New brands are benefiting from increased TV ads, as consumers pick the products. Photo/File
What you need to know:
Advertising spend last year rose to Sh40 billion. Companies are spending millions on aggressive TV ads to entice consumers.
Andrew Mbugua, 30, grew up with one washing detergent being used at home and when he moved to his own place he continued with it.
However, one evening while watching prime time TV he saw another detergent being advertised. His curiosity was struck and he decided to pick the detergent next time he went shopping.
“I don’t know why but I just wanted to try it out,” says Andrew. For a couple of months now, he has held on to the new brand. He is one of the many Kenyans who are switching their brand loyalty due to increased ad spend by companies.
The investments by these companies, mainly creating awareness on their products whether new or not, are seeing people more curious and buying into the hype.
Aggressive television advertising has emerged to be a big and rewarding firearm for manufacturers staging war against rivals and new entrants. The companies are spending millions of shilling to retain loyal consumers and also gain new ones.
A research conducted last year by research firm Ipsos Synovate, revealed the result of the bruising battle between manufacturers by casting light on the amount of money each spent on promotion.
According to the report advertising spend in 2012 stood at Sh40 billion up from Sh28 billion the previous year.
The rise was attributed to large manufactures increasing their expenditure. Reckitt Benckiser, Unilever and Coca-Cola are some of the companies that adjusted their advertising budget upwards.
The three firms accounted for 53.3 per cent of the Sh7.7 billion gross ad spend in the first half of 2012.
A report by Consumer Insight- Reja, conducted in 2012, upstart brands displaced established brands in the market as a result of heavy advertising.
“The new entrants have clearly demonstrated how targeted advertising resonates and wins market-share. Even in the competitive dairy category, dominated as it were by Brookside brands, Molo milk seems to be enjoying an ad-supported surge in market share,” read the Reja consumer survey.
Market share
Benefiting hugely from advertising was new brands like Soko Maize meal with a leading market share of 24 per cent followed by Jogoo. The study attributes this to unanswered advertising from rivals.
Competitors opted to keep their silence throughout rivals’ campaign perhaps banking on brands they created over time.
But are consumers really responding to television advertisement?
Besides advertising, there exist a number of factors that get consumers to either switch or retain brands. One of them is appeal.
Antony Moseti, a communications student at a university in Nairobi, for instance confesses to picking products that connect with him and appeals to his taste.
The Consumer Insight- Reja survey acknowledged in-store advertising activities as more influential than TV adverts.
“TV, the leading traditional media channel, boasted 37 per cent share in creating awareness. But it was in-store advertising activities that created most brand awareness accounting for a joint 49 per cent.
"This means, in the emerging shopping landscape, in-store channels are equal or even more influential than TV,” says the study.
The impressive product display on supermarket shelves is among the fine points customers are basing their judgment on. Manufactures have identified this and have gone an extra mile to place uniformed merchandising ladies to push you in to picking the product.
Bargain shopper
However, as much as consumers look out for products that flatter their personality, among them are the reserved types who are loyal to brands.
Then there is another group of consumers keen save up on their monthly budget. These are the adventurous type, courageous enough to pick a new product as long as it guarantees bargain.
However, they too go for brands they easily relate two. For instance, products made by rivals. These way consumers are always certain on the quality of the purchase, with the only decision being to choose one which is affordable.
Nevertheless, product advertising is good for customers; it keeps them informed on new products and best deals, tells you about the difference in quality of the products and available options.
So next time an ad runs just tune and watch. Who knows you might be in for a treat.
