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Assignment - Part B
Measuring & Interpreting Brand Performance
Measures
Executive Summary
The Marketing Director for Smiths company has provided us with some
quantitative data regarding consumers purchasing behavior within the
snack food category. The Data reports information across 5 different chips
brands relating to their brand performance measures, competition, and
attitudinal response across various demographics. The company wants to
understand its comparative position in the market and some key findings
from the analysis. Brand performance measures allow marketers to
predict future behaviour by analysing known patterns especially within
repeat purchase markets. Smiths stands with the highest market share of
34% within the category followed by Kettle, Doritos and so on. Penetration
and all other measures are seen to decrease in line with size except the
category buying rate which only increased. Sole loyalty for Smiths is
unusually high though. Its important to note that repertoire markets
follow the patterns established by Double Jeopardy. This law states that
big brands have more customers that are slightly more loyal compared to
smaller brands. The duplication of purchase law allows us to determine
how much a brand shares with its competitors, and from our analysis
Kettle and Jumpys shared slightly more and less with Smiths than the
expected respectively. Similarly Kettle shared higher than the expected
with Smiths, indicating that perhaps these items had similar pricing
schemes, similar categories in which they were placed as well as being
similarly distributed and placed (in superstores) which is why they shared
more than expected. In terms of brand salience and attitude analysis, it
was concluded that brand salience was necessary for brands to focus on,
in order to create top of mind awareness of a brand for customers to
consider purchasing it in the future. Attitudes were not indicative of future
purchases as behaviour precedes attitudes and hence it was crucial to
target the mass market, by promoting the brand and creating positive
experiences. Lastly, when analysing trends within segmented brands
according to demographics, it was seen that brands did not vary in terms
of how customers purchased them across the category and differences
were insignificant. So much that there was no need to target specific
marketing action as all categories tended to behave the same, therefore
the focus was again on the mass market by effectively advertising and
distributing their chips to many stores, making it readily available. In
addition, for sales volumes to increase, they must differentiate their chips
category from the rest by developing a variety of flavours for the
customers.
Maria Maimoon Zafar (110137340) Taylah Andrews/Wednesdays (1011am) | UniSA
Brand Performance
Brand performance measures are used to identify and evaluate the
performance of brands within a market. They allow one to predict future
behaviour by analysing known patterns especially within repeat purchase
markets (Ehrenberg, 2004). The data set provides us with important
information regarding peoples chips buying behaviour within the snack
food category.
Its been noted that Smiths has the highest market share, accounting for
34% sales of the entire category. Kettle competes with Smiths with
second largest brand size of 24% and they keep decreasing for each
following brand. According to its brand size, the proportion of people who
bought Smiths brand at least once in the period was 72%, meaning that
they were most successful in attracting new customers and as the brand
sizes decreased, so did the penetration for each brand. The Average
purchase frequencies did not vary much amongst the brands as one
wouldve thought in relation to market shares and were close to the
expected average. Smiths had the highest purchase rate of 2.2 whereas
Jumpys was at 1.2 which was much lower than the average. Its important
to note that considering this as a repertoire market, the patterns showed
double jeopardy at play, with big brands having more customers buying
their brands more often and vice versa (Sharp 2010). The category buying
rate showed an unusual trend, increasing with the decrease in brand size.
Jumpys had the highest proportion with 8.3 category purchases made of
the total purchases made of the brand. So it was above the expected
average.
In terms of the share of category requirements, the values again
decreased in line with the market shares indicating double jeopardy
(Goodhardt 2002). Smiths chips had a 40% share of purchases made by
its customers towards the brand out of all the purchases they made but it
was considerably higher than the expected average, as well as Kettle at
37%. Jumpys had a share of 14% which was fairly lower than all other
brands in the category and the average of 28%. This was indicative of a
change of pace brand. In addition, Smiths brand had an unusually high
loyalty of 22% which was 15.1%, greater than the average and kettle by
14%. Doritos stood at a 4.2% whereas Red rock deli and Jumpys laid at
0%. Henceforth, Sole loyalty greatly varied within the distribution.
(Q2)
Maria Maimoon Zafar (110137340) Taylah Andrews/Wednesdays (1011am) | UniSA
Brand Attitude
(Q3)
An attitude is a positive or negative, evaluation towards an object, person
or event which tends to remain stable over time (Franzen, 1999). It is
essential for brands to understand their customers attitudes, and
preferences, because some researchers assume that they can predict
their future purchasing behaviour. Various methods are used to record
Maria Maimoon Zafar (110137340) Taylah Andrews/Wednesdays (1011am) | UniSA
(Q4)
Maria Maimoon Zafar (110137340) Taylah Andrews/Wednesdays (1011am) | UniSA
(Q5)
As far as changing the attitude of people towards our brand is concerned,
it is important to note that very few people tend to hold negative attitudes
towards brand i.e. less than 10% of the responses (East et al. 2013) so I
disagree with the statement. Its more probable for non-users to just not
think of that brand at all. Behaviours precede attitudes, so in order to
change negative attitudes, its important to create positive behaviours
and experiences, make their brands noticeable to consumers so they can
include them in their buying repertoire by providing positive reinforcement
(Kostadinova, 2013). Advertising and creating price promotion schemes
will allow mental availability which will be effective.
(Q7)
These deviations were insignificant as they were within 10% of the
relative average. This henceforth showed that theres very little difference
between the brands in terms of the types of customers they attract and
certainly not enough of a difference to target specific marketing action.
Smiths shouldnt restrict itself to serving a particular segment. It should
attract and focus on the mass market through better products, powerful
advertising, more effective distribution and pricing and higher demands
from consumers who can choose from a growing variety of products.
Reference List
1. Barwise, T.P. and Ehrenberg, A.S.C. (1985) Consumer Beliefs and
Brand Usage, Journal of the Market Research Society 27(2): 8193.
2. Bem, D. J. (1968). Attitudes as self-descriptions: Another look at the
attitude-behavior link. In A. G. Greenwald, T. C. Brock, & T. M.