Brand loyalty's influence on consumer behavior In today’s highly competitive environments, improving consumers' loyalty to brands permits marketers to maintain a comfortable and lasting position in the marketplace. The new millennium is not just a new beginning; it is a continuation of trends in human behavior that have been following cyclical patterns throughout our country's history. Just because we have entered a new era does not mean we have to start from scratch when it comes to interpreting why certain consumers are loyal to certain brands, and what type of factors influence these allegiances. 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. Consumer behavior is habitual because habits are safe and familiar. In order to create brand loyalty, advertisers must break consumer habits, help them acquire new habits, and reinforce those habits by reminding consumers of the value of their purchase and encourage them to continue purchasing those products in the future. The image surrounding a company's brand is the principal source of its competitive advantage and is therefore a valuable strategic asset. Unfortunately, many companies are not adept at disseminating a strong, clear message that not only distinguishes their brand from the competitors', but distinguishes it in a memorable and positive manner. The challenge for all brands is to avoid the pitfalls of portraying a muddled or negative image, and instead, create a broad brand vision or identity that recognizes a brand as something greater than a set of attributes that can be imitated or surpassed. In fact, a company should view its brand to be not just a product or service, but as an overall brand image that defines a company’s philosophies. A brand needs more than identity; it needs a personality. Just like a person without attention-grabbing characteristics, a brand with no personality can easily be passed right over. A strong symbol or company logo can also help to generate brand loyalty by making it quickly identifiable.

Loyalty Be Loyal is to be faithful to one's friends , principles , country , school , job , etc. Loyalty is a tenet that everybody have , animals have it too . Gorillas are a clear example of it . In Africa these great apes live in group . As many as thirty gorillas may live together, but there are more likely to be from six to seventeen animals in a group . The group always include at least one full-grown male that by this time has grown a saddle silver hair on his back . Whithin the group there are often one or more younger black back males , a few females , and a number of youngsters and infants . A mature silverback at.... Julius Caesar: Loyalty Thesis: Loyalty can be expressed in virtuous and corrupt manners, that in which many people cannot understand. Loyalty defined means faithfulness to one's friends, country, ideals, etc. What would one do when these things conflict with one another? When they coincide? One would have to choose. A choice that can make or break a man, which I believe broke many men in the play Julius Caesar. One did not know who was friend or foe. One's dearest friends actually your foes? Not possible, is it? Yes, it is. That is the story of Julius Caesar. Julius Caesar, a great, noble man. A man for his country. A man love....

Men do not always watch the same TV channel, do not dine at the same restaurant, or, do not sip the same brand of wine. Then how can they be expected to use the same brand throughout and be loyal to it for life? The virtue of loyalty among the mortals is fast fleeting. Yet, it is this elusive factor that forms the fuel to drive financial success of the corporate players especially in today's volatile economy. And as the companies face the harsh realities of an economic downturn, they strive hard to hold on to their customers and to earn their loyalty with all their strength and might… to keep their kitchen-fires burning.

Perspectives on customer loyalty Customer loyalty presents a paradox. Many see it as primarily an attitudebased phenomenon that can be influenced significantly by customer relationship management initiatives such as the increasingly popular loyalty and affinity programmes. However, studies show that loyalty in competitive repeat-purchase markets is shaped more by the passive acceptance of brands

Model 2: Loyalty mainly expressed in terms of revealed behaviour (i. 2. yet the best supported by data. circumstances and/or the purchase situation • • 1.relative to competing brands. From this perspective. reveal that attitudinally loyal customers are much less susceptible to negative information about the brand. the Beanie Babies craze and the classic case of Harley Davidson bikers.than by strongly-held attitudes about them. The strength of these attitudes is the key predictor of a brand's purchase and repeat patronage. feel committed to it. The controversy come about because loyalty in this model is explained mainly . Model 1: Loyalty as primarily an attitude that sometimes leads to a relationship with the brand Many argue that there must be strong "attitudinal commitment" to a brand for a true loyalty to exist. the pattern of purchases) This is the most controversial. These attitudes may be measured by asking how much people say they like the brand. It is a partnership that will be even stronger when supported by other members of a household or a buying group. the demand-enhancing potential on loyalty is more limited than might be hoped. Moreover. There are broadly three perspectives on customer loyalty that can be best explained as three distinct models as detailed below: • Model 1: Loyalty as primarily an attitude that sometimes leads to a relationship with the brand Model 2: Loyalty mainly expressed in terms of revealed behaviour (i. and have positive believes and feeling about it . the revenue stream from them becomes more predictable and can become considerable over time. Analyses of cases such as Federal Express. and where consumption is associated with community membership or identity. Pizza Hut franchises and Cadillac dealerships. the pattern of purchases) Model 3: Buying moderated by the individual's characteristics. This is seen as taking the form of a consistently favourable set of beliefs towards the brand purchased. An extension of the "attitudes define loyalty" perspective is to suggest that consumers form relationships with some of their brands.e.e. So much so that loyalty becomes a committed and affect-laden partnership between consumers and brands. will recommend it to others. Examples in support of this argument include Skoal smokeless tobacco among some North American cowboys.

is inferred to operate in the following manner.for a defined period). the particular use of occasion (e. usually as one of the several". A threefactor model emerges based on antecedents (including weak prior attitudes and characteristics of the consumer). loyal to a portfolio of brands in a product category). a strong attitude towards a brand may provide only a weak prediction of whether or not the brand will be bought on the next purchase occasion because any number of factors may so-determine which brand is deemed to be desirable. 3. contingency factors (including type of use of occasion and the purchase situation) and consequences (up-dated attitudes. Loyalty. Model 3: Buying moderated by the individual's characteristics. a brand that provides a satisfactory experience is chosen. the researchers tend to adopt a market focus (e. not because of any strongly-held prior attitude or deeply-held commitment. penetration. The consumer buys the same brand again. circumstances and/or the purchase situation Proponents of Model 3. Individual characteristics are reflected in the desire for variety. their characters and/or the purchase situation faced. the contingency approach. gift. Studies indicate that few consumers are "monogamous" (100 per cent loyal) or "promiscuous" (no loyalty to any brand). the need to confirm. Through trial and error. with the over-repeated purchases. but because it is not worth the time and trouble to search an alternative. a weak commitment to the number of brands purchased in a product category can be formed. family use) etc. However. the tolerance for risk. key performance measures are brand shares. . Those who subscribe to the "attitude drive behaviour" and "relationship" approach rule-out the revealed behaviour as a dominant measure of loyalty. From this perspective. Rather most are "polygamous" (i.e. Purchase situation effects include product availability. etc.g. here. repeat buying . then another functionally similar (or substitutable) brand (from the portfolio) will be purchased. intentions and the actual purchase behaviour). average purchase frequencies.g. loyalty may be explained as "an ongoing propensity to buy the brand. promotions/deals. If the usual brand is out of stock or unavailable for some reason. Loyalty to the brand (measured by repeat purchase) is the result of repeated satisfaction that in turn leads to a weak commitment. personal use. argue that the best conceptualisation of loyalty is to allow the relationship between the attitude and behaviour to be moderated by contingency variable such as the individual's current circumstances. In this case.with reference to the pattern of past purchases with only secondary regard to underlying consumer motivations or commitment to the brand. That is. habit.

Here it is repeated satisfaction and weak commitment that together with other relevant contingency variables co-determine future brand choices. Since this is a model of ongoing CBA frequently purchased products. the need is for low-alcohol beer. The contribution of Model 2 is that customers exhibit loyalty to a number of brands because there is little reason to develop attitudinal loyalty to any one of the brands purchased. These people's air travel schedules may result in them having quite a few brands in their portfolio. but also brings together some elements of Model 1 and 3. but not necessarily for any particular brand of low-alcohol beer. not brand-based ones. A prime reason for this is that a proliferation of brands in most markets has destroyed one of the key reasons for exclusive loyalty viz. Need arousal is a trigger to purchase process The concept of CBA can be well elucidated in terms of the five-stage model of customer choice.but this operates mainly on product category decisions. brand distinctiveness. Conceptual implications of the approaches to loyalty The aforesaid three perspectives of loyalty can be related to a framework for understanding customer loyalty that encompasses customer brand acceptance (CBA). customer brand commitment (CBC) and customer brand buying (CBB).The difference between this contingency perspective and the attitude perspective is that the contingency variable is elevated from the status of loyalty inhibitors in Model 1 to loyalty co-determinants in Model 3. This is even more evident where attributes are weakly held. Attributes of the individual and the purchase situation are conceptualised as "nuisance" variables that inhibit the natural evolution of customer loyalty whereas in the contingency model these variables are seen as playing a primary and inescapable role in explaining the observed patterns of purchase behaviour. All these loyalty patterns profile customers. (See box: Customer Brand Acceptance) Need arousal is included as a trigger to the purchase process . The loyalty patterns are elaborated hereunder. not brands per se. i. For instance. For instance. and some other may buy purely on the price/route combination. consumers are distributed across the curves with respect to their loyalty to a brand. It draws heavily on Model 2. the . Customer Brand Acceptance (CBA) Brand distinctiveness affected The concept of Customer Brand Acceptance (CBA) is the base case of customer loyalty in competitive repeat-purchase markets. for a desire to stay sober. most customers may accept a number of airlines while a few customers may be committed to one or two airlines.e.

attitudes. expensive cosmetics etc) and thinking of life choices (education. Here. The introduction of new brands or the reformulation of current brands may alter the purchase propensities although the aggregate impact on short to medium-term brand loyalty is likely to be marginal. sporting allegiances etc). Customer Brand Commitment (CBC) Brand component that drives choice and commitment The first exception to Customer Brand Commitment (CBA) concerns those consumers who value psychological and social value more than function. the relative likelihood of buying each brand will endure over successive purchase cycles. second favourite. there may be a brand component that drives choice and commitment for a significant number of customers. availability and conspicuousness of the brand at the point of purchase. especially the initial adoption of some distinctive brands such as the Apple Mackintosh.(external) information search and evaluation stages are assumed to have been completed after the initial one or two purchases in the keeping with Model 1. the Sony Walkman and Harley-Davidson motorbikes. Similar attitudes reported for descriptive ttribute beliefs This is not to suggest that attitudes will not form towards these brands over time (Model 1). assuming the brands remain functionally adequate and accessible. Satisfaction with past purchases and any consequential habit formation explain most of a person's ongoing propensity to buy one or a number of acceptable brands. In this situation. simple learning. values and social norms are seen as having a major influence and the consumer can develop a relationship with the brand ." "Woolworths offers fresh food") by both brand-users and non-users. Typically. Unexpected purchase situation circumstances (e." "United Airlines is friendly. an existing brand being on sale) may influence the actual brand chosen on a specific purchase occasion (drawing on Model 3). This is easiest to see when these consumers are buying high-identity products (luxury goods. "Volvos are safe. this will be seen as a set of acceptable brands that are ordered as first favourite. third favourite and so forth. . research shows that this belief may simply be a playback of the message content of the brand's advertising or publicity i. This is what CBC is all about. but they will be of secondary importance to functional adequacy of the brand.e. Choice among the functionally equivalent alternatives will reflect the accessibility. Most likely. This can be seen in the very similar attitudes reported for descriptive attribute beliefs (for example. Indeed. for the markets which are the focus here. and so are not explicitly included in the diagram.g.

price promotions etc. offer limited scope for creating meaningful differentiation. say. in fact. however. was forced to instigate a quality improvement programme to save the brand from Japanese competition. is never assured The aforesaid commitment is. customers who have "compartmentalised friendships" with different brands of coffee. and . they will not eliminate the need for the brand to "do the job". Allegiance. CBC and CBB are the exceptions rather than the rule in most repeatpurchase markets.weak attitudes (for e. Consider the example of car rental: if we were to draw from a large sample of the population. with CBC. It is mainly the infrequent flyers who are loyal to a single frequent-flier programme. while the non-functional sources of value may be strong.resulting in the type of behaviour best described by CBA. One way to see this is a sampling problem. one of the strongest personality-relationship brands. Customer Brand Buying (CBB) The other exception to CBA concerns those consumers who exhibit very low levels of loyalty.especially when the focus is on frequently-bought brands. Thus. frequent fliers tend to use a number of different airlines.g. Their choices are shaped by considerations of immediate availability. Even loyalty leaders cannot be complacent Even where a relationship develops. these are the less profitable customers. research on international travellers indicates that these people are typically members of multiple frequent-flier programmes and therefore show multi-brand loyalty to both the airlines and their programmes. Harley-Davidson. even for cases where the level of consumer involvement is high.These relationships defined in the consumer's mind may help to differentiate one brand from another and the buyers end up supporting a price premium for that brand. differentiation among brands may be relatively low (such as with most airlines and hotel chains) . it may not be the only one in a particular product most . and only a few by CBC (committed to Hertz) or CBB ( renting from literally any car hire firm that happened to be discounted at the time of purchase). Starbucks in the morning and Folgers in the afternoon. The concept of ËB is closely allied to Model 3. most customers of avis or Hertz would be characterized by CBA. however. not guaranteed . where contingencies are co-determinants of choice and not simply nuisance factors. For example. users of an online travel agency may express liking for it because it obtains for them best price airfares). but invariably. This above notion of a loyalty continuum with the three anchor points of customer . Moreover. First. the socio-psychological elements of competing brands may. In most markets. For instances.

However. For instance. Usually this takes the form of points that can be exchanged for gifts. accumulating economic benefits to consumers who buy the brand. Or they envisage a combination of Models 3 and 1. Mechanisms are set up to enhance two-way communication for the customer to get to know the brand better and for the company to learn more about the customer. they assert. Affinity programmes are a specific type of loyalty programmes as well.brand acceptance. free products or aspiration rewards such as air-miles. the critics argue that loyalty. for most customers is quite passive and resembles habit rather than serious commitment. Hybrids also exist. induce greater consumer resistance to counter offers or counter . both attitudinal and behavioural. Critics favour the multi-brand divided-loyalty model (Model 2) and assume that most of the customers are CBA types who are not strongly swayed by the programme. Volkswagen Club. And also.g. where the programme is seen to reinforce CBC-type outcomes. Swatch the Club. and a third party (e. that there is little or no evidence that any changes in customer behaviour justify the enormous expenditure on these programmes. website "chat" groups etc. which are designed to enhance the emotional bond between the customer and the brand. a charity) receives a financial benefit. Examples include telephone helplines. Loyalty programmes from an individual's perspective l It can be seen as a vehicle to increase single-brand loyalty. Supporters of loyalty programmes have in mind Model 1. Loyalty resembles habit What gives poignancy to the concept of customer loyalty is the supposed justification it gives for managers to spend dollars on CRM programmes and the costly customer databases that support these. Mercedes Mastercard etc). customer brand commitment and customer brand buying provides the necessary basis for evaluating the aims and potential commercial effectiveness of loyalty programmes in terms of customer-related issues. Loyalty programmes and their implications Loyalty programmes are schemes offering delayed. or the establishment of a club. club membership. newsletters. where the focus is on enhancing the emotional bond between customer and brand. This latter format is prevalent in countries like Germany where trading laws prohibit incentive based schemes (for instance. decrease price sensitivity. alumni associations. Airline frequent-flier programmes have been a prototype for many of the schemes. where consumers with no loyalty (CBB-types) are converted into singlebrand loyal (CBC-types) because of the customer benefits of the programme. where consumers pay for membership in return for access to special events and offers.

Loyalty programmes from a market perspective At an aggregate level. most of the customers are multi-brand loyal and loyalty schemes cannot turn them single-brand loyal overnight. In its early years. for all brands. A possible fourth strategy is also considered in this regard. • Strategy 1: Grow the size of the brand This can be achieved by making the brand acceptable to a large number of potential customers (See box: Tesco Clubcard Scheme) . an above average number of CBCs at a highlevel of market share). suggesting more usage occasions etc. Strategy 3: Become a "super-loyalty brand" Here a brand is expected to become a "super-loyalty brand". l Loyalty programme is seen as a brand extension aid (for e. repeat-purchase markets typically have a well-defined structure . icon-status Nike appeared to be such a super loyalty brand. This strategy implies a higher proportion of behaviourally-loyal and committed buyers for the level of market share than predicted by the DJ effect. offering greater perceived value. the Body Shop was a successful niche brand. l Most people buy only what they need and are not usually carried away by the keeping with the focus on CBA. Tactically. attract a larger pool of customers. Tesco attempts to expose its Clubcard members to high-margin wines.e. • • . l However. During the early 1990s. gaining wider distribution. This could be achieved by reducing the distribution coverage of the brand and using the money saved to better support or promote the brand to current customers. These are brands that exhibit signs of strong commitment and that have higher than expected repeat purchase (i. it is to be expected that.g. dampen the desire to consider alternative brands. financial services and electrical goods as well as lower margin groceries). Strategy 2: Create a niche brand This can be done by aiming to keep the number of buyers relatively low but at the same time increasing the average bought by these buyers. This market structure gives rise to three strategies for enhancing the observed level of repeat-purchase or loyalty of a brand. Whatever their market shares. most brands exhibit a double jeopardy effect whereby small brands have fewer buyers who buy them less often than bid brands.arguments.viz. this means exposure at the point of purchase. there will be some CBB and CBC buyer and a majority of CBA buyers.

but rather it simply makes the brand easier to consider. including product and service improvements). In their case. is not a substitute for the inherent functional. In other cases it may provide more opportunities to talk with customers and.• Strategy 4: Exploit the desire of customers for change-of-pace A fourth strategy implied by the DJ effect is to exploit the desire of customers for change-of-pace. more opportunity to sell brand extensions to customers. Reasons behind this thrust on loyalty schemes In spite of all the negative reasons. If for some people the programme provides additional emotional value. a more realistic aim is to build on existing levels of CBA. Here the penetration is higher and the repeatpurchase rate lower than predicted by the DJ effect. or desire an explicit reward for their loyalty. And the reason for so much momentum behind these programmes is as follows: Vehicles for maintaining customer loyalty It is possible to see loyalty programmes as vehicles for maintaining customer loyalty (i.e.enhancing brand equity. Some imported and premium beer brands fall into this category. for keeping the brand in the customer repertoire) or for maintaining brand share (where the programme works in combination with other valued enhancements. Improves brand accessibility and market conspicuousness Another role for loyalty programmes can be to improve levels of accessibility and market conspicuousness for a brand. the aim of the programme is to get the brand into the customer's set of acceptable brands. The critical task for the programme manager is to design a cost-effective scheme to achieve this aim. though the typical beer brand of this type is really very small. Here. . psychological and economic value designed into the brand. If the customers feel the need for affinity. The critical issue then is for the programme to reinforce the value proposition of the parent brand . then this is a bonus. This can manifest itself as a more credible proposition to retailers in order to secure more shelf space and benefit from "retail push". the fact remains that more and more loyalty programmes are being introduced. rather than trying to induce single-brand loyalty from customers who previously have exhibited divided brand loyalty. This. they will join the programmes of the brands they buy. perhaps. This is primarily a penetration effect and cannot be seen as loyalty building unless an organization offers a portfolio of these brands. however. not just building loyalty programme equity.

they might help to protect incumbents and might be regarded as a legitimate part of the marketer's armoury. once this programme has been introduced. even as a large number of companies continue to show an . for many others they have become a necessary toolkit for doing business. Most schemes do not fundamentally alter the market structure. Hence."Me-too" pressure There is always a "me-too" pressure to follow others who have embarked on this path. there also might be first-mover drawbacks from snatching away much heralded customer benefits. there are persistent rumours that many airlines would like to end their frequent-flier programmes if they could find an acceptable way to do this. Just as there may have been first-mover advantages in creating a loyalty programme. but at the cost of increasing market expenditures.even if their claimed benefits are not being realized. there are instances of card-based loyalty programmes having been dropped (e. Many organisations have clearly benefited from the implementation of the customer loyalty schemes. Moreover. that goal has proved elusive. For instance. However.g. However. So far. although the need to respond to deep discounting by companies such as Southwest and Virgin may force the hand of some operators. managers seem very reluctant to cancel them . also Ford USA withdrew its credit card reward programme). schemes operated by the DIY group Do-itAll and the grocery store Safeway in the UK.


A study. . and understanding. measuring and managing loyalty can be very complex but is imperative for marketers.Consumer Behaviour : Exploring Brand Loyalty : Brand loyalty has been an enduring topic of interest among both academics and managers. sources of information. which can be extremely important for marketing managers in understanding their respective brand contexts and for charting out a broad tactical level brand plan for the coming years. probing into the expectations of loyal consumers in three product categories — non-durable consumer goods (soaps). was conducted by the authors. Customers can be loyal as well as fickle. Is it the functional utility of a brand or its symbolic utility — that which boosts his ‘social ego’— that is driving the consumer? How sustainable is price-led loyalty boosted by frequent sales promotions and freebies? Can it prevent brand switching? What can companies do to understand customer expectations? In the intangible services category. purchase and post purchase – much depends here on the building of relationships. consideration of alternatives. The findings revealed some dimensions. In this project my job is to collect the maximum available data (both primary and secondary form) related to this topic and evaluate those information to reach a meaningful logical conclusion. durable categories (colour televisions) and services (domestic airlines). illustrating the basic aspects of purchase involvement and brand loyalty issues. what are the strategies marketers may adopt to build on the basic model of consumer behaviour with the distinctive stages of customer need. The behavioural approach to understanding loyalty would involve research not only into purchase behaviour of consumers but also their psychographics.


how many in column B. In this example. A Makes Huydai Maruti BMW TATA Chevrolet Chrysler SKODA Ford Honda Mahindra HM Owns B Plans to Purchase ? B How Many? C Plans to Purchase? .) Please check all types of cars your business owns in column A.Sample Brand Loyalty Survey AVAILABLE AT ENTREPRENEUR. 1. and if your company plans to purchase a type of car within the next 12 months in column C. the product of interest is cars. Types A Owns SUV Coupe Sedan Truck Minivan Sports car 2.COM This sample brand loyalty survey can be used to gauge how loyal consumers remain to a given brand and the reasons why they do or do not remain so.) Please check all the makes of cars listed below that your business owns in column A and the makes of cars your business plans to purchase in column B.

Other: _____________________ .

1.) Please check all types of ____ your business owns in column A. and if your company plans to purchase a type of ____ within the next 12 months in column C. Types A Owns B How Many? C Plans to Purchase? . how many in column B. Please refer to the Sample Brand Loyalty Survey as an example.Brand Loyalty Survey Work Sheet AVAILABLE AT ENTREPRENEUR.COM This work sheet is a template for developing your own survey based on the type of product or service your company offers.

where one can easily make their own questionnaire with the help of inbuilt software . I then evaluated those feedbacks which I have mentioned in the FINDINDS section. .2.) Please check all the makes of ____ listed below that your business owns in column A and the makes of ____ your business plans to purchase in column B. For collecting primary data I visited . Beside this I have collected a critical mass of secondary information which really helped me to interprete my findings. A Makes Owns B Plans to Purchase ? Brands A Owns B Plans to Purchase? Other: _____________________ In this project I took the maximum help of internet to collect both primary and secondary type of data.Out of 80 .com and QuestionPro. I got response from 59 . I then posted those Survey Questionnaires to 80 e-mail addresses ( which I sourced from IndiaMart Biz Directory).

and the remain third declard themselves neutral. as everyone knows. underscores the fact that all brands have an emotional as well as experiential and economic value.The Science Behind Brand Loyalty? The New York Times reported this week that companies are looking at brain-scan technologies to determine the effect that brands have. the temporal pole and the amygdala. which. aged 22 to 66 years old. The study. Everyone had similar brain patterns when answering questions about trips to the bank or other routine activities.non brainsurgeons. The article described an experiment where 16 women. By contrast. stick with me now -. women who were mildly fond of or neutral about the store showed far less activation or no activation in those mental emotional areas. can be heavily influenced by peer pressure. participated in a brain scan study. although extremely limited. ." These sections are generally associated with strong emotions. About one-third of the women said they were passionate about a particular department store. But those who declared themselves loyal to the store showed a particular brain pattern when asked questions like "this is the store for me." The brain patterns of those loyalists reflected extreme activity in the -. conventional norms or other factors. one-third said they liked shopping there but weren't especially loyal.the "orbitofrontal cortex. The study consisted of tracking brain blood flow while performing mental tasks. The goal is to go deeper than responses on surveys or in focus groups.

If you hooked up a brain scan to your customers. no one need be short of information. Consumers have become less loyal because: they believe that most competing products offer the same value and that price is more important than brand. telecom and media industries -. "Brands That Engage Consumers Emotively Will Reap The Rewards Of Increased Wallet Share And Peer Recommendations". Forrester has dubbed this concept "symbiotic loyalty. brands need to build consumer trust by making emotive connections. “One of the issues here is that a customer’s and a firm’s perception of what constitutes loyalty are often not in sync.” The Forrester report describes how consumers of today have become promiscuous. That. Hellen Omwando. To compound the problem. They shop with abandon for items in one category from different retailers and maintain simultaneous relationships with different mobile operators to suit their purposes. or the bright reds and yellows of loyalty? 'Return On Loyalty' Metrics Drive Effective Brand Loyalty Strategies. what and where to invest in loyalty -. CPG. and push marketing no longer resonates with them. they trust their peers more than they trust companies. Technology has only exacerbated this trend: Armed with a remote control and 30 TV channels. a firm is more likely to wonder ‘What else can this customer buy from us?’ Firms acknowledge that they . actively cultivating endorsements and minimizing costs. A Forrester Research study shows that conventional loyalty strategies fail because they are one-sided and ignore critical loyalty drivers. what would the read-out look like? The cold greys of neutrality. means knowing when.including those in the retail. nobody has to watch a TV ad. Consumer Markets analyst at Forrester Research. the Internet has made it very easy for consumers to compare product pricing and switch accordingly. While customers tend to think ‘Why does this firm keep sending me irrelevant messages?’. To turn the tide. explained: “Most consumer-facing firms -.and when to end unprofitable relationships. most keep multiple email accounts from different providers and carry loyalty cards from competing stores." Forrester defines symbiotic loyalty as a dynamic win-win association where brands engage consumers emotively and consumers reward them with increased wallet share and peer recommendations. with a PC and modem. say the analysts.face a growing problem: declining customer loyalty. recently at its Consumer Marketing Forum in London. Forrester presented the new study.

have a problem if they can't keep loyal customers, because loyalty is the key to sustained profits," said Omwando. "The problem is that the conventional methods they use to keep customers tend to focus on how much they can squeeze from their customers -- or they rely on consumers who can't be bothered to switch to other suppliers because of inertia.” To thrive in the face of declining customer loyalty, according to Forrester, companies need a strategy that meets the requirements of both parties. Most firms should seek to win truly loyal customers -- those who buy stick with particular firms or brands because of their emotional connections -- rather than customers who stick to brands just because it’s convenient or because a brand is cheaper. Also, firms can only attract truly loyal customers if they have a win-win association with their customers. In its reports on Symbiotic Loyalty, Forrester describes how firms can do just this; it also ranks brands in terms of competition and emotive connections, demonstrating that symbiotic brands lead in revenue growth. Symbiotic loyalty rests on three pillars:

First, firms must develop emotive connections with their customers in order to build trust. Second, they must be sociable and actively encourage their customers to recommend their products and services -- emotively connected consumers are more likely to recommend products and services to their peers, and are therefore growth engines for companies/brands. Finally, firms must be dynamic enough to know when to make investments in loyalty or when to break off relationships with unprofitable customers.

So what can firms do to achieve symbiotic loyalty? Omwando concluded with a few of the recommendations that are elaborated on in the report: “Firms need to find out who their emotively driven customers are. Measuring repeat purchases is just not enough. They need to start measuring the return on loyalty (ROL), which quantifies the value that loyal customers generate and will tell them when to invest in these loyalists -- or when it’s time to break up.” Theory Of Varied Consumer Choice Behavior and Its Importance For decades, scholars and practitioners have been frustrated by the very limited capacity of either psychological or marketing models to predict individual choices on particular occasions. This paper discusses a theory which explains the degree to which the extant models omit important influences that produce varied individual choice behaviour. The focus of this paper is on the sequences of product purchases.

Discretionary actions and activities are also covered. THE THEORETICAL AND APPLIED RELEVANCE OF VARIED BEHAVIOUR The assumption that consumers make rational, utility-maximizing choices has played an.... Climbers and Decliners Kit A study that reveals category triggers to increase consumer loyalty. With at least 65 weeks of customer card data, Data Ventures identifies consumers who are climbing in quality over time and those who are declining in quality over time. Climbers and Decliners are clustered by purchase behavior that describes the way they shop your store. A study of each cluster’s behavior reveals the categories that are under the greatest competitive threat, the categories to which consumers have the most loyalty, and the categories that can bring consumers to higher levels of loyalty through promotion. Climbers and Decliners can be a one-time delivery or an integrated program to build loyalty through periodic direct mail communication and the tracking of the behavior of each group to measure success. With the Climbers and Decliners Kit you will: Understand how your best consumers shop - categories that are most important to them and what motivates them to purchase more.

Understand why your declining consumers are leaving – categories where they have defected to other outlets and categories where they still are still engage.

Receive mailing lists of clusters of consumers and a set of optimal offers for each cluster to increase loyalty and share of dollars spent at your store.

Track success of programs for each cluster of consumers. Customer Loyalty Segmentation Kit A study that clusters consumers by behavioral quality tiers and describes key motivational points for each cluster. All retailers are different in their go-to-market strategies. Instead of tracking consumers by deciles or quartiles, Data Ventures provides the ability to cluster and measure consumers by the way they shop relative to your strategic positioning. Are you a high/low operator? We offer the ability to cluster consumers by their price responsiveness. Is Private Label central to your growth strategy? We will

cluster consumers by their degree of Private Label penetration. Do you strive to be a one-stop-shop? Data Ventures will cluster your consumers by the diversity of category and department shopping within your store. The Customer Loyalty Segmentation Kit drills down to describe the behavior of each cluster, (i.e. what they purchase, when they purchase it and at what level of discount) providing you with insight on the motivation behind each group. The Customer Loyalty Segmentation Kit allows you to monitor your progress in establishing and maintaining your unique market positioning by measuring your impact on the consumer groups that matter to you. It can be delivered as a onetime assessment of your consumer base or as an on-going score-carding of you progress in growing your most important consumer groups. With the Customer Loyalty Segmentation Kit you will:
• •

Identify your most important consumers.

Understand which categories, brands, and levels of discount motivate your most important consumers. Receive mailing lists and a set of optimal offers to increase the loyalty of consumers who are poised to improve their quality.

Identify consumers who are “cherry picking” your store and learn how to discourage them from draining profit from your bottom line.

Brand Loyalty Kit A study that describes consumer brand loyalty and brand consumer purchase patterns. The Brand Loyalty Kit clusters consumers who purchase a particular brand, measures their loyalty to the brand, and quantifies their value to the brand, category and total store. With the Brand Loyalty Kit you will learn the habits of your consumers. One can select the clustering method based on his needs. Heavy/Medium/Light clustering reveals the habits and needs of your best consumers and offers insight in to how motivate Moderate and Light consumers to purchase more. Brand Loyal/Brand Switcher clustering gives you insight as to why consumers switch brands so that one can put programs into place to make fickle consumers loyal to his brand.

or to recommend us to others? . in revenue and profits? • What is our brand's level of repeat purchase? • How does this compare to your industry average? • What is the profile of our loyal customers? How do we acquire more of them? • How well do we reward our loyal customers? • What opportunities can we give to loyal customers to buy more.How often do they shop? What other categories do they shop? How responsive are they to discounting? • Identify competing brands to which his consumers are likely to switch – Which brands are his consumers likely to switch to due to promotion? These are some Basic Questions one should introspect before executing any loyalty promotion campaign: • How close are you to your customers? How are your contact details being processed? • What CRM management system do you use? • Is Customer loyalty regarded as an important element in driving profitable growth in youe organization? Before one can set a loyalty strategy one needs to evaluate one’s brand's level of customer loyalty.How much do they buy when they purchase and the value of their basket? • Learn how his brand consumer shops the store .With the Brand Loyalty Kit one will: Learn how often consumers purchase his brand . Some key questions to ask are: • What is the annual and lifetime value of my loyal customers? • How do we allocate marketing spend between our loyal customer.

what type of flowers they buy.The point to knowing what one’s customers LCV (liftetime value and annual value) is so it can guide you economically of how much to invest to retain a loyal customer and allocate resources between existing & potential customers. . occasion etc. region.g. You can segment your customers in a number of ways e. value.

CRM 2005: Will Technology Finally Live Up to Its Potential? Each year for the past 11 years. However. Was 2004 that year? Disappointingly.1% 19. When the organizations are asked to rate the results they were achieving. take part in most recent study. worldwide. Of these organizations.4% 14. many more will be positioned to achieve significant results because of five key trends my study data surfaced: On-demand applications are no longer the exception: The year 2004 was a breakout year for on-demand CRM applications. NetSuite and Salesnet all posted significant market-share gains from the previous year.Com.7 percent had evaluated and implemented a CRM system (either a commercially available product or an internally developed application).000 firms. the findings are the following: Achieving significant improvements in performance: Achieving minor improvements in performance: No measurable improvements in performance: Do not know: 28. these applications are • . sell to and service customers.1% Interestingly. We had more than 1.4% 38. CSO Insights. as part of our annual sales effectiveness study. no. has surveyed companies on the use of CRM technology to understand what they are buying (or not buying) and the results they are generating from these investments. CRM is finally living up to its ultimate potential--and truly helping all companies optimize the way they market to. 46. the same numbers that they saw in 2002 and 2003. Especially in the SMB marketplace. with just more than one-quarter of initiatives generating expected significant results. SalesForce.

. • The domain-expertise trend continues: New players continue to appear offering tools that have domain expertise for specific industries such as pharma. The net result is that end-user companies are getting access to more out-of-the-box functionality specifically focused to deal with the customer relations issues they uniquely face in their marketplace. pulling data from such areas as external data sources. internal knowledge bases and best practices repositories. and they are making CRM available to a whole new set of users. and we are seeing significant increases in user adoption rates for firms who adopt this approach. and the applications then serve as a virtual digital assistant. A quick comparison of study participants who implemented a formal sales methodology. sports marketing and industrial distribution. medical products.easier to implement and maintain. This trend is forcing traditional CRM vendors to create industry-focused versions of their systems to compete. higher win rates and less discounting. we saw some mind-blowing examples of how end-user firms were able to generate detailed. • • CRM providing knowledge. In many cases. all you saw were basic sales process forms now available online via the CRM application. insightful analyses of exactly what was working or not working at every step in the sales process through the use of analytic tools. as compared to hosted applications. when you looked under the covers. providing reps with targeted briefing books on how to sell more effectively. CRM/sales process integration is improving: Several years ago. what reps can do is tell the CRM systems the specific types of information they are interested in. I was initially underwhelmed. This past year. This trend is clearly making these CRM systems more valuable. showed they were outperforming other firms in key areas such as percentage of more reps making quota. not just data: Another trend that is significantly increasing the value of some CRM systems is the ability to populate them with insights and knowledge vs. just data. In essence. and then used CRM to activity manage the process. semiconductor and electronic products. To be frank. we witnessed a whole slew of press releases touting how CRM vendors and sales process vendors were teaming together to tightly integrate their separate offerings. financial services.

. Give incentive for a repeat buy. Design a few good call-to-actions for referrals. by frequency. Leads can then be processed and tracked much more easily as they are passed from marketing to sales. Determine the ROI potential of your loyalty programs (incentives. 1. (What are they buying. etc. When. Eitherways. I would list a few steps that may prove to be helpful in fosteriing brand loyalty. is price a major factor?etc) 2. 4.Get feedback at the end of the sale? (how was the experience. Knowing the purchase patterns (% repeat.• Improved sales and marketing alignment: A final trend we are seeing is the improvement of sales and marketing alignment resulting from the tighter integration of sales and marketing-focused CRM technologies. Contact customers on special occasions (Christmas. 8. 6. the web customer has a short attention span. any suggestions) 3. Marketing tools are allowing for more effective segmentation of their markets. by sale amount. These trends all bode well for improving the ROIs that firms will see resulting from their CRM investments. advertising. the delivery is a key driver.) and what it is customers like about your site. 7. Keep it simple. 5. Valentines) and ask if they would like to order as you prioritize your existing customers. Learn more about the buying process from the incoming customers. and the implementation of more targeted campaigns than ever before.) this may vary depending on your products. 9. for Whom. and CRM applications also are now supporting an effective feedback loop to improve communications between these two functional areas. Remember on the web its not necessarily all about the ads and promotions. etc.

 TM companies promote everywhere in search of customers. CRM companies promote to a defined customer group and aim to make the right offer at the right time using the right channel to the right customer. offered a popular product (sports equip) at low prices. However the site foundered. Customize marketing treatments for each prospect in terms of product offers. Transaction Marketing vs. RM will be stronger in companies facing a small number of customers. Fogdog. CRM companies focus on building a long-term relationship that produces satisfaction for the customer and profitability for the company.10. TM will be stronger in companies facing a large number of customers. service mix. Classify customers by their needs and by their value to the firm.  TM companies focus on products and making a sale. Customer Relationship Marketing  Customer Relationship Marketing (CRM) represents a paradigm shift from Transaction Marketing (TM). Understand your customers better than the competition. Treat Different Customers Differently     Most profitable customers Most unprofitable customers Most growable customers Most vulnerable customers A 5 Step Model for Database Marketing 1. was well funded.  All companies must practice a mix of TM and RM. Prepare business rules that select the best prospects. in part because it was difficult to execute a transaction and also because the mgmt focused on talking at customers instead of with them. 2. 3. and channel. had high awareness and good image. 4. Gather useful data on customers. .

Consumers want a conversation. etc. telephone companies). insurance companies.  Requires managing and training employees. and suppliers. Does Every Business Need CRM?  No. to dialogue.  Companies that can do a lot of cross-selling and up-selling (GE. The following businesses may not benefit from CRM:  Businesses where the CLV is low.  Companies whose customers have highly differentiated needs and are of highly differentiated value to the company. dealers.  Businesses where there is no direct contact between the seller and ultimate buyer. to participate. Amazon.  Requires constant updating of information. credit card companies.  Some critical information may not be available.  Companies that collect a lot of data (banks. product-myopic marketing to .  Requires a high investment in hardware and software. Set up accountability procedures Database Marketing is Expensive!  Requires a tremendous investment in information gathering about individual customers and prospects.  Requires integrating individual customer information from a variety of sources. to be more in control…We’re going from one-dimensional.).  Businesses with high churn.  Companies that are in the best position to invest in CRM.  Requires people skilled at data mining.5.

P&G The Evolution of Marketing Transactional Marketing Time frame 1950s View of value The company offering in an exchange View of market Place where value is exchanged Relationship Marketing 1980s The customer relationship in the long run Market is where various offerings appear Collaborative Marketing Beyond 2000 Co-created experiences Role of customer Role of firm Nature of customer interaction Market is a forum where value is cocreated through dialogue Passive buyers Portfolio of Prosumersto be targeted relationships to active with offerings be cultivated participants in value cocreation Define and Attract.three-dimensional marketing – that offers better solutions…more delightful experiences… and the opportunity for on-going relationships. Engage create value for develop and customers in consumers retain defining and profitable co-creating customers unique value Survey Observe Active dialogue customers to customers and with customers elicit needs and learn and solicit feedback adaptively communities Design the Marketing From the Customer-Back . CEO. Alan Lafley.

and delivery processes.  Awareness (A1)  Acceptability (A2)  Affordability (A3)  Accessibility (A4)  Market value potential = A1 x A2 x A3 x A4  If A1=100%. not 4P functions. creation.  The 4As are buyer oriented. Then MV=25% (Courtesy:Jagdish Sheth) . Marketing must be run as a set of value finding. A3=50%. The four Ps are seller oriented. A4=50%. A2=100%.

Develop Metrics and ROI Measurement Products Brands Channels Customer Markets Segments Relative Brand product awareness quality Perceived Brand esteem product quality Percentage Brand loyalty of sales from new products Product Brand profitability profitability Channel Customer Market penetration satisfaction penetration Channel trust Channel efficiency Market share in each channel Channel profitabilit y Average Market transaction share size Customer Sales complaints growth Customer Market acquisition profitability costs Customer retention rate Customer profitabilit y Source: Kumar .


As competition heats up in Indian retail, major retailers are attracting more customers through quirky "event packages"/attractions or price promotions. Customers are encouraged to celebrate a special occasion with a celebrity as well as to spend money in the stores. It comprises specifications for a marketing operation that is limited in time and that is meant to draw increased attention to the enterprise (the retail outlet or the retail chain) in its sales market or the influencing trading area. As a rule, it has a sales-promoting effect. Setting objectives The launch of promotional activity for a store requires creative handling of one of the above ways of handling retail promotions. The most important factor to be considered for retail promotion is the objective for promotion. If Food World advertises that it has got the IR 8/20 rice at one of the lowest prices in the town, the objective is to use the destination category of the retail grocery store to attract greater store traffic. Promotions that increase footfalls and therefore improve store traffic may result in a competing store’s loyal customers to visit and even try nonpromoted merchandise. At the same time it would increase store inter-visit time for the regular loyal store customers. Retail promotion objectives can be store specific or product specific but the intended result is something that has to be explicitly borne in mind while formulating a promotion plan. There is a need to review the same after the promotion. Shopper reaction The consumer perspective of retail promotion is also crucial in formulating promotions. Purchase event feedback is one of the crucial elements of the understanding of retail promotion. This concept means monitoring if the promotion enhances or detracts consumers from future brand purchase probabilities compared to non-promotion. In order to understand this concept, one should look at a key theory in psychology as applied to consumer behavior, the self-perception theory. Self-perception theory as attributed to the deal prone consumer, results in questioning by the consumer - 'Did I buy the product because of brand preference/ promotion?' The answer to this question by a majority of the consumers of your store determines the nature of promotion to be undertaken by the store. If for example Shoppers Stop has through its customer relationship management software a clear idea of the nature of customers especially on deal prone-ness, it can decide what to emphasize in its promotion. The decision to be taken is whether

it is the store/brand or the promotion/deal that would act as the primary reinforcement. The nature of promotion needs to adapt according to the understanding of consumer behaviour. In this effort, we would also be able to clearly track brand loyal as well as store loyal consumers.

behavioral effects of the consumer, when a promotion is on are reflected in the nature of buying and therefore implications for the retail outlet. Category purchase timing, brand choice, and purchase quantity are the three major dimensions that one has to track in order to see the effect of sales promotion. Category purchase timing refers to the decision by the consumer to alter the regular purchase cycle for the product. If Atta is bought once in a fortnight, does she buy Atta earlier because of promotion? Brand choice refers to the decision on being brand loyal inspite of a promotion on a comparable competitive substitute brand. Would a consumer change from Captain Cook to Tata salt because of promotion? Purchase quantity is a very important variable to monitor as it is directly related to the nature of consumption. This common effect of a promotion on a product or a brand is reflected in stockpiling. For example, buying a five-litre edible oil jar cheaper and storing the same for longer future use. Lets take the example of a specialty coffee outlet selling different brands of coffee. If we decompose the effect of sales promotion we may look, at lets say, contribution of the three dimensions in the following manner - brand switching (84 percent), purchase acceleration (14 percent), and stockpiling (2 percent). This decomposition may be used to compare the effectiveness of alternative promotional offerings and to determine the most suitable and effective promotion. Putting together the facts that sales promotions generate dramatic immediate sales increases and that brand switching accounts for a large percentage of this increase, we can conclude that sales promotions are strongly associated with brand switching. If promotion increases a brand's sales by 100 units, how many units come from other brands and how many units are due to category expansion, i.e. shifts in the timing and/or amounts of purchase. If three-fourths of the sales effect were due to other brands, retailers might conclude that promotional activities provide little benefit. That is, unless promoted items provide higher margins, the vast majority of the effect would simply be a reallocation of expenditures by households across items within a category. Manufacturers/national brand marketers might conclude that most of the effect increases competition between brands and would not support promotions. Therefore, stockpiling and/or consumption increases appear to be the dominant sources to look for sales effects due to temporary price cuts. Cannibalization of

future sales through stockpiling is an important consideration in the assessment of the effectiveness of sales promotions. In some product categories like beverages (Eg. soft drinks) a substantial component of the primary demand increase may represent enhanced consumption. One may drink more of Coke/Pepsi because of a price cut. But in other categories (like house cleaning liquids), households are unlikely to accelerate consumption. In these cases the effect of sales promotion may just result in changed inventory management by households. Price/brand promotion It has been proved by extensive research in the West that price promotions are detrimental whereas non-price promotions are neutral/positive. Price promotion of national brands erodes the loyalty of the national brands & therefore helps the private labels/ store labels to gain market share. While looking at it from store's viewpoint, the chain of causation could be - Price promotion would lead to loss of national brand loyalty, which would trigger greater trade allowances and therefore increase in store profit. However, the question of store image and loyalty are important. Discount stores like Margin Free shop could afford to continuously involve in price promotion whereas others cannot. Reaction from competitors is another aspect that should be guarded against. The conflict of promotion of store brands compared to the national brands would become a matter of concern in the future in India. Many retailers see the benefits of developing store loyalty as it can easily extend to store brands. There are very few store brands in India competing with large brands. However, for store brands, studies in the US have found that non-price promotions have a more favorable long term effect on store profit compared to price promotion. IT IN Promotions Several IT companies in the west have comprehensive solutions that increase productivity and sales from promotions. They allow supply chain participants to communicate more effectively throughout the various stages in the design, implementation and evaluation of retail promotions. This has been triggered by the significance of retail promotion. It is estimated that 60% of all retail activities are based around promotions and up to 40% of these promotions fail to meet expectations. It is estimated that the industry is losing Euro80 billion a year in retail promotions alone in Europe. Inefficiencies in available management information, monitoring and auditing of promotions result in:
• •

time losses i.e. communication delays between suppliers and retailers communication errors in planning and execution among the various departments

by the very nature of business. However. Therefore. A good mix of promotions to serve both the objectives and a continuous effort to test promotions through control stores & monitor store profitability will help in sustaining any retail 30 percent. retail promotion has both short term as well as long term implications.traditionally by telephone. market share. chain share. . In addition. These would be measures that would provide the feedback on the right promotions to continue with in the future. Thus. substantially unique promotion campaign that differentiates and positions your outlet. A good understanding of the systems and an efficient IT backbone would eliminate the inefficiencies involved in the planning. and supplier involved in any single promotion . retail promotion in practice is akin to sales promotion by marketers. retailers need to create excitement around outlets in order sustain. or e-mail . Cost effective non price promotions.e.• • real costs at the end of the promotion i. the lack of clear cost identification lack of evaluation & management information A 'live' access through an internet enabled retail promotion software and communication between all those involved in the promotion cycle can greatly enhance efficiency of the promotion while dealing with a large number of formats & stores. fax. implementation. promotions specialist and the individual store manager are involved. it can dramatically reduce current industry booking costs by as much as 60 percent through efficient document generation and promotion auditing. It can reduce the number of communications between the brand sponsor. coordination of the complex transactions using a good information technology backbone corporate strategy oriented objectives and a constant eye on consumer feedback are the ingredients of a successful recipe called retail promotion. traffic and profit need to be compared as measures with base line sales/traffic in control stores in order to study the effects on brand share. In a large retail chain. and evaluation of promotions. a number of individuals like the brand/category manager. Sales. retailer.

In addition to this. Poddar said that amongst the masses. the influx of low priced cigarettes smuggled from neighbouring countries was also eating into our sales. It is the price of cigarettes per stick that influences the purchase. chairman.5 per cent in the corresponding period last year. with a • • • • • • .5 per cent.5 per cent from 10. The company has managed a marginal improvement in its market share. the increase in terms of volume has been by 15. In addition to this. The first five months of 2002-03 have seen the performance of Godfrey Phillips improving. brand loyalty is low. Godfrey Phillips. `We face immense competition from the cheap smuggled brands. taking it up to 11. The profit after tax (PAT) of the company has grown by 10 per cent. Godfrey Phillips. chief executive. Our sales took a severe hit because of this.Godfrey Phillips to increase visibility • Riding on the back of new and rigourous marketing strategies and a focus on customer services in 2001-02.` explained Poddar. according to Ram Poddar. `The masses prefer to buy single units of cigarettes and this hike in excise duty coupled with the luxury tax and entry tax have all led to an increase in the per stick cost of cigarettes. `From April 2002 to August 2002. Godfrey Phillips India is expecting its cigarette business to grow at a rate of 7-8 per cent in 2002-03. was the sharp hike of 15 per cent in the excise duty levied on cigarettes that led to a corresponding increase in the prices of several brands. our prime competitor ITC. sales of Godfrey Phillips have increased. While the volume of sales has gone up by 18 per cent. The prime reason for a drastic decline in sales of cigarettes in 2001-02. Explaining the cigarette market in India. told myiris. `The cigarette industry is growing at five per cent per annum and we are expecting Godfrey Phillips to grow much faster than this.` Ram Poddar. Godfrey Phillips is hoping to sustain this level of growth in sales for the remaining part of 2002-03. while answering shareholders` queries at the company`s sixty-sixth annual general meeting held in Mumbai on Tuesday.` said RA Shah.

Shah told shareholders that there has been a global glut in manufacturing capacities. The company has also been in the midst of a litigation with the government of Assam over excise duty. Godfrey Phillips had been sourcing manufactured cigarettes from Assam since at that time there was no excise levied by the state government. enhance marketing efforts and carry out detailed marketing research in the company. Godfrey Phillips has paid a dividend of 185 per cent. According to Shah. `Most manufacturers have more capacity than the market demand. It sees a tremendous market for cigarettes in India since the population consuming tobacco is substantial and most of them do not consume tobacco in the form of cigarettes. the government withdrew this facility and now. Godfrey Phillips no longer has any third party manufacturing arrangements tough it does do some outsourcing from Hilton Tobacco. Godfrey Phillips is also aiming to increase visibility of its existing range of products. Explaining the global scene in the cigarette share of nearly 90 per cent. • The company is not planning any new product launches though it does intend to introduce other forms of tobacco like cigars.` informed Shah. `We are looking at gradually sustaining and then increasing the dividend rather than giving a bonus to the shareholders. more of them will switch over to cigarettes.` explained Poddar. Hyderabad. the main reason for the high professional expenses was the engaging of several experts to improve efficiency.` explained Shah. which has been threatening to eat into our market share. The company has stopped outsourcing from Assam and its production is now • • • • • • • .` said Shah. says the annual report. which are a more hygienic alternative to tobacco or bidis. have a wider distribution network and forge stronger relationships with its trade partners. `But. has been resorting to predatory pricing. `As the spending capacity increases. Godfrey Phillips incurred substantial professional and legal expenses in 2001-02. The management has denied having any plans of issuing bonus shares. ten months after we began sourcing manufactured goods (cigarettes) from Assam. Rs 26 crore worth excise duty has now become due to Godfrey Phillips.` said Poddar. Exports of the company have gone up to Rs 40 crore from Rs 15 crore in the previous year.

The inter-corporate deposits of Godfrey Phillips are fetching it 16 per cent interest.5 per cent. • The tea business of Godfrey Philips has been declining steadily and the management has said that this business is stagnant and in fact declining.carried out at its two factories in Ghaziabad and Mumbai.` added Shah. The company has justified its holdings in mutual funds saying that it has been holding them at historical costs and they are fetching returns of 9. • . `The two plants manufacture high-quality low-cost cigarettes.

.Saatchi & Saatchi Experience in India: Every multinational product and service went with the same market share to China — zero per cent — and established brands thereafter. it means the love for it will never fade with time. The consumers have become morediscerning. a Walkman or a Coke are Lovemarks for the same reasons. clients would have squirmed at the thought of selling products with love but today even a Toyota head wants his dealers to be the most loved dealer in their respective areas. China is still new to terms like democracy. India is our second-best agency in the region after China and we see a lot of good work coming from here. Lovemarks speaks of strong emotional connections that inspire brand loyalty among consumers. A Lovemarks is love beyond reason and above loyalty. Is emotion the only key ingredient for the success of a brand? A brand has to command respect and then it would transfer to love that is the strongest emotion one can have. with proliferation of brands. Today. When we say a brand is a Lovemarks. India has had a history of multinationals. Lovemarks belong to the people and not the company. A Harley Davidson. Five years ago. how do you retain brand loyalty? Brands would have difficulty maintaining loyalty. the decision maker is not always the male and the Indian consumer adapts things from the west to suit his liking and is not merely aping. not Lovemarks. brands and advertising culture. public opinion and emotions.

With this explosion in popularity. even interacting with their favorite reality TV shows. subscribers are doing more with their wireless phones than ever before. From ringtones to photo messaging. More importantly. They also provide marketers with the opportunity to deliver a precise message. as recipients forward them to friends and colleagues. screensavers and logos have become in personalizing one's phone. they identify the individual. There is no intermediation: no press. It's no surprise how popular ring tones.Creating Brand Loyalty with Mobile Marketing: Now is the time to use the phone as a marketing channel for brand differentiation. gas station. • . Think of it as mobile marketing. This paragraph talks about the power and pitfalls of a successful campaign Make Mobile Marketing Work. ATMs and more. Offers like this facilitate viral marketing that is based on word-of-mouth. They are generally not things that people like to lend out. not even to family. Wireless subscribers have finally caught the mobile messaging bug. As new avenues of data services emerge on phones. no distributor and no retailer between the brand and its consumers. European operator Orange partnered with local movie chains in the UK to offer 2for-1 theatre tickets on Orange Wednesdays. targeting an audience like never before. It's an excellent example of a direct marketing offer that provides an incentive or reward. to playing games. phone numbers are like an ID card. Mobile phones are personal items. spike message traffic for operators and increase sales for content owners. A campaign like this also encourages subscribers to rely on their mobile browser to find the movie theater and related venues like food. now is the time to use the phone as a marketing channel for brand differentiation. Think of it as mobile marketing. The opportunity is great. Wireless marketing is: • Personal. Direct. What the marketer says is what the user gets. It is person-to-person or a brand-to-person communication. but it is important to understand the contexts where mobile marketing performs best. operators. media companies and mobile marketing agencies need to collaborate to figure out how to best take advantage of this new channel and launch successful mobile marketing campaigns.

A message is sent and a user receives it. Wireless allows brands to deliver a persuasive personal message instead of an advertisement designed to appeal to a large audience. of course). Measurable. Wireless provides you with a means to monitor your campaign with extreme precision. it's available. marketing is more than advertising. Operators have the ability to know when and how a message is delivered. but conducting untargeted marketing is very expensive. but tend to forget. It can vary based on the number of messages sent and the traffic on the network. You can even engage them in a relationship with your brand through direct and personal interaction. SMS has no pictures and limited length: 160 characters. NOT for complex offers. Two-way. As we learned in school. NOT a mass marketing tool. The best campaigns are integrated marketing efforts that reach customers through many points of contact -. The secret to success in wireless marketing is when it's integrated with other media. wireless marketing allows you to reach a mass audience. wireless allows a two-way communication: you can talk and you can listen to your customers. Reliable. NOT only about wireless advertising.• Immediate. It does increase the overall cost of a campaign because you also pay for the communication from the user's mobile phone back to the system -. More importantly. Like the Internet. even seconds. That's the technological limit but it is also the limit of your • • • • • • • . but making contact with the target audience is usually a question of minutes. Technically speaking. You can take advantage of this speed by delivering the right message at the right time (to the right person. Align your mobile marketing efforts with traditional channels to get the best results. Wireless is not only a means to deliver a promotional message.not just via the phone. NOT a stand-alone method. it's a channel that also allows brands to establish a dialogue with its prospects and deliver a service to its customers. you are ignoring the advantages of this personal communication channel. and you are therefore able to immediately evaluate and adapt your messages and marketing strategies. You can quickly measure the response rate and the response time.but if this level of awareness is required.

. It's a lesson we learned the hard way with the Internet. An unsolicited commercial message could forever harm the relationship between your brand and your audience. Use wireless only to contact people who have given you permission. but it's better to sound obvious and repeat it: wireless. Learn to think short. is quick and silent and can be very effective in capturing hot leads and initiating a dialogue with (shy) consumers who don't like to give away personal information to sales representatives. People are sensitive and they want their privacy protected. If the message is longer than 160 characters. Yop had not previously used the SMS format for a romotion. is not the marketers' panacea. In 2003. but to also create a database of Yop consumers who could be actively targeted to in the future. using the mobile phone for marketing still requires discipline and respect. • NOT a no man's land. using SMS. Yoplait Dairy Crest’s first on-pack SMS promotion played a crucial role in strengthening brand loyalty as well as creating a valuable database of opt-in consumers for future mobile marketing campaigns. which can help measure the effectiveness of other forms of advertising. with the SMS infrastructure handled by mobile marketing services company Sponge and Netsize." Eg:Yop goes mobile to increase brand loyalty Running across its range of ‘Yop’ yogurt drinks. analyst at Gartner G2: "Wireless communication.the brand chose to launch an on-pack SMS promotion to ‘win a pair of trainers for life‘. The growth of SMS as a new marketing channel has been widely accepted as a highly interactive and effective tool which complements existing media. like any other media.audience's attention span. You don't want to be accused of sending SPIT (SPam over Internet Telephony). Yop began looking for an easily executable and cost effective way to uplift sales of its yogurt-based drinks by ten per cent over a six-month period. SMS provides immediate and direct feedback from consumers. the message will be split in two parts which means people will be less likely to read it and they may also miss the point.Marketing agency Attention created the campaign. Based not just on a need to increase penetration of the product amongst target audiences. As a response mechanism. Heed the words of Daren Siddall. When all is said and done. And always opt for pull over push communication. but believed that the medium would appeal to its young target market.

Data collected over the period showed that the highest number of entries (41%) came from strawberry 330g bottles. and ran across 2. The campaign allowed people entering the on-pack competition to opt in to receive further information and offers from Yop. with fewest (11%) from raspberry 750g.The promotion was used as a key mechanism to develop a relevant and motivating value-added campaign. increasing brand awareness and encouraging loyalty. Overall redemption figures exceeded targets by 53%. . via SMS. a unique code found on the label of the drink. SMS campaigns have response rates that outperform most other media. UK marketing manager at mobile business and entertainment provider Netsize. The prizes included free bottles of Yop and gift vouchers for JD Sports ranging in value from £25 . paper-based option was also provided for people without access to a mobile. Anuj Khanna. which managed the messaging network and billing infrastructure. companies can really understand consumer patterns of product use and personal preferences. with one overall winner receiving a pair of trainers for life.The execution invited consumers to submit. and with mobile marketing.£100. Entrants were immediately sent a text back informing them whether or not they’d been successful.5 million bottles of the drink from July until December 2003. retaining existing ones. The chance to enter and opt in via a traditional. comments: “Brands are increasingly turning to SMS as a unique and proven method of attracting new customers.

What’s a Brand? .

Why is Brand Important? • Branding = An External Perception of Alignment within the Institution (and an internal one) – For the Best Brands/Companies. … about a organization’s personality. Types of Differentiating Beliefs: • Functional Beliefs (Dominos) – What does the brand do? • Social Beliefs (BMW) – Who else “belongs” to this brand? • Private Beliefs (Viagra) – How does the brand affect my private self? . Alumni. customer experience – Greater control over actions – Greater relevance in measures and performance – Greater connection with “customers” • Greater recognition and “buyability” for “customers” (Students. product offering. Employees. and operational strength. … which translate to real results. … which are relevant to the target market (both external and internal) … which are delivered through many communications and experience channels. … which operate in both rational and emotional ways. marketing. this is “True” • For profits: higher company Value (6-7% higher stock value for public companies) • Strategic alignment of operations. Benefactors) What’s a Brand? A Brand is a Set of Beliefs.

” fs ie el B Brand Member Experience Cycle: ns tio Ac Results . but experiences cement them.• Spiritual (Subway) – For what cause does the brand fight? (Mix of All Four is Best: Apple Computer) Brand Membership Brand Membership™ Defined People who believe. resulting in: • High Switching Costs • Increase Barriers to Competitors • Increase Relationship Lifetime • Reduced Price Comparisons Loy alty Re pe rie pe Ex e nc e ag Im at P ur c has e Tria l Intr odu … the best brands are focused on beliefs ctio n Anatomy of Brand Experience • Awareness campaigns can introduce beliefs.

• Use the “Anatomy” as a guide for building beliefs and measuring results put another way… • What Experiences Will Build Beliefs? – What are the desired Beliefs? – How would an adoption of those beliefs be measured against the bottom line? – What ideas/concepts do we have for experiences that can build these beliefs. • Identify Measures that are bottom-line focused (short. mid. long) • Gauge Brand Member relevance for identified experiences • Design and deploy images and experiences which are focused on the required beliefs. and what do our most loyal customers (current Brand Members) think of those ideas? – Execute (and measure) Value to the Brand Low High Customer Value .Two Birds: Focus on these initiatives High Building Brand Membership™ • Discover differentiated Brand Member Beliefs across all four belief areas.

a Company is formed with the aim of delivering products and services to the customer and a brand is the promise of a company to deliver specific set of features. trademark. and to diffentiatiate those goods or services from those of the competitors. cannot be conveyed but a symbol.Whenever we see a tick . and protects both the customer and the producer from the competitors who would attempt to provide products that appear to be identical. a brand is something that bought by a customer. It is the instrument by which the products move.. A producty can be quickly outdated. Corporate Branding 5. . It is the symbol of a company's promise.Samuel Taylor Coleridge As the above visionaries dreamt of. What is brand creation? 3. A product can be copied by the competitor.William Shakespeare Shakespeare was wrong. . or package design) intended to identify the goods or services of either one seller or a group of sellers. Social Branding 7. a brand is unique. 1. The Role of Brands 2.The Role of Brands What's in a name? That which we call a rose by any other name would smell as sweet. Steps in brand creation 4. A rose by any other name would not smell as sweet …. A brand is a distinguishing name and / or symbol (such as a logo. Conclusion A product is something that is made in a factory. A brand thus signals to the customer the source of the product.Al Ries and Jack Trout An idea. in the highest sense of that word. Which is why the single most important decision in the marketing of perfume is the name. benefits consistently to buyers. Case study : LG Electronics 6. . It is the handle that allows the customer to choose. a successful brand is timeless The brand is the most powerful asset of a company.

building strong brands is becoming more and more challenging. User: Barbie's user would be a small kid and not a teenager or an old man. Culture: Mercedes represents German culture: organized and efficient.which includes the product. the product's name and identity . and the fragmentation of advertising and market segments are just a sample of the pressures being faced by companies in today's highly competitive environment. increased competition through product introductions and store brands. In today's environment. the package. To quote some hard facts over 21. which is ready to eat. yet history tells us that better than 90% of them disappeared from the shelf a year later. Brand creation does not end at forming a brand but at forming an identity of the products. which reminds the user not only about the product but also the manufacturer. caring and lovable man. The likelihood for success can be greatly enhanced if one focuses on certain critical issues. . Values: Wipro's values are to deliver best products and services by applying thought. This is how a symbol reminds us of the brand when it becomes universal. In today's era when more and more new companies are coming up with new and innovative products it is evident that those with strong brands will survive through thick and thin of thus competition. Benefits: McDonalds gives us healthy food. Personality: Raymond's fabrics project a gentle. brand awareness and brand loyalty . but not insurmountable task. Increased pressures to compete on price. • • • What is brand creation? Brand creation is the birth of a strong brand. Why such a high failure rate and why has this been a historical trend? The development of a successful brand .is a challenging.mark we invariably think of Nike and an 'M' with curved top reminds us of the delicious burgers served at McDonald's.000 new brands were introduced worldwide in 1995 alone. A brand conveys: • • • Attributes: McDonalds reminds us of pure and hygienic food.

This phenomena has shifted the focus from what companies offer in the form of products to what they think. It provides an opportunity to attract a loyal and profitable set of customers. Likewise. Finally.Why brand creation? Throughout the 1980's and 90's. creation of a corporate brand is an important idea whose time has come. The following are the advantages of branding to a seller: • Branding makes it easier for the seller to process orders and track down problems. retain the loyal following of the investment community. there has been a growing corporate emphasis on increasing shareholder value (i. leading faithful customers to pay a premium over competitive products. seeking employment. and keep shareholders happy? One solution is to create and establish the brand. Typical headlinegrabbing stories of these decades have included waves of layoffs. Clear brand definition and proper execution and implementation of that definition can lead to success and longevity in the market. A strong brand acts as a promise. making the stock price rise). After all how different can 20 brands of toothpaste or 15 brands of soap be. do and support as companies. the only concern the CEO is expected to have is how to keep the company growing. you will find a plethora of brands that are not very different from one another. Hence. This serves to build consumer and investor confidence and loyalty to the company. strong markets help build a corporate image and makes launch of new products easier. • • • • Corporate branding If you look into the Indian market place today. providing finance etc. Company credentials have become the main reason for buying products. Today branding is such a strong force that anything from salt to lemon juice and water is branded.e. corporate restructuring and an emphasis on operating efficiencies. In today's shortsighted environment. the stocks of highly reputable companies trade at premiums to others in their respective industries. It helps the seller to segment markets. Brand name and trademark provides legal protection of unique product features. .

It provides the customer with a high level of comfort and choosing easier. • The identifier It acts as a benchmark to measure companies products as well as behavior. The retailer not only welcomes the companies’ products but also goes one step further and recommends them top the customer. • • Diversification – the simplifier The corporate brand seeks to project a consolidated corporate identity for the entire group of companies rather than projecting individual identities.the confidence booster In Indian markets retailer plays an important role and time and money invested by him is directly related to his confidence in the company. Corporate brand is made up of core values and core purpose.The corporate brand is not just what you make or have to say. it is ‘who you are". • Everything the organization does must be an affirmation of the corporate brand. The new consumer The corporate brand simplifies the consumers decision making process. It provides focus and sense of direction with the ultimate objective of maximizing the companies competitive advantage and building a long lasting relationship with its audience. It is what the company stands for and why it exists. Corporate brand must strive to be distinctive and competitive. Anatomy of the corporate brand: • It must provide values to the customer and to the company also in the form of profitable ways of doing business. . Need for corporate brand: • Retail strength.

Most other companies took 2 years for the nationwide launch. The perception of LG brand was miles below the Japanese giants like Sony & national Panasonic.There were street smart players like BPL. • Fast mover Being a 100% subsidiary LG moved at a fast pace. This indicates the company’s commitment towards introducing product with latest of the technology. In 1997 LG the Korean chaebol set up a 100% subsidiary in India. Within a period of 5 months it was able to complete a nationwide launch. Currently 20% of their turnover .Case Study of LG Electronics In this case study we shall see how LG Electronics effectively applied the various rules of brand creation to create a company brand and became India’s second largest consumer electronics brand only next to BPL with Videocon at the third spot. How did LG go about doing this? • R & D investments LG has put up an application before the Foreign investment board to clear investments worth $100m over the earlier limit of $296m. Videocon who could give the Koreans a run for money. • Geographic scope Most other companies had ignored the eastern India however LG continued their distribution efforts in this region.

LG offered products that gave value for money. • In semi automatic washing machine instead of launching a 4. The most imaginative of these was in field of television. LG have launched the stripped down version of the existing range called Sampoorna. These two features caused a spurt in sales by 15%. Consumer behavior LG carried out the customer value analysis to study its competitors' vis-à-vis itself. Today almost 20% of its volumes comes from this range. After a careful and extensive study. multilingual screen display (the menu appears on the screen in five Indian languages) • Then just before the world cup last year LG loaded a cricket game in its television (it was developed by LG’s software arm in Bangalore. • • Company orientation The company is oriented towards the consumer need. LG launched 6 kg machine which was .comes from the east • Differentiation In an environment where their consumer was being given various exchange offers. They realized that the Indian customer was not price but value conscious. For the rural markets.5 kg machine that dominated the entire market. • Innovation Innovative features are constantly added to their models. The washing machine was introduced with the ‘chaos punch plus three technology’. The televisions were launched with the Golden eye technology & the refrigerator with the preserve nutrition technology which has been patented by LG. LG differentiated their products on the basis of technology.

Now LG is comfortably in charge of 23% market share. • Advertising LG used the world cup cricket as a means of advertising. • Future Orientation Against all advice LG went into the microwave market . Social Branding Every nation in the world is experiencing social problems that its citizens & government are attempting to solve. by groups of people working together. Solving social problems involves social change – changing the way individuals & groups lead their lives by transforming adverse or harmful practices into productive ones. Currently it is second to only Carrier. The dominant idea is that social and individual life can be shaped. changed and improved by rational action-by individuals. . changing attitudes and values in communities and creating new technologies that uher in desired changes and elevate the quality of people’s life. Indianizing its advertisements is one of the themes used by them. It sponsored a substantial bill of the world cup. LG for the first time tapped the retail segment in air conditioners when the norm was to sell to the institutional buyers.more convenient for large Indian households. Thus LG was successful in creating a corporate brand LG Electronics.The market which was then only 20000 per annum today has expanded to 100000. by the government or by a combination of citizen and governmental action.

which started in 1952. advantages to . At independence. According to the (1991) census report. is the oldest in Asia. it had risen to 846 million and by now. India has a population of 846. in 1947. India has 2.30 million. Social – Change Management Technology Question The task What is the fit between the idea and what Defining the fit (Understanding the needs the target-adopter group is looking for of the nation. the country's population has gone up by 150 million. Since the last census (1981). Environment Scanning: This involves understanding the current environment and the needs of the nation. The Indian family planning programme is a social idea which is marketed as a brand. the growth rate of population declined to 2. but supports 16% of the global population. For the first time. In 1991. hindrances. But the latest census figures have also brought some hope and indicated that efforts being made in the field of family welfare have not gone entirely waste.22% (in 1981).4% of the world's land.14% from 2. it is about 1 billion. Its basic aim is to change the attitude of the people towards family planning. India's population was 350 million.Case study for social branding India's national family planning programme.

hospitals etc. • • • • • .the target adopters like per capita income increase) What makes a good fit Designing the fit (Use of existing infrastructure like clinics. Couples who would like to limit their family size or delay the next birth. Family Planning . newspapers. female: 36%).30 % Half of all women with less than three children expressed a desire to wait for two years before having their next child. The inter-state variation of unmet need is from 10% . and help from the NGOs and voluntary organisations) Delivering the fit (Advertising on television. The desire for no more children rises rapidly after women have had about two children. the low status of women.The Unmet Need • About one in five married women who would like to use family planning. but do not use contraception. And yet. and socio-cultural factors such as son preference and early marriage of girls. does not use it. clinics) Defending the fit (Budgetary allocations. Sterilisation predominates (over 30%). practice of modern birth spacing methods is less than 6% of all users. high infant mortality (ranging from 15 to 112 per 1000 live births). rural: 33%). Non-government sources provide the majority of temporary methods while government is the major source for sterilisation. radio. positive attitude of the successive governments) How do I bring this fit to my target adopter group How do I sustain or change the fit to defend it against a premature demise The Demographic Challenge Barriers to family planning include low literacy (male: 64%. Married Women Wanting No More Children by Number of Living Children Less than half (41%) of all couples are currently practicing family planning (urban: 45%.

0 9.2 21.0 59.0 60.0 Major Strategic Plan Thrusts • Adopt a holistic approach based on the inter-relatedness of family planning as a human right.0 64.0 44. urban and rural. use would rise to 60 per cent.0 9. medical and managerial aspects of family planning programmes. Be a major training resource for educational.1 89.0 60. Goals to be achieved by 2000 A. Improve the quality and coverage of services based on user perspectives.03 29. sustainable development and ecological balance. Develop a closer partnership with voluntary organisations.D Current Level of achievement 2.e. Spearhead a people's movement for family planning by creating and assisting a National Network of NGOs. family planning and reduction of population growth. i. Devise and extend tailor-made package-programmes for raising women's status. • • • • • . there would be 30 million more couples practising family planning. male responsibility and youth awareness in measures relevant to human sexuality.0 National Goals Population Growth Rate (%) Crude birth rate (births / 1000 population) Crude death rate (deaths / 1000 population) Effective couple protection rate (%) Infant mortality rate (infant deaths /1000 live births) Life expectancy at birth (years) 1.• If all couples who wanted to delay or limit childbearing used family planning.

Training teachers and educators of non-formal and other youth serving institutions Organising special projects for underprivileged young men and women. family life and sex education programmes to develop responsible attitudes among youth Conducting age-appropriate short and long-term courses for young people in the formal and non-formal sectors. to share experiences and generate. Publications and audio-visual materials are developed in-house to supplement and reinforce the family planning activities. combining family life and sexuality education with income-generating skills. Social marketing through Branch/Project outlets Organising conferences. seminars. Training health professionals including indigenous medical practitioners. intensify and widen programme support or involvement among elected people's representatives and leadership groups. • • • • • • • • Stimulating community participation in reproductive health and family planning through various developmental activities. NGOs etc. urban and rural volunteers and opinion leaders etc. to extend family planning education and services. field workers. adult literacy classes. Promoting population. • Community action includes: .• Increase the effective participation of volunteers and staff at all levels and strengthen the complementarity of their roles. .Educational activities including running balwadis. Providing information and advice to help couples to plan the spacing and number of their children • Apart from the above mentioned activities the following are the concentrated efforts organised by the government of India • Several million persons are reached annually through the co-ordinated use of group and mass approaches and interpersonal contacts. FP/ health and other professionals. schools.

Canalisation : Commercial advertising is effective because it is more attractive and catches the imagination of the target audience. For example. the main opposition for the family planning programme was the belief that more the hands the better it is. group discussions on primary healthcare. . Here.The likelihood of the individual being receptive to the new information increases with the information’s compatibility with the audience’s prior attitude. in case of LG . reproductive and sexual health. . attitude towards family planning..People will read different things into the information they receive depending on their beliefs and values. If few people are interested.Resource mobilisation.Economic activities including skills training for income-generation.The likelihood of an individual responding to a new information increases with the audiences interest or involvement in the issue.Activities for improving girl's/women's status. .Family planning activities including talks. . Counselling for FP and MCH. Conclusion Conditions associated with the successful campaign Monopolization : The campaign enjoyed a monopoly in the media as there were no messages that were contrary to the campaign’s objectives.Developing community facilities. . few will respond . . • Conducting research and evaluation for feedback and development of innovative approaches and projects. Hindrances in the path of the success of the creation of social family planning campaign brand .There is something about the uninformed people that makes them hard to reach no matter what the level or nature of the information . the idea is to change the behaviour and hence. For example.Community and social welfare services. and operating contraceptive distribution outlets.

the FPP moved to a decision on an effective brand name that would reinforce product positioning. The govt-supplied condoms already carried the name "Nirodh" on the individual pieces. The Advertising Programme Close supervision began with the first advertising decision: what to say (the ad message) and how to say the message (the ad execution). The attitudes and practices of wives were the most significant marketing factors in motivating men to use condoms. These findings led to the positioning concept: "The use of the condoms is what wives expect of the husbands. and husbands owe it to their wives to use them. Brand positioning In designing the programme the government assessed the target-adopter segment’s contraceptive needs. The symbol of inverted triangle and the punch line "Hum do. selling and distribution. These models are • • • • "Learn-feel-do" adoption "Do-feel-learn" adoption "Learn-do-feel" adoption "Multipath" adoption . The Adoption processes The government identified four different models of how target adopters can be moved to the final decision to adopt the idea of family planning. advertising. promotion and point-of-purchase service delivery. pricing. branding. particularly its acceptance of the condom. The ad message already was determined by the choice of a positioning concept. The family planning programme planned its social marketing mix to include product positioning.the aim was to attract people towards it’s brand and not to convince people to watch television for entertainment. packaging. hamare do" did catch the people’s imagination. Supplementation : Social campaigns work best when mass media oriented communication is supplemented by face to face communication." The Branding program With the adoption of the positioning concept.

professionals are the primary distribution channels. We have seen the need of well-established brands and how important they are in the present times. Lets look at the process by which a brand is created. foreign publications. Therefore. which is headed towards fulfillment of all . the media are the prime channels for marketing and distributing intangible social brands. Brand creation is not just naming or symbolically tagging a product but it goes much beyond this. Thus Government of India was successful in creating a social brand for family planning which helped them in achieving what they have. outdoor advertising (billboards. magazines (local and national). illuminated posters).Time horizon Distributing the social brand: Mass communication media has been engaged in the "message distribution" or "message delivery". transit advertising (buses. radio. It is birth of a brand. cinema. newspapers (Local and national). Professionals In social campaigns to persuade people to adopt family planning. trade journals. The different forms of media used by FPP were Television. Doctors and NGOs are the retailers of this product. commuter trains etc.) High quality services that are performed by the professional and the volunteers are likely to be an essential adjunct to the distribution of social product. Volunteers In case of volunteers the retailing is done by motivation. The retailing is done by coercive or legal means or by rewards and benefits.

Well-established companies are now spending crores of rupees to get a new logo that revamps their image and creates a new brand of a company that has a new vision. Videocon. through a meaningful symbol what they were promising to do. This is what precisely happened with Real Value a company that introduced . A top class brand with best features and best services can fall flat on its mouth if customer does not need it. features and it tries to build a relationship with the company or product. Applying thought.e. Such a brand enjoys top of mind recall from its customers and a high level of brand loyalty. No wonder Wipro. Successful launch of a product: Brands are created to serve the customer so it becomes mandatory for a company to first know what the customer wants. Nike is symbolized by a tick mark or something which is always right.35 crore rupees for a new logo. Nike is the best example of how a symbol is best utilized and exploited and its strong association with the products. The most important aspect of a brand's name and symbol is that it silently speaks everything about the company or product. The business card of a Nike employee has a tick on it instead of the company name and still people make out the company where the person is employed just by looking at the tick Many companies have failed to make a mark. the company headed by the richest Indian spent a massive amount of Rs. A successful brand creation calls for a thorough survey of market to find out what features are desired by customer in the product and whether he really wants the product or not. the bright sunflower and an impact punch line. as they could never convince their customers in the shortest way i. Name and symbol as a brand: The name is the first skirmish in the battle for consumer recognition and it is very important to make it a preemptive strike.promises and guaranteeing top class services and products. A coporate punch line is also an attempt to go one step forward and share your vision with other people and this also helps in creation and establishment of a strong brand. Every name and symbol is associated with certain values. Inception of an  name or symbol  successful launch  brand  top of mind Idea or product of product of product recognition recall Above process shows the way in which a true brand is born and becomes deep rooted in minds of the customers. Mahindra and Mahindra and Tata's are a few examples to give.

which plays a major role in differentiating between two companies. . it must ascertain their characteristics. Aggressive advertising coupled with proper distribution will ensure proper availability of the product. He associates the product with a set of assets and qualities and this creates brand equity for the product. Once a company identifies its primary competitors. objectives. likes and dislikes helps to know what the customers want. The consumer now recognizes the product with its name and attributes. A company should thus know where it's customers are. strengths and weaknesses. In case of a long lasting product. But the Indian consumer was not ready for this product because of which the company failed completely in introducing a good product. its future lies in a launch that positions it at the right place and right time. their needs. • Understanding the customers. The extensive market research is a prerequisite for the successful lanch of a brand. and reaction patterns. Brand recognition: A Company has only one chance of impressing a customer through a first class product and so once a customer is satisfied with the product and he goes for a repeat purchase brand recognition results. Identify the major attributes customers' value. specially their strategies. Analysing the competition: Competitors are companies which satisfy the same customer needs. attention should be paid to after sales service. A customer value analysis should be carried out to reveal the company's strengths and weaknesses relative to various competitors. Assess the qualitative importance of the different attributes Assess the company's and competitors' performances on the different customer values against their rated importance Examine how customers in a specific segment rate the company's performance against a specific major competitor on an attribute-by-attribute basis Monitor customer values over time • • The important steps involved are • • • • • After the desired features are incorporated in the product and it is given a name.vaccumisers and fire fighting instruments in India.

how they perceive the brand & the buying process . Summary of brand creation: • • Identify the questions to be answered and problems to be solved Conduct qualitative & quantitative research to understand fully who the customers are. feelings. Brand loyalty: Consumer returns back to your product even after having a choice of many other products in market. relative to alternatives. Successful creation of a brand depends on the following attributes: Brand awareness: Your product enjoys top of the mind recall in that category of products. It is the customer's perception of the overall quality or superiority of a product or service wrt its intended purpose. Perceived quality: There is a reason to buy your product as you have differentiated your product from others.Creation of a strong brand as has been said does not end in launching a brand but ends where its forms an identity of its own. and qualities and also with some tangible benefits like freebies. Creating and maintaining Brand Loyalty • • • • Treat the customers right Stay close to the customer Measure/manage customer satisfaction Provide extras If a company ensures that its brand passes through all above stages successfully then it will be a mother of a successful brand that is born to stay in the mind and heart of the consumer and this is how a product band and a corporate image is created. Brand associations: Your brand is associated with certain emotions.

tag lines) & brand personality Develop a brand strategy & market communications plan to apply the brand definition to all customer relationships Create & execute an integrated marketing communication program Manage the brand continuously & track it through research to grow. brand naming. • • • . brand symbol (graphics.• Define the brand which includes positioning. brand association. maintain & leverage brand equity.

Brand Equity Research .

. 4. 5. A brand must trigger words or associations (features and benefits).e. 2. THEN PRICE IS EVERYTHING AND THE LOW-COST PRODUCER IS THE ONLY WINNER A Strong Brand Improves Demand and Supply On the demand side:  higher price  increased sales volume  lower churn  more brand stretching On the supply side:  greater trade acceptance. YOU ARE A COMMODITY. 3. Amazon). A great brand represents a promise of value (Sony). your performance. lower rejection  lower staff acquisition and retention costs  lower cost of capital  better scale economics through higher volume A Brand Must be More Than a Name 1.. A brand should depict a process (McDonald’s. more favorable supplier terms.Building Brand Equity MARKETING IS THE ART OF BRAND BUILDING IF YOU ARE NOT A BRAND. i. not your marketing communications. The ultimate brand builders are your employees and operations. A great brand triggers emotions (Harley-Davidson).

g.Absolut Vodka) Sponsorships (e.g. Kodak and Olympics) Clubs (e.) User community building (e. not advertising. entertainment Distribution outlets (e. Brands are built by performance.g. the brand is distinct 2. Hallmark’s Museum) Trade shows Traveling exhibits Worldwide web casts of presentations. American Express) High value for the money (e. Cadbury’s theme park.” Tom Parker. Nestle Nestops) Social causes (e.“How do I justify spending millions on creating an image. 1997) THE Y&R MODEL OF BRAND STRENGTH A successful brand has brand vitality and brand stature.. Relevance. Brand vitality consists of: 1. CEO of Clark’s shoes.. etc.. ..g. Marketing Management & Strategy. Nestle’s Casa Buitoni Club) Company visits (e. Haagen-Dazs) Public facilities (e.. the brand is meaningful and personally appropriate.g..g. Tools for Building Brands Advertising (e. buzz created by Ikea. roundtables.g.g... Colonel Saunders) Celebrity spokespersons What Makes a Strong Strong brand = Product Benefits x Distinct Identity x emotional Values (Peter Doyle. Harley-Davidson) Founder’s personality (e. That’s millions my customers have to spend when they buy from us.g.g. Differentiation.

Virgin) 4. Maintain innovation and relevance for the brand. Familiarity. A brand that has high familiarity but low likeability is a troubled brand. Esteem. A brand that has high likeability but low familiarity has high advertising potential. (Gillette. (Apple. the brand is seen to have quality and momentum. Provides superior delivery of desired benefits. 2. Communicate with a consistent voice. (Starbucks. FedEx. The Gap) . Charles Schwab) 3. (BMW. esteem will slip next. 3. Some conclusions: 1. Accenture) 5. and then familiarity will decline. Strategically design and implement a brand hierarchy and portfolio. (Coca-Cola. When a brand’s differentiation and relevance start slipping. the brand is known and understood by many people. 4.Brand stature consists of: 1. 2. Establish credibility and create appropriate brand personality and imagery. Characteristics of Strong Brands 1. A brand with high vitality but low stature has excellent potential. Amazon) 2.

Miller Lite (87) 29. Sprint Long Distance (3) 8. Wal-Mart (33) 26. ETrade. Verizon Long Distance (4) 4. Starbucks (6) 30. Hyatt Hotels (19) 7. Radisson (48) 31. Inter-Continental Hotels (NR) 33. New Balance Athletic Shoe (22) 28. Crew Catalogue (54) from Brand Keys. Skechers (NR) 27. (12) 14. Motorola Mobile Phone (10) 20. Diet Coke (47) 37. T-Mobile Wireless (76) 39. PSE&G (15) 13. Google. Mobil Gasoline (25) 38. Schwab. L. Avis (1) 3.Loyalty Rankings 2004 Brand Loyalty Rankings (’04 Ranking | Brand | ’03 Ranking) 1. L. Yahoo. Miller Genuine Draft (5) 11. Discover Card (27) 17. (14) 10. Amazon. Coors (NR) 21. Verizon Wireless (37) 35. BP Gasoline (79) 32. Sears Catalogue (30) 34. Marriott Hotels (13) (42) 42. Swissotel (NR) 16. Adidas Athletic Shoe (23) 41. a research consultancy . Samsung Mobile Phone (7) 6. Diet Pepsi (31) 18. Budweiser (16) 19. Capital One Credit Card (29) 24. KeySpan Energy (9) (26) 36. Bean Catalogue (20) 25. Ritz-Carlton Hotels (17) 12. Bell South Long Distance (28) (59) 22. Sony Ericsson Mobile Phone (93) (2) 2. Canon Office Copier (8) 9.

Bud Light (32) 57. Land's End Catalogue (55) 60. Southwest Airlines (64) 75. BarnesandNoble. Chevron Gasoline (44) .com (34) 48. Nokia Mobile Phone (11) 62. (104) 65. Best Western Hotels (NR) 66. Sanyo Mobile Phone (NR) 49. Holiday Inn Hotels (NR) 64. AskJeeves. Subway (91) (49) 83.43. Wyndham Hotels (68) 68. Jet Blue Airways (67) 56. AT&T Long Distance (24) (51) 51. MLB (58) 72. Nextel Mobile Phone (148) 81. Spring PCS Wireless (60) 53. AltaVista. FedEx (50) 44. Ameritrade. Hilton Hotels (36) 47. Budget Rent A Car (71) 85. (35) (88) 73. MSN. Target (62) 55. Exxon Gasoline (43) (38) 50. Apple Computers (66) 84. (152) 78. Hampton Inn Hotels (NR) (113) 79. HotBot. Fox & Friends (Fox News Channel) (NR) 74. Sheraton Hotels (46) (39) 67. Texaco Gasoline (18) 88. Today (NBC) (56) 70. NFL (70) 71. Embassy Suites (86) 80. Westin Hotels (73) 45. Sears Store (40) 58. Excite. Pepsi (61) 54. Poland Spring (NR) 89. Coors Light (81) 87. MCI Long Distance (83) 63. Xerox Office Copier (82) 69. DHL/Airborne Express (45) 77. SBC Long Distance (21) 82.

Aquafina (NR) 97. Visa Card (100) 95. Expedia. J. UPS (127) 96. Penney (75) 91. Qwest Long Distance (41) 94.90. Hertz (84) (85) 92. Amstel Light (97) 100. Gateway Computers (53) 98. Amoco Gasoline (101) . (65) 93.

Failure to adequately control the brand. Failure to properly balance consistency and change with the brand. Failure to do brand equity measurement and management. Failure to adequately support the brand.      .What Are the Most Frequent Causes of Brand Failure? Failure to live up to the brand promise.

 Enlist “points of light.  Size the prize.  Build a compelling case (not through a plan but a story). .Achieving Deep Customer Focus  Create strategic excitement.”  Articulate the new market space focused on customer outcomes.  Gather momentum.  Get people working together.  Modeling the concept with a few chosen customers.  Get critical mass.  Identify the value opportunities through using the customer activity cycle.

Promoting along these lines will .Building Customer Equity  Reduce the rate of defection. or focus on establishing partnerships with complementary organizations to enter new markets? Armed with objective data about your (brand) position. Companies must decide which driver(s) underlie each equity.  Make low-profit customers more profitable or terminate them.  Focus disproportionate effort on high value customers. Brand research identifies multiple brand attributes and benefits you can use in sales and marketing efforts.  Increase the longevity of the relationship. Identify brand strengths to leverage in sales and marketing initiatives. Components of Customer Equity Customer equity is driven by:  Value equity  Brand equity  Relationship equity. Here are some typical uses: Prioritize actions that will improve brand loyalty.  Enhance the growth potential of each customer through cross-selling and up-selling. or differentiating yourself from competitors? Should you move forward in developing a product in a different product category. you can allocate resources to those areas that will maximize your return. Should your focus be more on improving overall brand awareness. These are the things customers and prospects associate with your product or service category and your brand. brand research findings are very actionable. Making Brand Research Actionable Once the data is in.

which can damage your brand. This information will help you make critical investment decisions. more than one half of consumers purchasing pet food (53%) say they are more likely to stick with one brand. you can measure how much bang you got for your buck. Examples of Actions These are real examples of actions Sage's clients have taken to increase brand loyalty—actions they took due to market research results: Continued to focus on educating the marketplace on a recent name change Established partnerships with complementary organizations to enter a new market rather than moving forward with an internally developed product Promoted its established track record of being a technology leader Purchasing loyalty on behalf of Fido far exceeds that for Baby Junior when it comes to the grocery store. Below are loyalty levels by product category: . The new survey reveals that Americans report little brand loyalty when shopping for themselves or their children in the supermarket. Guide collateral development and placement decisions. Brand research identifies sources your current and potential customers use for trusted information about your product category—-from articles they read in publications to seminars they attend at tradeshows to white papers you make available on your corporate Web site. But when purchasing food for their pets. Baby food and baby items rated just 27% brand loyalty. with the most loyalty inducing products cited by participants being soft drinks at 41% and condiments at 33%. How much did awareness increase with your latest marketing initiative? By measuring awareness before and after launch of a specific campaign. according to a recent survey of 500 grocery shoppers conducted by InsightExpress. By contrast. a professional online marketing research company. promoting elements that are not associated with your brand can lead to customer disconnect. Measure the effectiveness of marketing spending.assure your message resonates in the marketplace.

"In an attempt to affect loyalty and drive purchase behavior." said Smith. tangible methods should be the method of choice for marketers. "Traditional. an available promotional offer or coupon (40%). and individuals offering free samples. Chips & Crackers) Frozen Dinners/Pizza Milk and Eggs Pasta and Rice Meats/Poultry Canned Goods Baking Products Percentage of Loyal Shoppers 53% 41% 33% 27% 26% 24% 19% 19% 19% 19% 18% 17% 16% 15% 14% 14% When asked about compelling reasons to switch brands. followed by product quality (66%). Participants indicated weekly store flyers produced the highest level of awareness and translated into greatest level of sales. president of InsightExpress. followed by in-aisle coupon dispensers. nearly four in five consumers cited price (78%). not all of which are effective. and the sheer availability of other products or brands (33%)." said Lee Smith. stores and manufacturers have been using an ever-increasing array of tactics.Category Pet Food Soft Drinks/Juices Condiments Baby Items & Food Pasta Sauce Cereal & Breakfast Foods Ice Cream/Novelties Cheese and Dairy Household Cleaners Snacks (Cookies. Other methods include In-Store Method Weekly store flyers Participants Citing Aware Participants Awareness Citing Purchase Impact 84% 83% .

" The survey was created. and gain market share in a business that is oversaturated with choices. only 28% adhere to the list they created at home thereby remaining uninfluenced by in-store promotional activities. increase revenue. there are enormous opportunities to induce trial.In-aisle coupon dispensers Person offering free samples Store window advertisements Store announcements Above-aisle product banners Shopping cart advertisements On-shelf flashing lights Product trial packages On-floor product advertisements 79% 74% 49% 37% 35% 35% 30% 29% 19% 46% 49% 48% 37% 30% 11% 24% 66% 17% The survey also revealed that while 86% of Americans guide the shopping efforts using a grocery list. distributed and tabulated during a 24-hour period in late September 2002. "Understanding what drives peoples' decisions in the grocery store helps consumer packaged good manufacturers better compete. Take the name of Japanese automobile names of Toyota.4%. "Marketers need to recognize the tremendous power and influence they have when consumers are walking the aisles of their favorite grocery store. The data has a tolerance of +/." said Smith. With shoppers spending an average of 47 minutes in the grocery store. this particular business discipline has been transformed into one of the most sought after areas by small and large organizations alike.4. BRAND LOYALTY IN AUTOMOBILE SECTOR : A brief evaluation of brand loyalty reveals that today. one may observe that each has successfully gained a significant market share of the global automobile . Honda or even the German made Mercedes vehicles.

industry. Yet another important aspect in today's competitive business environment is the factor of profitability and the customer expectations regarding category values.C. brand loyalty also transcends the respective products. as is the case of our present paper. hence the value and importance of maintaining brand loyalty and its due influence on the customer's purchase choice . The object of creating brand loyalty. The reasons for Washington D. Los Angeles. which will discuss brand loyalty's influence on automobile purchases. from 51. there was a sharp increase of online sales between those with new vehicles and those who previously owned a vehicle. Another significant factor to influence Online purchases was the designated market areas. In a similar survey.7 percent during the years of 1998 and 1999 respectively. In addition.C. efficient. the same also effectively influences the external audience. the Online purchases only showed a 27 percent rise over the same period. it may probably end up with loosing its customer base to a competitor. as well as to instill in ideas within their minds as to the nature of the organization. a fact confirmed by a survey titled "Automotive Internet Activity Analysis" by a private firm. were found to rank 1st in vehicle shopping. if the respective organization fails to take into account the changing customer values. simply because of the efforts and endeavors put in to make their brands customer friendly. economically viable and perhaps most important of all the safety element. Thus. Though Internet usage amongst the purchasers of automobiles also increased significantly. This particular mail survey revealed that during the period of October 1998 and September 1999. is to build a relationship with the customers. as of recent studies. the purchase of automobile too was not far behind. chose the Internet as the medium for purchasing new vehicles.nd LThis transcending element emerges from the brand communication which not only strives to bring in an entire culture both from within an organization as well as the organization's customers. their category of customer. more commonly famous as the "car capital" of . The same survey found that 75 percent of the purchasers of new vehicles in Washington D. otherwise commonly known to all of us as customers. Though Internet usage seems to be the savvy choice of millions of consumers across the globe for practically every product. and how the respective organization extends its relationship with the customers at large. according to which the buyers in Washington D.6 percent to 57. In this context.C.'s top ranking was attributed to the technically savvy category of residents of the nation's capital. one may observe that consumer values are shifting at a relatively faster pace than the name of the brands.

Dell has attracted the most-loyal PC buyers. Yet another important factor for the rise of online purchases of automobiles was the marketing and other endeavors of automobile manufacturers. According to the study. The 2003 research is based on a survey of 11. the actual reasons have however remained a mystery with decision factors limited to facility of test-driving a new vehicle. compared to 6 percent for Los Angeles. improving nearly 11% over its 2002 result.7% repurchase rate.7 percent of all new vehicles buyers.5% to 47.4%. as part of their Technology User Profile study. was only 5. rising to rank first among the major brands with a 77% repurchase rate.5% from the 2002 to 2003.C. For the second consecutive year. Dell leads all other PC brands with the highest repurchase rate among the major manufacturers. Though the rise in online purchase of automobiles was attributed to the technical savvy nature of the residents of both the cities. With Gateway decreasing from 54. Although Compaq alone enjoyed a healthy 43% year-to-year improvement. .the United States showed that its residents actually purchased vehicles Online more than any other city including Washington D. A comparison with a number of manufacturers revealed that European brands remained ahead of their American counterparts in Online purchases with Sweden's SAAB and Germany's BMW topping the list. This is off the heels of the 2002 research which had Dell at an industry-leading 64.175 respondents and leaves no doubt that Dell is the PC repurchase brand leader.6% repurchase rate. Inc. IBM Clones now rank fourth with 48. when you combine HP & Compaq. Apple came in second in 2003 with a 57.C. a 19% year-over-year increase. the two brands are stronger than last year by 17% though still ranked third among the leaders. prior experience of particular brands and advertising campaigns of consumer magazines. When it comes to brand loyalty in the PC business. Statistics to that respect revealed that the final count of Online buyers of automobiles in Washington D. one manufacturer stands taller than all the rest: Dell. Surprisingly there wasn't a single American automobile manufacturer in the top five companies . The Repurchase Brand Loyalty measure is calculated annually by MetaFacts.

. Background & Methodology Factual. decision-making information like this is only found in one place. repurchase brand loyalty is a key measure for PC makers as they look to expand beyond the maturing personal computer market and into the highly competitive consumer-electronics market. The Technology User Profile market research information service is based on extensive primary research selected and balanced to represent the American population . the Technology User Profile from MetaFacts. leveraging their strong brand loyalty with consumers will be a major factor in obtaining success in these new markets. With new products such as portable digital-music players.including technology users and non-technology users. an online music stores and flat-panel television sets. .What's ahead? For Dell.

notes that 60 percent of online merchants and brand marketers have or plan to offer community-building features such as chat. In return. Why partner with netVillage? • • • • To add value to your current services To increase your ability to serve your clients To offer your clients fully-integrated interactive web collaboration tools To help your clients: o o o o build their brand increase 'stickiness' drive e-commerce increase revenues add community to their web site . We do NOT focus on providing initial web site design or ongoing web page maintenance. Forrester Research Inc. message boards and members-only areas within the year Deliver this and more in our Alliance Program The netVillage Alliance Program is a lead referral and shared development program for web design firms interested in adding our community enabling software applications to their customer’s web sites.Alliance Program for Web Design Firms Are your web customers seeking to create 'community' Web design firms are under increasing pressure to add “community” features to their customer’s web sites. NetVillage will refer our customers interested in using our community toolset and hosting services to our partners for their web page development and maintenance. We also offer hosting services for these sites. We provide a suite of tightly integrated interactive software applications that provide “community” features to a website. web design firms will be able to strengthen their value proposition of web page design by adding community features and hosting services through netVillage. NetVillage is an e-community application service provider. That is where YOU come in.

keep them on the site. Its purpose is to identify users. Rather trying to cobble together software applications from multiple vendors (resulting in a hodgepodge mix of services and a disruptive.000 at last count!). and possibly charge users for access to those areas. all services contained under the customer’s site. Powerful User Management & Security All of the community services are integrated into our User Management System. In addition. Our locks & keys approach to managing access rights gives your customers unparalleled power for member access and control. and integrated e-commerce across all services. This gives you the flexibility to create an ideal online service for your customers. We've incorporated feed back from a very large customer base and as a result our software is highly configurable with a vast array of configuration features (5. and encourage them to return. you can use our integrated services benefiting from: single login.Why Community? By adding interactive community features. Unique Credits-based E-Commerce Accounting We offer a ‘Credits’ based e-commerce system across all community services. They are the the mechanism by which For-Profit systems can charge for services. A user • • • • . The ability for interactive sites to keep users on their sites longer (three times the average according to Businessweek) extends the opportunity to interest users in the site’s e-commerce programs. decide internally which activities and resources they can access. a web site can grab surfer’s attention. Our community services were designed and developed to work with each other from the ground up. inconsistent community experience). by engaging customers with a netVillage interactive community The netVillage difference • One Stop Shopping We are unmatched in the breadth of plug-and-play integrated services we can incorporate into a community. Feature Rich Our community software has been developed and fine-tuned over many years. From auctions to video broadcasting you can offer your customers a wealth of interactive plug-and-play community services Completely Integrated Services Probably the most important requirement of an online community. Credits are a community’s unit of currency.

It is a way a customer can surcharge for premium areas in his online community.maintains an electronic wallet (in the form of 'credits' applied to his account) and use this currency across all community services. . customers are looking to be able to deploy rapidly and cost-efficiently. By working with netVillage you will be able to provide an outsourcing solution to your customers. Rapid Time to Market Using our tools you can get a customer’s site up and running in days. In an age where being late to the Internet game may spell doom for an Internet company. • Web Hosting and Outsourcing Options Most companies are looking to outsource their web site to a hosting company and many web design firms are not in that business.

E-Loyalty: The new form .

Also considered are the implications for e-marketing practice and the direction future research might take. a strong barrier to potential new entries into the product/service category. This paper integrates previous research in the field of brand loyalty to present a conceptial framework of "e-loyalty" and its underlying drivers. reduced selling costs. conative (behavioral intent). and action (repeat purchase behavior) dimensions. the advantages enjoyed by a brand with strong customer loyalty include ability to maintain premium pricing. Most of the research has been confined to practitioner-oriented suggestions on how to build loyalty to commercial websites (Smith. Oliver (1997) has presented a conceptual framework of brand loyalty that includes the full spectrum of brand loyalty based on a hierarchy of effects model with cognitive. Prior Research The concept of brand loyalty has been extensively discussed in traditional marketing literature with the main emphasis on two different dimensions of the concept: behavioral and attitudinal loyalty. Building and maintaining brand loyalty has been a central theme of marketing theory and practice in establishing sustainable competitive advantage. In this process we develop a conceptual framework of e-loyalty and its underlying drivers. Most B2C e-business models have relied initially on an intensive effort to generate a large enough customer base and subsequently on achieving profitability based on a “lifetime revenue potential” from each loyal customer (Porter. Despite the importance of e-loyalty to business success in online consumer marketing. greater bargaining power with channels of distribution. and synergistic advantages of brand extensions to related product/service categories (Reichfeld. 2. affective. 2001). A definition integrating this multidimensional . The advent and growth of "Business to Consumer" (B2C) e-commerce has magnified the importance of building a loyal visitor base to an e-commerce website (e-loyalty). Reichfeld & Schefter. the importance of building and maintaining customer loyalty in electronic marketplaces has come into sharper focus in marketing theory and practice.From Brand Loyalty to E-Loyalty: A Conceptual Framework With the rapid growth of E-commerce and on-line consumer shopping trends. little theoretical research has been done so far in this field. 2000). 1996). In traditional consumer marketing. The objective of this conceptual research paper is to interpret traditional brand loyalt y literature in the context of online buyer behavior in order to bring out the similarities and differences between traditional brand loyalty and e-loyalty. 2000. Implications for emarketing practice and future research directions are also presented.

and behavioral intent dimensions. 1999). and technology-facilitated concept. loyalty implies satisfaction. there is an asymmetric relationship between loyalty and satisfaction (Waddell. despite situational influences and marketing efforts having the potential to cause switching behavior. thereby causing repetitive same-brand or same brand-set purchasing.construct has been given (Oliver. Through extensive research. In e-marketplaces. e-loyalty also has several parallels to the “store loyalty” concept (Corstjens & Lal. and security come into sharper focus. Attitudinal Loyalty The traditional conceptualization of attitudinal brand loyalty includes cognitive. 2000)such as building repeat store visiting behavior as well as the purchase of established brand name items in the store. database technology makes it possible to put more emphasis on the cognitive dimension by offering customized information. privacy. 1999) as: "a deeply held commitment to rebuy or repatronize a preferred product/service consistently in the future. In addition. As extensively discussed in Schefter and Reichheld (2000). marketer controlled concept towards a distribution driven. on-time delivery. and clear and trustworthy privacy policies. consumer controlled. Baldin ger and Rubinson (1996) have validated that highly loyal buyers tend to stay loyal if their attitude towards a brand is positive. in e-loyalty the roles of trust. The sections that follow illustrate the similarities and differences between traditional brand loyalty and e-loyalty. Generally speaking. Conventional brand loyalt y development efforts have relied substantially on brand image building through mass media communications. convenient and reasonably priced shipping and handling. affective. Schultz (2000) describes customer/brand loyalty in cyberspace as an evolution from the traditional product driven. the ability to convert a switching buyer into a loyal buyer is much higher if the buyer has a favorable attitude toward the brand. however. This phenomenon is particularly important in e-marketplaces. compelling product presentations. As for strengthening the affective dimension. e-loyalty is all about quality customer support." The concept of e-loyalty extends the traditional brand loyalty concept to online consumer behavior. 1995. . Consequently. Oliver. but satisfaction does not necessarily lead to loyalty. since (dissatisfied) customers face a greater variety of choices. In addition. there are unique aspects of it in the area of Internet based marketing and buyer behavior. Although the underlying theoretical foundations of traditional brand loyalty and the newly defined phenomena of e-loyalty are generally similar.

Short-term marketing activities such as promotional tools are traditionally used to shape a brand’s image (Knox. e. the main emphasis is on converting behavioral intent to immediate purchasing action (Strauss & Frost. which has a relatively compressed buying cycle time. In other words. The importance of satisfying a customer in order to create behavioral loyalty is discussed extensively in Schultz (2000). product development to create a favorable brand image. which surely influences the buying decision to a great extent. 2001). These short-term tools have to be balanced with long-term activities. 1985). 1996). A satisfied customer tends to be more loyal to a brand/store over time than a customer whose purchase is caused by other reasons such as time restrictions and information deficits. both the conceptual and measurement issues become more complex and sophisticated. where the customer often has to decide with limited information. Factors such as repeat site visits without purchases and extent of time spent at the e-commerce site (site stickiness) have to be considered (Smith. The interactive nature of the Internet enables managers to convert this concept . 2000). The Internet brings this phenomenon further to the surface since a customer is able to collect a large amount of relevant information about a product/store in an adequate amount of time. behavioral loyalty has been defined in terms of repeat buying behavior. Brand Building Activities Brand building activities are divided into two major areas: brand image building and frequency programs. In e-loyalty. 2001). When the concept of behavioral loyalty is extended to the e-marketspace. Behavioral loyalty can be expressed in different ways. For example. Behavioral Loyalty Traditionally. behavioral loyalty is much more complex and harder to achieve in the e-space than in the real world. It represents the intention to act in the buying decision process.g. 1992) and converting behavioral intent to an actual purchase (Kuhl & Beckmann. Examples of conceptual and measurement issues related to behavioral loyalty can be found in Chaudhuri and Holbrook (2001) and Dick and Basu (1994). Behavioral intent appears in various forms such as a predisposition to buy a brand for the first time or a commitment to repurchase a current brand. Brand loyalty research has focused on factors related to maintaining and augmenting this repurchase commitment (Oliva & Oliver. customers can be loyal to brands and/or they can be loyal to stores as discussed in Corstjens and Lal (2000).Behavioral Intent Behavioral intent is an intermediary between attitude and behavior (Mittal & Kamakura.

Doney & Cannon 1997. communications about the brand and the relationship are managed by the marketer. 1997. They are mainly a defensive tactic to prevent brand switching. McWilliam (2000) has summarized the emerging importance of building stronger brands through online communities and techniques for managing these communities. 2000). However. loyalty cards have been used in the real space to prevent brand switching at a product or store level (Dowling & Uncles. In contrast. it is hard to derive a sustainable competitive advantage from them. Chaudhuri & Holbrook 2001). Trust plays a central role in augmenting both behavioral and attitudinal loyalty which in turn influences marketing outcome related factors like market share maintenance and price elasticity. E-loyalty : A Conceptual Framework Based on the above review of the literature. 2001). Privacy has emerged as a unique and important dimension of e-loyalty (Ratnasingham. 3." In these types of traditional consumer brand organizations. we propose the following model of e-loyalty (see Figure 1) with the underlying drivers consisting of . 1997).into practice in a different way. since it is easy to copy these concepts (Smith. the “online community” has the unique advantage of peer-to-peer brand related communications as well as the unique 24/7 (24-hour/7-day a week) access and global reach of the Internet. The one-way mass communication model of traditional advertising campaigns can be replaced by a two-way or even a group communications approach in e-brand building. 1998). 2000). Promoting and supporting “user groups” to reinforce positive brand image and loyalty has been an important tool used in traditional brand management practice. One example of the Internet’s ability to perform long-term marketing activities is the appearance of various customized products on the Internet. Examples include the “Volkswagen Owners Association” and the “Mickey Mouse Club. Trust and Loyalty The role of trust in building and maintaining brand loyalty has been researched extensively in both consumer and business-to-business buying situations (Cowles. Frequency programs have always been an important technique to retain customers. In the field of e-loyalty several structural models of trust and its relationship to repeat visits to e-commerce sites have been presented (Jevons & Gabbott. Traditionally. Frequency based loyalty building programs are easier to implement in e-markets due to the presence of database technologies that are an essential component of e-commerce sites (Deitel et al..

(1) Value Propositions (2) Brand Building (3) Trust and Security (4) Website & Technology and (5) Customer Service. .

2000) and due to the fact that competition is just one click away. The accumulated customer knowledge base over several transactions allows the e-marketer to sharpen the customized offerings and prevent competitive inroads. In e-business the significance of brand building has increased with the exploding number of competitive choices that have appeared in a short period of time. The Internet offers unique tools of interactive brand building that have . and MacInnis (1986) have proposed brand concept management on the basis of symbolic and functional dimensions. Park. Yoo. has successfully implemented the approach of “build your own computer” through the use of “Choiceboards” (Slywotzky. this immunity is substantially diminished due to how easy price comparing among shopping agents is (Turban et al. 1998. The combination of customer involvement in product design and a well-known brand with associated product quality and guarantees increases the probability that product performance meets customer expectations.Value Propositions Product customization and interactivity are two unique value propositions that contribute to e-loyalty in online buyer behavior. The computer manufacturer.. Dell. 2000). In e-markets. 1997). Traditional brands with high brand loyalty have enjoyed a certain degree of immunity from price-based competition and brand switching (Dowling & Uncles. 2000). Brand Building Brand image building as a strategic tool for developing brand loyalty has been discussed a lot from both theoretical and managerial perspectives in the literature (Bhat & Reddy. & Lee. 2000). A recent Modem Media and Greenfield survey showed that a majority of web shoppers prefer websites that offer customized products and information. So being in a competitive price range is more important for e-businesses in developing and maintaining customer loyalty (Reichheld & Schefter. Jaworski. The high involvement in the product design on the part of the buyer inherently creates a stronger affective relationship with the brand that subsequently leads to brand loyalty. Customization is the result of the interactive involvement of the customer in the design of his/her ideal product. This clearly indicates the importance of mass customization in creating e-loyalty. however. Donthu.

previously not been available through traditional mass media oriented brand-building strategies. 2000) has shown the importance of domain names as brand name extensions. is a very important factor in the online buying process behavior process.g. Several unique tools and techniques are available to e-businesses to enhance customer trust in their website. trust is a component of the attitudinal component of loyalty. Brand trust usually contributes to a reduction of uncertainty. which is closely related to security. Passwords are most commonly used in authentication processes. particularly the unique dimensions of transactional security and privacy (Hoffmann et al. to overcome perceptions that the Internet is an unsafe. 1999). Not only do consumers prefer well known and easy to remember website names. Trust and Security Trust. authentication guarantees the identity of the participants involved in the electronic contract. . This includes third party approvals. Encryption assures data security in transmission. 2000).com are the leading providers of authentication technology. these ways of developing trust are excluded on the Internet. you cannot feel. these perceptions are still stopping some potential customers from doing business on the web. In general. but the website content also plays a significant role in enhancing the overall brand image. Verisign. and non-repudiation means maintaining an authentic transcript of the specific terms and conditions of the contract agreed to by both assure customers that merchants participating in their program meet specific standards of consumer privacy and transactional security. Therefore. authentication. e. In addition. smell. Moreover. dishonest. A “third party approval” is a tool to generate trust. A recent study by Ratnasingham (1998) has shown that fear of online credit card fraud has been one of the major reasons customers have not done more extensive online buying. In fact. play a critical role in generating customer loyalty to an e-business. You cannot look into the salesperson’s eyes. Trust. and unreliable marketplace. Companies like TRUSTe. encryption. and non-repudiation and Authentidate. So it is obvious that loyalty in general and brand trust in particular can help to overcome some of the Internet’s disadvantages.. privacy concerns have led to a public relations fiasco for some major e-businesses resulting in substantial brand image erosion (Advertising Age. A study of the trends in brand building on the Internet (Nemes. or touch the product.

This concept is successfully imple mented by Amazon and Stepstone. which means that the content of the site has to match the preferences of its targeted customer group. Buyers of different products often follow different buying patterns. and Meyer (1996). In addition. which is a European online career portal. Szymanski and Hise (2000) figured out that convenience and site design are among the major factors that determine customer satisfaction. Bederson. an e-business has to know whether most of its buyers come to the website with or without any intent to buy. If a web page ta kes too much time to load. Hollan.easy navigation. which implies that browsers should be able to find the items they are looking for in an adequate amount of time. for an e-business whose customers visit the site with the intent to buy. Global e-marketers should consider offering language-changing options since a website can be accessed from all over the world. Grose. An e-business has to be aware of the fact that a lot of customers are suffering from time constraints. Norman and Chin (1998) have recommended that complex websites adopt a concave structure that is broad at the top and the bottom levels and narrow in the intermediate levels. information should be organized in three hierarchical levels from the initial homepage. For example. 2001). which in turn influence the decision to re-patronize a site. If customers visit a site without any intent to buy. it is advisable to change the content of a site to suit local conditions. fast page loads. This has been shown to substantially increase ease of navigation. navigating through a website has to be easy. Perlin. A website has to be designed for a targeted customer segment. establishing a website with an effective search function is important. and a personalized interface. quick shopping and checkout processes. Web users make fewer mistakes if the hierarchical structure of the site is broader rather than deeper (Bernard. people of different countries perceive colors differently or people with a different reading direction (such as Arabic or Chinese) do not look at the same spots on the screen as people in Western countries do. Local adaptation should be based on a complete understanding of a customer group’s culture. For example. Furthermore. 2000). placing good offers on the first page is important. According to Forsythe. 58% of users make two or more navigational errors while searching for information. Ring.Website and Technology A unique factor in e-loyalty is the critical role of the first impression created by a website as well as its ease of use (Smith. On the other hand. it may keep potential customers away. Ideally. . server reliability.

guarantees. Some customers prefer to get the product delivered by parcel services. which can be used to derive brand loyalty management strategies for different marketing situations. Customer service is another crucial area for e-marketers (Helmsley. In addition to the speed of delivery. Managerial Implications The drivers of e-loyalty presented in the framework above have immediate implications for marketing management in terms of developing and maintaining brand loyalty in e-space. an e-business should offer brands that are well-known. A thoughtful logistics system that guarantees a fast delivery after the checkout process contributes to customer satisfaction. will have an adverse impact on the decision to visit the site again. Sometimes website designers cannot avoid a certain degree of complexity in the architecture of a website. However. One dimension of the framework is whether a business is a pure e-business or whether it is a traditional business moving into e-space (bricks to clicks). good product quality. Figure 2 presents a contingency framework. like FedEx and UPS. and. Others might want to pick up a product in a physical store in order to have somebody to talk to. A marketer should not just offer online assistance. A server crash while browsing a website or even worse. the logistics system should allow different ways of delivering products. In order to minimize this insecurity. Therefore. Links to Frequently Asked Questions (FAQs) and links to online representatives are useful in order to assist customers in the selection or buying process. it is necessary to have a thoughtful customer service system. 2000). of course.In addition to web design issues. Therefore. The other . it is more convenient for customers to call a company. 4. Customer Service Order fulfillment and rapid delivery systems are as critical to e-loyalty development as the other factors. smell. or experience the good before they buy it. Internet customers cannot touch. factors such as server reliability and fast response times represent key technical issues that have a major influence on e-loyalty. the use of a toll free phone number for customers should be considered. A customer who buys something on the Internet has one major disadvantage compared to a customer in real space. the relative importance of the drivers of e-loyalty in brand strategy formulation depend on the type of ebusiness as well as the type of market situation. while placing an order. This makes a shopper insecure about buying a product. In many cases. which in turn contributes to loyal behavior.

giving incentives for brand switching. focusing on improving logistics and customer service will strengthen the existing e-loyalty of their current customers based on increased satisfaction levels. Recent experiences of delivery delays and lack of infrastructure to handle customer returned merchandise resulted in serious blows to brand credibility of major e-retailers during a recent holiday season sales period (Neuborne. Pure E-Business Market Follower This group has to build brand recognition and to create trust in order to get new customers. Their brand loyalty strategy must focus on facilitating repeat buying through improved use of web technologies such as ease of navigation and one-click purchasing for repeat buyers. The following brand loyalty strategies emerge from the above framework: Pure E-Business Market Leader This group already has the threshold level of brand recognition with associated trust and reputation in the e-market space. 2000). Using techniques like third party approvals (TrustE) and strategic partnerships with companies with established reputations will increase the trust level to accomplish it. An alternative approach is to facilitate behavioral loyalty first in order to bring about attitudinal loyalty. as well as using frequency programs are methods to achieve this. if overall performance meets or exceeds customer expectations.dimension is the market position of the business in terms of being a market share leader or a market follower. It should be noted. Here attititudinal loyalty is created first leading to behavioral loyalty. that pure e-business market followers do . In addition. This implies focusing on attitudinal brand loyalty. Offering customized products. however.

using a different brand name in e-space (KBToys – KBKids. Bricks to Clicks Market Leader Transforming existing brand loyalty to e-loyalty should be the main goal for this group. there needs to be: ? study of the relative importance of the different drivers in building e-loyalty--are trust and security factors more important than website navigation ease in building e-loyalty. Of course. Here they can “leap frog” over their real space competitors and develop stronger customer loyalty in e-space through pioneer will have instantaneous brand recognition in e-space but will have to face the problem of cannibalization from “brick” sales to “click” sales. a company that uses an identical real space and e-space brand name (Wal-Mart – though not capitalizing to the full extent on the “brick” brand name does allow for creating a unique market positioning in the e-world which is different from the “brick” positioning. Bricks to Clicks Market Follower This group has to focus on a niche strategy with unique offers to narrowly defined market segments. This implies that greater effort is needed to build brand recognition and trust before e-loyalty can be established. ? comparative research on the relative importance of the different factors in driving brand loyalty in traditional and e-marketplaces.not have the same degree of brand recognition when compared to traditional space market followers by virtue of the shorter time e-brands have existed.). there has been a preoccupation with the use of site visit statistics as a surrogate for brand loyalty. several important future research questions arise. Due to the easy availability of a multitude of behavioral measures of e-loyalty (such as the repeat visit rate to websites. On the other hand. etc. was the first to offer travel bargain hunters the option of searching for the cheapest flights by keeping travel dates flexible. Brand extension with identical brick and click brands or moving to related e-brands are the two main routes that can be followed by this group. First. Another dimension of research deals with the measurement issues in e-loyalty. . the amount of time spent by an individual at a website. USAIR. for example. 5. Brick market followers should take advantage of the opportunity to define new markets in e-space before their rivals. both approaches have their advantages and disadvantages. there is the need to move from practitioner oriented descriptive research to a more theoretically based model of e-loyalty. For example. For instance. Implications for Future Research Based on the conceptual framework of drivers of e-loyalty presented in this paper.

Understanding the drivers and dynamics of how customer loyalty is developed and maintained in cyberspace with the help of an integrated theoretical framework is critical to developing future marketing strategies in this area. An integrated measure of e-loyalty would be the objective of such a measurement and metrics oriented type of research. E-loyalty will continue to be a key success factor in e-commerce. as has been suggested in our framework. online buying and marketing is expected to grow. it is important to go beyond just the behavioral dimension of loyalty and also consider the attitudinal and behavioral intent dimensions. .However. After the initial euphoria of the promises and potential of B2C e-commerce and the subsequent sobering reality of recent disappointments. Building and ma intaining e-loyalty will be a challenge in the highly competitive and fickle world of online shopping.


Nothing builds brand loyalty among today's increasingly hard-to-please consumers like a company‚s proven commitment to a worthy cause. or service for mutual benefit. your activities will generate tremendous goodwill and media attention can be its side effect. cause-related marketing is emotionally fulfilling. Your cause-related marketing activities should highlight your company's reputation within your target market. Corporate responsibility. These are often used to describe cause-related marketing. including a homeless shelter and a shelter for battered women. many consumers would rather do business with a company that stands for something beyond profits. Embracing a cause makes good business sense. product.Cause-Related Marketing : Altruism. Before each event. If your cause also resonates with your target market. Powerful marketing edge Cause-related marketing can become a cornerstone of your marketing plan. Philanthropy. a strategy that landed him radio and TV appearances in areas where he worked. an activity in which businesses join with charities or causes to market an image. Other things being equal. It's a way to merge your profit center with your "passion center" and build a business that mirrors your personal values. including: • • • • • Increased sales Increased visibility Increased customer loyalty Enhanced company image Positive media coverage By choosing a cause you are passionate about. Cause-related marketing can positively differentiate your company from your competitors and provide an edge that delivers other tangible benefits. beliefs and integrity. McMahon established partnerships with local charities. Real-World Success Story Cosmetic dentist Mark McMahon made himself a media mini-celebrity with a thriving practice due in part to his high-profile pro bono work in his community. he contacted local media and let them know what . and offered free dental services to their members.

" McMahon says." (Excerpted from the book Get Slightly Famous: Become a Celebrity in Your Field and Attract More Business with Less Effort. opens a new club. "I agreed to treat some of their members' acute dental needs. we took more pictures. now looking like lawyers and accountants. 'I was thinking about you this morning while I was flossing my teeth. Several TV crews showed up." McMahon captured the event with before and after photos. "She said." McMahon's TV appearances created name recognition. with me sitting right in the middle. by Steven Van Yoder) Getting Started Cause-related marketing yields mutual benefit. and every year. Whenever Johnny "Love" Metheny. There are many types of mutually beneficial relationships you can form with your cause-related partner. sales promotions and collection plans. but this time dressed the guys in suits and ties. Take inventory of the assets that make you an appealing partner in a causerelated venture." McMahon says. "Local television news stations loved the emotional element." Another project involved the Delancey Street Foundation. a slightly famous nightclub owner in San Francisco. I was recognized in my gym by a masseuse who had seen the show. After I fixed their teeth. including special events. "I quickly appreciated the media appeal of transforming the appearance of these roughlooking guys with terrible smiles. "These guys had missing teeth and terrible smiles. "So I had a professional photographer capture before pictures of these guys in street clothes with their snarling faces. Look for partners with a similar agenda whose goals can be better achieved by partnering with your business.he was up to. and later aired the segments on the evening news. and it was great seeing these men looking like new. "I have . "After I did the story on a local television show. they'd help us get press simply by doing these charitable promotions." McMahon recalls. "These events were surprisingly easy to arrange. An easy way to embrace a cause is to team up with a charity. The media loved it. filmed him treating patients. he shares the limelight with a local charity. And it was obviously rewarding to see patients after we'd treated them who'd been in pain for months talking about how glad they were to be relieved of their toothaches.' She became a great source of referrals." he says. a residential education center for former substance abusers and ex-convicts.

all of who eventually hired her to work for them. Talk about the charitable organization and have flyers available. Never lose the marketing focus of your community partnership efforts. and Wells Fargo Bank." She advises business owners to target causes they believe in. and make sure your target market sees that connection. Even though the work is philanthropy. When Eunice Azzani." says Metheny. "Volunteering for a position at a local organization makes you very trustworthy. Bank of America. . Select a cause that is important to your target market." Volunteer with an organization. who was voted the society's Man of the Year in 1991." As your partnership takes shape.a history of including the Leukemia & Lymphoma Society in my grand openings. an executive recruiter. Promote the organization (and your partnership) on your website and in your newsletters. "If you're helping with a cause you believe in. volunteered to serve on the board of the San Francisco AIDS Foundation. people will see that you care. become ambassadors for each other. Ask your partner to extend the same courtesies to you." Azzani says. And they'll realize you will probably care as much about your work. but it helps us market our businesses to the community and media at the same time. she didn't anticipate that it would connect her with executives from Mervyn's. your cause should generate interest in your company and motivate people to buy from it. "People don't hire a piece of paper or a process. They hire people they trust. "It's not only something I feel good about.


Owner's Pie 13% 11% 4% 12% Huydai Maruti BMW TATA Chevrolet Chrysle Skoda 7% Ford Honda Mahindra HM 4% 13% 11% 5% 9% 11% This Pie-Diagramatic Description of the information that I collected during my online survey.This Figure Shows How many of those 59 respondent are the above mentioned cars. .

In other words this shows their satisfaction level about that brand they are possessing. .Loyalty pie 8% 8% 11% 11% Huydai Maruti BMW TATA Chevrolet Chrysler SKODA 8% 6% 6% 11% 15% 8% 8% Ford Honda Mahindra HM This figure shows which respondent is planning to buy which brand.

Honda are really excellent in maintaining the loyalty of its customers. Chrysler. . These are the brands which are premium priced but post-purchase customer satisfaction level is very high in their case. Customers still want to buy their product after using it . the brands like BMW.Return on loyalty: ROL Pie 9 8 7 6 5 4 3 2 1 0 owning planning2buy Huydai 6 4 Maruti 8 4 BMW 2 3 TATA 7 5 Chevrolet Chrysler 4 3 2 4 Skoda 6 2 Ford 5 2 Honda 3 3 Mahindra 6 3 HM 7 3 As the Comparative analysis shows .

.  Vans builds skateboard parks at malls and sponsors Vans Triple Crown.  Models drove around Los Angeles on Vespa scooters and chatted with customers in cafes and bars. 250.000 prospects requested information before official ad campaign began in April 2000.  Tourist goes into lounge and her telephone rings and picture of the caller appears on the phone.  Hasbro enlisted “cool” pre-teens to play the POX game and tell their friends about it.  Ford identified 120 people in six key markets and gave them a Focus to drive for 6 months and promotional material.Two Models of Management Profit-based management  Reduce costs  Reduce compensation  Replace people with technology  Price to extract maximum value  Sell more products  Acquire lots of customers Loyalty-based management  Invest in marketing assets  Give superior compensation  Leverage people with technology  Price to reward customers  Deepen customer value  Acquire customers selectively Creating Buzz on the Streets  Chrysler’s PT Landcruiser appeared in fashionable areas and college tailgate parties.




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