Measuring Consumer Preferences for Sales Promotion Schemes through Conjoint Design in FMCG Sector

Vyas Preeta H

No WP2005-09-08, IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: Fast moving consumer goods in India is characterized by intense competition leading to brand proliferation in various categories. Using consumer sales promotion to differentiate ones offer has been a common practice in matured urban markets. More and more budget is allocated to these activities in order to lure the consumers. In such a scenario, it is very essential to study how consumers make their choices in FMCG category where there are several brands in the consideration set of a consumer. The financial risk being low consumers do not mind switching from one brand to another due to sales promotion offer. Hence it would be of interest to a marketer to learn about consumer preferences with respect to sales promotion offers; what schemes do consumers prefer for what kind of brands, which media they prefer to learn about the schemes, whether they prefer incentive immediately or at a later date. It was found that deal proneness prevailed across different demographic segments. Price cut nature of promotions was found to be preferred. Out of the nine concepts presented to the respondents; they preferred a price cut nature of promotion on a national brand with an immediate incentive and awareness created at point of purchase. The study would provide insights to a brand manager in designing a scheme.

Date: 2005-09-08
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