Consumer Behavior Group Assignment (Mkt201).Pdf

Make research and analyze the current marketing strategy and some suggestions...3 B.. From previous research of some researchers and combine the knowledge knew about consumer behavior, w

LECTURER: TRAN DIEU THUY

* Class : MKT1405 – Group 5

* Member of team:

Đ ng T ặ ườ ng Vy

Tr ươ ng Th Vân Anh ị

Trâần Th Thu Trang ị

Nguyễễn Vi t Bách ệ

Đ ng Minh Trang ặ

Consumer Behavior

Group Assignment (MKT201)

Topic: Make a market research about the consumer behavior

on one product Analyze the current 4Ps marketing strategy and make some suggestions.

A TABLE OF CONTEN

A INTRODUCTION 2

1 Short profile of that product 2

2 Target customer and target market 2

3 Make research and analyze the current marketing strategy and some suggestions 3

B ANALYSIS OF THE CURRENT 4PS MARKETING STRATEGY 4

1 Secondary research 4

a Product 4

b Price 5

c Promotion 6

d Place 7

2 Primary research 7

C SUGGESTIONS AND CONCLUSION 11

a Suggestions 11

b Conclusion 11

D REFERENCES 11

A INTRODUCTION

1 Short profile of that product.

Crocs is a brand of unique clogs that is becoming extremely popular with the young generation with the convenience and the attributes of its animal logo: the crocodile Crocs entered the market in the 2000s but now it stands out as one of its market share competitors with big brands such as Sketcher’s, Deckers, Wolverine World Wide, etc The products of Crocs are boots, sneakers, sandals, clogs and jibbitz (the fashion accessories) Crocs shot to fame with the debut

of its now-iconic resin-based clog in 2002 Fifteen years later, the company has evolved its design and brand to allow for a future focusing on its strengths, styles and values

Crocs proved to be a new category of footwear Constructed from a proprietary closed-cell resin material called Croslite (which is neither plastic nor rubber), they are soft, lightweight and odor-resistant, and their soles conform to the shape of a wearer’s foot They were originally designed as boating shoes, but many of whom swore Crocs were the most comfortable shoes It can be easy to take them out into the streets, to the beach and to many other casual occasions They also designed "jibbitz" to increase the uniqueness of the product "Jibbitz" is decorations that can be clipped to the ventilation holes in the shoes These include designs, mainly aimed at children, which feature Disney characters.It is from those characteristics, "Crocs" - from a pair of ugly sandals that have attracted the attention of a number of celebrities who have made this controversial product known to so many consumers around the world and become more into a general trend for a while

It can be said that Croc is a brand success in developing the product movement to the community and they have received many great achievements From previous research of some researchers and combine the knowledge knew about consumer behavior, we want to apply it in research by going into analysis into how Crocs sandals products affect consumer behavior, the 4Ps strategy currently and give some suitable recommendations

2 Target customer and target market.

Crocs' biggest market goal was to become an international brand Their Crocs-branded products will be available all over the world and can be used by all types of customers Crocs use psychographic and demographic segmentation strategies with variables such as age, gender, location, marital status, and income groups so as in order to serve the changing needs of the consumers in a better way Targeting strategy is used by the companies to understand whether to have the same products for all consumers or different products for different customer groups Crocs use a differentiated targeting strategy to target customers who look for casual styled footwear, those who look for mix and personal look styles In addition, Crocs also found potential customers are medical staff and restaurant staff because of the product's anti-slip and easy-to-clean features

For the market, to present Crocs sells its products through two main marketing channels The first is to sell directly to their customers through an online website The second is to sell to wholesalers, then sell to various retailers nationwide Crocs stores follow an in-depth marketing strategy, Crocs strives to get its products into as many retailers as possible This ensures that products are available to customers easily in different regions of the country Crocs have a substantial amount of online sales with regular traffic on their websites To run its online operations, Crocs has partnered with multiple delivery service providers to provide on-time delivery Crocs followed a multi-channel distribution system that integrated online and offline stores to give customers easy access to its products

3 Make research and analyze the current marketing strategy and some suggestions.

One of the most things important a business does to drive brand recognition to customers

is the campaigns of marketing strategy According to the United Nations Refugee Agency, a campaign is critical to the success of any planned registration exercise, whether initial registration, verification or other ad hoc activity Regarding Crocs, they also design their own campaign that has made a strong impression on customers Many of their strategies up to now have been reworked for many time, which has shown the success of campaign-building in their marketing strategy

The first is the campaign "Come as you are" - Get inspired by our cast and make any Crocs style your own This campaign has been launched for the third time as of 2019 The

meaning of this campaign is to build on insight not to judge others This is a global campaign so their target is all customers around the world, not just one country The most obvious

demonstration is a 30-second video featuring global brand ambassadors, including actress, singer, songwriter and director Zooey Deschanel, along with British actress Natalie Dormer "Get inspired by the cast and make every Crocs style your own" Taking inspiration from influencers -Crocs brand ambassadors from many different countries created the perfect TVC for the brand The brand wants to understand the capabilities of its customers by sharing other people's emotions through this campaign This is a very important campaign for Crocs and it has attracted

a large number of customers

The second strategy that we want to mention here is the “Find Your Fun” campaign Created by McKinney- Crocs global record agent since April 2014 "Find Your Fun" - is Crocs' first global marketing campaign, was kicked off for the first time in 2015 The campaign is meant to encourage Crocs fans around the world to go out and find the fun that is happening at their feet Bringing their favorite Crocs, everyone will take pictures and send them back to the photo contest organizers to win the chance to have a family trip to Disney World, Florida The campaign has re-engineered a shoe clog in a variety of ways, from the classic to the more recent

in style The campaign will run in the UK, US, Germany, Japan, China and South Korea To create and launch this campaign, in 2015 Crocs spent millions of dollars on this campaign, which

is the largest marketing campaign in history since Crocs' inception Peter Nicholson, executive creative director of McKinney, which created the campaign, added: “#FindYourFun” is more than an ad campaign It's a crusade to encourage people to "find the fun" in everything they do" And as he said, turning a familiar slogan into a call to action, “Find Your Fun” has created momentum on social media to support all campaign elements, including television, digital, in addition to the family, society and experience of each customer

B ANALYSIS OF THE CURRENT 4PS MARKETING STRATEGY

1 Secondary research.

“Secondary research consists of sources of data and other information collected by others and archived in some form These sources include government reports, industry studies, archived data sets, and syndicated information services as well as the traditional books and journals found

in libraries Secondary information offers relatively quick and inexpensive answers to many

questions and is almost always the point of departure for primary research.” (Kamins & Stewart, 1993) Based on the learned knowledge and secondary resources on newspapers or the internet,

we focus on research the current 4Ps strategy of the Crocs brand including Product, Price, Promotion and Place

a Product.

Referring to Crocs we can figure out the "unique" and "strange" products The main material mostly to make a Crocs is plastic However, Crocs products are very safe, with little harm to health and the environment Therefore, the products are favored by many consumers Crocs featured with plastic strap sandal designs with a bulging head that resembled a crocodile The first Crocs shoes were made for children, so they are colorful and have little holes in the top for kids to enjoy with cartoon buttons or letters of their names, which are called jibbitz Crocs is constantly changing and developing its products After a period of development, Crocs introduced more models of men's and women's shoes for adults, conquering customers in many countries around the world with lightweight, waterproof, cool, and deodorizing materials Besides its variety designs and colors, Crocs has always focused on promoting product quality They researched and surveyed to make lightweight and comfortable shoes for the user Because of the convenience as well as bringing comfort to the user, Crocs shoes are currently very popular in the global market In Piper Jaffray’s latest semi-annual Taking Stock With Teens survey, Crocs surged in the footwear category Crocs brand is popular with many people for some following reasons: Many unique and youthful bases, croslite materials are used in the design, extracted from resin with antibacterial and deodorizing properties, compact, soft, and lightweight design for comfort, the sole is designed to be non-slip, suitable for any terrain and variety of colors and no fading Because it is plastic, it is highly water-resistant

Today, Crocs products are the dominant product, accounting for nearly half of all sales Crocs improved its supply chain management and adjusted its retail strategy, with direct sales to consumers accounting for 43% At the same time, the company continued to expand globally, with the US market now contributing nearly one-third of total sales

b Price.

Today, one of the most important pricing strategies used by businesses is to increase product prices and to cut down all possible costs to improve profitability while maintaining

prices original product Crocs went on the path of maintaining a low-cost platform to optimally manufacture its products Not only that, but Crocs also introduced a competitive pricing policy

so as not to lose customers to rival companies However, they still provide full functionality (accessories included in each Crocs sandal) and stabilize the quality of each product before it is put on the market

The next difference in Crocs' pricing strategy is that they will not provide freight support for retail customers when purchasing products Therefore, their product on the website is usually more expensive than buying in a store because shipping costs are included Crocs has always been committed to saying no to dumping, so its distributors or agents will get a profit by earning

a percentage discount when selling each product to the consumer

In Vietnam, the price of the Crocband sandals - Crocs classic, has a price of over 800,000 VND For the Crocs Literide line, the popular price is around 1,400,000 VND This is a mid-high price compared to the general level of the Vietnamese market However, this high-quality plastic product is considered a pretty good price With a pair of Crocs band sandals priced at over 800,000 VND, the cost structure will be as follows: Sales and advertising channels will be about 350,000 - 400,000 VND, accounting for nearly 43.4%, Production costs (including raw materials) are 150,000 - 200,000 VND, Accounting for 20%, Taxes and fees will account for about 20% and Administrative expenses account for less than 10%

One of the modern moves of Crocs is using the pricing strategy An effective pricing strategy will stimulate high customer shopping demand Especially the Vietnamese market, consumers always tend to buy cheap, high-discounted items Crocs' annual rebate policy has partly stimulated shopping demand from Vietnamese customers, especially young generation

c Promotion.

According to John McCarvel, President and Chief Executive Officer of Crocs, the goal of promotion for Crocs is to create long-lasting relationships with customers Besides that, Crocs wants to keep a positive image of the shoes, instead of the anti-crocs association A way of promotion for Crocs is advertising on television and in magazines, which are quite different to many rivals in the market This is because they can attract a large audience through these channels They use online advertising and social media, which are cheaper due to the increasing internet usage The company has used social media like Facebook and YouTube, and magazines

such as InStyle magazine to promote its products Crocs advertises on various social media platforms, focusing on YouTube, Facebook and Twitter due to its high monthly usage Crocs has over one hundred thousand likes or followers on these pages The brand also made a deal with Twitter to launch a brand new advertising campaign Every year, they stimulate customer shopping by reducing product prices

Based on listed forms of advertising, they have created extremely innovative campaigns Such as the Find Your Fun campaign (analyzed above) to remain the iconic Crocs clog while also featuring new Crocs styles, notably for families and women This campaign depicts a Clog shoe

in many different ways Crocs have spent millions of dollars on this advertising and it will be increased in the future to continue connecting consumers with the company According to Terence Reilly, Chief Marketing Officer for Crocs, Find Your Fun is aimed to help more fans and consumers connect this year with their fun-loving brand and their sense of fun Crocs also created even more impactful ways to tell their product stories and let consumers find their fun, whether it’s inviting them to take a fun day or act like their favorite superhero The campaign continues to target consumers in the US, China, Germany, Japan, Korea, and the UK through a variety of channels, including broadcast, digital, print/out-of-home, social, e-commerce, and in-store

d Place.

The goal of Crocs is to become an international brand, so their products are available in most countries Distribution channels include distributors and some stores in some shopping malls in the countries Consumers can directly transact through this retail channel Besides, they also have a global commercial website, customers can order directly and use international transactions Because there are no major distribution channels in some countries, the problems of product return with customers are through several stores receiving and processing Crocs stores follow an intensive marketing strategy, Crocs always tries their best to bring its products into as many retailers as possible This ensures the product reaches customers easily in all regions of the country

This sales strategy of Crocs is very smart They will not incur some fixed costs such as space rental, taxes, customer service staff salary, All these matters will be borne by the downline distributor Crocs only supply the product and provide them with some necessary

support when building a facility or building a new distributor However, since Crocs' products had so many specialties, it is right when they followed such a strategy They save a large part of costs, solve the cost loss problem so that they can gather all resources to develop brands, and promote products in the best way

Nowadays, with the development of digital social networks, people's shopping needs not only direct shopping but also online shopping Customers' shopping behavior is also influenced

by their environment and culture The ways of building and following the current Crocs path shows their success ineffective strategy formulation

In Vietnam, Crocs’ product is distributed by General Trading Fashion One Member Company Limited, which belongs to Central Retail Corporation Some main stores are located in some shopping malls in Hanoi and Ho Chi Minh City: BigC, Vincom, Savico, About exchange products, there is only one location at No.4, 99 Lane, Cau Dien Street, Phuc Diem Ward, Bac Tu Liem District, Ha Noi Crocs downlines can sell easily and can sell at many e-commerce sites such as Shopee, Tiki Vietnamese consumers have many ways to get access to Crocs

2 Primary research.

Primary sources are the “materials on a topic upon which subsequent interpretations or studies are based, anything from firsthand documents such as poems, diaries, court records and interviews to research results generated by experiments, surveys, ethnographies and so on.” (Maxine, Christy, Daniel & John, 2010) “Primary research is any type of research that you collect yourself Conducting primary research is a useful skill to acquire as it can greatly supplement your research in secondary sources, such as journals, magazines, or books You can also use it as the focus of your writing project Primary research is an excellent skill to learn as it can be useful in a variety of settings including business, personal, and academic A good researcher knows how to use both primary and secondary sources in their writing and to integrate them in a cohesive fashion.” (Purdue Online Writing Lab, 2010)

After conducting secondary research methods and having some overview of 4PS MARKETING STRATEGY of Crocs, we also apply the primary research method to gain more insight into the market as well as the Crocs 4Ps strategy Here, the primary research method we choose here to analyze the current 4Ps marketing strategy is: setting up an online survey

questionnaire with the help of google forms Name of the survey we work on: survey a group of consumers through the selection of Crocs products in the Vietnamese market

The aims of using this method are less time consuming and lower associated costs for collecting personal data of each individual and customer We focus on brand’s feedback, the need

of customers, the idea is put forward, feedback about the color of product, how much customers willing to pay, the imitation problem There are 175 respondents which correspond to 175 observations including people living in FPT Hoa Lac and around Hanoi This offers us obvious insights into Crocs’ 4Ps marketing strategy

From among 175 forms, 54% are female and the

percentage of male is 46% Most respondents had used

Crocs’ product, reaching more than 70% More than half

are aged 16-20, the 8-15 age group is 30.9%, the figures

for the 21-30 are 11.4% and the other is above 30 From

this data, we can see that the target group of the Crocs brand is none other than young people, accounting for more than 80% of the market share of Crocs We went deeper into demographics

by gathering these audiences' earnings data for a month Specifically, the group of income from 1

to 3 million reaches more than half, while the group of income below 1 million accounts for 35% The group from 3 million to 10 million and over 10 million accounts for just over 10% From the above numbers, we can see that Crocs is focusing on people with mid - low income Another problem for many

businesses, not only Crocs,

especially a foreign enterprise

entering the Vietnamese market is

the problem of counterfeit goods

To better understand this issue

and study micro-consumer goods

in-depth, we asked about the customer's psychology graphic Out of 175 respondents, nearly 50% of customers admitted that they were using a non-genuine Crocs product This has a huge impact on the brand, including revenue to management and branding Next, we study the customer's behavior, their perception of seeing a fake Crocs product by asking a multiple-choice