MARK 202 Consumer Profile Report PDF

Preview

Summary

Executive SummaryThis report provides an overview of Ovvio Health’s recommended marketing activities to introduce its vegan, natural protein powders to the market. Such recommendations have been informed by a consumer profile whereby the consumer, M, was used as a proxy for the target market. The pr...

Description

Executive Summary This report provides an overview of Ovvio Health’s recommended marketing activities to introduce its vegan, natural protein powders to the market. Such recommendations have been informed by a consumer profile whereby the consumer, M, was used as a proxy for the target market. The profile was curated through a series of interviews and questionnaires with M. These were employed to gain better understanding of her consumer behaviours, attitudes and reference groups; ultimately reflecting those of the target market. The information provided lead to identification of the target market being 18-25-year-old vegans in New Zealand who value their health and actively seek to optimise it. Based on these findings, marketing mix recommendations have been derived in order to facilitate Ovvio’s successful market penetration. These aim to inform the 4 P’s – price, product, place and promotion. Key recommendations are as follow: 

Price Premium pricing should be employed, with a suggested retail price of $84 p/kg; a 20% increase on normal market value.



Product The powder needs to be void of animal products in order to satisfy the strict dietary requirements of vegans. It’s formula should also be based on empirically proven health benefits. The brand name should also be highlighted, using stimulus discrimination to tie the company with the notion of being healthy.



Place Ovvio’s products should primarily be sold online, with sales being supplemented through speciality health stores like Health 2000 and Commonsense organics.



Promotion Ovvio Health should promote in a predominantly digital format; utilising its website and Facebook advertising. They should also employ India Reynolds as an influencer, to promote their products on Instagram. Ovvio should also utilise comparative advertising, contrasting their natural, vegan protein powder with that of Sculpts – a non-vegan protein powder that is not considered to be natural by the target market.

Should Ovvio implement the above recommendations, they are likely to form a competitive advantage and achieve high market penetration upon introduction.

1

Table of Contents Executive Summary...........................................................................................................1 Table of Contents.....................................................................Error! Bookmark not defined. Introduction......................................................................................................................3 1. Recommendations..........................................................................................................4 1.1 Price.......................................................................................................................................4 1.2 Product..................................................................................................................................4 1.3 Place......................................................................................................................................5 1.4 Promotion..............................................................................................................................5

2. Consumer Profile...........................................................................................................7 2.1 Consumer Decision Making Process.....................................................................................7 2.1.1 Problem Recognition.............................................................................................................................7 2.1.2 Information Search................................................................................................................................7 2.1.3 Evaluation of Alternatives.....................................................................................................................8 2.1.4 Product Choice......................................................................................................................................9 2.1.5 Purchase.................................................................................................................................................9 2.1.6 Post-Purchase........................................................................................................................................9

2.2 Motivations............................................................................................................................9

2.3 Personality and Lifestyle............................................................................................11 2.3.1 VALS Survey.......................................................................................................................................11

2.4 Attitudes..............................................................................................................................12 2.5 Reference Groups................................................................................................................13 2.6 Social Class..........................................................................................................................14

References.......................................................................................................................16 Appendices......................................................................................................................19 Appendix 1: Consumer Decision Making Process interview transcript...................................19 Appendix 2: Motivations Interview Transcript........................................................................26 Appendix 3: Means-End Analysis Table...................................................................................29 Appendix 4: M’s VALS Results.................................................................................................30 Appendix 5: Innovators............................................................................................................30 Appendix 6: Experiencers.........................................................................................................31 Appendix 7: Attitudes questionnaire........................................................................................31 Appendix 8: Attitude results.....................................................................................................32 Appendix 9: Reference groups interview transcript.................................................................33 Appendix 10: Reference groups table.......................................................................................35 Appendix 11: Social Class Interview........................................................................................35

2

3

Introduction Ovvio Health is a new company in the health industry, producing a range of protein powders. Their mission is to provide natural, vegan products which satisfy the needs of healthconscious consumers. The powder will be void of animal-products and contain all-natural ingredients. It will also serve to provide a number of health benefits backed by scientific evidence, such as the inclusion of fermented ingredients for digestion aid. The company wants their consumers to be confident that their protein powder is healthy; being wholly natural, vegan and containing no harmful ingredients. This is reflected in the brand name; the word ‘Ovvio’ is Italian for ‘clear’ thus communicating the company’s dedication to provide product transparency. A nominated consumer, M, has been used as proxy to determine Ovvio’s target market. M is a 21-year-old female based in New Zealand. She has a vested interest in her health – both mental and physical. M also follows a vegan lifestyle, which is strongly upheld by her intrinsic morals and beliefs. Based on M’s responses, the target market selected denotes vegan individuals, aged 18-25, residing in New Zealand, and are seeking to optimise their health. This report intends to outline marketing recommendations for the successful introduction of Ovvio Health. To ensure the curation of an effectual marketing mix, understanding of the target market is essential. Therefore a consumer profile has been detailed based on M’s responses to a series of interviews gauging her consumer behaviours and attitudes. All marketing mix recommendations for Ovvio have been based on said profile.

4

1. Recommendations 1.1 Price Premium pricing should be utilised as the pricing strategy. This is when a product is priced higher

than

normal

market

value,

thus

communicating

greater

value

to

consumers[ CITATION Mag19 \l 1033 ]. Nielsen (2017) defines a price of 20% more than the average price in that category as being premium. With the average price of protein powder ranging from $50-$70 per kilogram, Ovvio should price their premium powder at $84.00 per kilogram. This acts in positioning the powder as not only premium, but as having added-value. This value is derived from health perceptions communicated by its vegan and natural characteristics. A study has shown that 67% of New Zealand consumers are willing to pay a premium for products containing all natural ingredients [ CITATION Nie17 \l 1033 ]. This demonstrates that employing a premium serves to attract a large proportion of Ovvio’s health-conscious target market. Further, the target market reflects the primary type of ‘Innovator’, based on M’s VALS results. Innovators favour luxury commodities and make high numbers of financial transactions. Therefore, a premium appeals to the target market, as it reflects the product’s superior health benefits. Further, M’s secondary type, ‘Experiencer’, is known to spend comparatively high proportions of their incomes on products that make them look good. In Appendix 2, M noted that being healthy made her feel confident, therefore she will be willing to pay a premium to realise this. This holds across the target market, reiterating that Ovvio should employ premium pricing when introducing the new protein powder.

1.2 Product With the target market comprising vegans, Ovvio needs to ensure that no animal products are included in their products. As the vegan community reflects a formal group, they strictly adhere to a plant-based lifestyle. M states in Appendix 1 that as ‘Sculpt’ doesn’t offer vegan powders “it wasn’t an option”. This means that any non-vegan protein powders will automatically become part of the target market’s inept set. Thus, Ovvio’s offerings must be plant-based in order to penetrate the target market. The formula of the protein powder should also be comprised of ingredients with scientifically proven benefits. M’s primary type of Innovator indicates that the target market is receptive to an evidence-based formula, as this group readily accepts scientific findings [ CITATION 5

Str194 \l 1033 ]. With the target market being health-conscious, Ovvio should include ingredients empirically found to enhance one’s health. For example, M noted that she was looking for a protein powder that would aid digestion. Therefore, the protein powder should include fermented ingredients, which are confirmed to satisfy this need [ CITATION Bil18 \l 1033 ]. Further, the brand’s name – Ovvio Health, represents application of stimulus discrimination. This occurs when an unconditioned stimulus does not precede a stimulus related to a conditioned stimulus [ CITATION Sol192 \l 1033 ]. Italian isn’t commonly spoken in New Zealand and thus, ‘Ovvio’ serves as an unconditioned stimulus [ CITATION Sta14 \l 1033 ]. As ‘Ovvio’ is paired with an evaluative word (ie. Health), the meaning of ‘health’ is transferred to ‘Ovvio’, being the unconditioned word [ CITATION Sol192 \l 1033 ]. The target market will therefore undergo classical conditioning to understand ‘Ovvio’ as being a healthy brand. This helps to build brand equity and thus, customer loyalty [ CITATION Sol192 \l 1033 ].

1.3 Place The protein powder should be predominantly sold online through the Ovvio website. This appeals to Innovators, as they’re likely to seek information before purchase and are selfdirected consumers[ CITATION Str194 \l 1033 ]. Selling online means that information search and purchase can occur in the same place. If information satisfies the target market’s needs, they’re likely to buy then and there. Further, Experiencers are spontaneous [ CITATION Str195 \l 1033 ]. This reiterates the notion that they’ll likely purchase as soon as information search and evaluation of alternatives is complete. As such, a comprehensive website with ecommerce functionality will increase consumer convenience and sales. Ovvio should also stock their products in speciality health stores; namely Health 2000 and Commonsense Organics. M states in Appendix 9 that the staff at Health 2000 were the most significant reference group in her purchase decision “especially…given all the alternatives in the market”. Studies show that 85% of consumer seek expert information when considering a purchase [ CITATION Hen14 \l 1033 ]. Thus, a large proportion of the target market will mimic M’s actions, and seek advice from staff at Health 2000 or Commonsense, where staff are considered to be experts.

6

1.4 Promotion As innovators are unconvinced by traditional advertising, Ovvio should promote via digital platforms [ CITATION Str194 \l 1033 ]. Specifically, Ovvio should utilise their own website and Facebook. Owned media affords communication of complex product information. Facebook allows posts to be targeted to specific characteristics, thus ensuring maximum reach of the target market [ CITATION Fac191 \l 1033 ]. Facebook also allows two-way communication with consumers, thus helping to build relationships. This serves to build brand equity and increase customer loyalty. Furthermore, digital media affords videography which appeals to Experiencers, having an emphasised sense of visual stimulation. Influencers should be used to promote Ovvio’s protein powder with Experiences believing that friends are important. Research denotes consumers exhibit similar levels of trust towards influencers as they do their friends [ CITATION Car16 \l 1033 ]. Therefore, Ovvio should use @recipesfromreyn to promote their powders. This account is run by Love Island’s India Reynolds, documenting her vegan lifestyle. Though India isn’t based in New Zealand, the latest season premiere became the highest ever performing episode on Threenow [ CITATION Tho19 \l 1033 ]. Therefore, India offers wide reach to New Zealand consumers. Further, she’s part of the vegan community on Instagram. M notes in Appendix 11 that she regularly purchases recommendations from such influencers. Thus, Ovvio’s target market will trust India’s product recommendations, leading to increased sales. As M underwent extended-problem solving in purchasing protein powder, she demonstrated high-involvement; which will also be demonstrated by the target market. Therefore, shifting brand attitudes in favour of Ovvio is likely achieved through addressing the cognitive component. This should be done via comparative advertising; messages regarding multiple brands that compare them on specific attributes [ CITATION Sol192 \l 1033 ]. Ovvio is targeting health-conscious consumers and therefore wants to be perceived as healthy. To address this, they should promote messages contrasting Sculpt’s offerings with their own. As sculpt is not perceived to offer natural products (Appendix 8), this will highlight Ovvio’s natural ingredients. This strengthens beliefs amongst the target market that Ovvio offers natural, products; an attribute that understood as being healthy.

7

2. Consumer Profile 2.1 Consumer Decision Making Process For the full interview, please refer to Appendix 1: Consumer Decision Making Process interview transcript. All quotes have been pulled from this. 2.1.1 Problem Recognition Problem recognition ensues whenever individual notices a significant discrepancy between their present and ideal state. Need recognition occurs when the quality of one’s actual state decreases, creating distance from the ideal state [ CITATION Sol192 \l 1033 ]. This was exhibited by M when she transitioned to a vegan diet. Veganism demands the elimination of all animal products including meat and eggs, which are primary sources of protein in nonvegan diets. Unless replaced with adequate substitutes, M’s protein level, being the actual state, will decrease. This causes separation from her ideal state of having sufficient protein intake, thus driving need recognition. As a result, M decided to buy protein powered to “make sure [I] still had enough protein in [my] diet”. Need recognition was also demonstrated regarding sustenance. M found that vegan meals weren’t providing enough sustenance and that she was having to eat frequently throughout the day. This proved to be intrusive given her work and study commitments therefore lacking the time to eat every hour. M’s actual state of incessant hunger created a gap with her ideal state of satiation. Therefore, M identified that incorporating more protein would improve meal sustenance, negating the need to eat as often [ CITATION God13 \l 1033 ]. The interviewee also noted that she was experiencing stomach issues and had researched a number of “natural protein powders that…help(s) with digestion”. Again, digestion issues reflect a decrease in M’s actual state. With the ideal state being ease of digestion, M sought a protein powder that was fortified with nutrients helping this process.

2.1.2 Information Search With mainstream protein powders being targeted to a niche market, new consumers often have limited knowledge of the product. This makes internal searches (product information retrieved from memory) problematic. As such, M conducted an external search (obtaining information from third-party sources) before purchase [ CITATION Sol192 \l 1033 ]. Initially, M consulted her mother, who had previously purchased protein powder from a company called ‘Sculpt’. However, M found that it wasn’t vegan and thus it became part of her inept 8

set – the powders M will never consider[ CITATION Sol192 \l 1033 ]. She then turned to Google and found that many protein powders contain whey; a non-vegan ingredient. The presence of whey thus became a key deterrent when narrowing down brand offerings. M then conducted further internet research, naming health.com and nzmuscle as two of the sites she visited. However, she felt exposed to an overwhelming number of alternatives and “just wanted someone to tell” her which powder was best. She decided to visit Health 2000, perceiving the staff to have expertise regarding her needs. During her visit, she liaised with a shop assistant who presented M with a range of suitable products and, explained the various benefits they offered. M noted her interaction with the staff at Health 2000 to be the most significant in her purchase decision. This is consistent with a study demonstrating that 22% of consumers prefer gather information from company representatives, thus highlighting the importance of expert staff in conjunction with online information [ CITATION Har09 \l 1033 ].

2.1.3 Evaluation of Alternatives The interviewee identified ‘vegan’ as being the most important attribute for a protein powder. However, in being a health-conscious consumer, M further sought one low in sugar. Flavour was also important as she planned on consuming the powder in oats or smoothies. Therefore, she wanted one that tasted natural and didn’t alter existing flavours. Specifically, M noted that she didn’t want one that was “overpoweringly sweet”. Additional attributes of importance were that it was a natural product and contained 10-25g of protein per serve. When it came to the consideration of different brands, M ruled out companies that ...