Online Tutoring on Consumer Behavior
Introduction:
The report entails that how a campaign or an advertisement aims to change consumer behavior through different market tactics. The advertisement is about Nescafe ‘instant connections’ which broadcasts how a simple market tactic changes the behavior of a consumer instantly. Consumer behavior includes an analyzation of a collection of consumers’ desires, interests and wishes to buy a product (Borden, 1964 as cited in Hofmeister, p. 401, 2013). This campaign has targeted that population who has a large intake of coffee a day so it was easy for the enterprise to make their product seen by the masses. The report consists of different sections; the second section gives the explanation that how this campaign is relevant to consumer behavior, the third section demonstrates the background of the industry which entails the company name, industry name, advertisement objectives, and major competitors, the fourth section entails the analysis of the segmentation variables and the last section includes references.
Selection and Justification:
The campaign which filmed the busy street of Berlin has hidden cameras on both sides of the road. The individual waiting on both sides of the street had to press the button which looked like an ordinary crossing button on which push together was written. The individuals standing on either side of the road had to press the button together at the same time and both were given a freshly brewed cup of Nescafe by the vending machines (Nestle, 2015). The advertisement by Nescafe mainly targets those citizens whose intake of coffee is a lot in comparison to different nations as well as it also relates to the changes in consumer behavior by disguising the pedestrian button with a vending machine. As people pushed the button together, they were rewarded with a cup of coffee and also could cross the street while socially connecting to the other person, people noticed their surroundings. Nestle has always made advertisements that will attract consumers in buying their products and this market tactic has always been successful.
Product Type:
The product of the advertisement is a hot beverage, which is, consumed locally all around the world. Nescafe is a coffee brand that is commonly known. This comes in different flavors and types like instant coffee, Original 3 in 1, Nescafe gold, etc. The flavors include Mocca, vanilla, and latte (IBIS World Report, 2018).
General Appeals:
The actors in the advertisement were strangers and the brand wanted to show that through a cup of coffee strangers can become friends instantly. Through this technique, the brand received more than a million views on Facebook and over 85,000 on YouTube (Nestle, 2015). This campaign is worth analyzing because it is the perfect example of the change in consumer behavior, how a person’s behavior leads them to a product, the people in Berlin drink many cups of coffee a day so a free cup of coffee was the best way to start their day.
Advertisement Background:
The Industry:
Nescafe is in the top tier of the coffee industry, the members of the Brazilian Coffee Institute sought nestle to find a way to conserve the vast coffee produce. After almost a decade the researcher found a way to produce a cup of coffee by adding water but preserving the quality of the coffee. Currently, over 5500 cups of Nescafe are consumed every second around the globe (Nestle, 2013)
The Company:
Presently, Nescafe is a consumer product produced by Nestle. The Parent company of Nescafe came into being in 1866 when Anglo-Swiss Condensed Milk Company was founded. The founder, Henri Nestle innovated infant supplements in 1867. After a few years, in 1905 the company then merged with Anglo-Swiss which then formed the Nestle Group, after which the company grew and produced many consumer products that are used globally (Nestle, 2016). The total revenue recorded over the last five years of the group is 400.2 million dollars annually which is considered a 1.5% increase yearly (IBIS World, 2019).
Major Competitors:
Nescafe is considered one of the largest coffee brands in the world and it is valued at a whopping 17.7 billion dollars. (Forbes, 2012 as cited in MarketLine, 2013). The major competitors of Nescafe in Australia are L’OR Espresso, Vittoria, Café Aurora as well as tea brands like Lipton and Choysa (IBIS World Report, 2018). According to Bhasin (2019), the global competitors are Starbucks, Dunkin Donuts and the tea substitutes like Bru and Tata.
Advertisement Objectives:
The motive behind this campaign by Nescafe was that the company wanted to prove that coffee can bring strangers closer and can instantly connect. This campaign was successful as by the end of the day, it connected more than 600 people over a cup of coffee (Nestle, 2015). The brand is pleased to have sparked numerous social connections that would not have occurred any other day. A cup of Nescafe coffee is an expected way to trigger social interactions and the brand wanted this to bring to everyday life in an unpredicted and pleasant way (Michael Chrisment Head of Marketing, 2015 as cited in Nestle, 2015).
Analysis of Segmentation variables:
Segmentation means that dividing a market into 4 segment variables so that it is easy for the companies to produce a good according to the population.
There are 4 segmentation variables that are
- Demographic
- Geographic
- Psychographic
- Behavioral
Previously, Nescafe has used these 4 segment variables persistently in its campaigns, for example for Geographic variable, Nescafe trades its products according to the region as for the Southern part of the nation the population consumes roasted and strong coffee whereas in Northern the instant coffee mixture is used widely. For Demographic variables, Nescafe focuses on the ages, income, and status of the people. The coffee brand is easily available to all classes of society. Psychographic variables are associated with personality characteristics like success, failure, achievement, etc. and Behavioral variables are associated with knowledge, attitude, interest and how a consumer is attracted to this product through an advertisement.
The ‘Nescafe Instant Connection’ has Geographical and Behavioral segments. The reason why this campaign has these two segments is that:
- Geographical perspective: this advertisement was filmed in Berlin, Germany; the population consumes coffee every morning before going to work and it is considered to be the loneliest country in the world as over there people are not that friendly (Joseph, 2015). According to CBI (2019), the Germans are the largest consumers of coffee in Europe, 6.5 kilograms of coffee was consumed per person in 2015. Germany is considered to be the third-largest coffee market place around the world (Mordor Intelligence, 2018). These are the reason the brand thought of filming the advertisement in the capital city of Germany which was also successful.
- Behavioral perspective: this segment includes variables like the attitude and interest of a person. This campaign had the aim to target the behavior of the people as when the person from one vending machine saw the face of another person standing right across the street; they smiled, some also waved at each other and many conversed which sparked friendships. This brought a change in individuals’ attitudes and behavior and they had a good start to their day which will keep them motivated for the rest of the day. As mentioned in the Advertisement objective, the brand wanted to trigger a social connection between two people in an unexpected way which would automatically change the behavior of the consumers and that’s exactly what happened people who were busy on their phone not paying attention were startled as they saw a stranger on the screen which brought a smile to their faces and made them happy.
Analysis of appeal used:
Appeals are used in advertising to influence the way a consumer views themselves and to identify if there are any benefits of the product or service that is being advertised. Appeals aim to create a positive image for those who use the product or service. They are a major factor that advertisers consider when making an advertisement. There are many types of advertising appeals that are used to influence a consumer and their purchasing decisions. Some of these appeals include fear, humor, violence, musical, rational and emotional. The appeals used in the Nescafe advertisement are musical and emotional appeals. The ad is titled ‘instant connections’ because it shows how a fresh cup of coffee can create an instant connection between people. This impacts a consumer’s emotions because people who love coffee feel so happy after they have drunk it. Coffee makes people feel awake and relaxed especially if they are having a rough day, it helps boosts their mood. Coffee is considered as a hedonic good when consumer satisfaction is linked to the multisensory experience and enjoyment. It is also a utilitarian good when consumers expect something after consumption such as stimulation to occur. In the ad we see the people react positively to the hidden coffee machine because they were not expecting it, but it was a good surprise because they are rewarded with instant hot coffee and they are encouraged to connect with the other person on the screen. We can also see from their facial reaction that it made their day better because before walking towards the machine they had a normal face but that turned into a big smile when they saw their face as well as the other people on the video, so it is an appeal to their emotions. The ad also chose to use music as an appeal. The music that plays in the background of the ad makes you feel happy and just puts you in a good mood while watching it. These appeals influence the target consumer segments because research has been done and we see that the citizens would enjoy a coffee before they start their busy day. They do this by making the target audience curious about what would happen when they press the button.
Identification and discussion of advertisement limitations:
Nescafe has created many advertisements in the past that have been very influential to consumers, just like their ‘instant connections’ ad. Although most ads such as the Nescafe one usually has a positive impact on the consumers, they also have limitations or consumer behavior issues that are evident. For the Nescafe ad, a consumer behavior issue could be the fact that most people or coffee drinkers prefer ‘real’ coffee over ‘instant’ coffee that is made quick from a coffee machine. The consumption of coffee is increasing because it has become very popular and it is one of the most consumed beverages worldwide (IBIS World Report, 2017). Regular coffee drinkers enjoy a fresh cup of coffee almost every day and may even have a favorite place they go to just to get their coffee made because they know it how it tastes. With instant coffee it doesn’t always taste as amazing as coffee from a café or coffee shop. At a coffee shop the customers can request how they would like their coffee to be made whereas with a coffee machine that makes instant coffee they don’t get that option to customize. The only time someone is willing to have instant coffee is either if they are in a rush and have no other option or if it is free. Consumers make decisions based on their needs and wants and information they know about the product and service. The ad hasn’t addressed this issue promptly and they should in the future because coffee drinkers know the difference between good and bad coffee.
Discussion of improvements to the ad:
The Nescafe ‘instant connections’ ad has resulted in a mostly positive outcome. However, it could use some improvements to make it better. Using technology is a smart and easy way to connect people but Nescafe aims to show how coffee can also be the perfect way to connect people all over the world. The Nescafe campaign does this in a very creative way by adding a hidden coffee machine so not only do the strangers in the ad get to meet and connect with new people, but they get a coffee as well. As identified in the previous section an issue with this ad is that not everyone enjoys instant coffee, they would much rather ‘real’ coffee. So, a way they could improve this is by still utilizing the technology aspect but maybe have the option of having instant coffee or getting their coffee made. This can be achieved by having something like coffee stall near the pedestrian crossing so that people can walk up to it and get coffee made for them as well as having the option of having the instant coffee. For consumers to know about the stall, signs could be placed above or near the designed control boxes that lets people know about the stall when they go to press the button and they are able to go check out the stall. Another way they could reduce this issue is by opening a coffee shop near the area where it gets busy and encourage people to get coffee from them and they will get special offers and discounts if they keep coming back. This will increase the number of regular customers coming into the coffee shop. This campaign could be a way for them to expand their company.
Conclusion:
Overall, Nescafe’s ad about creating instant connections has been a successful campaign. It has targeted a specific group of people who love coffee. It uses emotional and music appeals to influence them as consumers. Although there are some limitations and consumer behavioral issues, there are many strategies and ideas to use that will improve this problem. Nescafe has done an excellent job with this campaign because they got really good results from it.
