Experiential Marketing - Case Study of 2 Speciality Stores

Innovative Marketing, Volume 4, Issue 2, 2008

Rajesh Kumar Srivastava (India)

How experiential marketing can be used to build brands – a case study of two specialty stores
Abstract
Study was conducted basically on how experiential marketing (EM) can be useful in building a brand. The study also covered the impact of EM on repeat visit by customers; its acceptance based on gender & the reasons for repeat visits when compared to stores not using EM. Research was carried out at four specialty stores dealing in music and books in Mumbai, a financial capital of India. Of these, two were using EM. Questionnaire using one to one interview technique was used. Of 850 interviewed, 400 (EM) and 313 (NEM) were selected for study on two sets specialty stores, one set had experiential marketing in practice & other two were not using EM (NEM). Experiential marketing impact was studied on parameters like feel good, friendly people and ambience. The study confirms the hypothesis that experiential marketing can be used to build brand better. Word of mouth is equally important for EM and NEM stores. PR role is more important for EM than NEM stores. EM stores have 31% repeat customers compared to 1% with NEM stores. This is significant comparative study on EM and NEM usage. Customers are spending more time at these stores due to EM approach. Ambience of both stores played important role. Females visited less compared to male but repeat visit of females was on the higher side as they were more influenced by EM. Keywords: experiential marketing, brand building, customer experience.

Introduction1 Bernd H. Schmitt (1999, 2003) has coined the new term instead of traditional marketing called Experiential Marketing and provided a strategic framework for Experiential Marketing. Traditional marketing views consumers as rational decision makers who care about functional features and benefits. In contrast, experiential marketers view consumers as rational and emotional human beings

References: 1. 2. 3. 4. 5. 6. cialty stores. Study indicated that specialty stores have more opportunities to try experiential marketing (EM). The word of mouth (WOM) was equally important for EM stores and NEM stores. This was 32% and 38% respectively. Print media do bring people to these stores. PR is more important to EM stores compared to NEM stores. Conventional method like hand bill and location are other two important factors for NEM stores to pull the customers. In order of importance location for EM store was 5% compared to 37% for NEM stores. Repeat visit for customers for EM stores was 32% when compared to 1% of NEM stores. This proves our hypothesis that EM stores due to EM pratices generated more repeat visits. Repeat visits reasons were ambience, feel good, friendly people. Ambience could be due to facilities provided at these stores like table & chair to read, music headphone, cool environment. This was further enhanced by friendly people at these stores. EM implementation can be enhanced through the probable explanation given in RKS approach (exhibit II a&b). Female visiting again compared to male is less in store using EM. However, visit for females was 41% compared to 28%. This is significant. This could be due to right brain of female that is more active compared to left brain of male. EM touched the emotional cord of female more than male. Limitation and scope for further study The study was conducted only in Mumbai city. No doubt, Mumbai is the financial capital of India but it may not represent totally the entire population. Purchase value of the customers could not be ascertained due to confidentiality of data as per the store manager. Even experiential marketing practices differ from product to product, as we can see in case of Planet M and Cross Word stores. The experiential marketing practiced in Planet M cannot be used in Cross Word as the product in Planet M is music whereas Cross Word markets books. These are very different products. A further research will be useful if these data can be correlated with respect to culture and religion. It will be also interesting to study the impact of word of mouth on bringing in new customers to stores. Total customer experience using different parameters could throw still better insight. Bashford, Suzy (2004), The exposure effect, Marketing (UK), June, pp. 40-41. Ed. Letkus Jr. (2002), International Journal of Non profit & voluntary sector Marketing, Vol. 9, No.1, pp. 49-50. Gautier A. (2003), Think Again, Marketing Magazine, September. Joseph Pine and James Gilmore, (2003), The Experience Economy, Harvard Business Review, pp. 76-89. Marquis, M. and P. Filatrault (2002), Understanding Complaining Responses through Consumer Selfconsciousness disposition, Psychology & Marketing, 19 (3), pp. 267-92. Meyer Ann (2006), Are you experiential, Multi channel Merchant, Vol. 12, Issue 8, pp. 1-55. 75 Innovative Marketing, Volume 4, Issue 2, 2008 Pine II B.J., Gilmore J.H. (1999), The Experience economy, Harvard Business School Press, London. Schmitt B. (1999), Journal of Marketing Management, pp. 15-53. Schmitt B. (2003), And now, experiential marketing, Business Standard, July 8. Shukla T. (2007), Experiential Marketing. The new paradigm, Indian Journal of Marketing, April, pp. 10-12. Srivastava R.K. (2006), How UCP pulls the customer to increase the sales?, Product Management & New Product development, Excel Books, New Delhi 209-233. 12. Witthaus M. (2004), Does practice make perfect, Precision marketing, Vol. 17 (6), pp. 19-20. 13. Yu Y.T. & A. Dean (2001), The contribution of emotional satisfaction to consumer loyalty, The International Journal Service Industry Management, 12 (3-4), pp. 234-40. 7. 8. 9. 10. 11. 76