Buyer Behavior of Chocolate Ice-cream by nivlekchew

VIEWS: 1,315 PAGES: 49

More Info
									Singapore Institute of Management




Buyer
Behaviour
MKTG 1052


Bachelor of Business (Management) BBMFT



S3303531     CHEW YONG QIANG KELVIN
S3303692     ERVYN TAN YING XIAN
S3304086     LIM ZHI JIA CHRISTOPHER
S3304255     POH ZHI XIAN, NATASIA
S3303825     WOO MING LIANG, KANE LOUIS
S3303663     YEO WEI WEN SHELDON
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)




TABLE OF CONTENTS

INTRODUCTION.................................................................................................................... 5
1.0       MARKET...................................................................................................................... 5
   1.1 SIZE OF MARKET ....................................................................................................... 5
   1.2 MARKET SHARE......................................................................................................... 6
   1.3 MARKET POSITION ................................................................................................... 7
   1.4 BREATH AND DEPTH OF PRODUCT RANGE ....................................................... 8
   1.5 COMPANY‘S PRINCIPAL PRODUCTS .................................................................... 9
   1.6 POSITIONING OF PRODUCT .................................................................................. 10
   1.7 PRODUCT LIFE CYCLE STAGE ............................................................................. 10


2.0       COMPETITORS........................................................................................................ 10
   2.1 DIRECT COMPETITORS .......................................................................................... 10
   2.2 INDIRECT COMPETITORS ...................................................................................... 11


3.0       IDENTIFICATION OF TARGET MARKET ........................................................ 11
   3.1 PRIMARY TARGET MARKET ................................................................................. 11
   3.2 POTENTIAL MARKET SEGMENTS........................................................................ 12


4.0       EXTERNAL INFLUENCES .................................................................................... 16
   4.1 CULTURE AND SUBCULTURE .............................................................................. 16
   4.2 DEMOGRAPHICS ...................................................................................................... 17
          4.2.1     AGE ................................................................................................................. 17
          4.2.2     GENDER ......................................................................................................... 17
          4.2.1     SOCIOECONOMIC ........................................................................................ 18
   4.3 GROUP INFLUENCES............................................................................................... 18
          4.3.1     INFORMATIONAL INFLUENCES ............................................................... 18
          4.3.2     NORMATIVE INFLUENCES ........................................................................ 18
          4.3.3     IDENTIFICATION INFLUENCES ................................................................ 19




                                                                                                                            PAGE 2 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


5.0       INTERNAL INFLUENCES ...................................................................................... 20
   5.1 NEEDS AND MOTIVES ............................................................................................ 20
   5.2 PERCEPTION ............................................................................................................. 21
   5.3 LEARNING ................................................................................................................. 22
   5.4 LIFESTYLE ................................................................................................................. 23


6.0       CONSUMER DECISION PROCESS ...................................................................... 24
   6.1 SEARCH FOR INFORMATION ................................................................................ 24
   6.2 EVALUATION AND SELECTION ........................................................................... 26
   6.3 OUTLETS AND STORE CHOICES .......................................................................... 27
          6.3.1      STORE IMAGE ............................................................................................... 27
          6.3.2      RETAIL ADVERTISING ............................................................................... 27
          6.3.3      OUTLET LOCATION..................................................................................... 27
   6.4 POST PURCHASE BEHAVIOUR ............................................................................. 28
   6.5 DISPOSAL OF PRODUCT ......................................................................................... 28
   6.6 CUSTOMER LOYALTY ............................................................................................ 28


7.0       MARKETING STRATEGY ..................................................................................... 29
   7.1 PRODUCT ................................................................................................................... 29
   7.2 PRICE .......................................................................................................................... 30
   7.3 PROMOTION .............................................................................................................. 31
   7.4 PLACE ......................................................................................................................... 32


8.0       EVALUATIONS AND RECOMMENDATIONS ................................................... 33
   8.1 EVALUATIONS OF ADVERTISING CAMPAIGN ................................................. 33
   8.2 FUTURE RECOMMENDATIONS ............................................................................ 34
          8.2.1      PRODUCT POSITIONING............................................................................. 34
          8.2.2      PRODUCT (GOODS AND SERVICES) ENHANCEMENT ........................ 34
          8.2.3      IMPROVED MARKETING COMMUNICATIONS ..................................... 34
          8.2.4      IMPROVED PURCHASE EXPERIENCE ..................................................... 35
          8.2.5      IDENTIFYING POTENTIAL NEW CUSTOMERS ...................................... 35
          8.2.6      ENHANCING CUSTOMER SATISFACTION.............................................. 35


CONCLUSION ...................................................................................................................... 36


                                                                                                                          PAGE 3 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


REFERENCE LIST ............................................................................................................... 37


APPENDIX 1A ....................................................................................................................... 40
APPENDIX 1B ....................................................................................................................... 41
APPENDIX 1C ....................................................................................................................... 42
APPENDIX 2 .......................................................................................................................... 43
APPENDIX 3 .......................................................................................................................... 44
APPENDIX 4 .......................................................................................................................... 45
APPENDIX 5 .......................................................................................................................... 46
APPENDIX 6 .......................................................................................................................... 47
APPENDIX 7 .......................................................................................................................... 48
APPENDIX 8 .......................................................................................................................... 49




                                                                                                                         PAGE 4 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


INTRODUCTION


This report critically examines Magnum and Häagen Dazs in terms of market share, target
market and their marketing strategies. It covers the external and internal influences that could
possibly persuade consumers in the decision-making process. Finally, this report evaluates
the marketing strategies of both brands using buyer behaviour theories and provides
evaluations and recommendations on how to increase the effectiveness of those strategies.


1.0    MARKET


1.1    SIZE OF MARKET


The ice cream market in Singapore has a total retail value of S$153.12 million and a total
retail volume of 15,045,100 litres in 2010 (refer to Appendix 1A: Volume Sales). The market
is forecasted to grow on a yearly basis from S$153.12 million in 2010 to $S170.29 million in
2015 (refer to Appendix 1B: Sales Forecast).




                                                                                     PAGE 5 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


1.2    MARKET SHARE


Magnum's overall market share has grown steadily over the years and has captured 5.61% of
the market in 2009 (refer to Figure 1A: Market Share of Ice Cream in Singapore during
2009). Cornetto, Drumstick, Magnolia and Häagen Dazs were the next four largest players in
the market, holding 20.6%, 10.75% and 7.97% and 4.81% respectively (refer to Appendix
1C: Brand Shares).



                     Market Share of Ice Cream in 2009


                                                       Cornetto
                         Others                         20.6%
                         38.29%
                                                                   Drumstick
                                                                    10.75%

                                                                   Magnolia
                                                                    7.97%
                                                   Häagen Magnum
                                                    Dazs   5.61%
                                                   4.81%




            Figure 1A: Market Share of Ice-Cream in Singapore during 2009




                                                                                PAGE 6 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


1.3    MARKET POSITION




                   Figure 1B: Perceptual Mapping of Ice cream brands


The market position for Magnum and its competitors is demarcated by perceived price and
perceived quality. Magnum has a relatively high perceived price due to its exclusive image
and extensive marketing campaigns which allowed it to achieve island-wide recognition. It is
also perceived to be of high quality and is able to deliver the concept of ‗pleasure‘ that
Magnum projects, thus justifying it as a premium brand (refer to Figure 1B: Perceptual
Mapping of Ice cream brands).




                                                                                  PAGE 7 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


1.4    BREADTH AND DEPTH OF PRODUCT RANGE


Magnum carries a variety of ice cream which ranges from the bars to the minis which are
smaller variants to satisfy consumers with smaller appetites or calorie-conscious consumers
(refer to Table 1A: Product Range (Magnum 2011c)).


  Magnum Double Caramel                Magnum Almond              Magnum Classic




        Magnum Gold               Magnum Golden Hazelnut       Magnum Mini Liqueur




        Magnum Mini                 Magnum Mini (Double
                                                               Magnum Mini (Double
      (Classic, White and             Caramel & Double
                                                                    Mocacchino)
            Almond)                        Chocolate)




                         Table 1A: Product Range (Magnum 2011c)




                                                                                 PAGE 8 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


1.5    COMPANY’S PRINCIPAL PRODUCTS


The principal products of Magnum are its ice cream bars (refer to Table 1B: Principal
Products).


                                           Features and Benefits


                                 Thick bar of vanilla ice cream covered with Belgian milk
                                  chocolate
                                 Variations such as Magnum Classic, Magnum White,
Magnum (Bar)
                                  Magnum Almond and Double Caramel
                                 High quality chocolate

                                                                               (Magnum 2011b)




                                 Comes in packaging of 6 mini magnum ice creams
                                 Half the size of the bar
Magnum Mini                      Snack size for calorie conscious consumers

                                                                               (Magnum 2011b)



                                 Table 1B: Principal Products




                                                                                     PAGE 9 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


1.6    POSITIONING OF PRODUCT

From its packaging and advertisements, it is evident that Magnum is trying to position itself
as a high premium quality chocolate ice cream product for "pleasure seekers". The
positioning strategy used by Magnum is targeted at the working class woman who can
associate     themselves      with      the     advertising    campaigns      and      slogans.


1.7    PRODUCT LIFE CYCLE STAGE




                  Figure 1C: Product Life Cycle Stage (QuickMBA 2007)


Magnum is considered to be currently in the growth phase, as indicated by the red arrow
(refer to Figure 1C: Product Life Cycle Stage (QuickMBA 2007)). The sales of Magnum have
increased over the recent years as consumers are now more aware of this product through the
expansion of intense television advertisements and creative marketing campaigns. Magnum's
goal during this stage would be to gain consumers' preference and further increase their sales.




                                                                                    PAGE 10 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


2.0     COMPETITORS


2.1     DIRECT COMPETITORS


Magnum has a number of direct and indirect competitors with its main direct competitor
as  Häagen Dazs which competes against Magnum in the premium ice-cream category.
Although both products adopt similar price strategies and distribution channels, they differ in
their promotional strategies (refer to Table 2A: Magnum VS Häagen Dazs).


                      Magnum (Double Caramel)                  Häagen Dazs (Vanilla Almonds)




Product




                                                                     SGD$15.90     per box of 3
                        SGD$14.50    per box of 4 ice-
                                                                    ice-cream bars (refer to
Price                  cream bars (refer to Appendix 6:
                                                                    Appendix 7: Competitor’s
                       POP Displays)
                                                                    Pricing)
                        Commercials

                        Radio   and Internet
Promotion                                                            Printed   media
                        Printed   media
                        Road   Shows
                        Convenience stores:                         Convenience stores
                        Supermarkets                                Supermarkets
Place
                                                                     Häagen    Dazs outlet

                            Table 2A: Magnum VS Häagen Dazs




                                                                                        PAGE 11 OF 49
    BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


    2.2     INDIRECT COMPETITORS


    Magnum‘s indirect competitors are shown in Table 2B: Indirect Competitors. These products
    target same market segments and they differ in terms of cost positioning from Magnum and
    Häagen Dazs.


                    Cornetto (Royale)             Drumstick (Kit Kat)       Magnolia (Supremo)




Product




                       SGD$2.60                      SGD$2.40               SGD$2.30
Price
                      (refer to Appendix 2:           (refer to Appendix      (refer to Appendix
                      Receipts)                       2: Receipts)            2: Receipts)


                       Printed    media              Printed   media        Printed   media
Promotion
                       Internet




                       Convenience stores            Convenience stores     Convenience stores
Place
                       Supermarkets                  Supermarkets           Supermarkets



                                      Table 2B: Indirect competitors




                                                                                   PAGE 12 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


3.0    IDENTIFICATION OF TARGET MARKET


3.1    PRIMARY TARGET MARKET


Table 3A: Market Segmentation will further elaborate on the market segmentation of
Magnum and its competitor, Häagen Dazs based on the demographics, psychographic and
behavioural of the targeted consumers.


                                                               Häagen Dazs Vanilla & Almonds
                             Magnum Double Caramel
                                                                              Bar


                                                                    Primary Target Market
                                                                     includes: Male and Female
                             Target Market: Tertiary and
                                                                     professionals aged between
                              working women aged
                                                                     18-35 years old.
                              between 18-40 years old.

                                                                    Häagen Dazs is well-known
                             Developed as a "premium
                                                                     as a "super-premium brand‖
                              adult offering‖ (Unilever
                                                                     (Häagen Dazs 2011).
                              2011a).

 Demographics                                                       Medium – High income
                                                                     levels who love to indulge in
                             Medium – High income
                                                                     $15.90/box of 3 ice-cream
                              levels with the ability to
                                                                     bars (refer to Appendix 7:
                              indulge in $14.50/box of 4
                                                                     Competitor’s Pricing)
                              ice-cream bars (refer to
                              Appendix 6: POP Displays)



                                Table 3A: Market Segmentation




                                                                                    PAGE 13 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)




                            Activities: Entertainment             Activities: Work and
                                -   Gatherings                      Entertainment
                                -   Leisure                         - Entertaining business
                            Interests: Luxury food                 clients
                             e.g. chocolate and ice cream           - Leisure
Psychographics              Opinions: Peer Influence               - Family Oriented
                                -   Word-of-mouth
                                                                   Interests: Career, Family and
                            Personality: Sociable,
                                                                    Luxury food
                             Indulgent, Fun-Loving
                                                                   Opinions: Task-oriented
                                                                   Personality: Independent,
                                                                    Ambitious, Coy



                            Benefits Sought: Pleasure and         Benefits Sought: Relieve
                             excitement, relieve stress and         stress, sensory taste and
                             trendsetting among friends by          relaxing experience (Häagen
                             making Magnum a fashion                Dazs 2011).
  Behavioural                statement.




                            User Status: ―Potential Users, First-Time Users and Regular Users‖
                             (Beane and Ennis 1987).

                               Table 3A: Market Segmentation




                                                                                    PAGE 14 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


3.2    POTENTIAL MARKET SEGMENTS


Euromonitor (2010) stated that while other food products suffered, ice cream profited from
the recent economic recession as consumers see ice cream as a way to give themselves an
incentive treat. Luxury food have only become a norm in today‘s society. Therefore, this will
not be an issue when selecting Generation X (1965-1976) as a potential market segment. The
behavioural aspects of this generation consist of compulsive behaviour and high purchasing
power, which ideally means that the possibility of targeting the age range of 40-45, will likely
bring about profits as well (Roberts and Manolis 2000). Through the behavioural aspect of
occasion, we can motivate purchases with the use of positive emotions.


Although, females are the major consumers of ice-cream, we recommend men of 18-45 years
old as another potential market segment. Men do seek to satisfy their hunger, gratify their
senses and to escape from the harshness of society, and chocolates do just that, in this case a
sweet ice cream experience, ―It's the perfect time for a movie and a sweet. I chose Troy, with
Pitt in Achilles' shoes and a delicious Magnum” (Zarantonello and Luomala 2011). Males do
have a simpler relationship with ice-cream due to their workaholic personality (psychological
aspect), which might be easier to market, thus supporting our recommendation for potential
market segment.




                                                                                    PAGE 15 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


4.0    EXTERNAL INFLUENCES


4.1    CULTURE AND SUBCULTURE


The endorsement by Rachel Bilson has successfully portrayed Magnum to be the sought after
ice cream choice for premium taste and pleasure seekers. Various commercials directed by
renowned fashion director, Karl Lagerfeld painted Magnum to be the desired brand of ice
cream for women who enjoy treating herself after a hard day‘s work (Celentano 2011).

Our target segment appreciates and strives to seek a balance between work and leisure. They
require acknowledgement and commendation for their achievements. Driven by their self-
oriented culture of leisure, they are able to identify themselves. Placed as a premium ice
cream in the minds of our target segment (Unilever 2011a), women would choose Magnum
over competing brands when they want to reward themselves.

Being an Asian country infused with Western influences, there is an increasing culture of
sensual gratification in younger Singaporeans. The culture of indulging oneself and fulfilling
one‘s cravings is on the rise. Hence, the advertisements stress on the sensual aspect to attract
the target segment.


The aggressive and widespread promotional activities for the Double Caramel appeal to those
in the ‗Early Adopters‘ to ‗Early Majority‘. Magnum had invited opinion leaders, such as
bloggers, to grace their exclusive pleasure suite for a pure Magnum Double Caramel
experience (Kiora 2011).




                                                                                    PAGE 16 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


4.2    DEMOGRAPHICS


4.2.1 AGE


Age has an influence on the consumption of ice cream. It is often the younger generation who
are greatly influenced by Western cultures that consumes ice cream, whereas the older
generation perceives ice cream as an unhealthy product that should be savoured occasionally.


4.2.2 GENDER


Women are more emotional compared to men, who tend to be more rational. The
consumption of ice cream is viewed as a form of stress relief as scientists have shown that
chocolates ―causes the brain to release endorphins‖ that causes the consumer to ―feel good‖
(Ciampa 1996).


Therefore, during the purchasing process, women tend to look for products with chocolate
content to soothe their senses. The endorsement by Rachel Bilson allows women to relate
themselves to her, enabling them to achieve the same sense of happiness and relief.




                                                                                  PAGE 17 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


4.2.3 SOCIOECONOMIC


The socioeconomic factor has a fairly low impact on the buying decision process as it
requires low purchase involvement. Studies have shown the correlation between the financial
status of a country and food consumption patterns (Drewnowski and Popkin 1997). Being a
developed country with higher disposable income, Singaporeans are more willing to purchase
luxury food such as ice cream on top of their basic three meals a day.


4.3     GROUP INFLUENCES


4.3.1 INFORMATIONAL INFLUENCES


Informational influences apply when consumers look towards the actions and views of
reference group members for information of the product (Quester, Pettigrew and Hawkins
2011). When purchasing a low involvement product such as ice cream, women would not
deliberate which brand to opt for. Instead, they would opt for the brand highly recommended
by their friends.


4.3.2 NORMATIVE INFLUENCES


Normative influences occur when an individual acts according to the general behavior of the
group to gain approval and to fit in (Quester, Pettigrew and Hawkins 2011). When purchasing
ice cream, one would choose the brand that their peers consume. This action enables the
individual to feel a sense of belonging to the group.




                                                                                PAGE 18 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


4.3.3 IDENTIFICATION INFLUENCES


Identification influences reflect the use of the group values as a benchmark for one‘s attitudes
or values (Quester, Pettigrew and Hawkins 2011). In the advertisements, Rachel Bilson is
portrayed to be a successful woman who enjoys simple pleasures in life after a hard day‘s
work. This will attract young working women who are successful and seeking for a balanced
life.




                                                                                    PAGE 19 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


5.0     INTERNAL INFLUENCES


5.1     NEEDS AND MOTIVES


Latent motives are motives that are either unknown to the individual or are such that the
individual is very reluctant to admit them (Quester, Pettigrew and Hawkins 2011). It could be
that Magnum is an amazing ice cream that is sinful, yet more rewarding than other brands. Or
that the consumer wants to feel what it is like to enjoy the ice cream. It may even be for
consumers to show that ―I am eating an ice cream that tells a story about me‖, especially
when the brand image of Magnum is about the confidence, carefreeness and the willingness
or guts to achieve that hankering for pleasure.


Manifest motives are motives that are known and freely admitted (Quester, Pettigrew and
Hawkins 2011). Ranging from simple motives such as consuming a premium ice cream, to
having a reference group that only Magnum is able to bring about, portrayed by celebrities
who endorsed the brand. Even the ―telling a story about me‖ factor could be a manifest
motive.


It is clear that Magnum has adopted the Approach-Avoidance motivation conflict, whereby
the consumer faces both positive and negative consequences (Quester, Pettigrew and
Hawkins 2011). As mentioned, Magnum is an ice cream that is sinful, yet more rewarding
than it is sinful.


The new Magnum available in Singapore is built on the foundation from the existing brand
image and the newly developed Magnum Double Caramel. The brand image created is sought
after by consumers. Using Maslow‘s hierarchy of needs (Quester, Pettigrew and Hawkins
2011), while Magnum may be a physiological necessity, it is more of an esteem need as it
fulfills more of prestige, esteem and a sense of status.




                                                                                  PAGE 20 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


5.2    PERCEPTION

Both positive and negative implications will arise as a result of perceptions.


The first and critical negative implication would be the concern on health issues associated
with the consumption of the product. Senior nutritionist at the Center for Science in the
Public Interest, Jayne Hurley commented that ―Everyone knows that ice cream isn't good for
you — it's a splurge. But most people don't realize how much of a splurge it is‖ (CBS News
2009). Secondly, marketing of Magnum ice cream is mainly targeted at female consumers.
As such, it is very unlikely that majority of the male population will be regular consumers.
Whilst Magnum may still be of a unisex category, there is a tendency that men will not
consume Magnum when the brand image of the ice cream is intended for women.


However, not all implications are negative. The silver lining, in which is conjecturable that
Magnum has intended, is that since marketing is mainly targeted at women, it builds a
particularly strong relation with female consumers. Magnum is able to build an image in
which consumers can relate to, such as the identity associated with consumption.




                                                                                   PAGE 21 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


5.3    LEARNING

Learning refers to any change in the content or organisation of long term memory as a result
of information processing (Quester, Pettigrew and Hawkins 2011). The learning phase of
Magnum is crucial in the internal influences it will have on consumers.


With the exception of a minority of health conscious consumers who would compare the
different brands, Magnum is generally a low-involvement learning product, where an
advertisement brings attention to consumers and is not exactly information specifically
sought after. It is up to Magnum to advertise and to stand out from the others, rather than the
consumer‘s initiative to seek the information.


Classical conditioning is the process of using an existing relationship between a stimulus and
response to bring about the learning of the same response for a different stimulus (Quester,
Pettigrew and Hawkins 2011). For the target market, Magnum does not simply seek to satisfy
a desire for ice cream, it fulfills feelings and emotions. As the brand image suggests, the
confident, busy, successful person would be satisfied through consumption of Magnum and
the pleasure brought to them. ―Seeing Magnum advertisement‘s projected brand image
(unconditioned stimulus) elicits a positive emotion (unconditioned response) in individuals. If
the projected brand images are constantly paired with the product of Magnum, the product
itself will elicit the same positive emotion (conditioned response)‖ (Quester, Pettigrew and
Hawkins 2011). Therefore, learning is not informational but emotive.




                                                                                   PAGE 22 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


5.4    LIFESTYLE

Targeted segments can be associated into lifestyle habits and purposes which are those who
see Magnum as an instrument of stress relief, those who adopt the trend of eating Magnum
through the influence of their peers, and those who simply wish to indulge in pleasure.


It is not uncommon that people seek ways to relieve stress in their daily lives. While others
may kick back and enjoy a beer as a well-deserved reward after a hard day‘s work, some seek
refuge from stress through Magnum ice creams.


Peer influence is another lifestyle habit that affects consumers. Consumers generally do not
wish to be left out by friends and family when the latter are thoroughly enjoying themselves
eating the ice creams. As a result, consumers would not only sway towards buying Magnum
to understand the motivations behind its consumption, but also as a display of social status
and being seen as a ―Magnum consumer‖.


Understanding those who consume Magnum for the purpose of indulging in pleasure is
straightforward. Majority of the consumers seek a primary desire to satisfy their need for
indulgence. These people are driven by their needs and personal motivations to consume the
product.




                                                                                   PAGE 23 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


6.0    CONSUMER DECISION MAKING PROCESS


Addressing the decisions that influences a product purchase, consumer decision making
process examines five main situations that engage a consumer. The process begins with
‗Problem Recognition‘ where it compels the ‗Search for Information‘. Consumers proceed
with ‗Evaluation and Selection‘ before they make a decision to purchase it at selected ‗Store
Choices‘. The process concludes with ‗Post Purchase Behaviour‘ where expectations,
performance      and     satisfaction    are    matched        before   the   cycle      repeats.


6.1    SEARCH FOR INFORMATION


‗Problem Recognition‘ gives rise to the need for information search, leading to an increased
awareness on a consumer product (Quester, Pettigrew and Hawkins 2011). It begins with the
collection of internal information from prior taste experiences on Magnum ice creams.


Magnum Double Caramel targets its consumers through the better use of external search
where external stimulus evokes the behaviours of consumers (Quester, Pettigrew and
Hawkins 2011). Forums along with popular social network site, Facebook, serve as an
information source where consumers gather the opinions of fellow Magnum buyers.


The availability of information is made through Magnum‘s official website, magazine article
reviews (refer to Appendix 3: Magazine Scans), direct experiences through product launch
events (refer to Appendix 4: Direct Experiences) and promotional advertisements generated
by the marketers (refer to Appendix 5: Marketer’s Promotional Efforts).


Classified as a ‗low level‘ of purchase involvement, consumers find themselves in a ‗limited
decision making‘ where a simple point of purchase display (refer to Appendix 6: POP
Displays) in a supermarket is enough to induce an interest in purchase (Quester, Pettigrew
and Hawkins 2011).




                                                                                      PAGE 24 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)




In an awareness set, Magnum Double Caramel is classified under the ‗evoked set‘ (refer to
Figure 6A: Brands in Initial Awareness Set) where consumers highly regard these set of
brands as a probable solution to their purchase decision (Quester, Pettigrew and Hawkins
2011).


Remaining impartial to the brands under the ‗inert set‘, consumers resort to brands like
‗Cornetto‘ in a case where ‗Magnum‘, or brands under ‗evoked set‘ are unattainable (Quester,
Pettigrew and Hawkins 2011). Local brands like ‗Potong‘, under the ‗inept set‘ are
overlooked due to lack of value and unfavourable views based on specific criteria of purchase
(Quester, Pettigrew and Hawkins 2011).




                         Figure 6A: Brands in Initial Awareness Set




                                                                                  PAGE 25 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


6.2    EVALUATION AND SELECTION


Consumers are likely to evaluate Magnum Double Caramel based on conjunctive decision
rule where decisions are made once a minimum standard is met (Quester, Pettigrew and
Hawkins 2011). The evaluation criterion covers price, taste, brand image, packaging, ease of
consumption and nutritional content (refer to Figure 6B: Evaluation Criteria).




                               Figure 6B: Evaluation Criteria




                                                                                 PAGE 26 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


6.3    OUTLETS & STORE CHOICES

The choice of outlets distributing Magnum Double Caramel sways consumer‘s decision
making where decisions are affected by the ‗Store Image‘, ‗Retail Advertising‘ and ‗Outlet
Location        and     Size‘      (Quester,       Pettigrew        and       Hawkins        2011).


6.3.1 STORE IMAGE


A ‗Store Image‘ can be detrimental to the brand image if the selection, quality and price
offered by the specific store do not satisfy consumer needs. The placement of Magnum
Double Caramel differs at outlets, where convenience stores usually house it in a freezer out
of            its         store           due           to            space             constraints.


6.3.2 RETAIL ADVERTISING


The role of advertising is said to be one of the most effective tool in reaching out to its target
audience (Quester, Pettigrew and Hawkins 2011). Price promotions at convenience stores
(refer to Appendix 6: POP Displays) easily captivates consumer‘s interest. Such appeal
allows marketers to introduce bundle deals, in return increasing awareness on future brand
extensions.


6.3.3 OUTLET LOCATION


Distribution of Magnum Double Caramel are mainly stocked and sighted at supermarkets and
convenience stores where the purchase is made available anytime of the day. Giant, Cold
Storage, 7 Eleven and FairPrice Xpress at Esso Mobil Stations are some of the leading
carrying outlets (Magnum 2011a). Because of its convenient distribution, consumers are
likely to approach the outlet first before considering the brand.




                                                                                        PAGE 27 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


6.4    POST PURCHASE BEHAVIOUR

Dissonance is the dissatisfaction and feeling of discomfort experienced by the consumer after
consumption of a product (Nadeem 2007). Questions as to whether customer‘s needs are
satisfied are answered in ‗Post Purchase‘ behaviour. There is a low probability of post-
purchase dissonance owing to the fact that decisions made during purchase are forthright, and
there is no long-term usage of the product, unlike mobile phones or televisions.


It is important to identify any dissonance in the early stages of product consumption to
encourage repeat purchases. An important way of reducing dissonance is to highlight its
benefits      in      comparison        to      its      competitors     (Nadeem        2007).


6.5    DISPOSAL OF PRODUCT


There is little to none when it comes to the disposal of a food product specifically an ice
cream. Disposal is almost not required (Quester, Pettigrew and Hawkins 2011). Although
recycling and exchanging are inapplicable, Magnum Double Caramel is packaged into a box
as well as a plastic wrapper and a proper disposal helps promote environmental wellbeing.


6.6    CUSTOMER LOYALTY


Loyalty is a clear commitment resulting from a rational decision based on an assessment of
each brand‘s benefits (Lichtlé and Plichon 2008).


Although brand loyalty does not assure a devoted loyal customer (Quester, Pettigrew and
Hawkins 2011), skilful marketing is needed as customers are prone to purchase other
Magnum products upon other brands.


Furthermore, loyalty reinforces consumer‘s self concept of their belief towards the brand.




                                                                                   PAGE 28 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


7.0      MARKETING STRATEGY


The following section shall examine the marketing approach engaged by Magnum Double
Caramel ice cream bar and Häagen Dazs Vanilla and Almond ice cream bar to determine its
market                  position                 and             its                success.


7.1      PRODUCT


Both Magnum Double Caramel and Häagen Dazs Vanilla and Almond are premium ice
creams targeted to satisfy chocolate lovers. Magnum Double Caramel comes in the form of
an ice cream bar (90g) and has positioned itself as a premium ice cream with its luscious
chocolate coating, rich caramel sauce and thick Belgian milk chocolate. The golden brown
packaging brings out the premium ‗feel‘ of the product.


Similarly, Häagen Dazs Vanilla and Almond comes in the form of a ice cream bar (87g) and
has also positioned itself as a premium ice cream, through finding the purest and finest
ingredients and crafting them into the best ice cream.


The degree of innovation for ice cream is considered continuous, especially for Magnum as it
often introduces new flavours annually to customize and satisfy consumer‘s changing taste
and preferences. The latest flavour Magnum introduces in 2011 is Double Caramel.


As ice creams are generally perceived by many Singaporeans as weight gaining, sinful
delights, this may impede the rate of diffusion into the target market. Thus, one strategy
Magnum has adopted is the endorsement of a celebrity, Rachel Bilson to star in the
promotion of the Magnum Double Caramel. This allows consumers to alter such negative
perceptions of ice creams.




                                                                                 PAGE 29 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


7.2    PRICE

Price would be perceptible to consumers as an indicator of a product‘s quality in relation to
its brand, if the consumer is not knowledgeable on the product and its brand name (Schiffman
and Kanuk 2007).


Price is an important evaluative criterion, as both Magnum and Häagen Dazs pricing strategy
is based on the premium product pricing to attract status conscious customers. Berends
(2004) suggests that the product‘s prestige image and premium price is taken into
consideration as part of the value provided in premium products pricing. Hence, Magnum and
Häagen Dazs have priced their products higher than competitors, in order to be perceived as a
premium product. The higher price reflects the high quality of the ice cream in comparison to
competitors.


The target market would likely respond to price reduction, as sales increases when prices are
reduced. For example, Magnum launched a 1 for 1 deal for the Double Caramel at selected
supermarkets to gain consumer awareness of the product through greater sales (refer to
Appendix 6: POP Displays).


However, if the price reductions were too huge, consumers may change their perceptions of
the product image, and no longer see it as a premium product, as prices is often used as a
surrogate indicator for quality and status.




                                                                                  PAGE 30 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


7.3     PROMOTION

Magnum‘s Double Caramel is targeted as a premium chocolate ice cream for adults. Each
Belgian ice cream bar is ready to satisfy one‘s self indulgence. These are the values important
to Magnum that can be used in the communication strategy.


On the other hand, the finest ingredients, along with the quality assurance that comes with
Häagen Dazs trusted reputation is important values used in the communication strategy.


Magnum uses commercial advertising through different channels such as in TV commercials,
websites and mobile advertisements. In the commercials, Magnum endorses Rachel Bilson to
star in their commercials to promote the launch of the Double Caramel ice cream (Unilever
2011b). In addition, Magnum uses mobile advertisements on buses to promote the newly
launch Magnum Double Caramel ice cream (refer to Appendix 5: Marketer’s Promotional
Efforts).


These are effective forms of communication strategy as it allows Magnum to reach out to a
wide target market of adults who enjoy chocolate indulgence. The greater market share of
Magnum as compared to Häagen Dazs is evidence of their success in their communication
strategy.




                                                                                   PAGE 31 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


7.4    PLACE

Both Magnum Double Caramel and Häagen Dazs Vanilla and Almond adopt similar
distribution systems, and can be easily found in major supermarkets and convenience stores
such as NTUC, Cold Storage, Giant, Shop N Save, 7 Eleven and Cheers which have
numerous outlets found at convenient locations.


With the presence of convenience stores carrying these ice creams, even as the working
adults (Generation X and Y) become increasingly busy due to their hectic lifestyle, they will
still be able to purchase the ice creams easily and readily.




                                                                                  PAGE 32 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


8.0    EVALUATIONS AND RECOMMENDATIONS


8.1    EVALUATIONS OF ADVERTISING CAMPAIGN


Magnum makes use of isolation by using a light beige background in the print advertisement
to captivate interest to the main focus of the celebrity (refer to Appendix 8: Print
Advertisments). Häagen Dazs similarly applies the isolation technique; however colours were
mostly dark and de-saturated thus making it less engaging than Magnum‘s warm and inviting
colours.


Magnum endorses a female celebrity in Rachel Bilson, whereas Häagen Dazs engages a non-
celebrity model to endorse their products. Rachel Bilson portrays an endearing expression,
which entices the target audience to take a second glance at the ice cream she holds onto. In
contrast to Magnum‘s direct approach, the model in Häagen Dazs advertisement portrays a
seductive stare while holding a spoon, rather than the product, making it appear more sexual
which may be provocative to some individuals.


Both brands seek to deliver a message of self indulgence through their products. Magnum‘s
slogan of ‗It’s pure pleasure, from the very first bite‘ is easy for consumers to understand the
intended message, as compared to Häagen Dazs‘s ‗ANTICIPATED LIKE NO OTHER’,
leaving consumers puzzled by their ambiguous message. Overall, the use of clear and
straightforward advertising efforts by Magnum has proved to be more effective in delivering
their intended message to the target audience as compared to Häagen Dazs (refer to Appendix
8: Print Advertisements).




                                                                                    PAGE 33 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


8.2    FUTURE RECOMMENDATIONS


8.2.1 PRODUCT POSITIONING


Magnum should maintain its positioning strategy as a premium ice cream for the working
class females. This positioning is aligned with its slogan, 'for pleasure seekers' aimed at
females who desire to be relieved from their stressful lifestyle. Furthermore, competitors such
as Cornetto has established a large market share in the lower tier ice cream market, hence it is
inadvisable         for         Magnum            to           target       this          segment.


8.2.2 PRODUCT (GOODS AND SERVICES) ENHANCEMENTS


Improvements can be made to Magnum by adjusting its level of sweetness to appeal to men
who do not have a sweet tooth like most women do (Gunnison 2011). The ice cream will be
sold in the same double caramel flavor but with reduced sugar, enhancing the product image
to both genders. An insulation pack to keep the product cool will be issued so that consumers
can    remain     outside     for    hours,    doing     shopping,      without    any     hassle.


8.2.3 IMPROVED MARKETING COMMUNICATIONS


Magnum can improve their marketing communications with consumers by featuring an
interactive website, offering attractive prizes. Through this website featuring games, quizzes
and facts relating to ice cream, Magnum is able to build up its potential customer database
through the capture of personal particulars. This allows greater exposure and for consumers
to have a lasting impression of the ice cream products, while creating a desire for it.




                                                                                      PAGE 34 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


8.2.4 IMPROVED PURCHASE EXPERIENCE


The ultimate aim of Magnum is to provide its consumers with the entirety of satisfaction,
consuming the product without any regrets. To achieve that, the idea of Magnum being
unhealthy, such as the likelihood to cause diabetes and other health concerns, should be
abolished. Product enhancements, as suggested earlier, allows this ―guilty pleasure‖
experience of consumers to dissipate, and form a new perception that is simply ―pleasure‖.


8.2.5 IDENTIFYING POTENTIAL NEW CUSTOMERS


The current target market can be expanded by tapping into the male market. Similar to the
age group of our targeted women, our potential market would be tertiary and working men
between ages 18 to 40.


As Magnum can be perceived as a masculine brand due to its name and outlook, it does not
require much repackaging. The ice cream is chunky in size, differentiating itself from the
usual         petite         ice         cream           sizes     (Gunnison           2011).


8.2.6 ENHANCING CUSTOMER SATISFACTION


Examining consumers brand loyalty along with their perceived quality towards Magnum
grants an opportunity to enhance customer satisfaction. As relationship marketing is
identified as the cornerstone of loyal consumers, Magnum ought to observe its consumer
behaviour needs before marketing its price and promotions. Consumer relationships will be
enforced, unfolding the possibilities of repetitive purchases. Magnum is encouraged to ―under
promise and over deliver‖ to ensure going beyond consumers‘ expectations (Raphel 2004).




                                                                                  PAGE 35 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


CONCLUSION


Magnum‘s success is largely due to the marketing of their brand image. Revolving around
this strategy, it has succeeded in reaching out to their target audience. It has captivated
consumers and influenced their decision making process through the combination of external
and internal influences. The understanding of consumer‘s behaviour can be reflected in the
success of Magnum‘s marketing strategy. Thus, Magnum is able to stand out from the rest of
its competitors, emerging as a top choice amongst premium ice creams.




WORD COUNT:            4477    WORDS




                                                                                PAGE 36 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


REFERENCE LIST


Beane, T & Ennis, D 1987, ‗Market Segmentation: A Review‘, European Journal of
Marketing, vol. 21, no. 5, pp. 20-42, viewed 29 August 2011, Emerald Database.


Berends, WR 2004, Price and Profit: the essential guide to product and service pricing and
profit forecasting, William R. Berends, Canada.


CBS News 2009, The Fat Facts on Ice Cream, CBS Corporation, New York, viewed 16
September 2011, <http://www.cbsnews.com/stories/2003/07/23/health/main564811.shtml>.


Celentano, D 2011, ‗Rachel Bilson in Original Film Series Promoting Magnum Ice Cream‘,
About.com     weblog,     weblog     post,   23    April,      viewed   15   September    2011,
<http://foodbeverage.about.com/b/2011/04/23/rachel-bilson-in-original-film-
seriespromoting-magnum-ice-cream.htm>.


Ciampa, L 1996, ‗Researchers say chocolate triggers feel-good chemicals‘, Cable News
Network Interactive weblog, weblog post, 14 February, viewed 16 September 2011,
<http://edition.cnn.com/HEALTH/indepth.food/sweets/chocolate.cravings/index.html >.


Drewnowski, A & Popkin, BM 1997, ‗The Nutrition Transition: New Trends in the Global
Diet‘, Nutritional Reviews, vol. 55, no. 2, pp. 1-13, viewed 15 September 2011, ProQuest
Database.


Euromonitor International 2010, Ice Cream in the Netherlands, Euromonitor International,
Chicago, viewed 3 September 2011, <http://www.euromonitor.com/ice-cream-in-the-
netherlands/report>.




                                                                                    PAGE 37 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)




Gunnison, E 2011, ‗Should I Be Eating This? Magnum Double Caramel Bar‘, Esquire
weblog,      weblog       post,      14       June,    viewed        16       September     2011,
<http://www.esquire.com/blogs/food-for-men/magnum-ice-cream-5918175>.


Häagen Dazs 2011, Discover Häagen Dazs, Häagen Dazs, Singapore, viewed 1 September
2011, <http://www.Häagendazs.com.sg/en/Global/Discover.aspx#Timeline>.


Kiora, E 2011, ‗A Night in the Magnum Pleasure Palace‘, Loveyouwrongtime weblog,
weblog         post,       5         June,        viewed        15        September         2011,
<http://loveyouwrongtime.wordpress.com/tag/magnum-double-caramel/>.


Lichtlé, MC & Plichon, V 2008, ‗Understanding better consumer loyalty‘, Recherche et
Applications en Marketing, vol. 23, no. 4, pp. 121-140, viewed 7 September 2011, ProQuest
Database.


Magnum 2011a, Magnum 2011 Campaign, Magnum, Singapore, viewed 2 September 2011,
<http://game.mymagnum.com.sg/press_room.php>.


Magnum 2011b, Magnum Ice Cream – Belgian Chocolate Covered Ice Cream Bars,
Unilever, United States, viewed 2 September 2011, <http://www.magnumicecream.com/>.


Magnum       2011c,     Our       Products,    Singapore,      viewed     2    September     2011
<http://www.mymagnum.com.sg/products/>.


Nadeem, MM 2007, ‗Post-Purchase Dissonance: The Wisdom of the ‗Repeat‘ Purchases‘,
Journal of Global Business Issues, vol. 1, no. 2, pp. 183-193, viewed 7 September 2011,
ProQuest Database.


Quester, PG, Pettigrew, S, Hawkins, DI 2011, Consumer Behaviour: Implications for
Marketing Strategy, 6th edn, McGraw-Hill, Australia.



                                                                                      PAGE 38 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)




QuickMBA 2007, Marketing: The Product Life Cycle, United States of America,
viewed 3 September 2011, <http://www.quickmba.com/marketing/product/lifecycle/>.


Raphel,      M       2004,     BNET       Weblog,    weblog,     viewed      15     September       2011,
<http://findarticles.com/p/articles/mi_m0HMU/is_2_31/ai_113301244/>.


Roberts, J & Manolis, C 2000, ‗Baby boomers and busters: an exploratory investigation of
attitudes toward marketing, advertising and consumerism‘, Journal of Consumer Marketing,
vol.   17,    no.     6,     pp.    481-497,   viewed   20     August    2011,     Emerald     Database.


Schiffman, LG & Kanuk, LL 2007, Consumer Behavior, 9th edn, Pearson International,
Upper Saddle River, New Jersey.


Unilever 2011a, Magnum: one of the world’s most loved ice-cream bars debuts in Canada
May          2011,         Unilever,       Canada,       viewed          1        September         2011,
<http://www.unilever.ca/aboutus/newsandmedia/pressreleases/Magnum_worlds_most_loved
_ice_cream_bars.aspx>.


Unilever 2011b, Magnum Ice Cream Makes a Red-Carpet Arrival In U.S Market, Unilever,
United         States          of       America,        viewed          10        September         2011,
<http://www.unileverusa.com/mediacenter/pressreleases/2011/Magnum_Ice_Cream_Makes_
a_Red_Carpet_Arrival_in_US_Market.aspx>.


Zarantonello, L & Luomala, H 2011, ‗Dear Mr Chocolate: Constructing a typology of
contextualized chocolate consumption experiences through qualitative diary research‘,
Qualitative Market Research: An International Journal, vol. 14, no. 1, pp. 55-82, viewed 26
August 2011, Emerald Database.




                                                                                              PAGE 39 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


APPENDIX 1A: VOLUME SALES


Sales of Ice Cream by Category: Volume 2005-2010

'000 litres                               2005        2006        2007       2008       2009          2010
Frozen Yoghurt                                -           -           -          -           -            -
Ice Cream Parlours                    1,278.01    1,552.78     1,607.13   1,783.91   1,792.83    1,855.58
Impulse Ice Cream                     2,936.59    3,019.25     3,084.95   3,154.94   3,286.12    3,426.61
- Multi-Pack Dairy Ice Cream          1,118.72    1,169.06     1,215.82   1,258.38   1,377.92    1,515.71
- Multi-Pack Water Ice Cream                  -           -           -          -           -            -
- Single Portion Dairy Ice Cream      1,373.64    1,414.85     1,440.32   1,476.32   1,498.47    1,513.45
- Single Portion Water Ice Cream        444.23      435.35      428.82     420.24     409.73         397.44
Retail Artisanal Ice Cream                    -           -           -          -           -            -
Take-Home Ice Cream                   8,832.60    9,166.59     9,344.18   9,482.42   9,575.31    9,762.91
- Take-Home Dairy Ice Cream           8,832.60    9,166.59     9,344.18   9,482.42   9,575.31    9,762.91
-- Bulk Ice Cream                     8,446.26    8,784.11     8,959.79   9,094.19   9,185.13    9,368.83
-- Ice Cream Desserts                   386.34      382.48      384.39     388.24     390.18         394.08
- Take-Home Water Ice Cream                   -           -           -          -           -            -
Ice Cream                           13,047.20 13,738.62 14,036.26 14,421.27 14,654.26 15,045.10




                                                                                     PAGE 40 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


APPENDIX 1B: SALES FORECAST


Forecast Sales of Ice Cream by Category: Volume 2010-2015


S$ million                                    2010      2011        2012     2013     2014       2015
Frozen Yoghurt                                    -            -        -        -         -          -
Ice Cream Parlours                           39.98      41.65       42.93    43.98    45.06     46.16
Impulse Ice Cream                            42.64      44.27       45.90    47.58    49.32     51.09
- Multi-Pack Dairy Ice Cream                 18.27      20.19       22.10    24.09    26.14     28.23
- Multi-Pack Water Ice Cream                      -            -        -        -         -          -
- Single Portion Dairy Ice Cream             21.81      21.64       21.44    21.23    21.00     20.74
- Single Portion Water Ice Cream               2.56      2.45        2.35     2.26     2.18       2.11
Retail Artisanal Ice Cream                        -            -        -        -         -          -
Take-Home Ice Cream                          70.50      71.14       71.71    72.22    72.66     73.04
- Take-Home Dairy Ice Cream                  70.50      71.14       71.71    72.22    72.66     73.04
-- Bulk Ice Cream                            66.10      66.76       67.36    67.90    68.38     68.79
-- Ice CreamDesserts                           4.40      4.38        4.35     4.32     4.29       4.25
- Take-Home Water Ice Cream                       -            -        -        -         -          -
Ice Cream                                   153.12    157.07       160.54   163.79   167.05    170.29




                                                                                      PAGE 41 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


APPENDIX 1C: BRAND SHARES



Ice Cream Brand Shares 2006-2009


Brand            Company                                        2006    2007    2008    2009
Cornetto         Unilever Singapore Pte Ltd                     18.08   18.61   19.15   20.16
Drumstick        Nestlé Singapore Pte Ltd                        9.34    9.96   10.27   10.75
Magnolia         F&N Foods (S) Pte Ltd                           7.77    8.02    8.75    7.97
Magnum           Unilever Singapore Pte Ltd                      5.16    5.33    5.53    5.61
Häagen Dazs      General Mills Asia Pte Ltd                      4.59    4.77    4.70    4.81
King's           King's Creameries (Singapore) Pte Ltd           3.82    3.83    3.77    3.80
Magic Cup        King's Creameries (Singapore) Pte Ltd           4.01    3.36    3.04    2.41
Fruiti           Unilever Singapore Pte Ltd                      1.58    1.56    1.62    1.53
FairPrice        NTUC Fairprice Co-operative Pte Ltd             0.87    0.91    1.13    1.40
Cravio           F&N Foods (S) Pte Ltd                           1.22    1.09    0.75    1.00
Cadbury's        Cadbury Singapore Pte Ltd                       1.72    1.12    0.84    0.80
Crunch           Nestlé Singapore Pte Ltd                        1.22    1.09    1.13    0.80
Traffic Light    Nestlé Singapore Pte Ltd                           -    0.41    0.49    0.46
Carrefour        Carrefour Singapore Pte Ltd                     0.17    0.18    0.19    0.20
Solero           Unilever Singapore Pte Ltd                      0.71    0.67       -        -
Frutips          Nestlé Singapore Pte Ltd                        0.47       -       -        -
Others           Others                                         39.26   39.07   38.65   38.29
Total            Total                                         100.00 100.00 100.00 100.00




                                                                                    PAGE 42 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


APPENDIX 2: RECEIPTS


Price of Drumstick (Kit Kat) and Cornetto (Royale)




Price of Magnolia (Supremo)




                                                               PAGE 43 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


APPENDIX 3: MAGAZINE SCANS


Magazine Scans from ‗Female‘ and ‗Her World‘ magazines.




                                                               PAGE 44 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


APPENDIX 4: DIRECT EXPERIENCES


Magnum Double Caramel
‗Pleasure Suite‘ and ‗Launch Event‘ at Mandarin Gallery, Orchard Road.




(Images taken from Facebook: Magnum)




                                                                         PAGE 45 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


APPENDIX 5: MARKETERS PROMOTIONAL EFFORTS


Promotional advertisements and efforts by Marketers.




                                                               PAGE 46 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


APPENDIX 6: POP DISPLAYS


In-Store Point of Purchase (POP) promotional display.




                                                               PAGE 47 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


APPENDIX 7: COMPETITOR’S PRICING


In-Store displays of competitor, Häagen Dazs pricing.




                                                               PAGE 48 OF 49
BBMFT: MKTG 1052 BUYER BEHAVIOUR (TASK A – GROUP ASSIGNMENT)


APPENDIX 8: PRINT ADVERTISEMENTS


Print Advertisements of Magnum Double Caramel & Häagen Dazs.




                                                               PAGE 49 OF 49

								
To top