Section 4: Consumers and Stakeholders
BBQ Pringles
By: Michael Davis, Joshua Catchpole, and Hollie Couch
Baker College
Consumer
Current Consumer Characteristics
Current consumers have a wide array of characteristics when it comes to making buying-decisions, as technology advancements have impacted how consumers can buy products and market changes have impacted buying behaviors. One characteristic of consumers is that they expect to be able to buy a product or service at any time of day because of online and mobile shopping trends (Bolen, 2019). Consumers are also in control of their shopping and buying experience because they are more willing to do research and look for product alternatives to get exactly what they want (Bolen, 2019). Current consumers do expect and appreciate a more personal experience, which could either include human interaction with customer service employees or personalized product recommendations on a company's website (Hausler, 2017).
Consumers are starting to trust word-of-mouth over brand image due to conflicting brand images and their low customer service or product quality rates (Hausler, 2017). Furthermore, consumers are becoming more involved with social media and sharing their experiences online, so businesses need to be aware of their current customer experience and find ways to improve it (Hausler, 2017). Due to fast shipping times and mobile shopping, consumers want products and services as soon as possible and would likely be disappointed by long wait times (Hausler, 2017). With how prevalent social media has become in many consumer’s lives, they are more likely to talk about their experiences online and recommend a brand where they had a positive experience and felt valued as a customer. With regards to Pringle's, consumers are more likely to discuss limited-edition products online and share their favorite flavors.
Demographics
The current demographics of Pringles are consumers between the ages of 15-19, 24-30 and 50-64 because the snack appeals to younger and older adults who have the extra money to buy the product but don’t want the fat and oil that most snack chips have (“Pringles”, 2019). According to Info Scout, it is mainly African Americans and Caucasian consumers buying the product, while Asian and Hispanic Americans still buy the product but not as often (“Pringles”, 2019). The typical salary of a Pringle consumer varies between under $20,000, between $20,000-$30,000, and $80,000-$100,000 a year (“Pringles”, 2019). This statistic means the career and educational background of consumers varies as well because most university graduates have higher-paying jobs while consumers who are still in high school have lower-paying jobs. The buying habits of Pringles does not seem to greatly differ between consumers who have a college degree and consumers who did not go to college, as most consumers want a healthier or newer snack option instead of the same regular chip snacks (“Pringles”, 2019). A majority of consumers do have children, so that will contribute to the variation of consumer ages and salaries since many of them may be buying the snack for their young children (“Pringles”, 2019). There is also very little difference between the Pringle buying habits of males and females, as either parent is likely to buy the product for their child and young adults tend to buy similar snack items regardless of gender (“Pringles”, 2019).
Psychographics
The psychographics of Pringle’s consumers varies the same way the demographics do, as values and buying habits vary based on age and gender. Consumers tend to prefer variety over price or quantity, as they like being able to buy one of a hundred different flavors of chips instead of only one of a few flavors (Meredith, 2019). Consumers find fulfillment in family, as consumers often have children and are two-income households (Meredith, 2019). Pringle’s consumers are loyal and will typically buy from the same brands or routinely buy the same product (Meredith, 2019). They buy Pringles as a part of weekly grocery shopping and during special occasions when limited-edition flavors are released. Consumers are concerned with health, so they appreciate the lower calories and fats in Pringles (Meredith, 2019). They are also concerned with saving money and keeping on track with a monthly budget, so the reasonable price of the product appeals to many consumers. Furthermore, consumers are also environmentally conscious and prefer buying from brands that have a reduced environmental impact, as Pringles packaging is better for the environment than many plastic bags.
Stakeholders
Pringles is owned by Kellogg's take a lot of corporate responsibility when it comes to engaging with stakeholders. "Across our value chain, we engage with a wide variety of stakeholders to inform our corporate responsibility work and advance our company's commitments" (“Kellogg’s”, 2019).
Primary Stakeholders:
Employee's
Shareowners
Board of Directors
Customers
Consumers
Primary stakeholders have a direct impact on the company just as the company has a direct impact on them. If the company loses sales, then Kellogg's and its employees would be directly affected. The Board of directors is the most common form of stakeholders, as they make decisions and monitor the business to ensure the company is making a profit and performing in the best interest of other stakeholders. Kellogg's does an excellent job of engaging with their stakeholders, and they do it in a variety of different ways. Employees are important stakeholders because it allows Kellogg's to collect data from employee satisfaction surveys, education programs, volunteer experiences, and company meetings. These shareowners perform conference calls, regular financial reports, individual meetings, and investor relations website. Customers can take surveys, attend regular meetings, and be a part of partnership programs. Kellogg's provides great resources to show investors why they should invest, and how their actions play a vital role in business decisions.
Secondary Stakeholders:
Government Leaders
Local Communities
NGOs
Secondary stakeholders do not have a direct impact on the company; however, the company can impact them. For instance, Pringles factories create jobs that improve local communities and boost local markets. Kellogg understands that secondary stakeholders are important to their company although they don't have a direct relationship with the company. Kellogg's focuses on government leaders, local communities and NGOs. Government leaders are engaged with by offering them plant tours, conference attendances, and regular meetings through emails. Kellogg's also engages with its local community by sponsoring local events, disaster relief efforts, and partnering in community programs. Kellogg's promises to all primary and secondary stakeholders that they are out to make this world a better place by feeding people in need.
Target Market
Proposed Primary Target Market
The primary target market of Pringles is both males and females below the age of 20, but older than 10. They do not generally have an income, and if they do it's quite low and their general occupation is being a student. The reason this is the main target market is that parents are much more willing to buy what their kids like, giving the children the purchasing power over them and stackable chips such as Pringles are neat and fit nicely in packed lunches or even lunches sold as schools. If kids are interested in a product, they will remind their parents of the product until they purchase it generally. Pringles as a product is not so overly expensive that parents give normal fiscal barriers to purchase for their children, and chips are something parents can enjoy as well. There are over 22 million teenagers in the United States between the age of 15-19 years old and is considered an untapped market that, which we can take advantage of to better sell our product ("US Census Bureau"). Teens are more susceptible to brand loyalty when they believe that a company is marketing solely to them.
Proposed Secondary Target Market
The secondary market for Pringles is the parents of these said children or midrange aged adults in general. In the primary market we target both female and male teens alike, however, we will not market specifically away from gender, the focus will be on males age 25-35, as women, especially mothers, tend to be more health-conscious of what their children are eating. Whereas men and both teenage boys are girls are less health-conscious of their diet and what they are eating. This group will likely be far larger earners financially than teenagers, but also do not want to grossly overspend on groceries, especially snacks like Pringles. Keeping the product affordable, which is believe it currently is and marketing secondarily towards fathers and young men should result in a winning formula in the secondary target market.
References
Bolen, A. (2019). Seven characteristics of the modern consumer. Retrieved from https://www.sas.com/en_us/insights/articles/marketing/modern-consumer.html
Hausler, S. (2017, September 27). 7 Characteristics of the Modern Consumer. Received from https://smartercx.com/7-characteristics-modern-customer/
Kellogg's. (2019). Retrieved November 23rd, 2019, from http://crreport.kelloggcompany.com/EngagingStakeholders
Meredith, A. (2019, August 08). How to Use Psychographics in Your Marketing: A Beginner's Guide. Retrieved from https://blog.hubspot.com/insiders/marketing-psychographics
Pringles. (2019). Retrieved from https://snapshot.numerator.com/brand/pringles
US Census Bureau. (n.d.). Retrieved from https://www.census.gov/
By: Michael Davis, Joshua Catchpole, and Hollie Couch
Baker College
Consumer
Current Consumer Characteristics
Current consumers have a wide array of characteristics when it comes to making buying-decisions, as technology advancements have impacted how consumers can buy products and market changes have impacted buying behaviors. One characteristic of consumers is that they expect to be able to buy a product or service at any time of day because of online and mobile shopping trends (Bolen, 2019). Consumers are also in control of their shopping and buying experience because they are more willing to do research and look for product alternatives to get exactly what they want (Bolen, 2019). Current consumers do expect and appreciate a more personal experience, which could either include human interaction with customer service employees or personalized product recommendations on a company's website (Hausler, 2017).
Consumers are starting to trust word-of-mouth over brand image due to conflicting brand images and their low customer service or product quality rates (Hausler, 2017). Furthermore, consumers are becoming more involved with social media and sharing their experiences online, so businesses need to be aware of their current customer experience and find ways to improve it (Hausler, 2017). Due to fast shipping times and mobile shopping, consumers want products and services as soon as possible and would likely be disappointed by long wait times (Hausler, 2017). With how prevalent social media has become in many consumer’s lives, they are more likely to talk about their experiences online and recommend a brand where they had a positive experience and felt valued as a customer. With regards to Pringle's, consumers are more likely to discuss limited-edition products online and share their favorite flavors.
Demographics
The current demographics of Pringles are consumers between the ages of 15-19, 24-30 and 50-64 because the snack appeals to younger and older adults who have the extra money to buy the product but don’t want the fat and oil that most snack chips have (“Pringles”, 2019). According to Info Scout, it is mainly African Americans and Caucasian consumers buying the product, while Asian and Hispanic Americans still buy the product but not as often (“Pringles”, 2019). The typical salary of a Pringle consumer varies between under $20,000, between $20,000-$30,000, and $80,000-$100,000 a year (“Pringles”, 2019). This statistic means the career and educational background of consumers varies as well because most university graduates have higher-paying jobs while consumers who are still in high school have lower-paying jobs. The buying habits of Pringles does not seem to greatly differ between consumers who have a college degree and consumers who did not go to college, as most consumers want a healthier or newer snack option instead of the same regular chip snacks (“Pringles”, 2019). A majority of consumers do have children, so that will contribute to the variation of consumer ages and salaries since many of them may be buying the snack for their young children (“Pringles”, 2019). There is also very little difference between the Pringle buying habits of males and females, as either parent is likely to buy the product for their child and young adults tend to buy similar snack items regardless of gender (“Pringles”, 2019).
Psychographics
The psychographics of Pringle’s consumers varies the same way the demographics do, as values and buying habits vary based on age and gender. Consumers tend to prefer variety over price or quantity, as they like being able to buy one of a hundred different flavors of chips instead of only one of a few flavors (Meredith, 2019). Consumers find fulfillment in family, as consumers often have children and are two-income households (Meredith, 2019). Pringle’s consumers are loyal and will typically buy from the same brands or routinely buy the same product (Meredith, 2019). They buy Pringles as a part of weekly grocery shopping and during special occasions when limited-edition flavors are released. Consumers are concerned with health, so they appreciate the lower calories and fats in Pringles (Meredith, 2019). They are also concerned with saving money and keeping on track with a monthly budget, so the reasonable price of the product appeals to many consumers. Furthermore, consumers are also environmentally conscious and prefer buying from brands that have a reduced environmental impact, as Pringles packaging is better for the environment than many plastic bags.
Stakeholders
Pringles is owned by Kellogg's take a lot of corporate responsibility when it comes to engaging with stakeholders. "Across our value chain, we engage with a wide variety of stakeholders to inform our corporate responsibility work and advance our company's commitments" (“Kellogg’s”, 2019).
Primary Stakeholders:
Employee's
Shareowners
Board of Directors
Customers
Consumers
Primary stakeholders have a direct impact on the company just as the company has a direct impact on them. If the company loses sales, then Kellogg's and its employees would be directly affected. The Board of directors is the most common form of stakeholders, as they make decisions and monitor the business to ensure the company is making a profit and performing in the best interest of other stakeholders. Kellogg's does an excellent job of engaging with their stakeholders, and they do it in a variety of different ways. Employees are important stakeholders because it allows Kellogg's to collect data from employee satisfaction surveys, education programs, volunteer experiences, and company meetings. These shareowners perform conference calls, regular financial reports, individual meetings, and investor relations website. Customers can take surveys, attend regular meetings, and be a part of partnership programs. Kellogg's provides great resources to show investors why they should invest, and how their actions play a vital role in business decisions.
Secondary Stakeholders:
Government Leaders
Local Communities
NGOs
Secondary stakeholders do not have a direct impact on the company; however, the company can impact them. For instance, Pringles factories create jobs that improve local communities and boost local markets. Kellogg understands that secondary stakeholders are important to their company although they don't have a direct relationship with the company. Kellogg's focuses on government leaders, local communities and NGOs. Government leaders are engaged with by offering them plant tours, conference attendances, and regular meetings through emails. Kellogg's also engages with its local community by sponsoring local events, disaster relief efforts, and partnering in community programs. Kellogg's promises to all primary and secondary stakeholders that they are out to make this world a better place by feeding people in need.
Target Market
Proposed Primary Target Market
The primary target market of Pringles is both males and females below the age of 20, but older than 10. They do not generally have an income, and if they do it's quite low and their general occupation is being a student. The reason this is the main target market is that parents are much more willing to buy what their kids like, giving the children the purchasing power over them and stackable chips such as Pringles are neat and fit nicely in packed lunches or even lunches sold as schools. If kids are interested in a product, they will remind their parents of the product until they purchase it generally. Pringles as a product is not so overly expensive that parents give normal fiscal barriers to purchase for their children, and chips are something parents can enjoy as well. There are over 22 million teenagers in the United States between the age of 15-19 years old and is considered an untapped market that, which we can take advantage of to better sell our product ("US Census Bureau"). Teens are more susceptible to brand loyalty when they believe that a company is marketing solely to them.
Proposed Secondary Target Market
The secondary market for Pringles is the parents of these said children or midrange aged adults in general. In the primary market we target both female and male teens alike, however, we will not market specifically away from gender, the focus will be on males age 25-35, as women, especially mothers, tend to be more health-conscious of what their children are eating. Whereas men and both teenage boys are girls are less health-conscious of their diet and what they are eating. This group will likely be far larger earners financially than teenagers, but also do not want to grossly overspend on groceries, especially snacks like Pringles. Keeping the product affordable, which is believe it currently is and marketing secondarily towards fathers and young men should result in a winning formula in the secondary target market.
References
Bolen, A. (2019). Seven characteristics of the modern consumer. Retrieved from https://www.sas.com/en_us/insights/articles/marketing/modern-consumer.html
Hausler, S. (2017, September 27). 7 Characteristics of the Modern Consumer. Received from https://smartercx.com/7-characteristics-modern-customer/
Kellogg's. (2019). Retrieved November 23rd, 2019, from http://crreport.kelloggcompany.com/EngagingStakeholders
Meredith, A. (2019, August 08). How to Use Psychographics in Your Marketing: A Beginner's Guide. Retrieved from https://blog.hubspot.com/insiders/marketing-psychographics
Pringles. (2019). Retrieved from https://snapshot.numerator.com/brand/pringles
US Census Bureau. (n.d.). Retrieved from https://www.census.gov/
Hausler, S. (2017, September 27). 7 Characteristics of the Modern Consumer. Received from https://smartercx.com/7-characteristics-modern-customer/
Kellogg's. (2019). Retrieved November 23rd, 2019, from http://crreport.kelloggcompany.com/EngagingStakeholders
Meredith, A. (2019, August 08). How to Use Psychographics in Your Marketing: A Beginner's Guide. Retrieved from https://blog.hubspot.com/insiders/marketing-psychographics
Pringles. (2019). Retrieved from https://snapshot.numerator.com/brand/pringles
US Census Bureau. (n.d.). Retrieved from https://www.census.gov/
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