Assignment 3.1 – Consumer Insight 2

Group 1: Đình Giang, Ngọc Khánh, Khánh Thy

Brands use “functional benefits” of their products to serve this level of insight

(basic needs of consumers). If a brand only serves this level, it just comes to

“Like it” stage on Brand love curve when consumers are satisfied with the

function of products. If there are many brands serve the same functional need,

consumers are easy to choose different brands and uncertain to stick to one

particular brand. In this case, if a brand wants to win, they have to maximize

quality of their products to compete with other brands.

Ex: With high quality paper, nice book-cover, beautiful organized text and

pictures in every book, and wonderful content, books of TGM Corporation

are out-standing in self-help book category, compete with Thai Ha Book,

Alpha Book,... which serve the same functional needs: “information about self

development”.

3 LEVELS OF CONSUMER INSIGHT

FUNCTIONAL NEED Basic needs„

EMOTIONAL NEED Fear/Hope/Pleasure/Self-confident„

ASPIRATIONAL NEED Faith/Belief/Ritual/Dream/Desire„

1. FUNCTIONAL NEED Brands create many experiences using “emotional benefits”

to satisfy consumers’ emotional need and tug to their heart..

If a brand serve successfully this level of consumers’ insight,

consumers will start to love this brand because it is suitable

with their lifestyle. At that time, a brand moves to “Love it”

stage on Brand love curve.

Ex: The Maker Concept Coffee Shop

(https://www.facebook.com/themakerconcept/) sells place

for creativity, do not sell coffee only. With proposition “where

IDEAS are shared”, The Maker Concept inspires consumers

to feel more creative while drinking coffee at this place.

There are few brands who serve successfully this level of insight. If a brand

successfully tackles this level of insight, they will have loyal fans who

become outspoken ambassadors for brand and never switch to other

brands. A brand which becomes a part of consumers’ life will move to

“my beloved brand” stage on Brand love curve.

Ex: Liuxury Store (https://www.facebook.com/ThegemDL/) sells “belief

stones” by exploiting the consumers’ aspirational needs about their

dream of better life, their belief of faith, their fear of destiny. I get

acquainted with the girl who owns this business. She tells us about

surprising monthly revenue in spite of the fact that fanpage does not have

lots of fans. By satisfying successfully this level of insight, this shop has more

and more loyal consumers who bring out enormous profit although it is just

on the early stage.

2. EMOTIONAL NEED

3. ASPIRATIONAL NEED

EXAMPLE ZERO: OMO EXAMPLE 1: PHUC LONG

Kids clothes get dirty

They can’t help it when they are

playing

They are thinking about their games

with their friends, not their clothes

By playing they are building

friendship and learning new things

I will feel free to let my kids get dirty

and learn something

why

why

why is that importan

so what

FUNCTIONAL NEED

What for

Unleash my kid’s potential ASPIRATIONAL NEED

FUNCTIONAL NEED: Stain removal

EMOTIONAL NEED: Mom feels free to let their

kids play and learn

ASPIRATIONAL NEED: Unleash kids’ potential

EMOTIONAL NEED

Bra

nd

will

fin

d t

he

mo

st s

uita

ble

laye

r w

hic

h c

an

le

ad

to

be

st o

pp

ort

un

itie

s

I like to go to famous coffee shops

I want to choose the best quality cup of

coffee for me

I believe that the best just come from

great passion

I think drinking a passionate cofee

brand will support and encourage me

to pursue my strong passion in my life

I strongly believe that “living with

aspirational passion” is an ideal for

worth-living life

why

why

why is that importan

FUNCTIONAL NEED

ASPIRATIONAL NEED

EMOTIONAL NEED

why is that importan

FUNCTIONAL NEED: Coffee shop provides the best

quality cups of coffee

EMOTIONAL NEED: Consumers are inspired to

continue on the road pursuing my strong passion in life

ASPIRATIONAL NEED: Living with aspirational passion

Create solutions in 3 levels Create solutions in 3 levels

Brand Essence:

Great Passion,

Best Quality

EXAMPLE 2: EVIAN EXAMPLE 3: HARLEY DAVIDSON

When I get older, I’m more careful in

choosing my food and beverage

I care much about my health when I get

older. I want to consume pure thing,

especially pure water

I believe something “pure” will bring

healthiness to my body inside

I want my body to be young. I dont

want to be seen as old person.

I desire to be ageless

why

why

why is that importan

FUNCTIONAL NEED

ASPIRATIONAL NEED

FUNCTIONAL NEED: Pure, that brings your

healthiness to your body inside

EMOTIONAL NEED: Live young

ASPIRATIONAL NEED: I am ageless

EMOTIONAL NEED

Bra

nd

will

fin

d t

he

mo

st s

uita

ble

laye

r w

hic

h c

an

le

ad

to

be

st o

pp

ort

un

itie

s

I want a large motorcycle

I want to be seen as an American bad

guys.

I admire them and want to live with

their lifestyle

They feel free to do what they want.

They don’t scare anything.

I dream of becoming a rebel with

freedom.

why

why

FUNCTIONAL NEED

ASPIRATIONAL NEED

EMOTIONAL NEED

Why do you like that

FUNCTIONAL NEED: A large motorcycle

EMOTIONAL NEED: I want to be seen as an American

bad guys

ASPIRATIONAL NEED: Becoming a rebel with freedom

Create solutions in 3 levels Create solutions in 3 levels

Brand Essence:

Liberation

why is that importan

why is that importan

Finding information about what people think and do (attitudes and behaviors) to find key fact/truth of

target consumer.

Then, pick out some fact that you feel potential to further deepen

4 step for finding Consumer Insight

To finding consumer insight, the first thing you need to define is Who is your Target Consumer (TC)?

TC is the group that brand can MATTER the most (sometimes can be who already CARE the most)

Start from a fact/truth in step 2 and asking “WHY” to develop understanding why TC do it.

To gain deep understanding about TC, you need:

- Don’t just ask why, you need keep asking these questions such as Why is that important? What if? Which

mean? So what?

- Create a conversation with the consumer and put them in a state described than just as you asked, they

answered

When to stop ask why? What is the exploitable insight?

Exploitable Insight is the answer to the question “What is the only thing that consumer need/want/desire?”

and your business/brand can satisfy that need in new ways and competitive.

How do you know you’ve got the insight of providing a competitive advantage?

It should appear: fresh, enduring (fundamentally true), relevant to the TC, exciting (potential to execution),

call to action and only your business/brand can satisfy that

You can stop ask “why” when you found this.

STEP 4

Insight

STEP 3

Understanding

STEP 2

Get fact

STEP 1: Define

Target Consumer

Step 2: Get fact

Step 1: Define Target Consumer

Step 3: Understanding

Step 4: Insight

- Male, 18-25

- Urban

- Attitude: want to be seen as fashionable guy.

- Behavior: While shopping, 86% target consumers carefully watch the

price before make buying decision.

I have to choose carefully clothes that are not only suitable to my

income but also fashionable.

As a young men who love fashion but don’t have much money, I want

clothes that are not only suitable to my income but also fashionable.

CATSASHOP

Thời trang nam giá rẻ

- Care about fashion

- Income: B, C

EXAMPLE

WHY?

Less income prevents me from spending lots of money for clothes, in

spite of the fact that I love fashion

So what?

Which mean?

good

insight

Good insight for Adverting Idea is based on insight for brand

and creates Brand advantage in relevant social context.

Both good brand insight and advertising insight

need 4 key elements in the right side.

But, the difference between Brand Idea and

Advertising Idea makes the difference between

Good Insight for Brand Idea and Good Insight for

Advertising Idea.

Used in a long-term (several years and longer),

create competitive advantage and suitable

Used in sort-term (several months), based on the Brand Idea

and related social context

Good insight for Brand creates Brand advantage

and sustainable in long-term

Brand insight: Young people admire the

talent and self-belief of sporting heroes.

Wearing the same gear is a way of taping

into their energy and supporting their own

self-belief

Fundamental truth

Category specific

Deep emotional drivers

Person (I, Me)

BRAND IDEA ADVERTISING IDEA

Campaign “Find your greatness” (https://www.youtube.com/watch?v=WYP9AGtLvRg)

of Nike with a powerful message to inspire anyone who wants to achieve their own

moment of greatness in sport: Working out is good for all of us, no matter what your own personal goals are. We don’t have to push to win a gold medal to be motivated to get

out there and run. This campaign was launched just as the world focuses on the best of

the best: Olympic event.

Communication Insight: I don’t try my best in sports to achieve amazing goals because

I believe that “greatness” is a special gift for every superstar athlete, not just for me.

Brand insight: I want to enjoy a traditional

cup of coffee that are original and

characterizing for Vietnam because I always

respect and proud of timeless value of my

country.

Campaign “Vinacafe – Cup of love” was launched in Tet 2014 which is a special

occasion of Vietnam when family members gather together and show love to each

other.

Communication Insight: As a Vietnamese young people, I respect family love. I truly

love and respect my fathers and mothers but feel shy and embarrassed to say “love

message” to them.

4 steps of Marketing Process

1. Situation

Analysis

2. Marketing

Strategy

3. Marketing Mix

Decisions

4. Implementation

& Control

1. SITUATION ANALYSIS Firms need to do market research and analyze the external

and internal environment (macro & micro environment) to

identify opportunities to satisfy unfulfilled consumer

needs.

Here are some frameworks that support to situation analysis:

_ 5C analysis – Company, Consumers, Competitors, Climate.

Company covers internal situation and the rest external

situation.

_ PEST analysis – political, economic, social and

technological.

_ SWOT analysis – Strength, weaknesses, opportunity and

threat.

3. MARKETING MIX DECISIONS

These 4Ps are parameters that the marketing manager can control, subject to the internal

and external constraints of the marketing environment. The goal is to make decision that

centre the 4Ps on the Consumers in the target market in order to create perceived value

and generate a positive response.

Decisions fall into 4 controllable categories. To our group, those depend on consumer

insight to penatrating product catching consumer eyes and convince them to use.

1. Product development – specifying, designing, and producing the first unit of the product

2. Pricing decision (pricing strategy, volume discounts and wholesale pricing, seasonal

pricing, funding,...)

3. Place decision: (distribution channels, market coverage, inventory management,...)

4. Promotional campaign development: (promotional strategy, advertising, sales

promotion,...)

2. MARKETING STRATEGY Once you have identified the best opportunity to satisfy unfulfilled consumer needs, a marketing

strategy or a strategic plan can be developed. Marketing Strategy involves 4 things which all

need the roles of consumer insight.

1. Segmentation

Market segmentation is the identification of portions of the market that are different from one

another that allows the firm to better satisfy the needs of its potential consumer. Each segment has

it own consumer insight. By focusing on your segmentation , you can find good insight which is

relevant to your segment.

2. Targeting

Firm should make target before penetrating by considering these aspects: Size of the segment,

Growth rate of the segment, Sale potential for the firm in the segment, Expected profit margins in

the segment, Required market share to break even.

Those can be made clear by evaluating size of consumer insight: How many consumers have this

insight? How strong is the insight? Is there any other firm or category also can fulfill this consumer

insight.

3. Positioning the product within the target market

4. Value proposition to the target market

4. IMPLEMENTATION & CONTROL At this point in the process, the marketing plan has been developed and the

product has been launched.

As the market changes, marketing mix can be adjusted to

accommodate the changes either changing the advertising message or

redesign the entire product entirely.

Control makes sure that the marketing programme moves in the direction

set for it.

Sometime, consumers’ desire is influenced by society’s changes, trends,

periods of time,... and their insights also change at the same time.

Therefore, brand must be sensitive with the trends and changes in market

and consumers’ needs to revive suitable consumer insight. With new

consumer insight, brand may need to change products' structure,

packaging, promotion campaign, etc„

1. SITUATION ANALYSIS

In toothpaste industry in Vietnam, when

buying a toothpaste products,

consumers expect to receive benefits

such as: avoiding cavity, aromatic

breath, whitening and strengthening

while many people need more

benefits.

Many toothpaste brand focus on those

benefits: avoiding cavity (PS), Healthy

gum (Colgate)

Close up find out an unmet need

which hadn't been fulfilled: aromatic

breath.

Therefore, they launched Close up with

functional benefit is fresh aromatic

breath.

TAKE CLOSE UP BRAND IN VIETNAM AS 1 EXAMPLE

2. MARKETING STRATEGY

1. Segmentation:

Close up choose young people are their segment.

2. Targeting:

13-24 years old, social class ABC single without kids

Brush 2X a day, and demand long lasting fresh breath and

white teeth to gain extra confidence

Close up find out an insight of youth when using

toothpaste: I brush my teeth not only because I want

healthy teeth but also want to have fresh breath so I

can be confident to communicate with other people.

3. Proposition: “ Hơi thở thơm mát, tự tin gần nhau hơn'

In Maslow Need, Close up satisfies social need: “I want to

be loved”.

Close up gives confidence in those very “up close and

personal’ situation”.

Couples with bright smiles in very “close” situations are

featured on the packaging, and commercials depicted

youthful adults blowing kisses at each other.

3. MARKETING MIX DECISIONS

1. Product:

Close up gel uses silica as its base. Silica

is considered a more efficient abrasive

and an ingredient that’s non-reactive

to other elements, in the formulation-

like flavours or actives.

2. Place:

Close up is easily available at every

retail store and super store where

young people can easily go shopping.

Mainly it appeals more to youngsters,

teenagers.

3. Price: suitable to young people.

4. Promotion:

Close up advertisements are mụch

awaited for they paint a beautiful

world of fun and youthfulness, free of

day-to-way worries. Close up

advertising is the all-song, all-dance,

which reflect young spirit. All ads are

suitable to lifestyle and insights of their

target consumers.

TAKE CLOSE UP BRAND IN VIETNAM AS 1 EXAMPLE

4. IMPLEMENTATION & CONTROL

In 2014, Close up communicated that their product have 2 functional

benefit: aromatic fresh breath and whitening. But they still focused on fresh

aromatic breath.

https://www.youtube.com/watch?v=FUC9MucAoXc

In 2015, Close up product launched Diamond attraction with instant whitening function and only focused that function.

https://www.youtube.com/watch?v=p_Bx99NKdbA

Why did they do so?

Consumer change - Brand change

When the need for basic commodities such as tooth, decay resistant,

fragrant mouth are met, the consumer tends to take up a new demand: a

quick white teeth with toothpaste (unmeet need that other brands have

not met)

Why Close up suited to do this?

So far, Close ups have been talking story "confidently closer thank to fresh

breath" and elements "white teeth" are also a factor that help consumer

be confident to be together.

And then, We think brand positioning of close up changed to "A Catalyst

(white teeth, fragrant mouth) to get closer," instead of just talking about

the story "Fresh breath to get closer“.

All activities are based on consumer understanding to help brand is chosen

by target consumers.

Assignment 3.1 – Consumer Insight 2

Group 1: Đình Giang, Ngọc Khánh, Khánh Thy

THANK YOU