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NEW APPROACH TO MEASURING CONSUMER BEHAVIOR

Group Members

Akanksha Shrivastava (10IB-) Neerav Harsh (10DM-192) Rohit Mantri (10DM-126) Satya Bharadwaj (10DM-128) Sameer Wahie (10DM-133) Sanjay Rughwani (10DM-137)

AGENDA

Consumer Research Methods Frito Lay - Background Potential Issues Realization through Observational Research A New Line of Inquiry Outcomes of the New Approach Creating the Demand Landscape Frito Lays Actions (Marketing Mix) Selecting the Best Research Methods

CONSUMER RESEARCH METHODS

FRITO LAY - BRANDS

FRITO LAY - 2005

POTENTIAL ISSUES

REALIZATION

A NEW LINE OF INQUIRY

New Approach Shifted its focus from sizing and pricing Outside-In perspective instead of usual Inside-In Greatest concern is plumbing the depth of 3 Us- usage, users, use

A NEW LINE OF INQUIRY


Old Method
Purchase behavior

New line of Enquiry


Consumption context

Brief contact with statistically significant sample Deep contact with a few dozen Asked shopkeepers about how they felt about broad category of snacks Research Method Questionnaire People were asked to respond to the given questionnaire Respondents were statistically significant Understood how people interacted with snacks and how snacking became part and parcel of Research Method Dairyand situations activities, goals, contexts 35 selected people were given cameras and dairies and asked to record their activities, episodes and Activities are statistically significant moments, thoughts, and feelings around framing question of food consumption for 30 days

A NEW LINE OF INQUIRY FOLLOW UP


Journals illuminated wide range of associations & attitudes that exist around the consumption Respondents were asked the following questions based on journals:
Tell me about this moment, just this particular episode in your life What is so special about it? What happened before this episode and afterward?

The above led to deeper exploration of consumer needs and emotions After a break, the respondents were asked to fill a questionnaire exploring their emotions and perceptions. Then they were asked specifically about Product portfolio of Frito Lay

KEY INSIGHTS FROM DEMAND LANDSCAPE


How different brands in a company portfolio link to different behaviors How these behaviors invoke certain needs and wants

The contexts in which these behaviors are combined with complex emotions, urges, and passions

OUTCOMES
Opportunity to combine direct and indirect methods of research Increased the reliability & validity of data and structured existing data in new ways An outside-in perspective by observing consumers
First at Point of Purchase Then at Point of Purpose

Observed and reported CB more reliable than direct inquiry

CREATING THE DEMAND LANDSCAPE

IDENTIFYING BASIC ELEMENTS

GROUPING INTO DEMAND CLUSTERS


Grouping through similarities of the activities, common themes emerging from the goals and customers priorities for these goals. Frito-Lay took into account 10,327 activities, 33,000 goals, and several hundred use contexts. Ultimately narrowed the analysis down to just 15 goals associated with several hundreds of activities E.g. Functional goals- to correct poor health, Emotional goals- to treat or to indulge Result: Frito-Lay could see how its products fit into the lives of people over the broad range of activities and goals associated with consumption

SATURATING
Using secondary/existing traditional research to saturate Frito-Lay used its own extensive research (iTrac) & syndicated World of snacks study of Landis World of snacks study provided customer information across 250 attributes. These attributes were mapped into demand clusters Landis also provided product-category-level data, such as the percentage of customers who consider potato chips to have nutritional value. Through this crossing of existing data with the demand clusters, the size of the demand in each cluster was determined.

STRATEGIC USEFULNESS OF CLUSTERS


Frito-Lay used three levels of criteria to evaluate the clusters
1. The relative priority that customers place in their lives on particular goal or activity or cluster. 2. Channel Fit- To what extent a particular demand cluster was compatible with the IC channel? 3. Was the market attractive?

Some highly valuable demand clusters were also highly competitive and over targeted by alternative product offerings, E.g. Beef jerky or cookies

EVALUATING BRAND w.r.t. DEMAND LANDSCAPE


To understand whether the difference in use and consumption of a particular brand is due to
Product itself or The way it has been traditionally positioned

Important insights for Frito-Lay:

Each product played a different role in customers lives Customers associated Lays with specific use contexts, activities, and goal achievement that had more to do with emotions surrounding these contexts than with potato chips Activities were moments of simple joy that often invoked innerdirected feelings, their meaning to oneself Intersection of health and wellness with comfort and reassurance was a place where it could become most relevant

Frito-Lay decided to refocus the positioning to stress moments of simple pleasure

FRITO-LAYS ACTIONS (MARKETING MIX)


Promotion
Away from the product quality to its inherent goodness, wholesomeness, authenticity, realness, genuineness and the values of home intersected in those moments that matter to consumers Advertisements used genuine people instead of actors. Asked customers to take a smile break, read a funny comic strip

Place
Places of relaxation like picnic spots, and not at places of formal meetings, bars or formal events

Price
Not tweaked

Product

FRITO LAY POST RESEARCH

FRITO LAY and Decision Insight won American Marketing Association EXPLOR Award for Innovation. Capture the Smiles of Summer - with Kodak Lays Puts an End to Naked Sandwiches

SELECTING THE BEST RESEARCH METHODS DIG MODEL


Development Firs, Innovation and Growth Model Focus on finding ways to create a transformational change in consumers everyday life.

SELECTING THE BEST RESEARCH METHODS

Enrich
In - Context

Define
Day Reconstruction Method Photo Observation Written Journals

Confessional Interviews Consumer Stories Mind Mapping

Refine
Out of Context

Explore
Day Reconstruction Method Un-focus Groups Talk-through Research

Archetypal Research Focus Groups Metaphor Elicitation Technique

Focused

Broad

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