AIOU COL MBA Project Synopsis on Consumer Brand Loyalty

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AIOU COL MBA Project Synopsis on Comparison of Consumer Brand Loyalty 

Brands play a fundamental part in t consumer markets because of theirability of providing value for both the company as well as consumers. Consumers view a brand as a main source of advantage or utility it provides from consumption, people have different needs and wants often an individual will purchase a brand because it satisfies some or all their need and wants. Companies wants to provide good products to customers but wishes to maintain costs and earn profits, hence brands play an important role for both consumers and manufacturers.

MBA Project Synopsis development 

Strong and powerful brands are major assets for companies a strong brand can help make large profits and gain huge segment of the market. When a brand is self-sustaining in the long term it reduces marketing and advertising expenses because once a brand is successful in attaining and retaining customers then it needs little advertisements to make customers purchase their product at premium prices. As a result of the increasing competition that characterizes nowadays global markets, most companies’ have been encouraged to shift their strategic focus towards customer satisfaction, retention and brand loyalty (Chestnut 1978).

The success of a company depends over its capability to attract and retain customers to its brand. Essentially, it is very difficult for a company to retain existing customers as well as acquire new ones one solution to this issue is brand loyalty. A brand loyal customer will reduce marketing costs significantly over long period of time, companies can then depend on word of mouth advertising for new customers and markets Brand loyalty offers the company very effective trade leverage and loyalty to the firm’s brands represents a strategic asset that has been recognized as chief source of the brands equity.

AIOU COL MBA Project Synopsis

According to Guest (1942) Brand loyalty is a mental process or it is an earliest effort to satisfy a basic need or want. In this respect, branding is considered to be one of the prime mechanisms that allow organizations to establish such mutually beneficial and trusting long-term relationships with their customers as suggested by these new business orientations.

Pepsi and Coca cola are extremely dominant market leaders on the international beverage market, but they are also two of the most famous and extensively sold commercial brands in the world and every year spend billions of dollars on advertising campaigns and brand improvement. In 2004, Coca-Cola’s worldwide advertising budget exceeded $1.5 billion, while Pepsi’s advertising expenditure totaled $1.3 billion Coca-Cola brand has always been a celebrated brand worldwide with large segments of loyal customers similarly Pepsi enjoys a large loyal consumer base coca cola brand focuses on happiness, friendship and family oriented theme for its brand while Pepsi brand focuses on celebrities, adventure, adrenaline rush and youth. Brand loyalty could also be quantified using the brand specific intercepts in market-share attraction models (Cooper and Nakanishi 1988.

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