I recently happen to enter a Reliance Fresh outlet and trust me it was nothing less than a year end sale! 2 of 3 items I picked in each product category had some offer or the other!
A pack of Parle Masst Chips with 50% extra!
A Colgate toothpaste and brush combo saves you 40 bucks!
2 Dabur Real juice packs and you land a cool 10% discount!
A pack of paper naphkins with 10% discount!
Buy a 2 ltr pack of Mirinda, get a Nimbooz tetra pack Free!
The list is endless!
Point to be noted here is that these are purely manufacturer discounts and offers. These offers are further backed up by the retailer discounts. You have a AB Retail More. giving you a discount on a particular purchase of deodorant or a Reliance Fresh on a purchase of your favorite cookies or maybe a Spencers on your chocolates! Choices endless, confusion limitless!
Remember those gud ol days when supermarkets were not in, and used to buy all those groceries from the local kirana. The first thing, a middle class consumer like me would ask, "Gimme my product, preferably with an offer" and the gud ol shopkeeper wud say, "Nothing much son"
Not today! An Indian consumer picks up a Colgate, a Pepsodent and a Meshwak to check the most attractive offer!! So much for brand loyalty. I may step out of a store if therez no SET WET MACHO or a Park Avenue after shave or maybe even a Cinthol soap, but will my average Indian consumer do the same???
The bottomline is, As long as your getting undifferentiable quality, y care for a brand?
Price is the real differentiator and buying is getting more impulsive than ever! That explains logic behind my last three toothpaste purchases, Colgate Salt to Pepsodent to Close up!
Dare to disagree???
A pack of Parle Masst Chips with 50% extra!
A Colgate toothpaste and brush combo saves you 40 bucks!
2 Dabur Real juice packs and you land a cool 10% discount!
A pack of paper naphkins with 10% discount!
Buy a 2 ltr pack of Mirinda, get a Nimbooz tetra pack Free!
The list is endless!
Point to be noted here is that these are purely manufacturer discounts and offers. These offers are further backed up by the retailer discounts. You have a AB Retail More. giving you a discount on a particular purchase of deodorant or a Reliance Fresh on a purchase of your favorite cookies or maybe a Spencers on your chocolates! Choices endless, confusion limitless!
Remember those gud ol days when supermarkets were not in, and used to buy all those groceries from the local kirana. The first thing, a middle class consumer like me would ask, "Gimme my product, preferably with an offer" and the gud ol shopkeeper wud say, "Nothing much son"
Not today! An Indian consumer picks up a Colgate, a Pepsodent and a Meshwak to check the most attractive offer!! So much for brand loyalty. I may step out of a store if therez no SET WET MACHO or a Park Avenue after shave or maybe even a Cinthol soap, but will my average Indian consumer do the same???
The bottomline is, As long as your getting undifferentiable quality, y care for a brand?
Price is the real differentiator and buying is getting more impulsive than ever! That explains logic behind my last three toothpaste purchases, Colgate Salt to Pepsodent to Close up!
Dare to disagree???
Very thoughtful Sam. You've given some food for thought..
ReplyDeleteSujay
I guess I'll have to disagree Sam. But before i explain myself, one question: Did u write this from a opinionative customer's pov or a insightful marketing professional's one?? Cuz though it started with a taste of the latter, i felt the argument kind of ended with the viewpoint of the former.
ReplyDeleteAgreed that this is the age of invasive comsumerism, but brand loyalty still do exist quite prominently. Otherwise brands like Apple VS MS, Nike VS Adidas, FCUK VS DKNY, Pepsi VS Coke wouldn't have had such a loyal fan following. The reason can be anything from a product innovation(Apple) to a coolness quotient(Pepsi). And even a stronger case can be formed out of the tobacco and liqour industry, isn't it? They run with the sheer power of acquiring/converting consumers and keeping them loyal to the brand, which in turn increases sales dramatically. So offers and superficial factors doesn't really cut the ice here.
So yes, in the world of FMCG, your argument might hold good partially, but it cannot justify the rest of the consumer arena, where the majority of the brands are fuelled by a stabler fixed comsumer pool.