The paper “ Fast Moving Consumer Goods Brand, Brand Performance Measures for Tooth Paste Category, Choice-Based-Conjoint Study" is a thoughtful example of a research paper on marketing. This study consists of three sections with the first part giving a market analysis of fast-moving consumer goods. The second part is an investigation of the performance of various categories of toothpaste. The last section gives a Choice-Based-Conjoint study a wine category. In order for a band to survive in the market, there is a need for the market to be studied so as to come up with strategies that will enable them to compete effectively.
The study of the market situation will help to make a decision on whether there is a need to look for new markets or if within the current market there is still room for improvement. The first part of this study gives scrutiny of the performance of a fast-moving consumer goods brand which clearly indicates that the brand performance is declining and need to be addressed. The use of brand performance measures (BPMs) has been used in section two of the study in establishing the market position of a brand of toothpaste.
In the last study choice-based conjoint study has been used in the investigation of the wine-based category. Fast-moving consumer goods brandFrom table 1 it can be seen that the heavy buyers have decreased from 375 to 295 where the former figure represented 56.6% of the buyers in period 1 while the later is 44% of total buyers of the brand buyers. It is interesting to note that even after having a substantial contribution of nonbuyers joining the category of buyers the sales in the second period were still lower than in that of the first period.
The fact that there were new buyers for the brand is a clear indication that there could have been a substantial increase in buyers in the category including the buyers of other brands. This needs to be a great concern to the manager because it could have an implication that the general market expanding while the brand market happens to be shrinking. It can also be observed from the table that the heavy buyers are very few for each of the numbers of purchases made.
For example, the buyers who bought 14 and 15 items were only 1 for each while there was no buyer who bought 13 items. It is also seen that for those who bought 12 and 11 items were two for each case thus accounting for 29 sales (18 +11). This means that if there were about 6 for each of this group the sales in the group (12 and 11 item buyers) would have increased from 29 to about 87 (29x3).
The situation can be put in context by considering relating to the Dirichlet model. The model scrutinizes the buyer in terms of frequency of buying and their brand of choice. The inputs and outputs which are key to the model are the Brand Performance Metrics (BPMs) with the major purpose of having a clear understanding of the model being in the interpretation of the variations between the observed and the theoretical BPMs. Under this model, double jeopardy can be used to relate to the market pattern where it is believed that there will always be a direct relationship between the brand size and the level of loyalty which is likely to be commanded by the brand.
The implication is that if a brand has a larger share of the market it means it will have a better performance with more buyers with its brand loyalty being substantially high. Thus when the situation in the current situation is indicating that customer loyalty is declining which could be a clear indication the brand is losing the market.
the other observation in the model is that “ niche” brands that happen to be small brands commanding a high level of loyalty and change of pace where brands which are large end up commanding low-level loyalty are not a common occurrence. This is an indication that the decline in loyalty for the brand should be a cause of an alarm there is a minimal chance that the brand could be a good performer in the market while it is losing loyalty. It is not very possible that the brand is losing some of the customers to a niche brand which has a little impact on the overall market.
The most likely scenario is that the customers are being lost to a big player (or a new emerging big player) in the market.