Brand royalty programs

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					CONSUMER BEHAVIOUR
            vis-à-vis
     BRAND LOYALTY
BIBLIOGRAPHY

 KOTLER AND kELLER (158,290,261)
 MARKETING RESEARCH(Gilbert and Dawn)
  (110)
 www.brandimage.com
 Wikipedia.com
 www.aolresearch.com
B
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                          BRANDING

 A brand is a name, term, design symbol or any
  other feature that identifies a seller’s product from
  a competitive product.


                     Brand Names
                                         -Verbal part of the brand



       Brand Marks
 a symbol, design or distinctive coloring or lettering.
 Ex. A brand name written in a distinctive way (Logo)
Benefits of Branding
             BUYERS

 Identify products via Brand Recognition
 Shopping efficiency is facilitated
                  - Search time ( )
                  - Association of quality level ( )
                  - Perceived risk decrease ( )
                  - Facilitates repeat purchasing (
Benefits of Branding

                SELLERS


 Identify products via Brand Differentiation
 Selling efficiency is facilitated
            - New product introduction/Acceptance
            - Promotion of product (awareness)
            - Brand loyalty is assisted
            - Pricing at a premium
            - Legal protection
           Most Valuable Global Brands
               Brands        Brand value

              Coca Cola     $ 36    Billion
              Marlboro      $ 33    Billion
              Nescafe       $ 11    Billion
              Kodak         $ 10    Billion
              Microsoft     $ 9.8   Billion
              Budweiser     $ 9.7   Billion
              Kellogg's     $ 9.3   Billion
              Motorola      $ 9.2   Billion
              Gillette      $ 8.2   Billion
              Bacardi       $ 7.1   Billion
Source: Financial World
What is Loyalty?
 The consumer is loyal to you is s/he frequently buys your
 product



                    Desired Behaviour           Loyal
                                                Behaviour
           Low                         High
  Commitment/desired behaviour

                                             The actively
                                             loyal customer
            High

                   Potentially   Actively
                   Loyal         Loyal       is the only (long
Emotional          Behaviour     Behaviour   term) profitable
 bonding                                     customer
                                 Passively
                                 Loyal
            Low




                                 Behaviour
                   Low               High

                     Desired Behaviour
   Extend the relationship from
   Product to Brand




                           High
Depth of Involvement
reflects moving from a
narrow relationship with
an individual product to
                                  Low               High
broad usage of the                  Desired Behaviour
full range of
products
marketed
under the brand
Co-Branding



Two companies join to create a new
product carrying both their brands.
 Co-Branding
Examples:

Pizza Hut & Pepsi
McCains cake and KFC
Cereal box with other thing inside
Pizza Pizza and Blockbuster video rental &
Chocolate bar
BRAND LOYALTY

 Brand Loyalty is the consumer's conscious or
  unconscious decision, expressed through
  intention or behavior, to repurchase a brand
  continually. It occurs because the consumer
  perceives that the brand offers the right product
  features, image, or level of quality at the right
  price.
BRAND LOYALTY CRIRTERIA



        1. Past Experience
        2. Price
                       Price + Quality
        3. Quality         =Value

        4. Recommendations by others
        5. Brand popularity
                Brand loyalty FACTS

 As perceived risk increases, the preference
  for branded products increases

 Tends to increase with age

 Higher among heavy users

 Decreases as inter-purchase time increases
Challenges of brand loyalty

 How should loyalty be created and sustained ?
 Are there different approaches for fast moving
  consumer goods and durable categories?
 How should retail networks be used to build loyalty
  at the retail outlet level?
 How should loyalty programmes be floated so that
  they are profitable to companies too unlike several
  programmes which do not get much value for the
  brand?
              IMPORTANCE

 VARIETY

 HIGHER SALES VOLUME   (COMPETITIVE U.S. MARKET)
 PREMIUM PRICING
 RETAIN RATHER THAN SEEK
How to?

 FAVOURABLE BRAND ATTITUDES TO BE DEVELOPED
          DEVELOP AN UNBEATABLE PRODUCT

 THESE HABBITS MUST BE REINFORCED.
 CONSUMERS REMINDED OF THE VALUE OF THEIR PURCHASE

 ENCOURAGE REPEATED PURCHASING

 ADVERTISING BEFORE AND AFTER SALE
                    (eg.TRAVEL)


  SERVICE

80:20 RULE TREAT THEM BEST
LATEST TREND
 Mercedes Example.
 Having long been at the top of the heap,
 Mercedes has crashed in the last ten years,
  tumbling from first to 28th place on a list of
 35 car companies in a reliability survey conducted
  by J.D. Power, a market research firm.

 Mercedes is losing the loyalty game because of the
  declining quality and reliability of its cars.

 "Even German taxi drivers no longer hail a
  Mercedes," reports the Financial Times, noting that
  the company’s reputation has been tarnished
  because the vehicles simply aren’t dependable any
  more.
THANK YOU



      QUESTIONS???

				
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