The Alpino Project
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Transcript of The Alpino Project
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The Alpino Project
Restructuring the Product Mix
Submitted in partial fulfilment of the RMD Course Project to Professor Avinash G Mulky
Lavanya Yadlapalli 1311027 Sarayu S 1311257 Borale Nikhil Madhukar 1311365 Ekansh Nayal 1311371 Namala Madhuri 1311418
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Product Mix Restructuring for Nestle Alpino Lavanya Yadlapalli, Sarayu S, Nikhil B, Ekansh Nayal and Madhuri Namala
IIM Bangalore
Abstract India has a 5562 crore chocolate market concentrated by a few major firms. Among these are Cadbury, Nestl and a few premium segment players such as Ferrero. Of the chocolate industry, a 30% share can be attributed to the premium segment. With growing disposable incomes and an increasing appetite for premium chocolates, an expansion into the premium segment is a logical step towards gaining and retaining market share in the long term.
The recent introduction of Nestls premium segment offering, The Alpino, received a half-hearted response in the Indian market. Since this product has only recently been launched, product awareness is also extremely low. With this study we aim to understand how the customer perceives the Alpino. In addition, we propose alternative product concepts for consideration by Nestls management team with an aim to increase product liking and improve product reception. The project also aims to identify the consumer segments that should be targeted with the new Nestl Alpino. Additionally, we develop and test a new Ad concept and try to demonstrate the effectiveness of the inclusion of the Country of origin in all customer communications.
The project proceeds in 2 steps. The first step is an exploratory research phase to identify the various factors considered important in determining the overall perception of a chocolate. This step helps us identify a number of hypotheses listed in the later pages of this report. In addition, we also identify the characteristics of the ideal chocolate. The concepts are developed with these inputs. Further, the exploratory research phase provides an indication of things and occasions that people associate with chocolate consumption. These are used as input to the descriptive research phase where we use quantitative data to determine the concept that comes closest to peoples perception of an ideal chocolate. Specifically we use Multidimensional Scaling to construct a perceptual map consisting of the 3 concepts we propose along with the 2 closest competitors as indentified from exploratory research Ferrero Rocher and Cadbury Toblerone. Next, we use psychographic data to segment the target population into a number of mutually exclusive categories using factor analysis. Output from factor analysis is fed into a number of Discriminant analyses to identify the target segment. The attributes that are important in determining the perception of a chocolate is then identified using linear regression with overall perception as the dependent variable. The occasions most closely associated with each concept is given a cursory analysis using frequencies and percentages. Finally, the above analysis is combined with Ad perceptions to finalise on a relevant positioning for the product.
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Management Decision Problem (MDP)
To develop a Marketing Mix and Promotional Strategy for the New Nestle Alpino in the Indian Market.
Marketing Research problems
In light of the MDP described above, we would like to conduct concept design and testing to arrive at the concept that comes closest to the consumers ideal. We therefore define the following MRPs for The Alpino Project.
1. To understand the underlying behaviour of consumers towards chocolate purchase and consumption in India.
2. Establishing Positioning and Marketing Mix of The New Nestle Alpino concept.
Market Research Problem - 1 Components Information required
Understand the underlying behaviour of consumers towards chocolate purchase and consumption in India
Who are the buyers of premium chocolate? (Buyer profile)
Demographics
Psychographics
What is the purchase behaviour?
Purpose of purchase / Usage Intention
Nature of purchase (When are the chocolates purchased?)
Nature of consumption (When are the chocolates consumed?)
Quantity (pack size) of chocolate purchased each time
Product Attributes Taste, flavour, texture, melting rate, viscosity etc.
Barriers and triggers to Chocolate purchase
Product packaging shape, size, package look and feel
Price
Brand Image and Quality
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Market Research Problem - 2 Components Information required
Establishing Positioning and Marketing Mix of The New Nestle Alpino Concept.
What is the customer segment of interest for The New Alpino?
How many categories of buyers are there?
What is the purpose for which they Purchase Premium Chocolates?
What should be the marketing mix of The New Alpino?
What is the optimum pricing strategy for The New Alpino to gain market share?
What kind of packaging and Pack quantities do consumers prefer?
What should the advertising strategy be to establish desired positioning?
Measure Image and Positioning of Nestle Alpino
How does The New Alpino fare with respect to its competitors?
How is the product positioned with respect to its competitors?
Are there any POP/POD?
How many customers are willing to sign an Intention to purchase agreement?
Research Methodology
The following research methodology was followed to obtain the necessary information as listed in the MRP section above:
Exploratory Research
The exploratory research was used to gain insights and understanding about the buying behaviour of chocolate consumers as well as the consumer image of an Ideal Chocolate. The following exploratory methods were identified to be relevant and applicable:
Secondary Data Analysis Depth Interviews Projective Techniques (Association)
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Descriptive Research
The descriptive research was used to obtain quantitative data for concept testing and Ad concept testing. We used online survey as the chosen method of data collection. A questionnaire capturing information required was prepared as explained in later sections.
A number of statistical analysis procedures such as MDS, factor analysis, Discriminant analysis and Regression were used for various units of data. This will be dealt with in detail in the data analysis and interpretation part of the report.
The output of the descriptive research phase is a chosen concept, user imagery and an Ad concept which coupled with the user imagery serves as a guideline for product positioning.
Exploratory Research
With a basic secondary analysis on the chocolate industry, we found out that there are three categories of chocolates: Luxury, Premium and Mass Produced. Nestle Alpino is positioned in the premium category with competitors as Ferrero Rocher and Toblerone. As we found out that Nestle Alpino has very low brand awareness, we identified two objectives for the exploratory research:
1. Use secondary data analysis and projective tests to come up with few concepts that could be tested later
2. Use depth interviews to test out the concepts as defined from the above stage
For coming up with the concepts, we needed to understand the consumers perception of an ideal chocolate and thus we focused on the hedonic, symbolic and emotional benefits that chocolates provide. Two kinds of projective techniques (Word Association & Sentence Completion) were used and the following tables capture the key findings:
Based on these findings, we came up with three concept designs and then proceeded to the depth interviews phase. The concepts have been captured below for reference:
Concept 1: To love is to share
A packet of twin chocolate bonbons filled with a creamy mousse centre, each wrapped with a message of love. Share it with your loved one and delight them with flattering messages over a box of chocolates.
Chocolates trigger memories that include celebrations
Emotions drive most chocolate consumption
Chocolate shape has a significant impact on the consumers perception of
premiumness
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Concept 2: A chocolate from the alps for those with a taste for life
A chocolate from the land of the Alps - Made from the finest cocoa and the creamiest milk. Just break into the hard nutty round shell to see yourself melt in the bitter sweet taste or gift the feeling to someone today.
Concept 3: A chocolate is an expression of all things fine
Gift your loved ones a chocolate that is made from the creamiest cocoa butter nestled within the opulence of dark chocolate. Light up their day with a small message cocooned inside every chocolate.
The highlights of the depth-interviews have been captured given below:
Based on the above analysis, we generated few hypothesis that can be tested later in the descriptive research phase.
Hypothesis 1: There are at least two categories of customers The buyers and The consumers. The buyers generally purchase Premium chocolates for gifting purposes and the consumers buy Premium chocolates for individual consumption.
Hypothesis 2: At least 2 different package sizes are needed a small pack of 2 - 4 units for individual consumption and a larger pack of 8 10 units for gifting.
Questionnaire design:
The questionnaire sought to collect the following information:
1. Consumption related information: Purchase frequency Usage intention Preferred brand of chocolate Serving sizes for consumption and gifting
2. Data for constructing perceptual maps Positioning related information on concepts Similarity data on 3 concepts and 2 competitors
Consumers use chocolates both for self-consumption and gifting purposes
Package size is closely linked to usage intention
Gold colour package is generally perceived to be Premium
Messages are considered a novel attraction
Concept 2 is perceived to be closer to an ideal chocolate
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Attribute rating data for PROjective FITting analysis
3. Concept evaluation data Uniqueness of concepts Concept believability Purchase intention
4. Occasion suitability data
5. Ad concept evaluation data Ad uniqueness Ad believability Purchase intention
6. Psychographic data for customer segmentation
7. Demographic data for additional analysis
A sample of 76 complete responses was recorded. A reasonable mix of male and female respondents was obtained with about 51.3% of male respondents. A majority of the respondents were in the age group of 20 30 years. The following sections discuss the insights gathered from data analysis.
Usage Intention
As given in the questionnaire sheet, one of the questions was to find out the usage intention of Premium Chocolates: whether it is for self-consumption or for gifting purposes. From the pie chart below, it can be indeed noticed that there are two types of usage intentions of Premium category chocolates. Thus, we can accept the Hypothesis 1 that was mentioned in the Exploratory Research section.
People purchase
premium chocolates for
two purposes: Self-
consumption and gifting
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Package Sizing
As given in the questionnaire sheet, one of the questions was to find out the package size that people prefer for various purposes: Do they prefer one size for selfdifferent size for gifting? As the pie charts show below, significant % of people (49%) p50gm package size for self-consumption and significant % of people (53%) prefer 300 gm package size for gifting. Thus our Hypothesis 2 can be accepted.
33%
33%
64%
14%
49%
17%
questionnaire sheet, one of the questions was to find out the package size that people prefer for various purposes: Do they prefer one size for self-consumption and a different size for gifting? As the pie charts show below, significant % of people (49%) p
consumption and significant % of people (53%) prefer 300 gm package size for gifting. Thus our Hypothesis 2 can be accepted.
78%
25%
53%
Self Consumption
Birthdays
Gifting Family
d lifting
ying a friend / relative
ng friendsGitfting professional
relations
28%
49%
7%
25gm (A small snicker
bar)
50 gm (A dairy milk
fruit and Nut)
100 gm (A 5 piece box
of Ferrero Rocher)
300 gm (A 16 piece
box of Ferrero
Rocher)
People prefer small pack
size (~50gm) for self-
consumption and bigger
pack size (~300gm) for
gifting
questionnaire sheet, one of the questions was to find out the package size that consumption and a
different size for gifting? As the pie charts show below, significant % of people (49%) prefer consumption and significant % of people (53%) prefer 300 gm
Self Consumption
Gifting Family
Moo
Pacif
ying a friend / relativeGifti
Gitfting professional
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Factor Analysis on Psychographic data
There is a list of 30 questions in the Questionnaire the survey respondents. A factor analysis is performed on this psychographic data to identify the underlying factors that influence the profile.
The KMO measure of sampling adequacy has a value of 0.617, which is high enough to say that the factor analysis is appropriate. The Bartletts test of sphericity has a very high chisquare value and significance valhypothesis that the variables are uncorrelated can be rejected.
On further analysing the Total Variance Explained matrix, 5 factors have been identified and cumulatively explain about 55% variance. The studied to find out the factor loadings. The details have been captured below
Factor Loadings on factors (questions from the psychographic profile)1 Question 6,7,8,11,1215,17,19&232 Question 3,9,10,13&3 Question 14,16,22,24,26&294 Question 1,2,18,27&285 Question 4,5,21,25&30
After looking at the question loadings on the factors and the actual questions, the consumers of premium chocolates have been identified into the following 5 categories/se
Variety Seeking Organized Know all Risk averse Family oriented Status Seeking Self-sufficient Party animals
53%
Factor Analysis on Psychographic data
There is a list of 30 questions in the Questionnaire form to get the psychographic profile of the survey respondents. A factor analysis is performed on this psychographic data to identify
ng factors that influence the profile.
The KMO measure of sampling adequacy has a value of 0.617, which is high enough to say that the factor analysis is appropriate. The Bartletts test of sphericity has a very high chisquare value and significance value of zero at 95% confidence level. Thus, the null hypothesis that the variables are uncorrelated can be rejected.
On further analysing the Total Variance Explained matrix, 5 factors have been identified and cumulatively explain about 55% variance. The rotated component matrix has been studied to find out the factor loadings. The details have been captured below
Loadings on factors (questions from the psychographic profile)Question 6,7,8,11,1215,17,19&23 Question 3,9,10,13&20 Question 14,16,22,24,26&29 Question 1,2,18,27&28 Question 4,5,21,25&30
After looking at the question loadings on the factors and the actual questions, the consumers of premium chocolates have been identified into the following 5 categories/se
Family oriented
sufficient Party animals
1%
5%
41%
25gm (A small
snicker bar)
50 gm (A dairy milk
fruit and Nut)
100 gm (A 5 piece
box of Ferrero
Rocher)
300 gm (A 16 piece
box of Ferrero
Rocher)
to get the psychographic profile of the survey respondents. A factor analysis is performed on this psychographic data to identify
The KMO measure of sampling adequacy has a value of 0.617, which is high enough to say that the factor analysis is appropriate. The Bartletts test of sphericity has a very high chi-
ue of zero at 95% confidence level. Thus, the null
On further analysing the Total Variance Explained matrix, 5 factors have been identified rotated component matrix has been
studied to find out the factor loadings. The details have been captured below in the matrix:
Loadings on factors (questions from the psychographic profile)
After looking at the question loadings on the factors and the actual questions, the consumers of premium chocolates have been identified into the following 5 categories/segments:
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The highlights of the factor analysis have been captured below. These factors and the factor scores obtained out of SPSS have been used for further discriminant analysis as explained in the next sections.
Discriminant Analysis Purchase Frequency
The frequency of purchase of premium chocolates has been obtained for each survey respondent. The respondents have been categorized based on this purchase frequency (once or twice a week, once in 15 days, once in a month & less than once in a month) and then a discriminant analysis has been performed with the category of people based on purchase frequency as the dependent variable and the factors obtained from factor analysis as independent variables.
From the Tests of Equality of Group Means table, it can be noticed that the F-values are greater than 1.85 only for the factors Party Animals and Status Seeking. Thus only these two factors discriminate the consumers based on the purchase frequency. The Eigen value for function 1 is 0.279, which implies 27.9% of variance is explained and also the canonical correlation value is high. The other two functions have very low Eigen value, low canonical correlation and high Wilks values and thus cant be used further.
From the Structure Matrix, it can be seen that only the Party Animals factor is loaded on the first function. 48.7% of the original cases have been classified correctly and 42.1% of cross-validated cases have been classified correctly, both of which are higher than the 32.5% needed for 4 categories.
The psychographic profiles of the Premium
Chocolate consumers can be used to
categorize them into 5 mutually exclusive
segments: Risk-seeking, Organized Know
all, Risk averse & Family Oriented, Status
Seeking, Self Sufficient party animals
The consumers belonging
to the Party-animals
segment purchase the
premium chocolates
frequently
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Multi-dimensional Scaling
The respondents have been asked to rate the similarity/dissimilarity between the three concepts (Concept 1, Concept 2 & Concept 3), Ferrero Rocher and Toblerone. The average values from this similarity/dissimilarity matrix have been taken and an MDS analysis is performed to produce a perceptual map. The R-square value obtained is very high (0.95095), i.e. 95% of variance can be explained using this model. The stress value is 0.1 (low), which indicates that the fit is good.
The map above shows that the Concept 2 is perceived to be very close to Ferrero Rocher and Toblerone is not at all perceived to be close to any of the concepts.
The Multi-dimensional scaling has also been performed separately by taking the Gender (Male/Female) data to see if the perceptions of these concepts and brands overall differ from those of Male and Female respondents.
Based on the MDS analysis for the data of Female respondents, the R-square value obtained is 0.89624 i.e. 89.6% variance is explained. The stress value is 0.16, a low value that indicates the fit is good. The perceptual map obtained with this analysis has been given below:
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It can be noticed that the female category respondents perceive Concept 3 as being close to Ferrero Rocher, which is different from that of the overall perception.
Based on the MDS analysis for the data of Male respondents, the R-square value obtained is 0.9775 i.e. 97.75% variance is explained. The stress value is 0.075, a low value that indicates the fit is good. The perceptual map obtained with this analysis has been given below:
It can be noticed that the male category respondents perceive Concept 2 as being somewhat close to Ferrero Rocher, which is somewhat similar to that of the overall perception.
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Occasion Suitability
Ratings on a five point Likert scale were obtained for each of the 3 concepts and 2 competitors products on 6 consumption occasions. Average ratings for each product occasion pair are listed in the table below. The results are intuitively significant.
Birthday
Gifting -
Family
Mood
Lifting Pacifying
Gifting
Friends
Gifting Professional
Relations
C1 2.770 2.873 3.803 4.042 3.197 1.803
C2 3.694 3.958 4.056 3.817 4.070 3.746
C3 3.534 3.634 3.563 3.563 3.690 2.817
Ferrero Rocher 4.403 4.380 4.366 4.243 4.465 4.296
Cadbury Toblerone 3.667 3.662 3.310 3.183 3.887 3.549
Ferrero Rocher seems to have a high rating on almost every occasion. This might be an indication of the high brand equity that it enjoys. For every other product we have one occasion stand out from the rest.
C1 Concept 1 carries a message to be shared with your loved one. The low value that this concept has for the occasion - Gifting professional relations is intuitively meaningful. Also, Pacifying seems to be the most suitable purpose for which this concept is consumed. This shows that although the concept has been positioned under the To love is to share banner, there might be untapped areas and uses such as this.
C2 This concept was the most similar to Ferrero Rocher from the product itself to package and product communication. The one difference was that this concept used a dark chocolate outer layer unlike Ferrero Rocher. The concept is perceived to be most suitable for Mood lifting (Self consumption) and Gifting friends. So the concept should primarily be targeted at women and people in the age groups of 20 35.
C3 This concept comes with a small message but unlike C1 the messages are generic and not those that express love. The addition of messages over C2 has shifted its suitability from Mood lifting (Self consumption) to Gifting Family and Friends.
The overall perception shows that the
respondents perceive Concept 2 as being
close to Ferrero Rocher, however it can
also be noticed that Female and Male
perceptions about similarity/dissimilarity
of concepts and brands are different
The presence of a
message shifts focus
from self consumption to
gifting. Dark chocolate is
perceived as a good
Cheer-me-up
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PROjective FITting using Attribute rating
Attribute rating on the 7 attributes identified through the exploratory research phase was used to conduct 2 different analyses.
1. It was used to construct a perceptual map that can be compared for similarities with the overall perceptual map
2. It was used in linear regression to identify the relative importance of the 7 attributes and the amount of variance that they explain.
PROXSCAL to obtain perceptual map:
We used SPSS MDS procedure PROXSCAL to arrive at the proximity data based on attribute ratings. The validity of the analysis can be seen by the following goodness of fit measures.
The normalized raw stress is significantly low at 0.00108. And this is obtained with 4 dimensions. The Scree plot indicating Normalized raw stress reduction is below. Addition of a new dimension seems to be able to accommodate further reductions in normalized raw stress. However that would make the number of dimensions greater than the number of objects. Therefore this is the best fit than can be obtained.
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Tuckers coefficient has a value of 0.9999 which is greater than 0.95 indicating a high degree of similarity among the different attributes included in the rating matrix. This makes the data suitable for a treatment of proximity analysis.
The perceptual map that is obtained is reproduced below. Although this is not exactly similar to the one obtained with a consideration of the overall ratings, it does indicate that concept 2 is the closest to Ferrero Rocher among all products.
Concept 1 is the most dissimilar when compared to both concepts 2 and 3 as well as Ferrero and these findings are the same as before. The above MDS is identical to the MDS obtained earlier tilted 900 in the anti-clockwise direction. We find that even attribute wise Toblerone is similar to the other chocolates, it has been positioned differently.
Linear Regression on Attribute ratings:
Stepwise regression was performed to identify the attributes most important for explaining the overall rating that was given on each concept/product. A model summary is presented below. It shows that all attributes were included at the end of step 7. This also validates results from exploratory analysis about the attributes important in the consideration of the ideal chocolate.
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The R square at the end of the 7th iteration is 0.532. This implies that about 53.2% of peoples preferences about chocolates are explained by these attributes. This is a significant amount of variance because chocolate is essentially a hedonic good. A higher number would have made us doubt the validity of responses and a lower number would have meant too little significance of attributes.
The F Values are all significant at 0.000. This indicates that at each step the addition of a new attribute does not change the coefficients of the regression equation from non-zero to all zero.
The PP plot neatly aligns with the 450 line. This indicates an absence of multicollinearity. Therefore the attributes are mutually exclusive. The residual statistics also show that mean residuals are 0 with a very small standard deviation. This indicates that the model fits well.
From the marketing perspective After taste seems to be the most important attribute. What encompasses after taste is slightly undefined but it would be reasonable for us to include all feelings that the customer experiences post the consumption of the chocolate. This is also intuitively appealing because people associate a number of feelings with chocolate consumption and purchase as indicated by association tests during the exploratory research phase. Taste is the next in line of significance, which also follows logically, followed by texture. The three physical attributes of the product itself account for 41.4% of variance in overall rating. The shape of the chocolate accounts for only about 2.3% of variance. This means that our hypothesis about peoples preferences for round shape were not actually true.
Intention to buy Percentage of Purchase expectation
We use an extremely simple model to translate intention to purchase data on concepts into probability of purchase. A weighted probability model is used with the following weights.
Rating Probability Definitely will buy 1 Probably will buy 0.66 Probably not buy 0.33 Definitely not buy 0
Although the model is extremely simplistic it gives a sufficiently reasonable estimate of the number of people who might purchase Alpino from the set of those who are aware. With these probability weights and intention to buy data we derived the following purchase probability percentages.
After taste, Taste and
texture are the most
important of a
chocolates attributes.
People do really enjoy
eating the chocolate
itself and seem to carry
forward the happy
feeling post
consumption
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We notice that concept 2 has the highest purchase probability which is also in line with all the other findings. Concept 2 has higher ratings on the most important attributes obtained earlier, it is the closest product wise on the perceptual map with Ferrero Rocher and also has high uniqueness and believability scores. It also serves both for Self consumption as well as Gifting implying a higher segment of the population has Concept 2 in the consideration set.
A summary is presented below:
Question
Definitely not
buy
Probably not
buy
Probably will
buy
Definitely will
buy
Not buy but
gift
Percentage of likely
purchase
Concept 1 6 9 32 15 14 39.09
Concept 2 4 9 25 32 6 51.47
Concept 3 3 6 38 19 10 46.06
Notice that both concepts 1 and 3 have a higher percentage of people who do not want to buy for consumption but would like to gift it. This is also in line with our interpretation earlier that presence of messages shifts focus from Self consumption to gifting.
Ad concept analysis
In devising Ads for communication we considered two approaches.
1. An emphasis on product related attributes and an allusion to the country of origin. 2. An appeal to the emotional side of the customer.
A preliminary examination indicates that people considered the first Ad more unique than the second. This could be because most chocolates use the emotive route since chocolate is a hedonic good. However, people considered Ad 2 more believable, expressed more intention to buy the chocolate in Ad 2 and preferred Ad 2 overall.
Ad Preference
# Answer Bar Response %
1 Ad 1 0.355263 27 36%
2 Ad 2 0.644737 49 64%
Total 76 100%
We also conducted a discriminant analysis to group people on the basis of Ad preference. Ad preference in the table above was taken as the discriminating variable i.e. we have two groups of people: People who prefer Ad 1 and those who prefer Ad 2. Output from Factor analysis was used as the independent variables that discriminate between the two groups.
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The pooled within group matrices indicates very low correlation between the five factors. This implies an absence of multicollinearity. This not only makes discriminant analysis feasible but also validates Factor analysis on psychographics.
Wilks is slightly high but is significant at the 5% level. This helps us reject the null hypothesis that the discriminant functions estimated are not statistically significant. The Eigen value is somewhat small meaning that additional variables are needed to discriminate more fully between the two groups. We however perform this analysis to gather a basic level of insight.
The results indicate that the Factor Party Animals is the most important in explaining group membership and it has a positive sign indicating that people who belong to this category are more likely to prefer Ad 1.
We also see that Risk averse, family oriented has a negative loading on the discriminant function. This can be explained by the emotional aspect of the Ad. It might imply that family oriented people are more open to emotional appeals and are likely to be more influenced. Variety seeking also has a negative loading. This might simply be because of the presence of messages the Ad makes the chocolate more interesting.
The discriminant function classifies 76.3% of cases accurately. This is a good number for two group classification. We may therefore base our decisions on Ads on this discriminant analysis.
Recommendation
In light of the above data analysis we have the following recommendations for the choice of new product concept and communication strategy:
Concept Choice: Concepts 1, 2 and 3 are more or less aligned with each other and with Ferrero Rocher along the X Coordinate. The differences among products exist mainly along
Family oriented and
Variety seeking people are
more likely to be influenced
by emotional Ads. People
who crave for status and
excitement go for product
attributes and Country of Origin
-
the Y axis. This implies that the chocolates have similar attributes product wise but dissimilar attributes with respect to packaging and brand perceptions.
Concept 2 has the highest rating on all attributes as well as usage occasions among the three concepts. We therefore suggest Nestl to adopt this concept for product design.
We however find that concept 1 occupies a unique space in the perceptual map. We believe that this might be because of its unique positioning To love is to Share. We therefore recommend retaining the message aspect of the product. To make it palatable to a larger customer base we recommend adopting more general messages rather than those expressing love.
Pricing: Intention to buy scores seemed significantly high for concept 2. We would like to price it at the same level as the primary competitor Ferrero Rocher in order to maintain the perception of Premiumness.
Promotional Strategies: We identify 5 groups of customers. Of these the party animals have the highest purchase frequency. In addition we also notice that these are the group of customers who prefer the new better tasting version of the product. From the Ad concept analysis we find that this customer segment is closer to its cognitive side of perception.
We therefore recommend that the communication should be targeted at the Party animals and the status seekers using product attributes and country of origin as key highlights.