The Application of Consumer’s Knowledge

CONSUMER BEHAVIOR PAPER The Application of Consumers K right offledge and Involvement Concept in Adu Segar Larutan Penyegar Case Study from Brand cap kaki Tiga linear perspective September 2012 MMBM Batch 25 Team 2 Dickson Mulia 0152121007 Genoveva Iswati0152121016 Arfianti Puspitarini0152121035 Maulana 01521210xx EXECUTIVE SUMMARY Larutan Penyegar capital kaki Tiga, currently being manufactured by PT gum kinoc be, is veneering a fierce competition against Larutan Penyegar roof Badak since Wen Ken Drugs decision in February 2011 to withdraw the license from PT Sinde Budi Sentosa and granted it to PT Kinocare.In the market, the refreshing Larutan Penyegar punk kaki Tiga is perceived as a replica convergence of its predecessor and they are struggling to gain consumer tell on awareness and eventually become consumers choice. In this theatrical role study, we recommend Larutan Penyegar exhaust hood kaki Tiga to get out of the tight corner by implementing a breakthrough innov ation in parliamentary procedure to gain consumer interest and remove consumers visual imagery of Badak logotype that has been anchored in consumers memory since 1937 I. BACKGROUND 1937 The Product Era close to 75 years ago, in 1937 four Singaporean Chinese families decided to go into business together to market a secret conventional medical recipe which becomes known as Three Legs Cooling Water. In Hokkien, 3 legs (pronounced as Sa Ka) is a popular proverb meaning to flatter someone. But in the world of traditional medicate in Singapore and Malaysia, the 3 legs means a simple effective way to prevent or heal fever and headache caused by healthiness in the body The logo features twain legs on solid ground and one additional leg to provide additional make and expedite the healing process.The radially symmetrical legs represent equality for all and humbleness on differents views and suggestions. And finally, the circle marks the cohesiveness of the staff and customers centere d on the triple legs 1978 Introduction into Indonesia Market About 30 years ago, in 1978 Wen Ken Drug Co. Ltd Singapore granted the license of Three Legs (known locally as strong-armer kaki Tiga) to PT Sinde Budi Sentosa as licensed shaper with headquarter located in Jakarta. 2011 Transfer of License Wen Ken Drug Co. Ltd Singapore withdrew the license of Cap Kaki Tiga from PT Sinde Budi Sentosa and transfered it to Kino assort.February 2012 The aspiration Kino Group was prohibited from using Cap Kaki Tiga brand together with Cap Badak painting on the yield. PT Sinde Budi Sentosa has win their claim over the usage of Cap Badak painting on their products and Kino Group may use Cap Kaki Tiga brand. This is the beginning of the competition on cooling water between Cap Kaki Tiga and Cap Badak. Following is the comparison of the product Larutan Penyegar Cap Badak (Sinde) and Larutan Penyegar Cap Kaki Tiga (Kino). About Kino Group Kino Corporation started as a small distribution company named Duta Lestari Sentratama back in 1991.Another big step was taken in 1999, Kinocare Era Kosmetindo,manufacturer of a wide ambit of personal care products for all genders and ages was established. 2003 saw Kinocare Era Kosmentindo enlarged its businesses further into homecare division by providing a wide range of homecare products under the brand Sleek. Expandinginto Asian region, in 2002 Kino opened its branch office in Malaysia Kino Care (M) Sdn. Bhd. , and in 2003 in the Philippine Kino Consumer Philippines Inc. and similarly established distributorships with some other big distributor companies in Singapore, Brunei, Vietnam and Myanmar. Kino Group consists of the following . PT KinoCare Era Kosmetindo Personal care and pedestal care products (Kino Sweat, Ovale, Eskulin, BB Kids Shampoo, Ellips, Sleek, Cap Kaki Tiga) 2. PT KinoSentra Industrindo confectionary products much(prenominal) as groundworkdies, snacks and chocolates (Kino Candy) 3. PT KinoAid Indonesia Pharmacy and Beverages (Resik V, Absolute, Panthers) 4. PT Duta Lestari Sentratama Distribution After almost two decades, Kino Corporation Group products are now available in big distributors, hypermarkets, supermarkets, mini-markets, thousands of cosmetic stores as well as million of small traditional outlets throughout the Indonesian archipelago.Kinos product quality has met international standard qualification, proved by the increasing demands from the markets all over the world. II. BASIC CONCEPT AND supposition The scope of analysis of Adu Segar Larutan Penyegar Cap Badak vs. Kaki Tiga case is focused on Consumers Product Knowledge and Involvement concept. Consumers have different levels of product companionship, which they hatful use to interpret new information and make leverage choices. Levels of knowledge are formed when people acquire separate meaning concepts (accretion process) and combine them into larger, to a greater extent abstract categories of knowledge (tuning ).The levels of product knowledge are classified based on below spectrum More Abstract Less Abstract Product trend Product Form Brand Model/Features Larutan Penyegar Ready-To- Drink Cap Kaki Tiga Original(Bottled , 200ml 500ml)Fruity taste(Canned, 330ml, available in 7 variants) Because consumers are likely to make separate barter for decisions at each level of knowledge, marketers need to understand how consumers organize their product knowledge in terms of these different levels.Thus, based on this concept, the elementary questions that expertness arise are What are the levels of product knowledge for Larutan Penyegar? and Which are the dominant factors that influencing consumers purchase decision? The knowledge of consumers is organized into means-end range of mountains concept. In this concept, consumers can have three types of product knowledge * knowledge near the attributes or characteristics of products, * the positive consequences or benefits of using products, * the values the product helps consumers satisfy or progress to Products as Bundles of AttributesThe simplest line to describe Products as Bundles of Attributes is that it is the physical characteristic of the product itself. From a cognitive processing perspective, we might wonder if consumers really have knowledge in memory slightly all of these attributes and whether consumers actually activate and use this knowledge when deciding which products and brands to buy. To evaluate whether consumer awareness of product attributes of Larutan Penyegar , we might get the fingerbreadth by asking Do you know the basic ingredients being used in this product? or Would you compare the ingredients of each brand? Products as Bundles of Benefits Marketers also recognize that consumers lots think about products and brands in terms of their consequences rather than their attributes. Consumers can have knowledge about two types of product consequences functional and psychosocial. available conse quences are tangible outcomes of using a product that consumers experience rather directly while psychological consequences of product use are internal, personal outcomes, such as how the product makes you feel. Products as Value SatisfiersConsumers also have knowledge about the personal, symbolic values that products and brands help them satisfy or achieve. Values often involve the emotional affect associated with such goals and needs (the strong feelings and emotions that accompany success). In contrast meansend chain links consumers knowledge about product attributes with their knowledge about consequences and values. In other words, consumers see most product attributes as a means to some end. The end could be a consequence (a benefit or a risk) or a more abstract value. A common representation of a meansend chain has four levelsBrand Attributes Functional Consequences Psychosocial Consequences Value Larutan Penyegar Cap Kaki Tiga Mixture of medicinal ingredients Help relieve s ore throat I feel break off / healthy - Based on above figure, the means end chain of Larutan Penyegar Cap Kaki Tiga ends at the level of psychosocial consequences. III. CONSUMER ANALYSIS Having all the questions behind the basic concept, we must get the answer in order to understand the levels of consumer product knowledge, the means-end chain of Larutan Penyegar Cap Kaki Tiga and whether consumers aware of the competition of Cap Badak vs. Cap Kaki Tiga and if the subjected case influences the purchasing behavior. Therefore, a small research was conducted with the following design Methods Quantitative, Face to Face interview Geographic location Jakarta, Bogor Sample criteria Consumer of Larutan Penyegar with the following constraints * 18+ years old * Purchase decision maker for Larutan Penyegar RTD * Purchase Larutan Penyegar RTD in last 6 months Sample size 21 samples Research findings 1. Cap Kaki Tiga name dominates the Top of intellect awareness by 90%, left Cap Badak wi th only 10% TOM. Cap Kaki Tiga Cap BadakTop of Mind Awareness 90% 10% Q Thinking about Larutan Penyegar brands, what brand name do you think first of all? 2. 90% of respondents recall their last purchase of Larutan Penyegar brand is Cap Kaki Tiga Cap Kaki Tiga Cap Badak Last Purchase 90% 10% Q What was the brand(s) have you bought in past 6 months? 3. Interestingly, from 90% respondent who mentioned that their last purchase was Cap Kaki Tiga, only 19% who can distinguish the new packaging of Larutan Penyegar Cap Kaki Tiga and chose it, while 62% of the respondent most likely recall visual imagery of Badak and chose Cap Badak brand.The rest 19% didnt remember which bottle that they bought. Cap Kaki Tiga Cap Badak Dont Remember Visual Imagery 19% 62% 19% Q Now I would like to know how familiar you are with the Larutan Penyegar product. 1 set bottles of Larutan Penyegar Cap Kaki Tiga vs. Cap Badak, and point which bottle they bought the last time 4. 90% of the respondent does not aw are about the competition about the product not Aware Aware Awareness about the case 90% 10% Q Do you know that currently there are two different products? 5.After the respondents are told about the brief description whether the old Cap Kaki Tiga is currently produced by different manufacturer (PT Kinocare), and the manufacturer of old Cap Kaki Tiga is now producing Cap Badak, only 10% of respondent who prefer Cap Kaki Tiga, 52% prefer Cap Badak and 38% would choose any products that is available in the store. Cap Kaki Tiga Cap Badak Anything Brand Preference 10% 52% 38% Q After you have the knowledge that currently there are 2 brands, which product(s) that you would choose?To summarize, based on the research above, the insights are 1. Most of the respondents (90%) do not aware about the competition of Larutan Penyegar products from the two brands (Cap Badak vs. Cap Kaki Tiga). 2. Inconsistency happened on brand name and product recollection. The high respondent mind share on Cap Kaki Tiga name (90%) is not translated into product election (19%) due to people historical memory about the product is anchored in the strong visual image of the Badak packaging. 3.An interesting fact appears when respondents are told about the difference of the brands, ironically most of them (52% vs 10%) prefer to choose Cap Badak instead of Cap Kaki Tiga. However, there is still an opportunity for Cap Kaki Tiga to win the 38% respondent who would choose any brands. Then, based on insights above, we can identify a couple of(prenominal) problems of Cap Kaki Tiga current products, which are 1. Badak logo imagery is very strong in consumers mind. To win over Badak image is quite impossible eventhough consumers have strong awareness on Cap Kaki Tiga name.If both products have to be in head-to head competition, such in display, most likely consumers will always choose Cap Badak. 2. From interviews, we got few comments about Cap Kaki Tiga logo which is not quite familiar and dont loo k interesting at all. Some of them think that logo of Cap Kaki Tiga makes the product looks like a fake. Some even thought the logo looks associated with poisonous mosquito-killer insecticide product logo. IV. RECOMMENDATION RECOVERY/ resoluteness AND KEY LEARNINGOur group proposes several recommendations for Cap Kaki Tiga brand to be considered 1. Launch new format of Cap Kaki Tiga with totally fresh new whole concepts (packaging design, formats and marketing communications). a. Changes of packaging design should emphasize on the Cap Kaki Tiga name, as its strong point, and minimize the proportion of Cap Kaki Tiga logo, as its weakness point. b. Changes of bottle format with new shapes. We analyzed that with same bottle format as Cap Badak, it wont be beneficial for Cap Kaki Tiga.The reason for that is the consumer will always associate the bottle format with Badak painting in it and they would most likely prefer it and assume the Cap Kaki Tiga current same format as a fake. c. To support the changes in design and bottle format, we have to give strong marketing communications show on historical journey of original Cap Kaki Tiga brand product. This approach has the ultimate goal to underline the originality of the brand with Cap Kaki Tiga as the holder of official license from Wen Ken Drugs since the very beginning and create consumer confidence that the product is not a fake. . In order to ontogeny consumer involvement, we recommend Cap Kaki Tiga to tap into younger segment through its flavored variant product line by communicating Larutan penyegar as daily beverage. done this outline, it is expected to create a new image and perception that a consumer does not have to wait until he feels sore throat to consume Larutan Penyegar. To support this strategy, Cap Kaki Tiga might conduct a marketing event that promote consumers involvement in the usage of the product, for example conducting 10K Running Competition for charity, sponsorship in sports competition (e. IBL) as the official beverage, sponsorship in school annual music festival, and so on. 3. Strengthen distribution channel is also key strategy Cap Kaki Tiga have to explore to win the competition. To target indifferent consumers, availability of the product is a must. Kino should have expertise on this area, since other Kinos products are already strong in distributions. 4. Have further research (ZMET Study) in order to get further insights on d. The brand and logo association, how Cap Kaki Tiga brand and logo can affect the consumer purchase decision. e.To understand the key reason for purchase and also the influential gain point so we are able to develop effective marketing campaign on the new concept launch Key learnings from our study on Cap Kaki Tiga brand, stated as following 1. Top of mind awareness of brand is not necessarily translated into consumers decision to purchase (share of market) for the case of Larutan Penyegar competition. Therefore, an effective marketing strategy is needed to drive consumer purchase furthermore. 2. High brands awareness means nothing if the consumers dont aware about the product itself.A product must have a uniqueness to be able to distinguish itself from the crowd and chosen by the consumers. 3. Cap Kaki Tiga has to try to go out from Red Ocean competition with Cap Badak. The more they are trying to compete head-to head with similar concept as Cap Badak, the less(prenominal) opportunity for Cap Kaki Tiga to win Larutan Penyegar competition. 4. It worth to have a shot on going to the market with fresh new whole concepts, because Cap Kaki Tiga has opportunity to be the offense side, rather than Cap Badak as defense side. Offense as to grab the indifferent market as mentioned ahead on the short-term basis, and to grab the current market share from Cap Badak on longer term period. V. REFERENCE 1. Peter, J. Paul & Jerry C. Olson, Consumer Behavior and Marketing system, 9th edition, McGraw-Hill International Edition, 2 010. 2. http//www. wenken. com 3. http//harrysanusi. blogspot. com/ 4. capkakitiga. com 5. Suryadi, Dede, Adu Segar Larutan Penyegar, SWA Magazine Edition 22, October 2011.