Case 1

Company’s dilemma A well-known electronics company is introducing a new smoke detector

with a special feature that makes the alarm beep once a minute when the detector’s batteries
are weak and need to be replaced. Assume that the company discovers that in many detectors
the batteries can be too weak to properly operate the alarm for some time before the “beep”
features is activated. Should the manufacturer:

(a) recall and redesign the smoke detector,

(b) stop making the alarm without recall and inform current owners of the problem by mail,
or

(c) continue marketing the smoke detector while informing buyers of the need of changing
batteries regularly?

Q) How can an understanding of consumer behaviour help the company select the most
effective strategy to handle this situation?

Ans- Understanding consumer behavior is crucial in determining the most effective strategy
to handle the company's dilemma regarding the new smoke detector. Here's how it can inform
the decision:

1. Perception and Risk Management

 Consumer Perception of Safety: Smoke detectors are associated with safety and
protection. If consumers perceive the product as unreliable, it can severely damage the
brand's reputation. Understanding how consumers interpret risk and safety cues can
guide the company in choosing a strategy that reinforces trust.

 Psychological Risk: People are particularly sensitive to products that affect their
safety and well-being. Any perception that a product might fail at a critical moment
will trigger negative responses. This highlights the importance of a proactive
approach (option a) to address potential backlash and preserve consumer trust.

2. Customer Loyalty and Trust

 Brand Image and Consumer Trust: For a well-known electronics company,

maintaining a strong brand image is essential for long-term success. Trust is a critical
 component of consumer behavior, especially for products tied to personal safety. A
recall and redesign (option a) may be seen as a sign that the company prioritizes
customer safety over short-term profit, fostering loyalty.

 Transparency: If the company opts to inform current owners of the issue without a
recall (option b) or continues to market the detector with advisories (option c),
transparency will be crucial. Consumers appreciate honesty and may respond more
favorably if they feel informed and protected.

3. Consumer Decision-Making Process

 Post-Purchase Behavior: After purchasing a product, consumers assess whether it

meets their expectations. A product failure, particularly in safety equipment, can lead
to cognitive dissonance and negative word-of-mouth. A recall (option a) could
mitigate dissatisfaction and prevent potential damage from negative reviews and bad
publicity.

 Risk-Aversion in Consumer Segments: Some consumers are more risk-averse and

would prefer a brand that demonstrates responsibility. By proactively addressing the
issue with a recall, the company could capture the trust of safety-conscious
consumers.

4. Communication and Consumer Response

 Framing of the Message: If the company chooses options (b) or (c), how it
communicates the issue is critical. Consumer behavior insights can guide the crafting
of messages that emphasize concern for customer safety and proper guidance on
battery maintenance. This communication should be clear, reassuring, and
demonstrate the company’s commitment to the consumers’ well-being.

 Channels of Communication: Behavioral studies show that the method of

communication (e.g., email, physical mail, public announcements) can impact the
effectiveness of the message. Direct and personalized communication is often
perceived as more sincere.

5. Long-term Consumer Relationships

 Customer Retention: A decision that demonstrates a commitment to safety (such as a

recall and redesign) could strengthen long-term customer relationships and promote
 brand loyalty. Conversely, failing to adequately address the problem could lead to a
loss of trust and decreased market share as consumers shift to more reliable brands.

Recommendations Based on Consumer Behavior Insights:

 Option (a) – Recall and Redesign: This option, while costly, demonstrates the
company’s strong commitment to safety and reliability. It is most likely to preserve
and even enhance consumer trust, loyalty, and positive perception.

 Option (b) – Informing Current Owners Without Recall: This could be seen as
insufficient if not handled correctly and might lead to consumer dissatisfaction if
issues arise later.

 Option (c) – Continue Marketing with Warnings: This option may protect short-
term sales but poses significant long-term risk to the brand's reputation and could
result in substantial consumer backlash if a failure occurs.

Conclusion:

Applying consumer behavior insights, option (a)—recall and redesign—is most effective for
maintaining trust, brand loyalty, and positive perception. If financial and logistical constraints
make this difficult, then option (b) should be managed with highly transparent and
empathetic communication.
Case Study Tupperware
Influencing Opinions through Word-of-Mouth Tupperware's famed 'Party Plan' strategy
helped the company to connect with potential customers and generate sales from products
which were priced at a premium as compared to similar products in the market. The company
entered into tie-ups with FMCG players like P&G to increase visibility in the market. The
case-let also mentions how Tupperware developed a fun atmosphere in the company. Issues:
» Effectiveness of peer group promotions over traditional mode of promotions like
advertising » How alliances help in improving visibility among the brands involved in the
alliance » The need to look for alternative sales generating options other than direct selling to
generate revenues Tupperware, a direct selling company entered India in November 1996.
Tupperware adopted a three-tier network structure. At the lowest level was the Dealer. One
rank above the dealer was the Manager who operated a team of six dealers. The manager also
had to sell like the dealers, in addition to motivating and training dealers. She got a
commission on the sales of her team. Questions for Discussion:

Ques.1. How did Tupperware use parties to increase sales of its products? Which
element of Consumer Behavior is involved here?

Ques.2. "Tupperware's marketing strategy was described by its three Ps - Product,

Party Plan, and People." What was unique about Tupperware's marketing?

1. How did Tupperware use parties to increase sales of its products? Which element of
Consumer Behavior is involved here?

Ans- Tupperware’s Use of Parties to Increase Sales: Tupperware's Party Plan strategy was
a unique direct selling approach where home gatherings were hosted by Tupperware dealers
to showcase and demonstrate the products. This strategy relied on social interactions and a
fun, relaxed environment to engage potential customers, allowing them to see, touch, and
experience the products firsthand. This method capitalized on word-of-mouth marketing, as
attendees often trusted the opinions of their friends or family who hosted the parties, leading
to higher conversion rates.

Element of Consumer Behavior Involved:

 Social Influence and Group Dynamics: Tupperware leveraged the power of social
proof and peer influence, which are key components of consumer behavior.
Consumers are often influenced by the behavior and recommendations of their peers,
especially in a social setting where there is a sense of trust and community.

 Emotional Connection: By creating a sense of belonging and excitement during

these parties, Tupperware appealed to the emotional aspect of consumer behavior,
making the shopping experience enjoyable and memorable.

 Word-of-Mouth (WOM): The parties were a form of organic word-of-mouth

marketing, which is more trusted than traditional advertising because it comes from
personal recommendations within a known social circle.

2. "Tupperware's marketing strategy was described by its three Ps - Product, Party

Plan, and People." What was unique about Tupperware's marketing?

Unique Aspects of Tupperware’s Marketing Strategy:

1. Product:

o Quality and Innovation: Tupperware's products were known for their high
quality, durability, and innovative designs, which justified their premium
pricing. The products were distinct from competitors' offerings due to their
functional, user-friendly features.

o Exclusivity: Unlike products available in retail stores, Tupperware could only

be purchased through its party plan network, which created a sense of
exclusivity and desirability.

2. Party Plan:

o Direct Selling through Social Gatherings: The party plan was unique
because it combined the power of personal selling with a social event. It
transformed a simple product demonstration into a communal experience
 where attendees could engage with the products in a hands-on way, ask
questions, and receive immediate feedback.

o Host Incentives: The strategy also incentivized party hosts with discounts or
free products, motivating them to invite more guests and foster more sales.

o Demonstration and Engagement: The party format allowed for live

demonstrations, making it easier for consumers to understand the utility and
value of the products, which traditional advertising might not effectively
convey.

3. People:

o Empowerment and Community: Tupperware's model empowered its

dealers, who were mostly women, by giving them an opportunity to earn
income, build social connections, and develop business and leadership skills.

o Three-Tier Structure: This hierarchical network created a support system

where managers not only sold products but also trained and motivated their
teams. This structure fostered a sense of shared success, where motivation and
skill development were integral.

Why It Worked:

 Trust and Personal Interaction: Traditional advertisements often struggle to build

trust in the same way as personal interaction. The Tupperware party plan utilized a
personal approach that built trust through the host's endorsement.

 Community Experience: Attending a Tupperware party was as much about

socializing and connecting as it was about buying a product. This added value made
the parties memorable and positioned Tupperware as not just a product but part of a
lifestyle.

Summary: Tupperware’s marketing strategy was unique because it seamlessly integrated

product quality with a powerful, person-driven sales method that prioritized direct
engagement, community-building, and social influence. This approach proved more effective
than traditional advertising by creating meaningful interactions that led to higher consumer
trust and brand loyalty.
Case Study Dove
Campaigning for Real Beauty Dove's new promotional campaign tried to break away from
the stereotype images of beauty portrayed by the media and advertisements. The campaign
titled 'Campaign for real beauty' caught the attention of the public. Dove, a leading cleansing
brand from Unilever, has been criticized for coming out with campaigns portraying
stereotypic definitions of beauty which promoted the idea that looking great meant being thin.
"People feel under pressure to improve their appearance, even at times such as childhood,
pregnancy and later in life, when, traditionally, it is OK not to bother," said Tamar Kasriel,
Head - Knowledge Venturing, Henley Centre, a marketing consultancy. The case-let deals
with the challenges the company had to face while implementing the promotional campaign.
• The images in the ads are supposed to be unedited and "real", but there have been comments
made stating they have been photoshopped to smooth the appearance of the women's skin,
hide wrinkles and blemishes, fix stray hairs, etc. • The campaign asks women to accept the
myth that there is such a thing as “real beauty” and that achieving it is important for women.
However, women can only achieve self-acceptance and a positive body image as consumers
of Dove products. • Dove is facing criticism about its other brands that contradict the Dove
campaign, and struggling to determine the best allocation of funds between advertising and
the educational programs that deliver social impact. Questions for Discussion:

1. Identify the major issues in the case.

2. Assess the challenges the "Campaign for real beauty" campaign faced and will face in
the future.

3. In which ways were "Campaign for real beauty" unique as compared to promotional
campaigns of beauty companies?

1. Identify the Major Issues in the Case

The major issues in the Dove "Campaign for Real Beauty" case include:
  Authenticity Concerns: Although the campaign claimed to showcase unedited and
natural images of women, allegations arose that the photos were edited or enhanced,
undermining its authenticity and credibility.

 Mixed Brand Messaging: Dove faced criticism due to perceived contradictions

between its message of self-acceptance and the broader practices of its parent
company, Unilever, which also marketed brands that reinforced conventional beauty
stereotypes (e.g., Axe body sprays and Fair & Lovely).

 Consumer Skepticism: The campaign was perceived by some as perpetuating the

idea that achieving "real beauty" was essential for self-worth, positioning Dove
products as a means to that end. This created skepticism about whether the campaign
was truly about empowerment or profit-driven.

 Allocation of Resources: Dove struggled with how to balance investments between

traditional advertising and educational initiatives that aimed to foster social impact
and align with their campaign's messaging.

2. Assess the Challenges the "Campaign for Real Beauty" Faced and Will Face in the
Future

Past and Present Challenges:

 Authenticity and Trust: Maintaining the perception of authenticity was difficult

given the accusations of photo editing. This damaged trust and raised questions about
Dove’s sincerity in promoting unretouched and “real” images.

 Brand Image Consistency: Dove’s campaign contradicted some of Unilever’s other

brands that promoted traditional, often unattainable beauty standards. This
inconsistency created cognitive dissonance among consumers, reducing the
campaign’s credibility.

 Navigating Criticism: The campaign faced critiques that it still implied achieving
“real beauty” was important, positioning Dove products as essential for self-
acceptance. This approach was perceived as somewhat exploitative, framing self-
esteem as a commodity.

Future Challenges:
  Sustainability of Authenticity: As social media and user-generated content grow,
consumers will continue to demand transparency. Any perceived lapse in authenticity
could further erode trust.

 Broader Corporate Alignment: For the campaign to resonate genuinely, Unilever

may need to ensure consistency across its brands. Divergent messages could weaken
the impact of Dove's campaign and expose it to accusations of hypocrisy.

 Balancing Social Impact and Profit: Continuing to allocate resources to educational

programs and social impact initiatives without significant returns on investment could
pose financial challenges. Striking a balance between social good and profitability
will remain a strategic dilemma.

3. In Which Ways Was the "Campaign for Real Beauty" Unique as Compared to
Promotional Campaigns of Beauty Companies?

Key Uniqueness Factors:

 Focus on Realism and Diversity: Unlike traditional beauty campaigns that feature
idealized and often unattainable images, Dove’s campaign featured women of diverse
ages, sizes, and ethnicities. This approach aimed to challenge conventional beauty
standards and promote inclusivity.

 Empowerment and Self-Acceptance Messaging: The campaign sought to redefine

beauty by emphasizing that beauty should be about confidence and self-acceptance,
not a narrow set of physical attributes. This shift from aspirational marketing to
empowerment was a departure from the industry norm.

 Integration of Social Impact: Dove combined traditional advertising with

educational programs and community workshops to address self-esteem issues,
particularly among young girls. This multifaceted approach set it apart from other
campaigns that were purely profit-focused.

 Interactive and Viral Nature: The campaign leveraged videos, social media
discussions, and real stories to engage audiences in meaningful conversations about
beauty. Campaign elements like the “Dove Real Beauty Sketches” became viral,
generating wide-spread attention and participation from the public.
Comparison to Industry Norms:

 Contrasting Aspirational Campaigns: Most beauty campaigns relied on highly

edited, aspirational imagery featuring models and celebrities, often promoting
perfection as the standard. Dove’s approach challenged this narrative by showing that
beauty is not one-size-fits-all and can be found in everyday people.

 Transparency Claims: The campaign's pledge to show "real" and unedited photos
was a significant differentiation, even though it attracted scrutiny over its actual
adherence to this promise.

 Educational Component: Incorporating self-esteem workshops and educational

materials was unique and added a layer of authenticity by demonstrating a
commitment to societal impact rather than just product sales.

Conclusion: Dove’s "Campaign for Real Beauty" was groundbreaking in its approach to
redefining beauty standards and promoting self-acceptance. However, the campaign faced
significant challenges in maintaining trust, achieving consistent brand messaging, and
balancing social impact with profitability. Moving forward, the sustainability of these efforts
will depend on continuous transparency and alignment with consumer values.