First Moment of Truth (FMOT)

First Moment of Truth (FMOT)

First Moment of Truth (FMOT)

This term was coined by P&G in 2005. FMOT refers to the 3 to 5 seconds when a shopper notices an item in a retail environment (invariably due to the packaging interrupting the shoppers’ attention to prompt brand recognition) and makes a decision as to whether or not they purchase the item. The model comprises of three points of contact that are key to maintaining that brand or product preference in that moment.

The first contact point is a stimulus such as a TV commercial; a mention on a radio station; a magazine Lift-Out; Youtube video; an email; a banner ad etc. The second contact point involves the consumer visiting the store or searching the web to locate the product or service The third contact point is the moment the consumer locates the product either in the store or online. Regardless of whether there is only one brand or a range of brands, the consumer faces the First Moment of Truth.

The buying decision that they make will be influenced by their in-store or online experience.

According to Lecinski, consumers spend seven seconds in front of the shelf before they decide which brand to buy. It’s really important to gain the consumer’s attention at this critical moment.

Once the consumer makes their choice and buys the selected product, that person will go home to start using it. That moment of experience is called the Second Moment of Truth (SMOT), and it will determine the consumer’s brand perception and future buying decisions.

A good usage experience will most likely result in the consumer choosing the same brand when it comes time to upgrade and speak favourably of the product or service in conversation or online reviews. Source: Digital metrics playbook. Measuring your online branding strategies by Enrique Quevedo; Daniel Besquin and Michelle Read

Moments of Truth

“We have 50,000 moments of truth every day.” — Jan Carlzo, CEO SAS (Scandinavian Airlines System) Group from 1981-1994 referring to every time an SAS employee came into contact with a customer.
In consumer markets, the First Moment of Truth (FMOT) is often described as the shopper’s first encounter with the brand in-store.

There are many moments that lead to this moment — these are the times the consumer initially gets to know the brand. It encompasses the moments she sees the brand on TV, or online, or some other medium; or when she hears about it from a friend. These moments convey the product concept to her, and craft her first impression. They generate appeal or the desire to experience the product, and determine whether or not she will try it.

The encounter in-store, the moment of truth, is the culmination of these moments; it is where the brand has to close the sale (Exhibit 11.0). Will she pick the brand up and place it in her cart?

A good indicator of a brand’s performance at its first moment of truth is the trial rate. Drawn from consumer panel data, the build-up of trial for the two brands labelled ‘A’ and ‘B’, in Exhibit 11.1, appears to be fairly strong.
Incidentally, Google coined the term zero moment of truth (ZMOT) to refer to the moments before the first, when the consumer searches for products that may or may not exist. By tracking their online behaviour, marketers are able to gauge what consumers are seeking.

This is particularly useful information for spotting market trends and gaps, and for generating ideas and insights for new products.

The second moment of truth (SMOT) occurs when the consumer uses the product. Product experiences shape her views about the brand, and determine whether she will continue to use it; whether she will adopt it. This collection of moments offer the opportunity to build and strengthen a relationship with the consumer; to delight her and to keep her engaged.
The repeat buying rate (RBR), which is defined later in the TRB Share Prediction model, captures the essence of SMOT.

Derived from consumer panel data, it is an indicator of the propensity of trialists to continue buying the brand, and is measured in the context of their total purchases of the category.

Exhibits 11.2   % of consumers who repeat bought brands ‘A’ and ‘B’.

The repeat buyers %, depicted in Exhibit 11.2, is also an indicator of the success of a brand at the SMOT. It measures the proportion of trialists who repeat purchase.
Consumer goods companies devote considerable time, resource and attention to appeal to the hearts and minds of consumers so that they may powerfully influence them when they seek to find the product (ZMOT), when they initially encounter it (FMOT), and when they actually experience it (SMOT).
For business marketing firms, it is the touchpoints with their customers that represent their moments of truth. Whether it is the customer’s interaction with the firm’s product or service, or with the employees of the firm, the experiences offer opportunities to build the firm’s brand equity.

Tata water plus will it be a game changer?

Tata water plus may crate a new benchmark in indias multi billion dollar packaged drinking water business.

Well I tried this new product because its available everywhere

I tried it because when everyone is going blue here comes a bottle with copper colour label and cap.

I tried,without an iota of doubt because it’s comes from Indias most trusted conglomerate the Tata group.

I tasted it, it’s different,it tasted like it’s raw water from a well. Yet I trust this brand because it’s mentioned in the packaging that it has got goodness of copper. So I belive i am drinking something more pure than other industry leaders in packaged drinking water industry like bisleri, kinley from Coca-Cola and aquafina from PepsiCo

There are chances that consumers may dislike this new taste however If this experiment from tata succeed, then,the competition will follow the same and come up with their own version of copper water. Drinking water in pet bottles tend to taste different after 60 days and I believe Tatas would have tested for any difference in water taste after 60 days. If not the competition will check and find it for them and if there is any difference then the competitors will pump in enough money to their PR agencies to ensure that this is exposed to the consumers.

Let’s wait and watch.

Hisham Kabir

Maggi going Desi, to catch up with Indian ready to eat breakfast meal.

They say it’s all about localisation others may argue it’s survival instincts, for McDonald’s they had to introduce the Mcaloo tikki burger in India to cater to a large veg eating population.

For nestle India Maggi magic Indian masala cubes is a big hit, so they did not want to wait for long to introduce maggi Indian breakfast on a cup.

Maggi has now introduced 2 new popular Indian breakfast meal which includes upma and poha.

For most of us maggi is noodles and this association very strong, the debate remains as to should nestle India launched it under the brand maggi remains to be seen and how consumers react to it, or did brand managers at Nestle India made a mistake only time will tell.

Few of other brands in this category, are MTR, Tiffin to Go.

Hisham Kabir.

If You Enjoyed Thinking, Fast and Slow, You Would Love These Books

To live is to learn, and to read is to learn fast from the experience of great minds. Reading is my favourite way to develop my brain and learn more of what others have already figured out. It’s the…
— Read on medium.com/kaizen-habits/if-you-enjoyed-thinking-fast-and-slow-you-would-love-these-books-cfa285aaaba9

FMCG India Retail in Tamil Nadu.

Rural India contributes 36% to overall FMCG spends and has historically been growing 3-5% The overall FMCG market clocked a value growth of 7.3% in Q3 of 2019 compared with a 16.2% growth in Q3 of 2018. points faster than urban.

Key factors on rural marketing in Tamilnadu.

These are national brands like ITC, HLL, Britannia, Marico, gsk and Similar….

Then there are state specific players like Cavin care,cholayil group, Lion dates, Rajah, Anil, Aachi, Shakti masala,Manna, A2B, ELITE, NAGA among the long list.

Then there are area specific players like Durga in salem and erode region in Tamil Nadu who has a premium quality, premium pricing and demand is so much so that you need to book one week before by paying full cash advance.

Their price is atleast 15% higher than the national players like ITC and Unilever.

Rajah aata, from Kajah FMCG

Rajah Aata and semiya is a prominent player

Anil semiya had introduced several health options and millets based foods

Durga semiya caters to a very small market yet they charge a premium and consumers willing to pay

Then There are local players and bulk suppliers. What is otherwise called loose sales. Or unorganised retail.

Other key factors in rural FMCG retail.

“Power of local connect-The people in that area may know the owner or they may have a nostalgic connection with the brand.

Some Companies might not have changed their formula or taste for several years and is still Continuing for eg rkg and kalimark and maybe dashprakash or Dinshaw ice cream.

This 84 year ghee brand has been dominating the ghee market in Tamil Nadu and Kerala let's not forget this is a flavoured ghee not cow ghee.

RKG is a prominent player in South Indian ghee market despite being a flavoured ghee and not cow ghee.

RKG ghee most popular ghee in South, since 1934, it’s a flavoured ghee not cow ghee.Other popular ghee brands in Tamil Nadu are
Bovonto

A classical case is that of bovinto from kalimark that have made even multi national like coco cola beverages to introduce their version of a product that is directly competing with bovinto from kalimark and interestingly coco cola named it “colour” highly debatable name for a soft drink as colour is not a good word as far as food is concerned, yet coco cola decided to go ahead with name colour because that is a local slang which consumers of bovinto use to ask for the product “oru colour kotungal” which means get a bottle of colour.

Besides the key factors mentioned above there are few key pointers are

Service.

Since there are so many brands that have come and gone so there is always doubts in the mind of shopkeepers if they would get service from such companies as2 always.

So they keep a track on how often the company visit the market and if they are convinced that this company visit every week then the shopkeepers confidence increase and along with this if companies come up with attractive scheme they will definitely take your product.

Service also includes taking back unsold stock replacing it with new and movable stock and a mentality of excellent after sales support is very important for regional players which most national and multinational companies does not offer.

Distributor tactics

Another important observation is that a whole sales distributor split the SKU of same company and send different sales guys on different days selling the same category of product. For example a biscuit distributor of Britannia biscuit send one sales guy for tiger biscuits and send another sales guy for milk bikis this is done so that the shopkeepers has different person to deal with and different dates for payments and not all is spend on the same agency.

Vehicle branding is another key marketing visibility to the company if the shopkeepers observe your vehicle with your products displayed is moving through that route more often then they will stop your vehicle and ask for your products so even if you run an empty vehicle with your brand and product logo displayed then you can create brand recall and product enquiry.

Report by

Hisham Kabir

ifcc@outlook.com

Celebrity endorsements works in regional markets, plus vehicle branding is a great brand visibility

New way to enjoy 3 roses tea.

We just need to understand that unilever is listening to the new young consumer needs and making products that suit them.

This is one such result of an extensive market research that’s concluded that the consumer would love to make tea but using a strainer and then cleaning the tumbler in which tea is made takes more time to clean so here comes this new product that’s not a tea bag but a same product with different principle.

You get a excellent tea just like what is made in the traditional way, yet you need not use a strainer and the tea leaves do not get stuck to the vessel that tea is made thereby making tea more easier and enjoyable process. Retaining the same great taste.

3 roses tea buds
Influence marketing consumer behaviour marketing

3 roses new product an excellent tea in minutes

Unilever new product 3roses is listening to its customers.

New product development unilever India
3 rose tea brand listening to urban consumer demand studying buying behaviour India

3 rose tea brand listening to urban consumer demand studying buying behaviour India

Unilever new product development is the 3 roses tea buds.

Dev Snacks a Kerala based traditional snacks company, ruling south India.

Hisham founder at brand buyology speaks on dev snacks
dev snacks kerala based company ruling south india.

Can you imagine an indian company going to italy and selling the best Italian pizza in Italy. Well that’s exactly what dev snacks a kollam based snack food manufacturing company have done in South Indian market.

Become a market leader in several areas of kerala tamilnadu and karnataka including bangalore at a place where local and unorganized players rule the roots.

On discussion with a local retailer it was understood that they have

100%GST billing.

Give sufficient credit ie bill to bill credit system.

Weekly service and

Excellent return policy, if unsold or if not moving they replace it with other fast moving items remove products 5days before expiry.

Such policies is what makes small companies big.

Hisham

Good Knight mosquito repellent Indian consumer behaviour.

Good Knight have introduced the all new gold flash mosquito repellent which emit visible smoke every 4 hours and I feel this is an outcome of deep understanding of Indian consumer behaviour psychology who come from mosquito coil memory and despite being well educated they do feel mosquito coil is more effective in eliminating mosquitos.

Good Knight and Indian Consumer Psychology
Good Knight gold flash Indian consumer behaviour Hisham Kabir

Dabur Coconut oil got it spot on.

I felt this is a classic case of hitting the competitor bang in the middle.

Took the market leader and competitor added your companies strength and added a price advantage and then shouted it out loud.

Plus it’s an edible oil. What more should the buyers ask for.

brands, why we buy it, Influence marketing, behavioral economics, neuromarketing

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