Discuss about the Case Study: The Management of Naturally Cheeky.
Product positioning is one of the key elements of a marketing plan. It can be said that product positioning is the method that is widely utilized to determine the best way to communicate the products’ attributes that they are offering to the target customer base depending on the demands of the clients and the competitive pressure and the availability of the communication channels. On the other hand it is also important to determine the buying behavior of the target customer or the market by the management of the organizations as a good understanding of the requirements and the demands of the customers is important. It is vital as the management of Naturally Cheeky should have an understanding of the B2B and the B2C clients before positioning their products in the market. It has been seen that knowing what the group of customers or the retailers want and have an inclination on some specific attributes of the products they want to purchase. Consumer behavior is an integral part of the marketing mix as the major elements of marketing mix are the product, price, place and promotion are immensely dependent on the consumer behavior of the target market and therefore it would be necessary to know the demands of the customers before preparing a marketing mix.
B2B or business to business can be explained as a situation where the manufacturing company is making commercial transaction with the retailers and these types of situation generally takes place when a manufacturing company is offering their products to the distributors or the retailers to sell the products off in the market (Wang, Liaukonyte and Kaiser 2018). For this particular case study, the management of Naturally Cheeky, the distributors and the retailers of the Australian market are the target B2B customers and they will be needing their market reputation and salability to sell their products to the target customer base.
The decision making process of the buyers determine the profitability of the organizations that are manufacturing and the business organizations that are distributing the products to the target customers. There are three important models for explaining the decision making process of the customers and in this regard, it can be said that Utility theory is one of the primary models of decision making process of the customers. It has been observed that Utility theory explained that the customers take decisions depending on the expected results of their other decisions and under this model it can be seen that the customers or the clients are looked at as rational thinkers who has the capability to estimate the probable outcomes of the uncertain decisions and chose the outcome that can maximize their well being (Wilson et al. 2016).
Satisficing model explains that the customers or the consumers get what they want to have and then stops the decision making process. For an example, it can be said that if a customer searches for an apartment; they tend to evaluate every apartments they come across, but after getting the apartment or after buying one, they stop judging or evaluating other apartments.
Prospect Theory on the other hand explains that values and endowment are two fundamental concepts in which a product is more valuable to an individual who has the need of acquiring that product, its value may be lesser to another individual who does not have the need to acquire that particular product (Pennay et al. 2015).
Therefore, the management of Naturally Cheeky will have to create a demand of their product by making it healthier and chemicals free, so that the young population, that is the target customer base has the urge to buy the products and that can make the distributors to take up the responsibility to distribute the products after buying it from the manufacturers.
In B2B transactions, the customers of Naturally Cheeky are the distributors and the retailers and therefore, the management of the business organization should stress on motivating the retailers to buy their products and distribute in the targeted niche market of Australia. It can be said that motivation is a target oriented behavior and if the management of Naturally Cheeky becomes successful to motivate the distributors to sell their products, it would be better for them and it can effectively increase the salability of the brand. The management will be needing to highlight the positive attributes of their product and that can only effectively increase the salability of the product.
There are various factors that can influence the perception of the target customers and in B2B transactions, the distributors are the target customers of the company, and it can be said that if the management of Naturally Cheeky can take help of advertising using billboards, advertising in shopping malls and via digital marketing to create a demand and curiosity among the dealers and that can give a boost to the saleability of the products. According to Wilson et al. (2016), it has been observed that as the drink produced by Naturally Cheeky are of high food value and nutrients, naturally it has the ability to attract the customers and the management of the organization will just have to create a good perception of the dealers on their products and then only they will be able to sell their products easily in the target market.
To sell the health drinks produced by Naturally Cheeky, the management of the business organization should enhance the knowledge of the target B2B customers regarding the attributes if the products they will be selling to the customers. It has been seen that Naturally Cheeky being a company that sells products to a niche customer base naturally their pricing of the products will be in the higher end and therefore, the management of the company will have to be specifically careful about providing adequate information to the target customers regarding their products.
The management of the organization will be selling health drinks which have high nutritional value and therefore the management of the organization had to keep the pricing on the higher end. Thus, the management will have to make it sure that the customers are satisfied with their product and by their word of mouth publicity; the management of the organization will have to create a social influence. In order to enhance the influence on the niche society, the management of Naturally Cheeky will have to stress on extensive digital marketing and increasing awareness regarding to attributes of the products in social media websites to reach up to their niche target customers.
The management of Naturally Cheeky will have to get to know the requirements of the target niche customers if they want to maximize the salability of the company. As the target consumers of the company are the niche young population of Australia, therefore, it would be important to know how they can convince them to buy their products. The management will have to depend on numerous types of advertising in order to let know their target customers regarding the products they are offering to them. Apart from that the nutritional values of their drinks can be used as a tool to attract the health conscious youth of Australia.
The attitudes of the customers in the post purchase phase are also important. As the target B2B customers of Naturally Cheeky are the distributors and the retailers who are operating in the central regions of the urbanized areas of Australia, therefore it would be the responsibility of the manufacturer company to improve their approach towards the products they are offering to them. The management will have to depend on surveying and getting feedbacks from the retailers and then only they will be able to determine how the product is getting accepted in the market. It is the retailers who can easily get to know the requirements of the target consumers as they deal with them in face to face conversations and therefore, the management should gather necessary information regarding the acceptability of their health drink after launching it in the market.
Business to consumer model can be referred to the traditional transactions that are conducted between the business organization and customers are the uses of the services and products directly. As opined by Vallance et al. (2017), this business model is significantly different from the business to business model as here the organization directly deals with the consumers however this business model is mainly referred to the online retailers and the other organizations which sell services and products to customers through internet or business outlets. This model has large expanded during 1990s while the general public access of internet has been developed.
There are various models that are responsible for developing a large number of customers in b2c business model. In this regard it is worthwhile to mention the stage theory that identifies different stages in the interpersonal relationship between the business and the organization undergoes namely the attraction or acquaintance build up consolidation or continuation deterioration and ending (Vallance et al. 2017). This theory evaluates the continuously changing dynamics between both the parties as the interpersonal relationship dresses through various stages and also classifies each into a particular stage. Therefore this model gives a broader insight into the b2c relationships. According to Wilson et al. (2016), this model points out that the computer human interface should be broadly utilized for attracting building and maintaining the customer relationships. The main focus of this model is the breadth and the depth of the interrelationship which can be strengthened through these stages.
Another theory that contributes to the business to consumer model is social exchange theory that refers to the fact that the relationships that are created and maintained are the one that increases the rewards and minimizes the costs. Therefore it can be seen that the human beings are mostly self-centered and not really concerned about equality therefore they only maintains those relationships which are more beneficial for them with the least amount of effort given. It can also be found out that this theory refers to the human exchanges which are good and sustained by only cost benefit approach. As stated by Scrinis and Parker (2016), if the businesses are receiving important information during this exchange process it increases the interaction frequency to a great extent. However if any behavior is found to be less rewarding the exchange process may not be sustained as well. This relates to the b2c business model as it can be indicated that if the customer believes that they will receive more in turn, they will come to the same organization repeatedly.
The decision making process of the consumers can also be defined through another distinct model system II that refers to a slow yet effortful and control method of thinking which requires more energy and attention however if engaged it has the capability to remove the instinctive biases (Pennay et al. 2015). Inner b2c business model the organization puts slow yet effortful attention to the customers’ approaches and attitudes to find out their potential buying decision by collecting more information about them. Consumer services interviews and other primary research methods are still effective for collecting appropriate data in large decision making process of consumers.
Customer motivation is the most significant part of a b2c business model. The 6 C model of customer motivation can be utilised while the company is developing their products and start getting a Focus Group by defining the online value proposition. The 6 C’s of this model are content, community, cost reduction, customization, convenience and choice. The company is to provide write content including the details service and product information along with the value of adding content within the right can text through right media or any other interactive services should be proposed. For this organization the target market is the customer group who are health conscious therefore write content about the product and how it can be helpful for such consumers should be provided (Scrinis and Parker 2016). The company can also customize or personalize their products for individuals or a group of individual along with providing 24/7 after Sales Service. Also if the customer motivation is to be increased the company should reduce the cost of the product by targeting a specific customer community along with providing additional flexible payment methods through digital media. These features attempt to increase the customer motivational level for the health drink (Previte, Russell?Bennett and Parkinson 2015).
There are various dominant determinants in the consumer perception and attention in b2c business model. According to Wilson et al. (2016), it is very important to gain the consumers trust however it is a multidimensional notion and it is quite difficult to be measured or defined at the same time. It has been indicated in several researches that perceived reputation perceived security and the perceived privacy are essential factors which influences the perception of the consumers in b2c e-commerce. However there are also other factors such as the Assurance from the third party quality of the websites et cetera which have a close relation with the online attention and perception of consumer about the company. In light to these findings it can be said that in the organization requires developing security solutions along with firewalls for protecting the personal information of consumers from emerging threats of cyber scams and frauds (Peacock et al. 2015). This also implies that the retailer should make their website which is classy yet simple and has a strong mechanism for security which will protect the trust of the consumers and promote their confidence for transacting online.
The customer relationship management is a procedure which focuses on utilizing the information of the customers for creating developing and maintaining a profitable and long term relationship through the value perception of customers that may reflect on increasing the stakeholders return (Henryks and Brimblecombe 2016). In this light it can be said that the companies should recognize the knowledge of customers as a measure resource in the contemporary market in gaining the competitive advantage. It is unlikely for a contemporary organization not to articulate their organization knowledge (Leach 2016). By utilizing the consumer relationship management the organization can strategic early man in the relationship with the consumers for creating more values for the stakeholders. This model provides numerous opportunities for using the information and data of consumers that allows them to understand their customers and implement better strategies and policies for relationship marketing. In this regard it can be mentioned that this a procedure is not only confined to any technological tool or information system rather the customer relationship management process should be implemented and practiced within the organization as well (Delaney et al. 2017). As the company Naturally Cheeky targets the health conscious population they should create values and amend this in the strategic vision of the company so that it helps them to develop strategic relationship with their consumers which will eventually result in a profitable and long-term interrelationship.
The behavior of consumers is influenced by several external and internal factors which lead to define situation of choice. There are social and group influences on the consumer behavior especially on the attitude and responses of the consumer influenced by their respective social roles and the social group to a great extent (Delaney et al. 2017). This social influencing can occur both indirectly and directly through social groups where the consumer maybe long or aspire to belong by assuming a specific role. It has been found out that the membership groups are the closest group kind that involves other members who are closely related with the life of a individual customer. This membership groups are mostly informal including the friends, family and colleagues who are integral part of the daily life (Bousbia et al. 2017). At the same time the formal groups like the trade unions and super religious groups also influence the customer buying behavior in b2c business model. In this context it can be said that the target consumers will be highly influenced by their immediate groups while buying the health drink.
As the target customers of the company Naturally Cheeky are the niche young population of Australia who are health conscious therefore, it would be necessary to get to know their personality and the approach of them towards the drink offered by Naturally Cheeky. The emotion of the target customers can play a significant role in the salability of the product, as if the company is able to manage to advertize in such a manner that can influence the emotions of the target customers to drive them to buy the product then nothing would be like it. The management of Naturally Cheeky will have to extensively stress on advertising campaigns and surveying among the customers to know the acceptability of their products (Blake et al. 2017).
The management of Naturally Cheeky should emphasize on the attitudes of the customers before selling their products and most importantly after the purchasing. As the target customers are the niche youth of Australia, the management will have to ensure that the quality of their products are on the higher end as the pricing of their products will also be on the higher end. Therefore, getting to know the attitudes of the customers will be important to sustain the productivity and profitability of the business (Annunziata et al. 2016). Not only that, if the customers are satisfied, then only they will be able to gain a positive reputation in their market of operation. It is a matter of fact that the salability of any product significantly depends on the customers’ attitude on the products and therefore the management of the manufacturer company should stress on maintaining the quality of the products they will be offering and should emphasize on effective marketing using relevant models (Coomber et al. 2017). It is a matter of fact that for increasing the salability of the health drinks, word of mouth publicity has a great significance and of only the quality of the products is good, it will effectively give a boost to the word of mouth campaign and the company will be able to experience a major boost in the profitability.
References
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Blake, M.R., Peeters, A., Lancsar, E., Boelsen-Robinson, T., Corben, K., Stevenson, C.E., Palermo, C. and Backholer, K., 2017. Retailer-Led Sugar-Sweetened Beverage Price Increase Reduces Purchases in a Hospital Convenience Store in Melbourne, Australia: A Mixed Methods Evaluation. Journal of the Academy of Nutrition and Dietetics.
Bousbia, A., Boudalia, S., Chelia, S., Oudaifia, K., Amari, H., Benidir, M., Belkheir, B. and Hamzaoui, S., 2017. Analysis of factors affecting consumer behavior of dairy products in Algeria: A case study from the region of Guelma. Internastional Journal of Agriculture Research, 12(2), pp.93-101.
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