CB Brand Loyalty

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CONSUMER BEHAVIOUR vis-à-vis BRAND LOYALTY

description

This gives an idea of consumer behavior and loyalty it shows in buying a product and how it behaves accordingly.

Transcript of CB Brand Loyalty

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CONSUMER BEHAVIOURvis-à-vis

BRAND LOYALTY

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BIBLIOGRAPHY

KOTLER AND kELLER (158,290,261) MARKETING RESEARCH(Gilbert and Dawn)

(110) www.brandimage.com Wikipedia.com www.aolresearch.com

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BRAND

LOYALTY

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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

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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 (

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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

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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

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What is Loyalty?The consumer is loyal to you is s/he frequently buys yourproduct

LoyalBehaviour

Low High

Desired Behaviour

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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

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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

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Co-Branding

Two companies join to create a new product carrying both their brands.

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Co-Branding

Examples:

Pizza Hut & Pepsi

McCains cake and KFC

Cereal box with other thing inside

Pizza Pizza and Blockbuster video rental & Chocolate bar

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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.

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1. Past Experience

2. Price

3. Quality

4. Recommendations by others

5. Brand popularity

Price + Quality =Value

BRAND LOYALTY CRIRTERIA

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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

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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?

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IMPORTANCE

VARIETY

HIGHER SALES VOLUME (COMPETITIVE U.S. MARKET)

PREMIUM PRICING RETAIN RATHER THAN SEEK

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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

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LATEST TREND

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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.

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THANK YOU

QUESTIONS???