Abstract:

Globally manufacturers are using price promotions to increase sales and ultimately brand loyalty, but this trend has not been seen in Pakistani shampoo industry, which spends heavily on marketing, in the form of advertisements and sponsorships. Internationally in frequently purchased product categories more than 50 percent of total sales volume is sold on promotions. Marketers use various techniques to enhance the attractiveness of their offering for example adding a unique product feature or more recent trend is of using price promotions. This paper investigates how price promotions can work in Pakistani market. The findings suggested that price promotions can increase brand loyalty and hence should be used by the marketers. When asked directly price is not very important but the results suggested that price promotions can attract non loyal users, which can be converted into repeat purchasers overtime and hence brand loyalty can be increased.