Introduction:

Duplication creates a pool of followers that trail your lead through a network. In duplication, a market share is the percentage represented by a specific entity. It is expressed as a percentage of sales over the product in a specified category. The market share can be calculated by sales of brand over the sale of the product into 100.

The gap in the key components of the marketing need to be resolved by the application of the prior knowledge of consumer purchase patterns and duplication of purchase laws. In all brands, D is the switching coefficient, which is constant for all brands.

Penetration is a fact or an activity that can increase the market share of an existing product or promotion of a new product. Strategies such as lower prices, bundling, advertising, and offering volume discounts can increase penetration and market share. Penetration of a brand can be calculated by the number of the household buying the brand at one point in time divided by the total number of households in the population. Average purchase frequency in marketing represents the occasions in a particular period when a consumer purchases a particular product. It also represents the number of occasions when the consumer buys from a particular seller. In marketing, where duplication and penetration are involved, sales is apportioned as, penetration multiplied by the average frequency (Saxena 2009, p.18). There are several ways the highlighted brands are assumed to grow. To determine how the brand grows, several assumptions and laws can be applied. For example, the double jeopardy law dictates that brands that have less market share have fewer buyers.  It also states that these particular buyers are less loyal in their buying attitudes. Retention double jeopardy states that at some point, all brands lose buyers and the loss is always proportionate to the market share. In marketing, Pareto law states that slightly more than half of the sales from a particular brand comes from the base of eighty percent of its customers. 

The next law is the law of buyer moderation. This law states that in subsequent times, the customers who buy in bulk tend to buy less often as compared to the base period that was used to categorize them as heavy buyers. The law also states that some non-buyers become buyers and those perceived as light buyers buy more often. Law of natural monopoly in marketing states that those brands with a higher market share will tend to attract a higher proportion of the light category buyers. In relation to the brands, there is an assumption that the user bases rarely vary. This means that rival brands in the market sell very similar to customer bases. In marketing, it is also believed that behavioral loyalty is often reflected by attitudes and brand beliefs. This means that customers tend to talk more of the brand they use as they identify with it. Customers are also perceived to talk little about the brands they do not use. Consequently, if there is a survey on attitudes, larger brands always score high.

The excel spreadsheet attached provides numerical information relating to the questions. Sheet 1 provides a numerical illustration of the duplication purchase and penetration between different brands. The subsequent sheets show average duplication, market penetration, expected penetrations and the subsequent deviations in different brands (the difference between average duplication and expected duplication). The brands are ranked by their market penetration from the largest to the smallest. The ‘market penetration’ column represents the proportion of the consumers that bought a brand at least once. The number in the table under column BB brand to Aztec indicates the proportion of consumers of the row brand who also purchased the column brand.

Question 1

There is a close relationship (positive correlation) between penetration (x) and purchase duplication (y) across all these brands as shown by the equation (y = 1.9784 xs). This is a strong model and can be explained by the value of R-square = 72.84%.

If the penetration is higher, then the duplication will also be higher and vice versa. This shows that the consumers prefer higher brands as opposed to lower brands. For example, consumers will prefer BB standards to Aztec. The duplication decreases significantly from BB standards to BB Murphy’s. However, the duplication increases when you proceed to ETA O’Ryans. This observation is clearly seen from the data graph below (Figure 2) showing a declining trend of average levels of duplication between brands from left to right. The average duplication for BB standard is 78, 43 for BB Murphys and ETA O’Ryans, 37 for Kettle fries, 33 for BB com chips, and so on, to finally end with purchase duplication at the lowest level of 6 for Aztec.

Begun and Burger (BB) rings have an equal penetration and average duplication difference of 2% which means there is a low consumer penetration. Largely, Burger rings shares the brand market with others. This is verified by the relative results it shares with brand BB standard. However, the law of duplication holds true due to the presence of a clear double jeopardy pattern. As a result, this call for further investigations into Burger rings as market may be divided.

Another example, Sanchos shares less brand market with other. Here, the user base rarely varies making the other brands sell at similar customer basis. Again, the law of double jeopardy is very evident as it proves that less market shares have few buyers. The buying attitude of target consumers also reflects this point. Marketers of this brand should establish whether the products are less distinctive to guarantee low preference from other brands. This is tabulated in the attached spreadsheet named “penetration.” 

Question 2

In the scatter graph, average duplication is represented by y-axis while penetration is represented by x-axis. If the duplication is 2x, then an increase of 1% penetration on one-product results in a 2% increase in purchase duplication. For example, if the market share of BB standards increases by 10%, then 20% of the marketers will copy the method expand the market share of other products. All these observations along with the scatter graph are in the spreadsheet named “average dupl.”

Question 3

The average duplication in brands varies as from left to right as shown in Figure 2 above. BB brands have the highest average duplication of 78%. BB Murphys and ETA O’Ryans rank second with an average duplication of 43% followed by Kettle fries with 37% and BB com chips take the fifth place with 33%. BB twisty falls 6th with 30%, whereas ETA Munchos and BB Biguns are at 28% respectively whereas Burger rings and CC’s trail with the score of 27%. The last on the scoreboard are Sanchos and Aztec with the lowest rank of 18% and 6% respectively. Tabulation of this information is in the attached spreadsheet named “average dupli and coefficient.”  .

Question 4

The purchase duplication coefficient is 2.3, which is the ratio between the average duplication and average penetration. The duplication coefficient creates purchase duplication for each combination of brands. It helps in determining the best combination of different brands to produce the highest output. Consumers prefer the combinations that optimize their satisfaction in the products. This indicates that most of the consumers are reluctant to changes as they are loyal to certain brands. It also implies that consumers have no major motivation to switch to newer products. For this reason, the company should make good decisions on marketing. In addition, the company needs to have reasonable and accurate information to identify and cater to the customer’s needs. Low percentages cast doubts on the marketing strategies of the networks in consideration. Despite the different brands offered by the company, it is evident that most consumers are treating different brands alike. The company also needs to set a good example that others brands can follow (Vass 2008, 20). While comparing the expected duplication and the actual figures, it is noticed that BB Murphys buyers are expected to benefit the maximum, as they will mostly buy this brand. The higher proportion of 47% explains this scenario. The customer’s preference for other brands will decrease across the brands with Aztec being the least to benefit. The numerical presentation of this information is in the attached excel spreadsheet named “average dupli and coefficient.”

Question 5

Since the coefficient of 2.3 is constant for all the brands, it is expected to remain the same brands under any circumstances. The law of duplication will still hold if there are partitions amongst the brands although with differing coefficients. The mental availability of consumers affected by a distinctive and clear branding start of using a new product, also affects the coefficient of duplication.

Every brand's market ability should factor in the distinctive aspect of the product determined by its uniqueness and prevalence. It is worth noting that the dominant way in which advertising works is by, occasionally rebuilding the memory structure of the consumers. This duplication also shows how likelihood of a buyer purchasing another brand. Numerical presentation of this information is found in attached spreadsheet named “expected averages.” Please note that there are slight variations in figures due to rounding effect.

Question 6

The duplication in different markets will vary for several reasons. With duplication, it is easier for the brands to acquire a more seamless collaboration with affiliated networks. This makes penetration very easy. It also increases the chances of cooperation thereby ensuring that all the brands are given equal priority in the market. The end consumer can easily choose from the wide variety brands. The table chart shows that potatoes are the most consumed snack. This is because 50% of any type of salty snack consists of potato by-products. Potatoes leads the choice of extruded buyers with a score of 57%. Corn buyers rank second while potato buyers rank last. While 30% of the excluded are likely to buy those products, extruded buyers are the most loyal. The higher duplication in the extruded area shows that customers regardless of them using other brands prefer the snacks in extruded. The highest deviation is evident in BB standard, which is 34%. BB has the highest negative deviation indicating that customer may shift their loyalty to other brands. However, Kettle fries remained the same throughout and clearly shows that there is little done to improve its market share and brand value. It can also imply the possibility of substitutes developed by rival companies. As a result, loyal customers take more time to think about staying with kettle fries or buy the substitutes. Overall, BB standard, BB murphys and ETA O’Ryans are expected to do well because they have a positive deviation. In this period, BB biguns and Burger rings are expected to remain the same but Burger rings will outperform BB biguns. BB corn chips should switch to continuous iteration and improve one feature of their products at a time. They can improve the color of packaging or add a new flavor. For example, the company can add a new distribution channel or try a new advertising model. This will give the company learn to read the pulse of the customers. As the market information improves, the risk associated with the products will mitigate. Further research can minimize brand deviations and establish the expectation of the customers on different brands. Negative deviation usually indicates less-than-expected brand sharing. This means that all the products excluding BB standards, BB murphys, ETA O’Ryans and Kettle fries, have lower than expected brand sharing. Numerical presentation of this information is in the attached spreadsheet named “expected averages.”

Question 7

A higher duplication proportion in extruded shows that consumer prefer extruded brands to those that are in the potato category. This proportion is significant as it assesses areas the extra measures required to increase consumption of different brands. This proportion also shows how the marketers of the extruded brand have played an important role in ensuring that the products are marketable to the customers. The marketing strategies used in extruded brands should be applied to other brands to make sure that they are equally saleable. The marketer of the potato should try hard to duplicate the efforts of the extruded marketer. Higher duplication shows that the company is at a safe position even when the economic conditions are poor as they keep a large stock of extruded products as compared to potatoes. It also establishes that the company has a strong network through extruded brands. This approach is significant as marketing the extruded brands grows their business with more consumers thereby building the company’s brand. The high duplication also shows that the company has streamlined its marketing system of the extruded brand making it simple for lower in the chain to do things uniformly and repetitively.

The extruded cells in relation to extruded columns show that 30% will buy other products while the extruded buyers are very loyal to these products. The potato customers who are likely to buy the extruded product are only 18%. The numerical presentation of this information is in the attached spreadsheet named “individual averages.”

Question 8

Average proportion is 1.8 times of the potato chips buyers who will also buy the excluded. The potato buyers who will also buy the corn snack are 1.6 times in proportion. This is less compared to the excluded buyers who will go for corn with a proportion of 3.7 times. Corn buyers are likely to be most loyal to the same representing a proportion of 4.0 times. Overall, corn buyers are the most loyal customers to the corn with potato buyers less likely to go for the corn snacks. This is evident in the small proportion the potato represents in corn.

 In order to reduce the imbalance in demand exhibited by different products, few measures should be undertaken. For example, the company can undertake training, improve compensation plan, and revise awards and recognition. The company can also introduce a system where the payment will be based on the level of performance. This proportion also tends to shows that the consumer belief about extruded and corn are relating. 3.7 also represent the average penetration of corn. The relationship also shows a strong evidence of Pareto law. This is proven where more than half of the brand sales are coming from the bottom 80% of its customers. The following is presentation of numerical information and is also present in an attached spreadsheet named “duplication coefficient.”

Duplication coefficient-a>b

average penetration
(% buying at least once

Potato

Extruded

Corn

Potato

26

1.6

1.8

1.6

Extruded

10

2.2

4

3.7

Corn

7

2.0

2.8

4.0

AVERAGE

14

Question 9

In launching a new product, one will assume the margin and profitability are the same in each sub-market. This will ensure that the product achieves an equal opportunity to succeed just like the others. As a result, the degree of success will be measured equally. Moreover, the need for marketing will be assessed against all the products. The potato will be best for launching a product since it has a large customer base. This will create a space for the product as it is recognised in the market along with the others. It is evident that there are many customers for the potato brand thereby making collection of information on the product easier.

Information of this product will entail its weakness and strength. Weaknesses will include the defects and the possible improvement. The suggestions will aim in meeting the customer's preferences and build their loyalty for the products. Even if the profitability of the sub-markets remains the same, the customer base will keep triggering sale of products despite stressed economic conditions. However, new brands can still enter the market and compete with the others in the segment. It is imperative that marketers should have a realistic approach about ensuring that the consumers buy only this brand.

Discussion of the results

The study shows the company achieved higher levels of loyalty than initially expected. This was after the brand shares were taken into consideration. Different brands share customers based on various law and assumptions were highlighted above. The results also show that there is no excess loyalty in the brands as initially expected. However, it is evident that the market share and penetration has increased with more and more brands offering a wide selection of products. This in turn increases the quality and the demand of the product.

Overall, the potato brand takes the largest market share. This may be due to several reasons. Firstly, it may be due to the behavioral royalty attributed to the consumption of the brand. Customers using a particular brand are probably motivated by the knowledge they receive from others. Secondly, the natural monopoly law may be playing part here. An indication is it maybe attracting a huge proportion of lighter buyers as it has the largest market share. In instances where there is an equal proportion of average duplication, the penetration seems to vary significantly. This when compared to an equal proportion of penetration where average duplication has no significant variation. Double jeopardy law applies to Aztec buyers where it is evident that it has fewer buyers due to its lesser market share. From the figures in the table, it shows that buyers are slightly less loyal. The study also shows that the current marketing tool should be encouraged equally to all products. However, the company requires generalization of different cultures and beliefs (East et.al, 2009). The data that affects duplication and the penetration should also be incorporated to reflect what affects the marketability of these brands. These factors may include technology, social and ethical considerations, and demographic composition. Effective market planning should also be taken into consideration. The plan should meet the features of marketing such as measurability, achievable and realistic objective plans. These plans should also be specific in order to avoid contradictions and unpredictability. The goal also needs to be consistent with the company structure. SWOT analysis should also be undertaken to determine the strength of the company in adopting these plans.

Overall, the study has shown that buying and penetration can fit the following description. Firstly, the number of consumers who buy a specific brand in a given period varies per brand indication that that penetration of different brands varies. Secondly, there is a very strong correlation between penetration and market shares of the brands. Large brands are considered voluminous because they have many buyers and are bought frequently by the buyers. The study also reveals that the average amount per purchase does not show much difference from one brand to the other. The study also shows that repeat purchasing is relatively low but if it is measured by brand, the repeat purchase rate is related.

This study reveals that the empirical generalization declines are in line with market penetration. This means that the biggest brands are likely to compete more closely with each other as opposed with the smaller brands. This study then provides a good insight of how the products, which are different, are likely to compete in the market when duplication and penetration are put into consideration. The study also enables firms to identify its potential competitors enabling it to carry out an accurate marketing strategy. This knowledge is significant as it allows the company to use its market share to identify its competitors. This study also provides the profit margins that a company can expect from its brands. However, the duplication and penetration law should be designed in a way that it shows the relationship of the brand with other aspects of the business. These values include the impact of joint marketing and chain distribution of the products.

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