LITERATURE REVIEW & RESEARCH METHODOLOGY
The Analysis of Implementation of Sensory Marketing Techniques In The Beverage Industry, With A Comparative Focus On The Middle Eastern And Asia Pacific Market Regions.
Presented By Rahul Saraswat
Chirag Kothari
Rohan Temkar
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Table of Contents SR. NO.
1.
TOPIC
Introduction to Sensory Marketing
PAGE NO.
3
-
Purpose Statement
4
-
Target Group
4
2.
PESTEL Analysis of UAE
5
3.
Literature Review
7
-
Academic
7
-
Industrial
9
4.
Conceptual Framework
13
5.
Research Methodology
14
6.
Sample Questions
18
7.
Bibliography
19
8.
Appendix A2 – Draft Research Proposal Review
20
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Introduction of Sensory Marketing “Content is not king, if no one’s looking” -
Ivan Clark, Former Managing Director at Kinetic
Sensory marketing is a niche means of manipulating with a person’s 5 senses (visual, auditory, olfactory, gustative and tactile) to build an emotional connect with the customer and make him learn of and retain a brand.
In the 1950’s marketers made use of sight as a form of sensory marketing, where they used sight for
branding. Color and form were used to promote brands as the main medium of advertising was posters. With the popularity of television, consumer’s sense of sound was used in advertising in the
form of jingles. In the 197 0’s marketers identified that smell could be used in promotion of a brand. They began to adjust the scent of products so that they became more palatable for consumers. Recently sensory branding has developed in a way that it encompasses all the five senses. Marketers have realized that the more senses appealed to, the more effecting the advertising and branding would be.
Our project deals with implementation of sensory marketing in the beverage industry. We will be looking into aerated drinks, alcohols, caffeinated drinks etc. It would be an in depth study on sensory marketing with an academic study as well as an industrial study covering an introduction into sensory marketing and also studies into sensory marketing in the aforementioned products in the beverage industry.
Research question in this research since we see so much sensory advertising advertisi ng in the beverage industry, in not only aerated drinks but also juices, alcohols, caffeinated drinks and so on. Thus are research is divided into the following 2 main questions: How sensory marketing influences a customer’s decision in product ch oice and brand retention?
What factors companies look at when they go into sensory advertising and the techniques they use to effectively attract customers towards their product and brand?
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Purpose Statement The thesis has the purpose of studying elements of sensory marketing that have been used in the beverage industry and the ways in which they being used till date. We will be focusing on brands that exist in the UAE and Asia Pacific region.
Target group The purpose of our study is to analyze how sensory marketing influence the decision making of customers and how it can be applied to brands to help them achieve better performance. We will be giving the account of the elements that beverage companies use in their sensory advertising and the examples of successful companies that have used such techniques to their advantage.
This research could be beneficial for beverage brands that are implementing sensory marketing in their current business plan not only in UAE and Asia Pacific but all over the world.
Our research will contain primary and secondary data as research only based on secondary data would not be as accurate as the data collected through investigation.
The below two examples show the impact of sensory marketing in the beverage industry and how coca cola and Starbucks have worked on retaining their customers through sensory marketing. The examples also deal with one of cokes marketing strategy used in the UAE and Starbucks strategy that they use all around the world.
We see in coca colas hello happiness campaig n where bottle caps of a coke bottle were made currency for phone calls. A coke payphone booth was set up where a single bottle cap gave a free minute of talk time. Where on one hand the foreign labor class and individuals unable to spend huge amounts on phone calls got the chance to speak to their family and loved ones at home, on the other hand t he advertisement brought about a sense of love and family connection that is seen as a major element in Dubai lifestyle. Here we see coca cola appealing to not only the need of their customers, but the advertisement connecting to their customers on an emotional level.
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Starbucks philosophy deals with satisfying customers not only in the realm of taste, but also olfactory, visual, tactile, and auditory sense. Starbucks has been consistently making an effort to create a sound, font, perfume and taste that appeals to customers. Background music at Starbucks stores are selected and released from Hearmusic, from the main office of Starbucks. Hearmusic provides 2 to 3 compact discs per month that include 100 songs to approximately 9000 of their shops worldwide. Due to this, consumers are able to offer coffee at a refreshing and comfortable environment. Regardless of countries or cultures, customers all around the world are able to share with each other their similar experiences at Starbucks.
Coca cola had another campaign in Australia known as Project Connect that was based on the brands ambition to strengthen its bond with Australia’s young adults and inspire moments of happiness in the customer’s real life. This campaign was more commonly known as share a coke. It started off by printing 150 of Australia’s most popular names on their bottles and cans. Word about t his spread like
wildfire and the huge reaction to this campaign allowed peoples votes to add 50 more names to this list. Soon after, kiosks were set up that allowed consumers to swap out the coke branding on bottles and cans with their own names. This marketing strategy skyrocketed the brand into unimaginable proportions. That very summer, coke recorded sale of more than 250 million named cans and bottles in a nation that consisted of less than 23 million people. Thus we see how a customer’s emotions affect his buying decision here where the idea that it would be cool to have your name or a friend’s
name printed on a bottle that you are drinking from worked so well that in just 3 months it increased the brands sale by a huge chunk of 7%.
PESTEL ANALYSIS OF UAE
Political Factors
The 7 nations that comprise of the U AE have their individual government establishments which allows for manoeuvrable room across the region.
Though it is a peaceful domestic nation, UAE is prone to conflicts with multiple of its neighbours. These conflicts originate primarily regarding the ownership of oil and its reserves.
The Emirates besides having political instability among its neig hbours, has strong trade partners across the globe owing to a primarily migrant society and industrial globalization.
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Economic Factors
The Emirates have a high GDP per capita, with an extremely high purchasing power parity.
With a young population, the Emirates has much to boa st about in terms of its low employment rate.
The Emirates has one of the highest amounts of Foreign Direct Investment in the region.
Social Factors
The population of the region typically li ve comfortable lifestyles thanks to their well-paying jobs and high currency power.
Globalization has resulted in a mix of different cultures within the region.
Religion plays a key part in the society of the Emirates with a low cultural sensitization towards the western world.
Technological Factors
A tech savvy young population allows globalized organizations towards leveraging technology towards marketing.
Owing to its financial strength, UAE has been able to be in the vanguard of the technological forefront.
Environmental Factors
UAE faces hot and dry climate perpetually, owing to which many industries might nt find it a feasible place to operate from.
Its coastal port location aids its trade significance.
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LITERATURE REVIEW ACADEMIC
According to Aradhna Krishna in her book Customer Sense (an American academic focused on marketing. She is considered one of the 50 most productive marketing professors in the world, with Harvard Business Review recently acknowledging her as the foremost expert in the field of Sensory Marketing) – “Marketing that engages the consumers' senses and affects their perception, judgment
and behaviour is defined as Sensory Marketing. ” She suggests that "sensory marketing can be used to create subconscious triggers that characterize consumer perceptions of abstract notions of the product (e.g., its sophistication or quality)." quality). " She claims that “In the past, communications with customers were essentially monologues —companies just talked at consumers. Then they evolved i nto dialogues, with customers providing feedback. Now they’re becoming multidimensional
conversations, with products finding their own voices and consumers responding viscerally and subconsciously to them .”
For over the past few decades, manufacturers and marketers have been inculcating expertise in holding out to customers in enticing multiple of their senses, such as the sense of sophistication associated with owning a Louis Vuitton clutch, the aroma of a Hallmark greeting Card or the quintessential roar of a Harley Davidson motorcycle.
As suggested by an article published in the Harvard Business Review (2015 Issue) - Research suggests that we’re about to enter an era in which many more consumer products companies will take
advantage of sense-based marketing. The future of this research is pivoted around the concept of “embodied cognition". The concept hereon is based on the idea that the subconscious mind of the
consumer has a majority stake in the decision maki ng process towards consumption and purchase of goods beyond the actual conscious realization of the same to the consumer.
According to Krishna, in her paper - An integrative review of sensory marketing (2011), sensation and perception are stages of processing of the senses. Sensation is when the stimulus impinges upon the receptor cells of a sensory organ —it is biochemical (and neurological) in nature. Perception is the
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awareness or understanding of sensory information. She outlines a conceptual framework for the same incorporating the differentiator between sensation, perception, cognition and emotion.
A marketing dissertation published in Högskolan i Halmstad in May 2008 by Cyril Valenti and Joseph
Riviere, sensory marketing puts the experiences lived by the consumers and their feelings in the process. These experiences have sensorial, emotional, cognitive, behavioural and relational dimensions, not only functional. It aims to create the adequacy of the products with their design and their packaging, and then to valorise them in a commercial environment to make them attractive.
Aydinoglu and Krishna (2011) show that food size labels (e.g. a l arge size portion of French fries being labelled medium) can result in people eating a lot while believing that they have not, and thus not feeling guilty about it which Krishna referred to as - guiltless gluttony . This research has been reported in popular press accounts ranging from New York Times (Alex Mindlin – 2010) and Time and Time (Meredit Melnick – 2010) between others. Cian, Krishna, and Elder (2014) defined dynamic imagery as as an image capability to evoke a perception of movement. They show that dynamic imagery
is an important aspect of logo design, which affect consumer engagement and attitudes.
Marketing Week (Jan 2016) describes as the future scope of Sensory Marketing as being driven by key determinants like Virtual Reality, 4 D Cinematic Experiences and Memory Redressals.
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INDUSTRIAL Sensory Marketing as a technique has been implemented by organisations to further their business goals since the early 1950’s, when jingles would be associated with consumables in order to ensure brand retention in the consumers’ minds. The marquee implementation of this t echnique was Lucky
Strike a tobacco company, which associated the quintessential association of success with its brand. The Marlboro man, the Old Spice commercials have manifested the idea of machoism and masculinity into the minds of the male consumer – its primary target audience. Sensory Marketing evolved over time, with visual and tactile associations being put into practice by beverage industry stalwarts like Coca Cola and Pepsi. One of the most famous shapes in the world is the iconic contour fluted lines of the Coca-Cola bottle. The bottle which took 3 years to design was initially made so, in order to stand out from the competition, but realising that the tactile responsiveness of the consumer was so immense that over decades of tweaking and polishing, it today stand testament to the power of sensory marketing.
The hospitality industry is a key recipient of advantages of Sensory Marketing. The Holiday Inn group of hotels uses combination of scents with rig ht kind of music that influences customers to stay longer in their rooms, lobbies and bars. It uses different kinds of scents for different occasions. For example, rose scent is used for weddings, wedding s, leather based scent for business meetings, etc.
Nowadays this type of sensory marketing techniques is used by many hotels mainly to attract the customers towards hotel and increase their duration of stay. This i mplementation shows that sensory marketing techniques like aroma and music enhances customer experience.
Marriott Hotels has launched a knock-your-socks-off travel experience that provides customers a virtual tour of London and Hawaii. This virtual experience includes motions, sounds, and sprays of water to provide a “4-D” experience that make the virtual experience as close as possible to a real
one. The journey starts in a lobby bar of Marriott Baltimore Waterfront- a computer generated version. Customer moves across the lobby to a video map of Hawaii after that he enters and enjoys the scenery of Black Sand Beach in Maui. The setting is such that you can feel the wind, hear the waves, see the sand. Everything looks and feels like real.
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Michael Dail, vice president of brand marketing for Marriott Hotels, says the Teleporter is just one component of the chain’s Travel Brilliantly campaign to get th e public to think of Marriott as something a little more hip and high tech than an average business hotel. “We’re pioneering what
travel is going to mean in the future and how technology can enhance the experience," he says. “Marriott is not that traditional company you once thought of.”
This technique is used to provide customer a real travelling experience using combinations of technology, which indeed motivates viewer and develops in them a strong desire to actually visit the place.
Beam Suntory is an American manufacturer of spirits. Bourbon whiskey is one of its principal products. In order to promote the same, company has created bourbon tasting station at the Frankfurt Airport. To promote brand’s premium bourbon range , the company provides travellers with a bag of popcorn
when the travellers are watching the movie about its brands . Besides this, the visitors are encouraged to have an experience of bourbon tasting at touchscreen sampling bars. The bourbon tasters are also provided with a copy of Bourbon Bugle newspaper, personalized with a photo. This Beam Suntory activation has been promoted on social media and it is expected that this will reach about 2.5 million consumers globally. This case shows that sensory marketing techniques like visualization, taste, personal touch, etc. attracts and retain consumers.
The Ritz Carlton , Berlin changed customer’s perspective of identifying wines by smelling it and by serving the same in an innovative way. The wines were perfume-inspired and guests of the hotel can choose their drink by its smell. This experiment aimed at redefining taste by bringing in an all new sense of refreshing smell, which not only smell like perfume but also get reflected in the taste. These scented cocktails were served in the bottles of perfume.
Olfactory sensitiveness towards high end beverages is a key f actor in the luxury segment of branding . The texture of a bourbon, the sweetness of a wi ne, the punch of soda are all al l factors which have been capitalised upon by manufacturers time and again to enhance the customer experience and perception. These experiences towards
Peroni, an International player in the beverages industry originates from Italy. True to its roots and traditions it epitomises all that is Roman. In multiple airports around the world, Peroni aims at creating SENSORY MARKETING
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a multi-sensory experience called the “House of Peroni”. Here the guests will be greeted with an estimation of a Shakespearean Roman Garden, which extrapolates into the Orange Room, where one can experience the rush of brewing without actually having to get their hands dirty. Upon estimation and initial analysis, Peroni expects to gain a larger market share in the Asia P acific region owing to this recognition.
Sensory seduction has found widespread implementation in the automobile sector as well. With customer expectations rising, high value products are a tough sell I any segment. The consumer desires an experience over a commodity. Capitalizing on this growing trend and expectation, Porsche launched The Porsche Studio , a multi-dimensionary experience which simulates the sheer magnanimity of driving its premium segment cars.
A close competitor, Mercedes-Benz launched a campaign named ‘Sound with Power’. The advertisement for the campaign shows a man in an outfit having LEDs fitted. The man is driving Mercedes-Benz E 63 AMG and the LEDs are blinking in the line of the sound being played, reflecting his emotions. The ad has used Tinue Tempah’s track Pass Out. An online tool has also been introduced
which allows to mix the sounds played in the ad with the track.
These cases are testament to the power of the auditory sensation, and its effect on retention and recognition in the minds of the consumer. Acoustic elements have been gaining in importance within the context of changing conditions of brand communication (Spehr 2008). It is more relevant today than ever to entice the consumer and build a rhetorical connect between him and the brand. The likes of Merced Benz, Porsche, Abercrombie & Fitch are leap frog levels ahead of the pack in implementation of acoustic elements to build traction in the market place and convert the same into market share and sales.
Besides attracting the five human senses, building an emotional connect stands to be a key factor in association of customer loyalty in an ever so stifling market place. Standard Life conducted a research study, saving in Mind, on the mental status and the emotions of people when they are thinking about their future savings. This investigation was carried out with the help of neuroscience to test that how communication can help in changing the way people feel. The company claims these techniques to be first ever used in the financial sector. The motive behind this is to understand the real emotions of
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customers which affect their decision and to communicate with them, the positive aspects in order to motivate them for claims this long term savings.
Holiday Auto, a car hire portal based out of Europe, installed vending machines at train stations. Bottled water was scented with the essence of freshly cut grass, beach scents, barbecue scents etc. On interviewing the consumer, the primary feedback deri ved was that the scents made them recollect their past holidays and the good times associated with them. This sense of nostalgia brought about a euphoric upsurge in the likeliness of people packing their bags towards a deserved break. This technique not only aided in generating a positive trend in the sales of Holiday Auto, but also connected it with the consumer at a primal level associating itself with the feeling of euphoria and happiness in the minds of the masses.
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CONCEPTUAL FRAMEWORK
With an initial level analysis and understanding of the impli cations of Sensory Marketing techniques in the beverages industry, a number of key parameters can be assumed to have a decisive impact on the effectiveness of sensory marketing on the sale of a product or a category. The key explanatory variables having a decisive impact on the effectiveness of sensory marketing a re –
Visual Appeal
Tactile Appeal
Olfactory Appeal
Auditory Appeal
Emotional Appeal
The proposed framework of dependence on the effectiveness of sensory marketing is -
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RESEARCH METHODOLOGY
Formation of research problem It is the pain area for which the researchers need to find or suggest some solutions. The research problem pertaining to the topic is –
1. Implementation of sensory marketing techniques in the beverages industry, in the Middle East and Asia Pacific region 2. What is the scope of sensory marketing techniques for beverage industry in Middle East and Asia Pacific region? 3. How sensory marketing impact consumer behaviour in Middle East and an d Asia Pacific region?
Objective of the study
To understand the scope and implementation of sensory marketing in the industry.
To study the impact of sensory marketing in attracting and retaining customers.
To study different elements of sensory marketing techniques and their impact on marketing in beverages industry.
To generate valuable intel and to draw out difference in approaches towards the implementation of Sensory Marketing techniques in the Middle Eastern Markets and the Asia Pacific Markets in the beverage industry.
Scope The researchers will make an attempt to collect data, which is representative of Dubai and Sydney. This scope of study will be undertaken in parts of Dubai and Sydney as a miniaturized model of the Middle Eastern Market and the Asia Pacific Region. These results can be extrapolated onto the entire region as a micro chasm. Also Al so one more reason why this areas were taken into consideration was that the areas under research are heterogeneous in nature. The study is restricted to:
1) To beverage industry. 2) To Dubai and Sydney 3) To only one statistical tool namely chi-square.
Hypothesis. Primary objectives were considered by researchers to develop hypothesis. The corresponding hypothesis pertaining to these objectives are as follows:
Hypothesis 1: H0: there is a negative effect of the visual stimuli on consumers of sensory marketing towards consumer buying behaviour. H1: there is a positive effect of the visual stimuli on consumers of sensory marketing towards consumer buying behaviour.
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Hypothesis 2: H0: there is a negative effect of the auditory stimuli on consumers of sensory marketing towards consumer buying behaviour. H1: there is positive effect of the auditory stimuli on consumers of sensory marketing towards consumer buying behaviour.
Hypothesis 3: H0: there is a negative effect of the olfactory stimuli on consumers of sensory marketing towards consumer buying behaviour. H1: there is a positive effect of the olfactory stimuli on consumers of sensory marketing towards consumer buying behaviour.
Hypothesis 4: H0: Emotional connect with a brand or a marketing technique does not affect the decision making of a consumer H1: Emotional connect with a brand or a marketing technique affects the decision making of a consumer
Data collection Primary data: Primary data are those, which are collected for the first time (first-hand information). A structured questionnaire will be built with objective of research and hypothesis. Thus, data using the structured questionnaire was collected from consumers. The view of Industry Experts shall also be taken into account to foster a hands on understanding.
Secondary data: Secondary data are those, which are obtained from someone’s research (second hand information). Researches have referred to various Magazines, trade journals, reference books and websites.
Research instrument. To collect the appropriate data, the researchers will be useing questionnaire as the research instrument. The questionnaire so formed includes both open ended and close-ended questions. Close-ended questions were used so that appropriate statistics could be calculated. SENSORY MARKETING
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Open-ended questions were used to find out the reviews of the respondents so that the researchers can make proper recommendations.
Research design Research design is an outline of research study, which indicates that what researcher will do right from initial stage till final data analysis. Research design constitutes decision regarding what, when, where, why, and how concerning with respect to an enquiry. A descriptive design was decided to implement as per the demand of this current research. Thus, the research design adopted by the researcher for the study was descriptive to cover the various facts of the study.
Sampling plan /technique: A sampling design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt to select units from the sample. It will also indicate that number of units table included in the sample also known as sample size. The sampling technique adopted by the researcher was Random Sampling , which everyone in the population an equal chance to be selected for sampling.
Scaling Approach: Five level Likert scale is used by researchers to get level of agreement or disagreement on a symmetric agree-disagree scale. Example of five level Likert scale: 1. Not Affected 2. Slightly Affected 3. Neutral 4. Affected 5. Highly Affected
Testing hypothesis. The researchers have made an attempt to test the dependency or independency of variables by testing the hypothesis at 5% level of significance using chi-square test.
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Limitation Limitation of research: 1) Time. 2) Cost. 3) Demographic Factors. 4) Respondent Biasness.
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SAMPLE QUESTIONNAIRE Name: _____________________ ___________________________________ _________________________________ ________________________________ _____________ Address: _________________________________________________________________
Gender:
Age:
Male
17 18-24 years
Occupation:
Female
25-31 years
Student
Service
32-39 years
Business
40-46 years
47 years & above
Professional &Others
Q1. Do you drink any kind of beverage? Yes
No
Q2. Rank the following factors which influenced your purchase decision of beverage beverage in order order of their importance. importance. (5 being the most most important and 1 being being the least least important) Visual Appeal Auditory Appeal Olfactory Appeal Tactile Effect Gustative Effect Emotional Connect Media Interaction Price Quality
1
2
3
4
5
Q3. What type of visual stimuli affects you the most?
Q4. Based on your experience with your preferred beverage how likely did it affect your level of satisfaction by touching your senses? Highly Dissatisfied
Dissatisfied
Neither Satisfied
Satisfied
Highly Satisfied
Nor Dissatisfied
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BIBLIOGRAPHY
Sensory marketing: the multi-sensory brand-experience concept - European Business Review
American Marketing Association
Marketing Dissertation: The concept of Sensory Marketing, Halmstad University
http://www.mintinnovation.com
http://listverse.com
https://www.theguardian.comhttp://www.trendhunter.com/trends/bourbontasting.
http://www.trendhunter.com/trends/ritzcarlton-berlin
https://www.marketingweek.comhttps://www.marketingweek.com
Harvard Business Review, March 2015
Broad Sensory Branding", Journal of Product and Brand Management
Impact of colours on consumer purchase behaviour - Leatrice, Eiseman
Multisensory Experiential Marketing - Experiential Marketing Blog
How Retailers Manipulate Sight, Smell, and Sound to Trigger Purchase Behaviour in Consumers - Khan, H.
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Appendix A2 – GIP (101) – Draft Research Proposal Review (Term 1) MGB- 16 Cohort
Student Name
Roll No & Stream
1. Rahul Saraswat
CM31
2. Chirag Kothari
CM69
3. Rohan Temkar
CM48
1. Proposed Research area (include details of industry & region) – The analysis and comparative study of the i mplementation of Sensory Marketing in the beverag es industry with reference to the Middle Eastern and Asia Pacific Markets.
2. What are the broader issues that are to be studied? The broader issues that are to be studied are as follows: 1. To understand the scope and implementation of sensory marketing in the industry. 2. To study the impact of sensory marketing in attracting and retaining customers. 3. To study different elements of sensory marketing techniques and their impact on marketing in beverages industry. 4. To generate valuable intel and to draw out difference in approaches towards the implementation of Sensory Marketing techniques in the Middle Eastern Markets and the Asia Pacific Markets in the beverage industry.
3. What is the importance and significance of this research? How will this contribute to the existing body of knowledge or practice? This research will help us to collect, col lect, gather, interpret and analyse the current scenario of sensory marketing in beverage industry of Middle East Asia and Asia Pacific region which in turn will help us to suggest recommendations for enhancing and improving impact of sensory marketing in beverage industry of Middle East Asia and Asia Pacific region and to analyse the future of sensory marketing.
4. Attach the summary of your initial readings that have influenced your selection of the research topic / problem. The initial readings on the topic of implementation of sensory marketing intrigued us on the grounds of how multi-national corporations trick consumers subconsciously into retaining and recollecting their brands. These ingenious techniques stand testament to the progress that the marketing world has done in an ever so competitive world. Right from marquis organisations like Coca Cola to start-ups like Holiday Cars, sensory marketing techniques require minimal investment and maximum retention. Thus in order to understand its implementation and analyse its effects on the beverages industry, we shall focus on the same and aim towards attaining a clearer grasp over the di fference in its implementation in different geographies namely the middle eastern market and the Asia Pacific region. 5. Status of approval by the academic mentor (Select as applicable) (to be filled by mentor)
1.
Yes, discussed and fully approved.
[Score range - 8-10 ]
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2. 3. 4.
[Score range 6-8 ] [Score range 5-6 ]
Yes, discussed and approved with minor changes within the research area. Discussed with changes in the research area, student to resubmit the SOP. Incomplete, resubmit
Any other comments comments –
Next steps: (to be filled by student)
Completed document to be submitted to IIP office by the student.
Student Name & Signature:
Rahul Saraswat
Student Name & Signature:
Chirag Kothari
Student Name & Signature:
Rohan Temkar
Mentor Name & Signature:
Shital Vakhariya
_____________
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