11/2/2015

Attention: Majans Pty Ltd Improving Brand Loyalty among the

Majans Bhuja Range

Brooke McGregor n9432515 QUT BUSINESS STUDENT

Majans Pty Ltd has had an extensive history and cult following by providing healthy snacks

which are 100% natural, vegetarian and vegan. Throughout Majans’ 31 years of sales,

marketers have positioned the product to be a healthier alternative to potato chips to gain

attention from the mainstream market. As a consultant for Majans Pty Ltd, it is acknowledged

that this is a valid marketing strategy however there is an opportunity to directly promote the

benefits of consuming Majans Snacks by demonstrating the versatility of the product. Majans

signature spicy taste has initiated a cult following whilst satisfying consumer’s health

concerns. It is evident that by utilising academic studies and frameworks will further

encourage the repurchase rate of the product.

Literature Review

Demonstrating the versatility of a product can influence consumer’s buying behaviour at the

supermarket. Repositioning is the deliberate, strategic decision to change the way goods and

services are viewed by consumers (Hawks, 2007). According to Fuller (1994) companies may

be startled to know that consumers (more than likely) have come up with a new way to use

the product. This asserts that, a whole new market direction can be taken when marketers

demonstrate the versatility of a product. Crawford (1985) added that innovation typologies

that includes two board categories of (1) attributes (features and benefits) and (2) surrogates

(unique selling proposition) are most effective when repositioning a product. Repositioning a

healthy snack food like Majans to be a flavoursome lifestyle ingredient is rare however not

unsuccessful when the features and benefits are explained to consumers. Consumers

acquiring a knowledge benefit reinforces a loyal customer base particularly at the

supermarket. For example, when the cereal sector provided information on how to use their

product differently, sales increased (Euromonitor, 2014). Brands such as Kellogg’s

Cornflakes and Uncle Toby’s Rolled Oats have expanded their market capacity from $28bn

Euromonitor, 2014) to a $311.1bn industry (Euromonitor, 2014), just by demonstrating

versatility on their packaging. Majans global market capacity could reach up to $550bn as the

snack food and baking industry are regarded as the most lucrative industries (Euromonitor,

2014). If repositioned effectively, a 5% increase in sales can increase a company’s

profitability by 40 to 95% (Reichheld: Teal, 2001). Development time for a product to be

repositioned is minimum however in order to capitalise on a new market, marketers must

maintain old customer loyalty base to reinforce new sales (Reichheld: Teal 2001).

The importance of brand loyalty has been recognized in marketing literature for at least three

decades. In connection with this, Aaker (1991) has discussed the role of loyalty in the brand

equity process and has specifically noted that brand loyalty leads to certain marketing

advantages such as reduced marketing costs, exposure to new customer and greater trade

leverage. Dick and Basu (1994) correlates with Aaker’s (1991) notion however also adds that

loyalty-related market strategies such as a favourable word of mouth possesses greater merit

than strategic marketing strategies. It can be argued that brands which have a cult-like

following do not need to advertise via traditional forms of media rather marketers must utilise

the social aspect of the brand to reinforce consumer repurchase rate. By promoting this brand

image of community, consumer's brand relationship will be directly enhanced. Scholars such

as Chaudhuri and Holobrook (2001) and Muniz and O’Guinn (2001) consider the previous

studies however emphasize that the emotional response for a brand has a relatively high

positive correlation with brand loyalty and will reduce the customer sensibility on price when

shopping at the supermarket. It is evident that emotional response toward a particular brand

promotes stronger relationship thus proving to be the key factor which influences customer

acceptance and recognition.

Theory, Model and Frameworks

The conceptual framework of brand loyalty has become an increasing important issue in

marketing theory and practice. The basis of academic studies from Oliver (1997) show that

there are various factors that contribute to brand loyalty, they include: familiarity of the

brand, satisfaction of consumer when purchasing the brand, trust of brand and attitudinal

loyalty (FSTA). The FSTA model covers the full extent of brand loyalty based on the

hierarchy effects of cognitive, affective and behavioural intent in order to obtain a repeat

purchase (Oliver, 1997). A factor that lacks within the Majans brand is attitudinal loyalty as

the recipe and brand image changed in 2004. Therefore consumers lost trust and consumer’s

cognitive and behavioural connections changed as it seemed unfamiliar. Consequently this

led to a decrease in top of mind purchases. This is evident as on product review pages as

Majans Bhuja Mix is rated between 2.5 to 3 stars (ProductReview, 2015). Consumers have

commented “Ok, but not what it used to be” and “The Magic is Lost”. This has directly

impacted on the attitudinal element of a customer’s brand preference which is required to

ensure repeat purchases (Latifl, Islam & Noorl, 2014). In summary, Majans must consider all

aspects of FSTA model as when one aspect of the model is weak like attitudinal loyalty,

product repurchases and brand loyalty are harder to obtain.

Recommendations

The following recommendations to Majans Pty Ltd directly incorporates aspects of the FSTA

model and Literature Review.

1.0 Increase Familiarity of Majans Bhuja range by Enhancing the ‘Cult Factor’

Brand familiarity refers to the cognitive representations of brand experiences by a consumer.

As specified in the brief, Majans Pty Ltd has obtained a cult following however this does not

translate to the mainstream market. In order to utilize the niche popularity of the product,

social ties among consumers and the brand must be evident as there is a correlation between

social mindfulness and brand loyalty. This is due to the ‘brand community’ as consumers

who identify with Majans brand principles are more likely to repurchase the product and

share their experiences with other members (Muniz and O’Guinn, 2001). As specified in the

Literature Review, Dick: Basu (1994) and Aaker (1991) perceive positive word of mouth

reviews (WOM) as just as effective as strategic marketing practises. The motivation to

conform through the possession of Majans Bhuja mix will stem favourable WOM reviews in

the brand community. In essence, by providing a community which stimulates positive

conversation about Majans will improve brand familiarity.

The use of social media provides a platform to create a community base whilst informing

unfamiliar consumers about Majans. An issue that is relevant when accessing Majans

Facebook page is that it is difficult to find due to inconsistent branding as the page is titled

“Bhuja” not Majans Bhuja Mix (Refer to Appendix 1). This issue must be addressed in order

to promote brand familiarity online and direct traffic to the page. A strategy to increase brand

familiarity and promote the brand’s ‘cult factor’ is to conduct contests and promotional

activities via Majans Bhuja Facebook page. By creating promotional contests such as,

‘sharing’ creative ways to use the products on Majans Facebook page, will create a

community base in which consumers can interact with the brand and community members.

According to the FSTA model, brand familiarity is most effective when consumers have

‘brand related experiences’ (Alba & Hutchinson, 1987). Therefore, a combination of brand

familiarity and WOM interactions will moderate information searches when shopping, as

consumers have had an online ‘brand related experience’. This will initiate consumers to try

or repurchase the product as they are familiar with the brand’s attributes due to these online

interactions (Sundaram &Webster, 1999).

2.0 Demonstrate the Innovative Ways to use Majans Products to Increase

Consumer Satisfaction Rate

A continuous innovation refers minor changes in a consumer’s behaviour when a product’s

purpose is modified. Quintessentially, when a product ‘changes’ or adapts there is a minimal

disruptive effect to their past buying behaviour. The change is used to be a point of difference

among competitors. Demonstrating the versatility of Majans Bhuja Mix when used as an

ingredient is a continuous innovation as it is evolutionary rather than revolutionary. This

leads to an improvement in a customer’s satisfaction rate as innovation such as this adds to

the product’s convenience and the variety of choices available. As specified in the Literature

Review, Crawford (1985) stated that, “innovation typologies includes two board categories of

(1) attributes (features and benefits) and (2) surrogates and are most effective when

repositioning a product”. Therefore by demonstrating these attributes in supermarkets

demonstrations and on packaging will appeal to consumers as they are getting more than just

a snack, rather a lifestyle ingredient (Refer to Appendix 2).

In order to effectively promote Majans Bhuja Mix as a healthy lifestyle ingredient

demonstrations in supermarkets will intrigue customers as it directly results in a positive/

negative judgement on Majans perceived performance or result. Satisfying a consumers

expectations at supermarket demonstrations in health driven areas (Refer to Appendix 3) will

appeal to key consumer insights and will promote cumulative satisfaction. When consumers

are happy with their brand experience they are likely to share it on social media therefore

targeting health driven areas will create sub-target markets due to the online community base

(Edgecomb, 2013). According to the FSTA model, cumulative satisfaction promotes brand

loyalty as it is more general and repeatedly used than episode specific satisfaction

(transaction-specific satisfaction).

Please refer to Appendix 4 for a slight change in packaging in order to reflect the versatility

of Majans Bhuja Mix and increase cumulative satisfaction. Please note: This changes are

minor and do not contradict brand morals or principles.

3.0 Create a Video Campaign to Highlight Behaviourally and Attitudinally Loyal

Consumers

Consumers develop trust in a brand based on correlating briefs and morals regarding their

expectation of company behaviour and the performance of products a brand represents.

Whilst having consumers who are behaviourally loyal is of benefit to a company, a consumer

who is attitudinally loyal provides a platform to invite more consumers to the “Majans

Family” thus creating more sales. As highlighted in the FSTA model, attitudinally loyal

consumers are defined by; customer’s intention of repeat purchase, recommendation to

others, low switching to better rivals, attachment and willingness to pay a premium price

(Latifl, Islam & Noorl, 2014). For this reason, attitudinally loyal consumers provide greater

credibility than other mediums of advertisements as real consumers are sharing experiences

and brand connections with others. Therefore by creating a video campaign to promote the

benefits of Majans Bhuja Snacks through attitudinal loyalty and WOM reviews will

encourage consumers to remain loyal, try and repurchase the product (Dick & Basu (1994):

Aaker (1991))

When an online community platform is established, as indicated in recommendation 2.0, it is

just a matter of uploading accessible content for existing loyal members to attract new ones.

By creating a video campaign on social media to; educate on product information, highlight

Majans family branding and create overall awareness will ensure Majans Bhuja Snacks are a

top of mind choice. When a video campaign educates consumers on product and brand

information, mothers who go to the supermarket more than any other family member are

likely to take notice (Audra, 2014). It is also estimated that 60% of mothers assess Facebook

multiple times a day and are more likely to comment or share brand content (Audra, 2014).

For this reason, it is essential that the video campaign targets mothers as they provide a

promising platform to become a behaviourally and attitudinally loyal customer base.

References Aaker, D. A. (1991). Managing Brand Equity: Capitalizing on the Value of a Brand Name.

California Management Review, 38, 102–20. Retrieved from

http://lta.hse.fi/1999/1/lta_1999_01_a4.pdf

Alba, W. J & W. J Hutchinson. (1987). Dimensions of Consumer Expertise. Journal of

Consumer Research, 13, 411-435. Retrieved from

http://www.jstor.org/stable/2489367?seq=1#page_scan_tab_contents

Audra, S. (2014). Marketing to Mothers is More Important than You Think. Retrieved from

https://www.surveymonkey.com/blog/2014/05/08/marketing-to-moms-even-more-

important-than-you-think/

Chaudhuri, A & Holbrook, B. (2001). The Chain of Effects from Brand Trust and Brand

Affect to Brand Performance: The Role of Brand Loyalty. Journal of Marketing, 65 (2)

81-93. Retrieved from http://journals.ama.org/doi/abs/10.1509/jmkg.65.2.81.18255

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Dick, A.S. and Basu, K. (1994). “Customer loyalty: toward an integrated framework”.

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Fuller, W. G. (1994). New Food Product Development: From concept to marketplace. [EBL

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&dq=repositioning+a+product+%22snack%22&ots=yDIxfH-

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Hawks, D. (2007). Repositioned Products: Examples and Overviews. Retrieved from

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Loyalty in the Modern Marketing Environment. Paper presented at University

Malaysia Perlis to the School of Business Innovation and Technopreneurship.

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http://www.productreview.com.au/p/majans-bhuja-original-mix.html

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Appendices Appendix 1- Facebook Branding

1. Inconsistent branding on Facebook page as it should specify Majans Bhuja Snacks in title. This is to ensure that a brand community is easily accessible to consumers so brand familiarity can improve

Appendix 2- Demonstrating Versatility of Majans Bhuja Snacks ‘Majans Spicy Meatballs’

2. MORE THAN JUST A SNACK! The Majans Bhuja Mix was added to create spicy meatballs. Recipe is in Appendix 4. Please note: Tofu mince can substituted for beef to entice vegetarian consumers

Appendix 3- Healthiest/ unhealthiest areas in Australia (http://thenewdaily.com.au/news/2015/05/04/australias-fattest-fittest-suburbs/)

Appendix 4- Packaging Changes: Add recipe to Majans Spicy Meatballs to packaging

Majans Spicy Meatballs- Serves 60

1 Bhuja Original Mix ¼ cup of milk

1 teaspoon of curry powder 3 Slices of bread

1 egg 1 Brown Onion

1 kg of beef mince or tofu mix for a vegetarian option

Preheat oven to 180C (Fan forced)

Add Bhuja Original Mix into blender with bread,

onion, milk, curry powder and egg

Combine until paste consistency

Add Majans Bhuja paste into large bowl with mince

Mix with clean wet hands until combined

Place baking paper on large tray

Roll into 1.5cm balls and place evenly on tray

Place in oven for 25 mins until golden brown

Serve with your choice of sauce

3. Old packaging

4. New packaging (Prototype)

Areas to target

supermarket

demonstration first