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