Sense of luxury can sway consumer

Nielsen had recently analysed the FMCG industry across 39,000 brands, in existence well before 2011. It classified these as 'stand outs' based on whether they sustained market share beyond the category average at an all-India level (1 per cent). Less than 10 per cent of them continued to beat the market (How do brands continue to stand out). The study also revealed that out of 8.4 million stores, just 2.3 million contribute to 80 per cent of the market.

Sixty per cent of purchases were influenced at the store, underlining the need for visibility and availability. The perception of luxury alone can lead to an uplift in sales. Offering something extra in the form of additional merchandise or discounts can create a sense of luxury and sway sales 5-20 per cent of the time. But Nitya Bhalla, executive director, advanced analytics, warns that the brand should not be seen as a discount brand year-around.

SKU rationalisation becomes crucial in the downturn, because companies can mistakenly discontinue those which may grow slowly but offer a sense of wide range to the consumer. The brand should look at the lowest contributor to incremental gains instead (Does my product resonate). (Click here for charts)

The RoI of media vehicles shows that a rupee spent online gives Rs 1.23 vs 60 paise on TV. But Bhalla says TV's reach is still large. Though, spends are on the rise: Till last year it was less than 10 per cent of total spendsof alrge FMCG brands and now it has reached 30 per cent for some of the companies. (Uplift for every rupee)

Brands should pursue the desired audience. A pilot campaign targeted at girls proved that while the total impressions on the matrimony site was higher, the desired audience was less and comparable to the job site. (Campaign reach the desired audience).