Nothing Bundt Cakes - Qualitative Research

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Qualitative Research

Team 8 Caleb Beatty Bethany Dotson Gil Marom Sarah Waller Christine Walsh


Table of Content Client/Case Objective...........................................................................................2 Method....................................................................................................................2 Overall Research Questions................................................................................2 Findings Analysis.................................................................................................2 Limitations............................................................................................................5 Implications...........................................................................................................6 Future Research.....................................................................................................8

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Client/Case Objective

Encourage trial among consumers living within a 3-5 mile radius

of a Nothing Bundt Cakes location.

Method

Team 8 launched its focus group on Thursday March 5 at 5 p.m. in

room 102M of the library. The team gathered 11 participants including 8 female and 3 males. The team’s moderator was Sarah Waller.

Overall Research Questions

Team 8 centered its research questions on brand recognition,

buying motives and competitors. To expand nationally, Nothing Bundt Cakes needs to be aware of its brand recognition. It also needs to find new methods to motivate customers who live in a 3-4 mile radius of its Tulsa stores into the bakery. In our secondary research, team 8 couldn’t find a direct competitor. A direct competitor would help us understand the motives of impulse buying. We did find, however, Wal-Mart to be a strong indirect competitor.

Findings Analysis

Nothing Bundt Cakes customers are aware of the brand if they live

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near the brand. If customers are near location, they assume it’s a local bakery. Customers are more prone to indulge in an impulse buy if it is under $5. More than $5 would make customer feel guilt and uneasy with their indulgent behavior. In comparison, customers are prone to spending more for others. Hosting an event or celebration would cause customers to spend more on bakery goods. We found that Wal-Mart was a bigger competitor than expected, as our participants enjoy the convenience aspect.

Surprisingly men did not see Nothing Bundt Cakes brand overly

feminine and would still purchase products in the store. When asked if pallet color was neutral, participant 3 said “especially with all the blue and orange” and that he did not view the brand as overly feminine. Also, customers prefer not to know the nutritional value of sweets Participant 11 stated, “I don’t want to hear about all the cups of sugar I’m about to eat. I’d rather not know.” If a customer is indulging and breaking diet, they do not want to be aware of nutritional value and calorie content.

From our research we found that customers are more likely to buy

in a group setting. Customers feel guilt when buying expensive and or unhealthy treat alone. With peer pressure customers tend indulge excessively. Participant 9 confessed, “When I am with friends, I am like let’s go in here and buy everything, and we do that.” The atmosphere

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of the location can also influence buying. Participant 9 stated, “I love Pinkitzel. I know I love it because of the atmosphere.” The experience is an important attribute toward buying motives. In comparison, Nothing Bundt Cakes creates a homey and small-town feel. Participant 1 is from the southern California area and admits that Nothing Bundt Cake has a small-town feel toward it. In that specific area, that may draw consumers away. However, in the south, consumers prefer a small, quaint and customized experience. Participants rated deliciousness over convenience. When indulging, customers did not care to go out of their way for a sweet treat. Participant 7 admits when she goes home she gets her favorite dessert and buys another one for the ride home. Convenience does not matter when the quality of favorite brand is associated. When celebrating with others, customers will spend $2030 on special events. In our research, customers enjoy splurging more on desserts in a group setting or celebration. Customers associated Nothing Bundt Cake with special occasions rather than personal indulgence. Participant 4 said she would purchase cakes “around the holidays – Christmas, Easter, birthdays, stuff like that.” Customers are more likely to indulge in themselves if given coupons. The entire focus group collaboratively agreed that coupons would be a major incentive to go to Nothing Bundt Cakes. This not only affects the age range tested but the entire target market.

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Limitations

Despite our overall success and insight gained from the focus

group session, it became apparent certain details could have been better attended to. The weather, while an uncontrollable condition, caused snow related cancellations on the Oklahoma State University campus and for focus group participants. Our group could have consulted various weather forecasts and planned on a date where the weather was more permitting to compensate for absences. In addition to the inclement weather, the participants who were able to attend did not contribute equally to the discussion. A few participants were more vocal than others. Our group could have taken strategic, moderator tactics by specifically asking participants who felt shy or silently agreed with statements made by others what they thought.

Our group had a difficult time reaching out to members of

our demographic to generate a reasonable sample size. Most of the participants were in their 20’s while our demographic ranges from 24 to 49 years of age. Our group made efforts to reach out to colleagues and companies at our places of employment, but we found it difficult to get those we knew in their 30s and 40s to commit to a time after business hours. This is directly correlated to prior family obligations. Our group also planned to have Nothing Bundt Cakes samples available

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for participants to indulge in and critique. When we went to place an order and pick them up, they were unexpectedly closed. Although we provided mini cupcakes as a small incentive, it would have made a difference and polished touch to the session. We also would have liked to incorporate a product price list and pictures of stores exteriors and interiors to give participants a well-rounded idea of Nothing Bundt Cakes’ services.

Implications

According to our group’s qualitative and focus group research,

we concluded the Nothing Bundt Cakes brand has a prominent role in society for 24 to 49-year-olds. Nothing Bundt Cakes, while a popular commodity, would do well to market specifically to a younger demographic. Nothing Bundt Cakes offers a trendy, vibrate and young brand image. These qualities resonate with millennials, and would make Nothing Bundt Cakes more marketable and desirable across varying demographics. Another conclusion we came to was the lack of integrated advertising in multiple mediums. A large portion of their communication is conducted through social media and consumer word-of-mouth. Customers typically know of Nothing Bundt Cakes if they have one in their hometown. A walking example of our findings is one of the participants in our group from Oklahoma City who didn’t

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know Nothing Bundt Cakes was a franchise. This small-shop-on-thecorner vibe surprises and impresses people when they learn about the magnitude and heights the brand has reached. And other times, the quaint, store atmosphere turns people away. Another participant from Southern California commented on what was perceived as almost an amateur attempt to compete with big-time brand names. Our group concludes from these findings that the charming décor and hometown humbleness of Nothing Bundt Cakes is beneficial in specific geographic regions of the nation. Metropolitan areas with shades of international influence typically gravitate toward edgy, current and premium brands as opposed to companies like Nothing Bundt Cakes. The Southern region of the United States, however, invites warm, soft and thriving industries.

Although geographic location divides consumers, the brand’s

gender appeal does not. The men and women of our focus group found Nothing Bundt Cakes to be a gender-neutral brand. Fine detail choices in the colors and fonts of the advertisements and logo appeal to both genders. When asked about the prices, most participants seemed in agreement and unfazed. Participants reported they wouldn’t spend more than $5 on a sweet for themselves, but wouldn’t mind spending anywhere from $20-30 on sweets for someone else. The participants were, however, unenthusiastic about the idea of Nothing Bundt Cakes’

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portions. Individuals felt guilty by the richness and savory flavors from single, regular bundt cakes and occasion cakes. On the other hand, participants were not familiar with the bundtini products. Should Nothing Bundt Cakes pursue a more aggressive advertising strategy with their bundtinis and products as a whole, the brand could predict an increase in spontaneous, self-serving sweets.

Future Research

From the focus group it became apparent that there were many

questions still left open for future research. Some of these questions include: • What holidays and occasions do members of the target audience most cherish? • What percentage of Nothing Bundt Cakes’ sales are single individuals buying individual cakes? • What percentage of Nothing Bundt Cakes’ sales is intended for groups? • What types of media, including social media, do members of the target audience use, and how often? • How much influence do promotions, such as coupons or buy-oneget-one-free deals, have on consumer purchasing decisions? • Do food product samples have a significant influence on consumer

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purchasing decisions? • How much influence does easy-to-access nutritional information have on consumer purchasing decisions? • What are some common daily activities that members of the target audience engage in? • What local venues do members of the target audience use to celebrate their special occasions? • Are consumers who are also parents more likely to to eat sweet treats themselves than to offer them to their children?

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