The paper “ Consumer Behaviour - Brand Performance, Buyers' Consumer Preferences Regarding Kit Kat and Twix" is an intriguing example of a case study on marketing. Consumer behavior is the study of the procedures involved when individual buyers who are in a buying situation think, select, purchase and use or dispose of products/ services to satisfy needs and desires. Keeler (2001 pp. 4-5) noted that consumer behavior involves the mental and emotional process and the observable behavior of consumers during searching, purchasing and post consumption of a product or service. According to Guido (2001, pp. 31-32), one of the most important aspects of consumer behavior is market segmentation.
Here consumers are categorized using criteria such as, product usage, demographics which includes the objective aspects of a population, such as marital status, income, age and gender, and psychological lifestyle characteristics. Sharp (2007, pp. 56) states that emerging developments, such as the new emphasis on relationship marketing mean that marketers are much more concerned with the needs and wants of different consumer groups than towards sole loyalty. In this report, a market analysis research for fast food products is conducted for five brands that are in the same category in the market.
In this research, it is noted that the difference in market share statistics is due to the fact that each product has a different level of market penetration. The ones with a bigger share like Mars bar, Kit Kat and snickers have a great competitive advantage mainly because they have more customers than Twix and Nestle Gold who are lower share brands. The relatively small differences between brands in average purchase frequency and category buying rate are indicators that small brands have fewer consumers who might be less loyal to the product or are not loyal at all. Brand Performance. Keeler (2001) considers brand performance metrics as a tool to provide a measurable contribution towards the performance of a business with regards to the particular brand.
These metrics determine whether the brand is of any value to the business or not as compared to other brands. According to table 1, Mars Bar has the highest market share with a huge variation in market penetration. As a result, it has a significant competitive sole loyalty advantage over all other companies.
Despite being the second in market shareholding, Kit Kat has a poor category buying rate which is below the average. Comparing this rate with the companies that have a lower market share it is evident that customers prefer Mars Bar products much more than Kit Kat’ s. Consumers buy this category on average 2 times in the observed period. It is notable that the higher the market share, the lower the category buying rate. According to the Double Jeopardy law Share of category, requirements increase with penetration and market share and as expected, there is much greater variation in penetration as well as insole loyalty (Richard, 2000). Why is Category Buying Rate for Kit Kat being lower than that for Twix? In any time period, a company might be sharing a large percentage of its customer base with other brands that are giving out discounts or have cut down their prices, such that those customers who are not solely loyal to Kit Kats products will go for the alternative.
According to double jeopardy law, big brands lose a lot of customers but on the other hand, it is a small portion of their customer base.
Consumers on the other hand and with perfect knowledge of the market will compare the prices that different companies are offering and buy from the company that is offering a product at a cheaper price.