Presented by:Jad Al HalabiMalak Moussa

18/01/2011Marketing Management Dr. Nouri Beyrouti

Table of ContentChateau Ksara

Introduction Wine Characteristics-Promotional Tools-Target MarketFactors Effecting Consumer Behavior Cultural-Social-Psychological-Personal

Research Tools Survey-Interview-Text Book

Buying Behavior Problem recognition- Information search- Evaluation of alternatives- Purchase decision- Purchase- Post-Purchase

evaluation

Conclusion

Chateau Ksara

• Located in the heart of Bekaa• Started in 1857 by Jesuit Fathers• 240 hectares of land are cultivated for grapes• 2 km of underground tunnels hold wine

Ksara’s Wine Characteristics

• New grape varieties introduced into the vines of Ksara

• New vine cultivation techniques• Application of advanced science• French oenologists watch over the vinification,

fermentation and decanting processes.

Promotional Tools

Ksara’s promotional strategies consist of: Above the Line:

1. Television advertisements to promote Ksara’s wine

2. Billboard advertisements on streets to attract the largest number of people possible

3. Standing out point of sale display which makes Ksara’s wine more attractive in a number of ways

Promotional Tools cont’d

Below the Line:1. Magazine: Ksara ads are found in many

important magazines in Lebanon2. Newspaper: just like in Magazines, some colored

news papers and english based papers have Ksara ads

Ksara’s Target Market

• The target market of Ksara is made up of all age groups who are above 18 and drink wine.

Factors Effecting Consumer Behavior

1. Cultural2. Social3. Personal4. Psychological

Cultural Factors

Cultural values have a big effect on weather people drink alcohol or not. Values such as:• Religion: some religions such as Islam forbid alcohol.

Religious people would not drink alcohol, let alone wine.• Geographic regions: people living close to major cities

such as Beirut, Tripoli, Jounye, Jbeil, ect. have more access to alcohol.

• Individualism and Freedom: people who are not under tied to any type of standard usually tend to drink alcohol

Cultural Factors cont’d• Individualism and Freedom: people who are not under tied

to any type of standard usually tend to drink alcohol

Social Factors

• One’s family and friends constitute the most influential reference group. The reference group usually effects one’s decision directly and indirectly

• An inspirational group is a group that one does not belong to but acquires there habits to fit in. A group like this can change one from a non drinker to a drinker.

Social Factors cont’

• Advertisement is one of the main influencer on a person’s decision. Ksara for example has numerous bottling packages even for the same types of wine.

• Since wine is one of the more elegant alcohol drinks, people considered in the middle class and above tend to buy wine more.

Personal Factors

• Age is a major determinant of wine and alcohol consumers. 18 years is the legal age for drinking. Typically people aged 18 or more are the primary consumers of Ksara.

• Blue collar workers are usually not wine consumers, while people with higher occupational status are considered Ksara’s consumers.

Personal Factors cont’d

• People who lead a successful lifestyle that reflects wealth and ease of mind usually are consumers on wine.

Psychological Factors

• What motivates people to buy wine can be for many reasons. Social drinking, specific dinner occasions, and personal use are among the motivators for people to buy wine.

• Herzberg: one should have a satisfier with the product to be motivated to buy. Promotions such as getting 2 glasses with every 2 bottle of Ksara wine purchase can be viewed as a satisfier.

Psychological Factors cont’d

• From the big demand that Ksara encounters, we can see that it has influenced people’s memories. This has created a customer base for Ksara’s wine.

• Positive past experiences with one product makes people learn that this product is a good one.

Research Tools

To better understand how these factors effect buyer attitude and behavior we used different research tools including:1. Researching the text book titled “Marketing

Management 13th edition Kotler and Keller”2. Conducting a survey on a random sample group

of 200 people of nearly all ages3. Interviewing Ksara’s Sales Manager

Survey

A survey was conducted on random people in different supermarkets. A total of 200 people where questioned the following questions:

1. Are you an alcohol/wine consumer?2. What type of wine do you prefer?3. What factors most influence your decision?4. If not, then what is the main reason?

Survey Results

1. Are you an alcohol/wine consumer?Yes….58%No….42%

Alcohol Consumers

2. What type of wine do you prefer?Ksara….41%Kefraya….32%Other Lebanese wine….11%Imported win….16%

Alcohol Consumers

3. What factors most influence your decision?Advertisement & Packaging….19%Taste….39%Price….31%Peer Pressure….11%

Non Alcohol Consumers

4. What is the main reason? Religious….53%Not tasty….19%Health issues….12%Other….16%

Interview

• An interview was conducted with the Public Relations (PR) Manager, Rania Chammas, to get more knowledge about Ksara’s marketing strategies.

• The following questions where asked:

Is Ksara Willing to Differentiate the Product?

• According to the PR Manager, Ksara is already working at an extra cost to differentiate the product from others to make it more appealing.

• The target market in this differentiation is the youth, or young adults (18-30).

What is Ksara’s Promotion Criteria

• Ksara has promotions usually once a year and specifically on the Christmas holiday break.

• Ksara’s promotions differ each year depending on how much demand they need to attract.

• Ksara might have more than one promotion a year only when they are in financial need.

Consumer Buying Roles

Some people can influence a consumer’s decision. This is done by 6 roles:

1. Initiator: can be a family member or a friend who introduces Ksara

2. Influencer: Peer group or family members who advise the use of Ksara

3. Decider: the person who decides to buy Ksara

Consumer Buying Roles cont’d

4. Approver: the person with the ability to buy5. Buyer: any adult with purchasing power6. User: any adult friend or family member of

the buyer; could be the buyer himself

Buying Behaviors

There are Six Stages to the Consumer Buying Decision Process. Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity.

Buying Behaviors cont’d

1. Problem recognition2. Information search3. Evaluation of alternatives4. Purchase decisions5. Purchase6. Post purchase evaluation

Problem Recognition

• It is the ability for someone to recognize the need of something when they see it.

• When the consumer sees a Ksara commercial on TV the consumer suddenly recognizes the need for him to buy Ksara

Information Search

• Internal Search: consumer goes to his own memory. The recognition could evoke the memory of not only Ksara but other competitors as well.

• External Search: if the consumer still has trouble deciding he could turn to others and ask

Evaluation of Alternatives

Here the consumer would look at all possible alternatives, Ksara-Kefraya-Imported ect. and weigh the alternatives to decide what to buy.Ksara however has differentiated it self by its packaging, competitive prices, taste, and promotions.

Purchase Decision

• After taking into consideration all the possible alternatives and weighing the pros against the cons the purchase decision come into place.

Purchase

• After the decision a time lapse between the decision and the actual purchase may occur

• Sometimes and alcohol providing place is not always near the person who decided to buy Ksara, hence the time lapse

Post-Purchase Evaluation

• After buying and using the product the consumer should weigh if it was up to his satisfaction.

• If the product was, then he would recommend it and buy it again. If it was not then he would not buy again

• In the case of Ksara, it is more likely that the consumer would buy again.

Conclusion

• Ksara is arguably the best Lebanese wine in the market today

• Ksara’s promotional strategies are market and demand oriented

• Ksara is the most demanded Lebanese wine in the market (based on the survey)

• Through a big number of advertisements Ksara tries to reach the biggest number of customers possible

• Ksara’s target market is anyone who can drink legally • Consumer behavior towards Ksara’s wine is typical

References

• Marketing Management 13th edition Text book

• http://www.ksara.com.lb/

• http://www.udel.edu/alex/chapt6.html