Consumer Behavior and Marketing Psychology

This report analyzes the challenges and opportunities for the food sector in Australia and develops a marketing strategy for Breakfast Cereals for the consumers in the Australian regions.

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Consumer Behavior and Marketing Psychology
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Consumer Behavior and Marketing Psychology
Contents
Introduction......................................................................................................................................3
Overview of product........................................................................................................................3
Critical analysis...............................................................................................................................4
Marketing strategy.......................................................................................................................4
Marketing communication mix....................................................................................................6
Strategic Recommendations............................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Consumer Behavior and Marketing Psychology
Introduction
Consumer behaviour is the research or the study of how an individual customer groups r the
organization purchases the product, how they utilize and dispose the product and services for
satisfying their needs and wants (Baker, 2014). Moreover, consumer behaviour can also be
referred as the actions of the consumers in the marketplace and the underlying purpose for the
actions. It is the expectations of the marketers that if they will be able to understand the factors
that stimulate and tend the consumers to buy the products then they will be able in determining
the products which will be best in satisfying the needs and wants of the consumers.
Understanding consumer behaviour is one of the significant factor for the business organization
in the attainment of the desired targets and goals. Consumer behaviour is also one of the integral
aspect in marketing as the demand of the products and services totally depend on the this element
(Mindaugas 2017). The below presented report is made focused on the perceptions and
behaviour of consumer in Australia and the selected product for this analysis is Breakfast Cereal.
The report is segmented in two major sections from which the first part consists of the analysis
of the challenges and opportunities for the food sector in Australia and the next is the
development of marketing strategy for the selected product.
Overview of product
Cereal is a very popular soggy yet crunchy breakfast choice for many Australians. Breakfast in
the most important meal of the day therefore the choice of cereal is equally important. Breakfast
cereal is highly fortified food that contains both minerals and vitamins in addition it can be a
good source of fibre and carbohydrates (Caldwell and Kadan, 2016). The one serving of cereal
can provide up to 25% daily value trace minerals and vitamins to the human body (Caldwell and
Kadan, 2016). The Australian Bureau of Statistics in May 2014 has released the report related to
the consumption of Breakfast cereal by the Australian. The report states that in Australia 36%
people aged 2 years and over eats breakfast cereal every day among them 34% are females and
39% are males (Australian Breakfast Cereals Manufacturing Forum, 2016). In addition, the
report states that the Australian adults who are 19 and above eats around 203 grams of cooked
porridge breakfast cereals and 48 grams of ready to eat breakfast cereals (Australian Breakfast
Cereals Manufacturing Forum, 2016). The Australian Guide to healthy Eating stated a standard

Consumer Behavior and Marketing Psychology
serve of cereal or grain as ¼ cup of muesli, 30 grams of wheat cereal flakes and ½ cup of cooked
porridge (Australian Breakfast Cereals Manufacturing Forum, 2016). For adults aged 19-70
years at least 4-6 servers of grain food is recommended however it also depends on the peoples
energy needs.
Critical analysis
Marketing strategy
Breakfast cereal is the chief household product which is consumed by everyone on a daily basis.
It adds as a healthy meal especially for breakfast. Cereal is healthy for consumption for human
body and is good for metabolism (Chand 2018). It can be consumed daily. The detailed
marketing strategy for breakfast cereal is as follows:
The marketing strategy for it would be very simple. The customer should get to know about the
services or the business of the product (Blakeman, 2018). The company should clearly
communicate its objective and benefits of the product to the customer in a very clear manner.
The target of the product, i.e. breakfast cereal should be achieved. The main focus should be to
recover the partial cost of the product.
The main sources to implement this strategy are as follows:
1. Good brand image for the product should be established
2. Many exciting offers should be there to attract costumers
3. Loyal customer base should be established (Chatterjee, Adhikary, Sen and Kar, 2018)
4. Sales should be increased
5. Increase costumers by making them feel that their presence is valued by the company.
The below presented are some of the main marketing strategies that can be adopted by the
business corporation for marketing the Breakfast Cereals in the Australian Markets:
Market segmentation
In this, the main thing to be done is to segment the customers on the basis of various factors like
needs, perceptions, requirements, expenses, living standards, behaviors, purchasing habits and

Consumer Behavior and Marketing Psychology
many other factors. For the product breakfast cereal, here is the market segmentation strategy
presented below. These are divided into various sub groups:
 Demographic segmentation: this type of segmentation is done on the basis of the
factors like gender, age and income of the buyers. Like for the product, breakfast cereal,
it is easy to identify the age group, as it is consumed by people of every age group. Same
is in the case of gender. The product is a basic requirement and it does not cost much, so
it is affordable for people of every possible income group.
 Psychographic segmentation- In the present case of psychographic segmentation, the
main factors which comes into account is lifestyle, personality and the social class of the
buyers. These are the factors which contribute to this segmentation sub group. This helps
the company to establish the product in the market (Davcik and Sharma, 2015). Like
personality will directly impact the sales of breakfast cereal. All these factors affect the
buying decisions of the consumers. These must be wisely considered by the company
before launching the product in the market.
 Behavioural segmentation- in this type of segmentation, the main elements are buying
decisions and preferences of the costumers. Only health conscious customers are going to
buy the breakfast cereal (Fill and Turnbull, 2016). Others will avoid it. So these things
are to be considered by the business entity.
 Geographic segmentation- while developing the product, and especially during its
market, factors like family size and income; also age should be considered by the
company. These impact the sales of the product; breakfast cereal.
Marketing positioning:
Company should be aware about the position of the product into the market. They should
effectively communicate what they are offering to the costumers. The delivery of the products
should be safe, of desired quality and at time (Kaushalya and Fernando, 2015). There should be
no delays in the delivery process. The services are one of the main factors. These things play a
major role in establishing a good brand image of the product into the market. He attributes of
services should be considered by the company in the market region. The company should
generate awareness about the product by spending good amounts on the promotion.

Consumer Behavior and Marketing Psychology
The marketing strategy should be very simple and communicated in a very clear manner. The
marketing strategy of the product, breakfast cereal is presented below in a step by step form:
Research
The company should be aware about the market size. During the development of product, the
prior focus should be on the taste of customers (whether they are interested in the particular
product or not) what are ready to pay for the product and many more aspects (Oliver, 2014).
Then the second factor which comes into account is of the various other companies selling the
same product. There should be proper analysis of the strengths and weaknesses of the rivalries
present in the market. Generally, there is a strong competition regarding size, price, and many
other aspects.
Costumers
The prior focus should be on customers obviously as they are the ones around whom the whole
process revolves. The company should identify its target audience. There is a segmentation of
costumers on the demographic, psychographic, geographic and behavioral basis. These are the
key segments for costumer analysis. The costumers whom should be targeted are to be identified
in a very clear manner (Ryan, 2016). Then the next step would be to meet the needs and
requirements of this costumer base on the basis of above data. Like here the product is breakfast
cereal, then the target would be the customers who prefer healthy food. So there will a product
for health freaks to maintain their health.
Product
The company has to work real hard with the collaboration of its each and every department to
generate the outcome. In this case, the product is breakfast cereal which the company would be
generating. For this product, to establish a good and positive brand image would be an easy task
as this is a healthy product. It would be sold easily in the market regions. The design for the
product should easily communicate its health benefits (Scarborough, 2016). There are only two
main focuses for the company; that is market segmentation and positioning.

Consumer Behavior and Marketing Psychology
Marketing communication mix
The promotion of products to the targeted audience is very necessary; following are the ways to
do same.
Advertising
There should be good promotion of the product. These can be done over radio, television,
newspapers (Todorova, 2015). The more advanced method for the same is the use of various
social media handles. This will provide effective results to the company.
Personal selling
At the initial stage, the company can promote the product, by selling it directly at the door step
and see the response of the costumers on face. There should be a proper distribution channel
planned for this process.
Public relation
The company should focus on maintaining good relations with customers. This proves to be very
beneficial for the company (Vinayagamoorthy and Kannan, 2015). This will help in establishing
a good customer base. It will increase the sales for the product and establish a good brand image
for the product.
Discount and promotions:
The company should give exciting offers from time to time. It will draw the attention of the
customers and increase the sales. Customers are generally attracted towards discounts.
Direct marketing
This can be done through personal selling and sales promotions. Make phone calls directly to
targeted audience yields results.
Strategic Recommendations
Expansion is one of the biggest opportunities that will be proven advantageous for the business
organization and is one of the top most recommendations which should be considered

Consumer Behavior and Marketing Psychology
significantly for success and growth of business. Expanding and diversifying the business
operations and activities in new market regions will be proven advantageous for various business
aspects, for instance, for expanding the business entity will have to hire more professional and
skilled staff and which will enhance the productivity, performance level, an increase in the
market share will also be observed. Moreover, a hike to goodwill will also be observed which
shows high level of brand equity. Establishing business to new market regions will add value and
additional assets to the business such as the entity will be up-graded by the technological aspects
of the region in which the entity will be setting up the business.
Establishing a development strategy is also highly recommended for the business organization
for properly marketing of the breakfast cereals in Australia. This can also be considered as one of
the initial requirement which is developed on the basis of the principle of generating value in
each and every segment. Strategy development will aid the business entity as it will help the
business in tackling and dealing with the competing brands. Developing a strategy will also
allow the business entity to foresee the future and thus preparation will be done accordingly. .
Further, there is a need of evaluation of the developed strategy and performance level of newly
built business units. This process of evaluation will be proven beneficial as it will aid the firm
with the reports which will present the lacking points and capabilities, capacity, performance
level, and scope of improvements if any. Performance evaluation will also enable the business
organization in the development of strategies which will aid in dealing with the competing
brands within the market region. Evaluation process will generate the data of the current status
and position of the firm in the market. This data will enable the entity in the development of
future plans and strategies and which will increase the strength of the firm in various aspects.
Moreover, the firm will also be able to know the errors and operational mistakes done if any and
timely improvements and rectifications will also be done. This all will result in the enhancement
of the overall performance of the business organization.
Conclusion
After summing up the above analyzed report it is inferred that consumer behavior stimulates the
business operations of an organization and hence it should be considered as a significant aspect
and products should be developed accordingly. The above report analyzed the challenges that are

Consumer Behavior and Marketing Psychology
faced and the opportunities that will be attained by the food industry in Australia. After which
the focus was diverted towards the development of marketing strategy for Breakfast Cereals for
the consumers in the Australian regions.

Consumer Behavior and Marketing Psychology
References
Australian Breakfast Cereals Manufacturing Forum.(2016) Fact Sheet. [Online] Available from:
http://www.cereal4brekkie.org.au/wp-content/uploads/2014/09/breakfast-cereal-consumption-in-
australia.pdf [Accessed on 3rd October 2018].
Baker, M.J. (2014) Marketing strategy and management.Macmillan International Higher
Education.
Blakeman, R. (2018) Integrated marketing communication: creative strategy from idea to
implementation. Rowman& Littlefield.
Caldwell, E.F. and Kadan, R.S. (2016) Learn more about Breakfast cereals.[Online] Available
from: https://www.sciencedirect.com/topics/food-science/breakfast-cereals [Accessed on 3rd
October 2018].
Chand, S. (2018) Consumer behaviour: Meaning/Definition and nature of consumer behaviour,
[Online]. Available at:
http://www.yourarticlelibrary.com/marketing/market-segmentation/consumer-behaviour-
meaningdefinition-and-nature-of-consumer-behaviour/32301 [Accessed on 3rd October 2018].
Chatterjee, K., Adhikary, K., Sen, S. and Kar, S. (2018) Identification and Analysis of Factors
Affecting Consumer Behavior in Fast Moving Consumer Goods Sector. Business Perspectives–
Aims and Scope, p.2.
Davcik, N.S. and Sharma, P. (2015) Impact of product differentiation, marketing investments
and brand equity on pricing strategies: A brand level investigation. European Journal of
Marketing, 49(5/6), pp.760-781.
Fill, C. and Turnbull, S.L. (2016) Marketing communications: brands, experiences and
participation. Pearson.
Kaushalya, A.M. and Fernando, P.I.N. (2015) Does Brand Image Impact on Consumers’ Buying
Behavior: Special Reference to Fermented Dairy Products.

Consumer Behavior and Marketing Psychology
Mindaugas, (2017) Marketing Psychology; Influence Consumer Behaviour to Benefit Your Small
Business, [Online]. Available at: https://blog.invoiceberry.com/2017/09/marketing-psychology-
influencing-behavior/ [Accessed on 3rd October 2018].
Oliver, R.L. (2014) Satisfaction: A Behavioral Perspective on the Consumer: A Behavioral
Perspective on the Consumer. New York: Routledge.
Ryan, D. (2016) Understanding digital marketing: marketing strategies for engaging the digital
generation.Kogan Page Publishers.
Scarborough, N.M. (2016) Essentials of entrepreneurship and small business management.
Pearson.
Todorova, G. (2015) Marketing communication mix. Trakia Journal of sciences, 13(1), pp.368-
374.
Vinayagamoorthy, A. and Kannan, P. (2015) The Impulse Buying Behaviour of Consumes for
the FMCG Products in Salem. Impulse, 2(2).