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    FMCG Toothpaste

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    sumit kewalramani
    1) The document discusses factors that drive brand loyalty for fast-moving consumer goods (FMCG) products through qualitative research methods. It explores how value addition, price, quality, trust, and sales promotions impact brand loyalty. 2) A literature review found that brand loyalty is driven by adding value beyond discounts, maintaining low prices to compete, high product quality, building consumer trust to reduce purchasing risks, and preference for non-monetary promotions. 3) A focus group discussion with 10 participants found that advertisements, quality, trust in a brand, social influences, and functional benefits positively impact loyalty, while price negatively impacts loyalty.

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    FMCG Toothpaste

    Uploaded by

    sumit kewalramani
    101 views7 pages
    1) The document discusses factors that drive brand loyalty for fast-moving consumer goods (FMCG) products through qualitative research methods. It explores how value addition, price, quality, trust, and sales promotions impact brand loyalty. 2) A literature review found that brand loyalty is driven by adding value beyond discounts, maintaining low prices to compete, high product quality, building consumer trust to reduce purchasing risks, and preference for non-monetary promotions. 3) A focus group discussion with 10 participants found that advertisements, quality, trust in a brand, social influences, and functional benefits positively impact loyalty, while price negatively impacts loyalty.

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    1) The document discusses factors that drive brand loyalty for fast-moving consumer goods (FMCG) products through qualitative research methods. It explores how value addition, price, quality, trust, and sales promotions impact brand loyalty. 2) A literature review found that brand loyalty is driven by adding value beyond discounts, maintaining low prices to compete, high product quality, building consumer trust to reduce purchasing risks, and preference for non-monetary promotions. 3) A focus group discussion with 10 participants found that advertisements, quality, trust in a brand, social influences, and functional benefits positively impact loyalty, while price negatively impacts loyalty.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    101 views7 pages

    FMCG Toothpaste

    Uploaded by

    sumit kewalramani
    1) The document discusses factors that drive brand loyalty for fast-moving consumer goods (FMCG) products through qualitative research methods. It explores how value addition, price, quality, trust, and sales promotions impact brand loyalty. 2) A literature review found that brand loyalty is driven by adding value beyond discounts, maintaining low prices to compete, high product quality, building consumer trust to reduce purchasing risks, and preference for non-monetary promotions. 3) A focus group discussion with 10 participants found that advertisements, quality, trust in a brand, social influences, and functional benefits positively impact loyalty, while price negatively impacts loyalty.

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    © All Rights Reserved
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    of 7

    Marketing Research

    What factors drive Brand Loyalty in FMCG products?


    Qualitative Research

    Section 1
    Group 6

    FT201003 Abhijit Nidichenametla


    FT201077 Shrikant Anandrao Mirji
    FT201084 Sumit Kewalramani
    FT201091 Tanya
    FT201097 Vignesh S
    FT201103 Utkarsh Ranjan
    Introduction

    FMCG:

    Fast Moving Consumer Goods (FMCG) are products that are sold quickly. Many fast-moving
    consumer goods have a short shelf life. That is either because of high consumer demand or as a
    result of fast perishability of the products. Examples of FMCG are non-durable goods such as
    packaged foods, beverages, toiletries and other consumables.
    Other goods, such as pre-packaged foods, soft drinks, candies, and toiletries have high turnover
    rates. Sales are sometimes influenced by seasonal periods and the discounts offered.

    Brand Loyalty:
    Loyalty is a deeply held commitment to re-patronize a preferred product or service despite
    competition. In other words, loyalty is a manifestation of commitment. Retaining an existing
    customer

    Buying Behavior:
    1. Straight rebuy: Same goods or services are bought without any change is specifications.
    2. Modified rebuy: Modified Rebuy is a buying situation in which an individual or
    organization purchase goods that have been purchased previously but changes either
    the supplier or some other elements of the previous order.
    3. New buy: The customer opts for a different brand.

    Target market
    ↓
    Awareness
    ↓
    Trial
    ↓
    Recent User
    ↓
    Regular User
    ↓
    Most often used
    ↓
    Loyal
    Literature Review:
    Value Addition
    Brand loyalty is about retaining customers for the long term, brands must go above and beyond
    to add values that resonate with the customers. Discounting, Special offers, free gifts etc can
    lure the customers into buying the product for once or twice but when it comes to loyalty what
    matters is what values your product is adding to the customer. FMCG products are part of day
    to day life of a customer, so the value addition is part of a routine.
    Price
    In the Fast-Moving Consumer Goods market, the customer focuses on affordability and wants
    low price. In such cases the brand loyalty depends on how likely a customer is to switch if the
    brand makes a change in price. Companies like HUL, P&G and ITC continuously compete against
    one another to keep a low price and make sure that customers re-purchase the product.
    Quality
    We need to identify and analyze how customers are experiencing quality, loyalty and satisfaction
    in the Fast moving consumer goods (FMCG). Research shows that:

     Satisfaction does not automatically lead to consumer satisfaction.


     Price is the most influential attribute that drives customer to discounts
     Apart from that customer loyalty and repurchase behaviour is driven by quality of the
    FMCG product that overrides Pricing aspects
     The Quality of the product are measured using the 5Qs model driving the level of
    satisfaction
     Quality of object – The technical quality
     Quality of process – The functional quality
     Quality of Infrastructure – Quality of internal competence and activities
     Quality of interaction – Quality of interaction between customer and
    company
    Trust
    Our aim is to explore the relationship among brand trust, brand affect, attitudinal loyalty and
    behavioral loyalty for low involvement daily use of FMCG products.
    Brand loyalty is essentially mirrored in the tendency of a consumer to repurchase a particular
    product over a long period of time. It can also be summed up as a measure of the following
    factors:

     brand performance aspects (cognitive);


     brand likeability (affective);
     wanting to repurchase the brand (conative);
     Commitment to the action of repurchasing (action)
    In the process of buying a product, trust is needed when there is a risk of purchasing, i.e. the
    need for trust is required only in risky situations. It reduces uncertainty, and consumers are more
    motivated to buy trustworthy brands to avoid unfavorable.
    Hence, we can say that Brand Loyalty is driven by Trust in a product in order to mitigate the risk
    of buying a low-quality product.
    Sales Promotion
    It is established that the effect of non-monetary and monetary promotions and advertising on
    brand loyalty would vary according to the extent of value addition for low and high involvement
    products. Also, it was seen that the preference for non-monetary promotions would have a
    greater impact on brand loyalty for both high and low involvement products.
    Some important findings are:

     Monetary promotions are perceived to provide more utilitarian benefits.


     Nonmonetary promotions seem to provide more utilitarian benefits than hedonic
    benefits.
     “Preference for Gifts,” a nonmonetary promotion, could negatively affect the brand
    loyalty.
     “Buy 3 get 10% off,” a monetary promotion, could have a positive impact on brand loyalty.
     Involvement has a positive relationship with brand loyalty.

    References:

     A STUDY ON THE BRAND LOYALTY OF CUSTOMERS TOWARDS FMCG PRODUCT


    https://www.academia.edu/29774767/A_STUDY_ON_THE_BRAND_LOYALTY_OF_CUSTOMERS_
    TOWARDS_FMCG_PRODUCTS_with_special_reference_to_HUL_ITC_P_and_G_AT_KOLLAM_DI
    STRICT._Introduction

     BRAND LOYALTY: How to retain customers and build brand loyalty


    https://search.proquest.com/abicomplete/docview/749970647?accountid=32499

     The relationship between risk aversion and brand loyalty


    https://www.emerald.com/insight/content/doi/10.1108/JIBR-04-2015-0045/full/html

     The relationship between risk and brand trust


    https://doi.org/10.1108/JIBR-04-2015-0045

     SALES PROMOTIONS EFFECTS ON BRAND LOYALTY


    https://core.ac.uk/download/pdf/51097630.pdf

     Loyalty, Quality and Satisfaction in FMCG Retail Market Does Loyalty in Retailing Exist?
    https://www.omicsonline.org/open-access/loyalty-quality-and-satisfaction-in-fmcg-retail-
    marketdoes-loyalty-in-retailing-exist-2167-0234.1000122.php?aid=29292
    List of Hypothesis

    It is expected that if consumers get certain functional benefits from a toothpaste, they are
    likely to be more brand loyal to that toothpaste. We therefore hypothesise that:

    H1: Tooth paste functional benefits are positively related to brand loyalty
    A price conscious consumer is more concerned with price, seeks out lower price, and better
    quality product. It has been found that high price conscious consumers look for better price
    and quality Therefore, it is expected that consumers who continuously look for price before
    purchasing a toothpaste will not purchase the same toothpaste repeatedly until it is offered at
    the nominal price continuously compared to other competitive toothpaste in the market. Most
    of the toothpaste in the market place provides discounts on a regular basis as a result price
    conscious consumers will keep on switching toothpaste if they get similar quality toothpaste at
    cheaper price. We can therefore hypothesized that

    H2: Consumer Price consciousness has negative relationship with Brand Loyalty

    Trust in a brand will help customers to reduce perceived risk and facilitate in
    purchasing the brand repeatedly. Therefore, consumers who have high trust
    in the brand will purchase it repeatedly. We can hypothesize that

    H3: Brand Trust is positively related to brand loyalty.

    Reference group influence on the purchase behaviour of a consumer can be from friends,
    colleagues, peer group, family etc.

    H4: Reference Group Influence is positively related to brand loyalty.

    H5: Tooth Paste Quality is positive related to Brand loyalty

    H6: Advertisement is positively related to Brand Loyalty.


    Conclusion from FGD:

    We conducted FGD consisting 10 participants. Findings are as follows:

    1) Advertisements influence consumer buying behaviour


    2) Price has a negative correlation.
    3) Quality has positive effect on brand loyalty.
    4) Once Trust is built for a particular brand, people tend to stick with the same brand.
    5) Social/family reference has influence on buying behaviour as well as brand loyalty.
    6) The more the benefits of a brand, the more is the brand loyalty.
    We have chosen Focus Group Discussion (FGD) for our data collection for the following
    reasons:

     It is convenient and quick.


     As we are part of a college, it is easy to conduct an FGD by reaching out to fellow
    students and we expect good quality discussion.
     The generation of interesting ideas that arise because of the conversation that
    otherwise would not have come up!
     For FMCG products, it is easier to have counter arguments as the awareness level is high
    and we gain meaningful insights.

    The reasons why we have not chosen Depth Interview so far are:

     It is time consuming and subjective. The opinion of one individual doesn’t impact the
    FMCG products.
     It is difficult to conduct a DI as the skill level of the interviewer must be very good.

    Questions

    Dependent Variable: (Brand Loyalty)

    1. I buy my favorite toothpaste brand over and over.


    2. I change my brand that I buy regularly*
    3. I would rather stick with my brand that I usually buy than try something I am not very
    sure of.
    4. Even If there is another toothpaste brand as good as my brand, I still prefer to buy my
    brand.
    5. Even if another toothpaste has the same features of my brand, I would still prefer to
    buy my brand.
    Price:
    1. I will buy my brand even if the price is increased.
    2. I will not buy my brand even if the price is decreased*
    3. My brand provides value for money.

    Reference Groups:
    1. I am influenced to buy
    2. I am not influenced by my family members while purchasing my toothpaste brand.
    3. My decision to purchase my brand is influenced by the preferences of my family
    members.

    Value Addition: Functional benefit


    1. I attain benefits from my toothpaste brand that I am loyal towards.
    2. I am satisfied with the results that I get from my toothpaste brand.
    3. My toothpaste brand doesn’t provide me the desired results (teeth whitening, bad
    breath, etc.).

    Taste
    1. Taste in my toothpaste brand doesn’t matter for me.
    2. Taste is an important aspect for me while using my toothpaste brand.

    Upgradation:
    1. I will not change my brand if other brand provides upgraded features.

    Number of times you Brush:


    1. How many times a day you brush your teeth. (1, 2, More than 2)

    Plan for data collection

     We plan to conduct a survey.


     We will make use of a 7-point Likert scale.
     We are expecting to collect data from 100 respondents via Google document.

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