Strategic Development parts 3-4

Strategic Development part 3: Understanding Consumer Behavior

Maslow’s Hierarchy of Needs

Theodore Levitt said, “Products are problem-solving tools” (Felton, 2013). When somebody buys a new jacket, they are not just looking to stay warm. They are also buying a status symbol that raises their esteem. A good product can solve multiple problems if we understand the human needs that must be addressed. Psychologist Abraham Maslow described a “hierarchy of needs” in human beings that start with low level physiological needs like hunger that must be met first before ascending to higher-level psychological needs like love and esteem (Felton, 2013).

Here are a few ways that Boxpark Sushi can respond to these needs.

1. Physiological needs: hunger, thirst, warmth, pain avoidance, sexual release, and others.

Boxpark Sushi satisfies hunger and thirst with delicious food and beverages.

2. Safety needs: housing, clothing, financial and physical security.

Customers should be reassured about the safety of consuming raw seafood. Cooked and non-seafood options should be available, along with a “freshness guarantee”.
Boxpark’s container stores might be claustrophobic for some customers. An open layout with lots of daylight can make the restaurant more comfortable.

3. Love and belongingness needs: social acceptance and personal intimacy.

Customers are part of the sushi tribe, a select group according to a survey (Shelby, 2015) that found that 45% of people in the U.S. Midwest have never tried sushi.
Diners are treated like a friend by their sushi chef, a “sushi sensei” who can educate the diners while preparing their food.
Boxpark is a small, community-based shopping experience. Live entertainment and common dining areas improve public interactions.

4. Esteem needs: feelings of adequacy and achievement, approval, prestige, social status

Sushi eaters are considered more sophisticated and cultural than the average Joe.
Learning about and trying different kinds of sushi is an achievement.
Sushi is often eaten at celebratory occasions.

5. Self-actualization needs: the need to understand, cognitively and aesthetically; the ultimate integration of the self and realization of one’s highest inner potential.

For some people, eating sushi can be a spiritual experience. The artistry and culture of sushi makes it more than just a quick meal.
East Side Milwaukee is located near the University of Wisconsin Green Bay – Sheboygan Campus. Eating sushi while attending college lets students expand their culinary horizons while preparing for their future.

Settle and Alreck’s Shopping List of Needs

Robert Settle and Pamela Alreck expanded on Maslow’s hierarchy with their own shopping list of human needs (Felton, 2013). Unlike Maslow’s list, these needs are not presented in the order of which they should be addressed.

Achievement: the need to perform difficult tasks, exercise one’s skills.

According to a survey by Pei Wei (Shelby, 2015), 11 percent of sushi eaters consider themselves a “black belt” in sushi eating and 27 percent of sushi eaters consider themselves a “white belt” in sushi eating. This suggests that the more sushi the customer has tried, the greater sense of accomplishment.

Independence: the need to be autonomous, have options, be different.

Many people enjoy the freedom of options with the “build your own” meals from chain restaurants like Subway and Chipotle. The central Florida chain Sus Hi Eatstation does the same for casual Asian food with customizable sushi roll, bowls, and burritos. Letting diners craft their own meal helps them feel independent.

Exhibition: the need to gain public attention, show off, be noticed.

Successful brands have a lot of interaction with their customers, on social media and in real life. Promotions and in-store events let customers show off their love of the brand. For example, Sus Hi Eatstation offered free sushi to diners who dressed like a ninja on International Ninja Day (White, 2019).

Recognition: the need to be highly regarded by others, to be held up as a good example.

Boxpark Sushi menu items could be rated with a system based on karate’s colored belts. Accessible, American items like California rolls would be rated “white belt”, while sushi with more unusual ingredients like Natto (fermented soybeans) and Nama-shirasu (immature sardines) would earn eaters a coveted “black belt” (Joy, 2017).

Dominance: the need to exercise power over others, direct and supervise, have influence.

Sus Hi Eatstation tells customers to “master their meal” by customizing the ingredients. This choice of wording appeals to the need for dominance.

Affiliation: the need to be closely associated with others, the need for relationships.

Frequent sushi eaters are part of the sushi “tribe”, a select group of enthusiasts who can share their knowledge and love of sushi.
Group dining areas in the Boxpark mall encourage interaction with other diners.

Nurturance: the need to provide care for others, to have and protect.

Many restaurants give back to the community by supporting charities and local school fundraisers. Customer participation in these efforts fulfils the need for nurturance.

Succorance: the need to receive help from others, be comforted, be encouraged and supported.

According to a survey by Pei Wei (Shelby, 2015), 30 percent of first-time sushi eaters had someone help them order. Boxpark Sushi chefs can provide this kind of education and reassurance to help people feel more comfortable trying something new.

Sexuality: the need to establish and develop one’s sexual identity, be sexually attractive, give and receive sexual satisfaction.

Can sushi be sexy? The Japanese practice of nyotaimori, serving sushi on a nude model’s body, originated in the samurai period (Scalza, 2014). “Body sushi” is a controversial practice that some consider degrading to women, yet it is still practiced in Japan and by private catering companies in the West.

Stimulation: the need to stimulate the senses, pursue vigorous activity, engage the mind and body, stimulate the palate, be active.

Sushi stimulates the palate with interesting flavors and textures.
Boxpark Sushi chefs interact with customers, engaging their minds.

Diversion: the need to relax, have fun, escape from routines, be entertained.

For many, sushi is eaten at celebratory occasions like birthdays and anniversaries. The experience is entertaining and engaging, a chance to have fun with friends and family.
Boxpark malls are modern and hip, the perfect place for hanging out with friends and meeting new people.

Novelty: the need to alter routine, be surprised, acquire new skills, have new and different experiences.

There are many types of traditional sushi, and even more recent innovations in Western style sushi. Every visit to Boxpark Sushi provides an opportunity for diners try something new.

Understanding: the need to comprehend, teach and learn, discover patterns, make connections.

Sushi is more than a food. In its highest form, it is an art that is appreciated the more it is studied. Learning more about sushi with each visit to Boxpark Sushi appeals to the need for understanding.

Consistency: the need for order and cleanliness, to control uncertainty and avoid ambiguity, make accurate predictions.

Consistency is highly valued by many restaurant eaters, which is one of the reasons fast food chains like McDonalds are so popular with Americans. A Big Mac bought in Florida is identical to one bought in Nevada. Boxpark Sushi can also deliver consistent food but with a more personal, upscale experience.

Security: the need to be free from fear, feel safe and protected, avoid accidents, acquire assets.

Customers should be reassured about the safety of consuming raw seafood. Cooked and non-seafood options should be available, along with a “freshness guarantee”.
Boxpark’s container stores might be claustrophobic for some customers. An open layout with lots of daylight can make the restaurant more comfortable.
Upper East Side and Lower East Side Milwaukee have high crime statistics (Areavibes, 2018), so special efforts should be made to ensure the safety of Boxpark visitors.

References:

Areavibes. (2018). Milwaukee, WI Crime. Retrieved from https://www.areavibes.com/milwaukee-wi/crime/

Felton, G. (2013). Advertising: Concept and Copy (Third). New York: W.W. Norton.

Joy, A. (2017, October 29). 10 Unusual Sushi Toppings You’ll Learn to Love. Retrieved from https://theculturetrip.com/asia/japan/articles/10-unusual-sushi-toppings-youll-learn-to-love/

Scalza, R. (2014, September 6). Naked Sushi Makes Waves in Vancouver. Retrieved from https://www.insidevancouver.ca/2014/09/06/naked-sushi-makes-waves-in-vancouver/

Shelby Food Service. (2015, March 24). Pei Wei Releases Sushi Survey Results, Adds New Rolls. Retrieved from https://www.keltonglobal.com/recognition/pei-wei-releases-sushi-survey-results-adds-new-rolls/

White, B. (2019, December 2). Celebrate International Ninja Day With Us And Score Free Sushi!Retrieved from https://sushieatstation.com/celebrate-international-ninja-day-with-us-and-score-free-sushi/

Strategic Development part 4: Analyzing the Marketplace – Segmentation

Demographics

Gender: Sushi appeals to all genders, although a survey by Pei Wei (Shelby, 2015) suggests that American males are more likely than females to have tried sushi.

Age: 25-35. The survey by Pei Wei (Shelby, 2015) reports than 84 percent of 18-34-year-olds have tried sushi, while only 50 percent of seniors (age 65+) have tried it. The median age of East Side Milwaukee is 29.3 years (City-Data).

Location: East Side Milwaukee, Wisconsin.

Mobility: Car. Demographics of East Side Milwaukee gathered from the 2017 American Community Survey (Point2Homes) report that the vast majority of East Side residents use an automobile as their primary means of transport.

Income: $66,000 Median Household Income is reported for ages 25-44 in East Side Milwaukee (Point2Homes).

Expenditures: The U.S. Bureau of Labor Statistics (2019) reports that American consumers spent an average of $3,459 on food away from home in 2018, up 2.8 percent from 2017.

Occupation: White collar – technical, sales, and office occupations (City-Data).

Education: College graduate – over 50 percent of East Side Milwaukee residents have a Bachelor’s or Graduate Degree (Point2Homes).

Nationality: Primarily American. 89 percent of East Side Milwaukee residents are U.S. born citizens (Point2Homes).

Religion: 71 percent of East Side Milwaukee residents are Christian and 25 percent are non-religious (Pew Research Center).

Family Status: Single, no children. Over 55 percent of East Side Milwaukee residents have never married (Point2Homes) and parents are less likely bring their children to sushi restaurants that other types of food establishments with a kid’s menu.

Psychographics

The psychographic profile below is based on my personal experiences with friends, family, and associates who enjoy sushi on a regular basis.

Attitudes: Multicultural and open to new foods and experiences.

Opinions: Concerned about the environmental impacts of their food choices.

Habits: Exercises regularly and tries to maintain a healthy diet.

Personality: Friendly and outgoing. Interested in new experiences.

Lifestyle: Into physical fitness but not obsessed. Works hard during the week and cuts loose on the weekends.

Hobbies: Art, running, and yoga. Enjoys travelling to exotic destinations.

Buying Behavior

1. When:

Usage Rate: Sushi is primary eaten for lunch or dinner, and few sushi restaurants are open before 11AM. Some aficionados eat it weekly, but most diners it is eaten less often.
Readiness Stage: People are aware of sushi, but many who haven’t tried it are stuck on the “raw fish” aspect. Container malls are less familiar to Americans, but the concept has caught on in cities across the world.

2. What: Eating healthy food in a hip, urban setting. Boxpark is a place to hang out and shop, not just eat and go.

3. Why:

Loyalty status: Low, even among sushi eaters. Good sushi is available from several restaurants in East Side Milwaukee, but the none in a mall-like setting where customers can do other shopping.
Attitude toward product: Positive among sushi eaters. Negative or cautious among consumers with “stuck points” like raw fish, eating with chopsticks, and unfamiliar words.

References:

City-Data. (n.d.) East Side neighborhood in Milwaukee, Wisconsin. Retrieved from: http://www.city-data.com/neighborhood/East-Side-Milwaukee-WI.html

Pew Research Center. (n.d.). Religious Landscape Study – Adults in Wisconsin. Retrieved from: https://www.pewforum.org/religious-landscape-study/state/wisconsin/

Point2Homes. (n.d.). East Side Milwaukee Demographics. Retrieved from: https://www.point2homes.com/US/Neighborhood/WI/Milwaukee/East-Side-Milwaukee-Demographics.html

U.S. Bureau of Labor Statistics. (2019, September 10). Consumer Expenditures 2018. Retrieved from https://www.bls.gov/news.release/cesan.nr0.htm