Reflective Journal: Consumer Behavior and Marketing Psychology

Executive Summary

This reflective summary will provide a broad overview of a2 milk on the basis of material gathered during the first and second assessments and also the ideas and understanding generated during the entire course of consumer behavior and marketing psychology. As milk is considered as an essential aspect in every individual day to day life, this journal will examine how and what makes a2 milk different from other brands and what benefit it has been possessing so that it has a higher demand in the market among the consumers. At the same time this journal will try to critically analyze; what are the criteria that influence an individual to purchase and consume a2 milk and what can be done to maintain its sustainability in the market. Finally, after analysis, it will try to provide some recommendations to a2 milk regarding its product, market, customers, and some other aspects that will help to boost its demand and ratio of customer demand.

Overview

Milk is something that we consume from the very beginning of our life and it is what most of us start our day with. Milk is considered healthy for well-being as it helps us feel energized and ready to take on study or work. Milk can assist with managing the symptoms of many physical and mental health conditions and also boost our mood. Milk also is essential for blood clotting, wound healing, muscle contraction, maintaining blood pressure, supporting sleep, movement of muscles, learning and memory, formation, growth, and repair of bones, and so on.

The a2 milk was produced keeping the health of the consumer in mind. The a2 Milk was officially started in NZ in the year 2000 by Corran McLachlan and is focused in the production, marketing, and selling of healthy dairy and infant formula products in Australia, New Zealand, China, The United States, and the United Kingdom. Its unique feature is that it produces milk containing only A2 beta-casein whereas the regular one contains both A1 and A2 beta-casein. Some studies claim that A2 beta-casein is a safer choice whereas A1 beta-casein may be harmful for health.

According to Xie, 2018 a2 milk is a dairy company which is branded globally and it has its rooted proficiency in marketing, it has taken a boost in the market after it introduced the infant formula and has gained rapid growth and significant market in most of the countries. Everyone has seen and praised the achievement in the past few years but overlooked that the overnight success story is the determination of 18 long years. LaFrenz outlined that the success of a2 milk is constructed by flourishing the demand of consumers due to their concern towards health and wellbeing, interest to know where their food is brought from, and the growing life standard of people. The purchasing decision of a person regarding a2 is derived by the feeling of love and belongingness, physiological needs, and safety and security needs.

Examination

Today’s consumer is concerned about what they drink and eat. Harvey (2018), states that the marketing mixes of a2 milk are the product, price, place of distribution, and promotion.

• Product

A2 milk evolved its exclusive name, design, and feature to emerge in the global market. They considered the product strategy, variety, packaging, feature, brand name, and also expanded service. They have also emotionally connected their consumers through its product and services. A2 milk is known for its traditional design which is also feasible to its customers to consume.

• Price

A2 milk evaluated the value of the product on the basis of the target market and consumer; they centralized on the context of price list based on variety, payment, and discount.

They offered prices lower than their competitors and won the market share by discounted pricing. Consumers today are concerned more on the cost included in gaining, applying, and adapting the product rather than price.

• Place of distribution

The company made the product available to its customers through various channels and distribution partners so that it can serve the customer's needs. The channel involved wholesalers, retailers, and online resources like Amazon and it has its own online site as well.

• Promotion

Promotion is one of the most important factors for marketing a2 milk. It has always blended high and low in terms of its promotion. They have advertised their product in television, radio, print advertisement, etc at the time of launch and these days they are more active in social sites like Facebook and Instagram, etc. The first thing they considered was their unique selling point and how it was different from others, that is; containment of only a2 beta-casein. They also adapted the strategy of advertising in a high profile that lifted up the company’s market and created a brand image. But most importantly they had a specific target market to sell the product on the basis of age, income, gender, and social status where they merged this information to promote their product effectively.

• People

The team of sales and marketing of a2 milk is actively seeking and implementing a market strategy to boost the sales of the product keeping in mind the satisfaction of the consumer.

• Process

The milk is always available in-store and if the stock is getting low the retailer notifies the company and they restock again so that the customer gets the milk every time. A2 milk is also doing the research so that they know the market demands and is ensuring to work upon the feedback they get from the retailer, whole seller, and the customer.

• Physical Evidence

The color of the packaging and its design makes it easy to locate in any store. Along with that, they have a specific shelve in every retail store or supermarket that is designed in their own way so that the customer do not have to face any difficulties to find it. For their online website they which provide high-quality pictures along with price and composition that make it user-friendly.

Motivation and belongingness are some other factors that drive toward a particular product. Regarding a2 milk motivation and belongingness are connected to each other. As a2 milk is considered safe for health a person is motivated to purchase the milk not only considering the brand and image of the product but also the health of his and his family, especially infants. Infants are being shifted to A2 milk rather than other regular cow’s milk, as it provides breastfeeding goodness. Some significant evidence based on research has also helped in the marketing of a2 milk so health professionals have approved the fact that it is a safer choice and they are also the consumer of a2 milk.

Analysis

The report of the survey that was carried out for the second assignment illustrates that a2 milk is gaining an edge over other popular brands. It is considered as a good source of protein and also helps for digestion. A2 milk is preferred even by lactose intolerance and is considered nutritional compared to other milk. This is the reason that the market of a2 milk is growing and is expected to reach even higher in the future. The cow that produces the a2 milk does not have any genetic alteration or any fabricated adjustment. It has been examined several times to confirm its purity. Its effective market position is dependent upon the information and knowledge of the potential customer need. Along with the potential customer need, it also considers its existing consumer their attitude, needs, and expectation. It has been identified that different consumers are influenced by different factors, such as culture, social factors, individual factors, and physiological factors. It has also analyzed how need and expectation can differ from one another and what can be the probable cause. Based on these factors a2 milk is providing varieties of products and services and gaining profit.

Identification of the size of the market is the most important aspect so that one can know and understand the measurable difference. A2 milk has identified and conducted market research to know the consumer's buying/ purchasing decision-making process and acted effectively on it. They have a proper understanding of the criteria the consumer purchase the product such as price, gender, culture, social factor, age, location, etc. According to Jain as cited by kurajdova & Petrovicova the purchasing decision of a consumer is determined by four factors, economic factor; income, credit, economic condition, the standard of living, credit, etc, sociological factors such as family, social class, reference group, culture, etc, psychological factors such as learning, motivation, beliefs, attitude, image, lifestyle, personality, etc and personal factors such as gender, age, occupation, family, social status, etc.

It has also been analyzing the market trend and monitoring legal, economical, social, and political changes as they act as an important character in the market. According to Market Watch, increasing level of production and expanding livelihood are known to be major factors that are set to enhance the market, along with that the knowledge and awareness of people towards a2 milk are leading the consumer to shift from normal milk to a2 milk. However price of the milk compared to the competitors is high and the lack of proper proof and scientific evidence about the advantages of a2 milk is hampering its market growth.

Recommendation

• Regular research

A2 milk is boosting its image in the market because of the factor that it has digestive well-being prosperity having no a1 protein compared to the regular milk that has both a1 and a2 proteins. They are still undergoing the risk of information being circulated that the benefit of having a2 milk does not have any potential benefit and refuse the scientific argument and the experience of customers. In such a case, it will be hard for a2 milk to continue its sustainability in the market and turn over the belief of the customers. For this, they need to conduct the research themselves from time to time and ensure that they are meeting the requirement to avoid the risks generated by the research. Collect feedback from its customers and work upon it.

• Competitor Recommendation

If there is and product in the market it is certain that they will have competitors. To face and defend the competitor it should always maintain a differentiated image from others in the market. It is leading in the market as it is free from a1 protein unlike others but there are chances that other brands could come up with milk consisting of only a2 protein. In such cases, they should always be ready with a backup plan to prove them better than others.

• Product Recommendation

Although a2 milk has set an emotional connection with its customers and they are consumed because of their health benefits there are still some factors that can be considered to boost its position in the market such as

• Provide additional advantages for purchasing its products like warranties, after-sales services, discounts etc.
• Identify opportunities and introduce products to match the current trend of the market.
• Test the product before launching in the market
• Improve the packaging of its product so that it will be easy to transport and use.
• Mark the price in such a way that it would be a threat to the competitor but do not compromise in quality.
• Improve their site and make it user-friendly.

References

1. A2M Com, 2019, Annual report, viewed: 4th Oct 2019 retrieved from https://thea2milkcompany.com/wp-content/uploads/A2M-Annual-Report-FY18.pdf
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