Impact on consumer behaviour and brand strategies post FMCG product controversies.

Abstract

The project is aimed at understanding consumer behavior and brand loyalty changes post an FMCG brand controversy. Multiple brands have faced moments of severe crisis where a product of the brand faces itself being slapped with controversial allegations. But, more often than not, most of the FMCG product brands emerge successful from these situations. This can be attributed to the fact that all the organizations that see themselves in this situation, apply certain strategies that are designed to change the consumer perceptions and make them feel positively towards the brand. The research was started by analyzing four major scandals of FMCG products that we have seen and thoroughly understanding the literature associated with them. In addition, the timeline of events was determined, and the various strategies applied by the firms were deeply analyzed. This helped draw out stark patterns of consumer behavioral responses for each of the applied strategies. In addition, there were an array of actions that firms resorted to, de facto. These situations were collated for further research. Also, the various pieces of literature surrounding the study of crisis management by firms were studied as part of this research. Furthermore, consumer behavioral patterns were also researched to stop correlative patterns. An expert interview was conducted with an official from a leading FMCG firm whose product has been part of the type of controversies being studied and it was found that the brand ethos and consumer connect is crucial in this time. The learnings from this process and the data points obtained from the research stated above were used to design a questionnaire. This survey was used to identify key data points of FMCG consumers such as brand loyalty, purchase patterns and consumer education preferences. Then the respondents set were given 6 hypothetical strategies after an alleged brand controversy over an FMCG product they use. The consumers were classified basis of their loyalty and their post-controversial attitudes in response to each applied strategy were analyzed. This was then combined with the purchase patterns, education preferences and brand loyalty to design suitable frameworks for brands to apply to their strategies and thus derive the required customer behavior. Loyal customers will remain loyal to the brand as long as the brand showcases openness and concern for customers. The others will refrain from switching as long the same is followed. Based on the stage of the controversy, brands can apply the designed framework to ensure that their strategies are in sync with the customer's emotions at that point.