CB Assignment - Team 32 (Edited_by_Tooba)

download CB Assignment - Team 32 (Edited_by_Tooba)

of 17

Transcript of CB Assignment - Team 32 (Edited_by_Tooba)

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    1/17

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    2/17

    Team 32, SENSEO Concept Mapping RSM, Erasmus University

    Table of Contents

    Section III.1: The Brand Concept Map ....................................................................................................... 5

    Section III.2: Nature & Categories of Associations .................................................................................... 5

    Section III.3: Strategic Implications of Associations .................................................................................. 6

    Section IV.1: Problem Areas ...................................................................................................................... 8

    Unclear positioning based on target groups and their needs ............................................................... 8

    Link between product functionality & occasions .................................................................................. 9

    Points of purchase ............................................................................................................................... 10

    Section IV.2: Recommendations ............................................................................................................. 10

    Commercial idea .................................................................................................................................. 11

    Bibliography ................................................................................................................................................... 0

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    3/17

    Team 32, SENSEO Concept Mapping RSM, Erasmus University

    Section I: Introduction Nowadays, coffee plays an important part in people's lives; whether it is something they love towake up with or it is the perfect drink to serve when they socialize. Therefore, it is worth theeffort to examine consumers associations and further analyze their deep motives for purchasing

    this much consumed product.

    The topic of this report however, is not the coffee itself but rather the brand SENSEO, which isbranded by Dutch companies Philips and Douwe Egberts. This coffee brewing system was firstintroduced in the Netherlands in February 2001, followed by numerous countries worldwide.According to Philips, by 2005 ten million machines and four billion pads had been soldworldwide and by 2008, there were over 20 million machines (Philips press release, 2011). Thissuccessful launch and roll-out across Europe was mainly achieved because of the innovativenessof this product. It is considered by many as a ground-breaking coffee system. SENSEO ssimple design and advanced but easy to use technology are its trademarks. It successfullycombines the high quality design from Philips, with convenient Aroma Lady SENSEO coffee

    pods filled with fine roasted ground coffee from experts Sara Lee International (Douwe Egberts).The strong marketing campaign has also played a key role in this success.

    SENSEO is considered as an excellent choice for this report as we aim to uncover c onsumersdeep motives for preferring or disliking this innovative by its nature product. Moreover, itsproducers constantly try to improve SENSEO s functionality and design by launching neweditions on a regular basis. With this report we attempt to contribute to Philips efforts to increasethe value of the product as well as to strengthen its image as a well-recognized brand. It isessential to deliver a strong and adequate message to consumers, which will help Philips buildstrong credentials and strengthen the association between the product and the brand.

    This report aims to identify the network of strong, favorable and unique brand associations inconsumers memory for SENSEO. Brand Concept Maps are an essential technique used in theunderlying research of this report to elicit brand association networks (maps) from consumers.The main objective of the research is to design a consensus map of SENSEO, which willinclude the core brand/product associations that define the brands image. The map will alsoillustrate which product associations are linked directly to the brand, which associations arelinked indirectly to the brand, and which associations are grouped together (John et. al, 2006).

    The ultimate goal of this report is to identify SENSEO s assoc iation networks by the means of concept mapping in order to construct brand concept maps for Philips and give furtherrecommendations for enhancement. It is interesting to understand if respondents intuitively think about Philips when being asked about SENSEO. Therefore, Philips will not be the topic of thisresearch but only SENSEO as a product. Based on the findings, Philips will be provided with acomprehensive & insightful proposal for further improvement of SENSEO.

    Context wise this report consists of three stages. Elicitation of associations is the first phasewhere a small sample of consumers will be randomly selected to extract associations regardingSENSEO. The same sample will be used in the next stage. We aim to elicit the most salient,verbal associations with unstructured or semi-structured interviews techniques like ZMET.Individual mapping will follow next as a second phase of this report. A sample of 20 respondents

    http://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Netherlands
  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    4/17

    Team 32, SENSEO Concept Mapping RSM, Erasmus University

    will be interviewed attempting to identify their deepest associations about SENSEO.Aggregation is the last stage where core associations will be selected based on their frequency of mention. The individual concept maps will be compared and a final map will be drawn in the endwhich will summarize the main connections and inter-relations between the links. Last but notleast, the research findings will be used to provide Philips with a cohesive set of

    recommendations which it can implement in order to improve SENSEO as a brand.

    Section II: Description of sample and method for interviewing

    In the elicitation stage of this study 20 participants were randomly selected and introduced to thetopic of this report. The female-male ratio of this sample is correspondingly 45-55%, i.e. 9women and 11 men took part in this study. Their age varies between 20 and 55 years and themean is calculated to be 33 years. Statistics indicate the same values for both genders separately.This sample is represented by people with different nationalities and marital and social status, andwho are currently residing in the Netherlands. Students represent 30% of this sample and the rest70% are full time or part time employees. Statistics also shows that 50% of the participants of this study have children. These demographic characteristics of the participants indicate a diversepool of consumers, which implies that they have different needs and shopping behavior that willbe explained further in this report. This will facilitate more comprehensive insights on howpeople perceive SENSEO.

    These participants were given instructions to collect a minimum of 5 digital images that wouldconvey their thoughts and feelings about SENSEO. The objective was to extract their visualassociations to the product. We did not mention Philips as we aimed to see if respondentsassociated SENSEO with Philips intuitively without having been asked directly. One week later, all the respondents returned with the requested materials and engaged in one hour personal

    interview to elicit their associations and deep motives regarding SENSEO. Depending on thestrength of SENSEO's associations to Philips, we further formulate our recommendations.

    The method used for interviewing is the well-known Zaltmans Metaphor Elicitation Technique(ZMAT), which uses qualitative research techniques to identify key brand associations and thenuses in-depth interviews with respondent to discover the links between these brand associations(John et. al, 2006). Laddering technique is used further to conduct individual in-depth interviewsin which a line of questioning proceeds from product characteristics to user characteristics (Johnet. al, 2006). The objective is to combine mental maps of consumers who are similar, which leadto the cause of purchasing particular products, in this case the coffee maker SENSEO. Theladdering technique consists of links or ladder of elements that represent the connection between

    products and the consumers perception process. It helps understand how consumers translateproduct attributes, through personal meanings associated with them (John et. al, 2006).

    There are two features of this theory that we focused on when using laddering technique. Sinceladdering represents a more contemporary approach to classical motivation research, we focusedon getting insight in the underlying motives pertaining to the consumption of SENSEO. Means-end-chain (MEC), developed by Guttman starts from a point of consumer motivation. It arguesthat motivation that causes certain behavior is based on the connection between tangible

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    5/17

    Team 32, SENSEO Concept Mapping RSM, Erasmus University

    characteristics and more abstract cognitive structures which further result in physical andemotional consequences derived from these attributes. These consequences lead to values held bythe consumer. At a more abstract level as described in the book, the consequences lead to valuesheld by the consumer. The laddering technique is therefore designed to identify and follow thechain of attributes consequences values (A-C-V) (Malhotra et.al, 2012).

    Our role as interviewers was to build up a rapport with participants and to make them feel relaxedand comfortable in order to respond with whatever comes to mind. The participants wererandomly split into four groups of 5 people and were separately approached by the four of us.The interviews were conducted in an informal atmosphere and were not recorded in order tocreate a more intimate environment and to provoke spontaneous reactions by the respondents.

    Participants were asked to introduce themselves in terms of some basic demographiccharacteristics such as their gender, age, marital and social status (students/employed). Next,they were asked whether they perceived themselves as regular or non-regular coffee drinkers, asthis is important when categorizing SENSEO s consumers into different target groups. It alsosheds light on better understanding their associations and deeper motives.

    All individual interviews had the same format and structure in order to have the highestconsistency of results as possible. This one consistent format and approach of interviewing wasdiscussed in advance and tested among a smaller pre-selected group of volunteers. After a finalmodel and plan of actions were formulated, tested and agreed upon, the actual interviews wereconducted next. The interviews rotated around three basic questions based on the A C V chain.They all started with a general question: When you think of SENSEO what comes to mind? . The idea behind this question is to elicit all the thoughts or feelings people have regardingSENSEO. The associations were further ranked to better illustrate the importance and thepreference of associations. Further, every time a respondent named an association we asked:Why do you have this association? and How important is this to you? in order to get deeperinto their associations, to define their level of involvement to the product and its attributes, andfinally to derive some salient motives that might reveal their personal values.

    Those associations were further linked to the images which participants were asked to collectbeforehand. After we elicited a minimum of three to five general associations about SENSEOwe moved forward and asked them to explain their visual associations. For all of them separatelywe asked Why did you pick this picture? . Afterwards, we followed with What do youassociate it with? , Is this important to you? and Why is this important to you? . Theparticipants were also asked to make their own collage of the chosen images which helps betterillustrate their associations and visualize the links between them. These individual collages arefurther used as a supportive material to construct the final brand map and can be found inAppendix X. These collages together with the extracted deep motives will help us build theconsensus map with the core product and/or brand associations that define the brands image(Philips) and show which of the SENSEO associations are linked directly to the brand, whichassociations are linked indirectly to the brand, and which associations are grouped together.

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    6/17

    Team 32, SENSEO Concept Mapping RSM, Erasmus University

    Section III: Brand Concept Elicitation

    In this section of the report, we will discuss SENSEO s brand concept map which we createdbased on the associations elicited from our 20 respondents. First, we will analyze all associationsin terms of their nature and classification. Thereafter, we will determine the strategic implications

    these brand associations hold for SENSEO. Lastly, we will identify possible problem areas inthis concept map that SENSEO must focus on, in order to improve its brand image.

    Section III.1: The Brand Concept MapThe aggregated brand concept map for our 20 respondents was as follows:

    Section III.2: Nature & Categories of AssociationsPrior to establishing the nature and classification of all associations presented in the aggregatedbrand concept map, it is prudent to indicate the characteristics of consumers these associations

    were elicited from. This will allow us to add further meaning to our research findings bypinpointing which associations are typical of which consumer target group. As we ensured ourrespondent set was representative of SENSEO s actual consumer base, the research findingsregarding consumer characteristics will be of strategic importance to SENSEO.

    In our research, various categories of consumers were observed based on three aspects. Firstly, interms of frequency of consumption , two groups were identified namely regular coffee drinkersvs. non -regular coffee drinkers. Regular coffee drinkers had frequent exposure to the product

    Figure 1: Brand Concept Map for Senseo

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    7/17

    Team 32, SENSEO Concept Mapping RSM, Erasmus University

    in question and hence possessed higher knowledge accessibility than non -regular coffeedrinkers . As will be seen later in the research report, these two groups exhibit vastly differentneeds with respect to our product. Therefore, it is logical to also classify our respondents basedon their need states ; this again results in two contrasting groups namely energy seekers andexperience enthusiasts based on whether they expect SENSEO coffee to deliver a quick burst

    of energy or a prolonged sensual and relaxing experience.A further classification in terms of need states is in terms of Maslows h ierarchy of needswhereby energy seekers have a base desire to feel more alert and thus display a physiologicalneed. In contrast, experience enthusiasts crave a sophisticated consumer experience of taste,relaxation and most importantly, sharing with their friends, family and colleagues. Coffee doesnot just make them more alert; it gives them a higher sense of belonging and self-esteem as theyuse it to connect with others and to feel good about themselves. Therefore, there is a cleardifference in the type of goal attainment these two groups expect from SENSEO.

    Third and finally, our consumers can be segmented in terms of the consumption situations inwhich they consume SENSEO coffee. Some consumers use SENSEO coffee in group

    situations such as fa mily gatherings, at the office and at breakfast where sharing can beexperienced, whereas others consume SENSEO in solitary consumption situations such aswhile studying or at breakfast, depending on their living situation. This classification istherefore indicative of consumers lifestyle and values.

    Section III.3: Strategic Implications of AssociationsThe interaction between these various consumer groups helps us identify which associations theypossess in our brand concept map. For example, those that are regular coffee drinkers are moreattuned to product features and in our interviews, had more to say about the primary associationof coffee. The secondary associations identified in terms of coffee were bad quality,fragrance, choice, coffee beans, coffee pads and foamy layer. It is important to note here

    that regular coffee drinkers exhibited negative associations about SENSEO s coffee qualitysaying that it was poor and cheap leading to the tertiary association of a compromise . On theother hand, those that did not have much experience with coffee and hence were non -regularcoffee drinkers said they admired SENSEO s fragrance, choice offering and its foamy layer. Itcan therefore be concluded that SENSEO s coffee quality may be good enough to please non -regular coffee drinkers but it is certainly not sufficient for regular coffee drinkers, which istheir main target market.

    However, the situation is not completely disappointing when it comes to product features.Although general perception of coffee quality was low, all consumers in our research appreciatedthe design of SENSEO s coffee maker (seen as a primary association on the brand conceptmap). Positive secondary associations related to design were innovativeness and simplicityand this was further complimented by an interconnecting primary association of ease -of- usewith its secondary association of speed. These positive associations were largely typical of energy seekers in solitary consumption situations who often in the morning wanted a simplemachine that would give them coffee with no hassle. SENSEO clearly met this need. However,when it came to group consumption situations, consumers need for sharing was limited as bydesign as SENSEO machines only allow two cups of coffee at a time which is cumbersome in a

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    8/17

    Team 32, SENSEO Concept Mapping RSM, Erasmus University

    large group. It must be noted though that this problem was only identified by one respondentamongst 20, so it may not be of strategic importance.

    Several associations were observed in the brand concept map for SENSEO s experienceenthusiasts. These related to higher -order needs such as relaxation, warmth, cosiness andcomfort. This consumer group displayed a strong example of psychophysics such that the nameSENSEO combined with the coffee evoked their five senses and stimuli such as fragranceand taste enhanced their experience with rich sensations. The name SENSEO thereforegenerates significant brand equity. Italy was also mentioned as a weak secondary association which links back into the cultural richness of the consumers product experience. Ideal solitaryconsumption situations that experience enthusiasts displayed were sitting comfortably on acouch on a rainy day , reading a book and relaxing with their rich and aromatic cup of coffee.Depending on whether these were regular or non -regular coffee drinkers, SENSEO couldeither improve the experience with positive product features or tarnish it with bad quality.

    A general observation therefore is that perception of SENSEO greatly depended on whetherconsumers were regular coffee drinkers, what need state they were trying to evoke and finally,

    whether it was a group or a solitary consumption situation i.e. the context. For people who wantan energy boost, there is a change in actual state as they are less alert than usual. For people whowant an experience, there is a change in desired state as they want to feel more relaxed and achange in ideal self as they want to feel as if they belong more closely to a group. Furthermore,based on the need consumers recognize (either energy or experience), post-consumptionevaluations are formulated. If the need is for energy and only experience is delivered, cognitivedissonance is experienced and the post-consumption evaluation is negative and vice versa. Needfulfilment must occur for post-consumption evaluations to be positive and consumers experiencedissatisfaction if there is no need fulfilment and post-consumption evaluations are negative.

    Another valuable research finding is that regular coffee drinkers i.e. the target segment that

    generates the most revenue, only moves SENSEO from their evoked to their consideration setdue to two main reasons. One, that the coffee provides a quick and cheap energy boost and two,the coffee machine is easy to use. Both these factors are particularly useful in consumptionsituations such as breakfast or at the office where consumers have low energy thus lowercognitive capacity. This leads to limited problem solving as there is a lack of resources and thusthere is a higher need for simplicity. Compensatory decision-making is applied with energy,design and ease of use compensating for SENSEO s poor performance on quality.Therefore, SENSEO therefore meets their bare minimum expectations, which is hardly an idealsituation for a brand that wants to maximize customer loyalty both in terms of attitudinalcommitment and purchase behaviour.

    Moreover, an association in our research findings that may be of strategic concern to SENSEOis that of Blokker. Although this association did not meet the threshold to be included in theaggregated brand concept map, presence of this association is extremely dangerous as it furtherexacerbates regular coffee drinkers perception of SENSEO as a cheap energy boost rather thana rich coffee experience. This can alienate a lot of customers. Lastly, it must be noted thatassociations such as Philips and Douwe Egberts were largely implicit such that they may havebeen top of mind for consumers but were considered obvious enough to not mention. The implicit

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    9/17

    Team 32, SENSEO Concept Mapping RSM, Erasmus University

    association of Philips in particular is impo rtant as the parent brand had positive spill-overeffects and it gave SENSEO credibility in customers minds.

    In conclusion, SENSEO s perception as reflected by the brand concept map greatly variesbetween favourable and unfavourable, depending on consumer characteristics. A summary of

    perceptions depending on frequency of consumption, need state and consumption situationhas been provided in the matrix below, and will be used as a guideline to indicate problem areasin the next section and thereafter provide strategic recommendations to SENSEO.

    Figure 2: Matrix of Perceptions for SENSEO

    Section IV: Brand Map Improvement

    Section IV.1: Problem AreasBased on associations that our respondents have when thinking of SENSEO and the conceptualmap we drew, we discovered several problem areas of which we think Philips should pay closerattention to. One such problem area we found was that theres no clear positioning for the productand brand SENSEO based on target groups and their demands. Another problem area is that thefunctionality of SENSEO coffee machines does not completely support the occasions of drinking coffee as expressed by the respondents in our interviews. And finally, Philips decisionto have shops in the likes of Blokker and Kijkshop as points of purchase for their SENSEOcoffee machines is damaging their image of offering a premium product. The aforementionedproblems will be described in more detail below.

    Unclear positioning based on target groups and their needsWhen conducting the interviews the majority of the respondents were very able to describe whatfeel SENSEO evokes in them, as well as how they experience drinking a cup of coffee. In theend, the answers given by our respondents show two extremes in the way SENSEO isperceived as a product, but also as a brand by its consumers. An important remark here, however,is that this differs between consumers who are regular coffee drinkers versus consumer who areclearly not.

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    10/17

    Team 32, SENSEO Concept Mapping RSM, Erasmus University

    On the one hand SENSEO is perceived as a budget brand and product that enables a largegroup of consumers to enjoy an average and quick cup of coffee at the comfort of their home.Moreover, SENSEO offers consumers a wide range of affordable coffee pads and coffeemachines that are customizable to ones personal taste. Another finding derived from ourinterviews showed us that SENSEO typically suits consumers that are easily satisfied with any

    kind of coffee, and particularly those who are simply seeking a quick energy boost through a cupof coffee. With its simplistic design that allows for ease-of use and speed SENSEO coffeemachines, and thus in part Philips as a brand, is praised for being a timesaver that gives us littlehassle and instead convenience in making coffee. This in turn compensates for the lack of perceived coffee quality and the experience while consuming coffee as was indicated by severalrespondents in our interviews, which brings us to the second group of consumer we identified.

    Where one group of consumers links SENSEO to everyday situations where one seeks a quick and affordable cup of coffee, the other half is more so after a coffee of higher quality in everysense. An experience that SENSEO does not quite live up to according to them. The formergroup of consumers as described has low demands and sees coffee, and SENSEO s offerings inparticular, as an inexpensive option to fulfil those demands, whilst the latter group of consumershas much higher coffee demands. These off course have to be dealt with in a different way as thisgroup truly values a genuine coffee experience. Coffee for them is all about relaxation andcomfort and coffee that positively tingles their senses of both smell and taste is of utmostimportance to them. They would much rather have thoughts of Italy pop up whenever they enjoya cup of coffee than their current, negative viewpoint of sour-tasting SENSEO coffee. Thebattle between coffee made with pads versus beans was also raised, where the preference forbeans was obviously much more. One coffee brand that came up during the interviews that fitsthis high-demand group better was Nespresso, which is considered as upscale with advancedmachines, costly coffee pads and more of a luxury feel to it.

    This goes to show that the associations that should be strengthened to better position SENSEO based on target groups and their needs are its perceived quality from the consumers point -of-view and the coffee experience it is supposed to offer.

    Link between product functionality & occasionsBased on the interview we consider Philips as an implicit association, yet one with a householdname status and quality standard, which is transferred to its SENSEO coffee machines. With

    just three buttons allowing straightforward use SENSEO machines are both innovative andminimal in terms of product design u nderscoring Philips philosophy of sense and simplicity.

    When conducting the interviews the majority of the respondents described occasions in whichthey typically use their SENSEO machines and thus when they consume their coffee. It allcame down to either occasions where one has a cup of coffee individually or with a small groupof people during, for instance, breakfast, or occasions where coffee is shared with (many) otherswhile gathering. Even though SENSEO coffee machines are of outstanding quality in terms of design, these typically different occasions are to be treated inversely in terms of productfunctionality.

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    11/17

    Team 32, SENSEO Concept Mapping RSM, Erasmus University

    The current design allows for two cups of coffee to be made simultaneously, with little hassle andwith great speed. According to the majority of our respondents this makes SENSEO the idealcoffee machine for hasty moments like a quick breakfast before heading to work while getting thekids ready for school. Instead, moments of sharing a cup of coffee during, for instance, agathering of family and/or friends was also mentioned quite a lot as a typical coffee occasion.

    SENSEO, however, supports occasions like these in a lesser extent, which asks forstrengthening the association that consumers have with its product design (i.e. functionality).What is important here is that consumers should have associations with SENSEO that fit betterwith the functionality of the current product design. Also, the occasions with which peopleassociate SENSEO with are an important issue that needs to be dealt with, i.e. either momentswhere one has a cup of coffee individually or with small groups of people or moments of sharingwith (many) others, and not both.

    Points of purchaseThe last (minor) problem area we identified pertains to the usual purchase points of theSENSEO coffee machines. We believe that Philips decision to link their SENSEO brand toand sell their products in purchase points that are generally considered cheap or budgetdamages their ability to claim that they are delivering a high quality, premium experience.Blokker is, for instance, one such a purchase point mentioned by our respondents which, in ouropinion, does not totally fit SENSEO s image of offering coffee machines and pads of highquality. We therefore propose to weaken the association with points of purchase like theaforementioned.

    Section IV.2: RecommendationsAfter analysing some of the problem areas in SENSEO s positioning and marketing strategy,we have collected a set of recommendations, which we feel will greatly help the image of the

    brand. First of all, embracing the image of the energy boost, and changing the association withSENSEO to make consumers view its use as an experience. Secondly, we suggest using acelebrity endorser to help push the product forward. These recommendations will be discussed inmore detail below.

    Given that energy boost is one of the strongest positive associations with brand, which hasproven its worth ever since SENSEO entered the market, we choose to embrace and reinforceit. However, given that one of the most negative associations for SENSEO is the taste of itscoffee, we suggest that the company puts more focus on the experience.

    Considering that SENSEO has just introduced the new Sarista machine, which is destined to atleast partially solve the taste issue by using real coffee beans, we leave the product aspect out of the proposal. However, we do believe that they can do more to help change the negativeassociation consumers have with the taste of their coffee.

    In the short-run, Philips should allow for co-creation of its coffee bean favours, which can bringgrater satisfaction to consumers. An example of that could be setting up an online contest for thebest taste idea (type of roast, intensity, country of production), letting other consumers vote on it.The idea with the highest votes is released into production, and the winner received a commissionfrom the sales revenue of the beans. This way SENSEO can not only benefit from letting

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    12/17

    Team 32, SENSEO Concept Mapping RSM, Erasmus University

    consumers know they are heard and appreciated, but also creating an online community of SENSEO users, making it a more exclusive, respectable product. Another way of solving thetaste issue, would be allowing the customers to use their own beans, and sell the plasticcontainers for re-fill separately. In the long run, the company may try to find strategic partners tocollaborate with, to provide the customers a wider array of coffee beans to pick from. Even

    though currently the company is already offering 6 different flavours, these still all come fromthe same brand Douwe Egberts. This limits consumers choices, and doesnt allow exploitingthe full potential of making SENSEO coffee an experience. Adding other brands to the list of approved suppliers of SENSEO coffee beans would give users more choice in their favouritecoffee, and the use of SENSEO less restrictive and repetitive.

    Furthermore, in order to enhance the experience association with SENSEO, Philips shouldreconsider its distribution strategy. Currently, SENSEO products can be found at low-enddistributors in the Dutch market such as Blokker. This neutralizes SENSEOs image as apremium product and leads to negative associations such as cheap and bad quality. In thelong-term therefore, we advise Philips to move towards more up-market distributors such asCarrefour to bolster SENSEOs reputation as a premium product.

    In terms of promotion, we would advise SENSEO to use a celebrity endorser. We suggestshowing a celebrity with a super busy lifestyle where he or she picks one flavour in the morningto get that quick burst of energy and one flavour in the evening to relax after a long day at work.We decided that the perfect candidate to use for the brand image would be Robert Downey jr.Regarded to as an attractive, energetic person, who appreciates the ease and simplicity of design,but at the same time quality. We also believe that people have a very strong affinity with his mostpopular movie character Iron Man, which we could use to our advantage.

    Commercial idea In order to support our marketing campaign and increase exposure, we have also decided to

    utilize a TV commercial which should reach the majority of SENSEOs consumers. Thestoryline for this TVC will be as follows:

    First a scene where Robert Downey Jr. as Iron Man enjoys a quick cup of coffee to gain anenergy boost to power him up before heading out to work i.e. saving the world, in the morning.Followed by a scene where he arrives back home as sophisticated, sexy Robert Downey Jr. thatwants to relax with a cup of coffee to illustrate the SENSEO experience.

    We believe that by using such a TVC,SENSEO would suggest that there is something isSENSEO for everyone (whether you drink it in the morning to energize or in the evening torelax) and imply that its design and quality can serve both of those purposes perfectly. This will

    therefore strengthen SENSEOs position in terms of experience. The goal is to have thecommercial go viral for maximum exposure and buzz creation.

    The recommendations we have provided to Philips with regards to SENSEO can besummarized in the following:

    Short-term Recommendations Long-term Recommendations

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    13/17

    Team 32, SENSEO Concept Mapping RSM, Erasmus University

    Co-creation with consumers Increase Coffee Supplying Companies

    Celebrity Endorsement + TVC + ViralMarketing Campaign

    Move to more premium points-of-purchase

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    14/17

    Keeps me going

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    15/17

    Team 32, SENSEO Concept Mapping RSM, Erasmus University

    Flavor made for energy.

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    16/17

    Team 32, SENSEO Concept Mapping RSM, Erasmus University

    The ultimate experience

  • 7/30/2019 CB Assignment - Team 32 (Edited_by_Tooba)

    17/17

    Bibliography

    John D.R., Loken B., Kim K., Monga A.B., (2006), Brand Concept Maps: A Methodology forIdentifying Brand Association Networks, Journal of Marketing Research, Vol. 43, No. 4,pp. 549-563Published

    MalhotraN.K., D.F. Birks, P. Wills (2012), Marketing Research: An Applied Approach, 4th Edition,Pearson

    Philips press releas e "Philips backgrounder SENSEO reaches 10 million happy users" , September 21,2011. Retrieved 10October 2012

    http://www.newscenter.philips.com/main/standard/about/news/news/archive/news2005/article-15115.wpdhttp://www.newscenter.philips.com/main/standard/about/news/news/archive/news2005/article-15115.wpdhttp://www.newscenter.philips.com/main/standard/about/news/news/archive/news2005/article-15115.wpdhttp://www.newscenter.philips.com/main/standard/about/news/news/archive/news2005/article-15115.wpd