CREATING BRAND DEMAND
Marketers are realizing today that it is important to their businesses creating brand demand given the increasing number of brands in the market. Since consumers appreciate receiving merchant offers that are tailored specifically to them not to mention rebates and the liberal use of discounts, marketers are going all out to woo the consumer And the local mall is turning out to be the favorite place to woo them.
Malls have become thee second most popular place for consumers to participate in a promotion after the local store. They are also turning out to be an observatory for studying patterns in consumer behavior.
In many ways, malls reflect the state of society and act as agents of change. Rising incomes and busier lifestyles are creating a space for malls in the lives of the urban â€˜mass affluentâ€™.
In a bid to understand the mall-hopper, Mudra groupâ€™s specialized division, Kidstuff promos and Events conducted Promo Survey 2006. Conducted across 10 cities in India, it covered over 2,100 consumers and over 800 retailers. The survey sought to seek the rationale behind consumer demand.
The survey revealed some 17% of respondents shop twice a week and 34% every week. Around 41% visit supermarkets which is a massive increase over last year.
The biggest change seen over the last year was that even though there are more brands and more people who have participated in promos, consumers are finding comfort in old, familiar brands. Lux, Pepsi, Sundrop are still the favorite brands in the fast moving consumers goods space while Nokia, Maruti, Hero Honda continue to rule in the telecom and the transport space.
Interesting tit-bits gleaned from the survey showed that some 57% respondents are loyal to certain brand while a majority of them give priority to the price / budget before trying out a new brand.
Prize and the promotion
A whopping 87% of Indians have participated in some form of promotion and 53% have won some prize or the other. About 45% have participated in the promotions carried out in malls or multiplexes, with the majority admitting to participating in promotions for mobile phones. Some 40% even agreed to change their buying behavior based on celebrity endorsements, the survey showed.
In order to win a prize, consumers didnâ€™t want to put in extra effort. Most were wooed by an instant prize at the point of purchase.
The survey showed how sales promotion campaigns could incite trial for a new product with 53% of the consumers agreeing that their purchase decision was actually influenced by the various promotions on offer.
The survey showed that in about 39% cases, if there was a bad rumor about a brand, sales dropped rather rapidly.
The survey also attempted to seek out the retailer, who often influences a consumerâ€™s buying decision.
According to retailers, in about 43% cases, consumers usually ask for a specific brand, however the retailer also recommends a typical brand depending on its demand or if they get good margin from the concerned company.