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Jones & Cadburies - Chipsmerken in Cenetland

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Case Jones & Cadburies

Marketing Strategy Research

Team number: 069

Hamed Hasanzadah 313118

Niels de Groot 314968

Table of contents

Introduction 2

1. Brand attitude for Tilt 3

1.1 Correlations 3

1.2 Dummy variable 3

1.3 Regression 4

1.3.1 Single regression 4

1.3.2 Full regression 4

2. The Conjoint Study 6

3. Market segmentation 7

4. Description of segments 9

4.1 Segment 1 9

4.2 Segment 2 10

4.3 Segment 3 10

4.4 Conclusion 11

5. Soft drink composition 12

6. Future conjoint projects 14

Executive summary 15

Appendix 16

A. Plots of most significant correlations 16

B. Dummy variables 17

C. Plots of residuals 18

D. Conjoint study 19

E. Crosstabs of Ward and Average Linkage Methods 20

F. Description of segments 21

Introduction

Jones & Cadburies is a manufacturer of soft drinks which is founded in 1967 by Eric Jones and William Cadburies. They built a small factory for the production of soft drinks. Since then the factory has prospered, multiple factories have been opened and Jones & Cadburies has become the fourth largest seller of soft drinks in the country. To compete in the soft drink branch, marketing is becoming more important for the companies. Soft drink marketing is characterized by heavy investment in advertising, selling and promotion to and through bottlers to retail outlets, and consumer price discounting. Jones & Cadburies executives met to assess future growth and profit opportunities for its key soft drink branch in the category. The meeting was prompted by a sudden but serious decline in market share of their key brand (Tilt). The first point on the agenda was to discuss the entry of a new competitor, named Zoëcondra. This new competitor launched a massive advertising campaign for a innovative new soft drink, and retailers swiftly adopted their focal brand named "Crush". To counter the threats posed by the Crush brand, the executives wanted to obtain more insights in the soft drinks preferences of consumers by means of a survey. The executives came up with the following model of soft drink consumption behavior, with variables that they considered to be important for the attitudes toward Tilt and Crush, and the choice between Tilt and Crush.

To investigate this research the marketing manager composes a conceptual model, which visualize the links between the variables which will be used.

Figure 1: Conceptual Framework

The conceptual model (Figure1) includes socio-demographics, and draws on key constructs from consumer behavior. Health consciousness refers to the extent which consumers pay attention to health when shopping for products. Price sensitivity is a concern for paying lower prices, subject to some quality constraint. Susceptibility to normative influence refers to the degree to which a consumer is concerned about adhering to group norms regarding what products or brands to buy. To measure the variables, a survey was administered among people who know the Tilt soft drinks and who also consumed Crush. In the next six chapters we will test a couple of issues. First we will test which consumers have a favorable attitude toward Tilt, and which consumers have an unfavorable attitude. After this, we will use Conjoint based on SPSS syntax to analyze the rankings of the product concepts made by consumers. In the third chapter we will investigate whether there is preference heterogeneity in the market, by determining the number and composition of market segments. Next we will investigate whether the segments have different profiles, and what characterizes the segments. After this, we will advise the marketing manager on how to compose the new soft drink, based on the results of conjoint analysis and the segmentation study. At last we will advise the marketing manager on how to structure future conjoint projects.

1. Brand attitude for Tilt

In the first chapter of this case the marketing manager wants to know which consumers have a favorable attitude toward Tilt, and which consumers have an unfavorable attitude. He feels that a joint analysis of the individual difference is correct, and he wonders whether different results would obtain under such an analysis. The individual differences that we will use are gender, age, education, income, and a number of psychometric statements tapping normative influence, health consciousness and price sensitivity.

1.1 Correlations

As first, it is important for us to look at the correlations among the variables that we mentioned above and plot the data of the brand attitude for Tilt. Most of the variables that describe the individual differences show a weak correlation with brand attitude. There is only a strong correlation between health consciousness and brand attitude for Tilt (r=-.647), which is negative. This means how more a respondent is conscious about his or her health, less his brand attitude is for Tilt. This can be declared by the fact that soft drinks are mostly seen as unhealthy. So respondents associates the brand Tilt, a brand of the soft drink manufacturer Jones & Cadburies, with an unhealthy product. Therefore the attitude towards the brand Tilt is negative for health conscious people.

Another remarkable correlation that we see, is the medium correlation between

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