Question

Client Name: ACME

Industry: Appliances

Product Line: High-end home refrigerators

Customers: United States, United Kingdom, and Germany home refrigerator buyers

Competitors: 1. Whirlpool (including Maytag, KitchenAid, Jenn-Air, Amana,
Indesit, Bauknecht, Ignis; among others)………Leading producer of
home appliances worldwide.

2. Electrolux (including Frigidaire, Gibson, Philco, Kelvinator, Zanussi,
AEG, White Westinghouse; among many others)………Second leading producer of home appliances worldwide.

3. Haier (including GE Appliances, Fischer, Aqua; among others).

"Thank you for meeting with us today," Tarek says. "Market intelligence has shown that our major competitors – Whirlpool, Electrolux, and Haier - are all developing new high-end refrigerators. These new refrigerators have attractive designs, are efficient, and durable, and are available in different colors. These refrigerators are priced well above the regular models that you are likely to see in Home Depot and Lowes, and sell for around US$12,000 per unit.

Tarek looks to you: "As ACME is debating whether to enter this market, we need you to participate in a new cross-functional product development team that will research the high-end refrigerator customer buying habits in our three main markets: U.S.A., Germany, and the U.K. We also need to know if there's an unmet demand for such refrigerators in those markets," he says. Erik Knops, ACME’s CEO, nods his head in agreement.

Tarek continues, "We need to take into consideration the different needs and preferences of high-end refrigerator buyers in those markets; as well as the demographics of those buyers such age and gender. The customer requirements for each of those markets are quite different."

Finally, Tarek remarks, "In addition, we need to know where those customers buy their high-end refrigerators from, and if there is any seasonal variation in sales."

Erik nods his head again, smiles, and adds, "Tarek and I want you to research the high-end refrigerator buyers’ needs and preferences for those three markets, and provide us with a customer buying behavior report in two weeks. Remember, the report should focus on the customers, and not on the companies!"

You know that to give Erik and Tarek the most in-depth report, you will need to conduct an analysis of the high-end refrigerator buyers in those markets. Each market has to be discussed and analyzed separately under its own headings and subheadings (three different discussions and analyses). In addition, you have to create a value proposition for ACME’s proposed product. The value proposition should be clear and specific to ACME’s proposed new product. What value do customers see in the proposed product and what would compel them to buy it?

Question to answer based on information provided and other sources.

How are things going?

As previously mentioned, I would like you to conduct an analysis of the consumers in our main markets. Your analysis should consider both current and potential product users and should address the following questions:

What needs are being met by the product purchase? What are the benefits to the consumers? Make sure that you differentiate between features and benefits; go beyond manifest motives and consider latent motives.

Who is involved in the purchase process? Who are the influencers? Who are the buyers? Who are the end users?

Where are the products sold, and what are the distribution channels?

How often are the products purchased? Is there seasonality to sales?

Deliverable: By the end of Week 1, I need you to produce a six-page preliminary consumer buying behavior report (excluding cover page, reference list, tables, graphs, and exhibits) explaining your findings on consumer needs, wants, and preferences in these markets. Make sure that your report is specific to consumers of ACME’s potential product and not to consumers in general.

Answer 1

The requirements being encountered by product purchases which are;

• Primary needs
• Accessibility
• Entertaining needs
• Esteem needs

Benefits to consumers;

• Gratification of the several needs
• Developed living values
• Cost for money

The dormant causes for purchases are implied for the customers. The evident motives are yet visible and well known.

Geographies of the product consumption are more observable (manifest) causes whereas the assistance are both apparent and dormant (psychological or hidden) in environment.

Explanation:

The needs being met by product purchases are;

Primary needs – Product consumption encounters primary requirements such as food, housing, clothing between others to the several customers.

Accessibility – More Accessibility is a favorite for the modern customers. This is due to the competence transported about by the current expertise in marketing.

Entertaining needs – entertainment is a main persistence for creation purchases specially the automated items, musical items, phones among others.

Esteem needs – Esteem needs comes with the existence. The Esteem needs smears for those who are measured wealthy in the society.

Benefits to consumers;

Gratification of the several needs – Customers are able to fulfill their needs whether they are dormant or apparent needs.

Developed living values – Product consumption delivers various fundamentals that increases our living surroundings.

Cost for money – If excellence is definite, the customers would be able to get worth for money over their consumption.

In marketing, the dormant reasons for consumption are understood for the customers. For example the emotional feelings to have a specific product or service. On the other hand, the apparent causes are however noticeable and well known. An example is the obtaining of a stuff in style which would make a discrete smart in presence.

The geographies of products or services also impacts the acquisition decision. The structures of the product acquisitions are more noticeable (manifest) causes as they would are perceptible and explicit. However, the assistance can be both apparent and dormant (psychological or hidden) in environment. The welfare that can be understood are more apparent and the ones that are psychologically hidden. Marketing policies have to participate both the dormant and apparent motives (needs) in aiming specific clienteles.