HOW DOES MARKETING AFFECT CONSUMER BEHAVIOR NESTLE CASE STUDY - 12925 Words

HOW DOES MARKETING AFFECT CONSUMER BEHAVIOR: NESTLE CASE STUDY (Thesis Sample) Content: HOW DOES MARKETING AFFECT CONSUMER BEHAVIOR: NESTLE CASE STUDY Course Tutor Institution Date Contents  TOC \o "1-3" \h \z \u  HYPERLINK \l "_Toc459639174"
Chapter One  PAGEREF _Toc459639174 \h
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1.0 Background  PAGEREF _Toc459639175 \h
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1.1 Organizational Context-Nestle Company  PAGEREF _Toc459639176 \h
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1.3 Research Aims and Objectives.  PAGEREF _Toc459639177 \h
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1.4 Significance of the Study  PAGEREF _Toc459639178 \h
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1.5 Limitations  PAGEREF _Toc459639179 \h
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1.6 Dispositions  PAGEREF _Toc459639180 \h
7  HYPERLINK \l "_Toc459639181"
Chapter Two: Literature Review  PAGEREF _Toc459639181 \h
9  HYPERLINK \l "_Toc459639182"
2.0 Introduction  PAGEREF _Toc459639182 \h
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2. 1 Marketing Defined  PAGEREF _Toc459639183 \h
9  HYPERLINK \l "_Toc459639184"
2.2 Consumer Behavior Defined  PAGEREF _Toc459639184 \h
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2.3 Sales Promotions  PAGEREF _Toc459639185 \h
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2.4 Brand Image and Awareness  PAGEREF _Toc459639186 \h
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2.5 Creativity  PAGEREF _Toc459639187 \h
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2.6 Purchase Intention  PAGEREF _Toc459639188 \h
15  HYPERLINK \l "_Toc459639189"
2.7 Impact of Social Media on Consumer Behavior  PAGEREF _Toc459639189 \h
15  HYPERLINK \l "_Toc459639190"
2.8 Impact of Advertising on Store Brand Purchase Intention  PAGEREF _Toc459639190 \h
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2.9 Overall Impact of Advertising on Consumer Behavior  PAGEREF _Toc459639191 \h
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2.9.1 Gaps in the Literature  PAGEREF _Toc459639192 \h
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Chapter Three: Methodology  PAGEREF _Toc459639193 \h
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3.1 Introduction  PAGEREF _Toc459639194 \h
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3.2 Research Philosophy  PAGEREF _Toc459639195 \h
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3.3 Research Approach  PAGEREF _Toc459639196 \h
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3.4 Research Design and Strategy  PAGEREF _Toc459639197 \h
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3.5 Ethical Considerations  PAGEREF _Toc459639198 \h
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3.6 Data Collection and Analysis  PAGEREF _Toc459639199 \h
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3.6.1Sampling Method  PAGEREF _Toc459639200 \h
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3.6.2 Description of the Questionnaire  PAGEREF _Toc459639201 \h
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3.6.3 Questionnaire Distribution  PAGEREF _Toc459639202 \h
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3.6.4 Data Analysis  PAGEREF _Toc459639203 \h
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Chapter Four: Results and Analysis  PAGEREF _Toc459639204 \h
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4.0 Introduction  PAGEREF _Toc459639205 \h
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4.1 Marketing approach that has highest impact on consumer purchase intent  PAGEREF _Toc459639206 \h
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4.2 Impact of social media marketing on the consumer purchase behavior  PAGEREF _Toc459639207 \h
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4.3 Impact of marketing on consumer behavior  PAGEREF _Toc459639208 \h
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4.4 Credibility of an advertisement affect consumer behavior  PAGEREF _Toc459639209 \h
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4.5 How culture mediate the relationship between marketing and consumer behavior  PAGEREF _Toc459639210 \h
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Chapter Five: Conclusion and Recommendations  PAGEREF _Toc459639211 \h
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5.0 Conclusion  PAGEREF _Toc459639212 \h
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5.1 Recommendations  PAGEREF _Toc459639213 \h
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References  PAGEREF _Toc459639214 \h
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Appendix  PAGEREF _Toc459639215 \h
64  How Does Marketing Affect Consumer Behavior: Nestle Case Study Chapter One: Introduction 1.0 Background Wherever people go, they are constantly bombarded with marketing messages. With the enormous amounts of advertisement that people are subjected to every day, it becomes impossible for them to respond to all of them. Contrary to the expectations of marketers, consumers are increasingly finding ways of avoiding being influenced by the traditional ad messages by mentally blocking them or using technology (Kotler & Armstrong, 2008). Companies can address this problem by increasing the number of ads and adopt new marketing strategies that have been proven to have a notable impact on con sumer behavior (Raju, 2013). However, the sad reality is that as businesses increase their marketing budget, consumers will increasingly ignore the messages leading to a waste of time, efforts, and resources (Rai, 2013). If consumers consider a marketing campaign as noncreative and boring, it will not attract their attention implying that the money spent on the ads would be wasted. On the other hand, however, a more creative campaign is likely to have a positive impact on the consumer's brand attitude and purchase intent. Moreover, if consumers perceive a campaign as credible, then it will have a notable positive impact on the brand image and brand attitude (Levy & Gendel-Guterman, 2012). Therefore, marketers have been urged to code their marketing messages in a unique way to ensure that they stand out from the competitors and reach their target audience. However, with the perceived positive and negative impact of marketing, it is unclear to what extent such campaign leads to des irable consumer behavior. As such, studies are yet to come up with conclusive findings of the type of marketing that have the most positive impact on consumer habits. For these reasons, there is a need for a more comprehensive study to examine the impact of marketing consumer behavior. 1.1 Organizational Context-Nestle Company Nestle S.A is a Swiss multinational food and a drink corporation with headquarters in Vevey, Vaud, Switzerland. The company was established in 1905 following the merger of Anglo-Swiss Milk Company with Farine Lactee Henri Nestle (Rajeswari & Kirthika 2016). Since then, the company has grown rapidly to become a major player in the industry. It is currently the world’s largest food company by revenue. Its product includes medical food, baby food, breakfast cereals, dairy products, bottled water, snacks, and frozen food. The company has over 440 factories, and it operates in about 194 countries. It employs close to 400000 people (Rajeswari & Kirthika 201 6). Although Nestle is a major player in the industry, it faces stiff competition from other multinational food and drink companies in the world. The company has been compelled to invest in marketing to attract the consumers for its fast moving goods. Amid the competition in the market, the company has increased its marketing budget for new brands in different markets across the world. The company has revamped its spending on promotion and advertising to regain the lost ground following the Maggi ban. The company wants to restore consumer confidence through advertisements. More particularly, its focus on digital advertising appears to be on the rise with intent to capture an increasingly online customer base. While this is a welcome move for the company, it is unclear whether the increases in the marketing budget will translate into a positive outcome for the business in influencing consumer purchase behavior. It is a critical question considering that the costs incurred in the ma rketing may potentially eat into the profits for the company. 1.3 Research Aims and Objectives. Many factors influence consumer behavior. Companies must understand these factors to ensure that they position their products in ways that appeal to the target audience. Among the most notable elements, is marketing? It is not uncommon for companies that manufacture and sell similar products to compete with each other on the marketing aspect. While some firms have penetrated the market through aggressive marketing campaigns, others have only achieved limited success. Therefore, it comes out clearly that the relationship between marketing and consumer behavior is a complex one. With that said, the purpose of this study is to determine the impact of marketing on consumer behavior. The specific objectives are as follows 1. To determine the impact of social media marketing on consumer purchase behavior 2. To assess the impact of TV advertisement on brand purchase intent 3. How doe s marketing affect consumer behavior? 4. Does culture influence the relationship between marketing and consumer behavior 5. Which marketing approach between, sales promotions, social media, and TV advertising, has the highest impact on brand purchase intent. 6. How does the credibility of marketing influence consumer behavior 1.4 Significance of the Study The present study is highly significant as it will help identify the impact of marketing on consumer behavior. The outcome of the survey will contribute to informing companies and marketers about the value of marketing and the type of marketing techniques they should adopt to achieve the highest positive impact on the consumers. It will help the marketer allocate their marketing budget in a careful manner to prevent any wastage. By understanding consumer behavior, marketers will ensure that they design and select the right marketing strategies. 1.5 Limitations Although the study was carefully planned, there were cer tain shortcomings and constraints. One of the majo...

Best Practices for Market Sizing for Case Interviews Part 3

Best Practice #1: Start at the Top So far in our series of Casing 101 blogs, we have reviewed structuring the problem via an initial framework and navigating case math. In this edition, we will cover another problem-solving exercise that is common in case interviews: market sizing. At first, market sizing may seem daunting – how can we possibly estimate the number of televisions sold annually in Boston, for example? But once you learn the technique and get comfortable making certain assumptions, you will find that it’s actually an area where well-prepared candidates can differentiate themselves. Best Practice #1: Start at the Top Many market sizing exercises will ask you to find, for a given country, the number of units sold or the number of people participating in an activity. At first, it undoubtedly will feel daunting to come up with a reasonable estimate. But it is actually quite easy to do if you start with the population of the market and then make a series of defensible assumptions to drill down. To help you start at the top, it is helpful to commit the following figures to memory. Note that some of these statistics are approximations, but ones that will make your math much easier. US Population: 300 million China Population: 1.4 billion India population: 1.3 billion Europe population: 750 million Average people per household: 2.5 or 3 people, depending on which makes the math easier Note that the people per household figure is important, because many products for which you are sizing a market are bought at the household level, and not the individual level. For instance, if you were asked to find the number of microwaves sold annually in Europe, you would want to calculate the number of households in Europe, because it is very unlikely that most households would have more than one microwave. Best Practice #2: Segment the Population Frequently in market sizing exercises, you will be dealing with a product that is likely to appeal differently to various segments of the population. Accordingly, it is important to show your interviewer that you understand this dynamic, and make assumptions accordingly. For instance, if you were asked to size the number of coffeemakers sold annually in the US, calculating the number of households in the US is not enough. You also need to show your interviewer that you understand that not every household likes to drink coffee. Accordingly, your calculations to get to the number of households that drink coffee might look like as follows: In other cases, you may go as far as to segment the population into two separate groups for which you will size the market. For example, if you are asked how many video games are sold in the US, you might want to break the US population down into individuals above and below the age of 35, as the number of people playing video games in each segment likely differs. Once you break the population into these two segments, you need to make assumptions for different penetration rates in each demographic. Best Practice #3: Sizing the Population Isn’t Enough; Make Further Assumptions to Get to The True Addressable Market A common mistake that candidates make is to size a broad sub-segment of the population and stop there. Often, there are additional assumptions that need to be made to calculate size of the annual market into which the client is selling. For example, in the calculations above, many candidates arrive at 90 million coffeemakers in the US, and determine that this figure represents the annual size of the market. However, is it reasonable to assume that all 90 million households with a coffeemaker replace their coffeemaker each year? When you arrive at a number that you think represents the market size you are trying to calculate, take an extra moment to sanity check in your head whether the figure you’ve arrived at really makes sense. Do you really think it’s reasonable that 90 million coffeemakers are sold in the US every year? If the answer is no, there is probably an extra assumption or two that are necessary in order to further drill down to a reasonable answer. Accordingly, always be cognizant of what additional assumptions might be necessary. In this instance, we have 90 million coffeemakers across the US. How often are these replaced? Any assumption between 5 and 10 years seems reasonable and defensible, allowing you to arrive at 9-18 million coffeemakers sold annually. Your full set of calculations on the page should look as follows: Best Practice 4: Contextualize Your Answer As previously discussed in last month’s write-up on case math, performing calculations that give you the right answer is not enough. You must also be able to take your analysis and contextualize the output, showing that you understand the implications of the analysis performed. So when you size a market, it’s important to explain what this analysis tells your client about their issues and opportunities. For instance, if 18 million coffeemakers are sold per year, and you calculate that the client only has 4% market share, explain to your interviewer that our client has little pricing power in the market given its small share, but that there remains lots of opportunity to increase the volume of coffeemakers they sell annually. -- Originally from northern New Jersey, Ryan is an MBA Candidate at Columbia Business School, where he is a Columbia Fellow. After graduating from the University of Notre Dame, he worked for six years in New York in investment banking and equity research. After passing all three levels of the CFA exam on the first attempt, Ryan finally realized he would rather work alongside companies to help them grow, as opposed to determining what their stocks were worth. He made the transition to Columbia to pursue a career in management consulting, and will be joining a consulting firm upon graduation. ;