THE IMPACT OF
NEUROMARKETING ON
CONSUMER BEHAVIOR
AND SALES IN THE FMCG
SECTOR IN INDIA
SUBMITTED BY :-
Surbhi Kumari
BCom(H)
1022058
NEUROMARKETING
DEFINITION
Ale Smidts defined it as "Neuromarketing is the study of the
brain’s responses to advertising, branding, and marketing
messages by using neuroscience technologies such as
functional Magnetic Resonance Imaging (fMRI)."
Neuromarketing combines neuroscience, psychology, and
marketing to study how consumers' brains respond to marketing
stimuli. Using technologies like fMRI, EEG, eye tracking, and
biometrics, it explores the neural mechanisms behind consumer
behavior and decision-making. This helps marketers design
strategies that resonate deeply with consumers' subconscious
reactions to ads, products, and brands.
IMPORTANCE OF NEUROMARKETING IN FMCG SECTOR
01 02 03 04 05
Enhanced Efficient
Understanding Optimized Improved Increased Sales Allocation of
of Consumer Advertising Product Design and Market Marketing
Behavior Campaigns: and Packaging: Share: Resources:
Neuromarketing provides By analyzing brain Insights from By aligning marketing Neuromarketing enables
insights into the responses to neuromarketing can strategies with the more precise targeting
subconscious advertisements, brands guide the design and subconscious of marketing efforts,
motivations and emotions can create more packaging of products preferences of ensuring resources are
driving consumer engaging and effective to enhance their appeal consumers, FMCG spent on strategies that
choices, helping campaigns that capture and increase their companies can boost are most likely to yield
companies understand attention and elicit likelihood of being sales and gain a positive results.
why consumers prefer
desired emotional purchased. competitive edge in the
certain products over
responses. market.
others.
Brain Imaging Brain Imaging Eye Tracking
Techniques Techniques (EEG)
Monitors where and how long a
(fMRI)
Records electrical activity in person looks at different
fMRI (Functional Magnetic the brain through sensors elements of a visual display
Resonance Imaging): Measures placed on the scalp. EEG is (e.g., advertisements, product
brain activity by detecting useful for tracking brain packaging). Eye tracking helps
changes in blood flow, responses over time, offering determine which aspects
providing detailed images of insights into how consumers capture attention, how visual
brain regions activated in process and react to marketing information is processed, and
response to marketing stimuli. messages in real-time. which elements are most
It helps identify which areas of engaging or distracting.
the brain are involved in
decision-making and emotional
responses to ads.
Biometrics
Facial Coding
Involves measuring physiological
Analyzes facial expressions to infer
responses, such as heart rate, skin
emotional reactions to marketing stimuli.
conductance, and respiration. Biometrics
Using algorithms to detect micro-
can indicate levels of arousal, stress, or
expressions, facial coding provides
excitement in response to marketing
insights into consumers' emotional states,
stimuli, providing a deeper understanding
such as happiness, surprise, or frustration,
of how consumers physically and
as they interact with advertisements or
emotionally react to different marketing
products.
efforts.
EXAMPLE Coca-Cola's "Share a Coke" Campaign
IN Objective: Increase consumer engagement and
sales by personalizing the product.
FMCG
Approach: Coca-Cola replaced its iconic logo
SECTOR with popular names on bottles and cans,
encouraging consumers to find and share a
Coke with friends and family.
Neuromarketing Insights: The campaign leveraged the
emotional connection consumers have with their names
and the joy of sharing, which was validated by high levels
of positive emotional engagement and social sharing.
Results: The campaign led to a significant increase in sales
and social media engagement, reinforcing the
effectiveness of personalized marketing in driving
consumer behavior.
EXAMPLE PepsiCo's Eye-Tracking for Frito-Lay Packaging
IN Objective: Enhance packaging design to boost
sales.
FMCG
Approach: PepsiCo used eye-tracking
SECTOR technology to study how consumers viewed
Frito-Lay chip bags, focusing on design
elements that captured attention.
Neuromarketing Insights: The study revealed that matte
bags with images of potatoes and natural colors were more
appealing and held consumer attention longer than glossy,
cluttered designs.
Results: Redesigning the packaging based on these
insights led to a noticeable increase in sales,
demonstrating the impact of visual appeal on consumer
choice.
Nestlé's Challenges: Interpreting the complex
Neuromarketing data from neuromarketing tools proved
Efforts challenging. Additionally, translating
these insights into actionable strategies
Objective: Understand consumer that resonated across diverse markets
was difficult.
preferences for new product
development. Outcome: The neuromarketing studies
provided valuable insights into consumer
Approach: Nestlé used EEG and preferences, helping Nestlé tailor its
facial coding to gauge consumer product offerings to better meet market
demands.
reactions to different flavors and
packaging designs.
IKEA's Improved Store Layouts: By
Neuromarketing understanding how consumers navigate
Efforts stores, IKEA can optimize layouts to
enhance flow and increase exposure to
Objective: IKEA uses neuromarketing to high-margin products.
understand consumer behavior and Effective Advertising: Tailoring
improve their shopping experience. advertisements to evoke the desired
emotional responses identified through
Approach: They employ neuroimaging, neuromarketing, potentially increasing
eye tracking, and emotional response engagement and sales.
measurement to study how consumers Enhanced Customer Experience:
Providing a more personalized shopping
react to store layouts, product displays,
experience based on insights into
and advertisements.
consumer preferences and behaviors.
Memory EEG and GSR data indicate that emotionally charged and optimally complex
advertisements are more likely to be remembered. This suggests that creating
and memorable marketing content can enhance brand recall and influence
Recall long-term consumer behavior.
Correlation
between Attention Eye-tracking and EEG data reveal that visually appealing and emotionally
Neuromark and engaging advertisements capture more attention and elicit stronger brain
responses. This increased attention and engagement correlate with higher
eting Engagement recall rates and purchase intent.
Techniques
and
Consumer
Neuromarketing techniques like fMRI and EEG provide insights into the
Behavior Decision- cognitive processes involved in decision-making. Understanding these
processes allows marketers to design strategies that align with consumers'
Making subconscious preferences and motivations, leading to more effective
marketing campaigns and higher conversion rates.
CONCLUSION
Neuromarketing is transforming the FMCG sector in
India by uncovering subconscious influences on
consumer behavior through advanced technologies.
This approach enhances advertising effectiveness,
optimizes product design, and fosters deeper
consumer engagement. While challenges like
cultural diversity and ethical concerns persist,
neuromarketing promises to significantly impact
sales and consumer loyalty in India's dynamic market
landscape.
3.5
