CB Brand Loyalty
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Transcript of CB Brand Loyalty
CONSUMER BEHAVIOURvis-à-vis
BRAND LOYALTY
BIBLIOGRAPHY
KOTLER AND kELLER (158,290,261) MARKETING RESEARCH(Gilbert and Dawn)
(110) www.brandimage.com Wikipedia.com www.aolresearch.com
BRAND
LOYALTY
A brand is a name, term, design symbol or any other feature that identifies a seller’s product from a competitive product.
Brand Names
Brand Marks
--Verbal part of the brandVerbal part of the brand
a symbol, design or distinctive coloring or lettering. a symbol, design or distinctive coloring or lettering. Ex. A brand name written in a distinctive way (Logo)Ex. A brand name written in a distinctive way (Logo)
BRANDING
Benefits of Branding BUYERS
Identify products via Brand Recognition Shopping efficiency is facilitated - Search time ( ) - Association of quality level
( ) - Perceived risk decrease ( ) - Facilitates repeat purchasing (
Benefits of BrandingBenefits of Branding SELLERS SELLERS
Identify products via Brand Differentiation Selling efficiency is facilitated - New product
introduction/Acceptance - Promotion of product (awareness) - Brand loyalty is assisted - Pricing at a premium - Legal protection
Most Valuable Global BrandsMost Valuable Global Brands
Coca ColaCoca Cola $$ 3636 BillionBillion
NescafeNescafe $$ 1111 BillionBillion
KodakKodak $$ 1010 BillionBillion
MicrosoftMicrosoft $ 9.8$ 9.8 BillionBillion
BudweiserBudweiser $ 9.7$ 9.7 BillionBillion
Kellogg'sKellogg's $ 9.3 Billion$ 9.3 Billion
BrandsBrands Brand valueBrand value
MotorolaMotorola $ 9.2 Billion$ 9.2 Billion
GilletteGillette $ 8.2$ 8.2 BillionBillionBacardiBacardi $ 7.1$ 7.1 BillionBillion
MarlboroMarlboro $$ 3333 Billion Billion
Source: Financial World
What is Loyalty?The consumer is loyal to you is s/he frequently buys yourproduct
LoyalBehaviour
Low High
Desired Behaviour
Commitment/desired behaviour
Hig
hL
ow
Low High
Desired Behaviour
Com
mit
men
t
PotentiallyLoyalBehaviour
ActivelyLoyalBehaviour
PassivelyLoyalBehaviour
The activelyloyal customeris the only (longterm) profitablecustomer
Emotional bonding
Extend the relationship from Product to Brand
Desired BehaviourLow High
Depth of Involvem
entC
omm
itm
ent
Low
Hig
h
Product
Brand
Depth of Involvementreflects moving from anarrow relationship withan individual product tobroad usage of thefull range ofproductsmarketedunder the brand
Co-Branding
Two companies join to create a new product carrying both their brands.
Co-Branding
Examples:
Pizza Hut & Pepsi
McCains cake and KFC
Cereal box with other thing inside
Pizza Pizza and Blockbuster video rental & Chocolate bar
BRAND LOYALTY
Brand Loyalty is the consumer's conscious or unconscious decision, expressed through intention or behavior, to repurchase a brand continually. It occurs because the consumer perceives that the brand offers the right product features, image, or level of quality at the right price.
1. Past Experience
2. Price
3. Quality
4. Recommendations by others
5. Brand popularity
Price + Quality =Value
BRAND LOYALTY CRIRTERIA
As perceived risk increases, the preference for branded products increases
Tends to increase with age
Higher among heavy users
Decreases as inter-purchase time increases
Brand loyalty FACTS
Challenges of brand loyalty
How should loyalty be created and sustained ? Are there different approaches for fast moving
consumer goods and durable categories? How should retail networks be used to build loyalty
at the retail outlet level? How should loyalty programmes be floated so that
they are profitable to companies too unlike several programmes which do not get much value for the brand?
IMPORTANCE
VARIETY
HIGHER SALES VOLUME (COMPETITIVE U.S. MARKET)
PREMIUM PRICING RETAIN RATHER THAN SEEK
How to?
FAVOURABLE BRAND ATTITUDES TO BE DEVELOPED DEVELOP AN UNBEATABLE PRODUCT
THESE HABBITS MUST BE REINFORCED. CONSUMERS REMINDED OF THE VALUE OF THEIR PURCHASE
ENCOURAGE REPEATED PURCHASING
ADVERTISING BEFORE AND AFTER SALE (eg.TRAVEL)
SERVICE
80:20 RULE TREAT THEM BEST
LATEST TREND
Mercedes Example. Having long been at the top of the heap, Mercedes has crashed in the last ten years,
tumbling from first to 28th place on a list of 35 car companies in a reliability survey conducted
by J.D. Power, a market research firm.
Mercedes is losing the loyalty game because of the declining quality and reliability of its cars.
"Even German taxi drivers no longer hail a Mercedes," reports the Financial Times, noting that the company’s reputation has been tarnished because the vehicles simply aren’t dependable any more.
THANK YOU
QUESTIONS???