The paper "Buyer and Consumer Behavior: Mars Bar Chocolate" is a wonderful example of a term paper on marketing. The purpose of this paper is to analyze and discuss the figures and patterns that emerge from brand performance metrics, awareness and salience metrics, and demographic data for Mars Bar chocolate. The three sets of information provide an important pointer to the characteristics of the market which the brand operates in which will enable one to describe the type of market and how market strategies can be formulated and work for the brand.
The analysis will also make it possible to analyze the performance of the brand so far as it may interest the management of the producing company. This report is structured into three main subjects; Brand performance, Brand awareness, and salience, and demographics and segmentation. The paper will seek to exhaustively cover the subjects under the respective headings in this report. Brand Performance From table 1, we can see that the market share at 34% for Mars Bar is higher than that of all the other brands. Kit Kat follows closely at 24%.
Three out of the three brands have a market share above 20% meaning the market is quite competitive and customers are majorly shared between the three brands. Mars Bar indeed has more customers buying the brand. Brands with lower penetration have suffered not only from low penetration below the average of 49% but also from the few people that buy the brands are not loyal as can be seen from the average purchase frequency, the share of category requirements and the solely loyal buyer's percentage. In fact, Nestle Gold and Twix each have zero percent loyalty.
No brand is able to satisfy more than 50% of its customer’ s category requirements. Mars Bar and Kit Kat remain to be the dominant brands but Mars Bar is very strong with 22 % loyalty as compared to kit Kat’ s 7.7 %. Repertoire markets are characterized by a few solely loyal buyers since most buyers in the market allocate their requirements across the competing brands in the market in quite a steady fashion as noted by (Ehrenberg, Uncles, & Goodhardt, 2004). On the other hand, the subscription market has many solely loyal buyers since most customers allocate category requirements almost entirely to a single brand (Escalas, 2004).
Unlike in the repertoire market, in subscription market customers do not make regular purchases from a variety of brands but rather show loyalty to a particular brand for a long period of time (Ehrenberg C., 2000). In subscription markets brand many brands satisfy the Customer’ s category requirement which is usually more than 50%. Brand loyalty is also very high with more than half the brands being above the average brand loyalty level.
Market penetration does not necessarily go hand in hand with loyalty and satisfaction of share of requirements as it is the case with the repertoire market. Meaning there is a deviation in the double deviation pattern clearly visible in repertoire market (Blackwell, 2003)