Consumer Behavior - Study on Australian Snack Market

This study focuses on the consumer behavior in the Australian snack market, with a special emphasis on the rising demand for healthier food products due to concerns about obesity. The study also explores the opportunities for Smith's Sunbites to launch its product extension, Sensations, which is a range of baked sweet potatoes. The study discusses the literature review, theoretical framework, and recommendations for Smith's Sunbites to launch its new product.

1Running head: CONSUMER BEHAVIOUR
Consumer Behavior
Author Name
Institutional Affiliation
Author Note

2CONSUMER BEHAVIOUR
Consumer Behavior
I. Context and Problem/Opportunity
The unhealthy diets of the people Australia is the most significant reason behind their
poor health. The people residing therein are found to be largely inclined towards the
consumption of unhealthy foods as compared to the healthy ones (Cameron, Sayers, Sacks &
Thornton, 2017). At present, the consumer’s demand for healthier food products is recorded to
be increasing at a rapid rate due to their concern about obesity. This situation among the
Australian snack markets has provided Smith’s Sunbites with an opportunity to launch its
product extension. The brand has come up with a healthy snack named ‘Sensations’ and is
aiming at building awareness on the new sub-brand, which is actually a range of baked sweet
potatoes.
II. Literature Review
According to Sarmugam & Worsley (2015), the people of Australia are immensely busy
and hence rely mostly on fast foods and the ready meals which are available in the snack market.
This increasing consumption of fast foods and snacks by the consumers in the country has led
towards poor nutritional value in them, thereby leading to increase in the rate of obesity among
the consumers. The threats of health issues and obesity has presently enhanced and alarmed on
developing positive consciousness at least to some extent, which can be further identified as
affecting the consumer’s purchase-decision regarding such food-items (Sarmugam & Worsley,
2015). It has been agreed by Kneebone (2015), who added that a large part of the Australian
consumers has further shifted their food-habits along with their preference for snack and fast
foods to healthy diets. However, amidst this section of the population, the households with
higher income are identified to be consuming snacks at a higher range as compared to the others
consumers, who cannot afford on buying them. At present, consumer behaviors project that they
only demand healthier snacks due to their rise in consciousness towards their health. Obesity and
other health issues of consumers have driven their behaviors towards developing health
consciousness within themselves (Kneebone, 2015). This is because they have apparently
understood that the consumption of unhealthy snack leads to the serious health problem such as
obesity. Therefore, the governments have also started developing strategies and taking initiatives

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towards the elimination of this issue from the roots. One such strategy is the introduction of
organic along with high fiber foods that are ordered for being sold in the grocery markets as well
(NSW, 2014).
Under the same context, Raghunatha, Naylor & Hoyer (2006) argued that not only the
health conscious consumers has changed their preference of foods but have also changed their
behavior towards the product that they consume as per their taste intuition. In the past, food used
to be chosen only based on taste, but at the present, the nutritional value of the products are also
taken into due consideration. Although taste and health are two different perspectives, the
majority of the consumers nowadays consider both together before purchasing any food products
(Raghunatha, Naylor & Hoyer, 2006). Simliarly, Vasiljevic, Pechey & Marteau (2015) projects
that an individual consumer’s hunger level can also bring about a vast change on their purchase-
behavior of food, which they want to consume rather than the healthiness of the same.
Consumer’s hunger also at times can contribute to the making of their decision of the food
products rather than just the attractiveness or the higher nutritional level. This can be explained
with an example stating that the consumption of a cereal bar instead of a chocolate bar can serve
the same purposes of taste and satisfaction of hunger among the consumers, without harming the
health (Vasiljevic, Pechey & Marteau, 2015). At present, Development of Agriculture and
Fisheries (2018) highlights that due to increase in obesity and other health issues among the
public, the baked sweet potato can bring about a huge impact on the health conscious of the
overall consumers in Australia. Since it is baked instead of being fried, contains no fat, is tasty
and involves high fiber, its demand has hiked. Moreover, it also saves the consumers from
suffering from fat-related health problems such as bowel cancer (DAF, 2018). Under the global
study of Burri (2011), it has been evident that baked sweet potatoes have attained a huge success
across the world not only for its nutritional value, but also for treating the patients suffering from
VA deficiency. At present, it is mostly put into practice in the healthcare settings of the US as it
has been identified to be free from any toxic elements (Burri, 2011).
The occurrence of health issues such as overweight and obesity was understood as being
the major problems for the consumers in Australia. This further led to a rise in demands of the
customers for the healthy food products and organic ones as well. Among all, one of the health
governing body, as well as the community of New South Wales in Australia, have succeeded in
aiding most of the customers suffering throughout this phase. They followed a framework of 6

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stages, through which they succeeded. Implementing this framework, NSW was able to identify
the major source of obesity and overweight that occurs within the consumers. After knowing the
major sources, they developed numerous interventions and then assessed them for identifying the
best and appropriate interventions to be implemented. Besides, for implementing different types
of interventions, they further generated success for promoting the health of the patients or the
consumers suffering from serious health issues. Identifying the risks and overcoming them
throughout the process of interventions were the biggest perspective that added to the overall
success (Gill, King & Webb, 2005).
In addition, Barosh, Friel Engelhardt & Chan (2014) stated that consumer behaviors in
Australia have affected the markets as well as their own individual health. The behaviors may be
intentional but in most cases in Australia, food security is considered as the key issue for altering
the consumer’s behavior from one product to the other. These insecurities have led to a rise in
prices of the foods, which in turn has affected the consumption structure of the households with
lesser income. The urge of the consumers on buying cheaper foods are determined in accordance
with their affordability rates as well. This is the reason for consumers of Australia requiring an
introduction of healthier and affordable foods so that they can recover from their illness and stay
fit at the same time. This can be done by consuming healthy foods such as Smith’s baked sweet
potato (Barosh, Friel Engelhardt & Chan, 2014).
III. Theoretical Framework
The 5 Stages of Consumers’ Buying Decision-Making Process
Consumer behavior and buying decision-making process are influenced by the
environmental factors and individual differences, which may be understood as a preference or
attitude (Lee, 2005). Based on the application of the 5 stages involved in the buying process of
the consumer, brand awareness can be made possible. The 5 stages comprise need for problem
recognition, information search, and evaluation of the alternatives, purchase decision and the
post-purchase behavior (Eriksson, 2015).
Need for Problem Recognition. Being the first stage, a problem must be identified
before taking any action for filling the gap between their current and desired status. It is

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important for the company to identify their major target consumers. This can enable the company
to make their product stronger, based on their target consumers. This means that Smith Company
knowing about the change in behavior of the consumers towards the healthy snacks identifies the
demography of the consumers facing higher level of health issues. Doing this can further help the
company to understand the desire of their targeted customer’s and produce ‘Sensation’
accordingly (Stankevich, 2017).
Information Search. The second stage is important for every company before creating
their product’s awareness. From the consumers’ perspectives, it is important to verify whether
the brand is trustable or not. This means that the Smith Company must create a label or provide
information on the product’s packaging in order to attract the customers and to assist them in
gathering complete information before making the purchase decision. This, therefore, helps in
maintaining the trust between the company and their customers in terms of business. The
company can also provide a free tasting session of the baked sweet potatoes to its target
customers (Stankevich, 2017).
Evaluation of the Alternatives. This is the most important stage for every company as
the consumer changes their decisions on this stage based on their taste and product quality. Here
the customers are always known for being aware of the products. Under this stage, Smith’s
Company needs to create its awareness based on affordability, quality and packaging of the
product. Enabling this can clear the doubts within the minds of the customers (Stankevich,
2017).
Purchase Decision. This stage is associated with the consumer decision on buying the
product. It may be possible that they might not buy the product even after assuring of their future
purchase. They apply the decision process in almost every situation before purchasing them.
Similarly, the company presents their Sensation food brand to their consumers on a trial basis by
providing them with an opportunity to taste the product before paying. This can help in
overcoming any negative issues in the near future (Stankevich, 2017).
Post-Purchase Behavior. This process enables the companies to obtain feedbacks and
reviews on their products so that they can understand if the product was defective or not. Most of
the consumers are earned by the companies with their trust in their product. Focusing on this,

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Smith’s Company can also gain their loyal consumers through this stage only if the Sensation
brand of baked sweet potatoes meets the requirements of the consumers (Stankevich, 2017).
IV. Recommendations
Considering 7P’s of Service Marketing
This concept includes seven areas which deal with the association of company’s finance
and the consumer’s different measures. 7P thus includes service product, service price, service
promotion, service distribution, people, service process and the service physical evidence
(Akroush, 2011).
Partnering with Healthy Brand. Partnering with the healthy food partnership can
significantly boost the Smith Company on launching their sensation brand of baked sweet potato.
Launching this product can gain consumers of the Healthy food association, as they are self-
conscious about their health. Launching baked sweet potato can develop the interests within their
minds (Lindberg, Nichols & Yam, 2017). Building a partnership with Healthy Food can favor
the launch of the new sub-brand, Smith’s Sensation. This also makes each member understand
about the targeted groups and the company’s main strategy of driving the consumer’s behavior
must be initiated (Healthinfonet, 2008). As it has been understood that major part of Australia’s
population suffers from obesity and other nutritional deficiency related health issues, it needs to
be ensured that people serve healthier and good quality baked sweet potato of the Smith’s
Company. This can ultimately enable promotion of the product among the sufferers (European
Commission, 2012). Creating a friendly environment between the consumers and the company
members through an interaction can favor in developing an image, trust as well as relationship of
the sub-brand through a regular interaction (Pilizota, 2012).
Collaborating with the Healthy Food Company can also bring improvements in terms of
knowledge required on launching as well as promoting the Smith’s sensation brand. Through this
knowledge, company can also promote through the same channel of the partnering company,
which brought them the success on launching their new products (Bertilsson, 2014). With this,
Smith Company can also build better relationship with Healthy Food Company. This would not
only succeed in launching the company’s sensation brand but will also develop business at

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present and even n future as the relationships are made for a long-term business as stated under
the contract between them (Kanter, 2018).
Social Media Influence. Implementing the social media can improve the Smith’s
sensation brand of baked sweet potato. Developing a website of the company to project the
nutrients along with every year annual reports as well as focusing on corporate social
responsibility can benefit the launch of the Smith’s sensation brand. Media releases along with
the elements associated with the nutrition policies and planning in terms of the company’s
corporate social responsibility can favor the company on creating the interest of new sensation
brand before even releasing it (European Commission, 2012). This concept suggests that the
products manufacture must always be made in terms of the consumer demands. Successful
companies are known for producing goods based on the demands of the customers, as they gain
regularly feedback from the consumers through social media. With a growing trend of social
media, exploring them and advertising at the same time can favor the company on creating a
successful launch of the Smith’s sensational brand of baled sweet potato. Enabling online
interaction with the people or the stakeholders staying at far places can enable the company on
being in touch and sharing the issues or any kind of activities associated with the company’s
operational activities. This includes promotion of a new sensation brand of baked sweet potato.
Keeping in contact with every member of the company with respect to daily activities through
the social media can be benefitting before launching the new products (CIM, 2015).
In order to maintain or provide a continuous satisfaction on the products provided by the
company, understanding the current trend is immensely important. The increase in obesity has
led towards a major increase in healthy food demands, thereby monitoring what they expect from
the company. Smith’s Company must also be able to identify different consumers based on their
preferences such as some people tend to sit at home and order food online. Following this trend
and putting the Sensation brand of baked sweet potato can thus attract a large number of
consumers (PMA, 2014).
Value Packaging (Promotion). Since the consumers play a major role towards driving
the markets, gaining their attention should be the initial objective of the company rather than
seeking profit or recovering their expenses made on launching the Smith’s baked sweet potato

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(Loizou, Michailidis & Kalogianni, 2009). The consumers, who prefer healthy foods, are always
known for trusting the company based on their product’s quality content, services and its healthy
ingredients, they also tend to look after the evidence of the product before trying. This is because
of their desire for becoming healthier by consuming high fibre content food along with the low
content of fat and carbohydrates. Following this and ensuring the health improvement of the
obese people by conducting various healthy food campaigns around the operating region can
drive their consumer behavior towards Smith’s sensation brand of baked sweet potato. On this
context, labeling Smith’s sensation baked sweet potato’s nutrient level such as high level of fibre
contents with zero fats on its packaging can help build trust amid the consumers before
launching the sweet baked potato (World Obesity, 2014).
As the people do not know about the new sub-brand, providing them with adequate
knowledge about the product’s fiber content can favor their health. This can prove to be
beneficial for the Smith’s Company (World Bank Group, 2017). Giving advice and knowledge
about the nutritional products can also enable the target consumers to make their purchase
decision effectively, thereby leading to a grand launching of the product (Pepino, 2014).
Providing education to the adults as well as teenagers about nutrition can expand the interest of
the products in their minds, which can, in turn, prove to be beneficial for the launching of the
Sensation brand (Hawkes, 2013). Setting up health welfare programs in order to engage the
consumers for projecting the Smith’s sub-brand of baked sweet potato can drive the consumer’s
perception towards the product. This can help in promoting new sensation brand of baked sweet
potato to the consumers (Hippocrates, 2009). Enabling people on checking or consuming the
sample of baked sweet potato can also develop trust as well as awareness for the Smith’s
Company (RecreationNB, 2009).

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V. References
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empirical assessment of their generalisability, applicability and effect on performance -
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Barosh, L., Friel, S., Engelhardt, K. & Chan, L. (2014). The cost of a healthy and sustainable diet
– who can afford it?. Australian and New Zealand Journal of Public Health, 38(1), 1-6.
Bertilsson, H. (2014). Launch of new products - Market research for new product development
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Burri, B. J. (2011). Evaluating sweet potato as an intervention food to prevent vitamin A
deficiency. Comprehensive Reviews in Food Science and Food Safety, 10, 1-13.
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Australian supermarket catalogues reflect national dietary guidelines?. Health Promotion
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VI. Appendix
Figure 1: Recommendation to partner with The Healthy Food Company (Promotional
Strategy
Source: (The Healthy Food Company, 2018; The Smith's Snackfood Company Pty Ltd, 2018)
Figure 2: Various Pricing Methods
Source: (Nitisha, 2018)

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Figure 3: Service delivery system of a Product
Source: (Ponsignon, Smart & Maull, 2010)

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