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CONSUMER BEHAVIOUR

TOASTER PASTRIES IN GERMANY

CASE STUDY-2

Submitted by:

NITHEESH N: 16MBA0017
CASE FACTS:

Companys existing product line: packaged cookies and bakery items

New product(American)- jelly/ fruit pastry; heated in a toaster

Considering launch in Germany; with modification

Informal sampling test showed positive result

1. Better liked without icing: packing was felt to be distracting

2. People receptive to having it with breakfast/afternoon coffee

3. Acceptable price: max.US $3 per box

Product targeted towards young adults, not averse on buying packaged


food

Though no technical difficulty in usage: the habits and norms of


Germans are different from Americans

The society is individualistic yet does not go against the social norms.

fresh and daily cooked food is preferred over pre-packaged food

The product can fit into

Morning breakfast

Evening snacks

A personal care for guest

Healthy, fresh food


ELEMENTS OF CROSS CULTURE BEHAVIOUR

INCOME

Attri utes Pro ess


Who Consumer The Ho
person values,
culture

Co su er
eha ior
do ai s
1. What element of cross cultural consumer behavior understanding are
suggested in this situation?

ANS: The pastries migrating from US to Germany (i.e.) US person and


Germany citizens are not same in daily practices (e.g.) climate issues, daily
habits, economic growth comparison. So I would suggest Mr. Gunther Schmidt
to introduce the pastries according to their country economy by making it
cheaper than US. US is capitalist and running under successful economy, where
spending is not a matter to citizens but Germany is an under developing country

FACTORS SUGGESTION:

Culture change- Cost efficient pastries

Brand should reach all over Germany(Advertising must)

Sampling (can introduce to Germany citizen in a sample way)

2. Would the toaster pastry as known in the United States be successful in


Germany? Why or why not?

ANS: WHY?

According to food habits in Germany, breads are consumed with pork, chicken,
lamb and beef which are expensive. So pastries introduction should be cost
efficient and it should be compensate the breakfast making it be successful

WHY NOT?

Some German citizens may have regular habits and health conscious so it may
flop in their view. It can be treated as just a snacks and wont be considered as
daily consumable product
3. If you believe the product should be adapted, what changes would you
suggest?

ANS: Changes suggestion include-

Fruit in the middle and Icing on the outside (an innovative way instead
of normally placing fresh fruit on top and also people prefer icing more)

Simple packaging (foil wrapping),as package graphics are distracting.

Sell it as a dessert, as prepackaged dinners and desserts are gaining


market share in terms of total food sales

Using whole meal grains for making bread for people who are health-
conscious

4. What marketing strategy would you recommend to introduce a toaster


pastry in Germany?

ANS:

Branding and sampling (In-store promotion) strategies can be


recommended to achieve product awareness.

Advertising in Televisions, newspapers, and home-making magazines to


gain market penetration.

Focus more on advertising through TV

[Every German household has at least one television and one radio. But still the
most prevalent form of advertising is done through newspapers. Expenditures
on advertising: newspapers (45%), Periodicals (16%), TV (12%)]

No comparative advertising as it is considered illegal.


5. What role might consumer learning play in the success of this product?

ANS:

To sell this product successfully the taste quantity should remain same ever as
quality one. If it is made affordable (below $3), consumer willingness will be
more to buy this toaster pastries.

Consumer believed that it is healthy because it has fruits in the middle.

German consumers usually do not buy frozen products, so they need to go


shopping more frequently, this toaster pastries baked freshly so they showed
more interest towards this product.

6. Can you suggest areas where the goal of attitude change might be a
useful marketing strategy to consider?

ANS: I think Germany consumers only prior experience with jelly filling has
been with a popular doughnut called Berliner.

Youth would be more receptive of new products than older generation. Almost
40% of population is under 25. They are not averse to pre-packaged, time
saving food items
Assignment-1
1. The companys service experience is so unique and memorable. The company is
known for the grand safari that it forces visitors to go on every time they enter in one
of their stores, the customers must navigate their way through a tortuous maze
(explaining very nook and cranny of the store in the process) to find the items they
want, they carry them to the checkout counter, haul them to their cars.
2. Trends such as increased urbanisation and higher incomes, combined with the
growing sophistication of consumers and their increased demand for foreign brands
favours Ikeas expansion over India. The demographic condition that favoured Ikea is
that India has more than 1.2 billion people and it is projected that India will have
annual growth of almost 6 present. The country is expected to be one of the top 5
economic nations in the world by 2030.
3. India is experiencing rapid economic growth, but it is still a relatively poor country
with some major internal problems. One would be the poor state of Indias
infrastructure, especially its roads and railways. Restricted capacity at India seaports
can add days to the amount of time it takes to ship an item.
4. Ikea will be successful in India because the product lines which Ikea has overseas and
the reputation of quality and service it enjoys. Ikea will be sourcing 50% of its goods
from the domestic market that India Ikea have a huge advantage that this labour is
cheap. Which it can transfer to it customers, resulting in less prices. Branded outlets
today offer minimisation functions in sky high prices, with the supply chain and
technology Ikea would be bringing, the design would be more modern.

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