AFC Japan

Marketing & Business Strategy

 AFC Japan

Buying Behaviour of Consumers

Purchase intention is a very important concept in marketing. The quantity of literature

on this topic is very high. The many studies on the topic have concentrated on purchase

intention as relates to packaged food, food products, apparel, online buying, automobiles and

capital equipment. Studying purchase intention is so important for the companies as it aids

them with their resource allocation decisions. Marketers need to predict purchase intentions

so that they can predict the forecasts for new and existing products (Ajzen, I. (2005, pp 4).

The prediction whether a consumer will purchase a product or service or not is dependent on

whether he intends to purchase it or not. This has been proved and reinforced by many

theories on consumer buying behaviour (Economus, 2010, pp: 126). There are various ways

in which the intention to purchase can be measured but before this, it is essential to

understand what is purchase intentions and how does it relate to the consumer buying

behaviour, adult consumers’ lifestyles and their opinions. The aim of the telephonic survey is

to establish the relationship between consumer’s lifestyle, opinions and purchasing intention

for adult consumers in the United States of America (Ahmad, 2010, pp: 227).

However, on the other hand, there are various ways in which the intention to purchase

can be measured but before this, it is essential to understand what is purchase intentions and

how does it relate to the consumer buying behaviour, adult consumers’ lifestyles and their

opinions. Promotional campaign reflects the needs, trends, views, behavior and habits of

consumers. This approach applies not only when starting a new business, but it is

recommended to continually indulge in market research to rectify problems during and after

the process. It is likely that, once the product or service is launched, emergence of new

competitors or changing consumer habits and behavior, may change the scenario (Arena

BLM, 2009, pp: 12).

Purchase intention

Purchase intention refers to a plan of a person who wants to buy a certain product or

service in the future. This purchase intention may be the product of any of the multiple stages

in the consumer buying process. Consumer buying behaviour involves all the behaviours of a

person and the decision processes that are involved in buying a certain product or service and

using it. There are certain factors that influence the consumer buying behaviour and one of

these factors is the purchase intent (Degeratu, 2008, pp: 78). Although, the two concepts are

related to each other, the order of the two in that which concept becomes the influencing

factor for the other differs from person to person (Evans 2006, p 269). This is to say that

there can be a person for whom the intention to buy will drive the consumer buying

behaviour. On the other hand, there can be another person for whom the consumer buying

behaviour will determine if he wants to purchase a certain product or not. His consumer

buying behaviour can be compulsive and it can even be impulsive (Guiltinan, P.et.al 2007,

pp: 168).

Problem Solving

People need skills which include thorough understanding of people and processes.

They are required to deal to become problem solvers, planners, managers and decision

makers. They should enjoy working with their people, projects and solve problems of and in

their teams. Operations managers should possess following skills specially. The skills are

strong leadership ability, strong analytical and problem solving skills and strong interpersonal

communication skills. Operation management is a field that is continuously being changed

due to international competition. The personnel associated with operation management must

be updated with computer technology, quantitative methods, problem solving techniques

which can be useful in analyzing business systems. This updating is essential to cope up with

the quickly growing and changing markets.

Decision Making

Indeed, when it travels well, the information fosters communication and is, therefore,

factor of cohesion, motivation, effective decision-making and creativity. Identify the

information channels of the company is a force for the employee, allowing him to position

themselves in office and to hold useful information at the right time. If it is found to possess

useful information is essential for an employee, it becomes, therefore, important for the

manager to know disseminate information and knowledge flows used for the development of

its internal communication.

Best Conditions for Decision Making

One of the best conditions under which the decision methods appears to be most

appropriate is mainly based on three (3) conditions (Sniedovich, 2012, pp: 25). Following

are the main three conditions under which decision making is effectual:

1. One of the best conditions for decision making is when the uncertainty is bottomless

as contrasting to well characterized, after there is a comprehensive set of options for

decision, and the judgement challenge is adequately multifaceted that decision

fabricators need imitation models to dash the potential costs of their activities over a

number of plausible circumstances (Newberry, 2003, pp: 23).

2. When the insecurity is well categorised then traditional anticipated utility (predict first

then act) examines are every so often most suitable. In addition to this, if the decision

creators lack a suitable set of choice options they might have little occasions so as to

progress an approach and could do no improved than a predict first then act
 examination. However, on the other hand, if the uncertainty is unfathomable and a

amusing set of possibilities is accessible, traditional qualitative situation methods

might prove as the most effective approaches only if the structure is adequately easy

or well accepted (Sniedovich, 2012, pp: 50). However, it is essential for the decision

makers that they ought to craft the guide lines accurately. This will help them to

connect with the potential actions, along with the consequences having no aid of

simulation replicas (Solmon, 2001, pp: 45).

3. However, on the other hand, when improbability or the effect of uncertainty is deep,

the scheme is multifaceted, and a well structures scheme of decision selections open

the possibility of searching strategies, decision making approaches might prove to be

as the most effective (Groves, 2008, pp: 150).

Marketing Objectives

AFC’s corporate mission is to continuously invest in research and development to

provide its consumer with premium quality supplements to meet health, beauty and wellness

needs (Lifestream, n.d). Company objectives have to be carefully specified in order to

communicate company marketing philosophies from top to bottom. The objectives can serve

as a motivation for employees to strive toward goals, which can allow for a better evaluation

of results (Lamb, Hair, McDaniel, 2009, pp 37-39). Before setting marketing objectives, AFC

should position its products in such a way as to inform and educate potential customers about

its products. For example, AFC should position the product as "natural supplements which

burn fat 24/7.” Furthermore, AFC must also understand the current and potential environment

that LipoDOWN will be marketed in. The company should also endeavour to understand the

target consumer as this will reward the company with maximum results, which in this case
AFC will be targeting at people aged between 25 and 34 years. It is important for the

company to ensure that the objectives are: specific, measurable, achievable, realistic and time

specific (SMART) (Copley, 2004 p. 110).

The marketing objective of AFC should aim to increase market share and brand

awareness of its target consumers in Singapore from 2% to 5% in 2012, increasing

promotional expenditures by 20% to achieve the results. To further reinforce the company

marketing objectives, AFC should strive to tap into consumer needs and satisfy them in terms

of achieving weight loss, and reinforce the purchase decisions of its potential consumers by

educating them about the benefits of the products. In addition, AFC should aim to retain at

least 80% of our customers as repeat users in 2012.

Cost Effective Marketing

The cost effective marketing programs can be achieved through online marketing. We

focus on increasing its presence on the online social media to expand market share. Strategies

targeting the company’s employ different strategies to target immediate consumers such as

celebrities and other models. The targeting strategy includes general consumers, professional

and celebrity athletes and college athletic teams. This strategy is helpful in reaching a large

number of athletes. The second targeting strategy that the company uses is the designing of

product destination. For instance, if a celebrity athlete sponsors a specific brand of energy

drink, the association will be considered successful. Consequently, the advertisement will

reinforce this psychological effect. Finally, the company also targets the consumers who are

prone towards developing product intimacy. These are the people who care about the utility

and quality of the product than the price. This way, price changes does not directly affect in

targeting these consumers (Robson, 2002, pp: 191).

Communication Objectives

Communication objectives are intended to create and stimulate interest and

awareness, and let target consumers know about the products and where they can find them.

Communication objectives are also meant to persuade and convince target consumers that the

product will provide the best value compared to those of competitors and entails reminding

consumers to take action, which means to purchase the product (Fontenot, n.d).

It also means staying visible to the consumers so that they are constantly reminded of

the existence of the products being marketed. AFC communication objectives will be to reach

70% of the target consumer during 4 weeks of marketing campaigns in the selected month.

Pertinent information should be disseminated to target consumers through rigorous

advertising campaigns, which allows AFC to assess brand attitudes of consumers and

purchase intention. To achieve the marketing communication objective, AFC can use the

marcomms mix models to develop marketing tools, of which their focus should be 40% on

advertising, 20% on sales promotion, 20% on public relation, 10% on interactive

communication, and 10% on direct selling.

Identification of Marketing Communication techniques

Any company promoting its products should be able to identify marketing techniques.

The reason for that is to increase awareness of the product to the target consumer. In this

case, AFC should avoid cluster in various advertisements and select the section carefully not

to waste resources and to give maximum results by targeting selected consumer groups.

Print advertisement is one of the marketing communications techniques commonly

used by the company to create awareness, such as advertisement in magazines, newspapers,

billboards, mailers and posters at bus-stops and train station. Awareness may become more
effective by including press releases, which includes releasing product details and

information into the market to gain credibility for the marketing campaign. Companies can

use press releases to drum up interest for their products. Thereafter, event marketing can be

used to create positive emotions about the products by making them physically available for

the consumers to see and feel for themselves and allowing them to get samples, which

influence customers to buy the products.

Marketing collateral can be used during direct selling, which is different from

advertising in that it is often used later in the sales cycle, when prospective consumers have

been identified and sales staff are making contact with them. Sales promotions will be more

effective with the presence of sales staff to entice consumers to make a purchase with given

incentives. Thereafter, interactive media can also be used to advertise AFC LipoDOWN, such

as websites, social media, and interactive marketing that contain appropriate content to tempt

potential customers. Additionally, the product webpage should be able to prove the credibility

and worth through written testimonials from former users of the products. All these are tools

that can be used in a concerted effort to promote AFC LipoDOWN (Lifestream, n.d).

Suitable Media Channels

Media channels have changed the way consumers gather information, research

products and make purchase decisions. Because suitable media channels have the power to

engage consumers makes marketing through this channel highly effective and necessary.

There are many media channels available for LipoDOWN marketers to put out the products.

Billboards are usually used for initial recognition of the product. They are non-traditional

methods of marketing that can be installed in shopping malls, restaurants, spas and streets.
Magazines have also been used for decades by different product marketers to target certain

captive audiences. AFC LipoDOWN can adopt this strategy to reach young Singaporeans.

Magazines written both in English and vernacular, featuring beauty tips, health

advantages of being slim and fashion consciousness, are ideal conduits of product promotion.

For example, magazines such as Her World (published in English) and Icon (published in

Chinese) have been used to promote beauty tips and fashion. Media channels work as a

broader span marketing method that uses cell phones, texts, add-ons and iPods to promote

LipoDOWN products. As such, social media plays an important role in product marketing

and promotion. The advantages of using social media include the fact that vendors are able to

reach millions of people. For example, Facebook has over 800 million users, Twitter has 175

million users and Google+ has 50 million users (Imran, 2011)

Creative Strategy

The main strength of the company has allowed it to differentiate from its competitors

by devising successful marketing strategies. The essential character of marketing lies in its

action orientation. Creative strategies include telling prospects what kind of products they are

going to get and what the benefits of those products are. Targeting the market with creative

strategy incorporates demographics, psychographics, segmentation strategies and

characteristics of the target prospects or population segment. Smart marketers often discuss

both the general target market and a segment of the prospects. Creative strategy is a reflection

and amplification of positioning. The basic idea is that marketing communication is often

used to establish or ‘position’ the product in a particular place in the consumer’s mind.

Product Attributes is part of creative strategy, which features a unique selling proposition,

such as “I use this brand, boy it works.” It is an emotional selling proposition, developing

feelings that relate consumer to the brands; a participatory brand relationship e.g. "I love
LipoDOWN, it helps me to wear nicer clothes". Hence, it is necessary for AFC to develop the

correct message to the target consumer and get them to correctly interpret the message of

AFC in order to make sure the marketing communications work effectively (Lamb, 2005, pp:

36).
 Reference

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