We all shop. What we buy the most is from the FMCG segment. The regular grocery every month. While buying say a soap, we know if its a Dove or Pears. But do we know which one is from Hindustan Unilever Ltd (HUL) and which one is from Procter & Gamble. I agree that there should be brand loyalty, but do the FMCG companies really work on building customer loyalty towards the umbrella brand? Do we really know care if Close-Up is a part of HUL or not?
The concept I'm talking about is to increase awareness about the Umbrella Brand and build loyalty towards the same. Take a regular buying scenario. HUL, say issues a loyalty card where you can earn points for every product you buy which belongs to HUL. Let's say you earn 1 point for every Rs. 100/- of purchase.The differentiating factor here is you can convert these points into shares in the stock market. One share of HUL today is worth Rs. 252/-. You have to shop for Rs. 25200 to be eligible to buy one share. For a family of 4, this amount can be achieved in 5 months of shopping(taking the average basket size to be Rs. 5k). The benefits of starting such an activity are many:
The concept I'm talking about is to increase awareness about the Umbrella Brand and build loyalty towards the same. Take a regular buying scenario. HUL, say issues a loyalty card where you can earn points for every product you buy which belongs to HUL. Let's say you earn 1 point for every Rs. 100/- of purchase.The differentiating factor here is you can convert these points into shares in the stock market. One share of HUL today is worth Rs. 252/-. You have to shop for Rs. 25200 to be eligible to buy one share. For a family of 4, this amount can be achieved in 5 months of shopping(taking the average basket size to be Rs. 5k). The benefits of starting such an activity are many:
- The shares purchased without really spending anything on the share price will soon start fetching gains for the consumers.
- The customer would start taking note of whether the product belongs to the umbrella brand or not.
- The number of people purchasing from the secondary share market starts increasing.
- Layman starts tracking the performance of his shares in the share market.
- This would open up infinite opportunities to market products differently in an industry which is fragmented by ads.
- Customers when made owners would start tracking the performance of the company and would wish well and contribute to its growth in their own ways.
The main challenge here would be to educate all the retail outlets across the country on the loyalty programme and tracking the loyalty points but I'm sure with IT being what it is today, this would be a cake walk for the MNCs. Any FMCG giant reading this?

