Conduct A Consumer Buying Behavior
Customers: United States, United Kingdom, and Germany home refrigerator buyers
Competitors: 1. Whirlpool (including Maytag, KitchenAid, Jenn-Air, Amana, Indesit, Bauknecht, Ignis; among others)………Leading producer of home appliances worldwide.
2. Electrolux (including Frigidaire, Gibson, Philco, Kelvinator, Zanussi, AEG, White Westinghouse; among many others)………Second leading producer of home appliances worldwide.
3. Haier (including GE Appliances, Fischer, Aqua; among others).
“Thank you for meeting with us today,” Tarek says. “Market intelligence has shown that our major competitors – Whirlpool, Electrolux, and Haier – are all developing new high-end refrigerators. These new refrigerators have attractive designs, are efficient, and durable, and are available in different colors. These refrigerators are priced well above the regular models that you are likely to see in Home Depot and Lowes, and sell for around US$12,000 per unit.
Tarek looks to you: “As ACME is debating whether to enter this market, we need you to participate in a new cross-functional product development team that will research the high-end refrigerator customer buying habits in our three main markets: U.S.A., Germany, and the U.K. We also need to know if there’s an unmet demand for such refrigerators in those markets,” he says. Erik Knops, ACME’s CEO, nods his head in agreement.
Tarek continues, “We need to take into consideration the different needs and preferences of high-end refrigerator buyers in those markets; as well as the demographics of those buyers such age and gender. The customer requirements for each of those markets are quite different.”
Finally, Tarek remarks, “In addition, we need to know where those customers buy their high-end refrigerators from, and if there is any seasonal variation in sales.”
Erik nods his head again, smiles, and adds, “Tarek and I want you to research the high-end refrigerator buyers’ needs and preferences for those three markets, and provide us with a customer buying behavior report in two weeks. Remember, the report should focus on the customers, and not on the companies! ”
You know that to give Erik and Tarek the most in-depth report, you will need to conduct an analysis of the high-end refrigerator buyers in those markets. Each market has to be discussed and analyzed separately under its own headings and subheadings (three different discussions and analyses). In addition, you have to create a value proposition for ACME’s proposed product. The value proposition should be clear and specific to ACME’s proposed new product. What value do customers see in the proposed product and what would compel them to buy it?
As previously mentioned, I would like you to conduct an analysis of the consumers in our main markets. Your analysis should consider both current and potential product users and should address the following questions:
1. What needs are being met by the product purchase? What are the benefits to the consumers? Make sure that you differentiate between features and benefits; go beyond manifest motives and consider latent motives.
2. Who is involved in the purchase process? Who are the influencers? Who are the buyers? Who are the end users?
3. Where are the products sold, and what are the distribution channels?
4. How often are the products purchased? Is there seasonality to sales?