the impacts of the decision making process of pandora consumers by internal and external factor

The internal factors influence on Pandora''''s target consumer behavior● Values and beliefs- Value refers to the benefits that customers receive when using the product and Pandora has broug

GROUP ASSIGNMENT

ConsumerBahavior

MKT201

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CLASS: MKT1821 - LECTURER: TRAN QUANG THANG

Report Prepared by:

LUUHAIDUONGHS180834

NGUYENVANMINHHS180599

TRANNHATDUONGHS170574

NGUYENMINHHIEUHS186405

NGUYENVANDUONGHS171506

PHAMTHIHUONGGIANGHS170658

FPTUniversity HoaLacHighTechPark,29KmThangLongBoulevard,

ThachThatDistrict,Hanoi,Vietnam,100000

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TABLE OF CONTENT

1 Introduction 3

2.1 Target customer 4

3.1 The internal factors influence on Pandora's target consumer behavior 5

 Personality 5

 Emotion 5

 Self-concept 5

 Values and beliefs 5

 Lifestyle 5

 Attitude 6

3.2 The external factors influence on Pandora's target consumer behavior 6

 Culture 6

 Reference Groups 6

 Social Status 6

 Trends and Fashion 7

 Social Media 7

 Economic Conditions 7

4 The impacts of the decision-making process of Pandora consumers by internal and external factors 7

Step 1: Identifying the Problem or Opportunity 8

Step 2: Gathering Information 11

Step 3: Evaluating Options: 12

Step 4: Making the Decision 13

Step 5: Post-purchase (Implementing and Monitoring the Decision) 14

5 PANDORA’S 4P MARKETING MIX PLAN 15

PRODUCT 15

PRICE 15

PLACE 16

PROMOTION 16

6 Product Recommendation 16

6.1 Product 16

6.2 Place 17

6.3 Promotion 17

6.4 Price 17

with the aim of clarifying the influence of related factors on the behavior of the brand's customers, then provide recommendations for the brand to make use of that knowledge to improve their marketing efforts.

1 Introduction

1.1 Pandora Introduction

- Pandora designs, manufactures, and markets hand-finished and contemporary jewelry made from high-quality materials at affordable prices Pandora jewelry is sold in more than 100 countries on six continents through around 7,800 points sales including more than 2,400 concept stores

- Founded in 1982 and headquartered in Copenhagen, Denmark Pandora employs more than 27,300 people worldwide of whom 13,000 people are in Thailand, where the company manufactures jewelry

1.2 Story about Pandora

● 1982-1999:

- It all started nearly 30 years ago Back in 1982, a jeweler’s shop that would one day become Pandora was established around Copenhagen, Denmark, by a jeweler Denmark named Per Enevoldsen and his wife Winnie

- In the beginning, they frequently traveled to Thailand in search of jewelry for import As the demand for their product increased, their focus gradually shifted toward wholesale to clients in Denmark

- In 1987, after several successful years as wholesalers, the retail activities were discontinued and the company moved to larger premises Meanwhile, the first in-house designer joined the company and Pandora began to focus on creating its own unique jewelry In 1989, the company decided to start manufacturing its jewelry in Thailand

● 2000-2009:

- In 2000, Pandora’s charm bracelet concept was first launched in the Danish market Consumers embraced standard users and increased demand in the next few years and expanded the market overseas

- In the following years, Pandora rapidly expanded its market presence from a

Scandinavian platform to an international marketing and sales platform driven mainly by third-party distributors and strong production capabilities in Thailand

- In order to increase its production capacity, Pandora opened a large-scale, six-story fully-owned manufacturing facility in Thailand in 2005, which still forms a central part

of the current production and infrastructure In August 2008 a second manufacturing facility was opened in the same area, which in 2010 was followed by the opening of Pandora’s third and fourth facilities in the same area.1

1.3 Brand Performance

1Câu chuyện về Pandora – Pandora Việt Nam (norbreeze.vn)

choose charms for their bracelets according to their preferences, thereby creating a unique design with its own meaning

- They use creative advertising campaigns through social media, television, and print platforms There was a 2-minute advertising campaign that scored points in the eyes of many customers The advertisement used images of children and a special connection with their mother on the occasion of "Mother's day" The advertisement sent a message

to viewers: Mom is the only one and the one who deserves the most perfect gifts."2

- Pandora has extensive distribution channels around the world, including retail stores, online stores, and sales partners This helps meet the needs of customers around the world and provides easy access to Pandora products

- Pandora creates a comfortable shopping environment to enhance customers' shopping experience The brand also creates loyalty programs and good customer care services to create good relationships with customers

1.4 Brand positioning

- Pandora's outstanding feature: the ability to personalize, customers can freely choose

charms to combine as desired Because it is also famous for its "Charm bracelet" product line, customers can add and change charms

- Pandora delivers value: through emotional connection Each Pandora jewelry design is

not only about exquisite aesthetic lines and meticulous craftsmanship but also a meaningful story hidden in each product and piece of jewelry that can symbolize important memories, values and emotions in the customer's life

- PANDORA's mission - to bring to women around the world tens of thousands of

genuine, modern, hand-carved jewelry products with exquisite quality and reasonable prices, and thereby inspire those who Women express themselves Every woman has her own stories to share - lots of special moments that make her unique

1.5 Brand Image

- Pandora is often represented in a logo with the word “Pandora” in the logo written in an easy-to-see, moderate font, creating harmony With the emphasis on the letter O and the crown above the letter "O", this not only helps the Brand's logo stand out but it also creates personalization for the brand

2.1 Target customer

- Pandora targets consumers mainly women with many different age groups The brand has collections that appeal to young women with trendy and fashionable designs, while there are also classic and sophisticated collections for older women Besides, it also targets customers who are jewelry enthusiasts, those who buy them as gifts on special occasions such as birthdays, and anniversaries,…

2PANDORA Ads - The Unique Connection (youtube.com)

looking for fashion-appropriate accessories They can regularly update their jewelry collections to suit many different styles

environment, with an elegant and sophisticated style They will look at quality and products that are long-lasting but flexible They will tend to look for jewelry with minimalist designs, considering jewelry as an investment

3.1 The internal factors influence on Pandora's target consumer behavior

● Personality

- Personal characteristics such as creativity, sophistication or adventure may influence consumer preferences for Pandora jewelry designs

- Pandora's stores use a modern, elegant and luxurious space, making customers feel their own status Pandora equips VIP rooms with 1:1 consulting support staff along with high-end and in-depth services.3

● Emotion

- Emotions play an important role in influencing consumer behavior, especially when purchasing luxury items such as jewelry

- Employees at Pandora's direct stores are all well-trained They always carry positive energy to transmit to customers Customers who come to Pandora receive dedicated service that makes them feel respected and will have more emotions when choosing products

● Self-concept

- Is the position that the name Pandora stands in the minds of customers about jewelry in general and bracelets in particular

- Customers have many different options but do not get confused when choosing a product Each product when used by customers helps them feel their own position When customers need jewelry to assert themselves, they can think of Pandora bracelets as one

of the top choices

● Values and beliefs

- Value refers to the benefits that customers receive when using the product and Pandora has brought those values to customers as well as built a trustworthy reputation with their customers

- As a name with a long-standing foundation, Pandora creates trust in customers about their products Luxurious materials create sophisticated hand-crafted jewelry along with reputable sources to help customers feel secure when choosing Pandora products.4

● Lifestyle

- This is one of the important factors for customers to choose products It accounts for the majority of customers' decisions when choosing bracelets that match the aesthetic fashion they are using

3Pandora Huỳnh Thúc Kháng - Không gian mua sắm thanh lịch bậc nhất Sài thành (lofficielvietnam.com)

4Về Pandora – Pandora Việt Nam (norbreeze.vn)

different styles and needs for customers to choose from Specifically, in the Christmas season of 2021, Pandora jewelry company launched the Pandora Timeless collection

5Inspired by the night sky glowing with magical beauty, makers have created artifacts about the universe and galaxies The jewelry gathers light from the stars From there, they recreate people's desire for change Not to mention, jewelry also represents the magic of the festival

● Attitude

- Are the actions that Pandora is doing to show respect for its customers

Pandora has attitudes and actions that respect its customers They develop with 3 criteria: High quality - Craftsmanship - Social responsibility

3.2 The external factors influence on Pandora's target consumer behavior

● Culture

- The influence of cultural factors on consumer behavior refers to how the values, beliefs, norms, customs, and traditions of a society impact the way individuals make purchasing decisions and interact with products or services Culture has a great influence on the behavior of consumers, it partly affects the buying behavior of consumers

- In many countries with different cultures, jewelry can have symbolic meaning in occasions such as weddings, birthdays, and religious ceremonies In addition, bracelets are inherently products that can symbolize friendship, love or protection and they are often given as gifts to others That's why Pandora has become more popular because of its unique design that is both romantic and interesting and diverse, suitable for many cultures

● Reference Groups

- The influence of reference groups, such as friends, family, or celebrities, may also impact the behavior of Pandora's target consumers If individuals within a consumer's social circle wear Pandora jewelry or endorse the brand on social media, it could influence others to consider purchasing Pandora products as well Additionally, endorsements or collaborations with influencers or celebrities could further enhance the brand's appeal among certain consumer segments

- Direct influence groups: membership reference groups such as parents, friends, shoppers, store employees, or consumer tribe groups, brand communities,

- Yoona, a member of the group SNSD, is Pandora's brand ambassador Fans who consider her as their ideal model will have the desire to be like their idol Pandora's targets dynamic young customers who like to experience high-value and fashionable bracelets

● Social Status

5Pandora Timeless: Bộ sưu trang sức mùa lễ hội lấy cảm hứng từ các vì tinh tú | Harper's Bazaar Việt Nam (bazaarvietnam.com)

depending on their social status or lifestyle preferences For some consumers, wearing Pandora jewelry may symbolize a certain social status or lifestyle associated with sophistication, elegance, or self-expression

- Pandora's target audience is likely to be people with medium to high incomes, especially those with a stable standard of living and are looking for high-quality and stylish jewelry products Especially “Yoona” bracelets styles At the same time, Pandora also targets people who want to create memories and sentimental value through collecting and gifting meaningful jewelry

● Trends and Fashion

- These trends often influence consumer behavior A trend is a movement started by someone to showcase a message In the fashion world, this message is usually synonymous with what is going on in the world around us Fashion trends refer to the 6

prevailing styles, designs, and preferences within the fashion industry at a given time, including their choices in jewelry

- Collection “Be Love” has a unique meaning and is a precious gift for you to express your sacred feelings to the women you love, in line with the trend and can be a gift for the woman you love on special occasions important occasion

● Social Media

- Social media is very important, it’s one of the communication tools in Marketing Everyone across the globe uses social media to connect with each other, share their experiences Consumers can share product reviews, information about a service and warnings about products When you use Facebook or Tiktok, you will see the content, advertising, influencer, PR post, even discounting coupons Therefore, consumers will want to purchase when using social media

- Pandora uses social media to share creative content, actively engage with customers, advertise effectively, and partner with influencers to create brand awareness and drive positive shopping behavior

● Economic Conditions

- Economic conditions refer to the state of the economy, including factors such as income, inflation and consumer confidence When this factor changes, maybe we adjust our purchasing habits We can buy more or less depending on the money we have

- Pandora has bracelets at very affordable prices, suitable for customers with average incomes However, Pandora still maintains its high-end, luxurious image by having limited edition bracelets with sophisticated quality That makes Pandora incredibly popular

4 The impacts of the decision-making process of Pandora consumers by internal and external factors

Step 1: Identifying the Problem or Opportunity

Internal factors:

6What is a Fashion Trend? — James Hillman Fashion Consultancy

● Pandora bracelets can always express the brand's very own personality When mentioning Pandora bracelets, customers will immediately think of luxury and class through exquisite and unique jewelry products This certainly gives customers a sense of self-worth through Pandora's products, thereby contributing to motivating customers to pay attention to the company's products, typically bracelets when thinking of products Can show your class To demonstrate your own value, potential customers will be attracted to your attention and interact positively, influencing their decisions

● Customers who purchase Pandora bracelets are always allowed to create their own products according to their individual personalities, with the opportunity to express their own creativity and adventure through choosing designs Exquisite and unique For customers with personality and passion for creativity, coming to Pandoran will definitely satisfy their own creativity, creating a strong connection with the brand and increasing the chance of customers returning to purchase and come back

● Trust can create confidence in making purchasing decisions Pandora always brings the best to customers from quality and valuable products and luxurious shopping space Once customers feel confident in Pandoran, they will decide to shop without worrying about the quality of the product

*Lifestyle:

● Pandora's collections reflect the trends and needs of modern consumers and are diverse in style, helping consumers recognize opportunities to express themselves through jewelry This will arouse customer interest and purchase decisions for Pandora products

● For example, the Pandora Me collection targets the Gen Z audience with its minimalist, cool, iconic style The Pandora Me collection helps choose symbols that express your interests, individuality, and self-worth Helping young people create their own unique jewelry without using products and customers can send their own stories on each product

selling collection in 2022.

External factors:

*Culture:

● Consumer behavior is greatly influenced by cultural traditions, beliefs as well as social norms In many countries with different cultures, jewelry can have symbolic meaning in occasions such as weddings, birthdays, and religious ceremonies In addition, bracelets are inherently products that can symbolize friendship, love or protection and they are often given as gifts to others That's why Pandora has become more popular because of its unique design that is both romantic and interesting and diverse, suitable for many cultures

● For example, on Valentine's Day, couples and lovers often buy Pandora products designed in the shape of hearts, roses, keychains, crowns and many other images symbolizing love Besides, in countries with cultures and beliefs such as constellations and zodiac signs Pandora has extremely unique charms with images of each zodiac