survey, analyze, interpret and providing strategies. Here we have included consumers belief perception, learning, memory and lifestyle and their behavior about MOJO Cola.
1.4 Methodology
Nature of study This term paper is an exploratory type of study. Primary Sources This term paper has been done on both primary and secondary information. Through the survey using questionnaire we have collected primary data according to which we have given some important strategies. It includes the questions about the demographic, cultural, behavioral factors. It also considers the belief and attitude toward different colas in the market (MOJO, coke, Pepsi). Sampling Method Convenient sampling where especially students and friends have participated Information Collection Instrument Structured questionnaires including demographic factors, consumers belief, attitude and behavioral factors for the respondents Sample Size 100 samples have been taken to do the survey. Secondary Sources Through visiting the website, collecting brochure and information from their office the secondary data have been collected. In this term paper 100 consumers were interviewed for this purpose. Analysis Technique Statistical techniques (SPSS) were used to analyze the collected information. v
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Presentation of Information We have used graphs including pie chart, bar diagram to present the information. Preparation and Submission of Report This report has been prepared and submitted to the honorable instructor Mrs. Kohinoor Biswas under whom we have done this term paper.
1.5 Limitation
There are some limitations that we faced while doing this term paper is: 1. Only 100 interviewees have been taken into consideration while preparing the report which is not a good sample to provide any strategy. 2. Most of the interviewees are from different private universities. 3. Lack of in-depth understanding of certain terms and concepts to the interviewed people. 4. Inadequate knowledge of interviewed people about the product MOJO Cola. 5. Age variation is very low as respondents are most of young people.
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A REPORT ON CONSUMER BEHAVIOR ON Vision Any companys vision is actually the dream to which the company always strives to reach where it may become possible or not. Here it is also not apart for Akij Group. Expanding the business in the abroad fully and becoming one of the market leaders internationally- this company thinks in this way as a part of their vision. Mission The mission of Akij Group is to be the market leader by 2009 through their best effort, suitable and competitive marketing strategy and the consumers support. Now they are in the position of challenger and their vision focuses on those missions, goals and objectives which will make them able to be the leader from the challenger to the leader in the market. Goal The companys goal is to maximizing the market share in their every categorized business including Akij Food & Baverage Ltd, Akij Cement Company Ltd, Dhaka Tobacco Industries, Akij Textile Mills Ltd and Akij Particle Board Mills Ltd. Objective The objective of Akij Group is to provide the quality products and services in such a form that the customers demand. Strategy The company always believes in pull strategy rather than push strategy. They first of all find out the customers demand about how, when, where, and what type of product ad services they want. Then according to that they provide their services at the right place and in the right time.
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A REPORT ON CONSUMER BEHAVIOR ON leather processing and real-estate business are in operation, catering jobs for more that 32,000 people in various categories. The Group has plans for setting up more projects. The projects are already in pipeline. Foreign investors have shown keen interest in joining with us for joint ventures. The matter is under our active consideration and will hopefully soon mature. This will also help the nation's economy growth and will create job opportunities to various professionals. Akij Group is also involved in socio-cultural activities. The Group has been operating a sizeable orphanage free of charge in district town. The Group has also acquired a modern mother & children hospital previously owned by Save the Children (UK). The hospital is being operated as a non-profitable concern by Ad-Din Welfare Trust.
AKIJ GROUP Akij Jute Mills Ltd. Akij Match Factory Ltd. Akij Food & Baverage Ltd. Akij Cement Company Ltd. Dhaka Tobacco Industries Akij Textile Mills Ltd. Akij Particle Board Mills Ltd. Akij Printing & Packaging Ltd Akij Corporation Limited.
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A REPORT ON CONSUMER BEHAVIOR ON Checky Monkey is the brand name of banana chips produced from this factory. It also is becoming popular chips in Bangladesh. Most of our Raw materials come from various foreign countries. The quality is very strictly controlled. At every stage, non standard products are rejected.
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Currently, Dhaka Tobacco industries produce eight brands of cigarettes. These are Navy, Legend White, Five Star, Red & White, K2, Surma and Diamond. Approximately one billion cigarettes are produced per month by the companys factory in Tongi, Gazipur.One hundred million of the Navy brand are exported quality and are sold in Dubai, London. In storage, the tobacco is kept in air-conditioned and moisture controlled rooms where its perfection can be maintained for up to two years. The bales of processed tobacco are sliced in uniform sizes and ground. This is stored in the blending silos in specific ratios. The tobacco (lamina) is moistened, cut and dried. Some of the excess stem produced in National Leaf is also used. It is fed into a conditioner using auto feed. Then, it is cooled and stored in silos to be processed further when necessary. A stem roller is used to flatten the stem so that it is ready to be cut first by the cutter and then by a millicutter. It is moistened using steam in low pressure and dried to attain the desired level of humidity. At this point the lamina and stem come together in the mixing cylinder where chemicals are added. There are different silos for each blend and the cut tobacco is stored in these. Four Rotary feeders are involved in transporting this to the secondary manufacturing department. A Molins Plug making machine makes filters. The filter making machine is capable of making plugs of different length and dia. There are cigarette making machines of various brands and speeds. Recently, the company has invested in Molmac Mark 9 machines. They are equipped with a system to remove ferrous material and stems from the tobacco supplied to the machine. In addition, there is an automatic system of weight and density control to maintain uniformity. Focke Hinge Lid Packers are used for packing cigarettes. Quality Test Module is used to test the circumference of cigarettes and filters using a laser mike head, the total ventilation with closed ventilation zone and the pressure drop in cigarettes is a completely encapsulated condition. The percentage of moisture, nicotine and sugar in various blends is found using the Infralab TM Gauge. A Tobacco Oven determines the total oven volatile content of tobacco and stems. There are a variety of other installations to measure both physical and chemical properties, with the most impressive being a latest smoking machine. The machines run around the clock except on Friday when most of the maintenance work is done. The well disciplined environment and efficiency of this factory has caused man multinational companies to offer us deal to manufacture their product in order to supply the subcontinent.
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A REPORT ON CONSUMER BEHAVIOR ON Akij Textile Mills Limited (ATML) is a sister concern of Akij Group. Since 1998 Akij Textile has been operating its business by supplying excellent quality Yarn primarily in the export market. The yarns produced by ATML are sold to the export oriented knit & woven garments industry. ATMLs production capacity is around 50 tons per day - 25 tons combed & carded from Ring Spinning, 20 tons from Schlafhorst Autocoro & 5 tons from BD Rotors. The mill can produce all yarn counts from Ne 6/1 to Ne 100/1. The counts mostly being produced are Ne 20/1 to Ne 40/1 combed & carded 100% cotton yarn from Ring Spinning, Ne 6/1 to Ne 26/1 from Schlafhorst Autocoro machine and Ne 7/1 to Ne 16/1 from BD Rotors. The blow rooms are equipped with Vision Shields foreign fiber (contamination) detectors. From the process of bale breaking to the packaging of yarn, everything is done with automation & state -of - the -art- technology. Quality is of utmost significance and is therefore very carefully controlled. Beside other routine equipment to measure various properties of the cotton, sliver and yarn, the lab is equipped with a H.V.1 spectrum. It is used to check the suitability of the cotton from each bale and according to the results, the bale would either be accepted or rejected. The software in the machine is able to select the bales which do not meet the set standards and compile a list of them automatically. The Uster T4 is used to test sliver, roving and yarn. It measures thickness variation per kilometer. Frequent samples are taken and tested meticulously. The level of computerization of the machines on the factory floor also means that their performance can be monitored from the lab. For more information visit http://www.akijtextile.com/
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A REPORT ON CONSUMER BEHAVIOR ON many species becoming scarce. The rate at which objects made of wood need to be replaced is greater than the rate at which most trees grow. Particle boards are longer lasting, less expensive and greener alternative of wood. A lot of the scrap wood produced by various factories in the group is recycled to be particle boards. The wood is put into the Kolckaner drum chipper to be made into small pieces and then into the Maier flaker. By this time, the wood is reduced to very small chips. A hammer-mill is used to crush these chips and then pair of coupled driers dry them. A refiner is used to make the chips even finer and a screener separates the various sizes of chips. Coarse and fine chips are put into separate silos. These are separately weighed by two batch-weighers and put into the glue blender where they are mixed with glue, paraffin wax and hardener. Each is blended separately and the fine and coarse chips receive different amounts of the chemicals. These blended chips then go to the former and come out of its three outlets. The first and third one is for the fine chips and the second for coarse chips. As a result a three layered, reinforced particle board is produced with fine particles on the external layers and a layer of coarse chips inside. There is an online moisture meter in the forming machine. An automatic weighing scale is involved in the quality control of the boards which are 4feet x 12feet.The thickness currently in production are 19mm and 12 mm. From the forming machine, the boards go to the Diffenbachger autopress and then to edge trimming, sanding and master sanding. Some of the boards are also veneered with woods such as teak.
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A REPORT ON CONSUMER BEHAVIOR ON printing posters. A state of the art new printing machine is able to print front-lit, back-lit and other types of signs on a variety of media.
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A REPORT ON CONSUMER BEHAVIOR ON a) Five Star b) K-2 c) Surma & d) Red & White DTIs market share in this segment is about 50%.
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PRODUCT PROFILE
Product: MOJO Cola
It has been a long time that Akij Food & Beverage Ltd. has been established at a beautiful site Krishnapura, Dhamrai of Dhaka. It has come with the best food & beverage in Bangladesh. Among its beverages (Lemu, Speed & MOJO); MOJO is the most popular drink among the young people as well as the children for its fantastic packaging, TVC and good taste.
MOJO was launched on 14th April, 2005 at Pohela Baishakh. Introduction of the brand MOJO became very popular among its consumer because of the high quality and intensive distribution in every nook and corner of the country. MOJO focuses on mainly young people who like the enjoyment and fun. The word MOJO has come from the word Moja (tasty). From the very beginning of its launching the company has provided subsequent and continuous heavy advertisement through different mess media. It has also given free samples to the target market. It also did an exclusive road show and their exposing to the customers during the Trade Fair 2006 was very much gorgeous.
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A REPORT ON CONSUMER BEHAVIOR ON As a part of its success it can be mentioned here that during this recent year the company earned 54 crore only selling the MOJO where 52% of total sale has been made in Dhaka city. That means it has been very much popular in Dhaka city than any other division.
Manufacturing
As a member of the Akij Food & Beverage, MOJO is manufactured in the factory which is situated in Krishnapura, Dhamrai, Dhaka, Bangladesh.
Packaging
The beautiful and colorful packaging of MOJO attracts the customer. It consists of red, white, black, blue, yellow, and green and so on. It includes some everyday aspects of our day-to-day life such as rickshaw, truck are plying on the road, building, football, cricket ball, cell phone, antenna, electric wear, a boy with a guitar. The size of bottle (specially the 250 ml) and can is handy which the customers like most. The packaging also includes the ingredients of MOJO. The word MOJO has been written in both English and Arabic.
Ingredients
The ingredients that are used to make the MOJO are1. 2. 3. 4. 5. 6. Refined Sugar, Carbon Dioxide, Natural Flavor, Caramel Color, Acidulate, Caffeine etc.
Nutrition
Nutrition facts per 100 ml are Energy = 43 k cl. Fat = 0.00 gm Protein = 0.00 gm Carbohydrate = 10.5 gm
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A REPORT ON CONSUMER BEHAVIOR ON Lifestyle The targeted market of MOJO is basically young generation who like gossiping, chatting, hanging with friends, making fun, watching movies, listening music etc. MOJO has also focused on their customers lifestyle in product, advertising and packaging. Personality The customers of the MOJO are mostly action oriented people which include especially the experiencers. It also focuses the personality of the status oriented people including achievers and strivers.
The MOJO Cola has been made with a proper technology. So there is no chance to occur fluctuation in taste. The cola drinks contain a very strong taste which can compete with the market leader Coca-Cola and RC cola.
Price
The three different sizes of MOJO cola have been priced differently. 250 ml bottle = 15 Tk. 500 ml bottle = 25 Tk xix
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A REPORT ON CONSUMER BEHAVIOR ON 1 liter bottle = 40 Tk. 2 liter bottle =70 Tk 150 ml can = 15 Tk.
Here wholesalers take 0.5 -1.5 tk and retailers take 2.00-2.5 tk as profit. Again comparing to the competitors product, the price is low enough to encourage the target market to shift their brands towards MOJO.
Promotion
The MOJO Cola has been targeted for the young generation is designed for fun loving young adults. Television, Newspaper, Radio Today & Radio Furti, poster, shop signs & Billboards,
Street/road Show & Concerts - all are used for promotion of MOJO, Sponsorship of different special event such as reunion, Free sampling of MOJO has been done in many Universities as operant conditioning to motivate the people to make the second purchase. MOJO has also gone for an innovative idea during this Cricket World Cup Cricket. They have also made the worlds largest cricket bat (70 feet), which has created a big attraction of the target customers.
Place
The distribution of MOJO is strong enough as it is quite available in every targeted area. To distribute this product the company follows the following distribution channelxx
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Manufacturer
Retailer
Consumer
For the product availability the customers can get MOJO at any place when they need it. It is seen that this product has been successful to occupy the refrigerators in the outlets so that is found chilled.
DISTRIBUTION CHANNEL
Manufacturer (Akij Food & Beverage Ltd)
Retailers (Countrywide)
Demographic Factors
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A REPORT ON CONSUMER BEHAVIOR ON Age Age is the major determinants in targeting the consumers. MOJO reflects the Bangladeshi culture and it represents youth. From our survey, we have found that MOJO is most preferred in the age group between 20-25 years (85% of 100). Moreover, the least MOJO preference comes from two age groups: 25-35 years and 35-45 years, about 1%.
AGE
More than 45 1.0% 35-45 1.0% 25-35 4.0% 15-20 9.0%
20-25
85.0%
distribution customer
Sex Beverage is used for thirst-quenching purpose and this product is gender neutral, meaning there is no such kind of obligation to consume the product for male or female. However, from our survey outcome, we have found that 71% of the consumers are male and 29% are female from 100. All the respondents are from urban location.
SEX
female 29.0%
male 71.0%
Gender target
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A REPORT ON CONSUMER BEHAVIOR ON Occupation & Income Consumers purchasing pattern, lifestyle and status largely depend on their occupation and average monthly income of the family. The social class of the target respondents was determined by their income or taking from family. MOJO is a low involvement product and it is good enough to consume by upper and middle class. From the survey respondents, students are the most who purchase MOJO and their income level is less than 5000 taka. Business people, private service personnel and other earning people consume less amount of MOJO although their income is comparatively high than the students.
OCCUPATION
P rivate Service Other 3.0% 6.0% Businessman 3.0%
Student
Figure 4: Occupation
88.0%
INCOME
More Than 20000 5.0% 10000-15000 4.0% 5000-10000 25.0%
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A REPORT ON CONSUMER BEHAVIOR ON Figure 5: Income/taking variation of target customer Favorite Pastime Our survey respondents are giving most of their time in watching TV or movie for their pastime about 42% and reading books on average about 24%, less time in traveling about 1% and others cumulate about 33% such as hanging with friends, playing outdoor games, computer game or psychological gaming etc.
FAVORITE PASSTIME
Hanging with friends
3.0%
Traveling
1.0%
Playing outdoor game
6.0%
Computer Game or Psy
7.0%
Listening to Radio Reading Books
4.0%
Teleconferencing
24.0%
Chatting over net
6.0%
Watching TV or Movie
7.0%
Figure 6: Favorite
42.0%
Other Factors
Meaning of MOJO Meaning of MOJO is the idea or feeling the respondent have instantly after hearing the name or analyzing it. To 60% respondents, MOJO means fun or enjoyment. To 14% it means nothing. In addition, other 26% varies within music or art, sports, thirst passion etc.
MEANING OF MOJO
Means nothing 14.0% Others 10.0% Music or Art 1.0% Sports 1.0% Thirst 9.0% Passion 5.0% Fun or Enjoyment 60.0%
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Figure 7: Target customers idea about the meaning of MOJO Payoff Line Completion MOJO, its inside you. This payoff line is not well completed by the respondents. This is happened because of their brand loyalty toward other brands. From 100, 45% respondents completed the line but the major percentage (55) left the slogan uncompleted.
PAYOFF LINE COMPLETION
Completed 45.0%
Uncompleted 55.0%
Figure 8: Payoff line recall from the target group Beverage (Soft Drinks) Choice A. 1. Cola 2. Lemonade 3. Fruit juice B. 1. Cola 2. Fruit juice 3. Lemonade
C. 1. D. 1. Lemonade Lemonade 2. Fruit juice 2. Cola 3. Cola 3. Fruit juice Beverage (Soft Drinks) ranking creates the flexibility for the target customers to express their preference toward the beverage preference. From the findings, SOFT DRINKS CHOICE we have experienced that out of 100, 47% people 100 ranked cola focused beverage group aligned with lemonade and fruit juice. 28% of them prefer cola and fruit juice beverage group and less preferred is lemonade based beverage group likings, only 7%. 80
60
Percent
40
47
20
28 18
0 A B
7 C D
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Group
Figure 9: Soft drinks choice of target group Cola Brands Position Our report is on MOJO cola and we have kept this name out of the selection criteria. The motive was to see whether people recommend MOJO or not. The survey questionnaire reveals that out of 100, Zam-zam cola comes instantly in the mind of 7% prospect and so for others (9%). Pepsi cola gains 28% attention and the highest response is captured by coca cola (54%).
POSITIONING
100
80
Percent
60 54 40
20
28
9 Others
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A REPORT ON CONSUMER BEHAVIOR ON MOJO Consumers are not too much traditional but conscious about culture. They want to have MOJO Coal and fun together. Some consumers are traditional as well.
Non-verbal communication
MOJO Cola is using color as its way of non verbal communication. It uses the color white, red, blue, pink and other color in its logo, products, and advertisements. The blue color for male and pink for females. The name MOJO cola reminds few words in the consumers mind. From our survey, we see that the name MOJO cola is pleasant according to many people. Gender Role Cola is always a unisex product. Almost same percentage of man and women consume cola as soft drinks. However, due to the products color and assertiveness image, cola is consumed more by the men than women. Group Influence Choosing soft drinks is more or less an individual matter. When people go to buy a soft drinks, it is seen that different people chooses different drinks. People purchase drinks for themselves but when they are gathered/make party together they buy what their friends like. Types of influence Only informational influence might be present in the choice of drinks. Informational Influence used when MOJO cola came in the market. The best example of that is distributing free sample of MOJO cola in various place. Those who done in it and was impressed recommended it to other group members. Degree of Reference Group Influence It is an able to be seen and non-necessary thing. Therefore, the reference group influence should have been high in both product and brand. Nevertheless, the influence is low in terms of beverage. It is an exception.
Promotion Strategy
Although the reference group influence is low, so MOJO Cola can go for printed media, electronic media, and push strategy and below the line strategy. They can use Road Show, Free Sampling, and Musical show and so on.
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Perception
The first three step of information processing (Exposure, attention, and interpretation) constitute perception. Exposure MOJO is trying to expose itself to its target market through various means. They are: TVCs At the launching period, MOJO cola went for massive TV ads to expose their self to their target aspect. After that came with their new TV ads with the current event. In the time of cricket world cup, they came with their new TV ads, which told us about the largest cricket bat road show. Newspaper MOJO cola covered the main daily newspapers of the country. This helps them to survive in the market. Billboards Some (not that much) billboards have been put up. However, with the billboards, they came up with their new offerings and people became aware of it. Sponsor of the shop They became the sponsor of the by making the shop sign. They covered many shops, which helps them to expose their self. The colorful shop sign is the most important thing, which helps them to make them expose. Attention Attention occurs when the stimulus activates one or more sensory receptor nerves and the resulting sensation go to the brain for processing. MOJO Company tries to gain attention mainly through the following ways.
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Stimulus Factor The Stimulus Factor that MOJO uses are Size Big billboards and Shop signs are the best example. This generates response among the people with the result that people test it and became a loyal customer. Color & Movement The TV ads are very colorful. The brochures are also so much colorful which helps MOJO to create response among the target aspect. Position In newspaper, they place their ads in the front or last page, which is the reason that it succeed to attract their customer. Most of the time they place their ads at the right hand corner of the page and that helps to grab the attraction. But most of the time the placement of their billboards is wrong. For this sometimes they fail to grab the attention of the people. Slogan Its inside you, as this is a low involvement product so it is good strategy to keep the slogan short. People think a little while they are purchasing a cola so this easy slogan helps them create attention. Individual Factor When people are thirsty, which is usually short term, people tend to notice and get attracted by soft drink ads, which present their drinks in an attractive way. By TV, ads and the shop sign MOJO cola trying to grab the attraction. When people are thirsty then they do not think what I am drinking they just remember the ads and or see the ad and buy it. Example: Near the shopping mall, cruddy area such as Stadium etc. Situational Factors Program involvement MOJO targets the young generation who are more interested music, and they are serious making these people aware. By giving sponsorship of underground concert they and other general concert they creating awareness among the people. Non- focused attention Hemispheric Lateralization MOJO is trying to influence the right side of the brain. We know an image can tell a thousand words. Their imagery representation helps them to create more response from their target aspect.
Interpretation
Interpretation is the assignment of meaning of sensations. The factors that effect the interpretation of MOJO are the following: xxx
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Individual Characteristics Expectation The expectations of individuals should match with the individual interpretation. MOJO cola trying to influence the youth through its color, informal language etc. this type of approach helps them to match with their expectation. People like those things what they expect, so as their approach is good so people found that what they were expecting. Stimulus Characteristics Logo The logo of MOJO is attractive and representing the youth although they did not forgot about the aged people. Therefore, this helps them to get a good result. Soul feeling All the multinational soft drink companies-showing advertisements are made abroad. In this case, MOJO cola differentiated themselves. They are making the ads in our country, as they want to be the cult brand. As they are, doing this so people can feel that it is our cola and I am buying my soft drink that in terms help them to feel good. Therefore, people have a soft corner for them in their mind. Packaging Packaging also helps in the perception process. Attractive package can grab peoples attention. MOJO cola know this and they are concentrating on it. The two most critical job of packaging are: Capture Attention The colorful packaging catches the attention instantly. People like colorful things and they go for colorful things. That is why within a short time MOJO cola got the attention of the target aspect. Convey Meaning The colorful packaging conveys the meaning that MOJO is a youthful product. Mixing up the brand with colors, which have a meaning, is sensible. That gives people meaning and they went for it.
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A REPORT ON CONSUMER BEHAVIOR ON behavior. Learning about MOJO Cola is for the most part low involvement learning state of affairs.
Conditioning
Classical Conditioning MOJO advertisements are using the classical conditioning. The ads show youthful and fun. So anything we have to get fun with we think of MOJO. MOJO Cola advertisements use an established relationship between a stimulus and response.
Figure 11: Consumer Learning through Classical Conditioning After looking a billboard or TV advertisement there will some emotion with the learned information or affective response. When this affective response leads to learning about the product or lead to product trial. Example # 1 Snap Shot from MOJOs TVC Classical Conditioning As cricket generate a positive response to us, associating cricket with MOJO through TVC can increase the chance of generating the same positive response to the brand Example # 2 Snap Shot from MOJOs TVC Classical Conditioning As Bakharkhani (traditional food xxxii
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A REPORT ON CONSUMER BEHAVIOR ON of Dhaka) generate a positive response to us, associating Bakharkhani with MOJO through TVC can increase the chance of generating the same positive response to the brand
Operant Conditioning Here the reinforcement plays a grate role in operant conditioning. Free MOJO was distributed in various places; from there the people taste the MOJO. Therefore, it is operant conditioning here. In order to influence consumers to consume MOJO Cola, the company gives discount for bulk purchase.
Affective
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Example # 3 Newspaper Ad Operant Conditioning Encouraging the target customer to participate and win some attractive prizes by consuming MOJO. This partial consumption can lead to a permanent change in behavior in future
Cognitive Learning Cognitive learning of MOJO Cola encompasses all the mental activities of humans as they work to solve problems or cope with situations of MOJO Cola. Modeling Observing the outcome of others behaviors and adjusting their own accordingly is known as Vicarious or Modeling. Here involvement will low or high.
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Memory
It is the total accumulation of prior learning experience. Memory include two components 1. Short term memory 2. Long Term Memory Short-term memory Maintenance Rehearsal 1. Repetitions of bill boards on the high ways 2. Repetitions of Television commercial (advertisements) 3. Posters Long Term Memory Three types of memory are of interest to the marketers. 1. Semantic Memory: The awareness of the product (MOJO Cola) e.g. MOJO is fun beverage. 2. Episodic Memory: Memory of a sequence of events in which a person participated. In term of MOJO it may be a long drive or rickshaw. 3. Schematic Memory: Different concepts and episodes. The schematic memory of MOJO is presented below. MOJO
RED
PARTY
DIFFERENT
COLA
YOUTHFUL
CINEMA
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A REPORT ON CONSUMER BEHAVIOR ON and an ideal cola drink in a semantic differential scales. In order to evaluate it, we also asked them to place their beliefs about the RC Cola. We thus compare MOJO Cola with RC cola. We then took the simple average of the respondents beliefs towards the drinks of RC cola, MOJO Cola and an ideal drink on each factor. The position of these averages on the scale, the weight age of each factor and the results are given below of each type of beverage. Table 1: MOJO Cola vs. RC Cola 1 Sweet Taste Low Priced Good Quality Product Healthy Low on Calorie Prestigious Thirst Reliever ____ ____ ____ ____ ____ ____ ____ 2 3 4 ____ ____ ____ _M___ _M_R__ __M__ __M__ 5 ____ ____ ____ ____ ____ ____ ____ Bitter Taste High Priced Bad Quality Product Unhealthy High on Calorie Low on Status Cant Quench Thirst
_M R_ ____ __M_ ____ __R__ __M__ ____ ____ _R__ ____ __R__ ____ ____ __R__
Here, M = MOJO Cola, R = RC Cola Given weight: Price =15%, Prestige =18%, Quality = 20%, Health = 8% Calorie = 7% Thirst Relieve = 12% Taste =20% Attitude toward MOJO Cola = 55.78 Attitude toward RC Cola = 54.65 About the taste is concern, we found that RC is in better position (0.02) than MOJO (0.13). On the other hand, MOJO should not worry about the price because it is comparatively better (0.02) than RC (0.23). Others factors are slightly more or less same, except prestigious factor. From the survey, we found that MOJO (1.03) is lagging behind about the prestigious issue than RC (0.71). Therefore, MOJO should promote its cola in a more prestigious way for its consumers. About the quality concern, MOJO is also lagging behind the RC. The average quality for MOJO is 2.93 and for RC it is 2.86. To compete in the market MOJO has to provide more quality product at this current price level, because the ideal price of cola is low. Consumers felt that MOJO (2.75) is better for thirst relieving comparing with RC soft drinks (2.87) and consumers are happy with the price(2.54) of MOJO soft drinks and we see it matches
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A REPORT ON CONSUMER BEHAVIOR ON with the ideal price (2.56) level, in contrast RC is lag behind about the price matter (2.79). Regarding the issue of health and calorie the two cola is almost in the same level. That is for MOJO the health and calorie level is 3.24 and 3.2 respectively. In addition, for RC cola the health and calorie level is 3.24 and 3.32 respectively. Calorie level of RC is slightly much than MOJO cola, according to the survey.
N.B. Here every attributes is scaled in a 5 points scale from upbeat (1) to downbeat (2). So lowest value represents the positive and highest value represents the negative.
Table 2: MOJO vs. Ideal Cola 1 Sweet Taste Low Priced Good Quality Product Healthy Low on Calorie Prestigious Thirst Reliever __I__ ____ ____ ____ ____ __I__ ____ 2 _M _ _I_M __I__ __I__ ____ ____ __I__ 3 ____ ____ __M_ ____ __I__ ____ ____ 4 ____ ____ ____ _M__ __M_ __M_ __M_ 5 ____ ____ ____ ____ ____ ____ ____ Bitter Taste High Priced Bad Quality Product Unhealthy High on Calorie Low on Status Cant Quench Thirst
Here, I = Ideal Cola M = MOJO Cola Given weight: Price =15%, Prestige =18%, Quality = 20%, Health = 8% Calorie = 7% Thirst Relieve = 12% Taste =20% Attitude toward MOJO Cola = 55.78 If we compare the MOJOs average results of factors with the result of the Ideal cola, the difference is not enormous. The difference we have seen between Ideal and MOJO is in the issues of health, calorie, prestige, and thirst reliever. Surveys average result for MOJO in healthiness is 3.24, for calorie is 3.2, for prestige is 3.29 and for thirst-quenching is 2.75. That is, the most of the consumers do not feel that MOJO is related with prestige. In contrast, for ideal coal consumers have shown that they are seeking a little bit prestigious cola (2.26) at a reasonable price. Though the difference between the price of MOJO and Ideal is not varied too much, that is 0.02. However, the level of prestige is a bit lags behind; that is 1.03. So without bothering about the price MOJO need to increase its value regarding the prestigious issue, by showing status oriented advertise. Its also have to be more concern regarding the
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A REPORT ON CONSUMER BEHAVIOR ON matter of thirst reliever. Because some of consumers are seeking to relieve their thirsty when they are taking any type of cola, and most of our surveyed consumers are feeling that MOJO cannot quench thirst. Therefore, MOJO needs to modify the product composition to relieve the thirst of consumer at a minimum level. The above analysis shows that the consumers belief about RC Cola is more favorable when they talk about price and prestige compare to any other soft drinks. Measurement of the Affective Component The affective component reflects the consumers perception or emotional reactions towards MOJO Cola. As it is a new product compared to strongly positioned Coca-Cola and Pepsi products, it has not yet built the emotional bondage like them. To measure the affective component, a Likert Scale was used. The scale along with the total results is shown below: Table 3: Measurement Affective Component
Strongly Agree I think the quality of MOJO is good MOJO promotes Bangladeshi culture MOJO is convenient MOJO is good for health I like MOJO __8__ __2__ 16__ __6__ __14_ Agree Neither agree nor Disagree __54__ __56__ __58__ __32__ __40__ Disagre e __16__ __22__ __8__ __40__ __8__ Strongl y Disagr ee __8__ __10__ __4___ __8__ __6__
The table clearly shows that MOJO has not positioned itself very positively in the consumers mind. Most of them neither Agree nor Disagree about MOJOs traits but not many of them agree that MOJO Cola is overpriced, which is very good sign. But the best thing that MOJO Cola did, as the survey shows, was make the consumers feel that MOJO is convenient, youthful, non-traditional and fun ,which was one of their objectives. These can thus become a basis for influencing cognation and creating a preference for this product.
Percent
Measurement of the Behavioral Component From our analysis, it was found that 17% consumer had drunk MOJO last time. 80 Moreover, it is very good rate because MOJOs close competitor RCs rate was 18%. 49% consumers drank market leader, Coca-Cola and others were 16%. It shows that people consume MOJO 60 frequently.
49 40
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Brand
Figure 14: Target Groups last Consumed Cola Survey result shows that consumer usually drinks the Coca-Cola (64%), RC Cola (11%) and MOJO (10%) and other brands (15%). If we compare with RC Cola MOJO has a good potential to outdo RC in future. However, MOJO is steel in a poor position with respect to big brands like Coca-Cola and others.
80
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Other
Still MOJO has the chance to change the consumers buying behavior. Consumers are not fully sure about their intention toward buying MOJO. 30% of the consumer said they would probably buy MOJO next time and 39% said they might buy. And very few said (less than 10%) that definitely the would buy. It says about 70% consumer are the potential. xxxix
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0 Definitely w ill buy Probably w ill buy Might Buy Probably w ill not bu
Figure 16: Probability of consumption MOJO next time by the target Options group
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A REPORT ON CONSUMER BEHAVIOR ON MOJO may try to add belief to consumers belief structure. Such as MOJO can promote it self as: The Icon of Bangladesh. Change Ideal The final way to change the cognitive component is to change the perception of the ideal brand or situation. Such as MOJO can try to defocus consumers perception on establishing brand by focusing their weak side, like: All colas are pesticide but not we! To Change the Affective Component It is increasingly common for a firm to attempt to influence consumers liking of brand without directly influencing either beliefs or behavior. MOJO may use three basic approaches to directly increase affect: Classical Conditioning, affect toward the ad itself and mere exposure.
Classical Conditioning MOJO can pair the stimulus that consumer like such as music, festivals, sports or Bangladeshi Life Style with the brand name to transfer the same positive affect associated with those stimulus. Affect toward the Ad/Website The launching advertisement of MOJO was liked by all over the country. However, ineffective timing of telecasting and unavailability of products in the retail stores reduced the success. Therefore, it should focus more on those issues to skim the success. There has to be a direct relationship between the promotional message and the selling activities. On the other hand, MOJO should redesign or establish a new separate website and upgrade it frequently to attract and retain the technology conscious or the young consumers. Mere Exposure As the repetition of advertisement for low involvement products, MOJO can increase the liking and subsequent purchase of the brand without altering the initial belief structure. Therefore, MOJO should focus more on repetitive advertising as it is much behind from its competitors in this issue. To Change the Affective Component Behavior can lead directly to affect or to cognition or to both simultaneously. Changing behavior prior to changing affect or cognition is based primarily on operant conditioning. MOJO usually follows free samples and price reduction option. Nevertheless, it can also use the other option like Coupons, point-of-purchase displays, tie-in purchase etc. Moreover, the company must ensure a fair distribution system to
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A REPORT ON CONSUMER BEHAVIOR ON achieve the maximum success and avoid the chance of making the consumer to switch to other brands.
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Motives of Buying
The basic motive for consuming cola is smoggy. Actually, there is no particular motive behind having a cola. Some consumer consume cola to enhance selfPage of 44
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A REPORT ON CONSUMER BEHAVIOR ON esteem, some for quenching thirst, some as social drinks and some for habit. On the other hand, all company is offering almost same types of cola, but consumer preferring one brand to another. The logic behind this fact is the taste, price, quality, status; according to the consumers. At present, MOJO is trying to motivate its consumers with standard quality product at a relatively low price. It is also trying to motivate the consumer by promoting their cultural and nationality to build loyal customer base.
DRAWBACK
From our viewpoint; based on the survey analysis, the following drawbacks were found: 1. MOJO is low on status 2. It is relatively walking behind in the case of quality 3. Insufficient & unorganized communication of the brand itself
Billboards
In this case, MOJO cola is still beside of their competitors. We can find out that the percentage of MOJO colas billboard ads are very little with compared to their competitors. Around
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A REPORT ON CONSUMER BEHAVIOR ON the country, they failed to bring their concentration on it for this there is little awareness among the people. As an example in Dhaka city, MOJO cola placed their billboards in some places where it is very tough to attention of the target customers.
Paper Ads
At the time of their launching MOJO cola went for the paper ads but now days we rarely see ads of MOJO cola in the newspaper. This field also can be defined as the drawback of the promotional activity of MOJO cola.
TVCs
They are good with their TV ads but they must increase the number of their ads. Otherwise, people will forget their name. They are trying to establish their self as a cult brand of our country and their ads also representing it. Therefore, without huge investment in the advertisement, they will fail to grab the attention in the near future and they will suddenly reach to extinction.
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Paper Ads
The number of paper ads should have to be increased. Otherwise, they cannot make mass people aware about their product. It should also contain high imagery, relevant with product MOJO cola.
TVCs
The frequencies of the TV ads have to be increased. People who watch TV regularly are seeking for innovative things made by the marketers. They pretty much bored with the traditional ads. So if MOJO cola bring new thing with their ads them it will be a turning point for their sale. People will get more interest in their product and as a result, they can be the loyal customer of this product. So TV ads should be brought with a new format, with more new things so that it can catch the target aspect with the new ones.
Sponsorship
Till now MOJO cola make sponsorship of few events like concerts, nabanno utsav, bangla noboborsho etc. they should include cyber caf, canteens of university, fast food shop and other places where people goes frequently. By doing so they can be with the target audience and we will find more aware people.
Sales Promotion
They should in for massive sales promotion to attract people from other drinks.
Road Shows
When they first came in the market, they arranged road shows in some prestigious universities in Bangladesh. Frequent road shows can be effective for them. During world cup football and cricket they arranged world cup mania, and if they do so once or twice in a year that will be more helpful for them in the future.
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A REPORT ON CONSUMER BEHAVIOR ON They should supply their own refrigerators to the retailers, so that the drinks can always be kept cool. The supply of drinks should meet up the demands. If they supply less then people will fail to purchase MOJO cola whenever they intend to buy them. Therefore, in this field they need to bring their concentration.
CONCLUSION
People prefer MOJOs pricing but it has to improve its image in status and quality issues. Unfortunately, MOJO is lagging behind due to inadequate communication of its brand elements like slogan, names meaning etc. It has also failed to communicate its own positioning to the target consumers. However, still now MOJO has the chance to recover its own position because about 70% of the target customers (according to the survey result) are potential and have not constructed their belief structure for MOJO. For some particular aspects of consumer behavior such as perception, attitude, self-orientation and life style etc, those recommended strategies provided with the report will be supportive to recover those issues successfully if MOJO can apply those suggestive marketing tools.
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