Case Study 4 Consumer Behavior

 
Please Follow the example case and complete the following case study.  Please note that all sections must be complete.  The key issues section is critical.  Look for the terms and concepts that we have learned and apply them to the case.  Do not define the key issues.  What in the case makes them the key issue? 
Grading Rubric:

Case Summary 2 points
Key issues 10 points
Personal Analysis 3 points
Case Questions 9 points
Conclusion 2 points

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CASE STUDY
PARROT HEADS UNITE!
Are you a Parrot Head? If you don’t know what that is, then you definitely are not. Jimmy Buffett fans all over the world proudly refer to themselves by this name. In many respects, they represent one of the most dedicated fan bases anywhere. Why the name Parrot Head? In a 1985 concert, a member of the Eagles looked at the audience members with their bright Hawaiian shirts. He announced that they “looked like Deadheads in tropical suits. They’re like Parrot Heads.”
Some critics think Jimmy Buffett’s career peaked in the late 1970s, though between 1978 and 2006 he released eight gold, six platinum, and three multiplatinum records. During this period he gained a reputation for his concerts, wrote five best sellers, and became one of the world’s wealthiest musicians through his Margaritaville brand, a multibillion dollar business that includes restaurants and casinos.
Buffett fans gather by the thousands at concerts. Each event is like a beach party, with fans decked out in Hawaiian shirts and parrot hats. But the concert itself is only part of the experience. Fans get to know each other year after year at tailgate parties. So many people party before Buffett concerts, in fact, that many venues charge admission now just to get into the tailgating area.
In recent years, Parrott Heads have taken to social media to share their enthusiasm for the brand. In a MomentFeed study of 65 restaurant brands on Instagram, Margaritaville took the top spot for the average number of photos tagged to the brand’s locations. Kyle Collins, the director of marketing for the Margaritaville Hospitality Group believes it is the company’s responsiveness to fans’ posts that has led to the high engagement numbers on Instagram. Social media with its viral nature and ability to empower and engage consumers seems like a perfect fit for a “cult brand” like Buffett’s Margaritaville. Cult brands motivate what has been described by Bueno and Jeffrey as an almost “magical participation with their customers, helping them to embrace a certain way of being.” These brands find ways to play an important part in the lives of their fans, treating them like family members. Bueno and Jeffrey go on to explain that Parrot Heads are drawn to Margaritaville’s lifestyle, reflected in Maslow’s B-values of aliveness and playfulness. They draw energy from the experience individually, but more importantly, want to share it with others.
How die-hard are Buffett fans? Consider that many plan regular vacations around a Buffett concert (some have racked up dozens) or special trips to visit Buffett-themed restaurants in Caribbean destinations. Fans will even have the option to own a timeshare condo in St. Thomas at the Margaritaville Vacation Club, a partnership between Jimmy Buffett and Wyndham, Inc. Houses, boats, and RVs decked out in tropical Buffet décor are not uncommon, and there have been a good number of Parrot Head-themed weddings.
Buffett fans come from all walks of life, age groups, and occupations; they typically cite “escapism” as a reason for their devotion. But Parrot Heads do much more than just “wasting away again in Margaritaville.” Many spend their free time as volunteers at blood drives, raise thousands of dollars to grant the wishes of sick kids, or build houses for the needy. Parrot Heads in Paradise, a group of fans with more than 26,500 chapters, has donated more than $39 million and 3.4 million volunteer hours to charity.
DISCUSSION QUESTIONS

Discuss how Jimmy Buffet fans and the Parrot Heads in Paradise clubs connect with your understanding of the role of consumer identity and lifestyle marketing. Are there particular personality or lifestyle characteristics that Parrot Heads share?
Describe the brand personality for Margaritaville. How does it compare with other brand personalities with which you’re familiar? What has led to the long-term success this brand franchise has experienced? Why have some experts come to consider it a “cult brand”?
What kind of opportunities does the existence of the Buffett community present to marketers? Develop a list of specific marketing and promotional tactics they might use to reach this target market.

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This assignment is due by midnight on Sunday, at the end of each week. No late assignments will be accepted without advance permission from the instructor.
On every case assignment you must meet the minimum standards for depth and organization. Any case analysis that is under 500 words (not counting title and references) will receive a zero. Each case also must have a minimum of 3 outside references, not counting the textbook. 
Below is a Sample Case Analysis. This sample gives you a clear example of how the required case analysis format should be delivered. Follow this format in your analysis.
Do not use the Key Marketing Issues used in the sample case. Each case will have its own set of Key Marketing Issues which you will choose based on the details of the case content and the class reading. Follow this format on all 8 case analyzes.
Sample Case Assignment Analysis Format
MRKT 5000 Online Course
(Instructional notes in red)
(Your name here)
Can Pepsi make Pepsi One the One? (This is a case from a previous edition of the Marketing text – not currently in your text book. This is only a sample analysis to demonstrate analysis format only)
Case Summary:
Pepsi One is an innovative product launched in the market by PepsiCo to keep the image of innovation, fast movement, and competitiveness. The case includes the steps of a new-product development process. Emphasizing the launch of the product and the ways that Pepsi One is getting more familiar to the target market. Pepsi One is becoming a successful product by getting more market share from the main competitor Coca-Cola.
(Each case to be analyzed will be read from the text, with specific questions assigned) 
Key Marketing Issues

Line extension      – Development of a product that is closely related to existing products in      the line but meets different customer needs. Pepsi One is a product that tries to      differentiate itself from the normal diet products, to reach different      target markets.

.

Product modification      – Change in one or more characteristics of a product. Pepsi changed the      sweetener to acesulfane potassium (ace K) to create the Pepsi One.
Aesthetic modification –      Changes to the sensory appeal of a product. Pepsi tried to appeal as a not a new      diet drink but a new way of tasting a soda.
New-product development process – A      seven-phase process for introducing products: Idea generation, Screening,      Concept testing, Business analysis, Product development, Test marketing,      Commercialization. The PepsiCo      performed all phases of new-product development in order to ensure the      product would succeed in the market.
Product differentiation – Creating      and designing products so that customers perceive them as different from      competing products. Pepsi One tries      to differentiate itself being the only low calorie drinks that taste      exactly as a regular drink (Pepsi).
Product design – How      a product is conceived, planned, and produced. 
Styling – The      physical appearance of a product. Pepsi One omits the word “diet” and even the word Pepsi, is      secondary to the thick, black lettering of the word “One”. 
Product positioning – Creating      and maintaining a certain concept of a product in customers’ minds. Through advertising the company tried to      keep the idea of the product in customer’s minds.

(These are the issues in this particular case – each case will have a different set of Key Issues)
Personal Case Analysis
I learned that Pepsi One was a product created by a modification of an existent product “Pepsi Diet”. The product modification was the sweetener used. A new taste of cola was added to the appeal for a low calorie soft drink. By trying to differentiate Pepsi One from a classic Diet product, PepsiCo shows its innovative style and gain market share from Coca-Cola.
Case Questions
1- Is Pepsi One a new product, a modified product, or a line extension? Explain your answer.
Pepsi One is a new product, line extension and a modified product. Pepsi changed the sweetener to acesulfane potassium (ace K) to create the Pepsi One and tried to be unique by being a low calorie soft drink, which tastes a regular soft drink.

2- In what way is Pepsi One positioned?
Pepsi One was positioned by including characteristics that target market most desires. Understanding the diet aspect of Pepsi One helped attract an unusual market segment for a diet drink: cola-loving males in their 20s and 30s. The product is not made to compete head to head with Diet Pepsi.
3- Over the years, PepsiCo has had a number of product failures. Evaluate PepsiCo management’s decision to introduce Pepsi One?
PepsiCo was launched just after test indicated consumers liked its taste as much as its creators did. In extensive home-use tests, almost 70 percent of Pepsi One tasters reported they would purchase the product again. To differentiate Pepsi One from the horde of diet soft drinks, PepsiCo focused on the product’s taste, which is almost indistinguishable from the taste of sugared soft drinks. 
Conclusions
The company that wants to be competitive needs to be innovative and always introduce new products in the market. PepsiCo used line extension of its Diet products to create Pepsi One. Pepsi One is a product modification as well, which was consisted of in changing the sweetener to acesulfane potassium (ace K). This aesthetic modification provided the product differentiation that appealed to customers as product with low calorie that tastes as a regular soft drink. The different product design that included change on the styling never seen before, helped to position the product among the cola-loving males in there 20s and 30s. By being innovative Pepsi One is guaranteeing its position on the soft drinks market, taking some market share from its big rival “Coca-cola.”
Works Cited
(Each analysis must include a minimum of three outside references, not counting the text or references from the case subject directly)
Bramhall, Joe, “Pepsi Inc”, Hoovers, http://www.hoovers.com/xm-holdings/–ID_60656–/free-co-factsheet.xhtml
“Choosing a soft drink”, Soda pop.com Click & Learn:  http://www.pepsicity.com/rpsm/edOid/105548/rpem/ccd/lookLearn.do
Deitz, Corey, “Learn the Difference to Make the Best Choice For Yourself”, Your Guide to softdrinks, December 29, 2005, Pepsi and Coke Comparison Chart 
http://pop.about.com/od/satelliteradio/a/blsatcomparecht.htm
Company Profile, “Pepsi, Inc”, February 10, 2006, NAMC Newswire, http://www.newswire.com/companyprofiles/xmsr.html
Insight from Standard & Poor’s, S&P Boosts Pepsi to Strong Buy, BusinessWeek online, February 9, 2006, http://www.businessweek.com/investor/content/feb2006/pi20060209_35961.htm?chan=tc
(Make sure your name is at the top of the paper)
(Remember that any paper with less the 500 words of content – not counting the words from the questions and references – will receive a zero)

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