A
Research project on
“Brand
loyalty comparison for Arrow, Allen Solly & Van Heusen”
Submitted By: Ashish (03) Himanshu Kashyap (17) Rajiv Gupta (25) Shantanu (26)
Title of the project: - Brand loyalty comparison for Arrow, Allen solly & Van Heusen
ABSTRACT 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 objectives of the project are as follows:
Selecting three apparel brands Arrow, Allen sully & Van Heusen. Identify its product, market segment & prospective consumer. Devise methodology to know the loyalty index of consumer. Formulating questionnaire to apply statistical tool & conclude research.
To study & Increase the “Loyalty Sales Percentage” Better utilization of resources of brand Increasing brand profit
Literature review Brand loyalty Brand loyalty, loyalty , in marketing, consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service or other positive behaviors such as word of mouth advocacy. Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand due to situational situational constraints, a lack of viable alternatives, or out of convenience. convenience. Such Such loyal loyalty ty is refe referre rred d to as "spu "spurio rious us loyalt loyalty" y".. True rue brand brand loyal loyalty ty exists exists when when customers have a high relative attitude toward the brand which is then exhibited through repurchase behavior. This type of loyalty can be a great asset to the firm: customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to the firm. For example, if Joe has brand loyalty to Company A he will purchase Company A's products even if Company B's are cheaper and/or of a higher quality. An example of a major brand loyalty program that extended for several years and spread worldwide is Pepsi Stuff. Perhaps the most significant significant contemporary example of brand loyalty is the dedication that many Mac users show to the Apple company and its products. From the point of view of many marketers, loyalty to the brand - in terms of consumer usage - is a key factor:
Loyalty A second dimension, however, is whether the customer is committed to the brand. Philip Kotler, again, defines four patterns of behaviour: 1. 2. 3. 4.
Hardcor Hardcore e Loyals Loyals - who buy buy the the brand brand all the the time. time. Softcore Softcore Loyals Loyals - loyal loyal to two or or three three brands. brands. Shifting Shifting Loyalty Loyalty - moving moving from from one brand brand to another another.. Switche Switchers rs - with no loyalty (possibly (possibly 'deal-pr 'deal-prone one', ', constan constantly tly looking looking for bargains bargains or 'vanity prone', looking for something different).
Factors Influencing Brand Loyalty It has has been been sugg sugges este ted d that that loya loyalt lty y incl includ udes es some some degr degree ee of prepre-di disp spos osit itio iona nall commitment commitment toward a brand. Brand loyalty is viewed as multidimensional multidimensional construct. It is determi determined ned by several several distinct distinct psycholog psychological ical proces processes ses and it entails entails multivar multivariate iate measur measuremen ements. ts. Custom Customers' ers' Perceiv Perceived ed value, value, Brand Brand trust, trust, Custome Customers' rs' satisfac satisfaction tion,, Repeat purchase behaviour and Commitment are found to be the key influencing factors of brand brand loyalty loyalty.. Commitm Commitment ent and Repeate Repeated d purchas purchase e behavio behaviour ur are conside considered red as necessa necessary ry conditi conditions ons for brand brand loyalty loyalty followed followed by Perceive Perceived d value, value, satisfa satisfactio ction n and brand trust. Frederick Reichheld, one of the most influential writers on brand loyalty,
claimed that enhancing customer loyalty could have dramatic effects on profitability. Among Among the benefits benefits from brand loyalty - specifi specifically cally,, longer longer tenure tenure or staying staying as a customer for longer - was said to be lower sensitivity to price. This claim had not been empiric empirically ally tested tested until until recently recently.. Recent Recent research research [found found evidenc evidence e that longer-t longer-term erm customers were indeed less sensitive to price increases. 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 needs a persona personality lity.. Just like a person person without without attentio attention-gr n-grabb abbing ing charact characteris eristics tics,, 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.
From the design of a new product to the exten extensio sion n of a matu mature re brand brand,, effe effecti ctive ve mark marketi eting ng strate strategi gies es depe depend nd on a thorough understanding of the motivation, learning, memory, and decision processes that that infl influe uenc nce e what what cons consum umer ers s buy buy Theo Theori ries es of cons consum umer er beha behavi vior or have have been been repeatedly linked to managerial decisions involving development and launching of new products, segmentation, timing of market entry, and brand management. Subsequently, the issue of brand loyalty has been examined at great length. Branding is by far one of the most important factors influencing an item's success or failure in the marketplace, and can have a dramatic impact on how the "company behind the brand" is perceived by the buying buying publi public. c. In other other words words,, the brand brand is not just a repre represe senta ntatio tion n of a company's product; it is a symbol of the company itself, and that is where the core of brand loyalty lies.
Research Methodology
Exploratory and conclusive research.
Collection of Primary and secondary data.
Source of primary and secondary data.
Collect the data by simple random survey.
Suitable statistical tool to be apply for analyses the data.
