Consumer Behavior Report

This report analyzes the consumer behavior surrounding foamless malt-based drinks in the UAE market. It examines the product, market, cultural influences, consumer attitudes, and the need for adaptation or standardization. The report also includes a background on the UAE, its changing society, and the impact of expatriate communities on the market. It concludes with recommendations for expanding the business of non-alcoholic drinks in the UAE.

CONSUMER BEHAVIOR

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.0 The Product......................................................................................................................1
2.0 The Market place..............................................................................................................2
3.0 Culture..............................................................................................................................4
4.0 Attitudes...........................................................................................................................6
5.0 Adaptation/standardisation...............................................................................................7
6.0 Conclusion/ recommendations.........................................................................................8
TASK 2............................................................................................................................................8
REFERENCES..............................................................................................................................14

INTRODUCTION
Consumer behaviour is the study of individual, organisations and groups select, use, buy
and dispose goods and services for satisfying needs and wants. It is action of consumers at
marketplace and motives actions. It studies about emotions, preference and attitudes which affect
buying decisions (Solomon and et. al., 2014). Here will discuss about non alcoholic market at
UAE for consumers. There are many other countries producing such drinks for consumer which
contain zero percent alcohol. Here the market is Middle East or Dubai for expanding business.
Through help of Boston matrix market is identified and finds gap analysis. The culture is
explained and issues are identified. The attitude of individual greatly influences market. There is
difference in adaptation and standardisation. The background, ex patriate, buying behaviour
theory has discussed in assignment.
TASK 1
1.0 The Product
Foamless malt-based drinks
Foamless malt based beverages are non-alcoholic drinks that are nutrition enriched with a
certain content of Barley present in them. These drinks are aligned with the latest trends in
market in relation to the health consciousness of people. Alcoholic drinks are adverse for health
and thus, to overcome this, the concept of this foamless malt based drinks came into existence.
The reach of these drinks is still limited as many people still do not have access to information
about it. Especially in Middle East, these beverages have already gained the attention of
consumers. This is due to the Halal certification that these drinks possess. Its consumption in
recent years have become a statement of high living standards. In addition to this, the taste of
malt beverages is much better than the alcoholic drinks. Also, the availability of these drinks in
different flavours in market has also promoted the widespread acceptability of these beverages
among people as they can choose according to their tastes and preferences (Goh, Heng and Lin,
2013).
Identification of companies selling these drinks
There are many other companies in international market which manufacture and sell non
alcoholic drinks to customers. This includes Lorian Marketing limited; Univers drink group,
Skander group, Nagele k & A Srl, Essse Caffe SPA etc. Apart from this, there are some brands
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of non alcoholic drinks such as; Nuun & Company, Lifeaid Beverage Company, Tiesta Tea
Company (Cantallops and Salvi, 2014).
2.0 The Market place
Identifying where the market is
Foamless malt based drinks are highly popular in some countries due to the presence of
zero percent alcohol. The beverage industry in Gulf, Middle East and North Africa region has,
over years, seen a remarkable transformation and development. This owes to the constant
fluctuation in demand of consumers in accordance with the increasing population of these
territories. In Middle East especially, these drinks are popular as they are in accordance with the
religion, beliefs, culture of people. Also, millennial can consume this drink due to absence of
alcoholic content in them. Furthermore, these beverages are certified by governmental agencies
and possess a Halal mark upon the containers which gives a boost to its growth in economy. As
per the study of industrial indicators,. Non-alcoholic beverages have constantly been reflecting
an increase in volume of the sector globally. UAE has a significant share in this sector and thus,
there is a huge scope for growth of foamless malt based drinks in this marketplace.
Identifying what the market is
With the help of Ansoff Matrix, the growth alternatives for foamless malt based drink are
ascertained below:-
Market penetration: In accordance with this, the company can look at increasing its
market share in existing markets such as Middle East where the company is already dominant
with its sales.
Market development: Here, the company tries to expand its operations by taking these
non-alcoholic drinks to new markets where there is a huge scope for company to flourish and
where the recent trends foster the growth of non-alcoholic industry.
Product development: In accordance with this, company can consider extending the
product range in its already dominant markets so as to tap the advantage of well established
network of company for these drinks (Sparks, Perkins and Buckley, 2013).
Diversification: Company can also look for increasing its market share by bringing new
products within the same product line with an aim to grow in non-alcoholic industry.
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In relation to the non-alcoholic drinks, company is adopting the strategy of market
development and thinking if expanding its operations from UK to UAE, especially Dubai as this
place has a large potential for growth in relation to non-alcoholic beverage industry.
(Source: Ansoff Matrix,2018)
An understanding of the gap in the market
Gap analysis is a process of carrying out comparison between actual and desired
performance of company. If an organisation does not optimally utilise its current resources or
forgoes investing in new trends of technology and innovation, it may result in a performance
below desired expectations (Paul and Rana, 2012). In relation to industry of non-alcoholic
drinks, it is imperative that the company ascertains any gap that exists between what the
enterprise is delivering and what the customers need and prefer. Also, this analysis helps the
company to determine where they are lacking in the existing dominant markets such as Middle
East and Gulf so that they can keep those areas in consideration and manufacture the drinks in a
way that they gain widespread acceptability from people belonging to UAE. Before expanding
its operations from UK to UAE, company analyses the shortcomings that are present in the
product as per current market scenario so that the expansion results in growth of company in
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Illustration 1: Ansoff Matrix

Dubai markets. This would ensure that company has a competitive and strategic edge over its
rival companies in non-alcoholic beverage industry (Hosany and Martin, 2012).
Ascertaining why has this become a growth area
This area is growing day by day because of many reasons. As with the change in time and
situation people are more concerned about their health and safety. The international and national
regulatory regulates non alcoholic beverages across globe. Because of low calorie contents it is
more popular among consumers. Health and wellness provides positive impacts on such industry
for growing. The increase in awareness of health problem related with alcohol has shifted
consumers’ preference from alcoholic drink to non alcoholic. Through the help of graph it can be
presented.
3.0 Culture
Definition
Culture is the collaboration of values, experience, beliefs, attitudes, notions, roles,
knowledge, morals, ethics and concept possessed by individual or group of persons in an
economy (Xiang, Magnini and Fesenmaier, 2015).
Also, it can be said that culture is the sum total of behavioural characteristics of a group
of individuals that are usually considered to be the traditions and customs of people which are
transferred from one generation to another.
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sum of total of the learned behaviour of a group of people that are generally considered to be the
tradition of that people and are transmitted from generation to generation (Mullen and Johnson,
2013).
Besides this, culture can also be said to be the collective programming of mind which
distinguishes the members of one group or category of people from another.
Different aspects of culture
The different aspects of culture are:
Language- The language spoken by people also influence culture which includes mother tongue,
lingo.
Actions- Actions can be justice, work religion, science, art, regime, organisation.
Validity- The values, opinions, laws possessed by individual is validity.
Space- It is spatial experience, living space and functional space.
History- The time experience, myths and milestones.
Identity- The identity of person in terms of self conscious and self esteem.
Experience- It is gained from past experiences which can be rituals, practices and customs.
Background of Dubai
Dubai possesses Islam culture which is in Arab societies. The Muslim culture is no
different in Dubai. Ramadan is considered as holy month for Muslim people which is marked by
prayer, charity and fasting. It is important because when tourist visit they highly respect as the
minority group of Emiratis over culture and traditions. The alcohol is not forbidden in Dubai as it
is served in hotel, bar, restaurant. Individual can drink in their home if they have alcohol license
issued by municipality but illegal to drink in public and street.
Key issues within culture
There are various issues with this culture but as per scenario only three have to be
identified which are:
Language barrier- It is major issues because people from different country live and they speak
various languages. It is sometime not understood by people (Psychology Press and et. al., 2012).
Religion- People from different parts of world survives in Dubai and they follow their own
religion which is culture issue factor and accordingly products need to be made.
Education family- The need and demand of consumer is different as per educational
background, age. It is not possible for company to manufacture as per customization.
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Ways to overcome issues
The culture issues can be overcome by learning client, promoting appreciating of cultural
differences, opening new things for try, accommodating and understanding customer needs and
clients (Griskevicius and Kenrick, 2013).
4.0 Attitudes
Definition of attitude
It is the tendency to respond negatively or positively towards object, situation, idea and
situation. It influences individual’s choice of action, responding towards challenges, rewards and
incentives. This is between belief, mood, pose and stance. There are four components of attitudes
such as: affective (emotions or feelings), cognitive (opinions or belief held), evaluative (positive
and negative response to stimuli) and conative (inclination for action).
Theories on attitude
The theories on attitude are as follows:
Self perception theory
When talk about attitude towards object, people recall their own behaviour to that things
and analysis attitude from past experience. This theory means actions which have already
occurred and guiding for future course of action. Here, traditional attitude- behaviour is positive
and behaviour – attitude is stronger. When one has any attitude or little experience then will tend
to infer their own behaviour to others. After occurrence, behaviour or attitude is changed. So
because of this it is called self concept theory.
Balance theory
It was formulated by Heider. It is concerned with consistency for judging people and
issues which are linked by some form of relationship. This theory has three elements for attitude
formation and they are:
The person
Other person
Impersonal entity
The balance exists when all three relations are positive or if two relations are negative
and one is positive (Claiborne and Sirgy, 2015). The imbalance exists if all three relations are
negative or if two relations are positive and one is negative. The people perceive others and
objects linked them in order to balance. Thus if perceiver like source who favours position then
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balancing process leads to favour that post too. Similarly, when imbalance occurs then
psychological tension creates motivates person for restoring knowledge. Thus person should
possess positive balance for object or things.
Applying in Dubai
The chosen country is Dubai and self perception theory is applied here. Every individual
make perception about other person or things and accordingly act. It can come from past
experience or attitude of person. Thus, as per behaviour and perception of individual should
make plan and decision. Dubai has many culture, religious people living so according attitude
should be built (Heitz-Spahn, 2013).
Key issue for attitude
The attitude of people changes because of social factors, family, personal experience,
educational and religious institutions, economic status, direct instruction, prejudices, media,
physical factors.
5.0 Adaptation/standardisation
Meaning of adaptation/ standardisation
Adaptation means changing price, packaging and promotion of product in order to fit
need and preferences of particular country. This occurs when marketing strategy element is
modified for achieving competitive advantage when entering foreign market.
Standardization is opposite of adaptation. It means making new advertisements, product
line and packages. It requires less investment as compared to adaptation (Foxall, 2014).
Need to applied for drink
As given scenario in assignment it is analysed and easy to adopt is standardization for
drink. There are many companies which have been manufacturing zero percent alcoholic drink.
Through standardisation, company can save cost, economies of scale, reduced message
confusion, one global advertising strategy and increase efficiency with lower cost. It also helps in
investment saving which can be used for other purpose.
UK Dubai
Market has been grown from last years for non
alcoholic drink.
Here also market is growing at larger pace.
Adaptation is most suitable for UK market
because people need and demand changes
Standardisation is effective marketing strategy
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frequently. as cost incurred is large.
More research is required. Less research is required
6.0 Conclusion/ recommendations
Research required
The research required both primary and secondary data. For primary, sample survey have
done and accordingly made plan. Similarly, for secondary data collected from newspaper,
magazine and information collected. Thus, Dubai has to do proper research to understand their
customer taste and need and accordingly manufacture goods and services. It helps for
sustainability and profitability (Solomon and et. al., 2014).
Recommendation
After analysing scenario it is advisable for Dubai to expand business of non alcoholic
drink in other part of countries. It is zero percent non alcoholic drink which is save and no health
issue. It can be consumed by any consumer whether adult or child. The reason for expansion is
Market share growth
Profitability
Diversification
Foreign investment opportunities
TASK 2
Background on the UAE
The culture of UAE is mixture of traditional and modern element. People from different
part of world live in Dubai for education, employment. There are many laws and regulation
made by government of UAE for regulating country. There are some laws made for consuming
of alcoholic drink as most of people residing there are Muslim. This country has very strict rule
and law. So considering this in mind it has manufactured zero percent non alcoholic drink which
is save, free from health disease and can be consumed by every person. Thus, this is the
background of UAE market. This drink is famous and capture large market share along with
profits (Goh, Heng and Lin, 2013).
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Changing society in past 50 years
It is an alteration in social order of society. It means change in social institutions, social
relations, nature and social relations. As environment is dynamic this keeps on changing and
accordingly changes in taste and preference of consumers.
From last 50 years UAE has changed because of rapidly increasing population,
increasingly cosmopolitan, infrastructure, tourist destination, safety increase, high growth rates.
The changes in such things greatly influence demand and supply (Cantallops and Salvi, 2014).
Ex-patriate communities and an increase growth in foreign businesses
An expatriate is person temporarily or permanently residing in country other than native
country. It refer to skilled worker, professional, artists taking positions outside home country
either sent by their employees which can be company, government, universities. The government
of UAE allows for 100% foreign investors ownership in business and grant 10 years visas to
expatriates which boost foreign investment in country. This law increase transparency, quality of
service and adoption of international practices. This changing law helps many people to invest in
UAE market in order to increase profit and sustainability.
One buying behaviour theory
EKB model was developed in 1968. It was developed for organising fast body of
knowledge about consumer behaviour. This model explains about consumer behaviour in four
steps and other variable over period of time. It is problem solving and learning model. This
provides good description of information seeking along with evaluation process of consumer.
The feature of EKB model is to find difference between high and low involvement for buying
process. The high involvement is present at high risk purchase and low is present at low risk
purchase. It consists of four components which are as below:
Information processing- It comprise of consumer’s selective exposure, attention, comprehension
and retention of stimuli relating to product or brand received from marketing.
Central control unit- The stimuli received and retained are processed through central control
unit. The past experience and information of store helps in comparing different alternatives.
Evaluation is done on basis of alternatives. The both general and specific attitudes influence
purchase decision (Sparks, Perkins and Buckley, 2013).
Decision process- It is information processing which has following component such as
Problem recognition
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Internal search and evaluation
External search and evaluation
Purchase processes
Decision outcomes
External influences- The external factors influencing consumer’s purchase decision are income,
family, physical situation, culture and social class. This factor influence positively and
negatively as it depends on specific product.
The non alcoholic drink can use this model for consumer behaviour. Through the help of
this model one can identify need, demand and taste of consumer. The people tale time before
purchasing any product. The buyer does analysis very effectively and efficiently and makes final
decision. Firstly customer requirement should be understood and accordingly product and goods
should be manufactured. Thus it helps in achieving final goal and objective of business (Paul and
Rana, 2012).
Conclusion
From the given assignment it can be summarised that UAE has adopted new strategy for
manufacturing of non alcoholic drink in Dubai market. There are many other international
market with different brands has producing such drink. Through help of Boston Matrix market is
identified, gap analysis is done and growth area has recognised through graph. The culture of
UAE greatly influence decision making as issues arises for it. Also, attitude theory has explained
for buying behaviour of consumer. The UAE has adopted standardisation strategy for
manufacturing or expansion of market. From comparison, it has made clear about cost incurred.
Suggestions and recommendations has been also mentioned in report ot understand more deeply.
The background of UAE has discussed along with buy behaviour theory in context of non
alcoholic drinks.
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REFERENCES
Books and Journals
Solomon, M.R., and et. al., 2014. Consumer behavior: Buying, having, and being (Vol. 10).
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Heitz-Spahn, S., 2013. Cross-channel free-riding consumer behavior in a multichannel
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Foxall, G.R., 2014. Invitation to consumer behavior analysis. In Consumer Behavior
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REFERENCES
Books and Journals
Online
The Middle East non-alcoholic beer manifesto: Don't call it beer. 2018. [Online]. Available
Through: <https://www.foodnavigator.com/Article/2013/12/23/Non-alcoholic-beer-Don-t-call-it-
beer#>
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