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The Purchasing Habits And Brand Loyalty In Tobacco Marketing Essay

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Published: Mon, 5 Dec 2016

The Purpose of the research is to find out how below the line advertisement effects the brand awareness of tobacco consumers in Pakistan and how the brand awareness change the consumers purchasing habits and make consumers more loyal to the brand. In Pakistan the consumers of tobacco have different views about brands due to its taste and class. The main purpose is to find out that how the marketing strategy of below the line advertisement in tobacco industry makes consumers aware of brand and does that awareness change the consumers purchasing habits and make them brand loyal.

Background:

In Pakistan the tobacco industry is growing rapidly from its independence. In this era the smoking has become a fashion for Men as well as women. 56% of men and the 20% of women are the regular smokers. In year 2001 all the forms of advertisements of tobacco in Pakistan was banned by the Government since then the major channel for advertisement is below the line advertisement.

The two major transitional tobacco industries in Pakistan is BAT (British American Tobacco) and the PMI (Philip Mores International) in 1947 the BAT established the PTC (Pakistan Tobacco Company) later in August 1967 the PMI entered in Pakistani market. Both BAT and PMI have major brand of cigarettes that are sold in Pakistan. In 1991 the PTC had six brands selling through 4 different price segments Premium: John Player Gold Leaf (JPGL)-High Price: Dunhill-Mid Price: Gold Flake, Wills King-Economy: Embassy. In 1996 the imported Benson & Hedges (B&H) was launched in Pakistani market. Morven Gold is the most selling brand in Pakistan it was positioned in medium price category but now has become a high profit brand of PMI. PTC faced losses in profit because other brands were price leaders in 1992.

The marketing promotion activities were banned in 2001 due to which tobacco companies start below the line advertisement. In this research we will find how below the line make consumers aware about the brand and how does brand awareness changes the purchasing habits of tobacco consumers and make the brand loyal.

Introduction:

As earlier mention the purpose of the research is to find out how below the line marketing effects consumer awareness and its impact on purchasing habits and brand loyalty. Because of the smoking injurious effects the Government of Pakistan banned all the communication channels and promotion activities of tobacco industry right now the tobacco industry has no channel of communication to consumers except below the line advertisement. In this research we will find whether below the line advertisement increase the brand awareness and with this awareness is there any change in purchasing habit of cigarettes brand and consumer loyalty towards brands.

Below the line advertisement refers to form of non-media communication without the billboard, TV ads, Print media or Internet. In BTL (Below the Line Advertisement) the more a consumer “experiences” the brand by seeing it, hearing it, or thinking about it, the more likely he/she is to strongly register the brand in memory. Anything that causes consumers to experience a brand name, symbol, logo, character, packaging or slogan- including advertising and promotion, sponsorship and event marketing, publicity and public relations, and outdoor advertising- can increase familiarity and brand awareness of that brand element. The attributes of BTL are direct mail marketing, Door to door marketing, Exterior location marketing, Email marketing, social media marketing, Point of sale marketing, Brand ambassadress, Activities (Location & Time), IMC (integrated marketing communication) .

Brand awareness means how much consumers are aware about the availability and existence of your brand in market. Brand awareness is a key step for promoting a product. Through brand awareness consumers can differentiates the products from its competitors if consumers are more brand aware this can increase the sales. Brand awareness can effect through different factors like Brand name, Advertising, Celebrity, Parent company, Sales promotions, Direct Selling, Public relationship.

Purchasing habits of consumers means the typical manners in which consumer purchase product in terms of frequency, timings, outlet type etc. Purchasing habits are also termed as “buying habits” & “buying patterns”. Availability of the product its quality, packaging and smell can change the consumer purchasing habits. There are other factors which can change purchasing habits such as Economic condition, Environment, Personal Factors, Social factors, Psychological Factors, Cultural factors.

Brand loyal means when consumers become committed to your brand and make repeat purchases over time. When consumers preferred some specific brand and purchase it again and again and talk positive about your brand to others which also create a good word of mouth and these loyal consumers can increase your sales because they are also promoting your brand. Repurchasing is different from brand loyalty. In repurchasing consumers are may be just purchasing because there is no other alternative or situational factors but the brand loyal consumers have a high relative attitude toward the brand. They don’t care about paying high price and also bring more customers to the brand through word of mouth. When someone finds a brand which is perfectly fits to his/her personality it make him/her brand loyal and the others factors such as quality, taste, status co etc.

Now coming to the industry that we have chosen is tobacco industry. Tobacco industry is growing very fast in Pakistan. There are so many tobacco brands in Pakistan which has given the consumer ability to easily brand. In Pakistan the tobacco industry is too vast so our research will be focused on Pakistan Tobacco Company (PTC) specific brand John Player Gold Leaf (JPGL). Pakistan Tobacco Company is leading tobacco company which has the most selling brands John Player Gold Leaf has become an institution in itself, becoming one of the most recognizable cigarette brands in the country. John Player Gold Leaf has recently been declared the largest Urban Brand in Pakistan, beating out products across the F.M.C.G. spectrum.

This research will help Pakistan Tobacco Company by providing the inside of BTL and how they can improve their BTL activities to create more brand awareness. The findings of the research will help company to better understand how the brand awareness impact can increase their sales and make their consumers more loyal.


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