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Slide 2: introduction

Brand loyalty: The American Marketing Association defines brand loyalty as: The situation in
which a consumer generally buys the same manufacturer-originated product or service repeatedly over time rather than buying from multiple suppliers within the category

Spurious loyalty: Customers may repurchase a brand due to situational constraints a lack of viable alternatives, or out of convenience.

Price promotion: Price promotions are defined as promotions such as Coupons, Cents off,
Refunds, and Rebates that temporarily reduce the cost of the goods or service (Cooke, 1983). Nonprice promotions are defined as promotions such as giveaways (freebees), or contests in which value is temporarily added to the product at full price.

In contrast to the short term success of price promotions, the impact of coupons and multi-item promotions on customers future brand choices is vague. From a managerial perspective it is crucial whether promotions increase or decrease brand loyalty. Managers hope that price promotions encourage brand loyalty, but recent research shows that price promotions, especially temporary price reductions, reduce brand loyalty. FMCG: The term FMCG (fast moving consumer goods), although popular and frequently used does not have a standard definition and is generally used in India to refer to products of everyday use. Conceptually, however, the term refers to relatively fast moving items that are used directly by the consumer

Slide 3: Objectives
To study price promotion based on brand loyalty in FMCG sector. To examine price offs and relative importance of different attributes while responding to a price promotion in brand loyalty. To study the effect of price promotion in Weak and Strong brands.

Slide 4: methodology and hypothesis


Methodology: In this paper, examine that the effect of price promotion used by Stronger brands
and the Weaker brands. The data is collected from 127 retailer units of Coimbatore district to find the strategies followed by FMCG sector. The Datas are tested by using percentage sales method.

Hypothesis

H0: There is no significant relationship between price promotion and brand loyalty

H1: There is a significant relationship between price promotion and brand loyalty

Slide 5: Comparison

Slide 6: analysis of brands (sales and profit) HUL


The chart indicates that the sales of the HUL for the year 2009-10 are 18220.27 and for 2010-11 are 20305.54, it shows their sales in the increasing trend. Profit for the year also is high for the year 2010-11 with compare to 2009-10.

Slide 8: sales and profit Nirma


The sales for the year 2009-10 is 5008.72 , but in 2010-11 is decreased to 4831.61.The profit for the year is increased in 2010-11 with comparing to 2009-10, so by studying the sales and profit of both the brands for the three years, it shows that the Nirma is weaker than the HUL.

Slide 10: brand stock


It gives idea about the capacity of the retailers to stock the goods and also the variety of the products they are stocking. It will also make clear the demand of the goods in their stores and the selling of the product in market. Most of the retailer stocks all types of soap and detergent.

Slide 12: factor ranking


It tells about the priority the influencing factors to the consumers and also the weight age of that factor over other factors.

In the result people are more quality and price oriented. On the other hand people are also conscious about the company image. Because sometimes the consumer remember that name of the product by the company name and also from the past performance of that company Fragrance and packaging are not influencing factor as per the respondents.

Slide 14: purchasing pattern


This could be a very help question to understand the role of retailers in the purchase decision. The graph shows that many retailers are not suggested to purchase particular brand because of personal relation or that customer are brand loyal. While 42% of the retailer are suggesting the consumers to buy particular brand. There could be many reasons like, extra margin, relations with consumers and quality of the products which retailer may get the benefit of the same.

Slide 16: impulsive buying


The results shows that why the retailers suggest the consumers to buy particular brand. In the graph and table it is clear that for margin and of better relations with consumers and too provide quality product to consumers they suggest consumers too bye particular brand. For the company it may be helpful to target such retailers to sell their product in the market easily.

Slide 18: impulsive offers


The chart shows the demand of various types of promotional schemes in the market by the consumers. Almost all types of schemes are being demanded by the consumers in the market but there are three major schemes which consumers generally look at the time of purchase or before that. Price off, product bundling and extra quantity are more demanded by the consumers over others schemes.

Slide 20: promotions of Nirma


From the above graph shows the Price promotions offered by the NIRMA Ltd to the retailers to attract them towards stocking their goods and also stop them switching them too other major players in the market. NIRMA is mainly offering credit facility which is offered by all major players it may differ in the time limit of the credit. It is also providing extra margin, and units with occasional gift with their schemes.

Slide 22: promotions of hul


The chart shows that the HUL is not using the Price promotions regularly, they using it occasionally. Only few retailers respond to promotions offered by the HUL

Finally after comparing both the brands i.e. Nirma & Hul the results predicts that the price promotions are used by the Nirma is more than the Hul. Since the Nirma is the weaker brand hey using more tactics of promotions to cope up with the market situation. On the other hand Hul is building the customer by their brand image and also not using promotions frequently because of their quality in their products

Slide 24: conclusion


Price Promotion has ceased to be major differentiator at least in the metros, with almost all companies offering similar freebies and gifts. As a result now marketers have to find out some innovative ways of Price promotion to differentiate from competitors. Currently Price off and Bye one get one free offers are very effective to attract the consumers towards the products. It shows that the price promotion strategy doesnt affect the stronger brand, since the name of the brand itself attracts the customer. On the other hand the weaker brand has to spend more on price promotions to stay in the market, this is proved by the Nirma, over the past two years the sales and profit is very low comparing to HUL.Even though Nirma spent more on price promotion strategies but couldnt achieve their sales and profits with compare to HUL. HUL didnt concentrate much on promotions but their sales and profits are in an increasing trends, this is because of their brand image and Customer satisfaction towards the product.

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