MBA SEM III

306

CONSUMER BEHAVIOUR

UNIT II Case Study

ITC -AASHIRWAD ATTA---- CHANGING ATTITUDE
,APPROACH OF INDIAN CONSUMER.
INTRODUCTION
Chitranjan Dar has every reason to smile. ITC Foods, the company he leads as Divisional Chief
Executive, has revenues of Rs 5,000 crore - despite being a late entrant into the $25-billion
Indian food industry. Last year, ITC Foods overtook the food business of India's largest
consumer goods company, Hindustan Unilever, in terms of revenue. It leads in the Rs 4,500crore branded atta category - its Aashirvaad brand has a 26 per cent market share. It is the third
largest player in the Rs 21,000-crore biscuit industry, giving stalwarts such as Parle Products and
Britannia Industries stiff competition. It leads in the cream biscuits category with a 26 per cent
market share.
Seated in his office on the sprawling premises of ITC's old tobacco factory in Bangalore, Dar can
barely contain his excitement about his company's newest product, Farmlite biscuits, a premium
oats-and-almond cookie. "One of our early learnings was that in India, taste is paramount in
anything that one does," he says, biting into a Farmlite biscuit. "Nobody is going to sacrifice
taste for the reason of health. It took us a while to develop something which will give us this
combInation." The biscuit, he says, is the first of a range of Farmlite healthy snacks.

mpany has been able to innovate in a cluttered market, and come up with differentiated products
in the mass and premium segments. Its deep pockets and willingness to pump money into the
foods business helped, but Dar says it hasn't quite been a cakewalk. The company's first biscuit,
called iBisc, bombed. Dar says iBisc was ahead of its time. "We realised that though we wanted
to be different, it was also important to be strong in conventional categories," he says.

That is why the company invested

in conventional categories, such as
glucose and cream biscuits, and
chips. But breaching the
strongholds of Parle and PepsiCo
is not easy. ITC's distribution
strength, built over decades, came
to its rescue. Its distribution
channels, which directly reach
more than two million outlets
nationwide and more than 4.5
million stores through
wholesalers, would be the envy of
any consumer goods company,
says Raghu Vishwanath,
Managing Director of Vertebrand
Management Consulting. "ITC
cleverly realised it has a startingpoint advantage in distribution,
and knew exactly how to reach big
and small outlets across the
country," he adds.
Although there was some
scepticism about stocking ITC's
food products in the early years,
the trust and credibility the
company created through its
distribution practice helped it
break the ice. Sanjiv Puri, ITC's
Divisional Chief Executive for
trade, marketing and distribution
of fast-moving consumer goods
(FMCGs), says: "It has helped us
drive penetration of FMCG
products across channels, outlets
and markets."
While the launch and distribution
of mass products gave the
company much-needed scale, it
wasn't a game changer, given that
rival brands such as Parle and Britannia had a combined share of 70 per cent of the biscuits
market. In noodles, ITC was pitted against Maggi, which had more than 75 per cent of the
market. The only way for the company to make a dent was to innovate. "Getting into
conventional categories was always part of the plan, but we were up against traditional hot

rivals," says Dar. "We realised that... we need to understand the consumer and make the
experience better. But consumer preference may not be the only driver. Therefore the need for
innovation - for having something differentiated in terms of packaging, communication or
product - would be very important for Sunfeast to become a strong brand."

The gap that the company could take advantage of was at the premium end. It would also
improve profitability, as margins were considerably higher than for basic biscuits and atta.
What followed was months of effort, with Welcomgroup chefs trying to perfect recipes that
could become successful brands. Dar says the chefs created as many as 40 or 50 options, and
some became successful premium brands such as Dark Fantasy, Chocofills, Choco Melts,
Delicious and, most recently, Farmlite.
Devendra Chawla, CEO of the Future Group's Food Bazaar, says ITC Foods succeeded in the
market because it went above the value chain and developed a market for value-added categories
above the basic level.
The strategy was timed well, as India was moving up the consumption curve, and even
consumers in small towns wanted premium products. For example, Dark Fantasy, priced at Rs 30
for a 75g pack sells in 450,000 outlets nationwide, out of which 100,000 outlets are rural.
Regional Preferences
Few customers are aware that the Aashirvaad atta in Delhi or Lucknow is not the same as in
Bangalore or Chennai. Dar says that special blends and granulations for different markets has
been key to ITC's success in a category where rivals have gone horribly wrong. He says: "We
realised that the blend that people like in the North may not be the same in the South. In the
South, which is not an atta-consuming market, atta has entered homes because it is considered a
healthy option. In the North, atta is consumed daily, and the look and granulation required there
are different." He says it took ITC three years of research before the atta finally hit the market.
Future Foods' Chawla agrees that customising food for regional preferences is important.
"Preferences change every 200 km," he says. "The dal in Maharashtra tastes different in Pune
and in Kolhapur. Similarly, the paratha in North India is made of wheat flour, but the one in
Kerala is

ITC realised it has a starting-point advantage in distribution, and knew how to reach big and
small outlets: Raghu Vishwanath MD, Vertebrand
Brand specialist Harish Bijoor, CEO of Harish Bijoor Consults, says: "India needs and demands
possibly 40 types of attas. ITC needs to invest in this through their R&D efforts. Catering to the
commonality-run market will dry up as an opportunity, as consumers flock to brands that offer
differentiations that they possibly don't even know they could crave."
Atta is emotional subject with Indians
MUMBAI: Atta is an emotional subject with Indian consumers and the quality of chappatis determines the mood
around the dining table. "If you have won that round, you are in business" says Ravi Naware, divisional chief
executive of ITC foods division in an exclusive interview.

KEY WORDS--INDIAN CONSUMER. MARKETING REGIONAL PREFERENCES, ATTITUDE MARKET SHARE

SUCCESS 1

QUESTIONS
Q 1 Traditionally atta market is dominated by local flour mills ,but ITC has changed
the scenario, what further is needed to grow ?
Q 2 In India 68 % population is rural based .What ITC needs to do to gain this
market share

SOLUTIONS
SWOT ANALYSISITC FOOD DIVISION
STRENGTH
1
2
3
4

A part of large corporate house

It has an extensive distribution network
Ashirwad Atta is quality product and well accepted by consumers
It has excellent insight of Indian Consumer

WEALNESS
1 Margins are constrained as it is a generic product
2 Many customers really cannot differentiate between quality product and
local product

3 Distribution and logistics costs are very high

OPPORTUNITIES
1 Market potential is very high
2 ITC can operate at large scale PAN India
3 Indian consumers attitude is changing and is more open to convenience
products
5 Rural customers are aspiring to become Urbinite
THREATS
1 Local players have advantage of costs
2 Rural people yet to accept the concept po packaged Atta.
SOLUTIONS
ALTERNATIVE I
1 Company to continue to focus on health quality , convenience and
advantages of branded product
2 Utilise the existing strength of wide distribution network of ITC
Tobacco Division.
ALTERNATE II
1 To appoint Franchisees at district level to cater to local areas and
thereby reduce distribution / logistics costs
2 To offer further specific product quality of texture etc locally
3 Support Franchisees with National advt. & sales promotional
activities
CONCLUSION / MY OPINION
1 To adopt strategy of blend of both above solutions
2 To appoint Franchisees at smaller markets / Far off markets to
begin with.

Key concepts

Take home for students

1 Consumers tastes and lifestyle is changing and affects purchase

decisions
2 Marketing mix can change the consumers buying decisions.

MBA SEM I
106 BASICS OF MARKETING
UNIT II Case Study

NESTLE INDIA - MAGGI---CLALLENGE OF RE ENTRY

IN INDIAM KITCHEN
With the Maggi ban hitting sales of company's other products as well, Nestle India's new chief
Suresh Narayanan on Saturday said bringing the instant noodles brand back to the market is his
top priority as he sought to strike a conciliatory note with authorities.
The company has also identified other categories and looking at opportunities of introducing new
products to overcome the challenge that has resulted in the company recording its first quarterly
loss in over three decades.
"Task number one is to get Maggi back. That's an important part of what I will be focussing on,"
Narayanan, who took over as new Managing Director of Nestle India five days back, said in an
interaction with reporters here.

Seeking cooperation from authorities, he said: "It is my endeavour and those of my colleagues
that we come to with respect, with cooperation, with support from the authorities, I am not in a
confrontational frame.
"...Nestle is a part of this country. We will be a part of this country as we have been for the last
100 years respecting the laws of the land and also respecting all the authorities. It is my hope that
we are able to find a solution and we are able to move forward."

He, however, declined to 'hazard a guess' on how soon Maggi will be back on shelves saying the
matter is sub-judice as Nestle India has challenged the ban on Maggi by central food safety
regulator FSSAI in the Bombay High Court.
Narayanan said due to the ban, "a whole business segment has been dismantled" and "the whole
system (of supply chain, manufacturing and distribution) is on freeze". Hit by ban on its Maggi
instant noodles, Nestle India reported a standalone loss of Rs 64.40 crore for the quarter ended
on June 30, 2015 -- its first quarterly loss in over three decades. It had posted a net profit of Rs
287.86 crore during the April-June quarter of financial year 2014-15.
Calling for an "introspection" within the company to overcome the challenge of Maggi ban, he
said: "As a consequence of what has happened we will be having a process of introspection as an
organisation, in terms of learning what was the thing happened, what was the thing that was right
what was the thing which we have done was not right."
This is going to be constituting the part of the learning of the organisation. All this is internalised
and taken for the future in terms of assuring that the company doesn't come by the unfortunate
incident again, he added.
When asked if the ban on Maggi has hurt sales of other products of the company, he said there
has been impact as the products were sold in the same geography as Maggi.
In order to overcome that, Narayanan said the company would be increasing the advertising and
marketing spend on other product categories.
Why Nestle Can't and Won't Forfeit Brand Maggi
As Nestle braces to regain consumer trust over safety of its popular noodles, the jolt on its India
operations will be severe, given the position "Brand Maggi" has enjoyed in its ecosystem,
analysts said. But all may not be lost either, for a marquee brand built over three decades.
Little wonder, the stock may have lost 15 percent in some six sessions since a sample of Maggi
noodles from a small town in India's most populous state, Uttar Pradesh, allegedly found higherthan-allowed levels of some harmful substances (lead), eventually resulting in India's food safety
watchdog banning its further production, sale and export.
But investors still appeared to have hope.
At noon on June 5, for example, when the packed press conference of Nestle, addressed among
others by its global chief executive Paul Bulcke, was in full swing at the Oberoi Hotel here - and
the food safety authority's order was out by then - the stock actually rose, from the day's low of
Rs.5,718 to a high of Rs.6,127.

"The fall in the Nestle stock isn't very significant. The price reflects investor sentiment, which is
driven by consumer sentiments. Nestle's consumers are now anxious," said Dipen Seth, head of
institutional research at leading brokerage HDFC Securities.
What the analysts did concede was that the developments would affect the stock for some time.
"Nestles effort towards driving premiumisation and improving the overall growth trajectory may
take a hit because of change in focus to damage control and revive the Maggi brand," said
Edelweiss, an investment advisory, maintaining that costs on this can hit margins.
"Also, during this phase, the brand may lose market share to rivals like ITCs Yippee, adding
further fuel to fire," it said. "In a bid to revive the brand, the company will have to invest heavily
to communicate that its products are safe -- similar to what Cadbury did in 2003."
A closer look at the numbers on Nestle's operations reveals how Maggi dents its top line.
Among the four divisions of Nestle India, the category of "prepared dishes and cooking aids",
which broadly translate into Maggi, accounted for 31.5 percent of sales in 2014, as per the last
presentation the company made before analysts.
Among the remaining divisions, the category of "milk products and nutrition" had the largest
share of 47.1 percent, followed by 12.2 percent for "chocolates and confectionery" and 9.2
percent for "beverages".
The Maggi unit saw a 1.8 percent increase in volumes in 2014 over the previous year and 8.1percent rise in value at Rs.21.4 billion. "Value market share stable at 80 percent in noodles. Good
response to Maggi oats noodles. Strong performance of fortified seasoning," it said.
What about exports?
"Nestle India currently exports small quantities of Maggi noodles to the US, Canada, UK,
Australia, Singapore and Kenya," Nestle said. "We also make Maggi noodles in other countries
and these are not affected by the situation in India," it added.
"We are working closely with the regulators in each country to explain the situation in India and,
where they want to test the products, we are cooperating fully with them."
Globally, the consolidated revenues from Maggi alone for 2014 are not available. But the
category of "prepared dishes and cooking aids" accounted for 13.54 billion Swiss francs ($14.4
billion) out of the total group sales of 91.6 billion Swiss francs ($97.5 billion).

Also Brand Finance, the London-based intangible asset valuation consultancy, in its latest report
for 2015 ranked Maggi 23rd globally, with a value of $2.4 billion. Nestle, its parent, topped the
list with an assigned value of $21.2 billion.
This apart, the brand, which extends to a range of products, has a significant share in the annual
global market for instant noodles of 102.74 billion packets. In India and Malaysia, where Maggi
has significant presence, the market size is estimated at 5.34 billion and 1.34 billion packets,
respectively.
What does it take to recover from the crisis?
It is not going to be easy. The Maggi brand, which came into existence in Switzerland in 1872,
and came into the Nestle fold in 1947, has products ranging from soups and noodles to sauces
and seasonings.
In India, it was launched in 1982-83. Today, after 32 years, it ranks among the most recognised
brands, almost synonymous with instant noodles. While it cannot really fade away from
memories -- nor will Nestle allow it -- salvaging the trust will also require pro-active action by
the firm.
"The best way to get over this is: Nestle should start communicating with stakeholders. Written
communications are very important. The company should make some audio-visual and post it on
their site for people to see," said noted market analyst Deven Choksey.
"To recover from this, there are two key elements -- trust of consumer and trust of investors. The
business performance of the company originates from the consumer performance. At the end of
the day, the truth should come out whether the product is safe or not," Seth added.
The company, perhaps, also realises as much. Rebuilding trust and consumer confident was one
phrase that was repeated several times over at the press meet by chief executive Bulcke, who was
specifically dispatched to India to clear the air with all sections of stakeholders, from regulators
to consumers.
"Maggi has been trusted in India for over 30 years. Trust of our consumers and safety of our
products is our first priority anywhere in the world," Bulcke said, adding: "Our priority now is to
engage all stakeholders to clear the confusion. Maggi will be back on store shelves soon."
KEYWORDS

Consumer confidence, market leader , ban on product buying decision , household

product
Regain market consumer psychology

QUESTIONS
Q 1 How to regain the customers back at the same level of sales volume and
profitability ?
Q 2 Do you think that Indian Consumers will go back to the brand which has been
banned.

SOLUTIONS
SWOT ANALYSISNESTLE INDIA - MAGGI
STRENGTH
1
2
3
4

MNC with large resources at disposal

It has an extensive distribution network
Most trusted brand across India
Extremely satisfied customers

WEALNESS
1 Ban on product by various state govts has stopped business
2 Has incurred over 350 crores loss in recalling and destroying Maggi
4 Has suffered worst ever Image loss in co. s history
5 Company is overdependent on Maggi Noodles for its sales and
profits
OPPORTUNITIES
1 Market potential is very high
2 Nestle can operate at large scale PAN India
3 Indian consumers sill have confidence on cos product

THREATS
1 Local players ,competition can take advantage to establish their
brand
2 Consumers can develop taste for other alternatives for snacks.
3 Consumers can go back to traditional breakfast items ( Region wise)
SOLUTIONS
ALTERNATIVE I
1 Undertake a consumer survey for -- Image research and alternate
arrangements made by them in absence of Maggi.
2 To reintroduce the Maggi with a NEW tag giving correct information
and dispelling the doubts / questions bothering consumers
3 Ensure that the product information is available to customers giving
complete details for their evaluation and to make purchase decision
To use the marketing mix stimuli to have positive impact on
consumers.

ALTERNATIVE II
1 Reintroduce product with emphasise on Govt. Certification and
clarifications from FDA
2 T0 put appropriate marketing efforts to include Maggi Noodels in
the Mid Day Meal Schemes of various state govts. Which can give a
quantum jump in sales and profitability.
CONCLUSION / MY OPINION
The company can certainly regain its market in India over a period of time .
The real challenge is how soon .The company should adopt the Marketing
strategy to WIN consumer back by adopting combination of above both
solutions on a time frame.

CONCEPTS / TAKE HOME

CONSUMER BEHAVIOUR, PURCHASE DECISION STEPS FOLLOWED BY
CUSTOMER CUSTOMER SATISFACTION AND CONFIDENCE.

QUESTIONS
Q 1 Traditionally atta market is dominated by local flour mills ,but ITC has changed the
scenario, what

MBA SEM III

306

CONSUMER BEHAVIOUR

UNIT I Case Study

TATA NANO CUSTOMERS DILEMMA

INTRODUCTION
It has been a lost decade for Tata Motors. The 138,455 cars the company sold in India in 2013-14
are close to the number it clocked in 2003-04, even as the car market almost tripled during the
period, from 902,096 to 2.5 million units.
While car industry sales have grown, although slowly of late, Tata Motors market share has
fallen from a peak of 16.9 per cent in 2004-05 to 5.5 per cent in the past financial year.

Background of Tata Nano

After having successfully launched the low cost Tata Ace truck in 2005, Tata Motors began
development of an affordable car that would appeal to the many Indians who drive motorcycles.
[4]
The purchase price of this no frills auto was brought down by dispensing with most
nonessential features, reducing the amount of steel used in its construction, and relying on low
cost Indian labour.[citation needed] The introduction of the Nano received much media attention due to
its low price.[5]

TATA NANO IN SLOW LANE AGAIN

Financial Year

Nano sales in #

2009-10

30350

2010-11

70432

2011-12

74527

2012-13

53848

2013-14

21129

2014-15

15933

Tata Nano

Alto 800

* The Nano's trunk is only accessible from inside * Maruti 800 initially had only an opening
the car, as the rear hatch does not open.[21]
rear-windscreen, but later got a full hatchback.
* One windscreen wiper instead of the usual pair
(also seen earlier on certain Citroen and
* Two windscreen wipers.
[5]
Mercedes models)
* No power steering initially, unnecessary due to
its light weight.[5] Added in higher variants in
* Power Steering only in higher variants.
later models.
* Three lug nuts on the wheels instead of the
* Four lug nuts per wheel.
usual four (also seen on Smart)[22]
* Only one wing mirror on base models. Higher
* No option for both side ORVMs in any
variants fitted with passenger side ORVM from
variant.
2012 onwards.[5]
* Radio or CD player is optional (the idea picked
on some basic car models in North America and * Radio/CD Player is optional.
all basic cars in India) [5]
* 10 airbags on any model[23]
* 10 airbags in any variant.
* 624cc rear engine has 2 bigger cylinders (312cc * 800cc front engine has 3 smaller cylinders
each)[5]
(266cc each).
* No air conditioning in base model (as on most
* No air conditioning in base model
basic car models in Europe and North America)[5]
* Front passenger seat same as the driver seat,
* Front passenger seat same as the driver seat,

and the headrests are integrated.

* Thinner 135/70-R12 space saver spare tyre.
* No external fuel filler cap. Fuel inlet is
accessed by opening the front hood.
* Front door power windows only offered on
highest variant. PW switches placed on central
console rather than on door pads.

but headrests separate. Later models switched

to integrated headrests.
* Full size spare tyre.
* External fuel filler cap.
* Front door power windows only offered on
highest variant.

Negative publicity
There were reports of several fire incidents involving the Nano.[36] The company denied those
were connected to the cars design or its parts and blamed "foreign electrical equipment" found
on top of the exhaust system.[36] The company offered to retrofit the exhaust and electrical
systems but refused to recall the cars.[36] Tata extended the warranty on the car, including those
already sold, from 18 months to four years in early December 2010.[36]
The Nano has received a tepid reception from Indian consumers. Reasons given have included
that it is still too expensive compared with a motorcycle.[37] Also it is identified as the cheapest
car,[38] whereas a secondhand car that was more expensive when new has more social cachet.[39]
The fires and other safety issues have also been nominated.[37]

Damage control
Within a fortnight of Tata Group chairman Ratan Tata's admission that there have been mistakes
in the marketing and distribution of the Nano, an official at Tata Motors has said all elements of
its strategy are in place to push sales. Initiatives to reach out to various sections of target
customers, including initiatives to undo the perception that the Nano is a poor man's car, have
already begun to yield positive results and improve sales, said R Ramakrishna, the company's
vice-president said. "Quite a lot of marketing activity is in place now - reaching out to the target
segments; network strategy; handling the customers at the dealerships ; tie-ups with various
financiers ," he said in Hyderabad on Friday, "Every single element is falling in place now."

New Tata Nano Twist 2014

Tata Motors finally endows its city car with a feature that was high in demand - power
steering.
It is best not to use terms like all-new and next-gen when it comes to each successive Tata
Nano, as that is not Tata Motors strategy for this car at least for now. Like weve seen over the
years since its launch, the company prefers to give its small city car sequential updates annually
to make it more appealing, rather than massive overhauls. Thats understandable, as a whole load
of updates at once would push the price of this car up and prove counter productive.
So, over the last few years, weve seen the addition of gloveboxes, a left wing mirror and an
audio system, to name a few, and improvements to the suspension, seats, ergonomics, engine and
gearbox basically just about every single part of the car. Which means, in essence, this Nano is
far improved from the one Tata Motors launched back in 2009.
So what has it done for the Tata Nano? In a nutshell, its made it much better suited to its purpose
of being a compact runabout for the city. On the non-power-assisted car, you have to wrench
the wheel around at parking speeds and low-speed agility is really poor. All the effort and
concentration required meant you often preferred not to change course and just dive in an out of
gaps.

Top 10 best selling small cars in India

India TV Auto
New Delhi: These cars are loved by Indian consumers for their styling, comfort,
fuel efficiency, pricing, and maintenance cost. For most it is hard to imagine a life
without these vehicles. Clearly, the top-seller the Alto is not only Marutis bestselling car; its also one of the best-selling cars in India. At Rs 2.44-2.99 lakh (Rs
3.19-3.56 lakh if you want CNG), the Alto is an ultra-affordable, user-friendly,
efficient and hassle-free car. Here is a complete list of Indias top ten best selling
small cars.

Maruti Alto 800

Maruti Swift
Hyundai I 10
Hyundai eon
Hyundai i20
TATA Indica Vista
Hyundai Santro
Ford Figo
Volkswagen Polo
KEY WORDS
CONSUMER SALES TATA NANO CONSUMER PERCEPTION MEDIA ROLE

CUSTOMERS SATISFACTION COMPETITION VALUE FOR MONEY STRATEGY

Questions
1 ) Why consumers buying behavior changed from very positive to very
negative ?
2 ) What should be the future Marketing Strategy for winning customers
confidence back ?

SOLUTIONS
SWOT ANALYSISTata Nano
STRENGTHS
1

A very old and reputed automobile company in India

The company has large resources at its disposal in terms of finance vendors etc.

The company has strong R & D team

The company has access to best automobile techonoligies in world as it has acquired
prestigious brands such as Jaguar , Land Rover from Ford.

The company has excellent sales and service & spares network across India and has total
coverage of Rural India

WEALNESSES
1 The company has an image of a commercial vehicle manufacturer rather than as a car
manufacturer due to its Indica range .
2

The initial image of Nano was a cheap car but over a period prices have escalated
and consumer does not perceive it as a chap car.

The negative ublicity has driven away the customers.

The overall customers confidence in theproduct is lost due to multiple reasons.

OPPORTUNITIES

The market for small cars in India is still very large and with growing middle class the potential
will remain for years to come.

Even though MNC may offer small cars still Nano can be an alternative choice for consumers
especially of rural areas.
THREATS
1

Competition can enter small car market with still economy varients

Competition can offer better techonology at competitive prices to customers.

SOLUTIONS
ALTERNATIVE 1
ssss
1 The company has not been able to gain customers confidence inspite of its strong
marketing efforts across marketing mis such as New varients / colours Heavy
advertising on print as well as electronic media .
2

The consumer is still hesitant to make purchase decision for Nano due to past
experience and negative publicity.

In such situation the company should focus on Export Markets especially in

developing countries , where the market is open and unbiased.

The company can have rub off effect of its other MNC car brands being sold world
wide.

ALTERNATIVE 2
1 To introduce niche market models such as CNG version Bifuel vehicles etc to
get some volume in exixting markets
2

To launch innovative marketing schemes such as buy back after 5 years at pre
fixedprice Zero maintenance for 5 years etc .

To adopt alternative channels of sales as Direct marketing to gain some volume and also
get direct customer feedback which can be used for further marketing strategy
formulations.

To focus on Rural markets b & c class of towns for promoting existiong models /
varients of Nano.

CONCLUION / MY OPINION
1 It is very challenging task of reviving a product such as TATA NANO in India in such
a adverse market scenario with strong customer resistence.
It is a classic case for any marketing student and professional to find out a solution to win
the customer for this product.
2 In view of such a complex situation the company should adopt combination of both
the above alternatives for short term volume gain and long term objective to gain
customer confidence.

Key Concepts
Consumer buying behavior , decision process , marketing mix , stimulus, negative
publicity for product , customer confidence ,