The paper "Buyer And Consumer Behavior" is a great example of a Marketing Case Study. Marketing decisions are very important and they play a significant role in determining the extent to which an organization penetrates the market. Before making decisions concerning the market category or segment, it is important to have full information and data concerning the market segment. The information includes the competitor activities and marketing methods, market attributes and trends in the market. This information helps to make the right decision and to apply the right strategies to the right market.
In addition, the performance of an organization’ s own brand in the market is crucial in determining the market strategies to implement ion different market segments. This is further supported by brand awareness and salience in the market. These three aspects of brand help in making marketing decisions. This report analyses the performance of the Weet-Bix brand in different market segments. This brand has good performance in different market segments, however, it is facing stiff competition from other established brands especially the corn flakes brand. The performance is above average in all the segments.
It is necessary for the marketing manager of the Weet-Bix brand to put in place the right marketing strategies in order to elevate this brand higher in the market. It has not been able to penetrate some segments effectively and this is a good starting point. Brand Performance Weet-Bix has the second-best performance in the market. It has 25% of the market share although it is facing stiff competition from the Corn Flakes brand which has a market share of 34%. The brands are arranged in order of their performance in each market segment.
Corn Flakes is leading in all the market segments while Weet-Bix is second, the other brands follow. Weet-Bix needs to increase its market penetration as it has not been able to penetrate all markets effectively as the data indicates. Weet-Bix's main competitor is corn flakes brand, this brand commands very high market penetration. It has 72% while Weet-Bix has 52% market penetration, corn flakes has been able to penetrate the various markets effectively than Weet-Bix. The data indicates that 67% of Weet-Bix customers also purchased a corn flakes brand while 71% of cornflake customers also purchased the Weet-Bix brand.
This is an indication that Weet-Bix has more loyal customers than corn flakes. The average percentage of corn flakes who also bought other brands is higher than for Weet-Bix, this cements customer retention and brand loyalty assertiveness s of the Weet-Bix brand. Also, it has an interpretation that customers prefer the Weet-Bix brand more than the corn flakes brand. The cereal market is very competitive, especially between Weet-Bix and corn flakes. Both brands have above-average market penetration (Lee & Carter, 2011). Duplication of Purchase Law is a pragmatic generalization; it uses repeat purchase patterns to identify the competitive structure of a market (Keller et al. , 2011).
It provides that levels of penetration moderate the amount of sharing among competing brands. The aberrations that occur attribute levels compete more or less than expected are known as termed partitions. This law provides a mechanism to look at patterns based on consumer purchases instead of patterns based on the market. Many brands consumers are multi-brand buyers (they buy a range of brands that are within their repertoires).
The other brands also buy are in the aggregate thereby indicating similarity from brand to brand as De Chernatony (2010) asserts. Therefore, duplication of purchase law appears to assert that brands share their customers with other brands in line with the penetration of each brand. Generally, this law means that consumer goods markets lack specific partitions that uniquely appeal to a specific category of customers (Srivastava & Thomas 2010).
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