Research Proposal on "Red Bull Energy Candy Consumer Behavior Issues"

Research Proposal 8 pages (2072 words) Sources: 8 Style: MLA

[EXCERPT] . . . .

Red Bull Energy Candy

Consumer Behavior Issues

The Red Bull Energy Candy is especially designed for active individuals, with very active lifestyles, individuals that need an energy boost but lack the time or comfort of having an energy beverage. The new energy candy is designed as a more comfortable alternative to classic energy drinks.

The modern marketing concept starts from the premises that any economic activity must be directed towards satisfying customers' needs with maximum efficiency. Consumer behavior is a component of the human economic behavior. As a result of these interferences and determinations the consumer behavior was defined by specialists in numerous manners, but none of the definitions was universally accepted.

The evolution of approaches towards consumer behavior is influenced by the accomplishments obtained on anthropologic, sociologic, psychological, and economic fields (Britt, 1970). In accordance with other approaches, consumer behavior is considered to be an output, a result of certain inputs, received, evaluated, and processed by individuals (Kotler, 1969).

Basically, consumer behavior is consisted of actions, attitudes, and decisions of consumers regarding the use of income for purchasing goods, services, or for savings (Myers & Reynolds, 1967).

The study of consumer behavior is the central piece around which the marketing strategy of the product is developed. A proper understanding of the consumer behavior usually leads to a suitable marketing strategy that is able to lead to the established level of sales volume.

Level of category involvement in the decision making process

The main behavioral models that affect customers' decision in relation to their involvement include:

High involvement: learn -- feel -- do. It is based on cognitive information processing

Low involvement: learn -- do -- feel. It is based on behavioral learning processes

Experiential: feel -- do -- learn. It is based on hedonic consumption

In the case of the new energy candy, it is expected that consumers will act upon the experiential model. This is mainly the case with new products. People want to try new products just because they are new, they represent a new experience. It means the new product can provide them new effects or information.

Consumer product category knowledge

Consumers are very likely to associate the Red Bull Energy Candy with the Red Bull Energy Drink. This is why they already benefit from previous knowledge regarding the new product. There are little technical issues that can be related to this kind of product. This makes it easier for the company to market this product and to gain rapid market share.

Even potential consumers that have not previously bought the Red Bull Energy Drink will easily deduct the benefits or manner of functioning of the new energy candy. In other words, everyone knows what an energy candy is.

Consumer information search strategy

Consumers' information search represents, or should represent the solution to the problem, matter, issue that concerns the consumer and that needs to be resolved. In this case, the problem is represented by the lack of physical and mental energy in certain conditions or the need energy surplus at certain moments.

In general, consumers conduct both internal and external search when deciding whether to buy the product or not, or when deciding upon a series of alternatives. This is also the case here. On internal level, consumers search for information they previously gathered from different sources, intentionally or not on the respective product. For example, most consumers have probably heard of Red Bull Energy Drink from friends, colleagues or others.

On external level, consumers are able to visit the producer's website and to find out information on the product. Also, the advertising spots should present all the details about the energy candy, including its effects.

In this case, consumers' information search should probably follow this pattern:

1. Viewing the TV advertising spot for the Red Bull Energy Candy. As mentioned above, the spot should be able to provide the viewer information like: the type of product, the company that produces it, the segment of customer it addresses, ingredients, effects, competitive advantage.

2. Consulting other buyers. Most of the times, we guide our purchase choice on others' perspective on the respective product. If someone we value is impressed by the product in a positive or negative manner, we tend to follow the same behavior, being influenced by their opinion.

3. Searching for additional information on the product, like ingredients, price, places where the product can be bought from.

As mentioned above, the Red Bull Energy Candy addresses individuals with active lifestyles. Such individuals are usually part of groups composed of similar people, with common activities. This means that behaviors are likely to be common also, including the buying behavior.

Also, their need of extra energy might also be common, and so is the solution, consisting in the Red Bull Energy Candy. In other words, they can influence each other. If some of them use Red Bull Energy Candy and are satisfied with the results, the others might follow their example.

Decision making

Energy beverages are very similar. The distinction made by customers among the brands of energy drinks is made by price or by group affiliation. If friends or members of the group buy a certain brand of energy drink, the others will probably buy the same brand.

But the Red Bull Energy Candy is new on the market. The first buyers of this product are customers that buy regularly Red Bull Energy Drink. The criteria that weighs the most in making the buying decision in this case includes:

Price

Brand

Product novelty, innovation

Comfort

Perspective of friends

The price is always a matter of influence on the buying behavior, no matter what type of product is under discussion. A high price for Red Bull Energy Candy would more than likely affect sales in a negative way.

In this case, the brand matters also. Red Bull is the most prominent Energy beverages brand. This will reflect on consumers' opinion on the new energy candy. The new product will benefit from the publicity already created in consumers' minds. This grants important advantage of Red Bull Energy Candy over other prospective energy candies, produced by competitors.

The innovation of this product will probably draw a lot of curiosities and many individuals will feel the need to try this product, at least to see what effect it produces. This will allow Red Bull Energy Candy to have an impressive start that will be able to support the product in the future.

Comfort is one of the advantages that the energy candy holds over the energy drink. The Red Bull Energy Drink, just like any other energy drinks, is effective only when drank cold. But the energy candy can be consumed anytime, anywhere, it can be stored anywhere, it does not occupy a lot of space, it can be easily transported, it does not require special conditions for transportation, storage, or consumption.

Through the purchase decision, the buyer must select one of the alternatives. In this case, the alternatives that serve the same need include the energy candy, the energy drink, coffee, tea, or other alternative energetic drinks.

Most likely, in this case, buyers will focus their decision on a combination of the following criteria:

Intensity of effect

Intensity of purchasing effort and consumption effort

Price

In other words, consumers are expecting to get the maximum of effects with the minimum of efforts. The maximum of effects is translated in the energy that the consumer receives from such an energy product. The minimum of efforts is translated by a moderate price and the comfort described above.

The categories that are most likely to influence consumer's purchasing decision are represented by:

Friends

Colleagues

Family

As mentioned above, friends play a very important role in influencing others' buying decision. The Red Bull Energy Candy addresses two main segments of customers: individuals aged 15-20 and individuals aged 21-30. For these age groups, the group of friends is very important and very influential. They affect mainly the first customer segment identified here. Many buying decisions, although they may be individual, are taken at group level. In other words, friends tend to influence each other. This is also the case here.

Colleagues are a category of influence very similar to that of friends, discussed above. They most affect the second customer segment identified above. This is because people with similar activities and lifestyles tend to have similar needs, which obviously are resolved by the same products.

The family can also play an important role in the buying decision here. But the role is a coercive one, compared to the role of friends of colleagues. The Red Bull Energy Candy is not recommended for young children, below 15 years of age. In such cases, family members can and should oppose the buying decision.

Attitudes

Buyers' system of attitudes is consisted of cognition, affect, and behavioral intentions (Ripley, 2009). The affect represents how consumers feel about the product. In this case, it is likely that the potential buyers are curious about the new energy candy. They… READ MORE

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