Usage Situation :

Beer

Col Ajay K Raina, SM

My Task: BEER • Interview Based:-

– Frequent usage situations.

– Identification of attributes.

• Questionnaire Based:-

– Inter-se importance of attributes for four most important usage situations.

– Three leading brands, as per attributes, for four most important usage situations.

• Presentation:-

– Variations – importance of user situations, brand image and implications on positioning of a new product, repositioning, advertising strategy and target group.

Why Beer? • Is this really a product category or simply a

product?

• Beverages:-

Beer as a category • Unlike its other cousins in the alcoholic grain

category, ie, Whisky, Rum, Gin and Vodka, Beer is not distilled but is fermented instead.

• Four ingredients- water, barley, yeast, and hops.

• Broadly categorised into:- – Lager (up to 6.75%)

– Strong (6.75 to 8.75%)

– Draught (72 hours).

• Categorisation also based on cost, Packaging, ratio of ingredients like Pale Ale, Stout, Mild, Wheat, Lager, Lambic.

Focus • Most of the research in the understanding of customer

choice processes is based on the paradigm that choice is a function of product attributes (costs/benefits) and customer characteristics.

• While perspectives based on products and customers are useful, they appear not to be self-sufficient.

• Products and customers do not exist in a vacuum. Both are embedded in an environment.

• Products may be viewed as fulfilling customer requirements/goals that may have been instigated by factors that are internal (such as needs, drives) and/or external (such as societal norms, social influence processes) to the individual.

Relevance of Attribution Theory • Consumers try and make sense of their surroundings

on the basis of what they consider is the cause and what is the effect of a phenomenon.

• It suggests that individuals observe their own own behaviour or experience, try to figure out what caused it, and then (whether or not their conclusion is in fact correct) shape their future behaviour accordingly.

• If a consumer, for example, has had bad experience with a locally-made product (and good experience with an imported one) he or she may conclude that the bad product is bad because it is locally made.

Implications of Attribution Theory • If a consumer attributes experience to

the product per se – Repurchase likely.

• If a consumer attributes experience to the usage situation – Repurchase uncertain.

• With increased brand loyalty and enduring involvement, importance of usage situation diminishes.

• When purchase situation and usage situation are close in time, usage situation is more likely to influence the choice of brand.

Moving On : Modus-operandi

Step 1 -Interview

• Combination of phone and face-to-face with 10 respondents.

• Profile:-

– Family friends/senior relatives – 02.

– Colleagues and friends – 04.

– Youngsters – 04.

– Female – 04/10.

Frequent Usage Situations • Social setting – entertaining/being entertained by

friends at home/ outside.

• Watching sporting event/movie on TV.

• In a lounge or bar or while on a trip on a weekend, with family.

• Relaxing at home.

• Working in the garden/lawn

or while washing car/ doing

odd jobs around the house.

• Health drink.

• Beating the heat.

Attributes • Taste –all ages and both genders.

• Flavour – full by males and youngsters; milder by others.

• Calories – females more particular.

• Price – youngsters more concerned.

• Alcohol Content – similar to flavour.

• Different flavours

– females more open.

Part 2 - Questionnaire • Sample size:-

• Responses:-

– One-on-one – 16.

– Internet/e-mail – 18.

– Telephone – 10.

• Drinking Experience – 02 to 30 years.

Age Group Females Males Total

20-30 04 11 15

30-45 06 13 19

45+ 04 06 10

14 30 44

QUESTIONNAIRE BASED SURVEY

Part 1 – Profile

Name (optional)………………… Age……………. Gender …………… Profession ………… Income ……… (Note:- Please proceed to fill up ONLY if you drink beer)

Part 2 – Questionnaire

1. How many years you have been drinking beer? (a) Less than 03 years (b) 03-05 years (c) 05-10 years (d) More than 10 years 2. What is the frequency of your beer-intake? (a) Once a week (b) Twice a week (c) More than twice a week (d) Irregular pattern 3. What is your preferred climatic season for beer consumption? (a) Summers only (b) Any time except winters (c) No specific season (d) Season does not matter 4. Please specify occasions when you like to have beer? (a) _______________________________________________________________ (b) _______________________________________________________________ (c) _______________________________________________________________ (d) _______________________________________________________________ (e) _______________________________________________________________ 5. Preferred place for consuming beer. (a) Home (b) Bar/lounge (c) Picnic/trips (d) Any other ______________ (pl specify)

6. Any activity that you feel makes you enjoy the beer more than usual? (a) Socialising (b) Watching TV (c) Working (d) Relaxing 7. Please specify the location with respect to relevant activity. (a) Socialising (where?) - At home/ outside (b) Watching TV (what kind of programme?) – Action/sports/movie/soap/news/reality (c) Working (what type?) – Washing vehicle/gardening/odd chores/cleaning. (d) Relaxing (how?) – Reading/ gossiping/ sun bathing/swimming 8. What are the benefits of beer, as per your perception? (a) Beats the heat (b) Health drink (c) Keeps you in control (d) Any other ___________________ (pl specify)

9. Rate the attributes in respect of the beer on a scale of 1 to 7 (7 being the highest

weightage):-

Attribute (pl tick the sub-attribute before assigning value)

Weightage

Taste

Flavour – strong /mild

Price

Alcohol content – high/low

Calories

Flavoured

Any other ___________________ (pl specify)

10. Please describe the best relationship between usage and attributes by ticking the best

relations.

Attribute Socialising Watching TV

Bar/trip with family

Relaxing at home

Taste

Flavour

Price

Alcohol content

Calories

Flavoured

Any other __________ (pl specify)

11. Please describe the best relationship between brands attributes and situations by writing

the brand names in the last column (for the ease of survey, three popular national brands, ie

Kingfisher, Fosters, Golden Eagle may please be used).

Brand Socialising Watching TV

Bar/trip with family

Relaxing at home

Kingfisher

Fosters

Golden Eagle

Any other__________ (pl specify) / Irrelevance of brand

12. Would you like to give try to a new brand? If yes, what attributes, including additional ones, would you look for in a new beer? (a) Crisp taste (b) Health consciousness (c) Variety in size of packing (d) Others ______________ (pl specify)

13. Does beer remain your preferred drink when you have a choice? (a) Always (b) Always during summers only (c) No, I prefer harder drinks (d) Depends on mood. 14. When it comes to beer, how many bottles (650ml) do you consume usually? (a) 1-2 (b) 2-3 (c) more than 3 (d) Depends on the occasion and mood. 15. How do you find acceptance of beer as a social drink in the society? (a) Getting accepted gradually (b) Still a taboo (c) No one really cares (d) Cannot say 16. Beer is generally perceived as a drink of youngsters. Do you agree? (a) Yes, absolutely (b) No, not at all (c) Cannot say. 17. How do you perceive females as consumers of beer? (a) Pretty normal; how does it matter? (b) Unusual (c) It is ok as long as they drink sensibly (d) Cannot say 18. Does beer have any health benefits? If yes, please specify ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 19. Do you feel that status of beer now needs to be changed to that of an energy drink and its consumption may be allowed in public places? (a) Yes (b) No (c) Only at tourist places (d) Cannot say 20. If money is not the issue, will you prefer foreign labels over domestic ones? (a) Yes (b) No (c) Do not care (d) Cannot say

Deductions

Variations in Imp Ratings: Usage Situation (On the Scale of 1 to 4)

Usage Age Group

Social Setting

Watching TV Family Outings

Relaxing at Home

20-30 (M) 4 3 2 1

20-30 (F) 1 3 2 4

30-45 (M) 3 4 1 2

30-45 (F) 1 3 2 4

45+ (M) 4 2 1 3

45+ (F) 4 2 1 3

• More males of all age groups prefer to drink in social settings than their female counterparts. • Females above 45 are more open to drinking during a social gathering. • ‘Watching TV’ as also ‘Relaxing at Home’ compete closely with ‘Social Setting’ but females

prefer to drink at home while relaxing or watching TV while males prefer Social + TV. • Drinking beer during family outings is not too favoured.

Variations in Brand Ratings: Usage Situation (On the Scale of 1 to 4)

• While Fosters scores over others in the social settings, Kingfisher emerges as the overall favourite brand; Social status/consciousness connected with a foreign brand could be the reason.

• Golden Eagle remains popular with old timers. • Some choices like Carlsberg, Royal Challenge, Tuborg and even the fact that brand makes no

difference, as long as beer is served chilled, have also been noticed.

Brand Socialising Watching

TV

Bar/trip

with family

Relaxing at

home

Kingfisher 3 4 4 4

Fosters 4 3 3 3

Golden Eagle 2 1 2 1

Tuborg/RC 1 2 1 2

Positioning/Re-positioning: Questions Answered

• Under what circumstances the new product is more likely to be consumed? – Social Settings (M & 45+ F) and Home (F).

• What is the most important attribute? – Taste.

• Does status consciousness have a role to play ?– Yes!

Implications : Positioning of New Product • Usage Situations: Target the Existing Usage/new one.

– Males more inclined to drink on social occasions.

– Females prefer home environments.

– There is a common preference for consuming beer at home (across the gender and age profiles);

• Attributes: Use it for Segmentation. – Taste remains on top of the priority.

– Alcoholic content and potency of flavour higher for males.

– Youngsters sensitive to price.

– Females more concerned about calories.

– New flavours likely to find favours with females.

• The new product, based on its target populace (M or F, young or old) would need to be positioned accordingly.

Implications: Re-positioning • Older labels like Golden Eagle, though still popular,

are virtually not favoured by youngsters. Its age-old charm may be highlighted to attract youngsters who may be fascinated by its lineage.

• Beer may be re-positioned as a beverage associated with celebrations, and life-style.

• By reducing calorie content and/or glycerine, without any adverse effect on the taste, beer can be re-positioned as a healthy alternative to harder drinks.

• Packaging needs to be attractive and as per international trends for contents to have appeal.

Advertising Strategy • Ban on advertisements of alcoholic beverages is a

major hurdle.

• Surrogate ads (soda water/mineral water/calendar).

• Sponsorship of mega-events.

• In-store/bar/club visibility.

• Beer tasting sessions as part of a countrywide campaign (on the lines of JW campaign of 2005).

• Making use of foreign venues (sporting event) where no such restrictions exist.

• International platforms easily available in case the product has international linkages.

• Brewery tours and visits.

Defining the Target Group • A beer session post a round of golf or swim may still

be a favoured way for older generations, beer essentially remains the drink of the youth.

• Ideal for the youngsters who want to have fun without really going over-board.

• There is a social acceptance that is creeping in and people of both genders do indulge in beer.

• Some beliefs like beer’s virtues for kidneys, stones and even bladder irritation do favour it across age and gender spectrum.

• When viewed in terms of attitude (experimentation) and acceptance, future of beer lies with youth.