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BADM Final PPT 1

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Impact of Marketing Techniques
on Consumer Purchase Decision
(A case of Conatural)
Haya Siddiqi
Shiza Arif
Urooba Iqbal Kasbati
INTRODUCTION
 Marketing strategies play vital role in in influencing consumer purchase decision as proven by various studies. The
aim of this research paper is to assist Conatural adopt such marketing techniques which can influence the
consumer’s decision to buy organic skin care products in Karachi and help increase their sales.
 Organic products are thought to be better for the skin because they are chemical free.
 Conatural is among the few local brands which is manufacturing organic skin and hair care products in Pakistan,
designed for South Asian skin types.
 Its products are free from toxic elements such as triclosan, paraben unnatural fragrances, phthalates, silicones, and
petroleum jelly.
 Conatural distributes products online, in its own physical stores in Lahore's Emporium Mall and Packages Mall, and
through high-end retailers across Pakistan, as well as exporting.

It also offers private label services for personal care items, as well as co-branding with local merchants and export
clients.
 However, with the increased awareness and growing demand for organic products in Pakistani market, many small
local brand and homebased startups have entered this market with their herbal and organic products, that it
imposes a threat to the sales of already existing brands as well as on sales growth of Conatural.
PROBLEM STATEMENT
In 2019, Conatural had signed a contract with Khaadi and its
products were placed in 17 of its stores for 12 months. By the end of
June 2020, its revenue reached to Rs. 40,000,000. However, in
2021, many new local brands along with homebased startups with
relatively less prices have entered the market of organic personal
care products. Conatural is able to maintain a good position in
especially in Lahore in terms of generating revenue as of now but
despite selling its products online on its website, Daraz.pk, Panda
Mart as well as placing its products in stores like Neco’s, and Naheed
Supermarket in Karachi, its revenue has showed relatively a
downward trend in the most populated city of Pakistan. It is
observed from the financial statements of Conatural that it sales has
been declined by 4.43% in the current year and customers are
switching to other brands.
RESEARCH
OBJECTIVES
The objective of our research is to determine
those marketing techniques and strategies
which can help in influencing the purchase
decision of potential customer for Conatural and
strive for increasing the trend of revenue
specifically from its market of Karachi. In order
to achieve the objective, five marketing
techniques are taken into consideration namely
content marketing, user generated conent, price
promotion,
influencer
marketing
and
relationship marketing to check if these can
influence consumer purchase decision.
SIGNIFICANCE OF THE STUDY
This study will help Conantural aswell as other newly launched or already existing
organic skin care brands in understanding the purchase decision of its consumers
towards their products. By the help of this study, they can implement relevent
marketing stratetgies like price promotion, content marketing, user generated
content, relationship marketing and influencer marketing to attract more
customers towards their products and can create their significant visibility among
the competeting brands as well as in the minds of conumers. This study will also
help them understanding what is imporatant and what is not important for
consumers when they are buying the organic skin care products. They can mold
their strategies and products accordingly to cater the targetted customer needs.
LITERATURE
REVIEW
CONCEPTUAL
FRAMEWORK
Content Marketing
• involves the creation and sharing of online material
• to attract and maintain a clearly defined audience in order
to generate profit.
• increase social media engagement
LITERATURE
REVIEW
User Generated Content
• mixture of truth and opinion, impression, sentiments,
experiences, and even rumor
• consumers will trust the contents of a review if the source
has high credibility
• collecting and displaying UGC has been shown to increase
traffic
Relationship Marketing
• collaborative relationship between organizations and their
customers through communication and interaction.
• In fact, 5% increase in a company's customer attrition rate
can boost profits by 75 percent. (Alrubaiee & Al-Nazer,
2020)
Influencer Marketing
LITERATURE
REVIEW
• According to (Swant, 2016) online celebrities
with an high amount of followers who have an
influence on individuals
• influencers cooperate with businesses that are
relevant to their specific areas of skills
• 94 % of marketers who deployed influence
marketing initiatives felt them to be successful
Price Promotion
• another term for monetary sales promotions
• acts as an incentive for customers to buy the
product and when a bigger price discount is
offered, consumers perceive a higher level of
savings for a product (Lee & Chen-Yu, 2018)
• non-discounted items are also sold
Research Design
RESEARCH
METHODOLOGY
• Quantitative research
• Deductive approach
• Descriptive study
Sampling Technique
• Population – Women of Karachi
• Probability based simple
random sampling
• Sample size = 125
Statistical Technique
• Multiple regression analysis
• Correlation Technique
RESEARCH
METHODOLOGY
Instrument of Data Collection
• Closed-ended questionnaire
• Comprised of 20 questions
• Likert scale - made up of points
ranging from 1 to 5.
• 1. Strongly Disagree 2. Disagree
• 3. Neutral
• 4. Agree
5. Strongly Agree
RESULTS
RESULTS
Observation = 125
Summary Output
Correlation coefficient – Multiple R
• 0.69 – (0.6 to 0.8)
• Strong relationship between variables
Coefficient of determination – R square
• 0.48 < 1
• 48% variability in DV due to IV
Regression Statistics
Multiple R
0.69
R Square
0.48
Adjusted R Square
0.46
Standard Error
0.64
Observations
125.00
RESULTS
• Sig F < 0.05
• Model is fit
ANOVA
df
Regression
Residual
Total
5
SS
44.0
MS
8.8
119
124
48.2
92.2
0.4
F
21.7
Significance F
2.10401E-15
RESULTS
Significance value – P Value
• UGC, Price promotion and Influencer
marketing – less than 0.05
• Content marketing and Relationship
marketing – greater than 0.05
Coefficients
• UGC – 49% change in purchase
decision due to UGC
• Price promotion – 20% change in
purchase decision due to PM
• Influencer marketing – 15% change in
purchase decision due to IM
Coefficien Standar t
ts
d Error Stat
PLower Uppe Lower Upper
value 95% r 95% 95.0% 95.0%
Intercept
0.31
0.37 0.83
0.41 -0.42
1.04 -0.42
1.04
UGC
0.49
0.10 4.82
0.00
0.69
0.29
0.69
Content
Marketing
0.09
0.11 0.82
0.42 -0.13
0.32 -0.13
0.32
Price
Promotion
0.20
0.09 2.22
0.03
0.02
0.39
0.02
0.39
0.15
0.08 2.02
0.04
0.00
0.30
0.00
0.30
-0.05
0.10 0.49
0.62 -0.24
0.14 -0.24
0.14
Influencer
Marketing
Relationshi
p
Marketing
0.29
RESULTS
• Correlation
• Consumer purchase decision and user
generated content – 0.64 – strong
correlation
• Consumer purchase decision and price
promotion – 0.45 – strong correlation
• Consumer purchase decision and
influencer marketing – 0.5 – strong
correlation
CPD
UGC
CPD
1
UGC
0.64
CPD
CPD
PP
PP
1
0.45
CPD
CPD
IM
1
1
IM
1
0.50
1
RESULTS
Hypotheses Assessment Summary
Alternative Hypotheses
Coefficients
P value
Empirical
Conclusion
1:
H1: Content marketing has a positive impact on consumer
purchase decision.
0.09
0.42
Rejected
2:
H2: User generated content has a positive impact on consumer
purchase decision.
0.49
0.00
Accepted
3:
H3: Price Promotion has positive impact on consumer
purchase decision.
0.20
0.03
Accepted
4.
H4: Influencer marketing has positive impact on consumer
purchase decision.
0.15
0.04
Accepted
5.
H5: Relationship marketing has positive impact on consumer
purchase decision.
-0.05
0.62
Rejected
S.NO
Conclusion on the basis of Results
CONCLUSION
• Content marketing, UGC, Price promotion, influencer
marketing, and relationship marketing has direct
impact on sales.
• We conducted a small research on the basis of 125
respondents we found this by the results that UGC,
Price promotion and influencer marketing has
positive impact on consumer purchase decision.
• we reject null hypothesis in this case while content
marketing and relationship marketing has no positive
impact on purchase decision, so we accept null
hypothesis in this case.
User-generated content (UGC)
• User-generated content campaigns have been some
of the most effective marketing campaigns. From
betters engaging your audience to boosting your
brand image, UGC can have a far-reaching impact on
your business.
User-generated content (UGC)
• According to a ComScore study, brand engagement
increases 28% when consumers are exposed to a
mixture of branded and user-generated content. The
study also found that consumers ranked UGC higher
than professionally-produced content in emotional
intensity, relatability, key message communication and
importance.
Promotional Pricing
• This study contributes to our understanding of
how price sensitivity moderates the links
between
purchase
intention
and
its
antecedences.
• Price has demonstrated its significant impact on
consumers’ evaluation of product alternatives
and their final buying decision. This study
contributes to our understanding of how price
sensitivity moderates the links between
purchase intention and its antecedences.
Influencer Marketing
• The research carried out for the purpose of this
work was based on the Hypothesis: Does an
influencer marketing have a significant impact on
consumer´s behavior and making decisions on
purchasing.
• The aim of the hypothesis H4 was to confirm is there
a positive relationship between the influencer and
the perception of the consumer on the product, and
thereby the potential motivation of a consumer to
make a quick decision when purchasing. Namely,
according to the above mentioned results, it is
obvious that consumers significantly react on
influencer´s recommendations due to which the
hypothesis H4 can be confirmed.
Influencer Marketing
• To summarize the discussion our last variable “Influencer marketing” that have a positive
effect on purchase intention.. H4 was accepted, meaning that found a direct effect on
purchase intentions for influencer marketing. This result was expected, as previous
studies on influencer marketing suggested the same. However, by looking at the
consumer decision making process, as well as explicit and implicit attitude formation,
could explain the reasons why we had accept H4.
• Also, the fact that the respondents actively seek out the influencer themselves, that can
also shed the light on why the results similarity observed like the previous studies on the
effectiveness of influencer marketing. On the basis of our concluded results we find
lacking of connatural in terms of influencer marketing, they must do promotions on
social media too through influencers also advertise their product through celebrities.
User-generated content (UGC)
• ask their “Happiest customers for feedback
• post their own content tagging our brand
• design a portfolio of on-brand templates to drop in
this user-generated content.
RECOMMENDATION
Promotional pricing
• Encouraging cost conscious shoppers to buy
• Effective methods of increasing sales, boosting
customer satisfaction, and heightening brand
awareness
• Reward loyal customers
• Buy One Get One Free (BOGOF), Coupons, flash sales
Influencer Marketing
• increases brand awareness & Reach
• approach millions of potential consumers
• increase your brand awareness
Agree
Strongly Agree
Questionnaire
Neutral
Annexure
Disagree
(Agree) than it will be like this
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
Strongly
disagree
Please select your desired response: For example: If your response is 4
Purchase Decision
01
02
03
01
02
03
01
02
03
04
I buy organic skin care products more than non-organic products.
When buying organic skin care products, I make sure that it is free
from any non-skin friendly element.
I intend to buy organic skin care products if it is displayed on social
media rather than on other medium.
Content Marketing
I buy the organic skin care products if the information regarding the
ingredients in it is clearly stated.
I am more likely to be buying organic skin care products if the details
about it are shown via video or blogs on social media.
I am more likely to be purchasing organic skin care product if the
pictures and captions used by that brand are attractive.
User Generated Content (UGC)
I actively seek out reviews before making purchase decisions for
organic skin care products.
I am more likely to be buying skin care organic products if the brand
frequently shares its customers' reviews.
I prefer to watch video reviews of organic skin care products on
Facebook, Instagram, and YouTube before making purchase.
I am more likely to be buying organic skin care product if it is
Annexure
Questionnaire
Price Promotion
01
02
03
04
01
02
03
01
02
03
I am more likely to be buying organic skin care products during sale-season.
I give try to organic skin care products if the brand offers promotional
discounts for new customers.
I am more like to be buying organic skin care product bundles rather than
single product if price of that bundle is relatively less.
Deals and discounts positively influence my behaviour when buying organic
skin care products.
Influencer Marketing
I am more likely to be buying organic skin care products if it is recommended
by any influencer.
If any influencer shares positive words for an organic skin product, I am more
likely to be buying it,
If my favourite online personality recommends a brand, I am more likely to try
it.
Relationship Marketing
I like to purchase organic skin care products from that brand which have their
return and exchange policy.
I am more likely to be buying organic skin care products if the customer
representative is cooperative.
I am more likely to be purchasing from that brand which offers loyalty
rewards.
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
Strongly Agree
Agree
Neutral
Disagree
than it will be like this
Strongly
disagree
Please select your desired response: For example: If your response is 4 (Agree)
Disagree
Neutral
Agree
Strongly Agree
2
3
4
5
If any influencer shares positive words for an organic skin product, I am 1
more likely to be buying it,
2
3
4
5
If my favourite online personality recommends a brand, I am more 1
likely to try it.
2
3
4
5
I like to purchase organic skin care products from that brand which 1
have their return and exchange policy.
2
3
4
5
I am more likely to be buying organic skin care products if the customer 1
representative is cooperative.
2
3
4
5
I am more likely to be purchasing from that brand which offers loyalty 1
rewards.
2
3
4
5
(Agree) than it will be like this
Annexure
Questionnaire
Strongly disagree
I am more likely to be buying organic skin care products if it is 1
recommended by any influencer.
Please select your desired response: For example: If your response is 4
Influencer Marketing
01
02
03
Relationship Marketing
01
02
03
Age:
21 - 25
26 - 30
31 - 35
26 - 40
Above 40
Education:
Undergraduate
Graduate
Postgraduate
Monthly Income
Below 41,000
41,000 - 60,000
61,000 - 80,000
81,000 - 100,000
Above 100,000
THANK YOU
Presented BY:
Haya Siddiqi
Shiza Arif
Urooba Iqbal Kasbati
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