Data-Driven Marketing Decisions in Sustainable FMCG Branding: An STP-Based Study of Consumer Engagement and Authenticity

Abstract

Sustainability, ethical sourcing, transparency, and social responsibility are becoming important factors influencing consumer brand preference and buying habits, causing a fundamental shift in global consumer markets. Although sustainability has become a strategic issue in the food, household and personal care product sectors, there is a lack of empirical research that investigates the impact of sustainability-oriented consumer values on the Segmentation-Targeting-Positioning (STP) framework, especially in emerging markets. This research has taken up Mamaearth, a top personal care brand in India, to explore the operationalisation of sustainable branding strategies through STP decisions. The study uses a mixed-method exploratory design, combining quantitative survey data from 200 respondents who are familiar with sustainable personal care brands with qualitative secondary data from sustainable personal care brands' consumer-facing communication, digital campaigns, and sustainability disclosures. The results of the statistical analysis (reliability testing, Pearson correlation, linear regression) show that the psychographic segmentation and effective implementation of STP could be used as predictors of sustainable positioning of the brand; sustainable positioning of the brand could be used as a predictor of consumer engagement; and the perceived brand authenticity could be used as a predictor of sustainable brand loyalty. These results provide further support to STP theory by showing how authenticity and ethical identity play a growing role in sustainable consumer segmentation in emerging markets alongside demographic classification. The research provides practical recommendations for FMCG businesses to ensure they establish trust with consumers, implement digital targeting ethically, and ensure their sustainability messaging is synchronised with tangible organisational action.