Consumer Behavior

December 2021 Examination

Questions 1. A New Positioning Strategy for changed consumer behavior Maggi's recent
safety controversy required a complete overhaul of the value communication strategy to
regain the market position that Maggi had enjoyed for many years in India. Health and
safety had become the fundamental values to communicate to its customers.

1. How would Nestlé convince its stakeholders that the relaunched Maggi was completely
safe for consumption and healthy for all consumers? What strengths, including media
sources and celebrity endorsements, could Nestlé draw from to effectively motivate
customer behaviour? (10 Marks)

Ans 1.

Introduction

Consumer behavior is determined by the manner in which the company and its employees
interact with purchasers. Additionally, businesses who treat customers with respect and
efficiency will have happy clients because both employees and organizations conduct themselves
well. Additionally, Nestle is the world's leading corporation when it comes to providing high-
quality meals and nutrition facilities for consumers and is an important factor in influencing their
families' health and fitness. As I was reviewing the information in previous years, it became clear
that Nestle Maggie products had caused controversy. It directly affected their business growth
and profit level in commercial enterprises. But, the preceding debate located an aggregate of
some harmful substances while preparing Maggie merchandise in Nestlé's business. Those toxic
materials had been lead and MSG that negatively affected the health and lifestyles of human
beings. Also, media and online sources play an important role in disseminating information
about these products and raising awareness in people before they use them.
Concepts and application

●The following are the effects of marketing discourse on customer behaviour: Similarly,
advertising communication and communication techniques affect people's minds and prepare
them to perceive advantages and losses of products into their daily existence sports and use in the
enterprise. Moreover, there are more than one conversation techniques available in business that
assist in motivating consumers' minds and draw their attention closer to business. But, Nestle
suffered several losses in their business due to employees' poor conversation and managerial
talents that affected product fine and fabric used for making these products. Moreover, direct
advertising principles can also be beneficial for this company to control its business troubles.

● Client needs and stakeholders' proposals are key to a successful business: Further, the
corona virus state of affairs is substantially affecting the one-of-a-kind countries and personal
health in business. Furthermore, people are now more involved in their own and own family
health and ignoring the usage of unclean products that negatively affect the mind and fitness of
people. However, Nestle clients are also greatly surprised or amazed while they're attentive to the
information associated with Maggie products in recent years. As a consequence, I think that
customers are starting to become more forgetful of those products since it has quite a few aspects
that adversely affect their mental and physiological health as well as their working minds. As an
example, Nestlé's new marketing tools include virtual marketing, which is their way of
promoting their latest new goods to clients in the market.

● The following are the advantages of celebrity endorsements and media resources in
relation to patron behaviour: Similarly, social media is becoming the most talked-about topic
among businessmen and female workers in today's period since sports on social media are
influencing the lives of employees and providing sources of records, amusement, and keeping
people occupied in a pandemic situation. Furthermore, marketing strategies in enhancing their
one-of-a-kind functions associated with promoting works and marketing their commercial
enterprise offerings using exclusively social media apps and internet programs. As an example,
Nestle is trying to update their old strategies of products advertisement and using new ones that
include choosing one of the notable celebrities of various Hollywood or Bollywood and selling
their launching of products and its promotion on social media or via the use of newspapers.

* The use of promotional mix strategies for the gain and development of Nestle business:
Additionally, promotional enterprise techniques are being invested through top-level dealing
with directors or managers in order to alleviate their doubts and difficulties associated with
satisfying the needs of customers and providing critical services that have an impact on earnings
and client behaviour at the place of employment. It is also all about marketing strategies and
tactics, which may be divided into three categories: direct marketing, public relations, and
advertising approaches, which are all used to specialise in one or more company niches and
influence customers' attention in business. In the case of Nestle, for example, sales promotion is
one of the methods they use to enhance their media communication and upload novel sources of
components into the organisation.

* Identifying the mistakes that have negatively affected or decreased your company's
profitability in the past: Typically, the quality of the product is key to launching a customer-
appealing product while starting a business and launching the product in the current high-
population markets. Moreover, the considerable effect on Nestlé's commercial enterprise is
negative and mixing of harmful substances that aren't exact for each environmental and public
fitness, which enables to steer this corporation's public relations in disaster. However, I think
Nestle wishes to improve its public members of the family to broaden a successful business from
a given case observation.

Conclusion
Accordingly, the above segment has analyzed that the modern business situation and opposition
are undergoing a conversion as a result of the growing level of entrepreneurship and business
acumen of individuals. Furthermore, Nestle has steadfastly remained popular for its coffee and
tea products, which have been notable due to the enormous popularity of coffees and teas among
children and families alike. There have been instances, however, in which employees were
making mistakes due to workload and, sometimes, misbehaving with clients, which has
negatively impacted enterprise requirements on occasion. Nestle maybe understanding their
mistakes from their past blunders and quickly rectifying them, as well as starting a new
enterprise by providing high facilities to the stakeholders and a better future.

2. Reading the case above suggests the segmentation, targeting, and positioning Nestle
Maggi is trying to achieve. (10 Marks)

Ans 2.

Introduction

In addition, the friendly marketing version is STP models, and managers are aware of this model
because it's far giggly used marketing fashions in business practices. Moreover, leaders are
analyzing that this model enables credit streamlining and adding business communication
practices for mitigating the query and questions of purchasers. But, this advertising method
focuses on choosing commercial effectiveness, the most effective and valuable segment of an
organization's business. It allows perceiving the marketing mix and components for positioning
merchandise strategies in business. Moreover, leaders to increase and win techniques for
attracting customers or shareholders to business implement diverse advertising equipment. As a
business owner or worker, communication is one of the core elements which make business
work better, and is of great importance to great work and their operational effectiveness. Further,
while a discussion about product positioning in the industry, investors should take into account
the value of business and capacity attractiveness.

Concepts and application

● Segmentation: Likewise, segmentation is the process of dividing the marketplace and

problems of businesses into smaller groups for better understanding their origins, assets,
and depths of expertise. However, segmentation identifies fashionable economics, media
proliferation, and product excellence in the world market. Moreover, several words,
which include profitable, actionable, reachable, and definable, are considered while
Nestle employees want to improve their ability boom and performances in business. But,
 the main restriction in industry consists of excessive efforts, fees, and time which might
be gambling both tremendous and bad roles for business increase. Conversely, marketing
actions include pricing schemes, commercials, and promotional programs that assist in
altering the market's demands and bridging the gap between business and consumers
needs.

● Positioning: Further, positioning advertising and marketing models to help assemble

issues into specific methods to specify the errors and analyze the gaining knowledge of
conclusion in business. Moreover, it facilitates the research of the place of products and
looks at their suitability by employing several factors together with season and price. But,
distinctiveness and sorts of merchandise are beneficial to designing through considering
positioning business inside the marketplace. Furthermore, once in a while, employees
aren't updating to which merchandise needs to be geared up, which facilitates draw
enormous interest to clients in the business. An additional detail that may be related to
customer belief is any other information that indicates the customer's ability to influence
the price of the merchandise by showing the brand as being a higher one.

● Targeting: Similarly, an advertisement mechanism that facilitates to permit employees to

segment some of the traffic or selecting one of the pleasant visitors influences both
buying and buying nice of commercial enterprise. But, campaign effectiveness is the
leading new aspect that may be added through identifying marketplace targeting
positioning. Moreover, I assume email marketing is a first-rate instance focused on
because employees or enterprise proprietors may be deciding on their target shareholders
and send messages related to their services through email marketing in business. The
agency was able to distribute the advertising techniques into small markets in a style that
would appeal to the agencies' particular needs and then increased the attention of those
agencies to the needs of their customers.

● A comparison of these advertising fashions can be carried out as follows: Similarly,

evaluation components help analyze the three most essential techniques models with
effective manners for stabilizing or confirming one of the fabulous fashions for business
 improvement. Moreover, the site version enables create merchandise into two
components: marketing and positioning mix, probable to appeal to or choose the phrases
audience choice programs. Conversely, the remaining one is segmentation fashions,
typically separating the marketing bureaucracy into notable organizations of shareholders
using different segmentation practices. In contrast, the targeting version enables the
customer to discover the different groups and segments of their customers, which may
assist with identifying the efforts of different business markets.

● Advertising model for the Nestle business enriched with a few changes for
customers' satisfaction: After reading the ultimate four factors of those parts, I assume
concentrated on models may be high-quality for Nestle market because their targeted
customers are leaving their products due to poor or low-first-rate merchandise in the
business. Furthermore, it wishes greater recognition and steady, challenging work to
gather clients and aging, winning their belief to enhance product income and business
price. Conversely, assume I examine a majority of these models. In that case, I suppose
all tactics are vital for each business because these fashions are linked to each different
for evaluating the particular business plan at a competitive time.

Conclusion
Due to this reason, Nestle has included in the 2nd element of the question-answer section the
requirements that it has pertaining to starting markets and first-rate development strategies.
Additionally, targeting strategies have been described as offering substantial business
advantages: understanding the reality of your customers, creating custom-designed products,
understanding capability needs, figuring out how to compete with your competitors, and
increasing your revenue. However, direct marketing has also been a source of success for Nestle
as it has effectively prevented the use of their products in other countries and has prevented
costly product manufacturing to take place in their markets. In contrast, the selection of the target
market has also been determined by considering the specific details of existing products and the
newly invented products being offered inside of the company.
3. Given the growth potential of the industry, changing consumer preferences towards
healthy products

a. Discuss the traditional / modern-day advertising strategies should Nestle Maggi use as a
brand be following to remain a market leader (5 Marks)

Ans 3a.

Introduction

It is important to distinguish modern marketing from traditional marketing since both methods
refer to forms of offline advertising that are not generally very effective online. Further, the
online advertising way of life replaces offline advertising developments in the sense that it helps
maintain, or deal with, social distancing norms in the industry by serving as a substitute.
Advertising strategies are effectively establishing corporations' target audiences or participants in
order to reach the right target audience.

Concepts and Application

● Traditional marketing concepts include the following: Conventional marketing specializes

in the most effective merchandise. It effectively targets challenging work in marketing and
production packages to gain a highly profitable commercial enterprise. However, it's also
contributing as one-dimensional programs that most straightforward target customers are the key
terms for improving enterprise and producing excessive revenue. Furthermore, antique marketing
comets help evaluate income orientation standards and help slender down the clients in business.
For instance, radio and T.V. ads, enterprise playing cards, smartphone advertising, brochures and
flyers, signage, and billboards are one-of-a-kind varieties of conventional marketing that Nestle
can pick by Nestle to do enterprise changes.

● Modern marketing concepts include the following: Similarly, clients' wants and needs are
the primary necessities of modern marketing linked with customer satisfaction. Moreover,
customer orientation is any other word that allows assessing the works of contemporary
marketing. For example, Nestle can introduce different models that specialize in modern-day
marketing in the enterprise:

● Commercials aired on the net

● Twitter and Instagram are two powerful social media platforms
● Apps that automate marketing for businesses
● Websites that sell goods and services online
● Marketing through email

But, push advertising is used for this marketing plan due to the multidimensional work level and
planning to accumulate income services and variable merchandise in a distinctly annoying
business.

● Differences among current marketing and conventional marketing advertisements

techniques: similarly, contrast means these advertising and marketing functions by considering
the professing and accuracy level while talking approximately enterprise works and clients pride
in the business. Furthermore, traditional advertising is one-dimensional because of its
consciousness of products, while modern advertising is multidimensional. But, short-time
orientation and lengthy-term orientation are related to advertising and marketing to fulfill the
enterprise necessities and works. Conversely, broader and narrower concerts are also introducing
these marketing principles in the market.

Conclusion
Therefore, the live advertising shows had been elaborated in different contexts. In addition, the
advantages of traditional advertising were describing easy-to-apprehend audiences or
neighborhood targets and devoting solid creative efforts to the enterprise. Moreover, benefits of
modern marketing include deeper concentration on and consumer engagement that affect
enterprise expenses and greater significant market needs.
b. Discuss how the use of the traditional or modern-day advertising strategies can help
build the motivational factors of buying different variants of Maggi be persuaded by the
tweens lifestyle (5 Marks)

Ans 3b.

Introduction

Today's company requires more motivated workers since everyone is working from home and, as
a result, many people experience a reduction in their level of motivation and mental stability
while doing their daily business operations. Furthermore, motivation implies that someone is
contemplating excellent places of employment that will assist them in doing well in their
respective fields of company.

Concepts and application

● The importance of motivation in the Nestle business model is as follows: In addition,

if any company is facing endured loss, then automatically, workers and buyers are
becoming pissed off and accepting the failure in commercial enterprise. Moreover, most
of the markets of recognizing agree that reports, personalization, and participation
facilitate power motivation in enterprise for adding creatively and positively in business.
But, worker conduct enables reward employees in the workplace in distinctive methods,
inclusive of social, economic, and ethical behaviors in business. Conversely, the
sequential system or motivation consists of behaviors, reward anticipation, adjustment,
coding, and making plans for praise receipts in business.

● The various types of motivation and their relationship with advertising strategy:
further, motivation is diving into numerous classes that include power motivation,
achievement motivation, extrinsic motivation, mindset motivation, competence
motivation, incentive motivation, and affiliation motivation. Moreover, personnel can use
the elements, including competence motivation, fear motivation, strong motivation, and
mindset motivation, to investigate their strengths and compare them with their
 competitors in the enterprise. For example, association motivation applications can
compare with advertisement strategies and use them to examine Nestlé's enterprise and
their improvement. Conversely, for businesses, increase, association, and fulfillment
motivation are high-quality for nullifying the business loss and fear of business failure
that affect startup advertising globally.

● Examples of business models influenced by nice motivations that can be used to be

inspiration for Nestle's business model: similarly, after critically reviewing the
furnished case observe, the excellent motivation organization example for Nestle is
Patanjali business because it suddenly increases their market via deciding on particular
enterprise niches and expanding their communications with customers. Furthermore,
natural products undoubtedly affect consumers' behaviors and their health issues in
commercial enterprise, and it's the crucial business scope or approach of this employer
due to the fact Patanjali makes use of herbal ingredients to prepare its products.
Conversely, Nestle is also trying to keep away from chemicals and other substances when
launching new merchandise kind in the business.

Conclusion
Consequently, the importance of business motivation and high-quality examples has been in
brief brought to enhance Nestlé’s brand values inside the modern enterprise. Similarly, the
compelling reason for Nestle has also been suggesting that it enables to offer an excessive
competency degree amongst people and quick overlaying their business losses inside the current
time.