Project 1: Researching Consumer Buying Behavior
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ProfFeedback_FinalBuyingBehavior_date.docx
CONSUMER BUYING BEHAVIOR REPORT: ACME AUTOMATIC WASHING MACHINES
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CONSUMER BUYING BEHAVIOR REPORT: ACME AUTOMATIC WASHING MACHINES
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Overall Feedback
Hi,
1. Can you use the executive summary template offered by the course (see attachment for Executive Summary template). Reference the Ask the Professor and Announcement link. Your executive summary misses some elements - example being clear recommendation.
2. Use the marketing terms more clearly in the application. Be clear in describing the key marketing concepts. I should see more use of the course material in your description of the terms. What is a feature? What is a benefit? How do you differentiate between the 2? Remember that you need to show a knowledge of the concepts and then apply them. You have many opportunities to describe features and benefits and link to your research. Example, you state, “Consumers look for washing machines that use advanced technology to boost performance, and consumers buy a variety of choices, including the design, shape and size”. Here is a great opportunity to use features and benefits in your research. Is design, shape, and size a feature? Is technology a feature or benefit? You did this well in your UK example, “Consumers in the UK have three important washing machine features: automation using technology, energy and water efficiency, and physical appearance”. Can you do this more throughout?
Class,
Please take time when you write your executive summary. The executive summary is critically important both in class and in business. Below is some content directly from the Effective Writing Center.
The mistake that I see most frequently is overlooking the recommendation and benefit. I should never read your executive summary and wonder - ‘what is the plan’ or ‘what is the benefit with the plan’.
This information is located on the Effective Writing Center.
https://www.umuc.edu/current-students/learning-resources/writing-center/writing-resources/executive-summaries/index.cfm
As its name suggests, an executive summary summarizes, or reviews the main points of, a longer document or report for a reader that does not have time to read the entire report. An effective executive summary analyzes and summarizes the most important points in the paper or report, and will often make a recommendation based on the analysis. Executive summaries are “stand alone” documents that are almost always read independently of the reports they summarize.
You may submit an executive summary as part of an assignment, and your instructor will likely read the summary and the paper or report. It’s helpful, however, to keep in mind that executive summaries should inform and influence people who will only be reading the executive summary. Most of the time, you will be summarizing a paper or report that you wrote, but there may be times when you will write an executive summary of another author’s report or article. Often your instructor will specify the length of your executive summary, but 10% of the document that you are summarizing is a good rule of thumb. For example, a ten-page paper or report would require a one-page executive summary.
When preparing to write an executive summary, ask yourself the following questions:
· Who will read your executive summary? Sometimes your executive summary may have an “intended” audience: your professor might require you to write it for a CEO, department head, or supervisor, for example. On other assignments, your audience won’t have a specific identity, but always keep in mind that the reader of an executive summary needs to know all of the important information in the main document without reading the actual document. Even if you know that your instructor will be reading everything that you submit, write the executive summary as a “stand alone” document.
· What is the main document’s main topic, theme, or idea? Most reports have a “thesis” or central point that they are seeking to communicate. Try to sum this up in two or three sentences. If you are having trouble with this, imagine that someone has asked you, “what’s this report about?” and that you have to explain it in only a few sentences. Once you’re able to say what the main idea is, it will be easier to write it.
· What is the “purpose” of the main document? Most reports and papers have a reason, or a goal (beyond just fulfilling an assignment). Perhaps the report supports a change of opinion, new direction, or course of action. Try to summarize this in two or three sentences.
· Are there sections, or divisions, within the document? If so, which ones are the most important, or most crucial, to an understanding of the document? The kinds of documents that require executive summaries usually contain sections, or subtopics that support the main topic. There may even be headings that indicate what the sections will discuss. Try to decide which ones are necessary to an understanding of the issue at hand, and which ones can be left out.
· Does the document make a recommendation or suggest a certain course of action? Some documents argue in favor of a change, or urge the reader to follow a particular course of action. If this is the case, you can almost always find this information in the introduction or conclusion of a report, and the body of the report may discuss it in detail. Other documents do not contain a recommendation, but simply present data or research findings. In this case, you would need to analyze the data or research and recommend an action.
· What are the benefits or consequences of this course of action? Whether you comment upon the recommendation in the report or make a recommendation based on your analysis of the information in the report, be sure to include a discussion of why (or why not) the recommendation is a good idea. If there are benefits, state them, since this will help to make your recommendation more persuasive. Although you will want to emphasize the positive, be sure to mention any consequences.
Executive Summary
The purpose of this report is to assist ACME in deciding whether they should venture into the Washing Machine market. It also aims at elaborating on the purchasing behaviors and preferences of the automatic washing machine purchasers in the ACME's leading markets of the United States, United Kingdom, and Germany. This report will focus on the features of the present washing machines in the market with an analysis of how these are being adjusted to accommodate the dynamic consumer patterns in every market. Additionally, the report will analyze the need by the population to purchase the washing machines, motives, and the benefits of the device. It incorporates the key parties involved in the purchase process and the locality where the product will be sold. It answers the question of whether the washing machine purchase is season-based and the frequency of purchase in the given jurisdiction and globally.
The analysis will be supported by competitors in these markets and the demographics of the consumers. This report will bring forth a proposition for ACME. Via the analysis of the markets, a recommendation will be brought forth on whether ACME should venture into the washing machines business and which market has a great promise for revenue growth.
The use of advanced technology is required to meet the needs of these markets in totality. The markets offer different potentials and specifications, which ACME should use to design the new washing machine. ACME should produce a highly efficient washer that utilizes less power, water and saves time and space based on consumer behavior.
Introduction
This consumer buying behavior report provides findings from market research on customers' preferences in ACME's three primary markets, the United States of America, Germany, and the United Kingdom. This report also aims at analyzing various aspects of the buying behavior and development of washing machines by ACME. This report will allow ACME to understand the marketplaces where marketing strategies should be developed to best market their product. By creating consumer-driven systems that provide consumers with valuable offerings, the company will deliver more high-end washing machines that will help drive sales. The major competitors in the market(s) include Whirlpool Corporation, the leading home appliance manufacturer globally. The company is a multinational entity based in America. The company headquarters are in Benton Charter Township, Michigan. It promotes and supplies products across various markets, including the target market by ACME.
On the other hand, a benefit is an advantage or a positive outcome that a customer draws from using a given product (Lancaster & Massingham, 2018). The new benefit will attract more customers from the competitors and increase ACME's market share. By analyzing the needs met and those yet to be completed, ACME will understand the features which need to be introduced into the new product to meet the needs of the consumers.
United States
Needs Met and Benefits
The purchase rate of washing machines in the United States is high. Different needs are met by the washing machines suppliers in the United States. Consumers focus on the type of washing machines they purchase, the technology involved, and the distribution channel when purchasing washing machines (Laitala et al., 2017). There is an increase in demand for washing machines due to improved living standards and disposable income. Consumers look for washing machines that use advanced technology to boost performance, and consumers buy a variety of choices, including the design, shape, and size (Mordor Intelligence, 2021). Consumer behavior is also dictated by the after-sale services provided by the producers. Consumers value installation services, transportation services, and credit services from the producers as after-sale services (LG, 2020). Washing machines help consumers meet their busy life demands. Consumers look for washing machines that can handle different loads, enabling them to avoid a second load, with 93% of consumers confirm mixing clothes in the washing machine to save on time (Mordor Intelligence, 2021). A larger capacity machine is thus more marketable.
Customers
Consumers in the United States are less biased on age and gender. Men above the age of 35 years are the primary buyers of washing machines, making about 58% of the total buyers, while about 70% of the end-users are women (LG, 2020). Those below the age of 30 years who purchase washing machines are evenly distributed in gender (Saleem, 2020). Most users buy the washing machines due to their busy schedules, which may not allow them to seek laundry services outside or hand wash their clothes. Celebrities are majorly used to influence the buyers on media ads, including social and mainstream media is used as marketing avenues.
Selling and Distribution
Washing machines in the United States are sold and distributed in different avenues. The most trusted avenues for purchasing washing machines are hypermarkets, supermarkets, and specialty stores (Saleem, 2020). These stores are known to supply original washing machines from the suppliers. However, there is increasing demand for the use of online stores to purchase washing machines. About 37% of buyers confirmed buying washing machines online from the company websites in 2020, an increase from 24% in 2018, which shows a positive trend in online buying of the washing machines (Mordor Intelligence, 2021). However, a bulk of consumers prefer physical stores.
Frequency of Purchase
Washing machines are durable and long-lasting. The main target of washing machines is the new customers in the market. However, changes in technology and the size of washing machines attract already existing customers. The introduction of better washing machines with higher water-saving capabilities and energy efficiency creates higher demand among older washing machines brands. Thus, introducing more effective machines attracts new and old customers who purchase the product from its competitiveness.
United Kingdom
Needs Met and Benefits
Most of the homes in the UK have washing machines. Approximately 80% of households in the UK use washing machines for their daily laundry services. Washing machines make it easy for families to spend less time and energy on their laundry needs. By January 2021, 75.2% of the UK population, constituting about 32.5 million citizens in the UK, are working (Office of National Statistics, 2021). This population has little time set aside for their laundry services. To meet their needs for laundry and time set for the exercise, using a washing machine is inevitable, explaining the large population of families using washing machines. One critical motive consumers have in buying washing machines in the UK is to avoid second loads, which waste a lot of time (Statista, 2020). Consumers go for products that help them save on time and meet their energy and water efficiency needs. Consumers in the UK have three important washing machine features: automation using technology, energy and water efficiency, and physical appearance (Statista, 2020). Consumers prefer washing machines that can self-load with water to reduce the energy needed in washing.
Customers
In the UK, the working population constitutes the most extensive population owning washing machines. Households with two adults working or one of them working and having one or more children all have a washing machine (Statista, 2021). About 94% of those households with one adult working have a washing machine, while about 84% of those households where the adult is not working and depends on state pension have a washing machine (Statista, 2021). The purchase of washing machines in the UK is not dependent on the gender of the individuals. The use of washing machines in the UK is majorly by the female gender, constituting about 76% of the total number of users, with the male gender using the washing machine less (Statista, 2020). Like in the US, most of the companies in the UK use media influencers and renowned models to influence the buyers to use their products.
Selling and Distribution
The online selling of washing machines from trusted online selling companies has increased. In June 2021, internet sales of washing machines in the UK accounted for about 26.1% of the total sales, an increase from a 13% sale in 2017 (Statista, 2021). This positive trend is encouraging to those who would like to enter the UK market to utilize well-known online platforms like Amazon. However, physical stores still account for the largest sales share, with the hypermarkets and supermarkets constituting about 60% of the total sales of washing machines in the UK (Statista, 2020). This shows that most people still trust the physical stores to the online stores. After-sale services, including transportation and installation, account for the most significant percentage of preferred after-sale services.
Frequency of Purchase.
Washing machines are bought for their features. New features are attractive to the users. Only about 10% of washing machine users use more than four of the settings in a washing machine, while about 20% of the users only use one setting (Statista, 2020). As a result, buyers are more attracted to the new features in the washing machine, which determine their use. There is no indication of seasonal sales of washing machines in the UK.
Germany
Needs Met and Benefits
The needs for washing machines in Germany are similar to those of the US and UK. Germany is among the developed countries in the world, with about 79 % of the population in Germany, amounting to about 42.4 million people working in different fields (Santander, 2021). The working population is well known to be busy with work and social life. They have little time left for some of the activities like laundry. Additionally, laundry is highly considered tiresome and time-consuming. As a result, the purchase of laundry machines in Germany is based on the ability of the washing machine to save their time and energy. Energy and water efficiencies are essential requirements and benefits that the most purchased washing machines in Germany offer (Santander, 2021). The cost of washing machines is also considered in making a purchase decision.
Customers
The consumption of washing machines in Germany is distributed among different ages and gender. The female gender constitutes the highest end-users of washing machines (Statista, 2021). This trend is similar to that witnessed in the United States. The buying culture is, however, well balanced between the male and female gender. The population of Germany is currently aging, with the median age being 46 years in 2019 (Santander, 2021). The largest consumers of washing machines are above the age of 40 years, making about 72% of the total purchases in 2019 (Santander, 2021). This population is majorly working and also constitutes the aging population.
Selling and Distribution
Germany is a mass consumer country. Currently, online consumption of washing machines has become the norm in Germany, with online sales and delivery constituting the largest percentage of buyers in 2020, about 76% (Santander, 2021). The online market is thus highly productive in Germany. Online sales companies in Germany offer delivery services as part of their after-sales services. The companies also provide training and installation services to the consumers when the deliveries are made. This has increased the number of consumers who prefer purchasing washing machines online. The supermarkets and hypermarkets are also essential areas to use for marketing and distribution. Those who do not trust online purchases of the products prefer shopping at supermarkets and hypermarkets for washing machines.
Frequency of Purchase
The purchase of washing machines is evenly distributed across the year. Germans buy electronic devices when they are new in the market as they are introduced at discounted prices, and their popularity is higher (Statista, 2021). Germans are looking for washing machines that are water and energy-efficient, and are automated. With the rise in technology, every consumer wants washing machines that will make their washing easier. By automation, washing machines can adjust to different conditions based on the input. There is no indication of a time in Germany when washing machines are highly sold compared to other times.
Value Proposition
The ACME Washing machines will assist consumers in using minimal energy at the same time saving on finances. Studies show that home appliances take up to around 21% of the Carbon (II) Oxide emissions. Thus, possessing an eco-friendly washing machine can assist in the reduction. With the superior automated Washing Machine Models, ACME gives creative energy saving to the customers of the carbon effects (Kotler & Keller, 2015). The machine will be environmentally friendly and will save on water. The customers will be able to save up to 3300 gallons per annum. By providing high technological features, flexible load options, and space-saving design, ACME will help cover doubts in cleaning the laundry. This will assist in obtaining the most efficient cloth cleaning.
The washing machine will be incorporated in the high-end quality and affordability. The ACME washing machines will have increased capacity. This means that users can clean more laundry at a time. Thus, reducing the number of loads to clear the laundry. The users will maximize their time on other activities, as washing will consume a minimal part of their time. Users will also have the freedom to select the top or front loaders with the machines being provided in various colors (Payne et al., 2020). Thus, it promises to create an elegant experience for the consumers as they clean their clothes. To capture the attention of the purchasers, ACME will utilize social media platforms and television (Lake, 2016). By using television, the entity anticipates the client will be appealed by their product and thus be willing to purchase their product instead of that of the competitor.
Recommendations
The recommendation is that ACME should manufacture the washing machines. The company should launch eco-friendly automatic washing machines while focusing on innovation, energy efficiency, space efficiency, and load capacity. The industry seems to have many players. Studies show that there exist about 800 million home washing machines that are operational across the globe. The German market vends about 3.26 million washing machines annually. The United Kingdom sells approximately 2,600,000 washing machines, with the United States selling about 2,800,000 annually. Thus, Germany would be the ideal starting market for the new washing machine (InfoMarketersZone.com, n.d.). It has a tremendous promise in growth for the market compared to the United States and the United Kingdom. There exists a demand for eco-friendly washing machines in the three markets. This is coupled with the fact that these nations have environment-sensitive consumers that would readily adopt the ACME’s washing machines. In Germany, the United Kingdom, and the United States, customers are ready to incur more costs to obtain quality eco-friendly products.
References
InfoMarketersZone.com. (n.d.). How do you develop a unique value proposition? Retrieved from http://www.infomarketerszone.com/public/182.cfm
Lancaster, G., & Massingham, L. (2018). Essentials of marketing management (2nd ed.). Document retrieved from: http://ezproxy.umgc.edu/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=1581263&site=eds-live&scope=site&profile=edsebook
Laitala, K., Klepp, I. G., & Henry, B. (2017). Global laundering practices–alternatives to machine washing. Retrieved From: https://oda.oslomet.no/oda-xmlui/handle/10642/5313
LG. (2020). New Survey Reveals US Consumers Will Do Almost Anything To Avoid Doing A Second Load Of Laundry. Cision. retrieved From: https://www.prnewswire.com/news-releases/new-survey-reveals-us-consumers-will-do-almost-anything-to-avoid-doing-a-second-load-of-laundry-300480341.html
Mordor Intelligence. (2021). United States Laundry Appliances Market - Growth, Trends, Covid-19 Impact, And Forecasts (2021 - 2026). Retrieved From: https://www.mordorintelligence.com/industry-reports/united-states-laundry-appliances-market-industry
Office of National Statistics. (2021). Employment in the UK: January 2021. Retrieved From: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/employmentintheuk/january2021
Payne, A., Frow, P., Steinhoff, L., & Eggert, A. (2020). Toward a comprehensive framework of value proposition development: From strategy to implementation. Industrial Marketing Management, 87, 244-255.
Saleem, S. (2020). Consumer Buying Behavior Towards Purchase Of Washing Machines With Reference To Tiruchirappalli District. Retrieved From: http://www.jctjournal.com/gallery/181-sep2019.pdf
Santander. (2021). Germany: Reaching the Consumer. Retrieved From: https://santandertrade.com/en/portal/analyse-markets/germany/reaching-the-consumers?url_de_la_page=%2Fen%2Fportal%2Fanalyse-markets%2Fgermany%2Freaching-the-consumers&&actualiser_id_banque=oui&id_banque=0&memoriser_choix=memoriser
Statista. (2020). Washing machines and dryers market revenue worldwide from 2013 to 2025. retrieved From: https://www.statista.com/statistics/1168550/washing-machines-and-dryers-market-size-worldwide/
Statista. (2021). Household Appliances in Germany. Retrieved From: https://www.statista.com/outlook/dmo/ecommerce/furniture-appliances/household-appliances/germa
Statista. (2021). Percentage of households with a washing machine in the United Kingdom (UK) in 2018, by household composition. Retrieved From: https://www.statista.com/statistics/289318/distribution-of-household-washing-machines-in-the-uk-by-household-composition/
Statista. (2021). Percentage of households with washing machines in the United Kingdom (UK) from 1970 to 2018. Retrieved From: https://www.statista.com/statistics/289017/washing-machine-ownership-in-the-uk/
Appendix 1: Personal Income Growth in US (LG, 2020)
Appendix 2: Most Considered Washing Machine Features in UK (Statista, 2021)
