Team B 1 Consumer Behavior Case Himalaya

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MARKETING MANAGEMENT

Consumer Behavior and


The Buying Process
Azma Afina (042024353007)
Muhyiddien Ridha Pradana (042024353020)
Ratna Dyah Kusumadewi (042024353024)
Indah Ristya M. Arum (42024353064)
Introduction

◦ The concept of product involvement differentiated consumer segments based on the


degrees of personal interest expressed by consumers with regard to specific products
and services.
◦ Marketers always had to face competitive challenges in enhancing the degree of
involvement even in low involvement categories through appropriate branding
initiatives.
◦ The toothpaste category was one such category in the Indian context.
Oral Care Industry

Perso
nal
Care

◦ The average Indian consumers spent


around 8% of their income on personal
care products.
FM ◦ The growth trend of toothpastes over the
CG past three years (11%) was relatively
Food & House
slower than that of several other key
Bevera hold FMCG categories.
ges Care
Toothpaste Industry: Brands and Segment

◦ The toothpaste market in India had a penetration rate as low as 60 per cent.
◦ The key brands on oral industry: Colgate-Palmolive India and Hindustan Unile.
Toothpaste Industry Segementation
Marketing Communication by the Competitors
Himalaya: Company Profile
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Products

Himalaya Dental Cream:


◦ Himalaya’s lead offering in the toothpaste category
◦ Natural ingredients
◦ Priced in the premium tier
◦ Concept “Indulge like a child, brush like an adult.”
◦ Outdoor advertising, but relatively smaller presence in television advertising
Following this, Himalaya went on to launch a range of herbal prescription-based oral care
products — the HiOra range
The lowest number of responses
The highest number of responses
The value with the highest number of responses

SUMMARY:
1. Overall, the niche toothpaste has the highest number of
responses for positive values and has the lowest number of
responses for the negative values;
2. The appealing of the toothpaste has the highest number of
the responses;
3. Overall, involvement levels with respect is moderate
The lowest number of responses
The highest number of responses
The value with the highest number of responses
SUMMARY:
1. Overall, the niche toothpaste had the highest
number of responses for the functions (both
healthy or appearance), and the most trusted
brand among the respondents;
2. The function of toothpaste to fight cavities had
the highest number of the responses;
3. Overall, attitude towards brand with respect is
moderate
The lowest number of responses
The highest number of responses
The value with the highest number of responses

SUMMARY:
1. Overall, the niche toothpaste had the highest number of
responses for the functions (both healthy or appearance)
SUMMARY:
Most respondents said that they had no
oral health problems and the herbal
toothpaste’s respondents got the highest
number of respondents

SUMMARY:
The niche toothpaste had the highest
number of high-involvement consumer
The highest number of responses
The habits and practices with the highest number of
responses
SUMMARY:
1. The niche toothpaste had the highest number
responses of the consumer with strong cognitive
and affective beliefs towards category
2. The herbal toothpaste had the second number
responses of the consumer with strong cognitive
and the third number of consumer affective beliefs
towards category

SUMMARY:
The niche toothpaste had the highest number responses
the consumer with low category involvement who had
strong cognitive and affective beliefs towards brand

The highest number of responses

Cognitive: The Knowledge and perceptions that are acquired by combination of direct experience
with the attitude object and information from related sources
Affective: Consumer’s emotions and feelings about a particular product or brand.
The highest number of responses

SUMMARY:
1. The Colgate Active Salt (niche toothpaste) had the
highest number responses of consumers with strong
cognitive beliefs and affective in line with brand’s
communication;
2. The Dabur Red (Herbal) had the lowest number
responses of consumers with strong cognitive beliefs
in line with brand’s communication;
3. The Colgate Dental Cream (Overall oral care) had the
lowest number responses of consumers with strong
affective beliefs in line with brand’s communication
Findings regarding Habits and practices through out
category

◦ 58% of respondents brush once in a day


◦ 78% of all respondents never visit a dentist
◦ Dentist recommendation:
– 72% of all respondents do not take a toothpaste recommended by dentist
– 86% of respondents change their toothpaste on recommendation by dentist
◦ 85% of consumers have oral health problems
◦ 67% of consumers change their toothpaste to solve a problem

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Interpretation of Findings

• People agree that toothpaste is necessary for


them as depicted by highly negative responses to
questions such as “tooth paste is useless for
me/irrelevant for me/boring for me”,
• But people display more or less a neutral attitude
when they consider the functional attributes
except for niche segment
• This suggests that toothpaste is a low Generally, the number of niche
involvement category with consumers knowing the toothpaste’s consumers had the highest
need of a toothpaste but are not too attached to number of the respondents who gave
functional attributes except in the niche category positive value of that brands

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Components of attitude

◦ Attitude:
Predisposition to behave consistently in a favorable or an unfavorable way.
– Cognitive:
The Knowledge and perceptions that are acquired by combination of direct
experience with the attitude object and information from related sources.
– Affective: Consumer’s emotions and feelings about a particular product or
brand.
Significance of attitude components
for familiar and unfamiliar brands

◦ For familiar brands Cognition mediates the impact of positive affect while negative
affect has direct impact on brand attitude.
◦ For unfamiliar brands Cognition plays less role and Affective attitude takes precedence.
Analyzing Consumer Market
By Kotler Keller
Consumer involvement levels with respect to toothpaste

Consumer responses show all of the 8 negative values are under 2.5, and all of the 23
positive values are above 3.2 (1=strongly disagree, 5=strongly agree)
The path by which a consumer moves through the decision-making stages depends on
several factors, including the level of involvement.
Marketers use four techniques to try to convert a low-involvement product into one of
higher involvement:
a) They can link the product to an engaging issue
◦ It is important to me that my toothpaste is made of natural ingredients only (3.58)
Analyzing Consumer Market
By Kotler Keller

b) They can link the product to a personal situation


◦ It is important to me that my toothpaste protects my teeth from pain when I eat hot or
cold things (3.59)
c) They might design advertising to trigger strong emotions related to personal values or
ego defense
◦ It is important to me that my toothpaste gives me confidence to get close to people
(3.41)
d) They might add an important feature
◦ Toothpaste is essential for me (3.60)
Consumer Behavior &
The Buying Process
JOHN T. GOURVILLE
MICHAEL I. NORTON
How Consumers Make Decisions ?

Considering the factors, such as:

Product Type Context Individual Differences


• A utilitarian • These product is • The very same
purpose : buyers considered for oral product in the very
tend to objectively hygiene same context might
evaluate elicit quite different
alternatives within decision processes
these product based on an
categories based on individual’s natural
how satisfy that tendencies.
purpose.
• Experience goods:
Buyers can’t be
certain that she/he
will like it until trying
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Advertisement
Cognitive Appeals:
The advertisement informed that it’s an adult
toothpaste with ingredients like neem,
pomegranate, miswak, etc. that kept away
adult dental problems.

Emmotional Appeals:
The advertisement rolled out backwards in
time, and opened with a young, modern
woman at midnight. The frames showed that
just before going to bed, a woman had eaten
various of food in a day. The ad continued in
reverse timeline, to show the woman brushing
with Himalaya Dental Cream first thing in the
morning.
https://www.youtube.com/watch?v=UJRC4fBQ0kI
“If you want to indulge like
a child, first brush like an adult.”
Involvement
They were all moderate- to low-involvement consumers rather than strongly low-
involvement consumers, due to several factors:
• Cost
The price is relatively cheap that the purchase does not warrant careful and elaborate
consideration.
• Routine
People use it every day and buy it frequently
• Alternatives availability
Some people believe that all tooth pastes give similar effect/ benefit
• Function
Most of the consumers regarded the category think it is essential to their daily
grooming/health rituals. Hence, they could not completely disregard the category,
although they were relatively indifferent to the benefits and the propositions

Whether a purchase fosters high or low involvement can change over time.
Optimizing Versus “Satisficing”

Satisficing “Good Choice”


In general, toothpaste can be clasified as satisficers. When selling tooth paste to target
customers who believe that all tooth pastes are pretty much the same, companies can
expect them to satisfice.

Optimizing “Best Choice”


Target customers who believe that there are large differences among tooth pastes too,
however, are more likely to try to choose the best.
Compensatory vs Noncompensatory

It depends on the:
• size of the choice set,
• the importance of the various attributes to the consumer,
• resource availability may play a role
• whether a product benefits from compensatory or noncompensatory decision
making

Compensatory
In general, toothpaste can be clasified as compensatory because there is no
comprehensive product. They have to choose the most suitable one, not the perfect.
The Consumer Decision-Making Process

Pre Purchase Purchase Post Purchase

• Search and • Where: • Customer


consideration Exclusive Service.
(if applicable outlets
for certain throughout the
customer) country, and
• Evaluation of had shop-in-
alternatives shop counters
(Total set > in modern retail
Awareness set outlets
> Consideration • How often:
set > Choice Monthly
set > Decision)

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The Consumer Decision-Making Unit (DMU)

Buyer Influencer Gatekeeper Approver

• User • Dentist, • Dentist • Not


Family, Available
Friend

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Recommendation
Recommendation

1. Influencing the Emotional Decision Making through more interesting and engaging
advertisement
2. Shifting Consumer Attitude by educating: (A) their needs (B) benefit of herbal oral
care (C) how Himalaya can fulfill their needs.
3. Market product to Dentist (As Influencer and gate keeper in DMU) through detailers,
especially for Hi Ora range
4. Enter the new niche – proble solving based on the survey result towards market, low
competition

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