Healthy Bites: Consumer Behavior Analysis Project Report, BUS708D

This project report analyzes the consumer behavior of 'Healthy Bites,' a hypothetical company offering healthy burgers. The report begins with a business overview, highlighting the growing health concerns in the US and the company's focus on providing a healthier alternative to junk food. It then delves into market segmentation, targeting middle-income groups, teens, health-conscious individuals, and urban residents. The positioning strategy emphasizes cause marketing and internet marketing. Perceptual mapping places Healthy Bites in the 'High Price-High Quality' quadrant. The report suggests 'Direct selling' and 'E-business' as suitable entry strategies. It also discusses product life cycle management, brand equity management through differentiation and customer involvement, and product line management. The report concludes by emphasizing the importance of understanding consumer behavior for business success. The project follows guidelines provided by Washington University of Virginia, adhering to APA citation formatting and includes an abstract, detailed analysis of the company, and a PowerPoint presentation.

RUNNING HEAD: HEALTHY BITES
CONSUMER BEHAVIOR
STUDENT NAME
WASHINGTON UNIVERSITY OF VIRGINIA

HEALTHY BITES 1
ABSTRACT
The report focuses on new business enterprise named as ‘Healthy Bites’. It provides
healthy burgers as the Americans attain high preference for processed food. Its product focuses
on teens, middle-income group, health-oriented people and individuals residing in cities. Its
positioning strategies will be word of mouth marketing, internet marketing and sales promotion.
The concept of perceptual mapping states that Healthy Bites lies in ‘High Price- High quality’
section. It is analyzed that ‘Direct selling’ and ‘E-business’ will be most suitable business entry
strategy for Healthy Bites. Additionally, Healthy Bites product life cycle can be managed
properly if it prioritizes its attention towards financing, marketing and manufacturing. It can
manage brand equity through continuous differentiation and customer involvement. Moreover, it
can opt for more product line only after attaining higher demand on existing product line.

HEALTHY BITES 2
Contents
Introduction......................................................................................................................................3
Business overview...........................................................................................................................3
Segmentation................................................................................................................................3
Positioning...................................................................................................................................4
Perceptual mapping.........................................................................................................................4
Entry strategy...................................................................................................................................6
Product life cycle management........................................................................................................7
Brand equity management...............................................................................................................7
Product line management................................................................................................................8
Conclusion.......................................................................................................................................8
Bibliography....................................................................................................................................9

HEALTHY BITES 3
CONSUMER BEHAVIOR
Introduction
The report focuses on the title ‘Consumer Behavior’. It focuses on the decisions and
actions that influence the buying behavior of a customer (Hawkins, 2010). The first section of
the report provides a brief information about the hypothetical organization named ‘Healthy
bites’. It also focuses on segmentation and positioning strategies with respect to business profile.
The key aim behind preparing the report is to apply the marketing concepts on an organization.
Additionally, it provides a chance to enhance the learning based on the given title.
Business overview
Obesity is one of the most serious health issues in United States. It has enhanced the
health concern of the individuals. One of the major reasons for rising health issue is eating
pattern and high junk consumption by an individual (Blossom & Frohlich, 2019). The company
‘Healthy bites’ will produce wide variety of healthy burgers in United States. In order to gain
efficient demand among the individuals facing health issues, it will be an appropriate product. Its
product will provide dual benefit to the customers. Firstly, it will fulfill the food cravings of the
customers. Secondly, its healthy ingredients will not contribute to poor health of the customers.
However, its pricing will be higher than the other brands. This is because it will adopt the use of
high quality healthy ingredients.
Segmentation
Market segmentation is the process of dividing the market of potential customers into
groups or segments based on different characteristics (Loveridge, 2012). According to
demographic segmentation, the Healthy bites focuses on customers with middle-income group.
This is because healthy ingredients have raised its price of a burger. It mainly focuses on
customers until 19 years. This is because U.S. teens are highly addictive to junk food (Lardieri,
2018). As per the psychological market, it emphasized on individuals that follows healthy
lifestyle. This is because its burgers are developed with an aim of providing healthy living to the
individuals.

HEALTHY BITES 4
According to Behavioral segmentation, it relies on customers with adequate spending
habits (Weinstein, 2013). This is because; its product price is comparatively high. Thus,
customers with subsequent spending habits can easily afford the burger. Based on ‘Geographic
segmentation’, its product will focus on customers living in urban areas. This is because; it will
assist the ‘Healthy Bites’ in making easy and early online food delivery. Additionally, it will
benefit the company in gaining customers in high concentration.
Positioning
Positioning refers to the ability to influence consumer perception regarding a brand or
product relative to competitors (Sajeesh, 2010). In order to develop a positive image of hungry
bites among the customers, various marketing strategies have to be developed. It should adopt
the cause marketing. It should link its product (healthy burger) consumption with reducing the
issue of obesity. This in turn, will assist in developing ‘word of mouth marketing’.
It should opt for internet marketing. This is because there are 312 million internet users in
United States. Thus, around 90% of the population uses internet. Thus, internet marketing will
assist in gaining the attention of large customer strength (Clement, 2019). Further, it will assist in
continuously reminding the customers about the ‘Healthy bites’. Additionally, continuous
distribution of pamphlets based on product will also aid in achieving a specific place in the mind
of the customers.
Perceptual mapping
It is a chart used by market researchers and businesses to depict and understand how
target customer view and feel about a given brand. It is also referred as product positioning map
(Yeap, 2011). From the below it is analyzed that ‘Healthy Bites’ company lies between the
sections of ‘High Price’ and ‘High Quality’. As discussed above, Healthy Bites priced its product
higher than top brands like Burger King and McDonalds. Based on health, its burgers rely on the
use of natural and healthy ingredients (Schlosser, 2012). Thus, in comparison with Burger King
and McDonalds, Healthy Bites products are healthier. This is because they are developed with a
aim of promoting health. Thus, it is perceived as a high price product with high quality. This can
also be viewed from the diagram presented below.

HEALTHY BITES 5
Healthy Bites
McDonalds
Burger King

HEALTHY BITES 6
Figure 1: Perceptual map
Source: (Pinterest, 2019)
Entry strategy
A business enterprise should choose its entry strategy effectively. This is because; it has
a major effect on the business profit and customer relations. As it is new business enterprise,
there are two possible appropriate options for its market entry.
Direct selling refers to selling product directly to the customers without the involvement
of an intermediary. The products involved in direct selling are not found in other retail stores.
Thus, sales process becomes less time consuming. Healthy bites should choose direct selling
option because it will assist in delivering right quality product (burger) to the customers. Raising
sales through direct selling mode will also aid in developing interpersonal relation with the
HIGH QUALITY
PRICE HIGHPRICE LOW
LOW QUALITY

HEALTHY BITES 7
customers. Further, it will help in making direct contact with the customers and enhancing
information about their choice and preference in burgers. It will also benefit in providing
solution to their queries and problems (Poon, 2012).
E-Business is also an appropriate option for the initial entry. It involves conducting
business activities through digital channels. It provides multiple benefits for the new startup.
Thus, Healthy Bites should opt for e business for rendering product to the customer in United
States. It will eradicate the requirement of store for making sales. It will enable cost saving for
the Healthy Bites. It will also lower the risk of finance in business failure. It will assist in
gaining the attention of large strength of customers. It will also reduce the restrictive hours of
healthy bites. It will also enable more control over the business activities. It will also provide the
benefit of freedom of location to Healthy Bites (Gloor, 2012).
Product life cycle management
Every product has its life cycle. Product life cycle management is handling product as it
move through different stages of its life cycle. Similarly, Healthy bites product (burger) also has
a life cycle. It comprises of four stages of introduction, growth, maturity and decline. Therefore,
Healthy Bites should lay high attention towards financing, marketing and manufacturing process.
It will help the healthy bites in enhancing their burger quality and making it healthier. It will aid
in getting early information about the opportunities with respect to sales. Developing efficient
knowledge about the sales also reduces the chances of waste. Thus, its proper adaption will
benefit the healthy bites in outperforming their competitors in United States (Stark, 2015).
Brand equity management
Brand Equity refers to the value premium that a company generates from a commodity.
It has a significant effect in attracting the customer towards the brand. Developing the brand
equity is not a single task but it should also be maintained over years (Keller, 2010). Healthy
Bites can manage brand equity by making continuous differentiation in its burgers. It should lay
prior attention in making its customers aware about the Healthy Bites brand. Despite sales, it
should conduct small contest, activities via its social media profile. It will result in more

HEALTHY BITES 8
customer involvement. It should be consistent in using healthy ingredients for its burger. It
should provide high customer service as it will benefit in brand recall.
Product line management
It involves managing and maintaining the portfolio of all the products of the company. It
is an important task as the company is engaged in the production of multiple lines of products
(Luo, 2011). Initially, Healthy Bites should develop only a single product line based on healthy
burgers. In case of experiencing high demand for its healthy burgers, it can also develop an
additional product line of drinks and beverages. However, it should only develop few product
lines, as it will aid in managing and rendering quality products.
Conclusion
The report summarizes the title ‘Consumer Behavior’. The above discussion concludes
that Healthy Bites can gain success in United States as it business is developed for providing
healthy alternative for the junk food. However, it should also lay high attention towards
developing effective strategies. Thus, high knowledge of customer behavior aids in getting
success in the market.

HEALTHY BITES 9
Bibliography
Blossom, L., & Frohlich, T. (2019, January 7). The Most Serious Public Health Issues America
Is Facing Today. Retrieved from MNS: https://www.msn.com/en-us/health/medical/the-
most-serious-public-health-issues-america-is-facing-today/ss-
AADHRmP#targetText=1.,up%20from%2030.5%25%20in%202000.
Clement, J. (2019, August 20). Internet usage in the United States - Statistics & Facts. Retrieved
from Statista: https://www.statista.com/topics/2237/internet-usage-in-the-united-states/
#targetText=With%20over%20312%20million%20internet,do%20not%20use%20the
%20internet.&targetText=As%20of%202019%2C%2040.61%20percent,States
%20originated%20from%20mobile%20devices.
Gloor, P. (2012). Making the e-business transformation. Springer Science & Business Media.
Hawkins, D. I. (2010). Consumer behavior. NY: McGraw-Hill.
Keller, K. L. (2010). Brand equity management in a multichannel, multimedia retail
environment. Journal of Interactive Marketing, 24(2), 58-70.
Lardieri, A. (2018, May 22). https://www.usnews.com/news/health-care-news/articles/2018-05-
22/study-teens-exposed-to-more-junk-food-ads-eat-more-junk-food. Retrieved from US
News: https://www.usnews.com/news/health-care-news/articles/2018-05-22/study-teens-
exposed-to-more-junk-food-ads-eat-more-junk-food
Loveridge, R. &. (2012). Theories of labour market segmentation: a critique. Springer Science
& Business Media.
Luo, L. (2011). Product line design for consumer durables: an integrated marketing and
engineering approach. Journal of Marketing Research, 48(1), 128-139.
Pinterest. (2019, September 3). Discover ideas about Maps. Retrieved September 3, 2019, from
Pinterest: https://www.pinterest.com/pin/52776626867728989/
Poon, P. A.-F. (2012). Managing trust in direct selling relationships. Marketing Intelligence &
Planning, 30(5), 588-603.

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Sajeesh, S. &. (2010). Positioning and pricing in a variety seeking market. Management science,
56(6), 949-961.
Schlosser, E. (2012). Fast food nation: The dark side of the all-American meal. . Houghton
Mifflin Harcourt.
Stark, J. (2015). Product lifecycle management. In Product lifecycle management . Springer,
Cham.
Weinstein, A. (2013). Handbook of market segmentation: Strategic targeting for business and
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Yeap, W. K. (2011). A computational theory of human perceptual mapping. Cognitive Science
Society.