2012 CONSUMER BEHAVIOUR

ASSIGNMENT 1

SNEHA SEN INTRODUCTION : M.F.M 2 Digital media technologies have opened many new channels of communication and
information, giving companies the opportunity to develop much closer relationships between their brands and their consumers. As a result, both companies and their brands have had to establish the type of strong personality and confident attitude that can engage consumers, inspire trust, obtain advocacy, and sustain active interest and involvement.

With digital technology, the number of ways and methods of communication has exploded. Consequently there are also many more opportunities to catch consumers attention. However, once we have their attention, consumers have the ability to create their own media content and spread their own messages to the masses. Using the Internet, consumers can easily find and compare similar products from different dealers indifferent countries and then share their opinions instantly with each other. These new lines of communication give consumers an unprecedented influence over brand perception and a key new role as co-creators of the brand.

Think Macro, Act Micro :

Communication channels to the consumers are extremely complex today because digital technology has fragmented the media picture. This necessitates thinking about marketing and media planning in new terms. In terms of a brand, the message must be sufficiently unique and effective to function on a number of media platforms, both old and new. In terms of consumers, we must now capture their attention through new, often non- traditional, channels, many of which are more relevant to the brand story than traditional media or their online platforms. Consumers expect the brands they love will behave in a way that engenders connection and consistent relevance. This is the case with many of the major brands, which think about the manifestation of the brand personality across all channels and platforms These channels should not be seen as a separate network, but rather as an integrated part of a whole new infrastructure. This new world will permit companies to reach a global audience Pre -disposed to their market by producing and publishing their own content on the Internet. In combination with other marketing activities, this creates a program where the communication cascades, extending the reach of all media. It requires starting with something that is worth talking about, and which has attitude and authenticity sufficient to come through the dialogue unscathed but surely tested.

USE OF DIGITAL TECHNOLOGY & ITS IMPACT ON CONSUMER BEHAVIOUR :

Retailers have lost control of their stores. For that, you can blame the smart phone. The proliferation of the I -Phone and Android-based devices has dramatically altered consumer expectations and behaviour. Life is increasingly lived online and mobile devices act as alwaysthere, always-on valets. In just about any environment, people want to be online communicating, sharing and researching. This is especially true in stores, where consumers can use their mobile Web browsers and apps to compare prices and products across retailers. When threatened with commoditization, retailers see their margins come under pressure from being the lowest price option or price matching. And whats strange is that the storeowners are letting this happen by not giving shoppers the digital experiences they so clearly want. Some of the more progressive retailers and brands have tried to regain some control and become more digitally interactive in-store. However, in talking with our retail clients, they often cite past failures and/or implementation constraints as primary reasons why they havent made much progress. A big distraction that keeps some retailers from making progress is their Apple Store envy. Almost every retailer cite the Apple Store as best-in-class, the benchmark for what they aspire to be. Cupertino has several advantages over the average retailer: strong brand affinity, sexy product lines, knowledgeable, enthusiastic and digitally-enabled sales associates and strong customer support. The cold, hard truth is that the vast majority of retailers can never be like the Apple Store. But retailers can deploy immersive digital experiences to inspire customers, elevate their products and educate consumers. For retailers, brick-and-mortar stores still have two big advantages: physical space and sales staff. Physical stores offer a huge home-field advantage and, even though consumers are more informed and digitally connected, they still seek out the in-store shopping experience. Why? Because theres no better way to tangibly experience a product prior to purchase. Theres also social and entertainment value that consumers place on shopping experiences. So retailers should look to digitally enhance, not replace, the shopping experience. For brands, differentiation is difficult when similar products are compared side by side. Immersive digital experiences are a great tool for educating consumers on the value proposition of products as well as cross-selling accessories. As per observations , it has been seen that digital experiences can lead to an 11 percent increase in the average basket and a 20 percent increase in accessory sales. One of the best uses of immersive digital in-store is to serve the demand for personalization. Consumers want configurable, personalized products but they struggle with complex buying decisions. Interactive touch screens and gestural experiences are excellent for providing

customers with the ability to configure and personalize products to fit their needs. Thats something smart phones dont do well. These experiences create a deeper affinity for a retailer or brand, leading to up to a 10 percent increase in customer satisfaction. One of the biggest myths about immersive digital in-store is that its focused on self service. Actually, the opposite is the case in the retail world. Retailers in general are not looking to add staff, but almost every retailer is looking to make their sales associates more effective. Burberry has equipped associates in China with iPads to provide better access to online and offline inventories, while JCPenney has done the same to assist with complicated bridal jewelry purchases. Whether it be arming sales associates with tablets or providing touch screens for consumers to co-experience, the results have averaged a 4 percent increase in sales associate satisfaction and less turnover. According to Deloitte, retail leads all industries in adopting tablets. Their study predicts that 25 percent of all tablet computers will be bought by businesses this year and the number will continue to rise.

According to eMarketer, Retailers are looking to digital technology to help influence consumer decisions at the shelf level, while also aiming to streamline and ease the shopping process. Consumers are also receptive to digital technologies deployed in-store when they receive a tangible benefit. These days, digital in-store has to be at least as cool as the device your customers are carrying in their purse or pocket. The smartphone does a hell of a lot for a device that costs a few hundred bucks. Its a portable communication device, data store and entertainment platform with tons of utility. So why not just enable mobile apps in stores? Because customers did not go to the store to use their mobile phones. Theyre there to shop and experience shopping. Digital needs to complement and enhance the retail shopping experience, and to do so effectively, it needs to be more immersive and more engaging than your customers mobile device. Size does matter attraction and engagement are more keys to adoption. Big, high-definition digital displays are hard to ignore but they must enable an experience that helps customers connect with a brand. For example, JCPenneys in-store deployment of its Find more smart fixture experience inspires customers to digitally shop by look leveraging a 42 highresolution touch screen, rich content and an extended online and offline assortment. Immersive digital experiences have a 53 percent higher attraction rate over traditional digital signage. To be clear, were talking about inspiring customers in order to drive sales, not servicing customers like theyre at an ATM.

SAMSUNG :

According to the global brand scoreboard of 2004 from Inter-brand , Samsung, the Korean based electronics brand, has boosted its profile and being listed as 21st valuable brands in the world. Its brand values urged by 16% to 12.5 billion US dollars compared to the figure in2003 which is 10.8 billion US dollar. (Simon, 2004) It becomes the worlds leading brand in electronics and digital industry. This achievement is closely related to its sponsorship strategies. Samsung associate its name to the TOP plan, which is The Olympic Partner plan. It is a plan which leads Samsung to be the top brand in the world. However, there are many other programs to support Samsungs sponsorship strategy. Without these strategies the TOP plan will not have such effectiveness and efficiency. Samsungs philosophy is devote our human resources and technology to create superior products and services, thereby contributing to a better global society. Under this philosophy Samsung has adopted a sport-based strategy in building its brand. The multinational consumer electronics firm acknowledges the fundamental role played by sport and by the Olympic Games as a promoter of its brand. Vice president of corporate communication at Samsung, Il- Hyung -Chang, rationalizes the important role of sport sponsorship by stating" sports sponsorship is a strategy that fits well within our operations at Samsung.its an integral part of our companys philosophy". Philip and David, 2003 Entering into the TOP plan propels Samsungs sponsorship to a new era. It has an opportunity to act on the same stage with the world top brand such as Coca Cola, IBM, and Visa, which greatly enhanced its brand image. The companys active and established role in the heart of the Olympic Movement has contributed to its brand value surge in recent years. Samsungs involvement with the Olympic movement began as a local sponsor for the Seoul 1988 Olympic Games. Then it became the TOP sponsor in the wireless telecommunications equipment category for the Nagano 1998 Olympic Winter Games, Sydney 2000 Olympic Games, Salt Lake 2002 Olympic Winter Games and Athens 2004 Olympic Games. This status as a global partner in the wireless telecommunications equipment category will be continuing in the Torino 2006 Olympic Winter Games and Beijing 2008 Olympic Games. Samsung have agreed to pay the huge amount for corporate sponsorship because they recognize the vital importance of sports marketing on their bottom line. The TOP plan helped Samsung increase its brand awareness and enhance market position considerably. Compared to the results of the survey held before the Sydney Olympic Games, the amount of consumers that became aware that Samsung Electronics was one of the 9 sponsors of the Games approximately tripled. Unaided awareness of Samsungs Olympic sponsorship was 6.0%, it placed 2nd after Coca Cola. Samsung want to accomplish two goals with all its sponsorship efforts. The first goal is to build brand awareness especially create higher level of awareness than its rival Sony. The effectiveness of Samsungs Sponsorship was shown at the ATHENS 2004 Olympic Games

which had a positive impact on brand awareness, with an increase from 57% to 62%.(Samsung steps up Olympics marketing campaign, 2004) The second goal is to enhance the worldwide imagery and attitudes towards its brand. Samsung considered its commitment to the Olympic Movement is a key element in positioning and strategy. It contributes to the success of the Olympic Games and at the same time enhances Samsung brand image and its market position. Samsung built its brand through sponsor Olympic Games in the following ways. Samsung mobilized the organization for brand building. Both the process and the result of a brandbuilding effort often have a key payoff internally to employees, as well as externally to consumers. Samsung sponsored ATHENS 2004 Olympic Torch Relay, which was the first truly journey of Olympic flame. 1,900 torchbearers were selected from over 40 countries including Samsung s employees. They received emotional benefits from pride in being associated with the sponsorship and have a direct link to the Olympic activities.

Samsung provided an experience to the consumers:

For example as a part of Samsungs brand presence program it set up Olympic Rendezvous @Samsung, a 1,064 square meter entertainment complex, located within the Athens Olympic Sports Complex, which was a central gathering place for athletes, their families, and the spectators coming to the Games. The OR@S provided a wide range of activities. For instance consumers were provided with the opportunity to try out Samsungs revolutionary products for themselves. Fans are able to meet their national heroes, enjoy musical performances and special laser shows. During the Games Samsung has hosted a series of "National Days", which celebrate the many cultures of Olympic nations. In addition, OR@S provided free telephone and on-line services. Over 6,000 athletes from a huge number of the 202 competing countries have based themselves here and taken time out from the pressure of the Games to make contact with home.(Over 6,000 Olympic competitors make use of special facilities to contact loved ones, 2004). At the same time they are experiencing the convenience Samsung brought to them. Samsung used Olympic Games as a platform to demonstrate new products and technology. The most powerful way to introduce a new product and technology is by publicity. It is not only cost-effective but also more credible. Samsung provided its latest wireless communications technology during the Sydney 2000 Olympic Game. Focusing on the future of wireless communications, Samsung launched futuristic products such as the mobile phone watch, the PDA-phone, the digital camera cum mobile phone, the MP3 mobile phone and the its latest model of 3Gmobile phone. In addition, visitors are able to experience the future by experimenting with the various digital knick-knacks developed and on display by Samsung Electronics. Samsung boost its brand awareness at Olympic Games. Samsungs dedication in Olympic Games brings great success in elevating itsbrand awareness. Samsung's sponsorship of the Sydney Olympic Game in2000 raised awareness of the brand by 5% to 16.2 %. The awareness rise leaded to the sales surge. The first year after the Sydney 2000Olympic Games, sales of the telecommunications products have increased by 44%. Four years later in Athens, its brand

awareness was raised to62%. (Coca-cola and Samsung present the first international Athens2004 Olympic Torch Relay, 2003)Develop brand association. The Olympic Games as the worlds biggest sports event requires enormous and sophisticated communication system. Samsung, an official sponsor in wireless communication equipment presented the Wireless Olympic Works (WOW), a communications system to support and guarantee the smooth and efficient running of the event. It also provided wireless communication devices to athletes, officials, media, staff and volunteers. Samsungs expertise in digital wireless communications equipment played a vital role in contributing to the successful operation of the Games. Besides the functional association, it enhanced its market leader image and revealed its status of a global organization through the prestigious Olympic Games.

Technology innovation:
Samsung recognized that digital is the future developing aspect of consumer electronics. They regard the digital age as having both incalculable potential and risks. It's a time of intense competition-fortunes can be made or lost in the blink of an eye. Samsung took this challenge as an opportunity. They switched their core competitive power from mass manufacture to its own brand which based on digital technology. It is well positioned as one of the world's recognized leaders in digital technology and eventually become the worlds top innovative company in technology. It starts to provide consumers with innovative and cutting edge products and rapidly become a huge player in electronics field competing toe to toe with another magnate Sony. Samsung launched an industry design revolution in order to get rid of its image of imitator. It employed world top designers to expand their thought and keep track on the world highest level. It achieved most of the Award of American Industry Design which is the most importantaward in industry design area on the global basis. Its brand was recognized by the consumers and specialists. The technology breakthroughs enhanced Samsungs brand image of young, fashionable and strong function.