GL BAJAJ INSTITUTE OF MANAGEMENT AND RESEARCH

GREATER NOIDA
(2019-2021)

ASSIGNMENT On Consumer Behavior

Post Graduation Diploma In Management
Term -3

BATCH – 2019-21

Submitted by: Submitted to:

SAURABH KUMAR MS RADHIKA

GM19171 MALHOTRA
SEC A
SESSION 2019-21
 ANSWER 1 (A)
(i)Do you agree with the Assistant and Product
Managers, and why?
Yes, I agree with the product manager and assistant manager that efforts were made in the
right direction, but many factors affecting consumer behaviour were ignored. The reasons
being the following:
1)The company was using the product concept of marketing which is out dated in
today`s era as now producers manufacture products that match consumer`s demand,
tastes and preferences. Therefore, Mr Ash should have focused on the Marketing
concept to produce and market products accordingly.

2) The target audience was limited to the existing customers of the company. Various
new markets must be explored to increase sales. Effective target marketing is essential
to promote and position the product effectively in the market. For example:
 Grooming products for men
 Safe and chemical free cosmetics for babies
 Organic and herbal cosmetics for women

3)The market for cosmetics was not effectively segmented by Mr Ash. Cosmetics
market can be segmented effectively by dividing the market into groups which are
homogenous within and heterogeneous among themselves on the basis of their age,
gender, occupation etc. For e.g. Market can be segmented into:

Working women, Housewife, Teenage girls

Daily consumers, Beauty Parlours, Film Industry
Rich people, Middle class people, Low income group

4)While attention was paid to income and social factors many personal factors such as
Age, Occupation, Lifestyle, personality of a consumer were neglected. For e.g.

Age: Working women, elderly women, Teenage girls all have different needs.

Income : The rich pay more attention to how they look than people with less income.

Occupation : A Housewife has simple beauty needs as she stays at home most of the
time while a working lady has more intensive beauty needs as she goes out of the
home every day and has to look presentable in the office.

Personality : Traditional women and Modern women both have different needs. Some
prefer expensive perfumes while some use natural fragrances like ‘itra’.

Attitude : People have different attitude towards chemicals in beauty products. Some
prefer it while some dislike it and prefer herbal and organic products.
 Lifestyle : While urban people make use of deodorants and perfumes to smell good,
rural population prefers use of soaps, sandalwood and itr to smell good.

5) Keeping the income factors in mind no changes were made in product quantities i.e.
small units of previous products. Keeping in mind the social factors no efforts were
made to use opinion leaders like celebrities or doctors which would have been more
effective in influencing sales than change in product packaging.

6)Existing products were modernised while no attention was paid to new product
development for new potential markets in cosmetics industries. For e.g. Grooming
products for men.

7) No efforts were made to advertise the products to targeted audience or reposition the
brand according to the changing customer taste and preferences. No offers, discounts
or sales promotion activities were carried out by Mr Ash to boost sales.

ANSWER 1 (B)
ii)What other factors, if any, could have been considered?
Suggest a comprehensive plan for changing Consumer
Buying Behaviour.

Other Factors that should have been considered are:

Age – Babies, Teenagers, Middle aged people and elderly all have different needs and
requirements related to cosmetics and beauty products. Therefore the target audience could
have been segmented on the basis of age of consumers.

Occupation – Working ladies v/s Housewife, Clerical staff v/s Top management, Daily
consumer v/s consumers from Fashion Industry . While a housewife, a normal clerk and daily
consumer may have nominal needs and demand basic products, working ladies, Directors and
CEO`s of a company, make-up artists, beauticians, film stars may have specific needs and
high demand for beauty products. Products could have been designed and developed for one
or few segments on the basis of their occupation.

Standard of Living – Rural v/s Urban People, Low income group v/s High income
Group. While rural people and low income groups may make use of soaps and traditional
products, urban people and the high income group are more inclined towards expensive
beauty products. Different products could have been developed for both the segments and
different pricing strategies could have been followed.

Perception & Attitude – Chemicals v/s Organic/Herbal products While some people
perceive beauty products negatively due to chemical ingredients in them some people
recommend them. Market share for both chemicals and organic products could have been
analysed and the more profitable market could have been targeted.
Involvement – Normal consumers v/s Film Industry Consumer segments like make-up
artists, beauticians, film starts will have a high involvement in buying beauty products than
normal consumers. Therefore depending upon the target market packaging and labelling
strategies should have been made.

Culture – Due to different cultural norms regarding appearances laid down by different
religions, men and women of a particular religion dress up and make use of specific cosmetic
products. For e.g. Hindu, Jain and Bengali women use ‘sindoor’ and ‘Bindi’ while Muslim
women do not, Sikh men don’t use shaving products as they are not allowed to cut hair,
Many Jain men and women use white tikka.

Comprehensive plan for changing Consumer Buying Behaviour.

Identi fy Customer Expectati

Ident ify on - Interview customers and understand, from their
Expectat ion
perspective, what they are expecting and what’
what ’’s driving it. This will help you to
educate and prepare your sales reps to adapt to and address the changing behaviors
among their clients.
But don’’
don ’t just do this once — rather, create an ongoing dialogue to keep your finger
on the pulse of your customers and their demands.

Engage Prospects - Create conversations with aspirational customers, and explore

what they value about the relationships they have with your competitors. With the potential
for just a little business, it will benefit you to try to understand their ideal customer-
vendor relationship and how you can best present your value proposition to meet their
needs.

Eval uate Processes and Metri

Eva luate cs - Identify which process and metric
Metr ics
changes are necessary for you to effectively monitor and respond to changes in buyer
behavior. A recent statistic indicates that the amount of face time sales reps spend in
front of customers today versus three years ago is approximately 40% less.

Mobilize Your Leaders - Work with line leadership in a planning session to help
them understand and address the changing business environment. Lay out a timeline for
behavior
in the past, how you are addressing the behavior now, and what you will be
expected to change in the future.

Look to the Future Now - Identify goals for the future and talent skills necessary
to successfully achieve those goals. Be willing to test trends, and be on the forefront
rather than
constantly playing catch up and watching from behind. Take a proactive posture that
promotes interacting with clients and prospects to not only stay in touch but also
anticipate future changes.
 Answer 2

These are the stages that everybody has to go through in their life. Each of the stage

has different characteristics that the marketer uses to target. Based on the characteristics

of the product, a particular target group having the same characteristics are targeted and

marketed to. Let’’

Let ’s look at some products that are targeted towards particular

segment and their

chracteristics.
Bachelor Stage – People in this stage are impulsive buyers and focus

mainly on appearances so they invest more on fashionable things.

Newly Married couples( No children) – Once they get married, they start taking more
careful decisions and long term investment in assets like furniture, car and make
decisions keeping family in mind

Full Nest 1 – Couples having children less than 6 years old. They focus on
settling down as they have a new member in their family, they too make long
term
 investments and mostly real estate brand starget them as they are on the lookout for
new homes to settle down.

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Full nest 2 – Young couples with children between ages 6- 12. They are focusing

on securing their future, as they want their family to be secure in case of any
problems. Hence insurance companies mostly target this family cycle stage.

Example-
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Key Features-
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Key Benefits
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 Full Nest 3 – Old married couples with dependent children. In this stage,

the education of the child becomes important and parent concentrates on that

more. Educational loans maybe a good option for this segment.

Empty nest – Old couple with no children living with them. They have

disposable income as the child is now not living with them and they can
concentrate on themselves. Many vacation planning companies target them.

Thus family life cycle stage matters a lot for marketers as they can then target their

exact population and increase their market share.

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