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Schemes, celebrities draw Indian buyers

Schemes, celebrities draw Indian buyers

Indians will shop where they see a chance to win great gifts or a date with their favourite celebrity, says one survey.

New Delhi: Majority of Indians may actually be shopping not because of the particular product, but because buying offered them a chance to win great gifts or a date with their favourite celebrity, a survey has found.

Around 87 per cent of Indians participated in some form of promotion, out of which 53 per cent won prizes, while around 40 per cent even changed their buying behaviour in accordance with the celebrity endorsement, a Promo Survey 2006 conducted by Brand Equity, has revealed.

About 45 per cent of people were found to have taken part in promotions that were carried out in malls, multiplexes, out of which a majority had participated in promotions of mobile phones, it said.

The survey-covering over 2,100 consumers and over 800 retailers in 10 cities across India-sought to find out the reason for the demand of particular brands, analysing buying behaviour, reasons that drive brand loyalty, preferences for promotion tools, participation mode and prizes.

The survey pointed out that about 57 per cent of Indians were 'loyal' to some brand and most of them gave priority to the price or budget before trying a brand.

With the increasing number of brands in the market, companies are fast realising the importance of creating brand awareness for their success.

In an effort to reach their target audience, companies often conduct several campaigns across different product categories, which become an integral part of the company's marketing plan.

While a new campaign idea attracted a consumer towards a promo, winning the top prize was the most attractive to the masses and innovative promotion with a striking name and adequate ATL support registered top-of-mind recall on the people, the survey said.

Though, television, radio commercials and brand endorsers played a vital role, on-ground promotions such as roadside and bus-stop hoardings, point of sale materials and direct contact with customers were as important as creating awareness about a campaign.

According to the survey, people preferred to receive prizes where they were not required to put in any extra effort and the the prize could be got instantly at the point-of-purchase.

Also, while majority of respondents had shown an inclination to participate using SMS and e-mail, contests still continued to rule the roost.

Sales Promotion Campaigns were a good way to incite trial for a new product among customers, the survey said, adding around 53 per cent of the consumers agreed that their purchase decision was actually influenced by various promotions.

About 43 per cent consumers asked for a pre-determined brand and in about 39 per cent of the cases, a rumour about a brand resulted in a drop in its sales, it said.

Also, modern format retail stores were mainly preferred by the respondents for offering a one-stop-shop experience and a wide product range.

Around 56 per cent of general retailers and 40 per cent of modern trade outlets felt an increase in their sales and felt they were responsible for the 'success' of the campaign because in at least 41 per cent of the cases, customers took their opinion before participating in a promotion campaign.

first published:October 08, 2006, 16:11 IST