Presentation is loading. Please wait.

Presentation is loading. Please wait.

Presented by:  Dr. Emran Khan- Roll No. 21  Natasha Arora-Roll No. 1  Carl Fernandes-Roll No. 11  Abbas Shaikh-Roll No. 234  Althea Rasquinha-Roll.

Similar presentations


Presentation on theme: "Presented by:  Dr. Emran Khan- Roll No. 21  Natasha Arora-Roll No. 1  Carl Fernandes-Roll No. 11  Abbas Shaikh-Roll No. 234  Althea Rasquinha-Roll."— Presentation transcript:

1

2 Presented by:  Dr. Emran Khan- Roll No. 21  Natasha Arora-Roll No. 1  Carl Fernandes-Roll No. 11  Abbas Shaikh-Roll No. 234  Althea Rasquinha-Roll No. 39  Amit Kate- Roll No. 20

3  E.g. Dr.Emran loves to have coffee in Barista  Ms.Natasha loves to fly by Kingfisher  Mr.Carl loves to shop in Shoppers Stop  Mr.Abbas loves to watch in Cinemax  Ms.Althea loves to work out at Golds Gym

4

5 Why talk about Loyalty Mature Industry –increasing competition Focus on getting more customers –Market share Vs. share of customer Competitive advantage –Price –Service quality –Loyal relationships

6  Brand Loyalty consists of a CONSUMER’S commitment to repurchase or otherwise continue using the BRAND  It can be demonstrated by REPEATED BUYING of a product or service or other POSITIVE BEHAVIORS such as word of mouth advocacy.

7  Customers are willing to pay higher prices  Brand loyalty results in improved sales volume and the ability to charge a premium price.

8  Behaviors: › Come back frequently › Buy most expensive products › Recommend provider to friends › Give important suggestions  Emotions: › Are attached to the provider/staff › Trust the provider › Resist changing despite competitors’ persuasion › Willing to forgive mistakes

9  Definition: customers with a long record of purchases from a preferred provider caused by their psychological and emotional bond with that provider  Are there various types of loyalty?

10  Hardcore Loyals - who buy the brand all the time.  Softcore Loyals - loyal to two or three brands.  Shifting Loyalty - moving from one brand to another.  Switchers - with no loyalty (constantly looking for bargains)

11 Once you build brand loyalty you need to maintain it by various means. Customer can switch to another brand for various reasons. Unavailability of a service or product. Price rise Degraded quality. Brand Loyalist not getting value for money

12  People often make purchasing decisions based on how a brand makes them feel emotionally rather than based on quality or other objective evaluations.  If “Just Do It” strikes a chord with an athlete, he’ll buy Nike; the decision may have little to do with quality.

13  Building brand loyalty can be much like taking care of a pet.  It has less to do with the brand you feed them, and more to do with the way you treat them.  As long as you continue feeding and loving your pet he will return your love by loving you.

14  Differentiate yourself  Create a position  Be consistent and persistent  Customise your services

15  Develop an unbeatable product  Give customers an incentive to repeat purchase  Stand behind your product/ service  Know your trophy customers Pareto 80/20 rule  Make it easier to buy / use your product/ service  Go to your customers  Become a customer- service champion  Marketing Stunts to create Brand Awareness

16  Brand marriages - not created overnight  Brand marriages are not static  Reciprocal Relationship : Mutual Benefit  Attributes Vs Benefits

17  There are different approaches for measuring brand loyalty. OBSERVATIONAL METHOD:  BUYER BEHAVIOR  FORCED CHOICE METHOD Observational Method Creating Economic & Psychological Barrier

18 PSYCHOLGICAL & ECONOMIC BARRIER:  Economic Barrier  Sociological Barrier

19 Maybe

20  Promise Should be 1) Credible 2) Compelling 3) Connecting

21 “Guaranteed Hair Growth in 3 days” Chamanlal & Sons  Established 1903

22

23

24

25 Passion Pride Integrity Confidence

26  Confidence :  Integrity :  Pride :  Passion :

27  Product  Place  Promotion  Price  People

28  Same Brand different relationships  Same brand – happy marriages and Divorces  E.g.  Prof Kamaths experience with Bharti Axa life Insurance.

29 The Bottom Line Reduction of 5% of defective customers may result in 80% increase in profitability (Reichheld & Sasser, 1990) 90% of customers who love a company will repeat but only 30% of customers who like the company will repeat (Opinion Research Corp.) 20-40% of your customers bring 80% of your profits

30 2009 Brand value 2008 Brand value Percent change ($millions) (%) 11Coca-Cola 68,734 66,667 0.03U.S. 22IBM 60,211 59,031 0.02U.S. 33Microsoft 56,647 59,007 -0.04U.S. 44GE 47,777 53,086 -0.1U.S. 55Nokia 34,864 35,942 -0.03Finland 68McDonald's 32,275 31,049 0.04U.S. 710Google 31,980 25,590 0.25U.S. 86Toyota 31,330 34,050 -0.08Japan 97Intel 30,636 31,261 -0.02U.S. 109Disney 28,447 29,251 -0.03U.S. 1112 Hewlett- Packard 24,096 23,509 0.02U.S. 1211 Mercedes- Benz 23,867 25,577 -0.07Germany 1314Gillette 22,841 22,069 0.04U.S. 1417Cisco 22,030 21,306 0.03U.S. 1513BMW 21,671 23,298 -0.07Germany 16 Louis Vuitton 21,120 21,602 -0.02France 1718Marlboro 19,010 21,300 -0.11U.S. 1820Honda 17,803 19,079 -0.07Japan 1921Samsung 17,518 17,689 -0.01S. Korea 2024Apple 15,443 13,724 0.12U.S. Rank 2009 Rank 2008Employer Country of Ownership

31 Airline loyalty programs Miles are earned for usage. Special privileges are given on car rentals, hotel stays and dining out E.g.. Kingfisher King Club/Jet Club HP Petro Card Earn point on purchase of fuel which can be redeemed for free fuel.

32 Hotel loyalty programs Frequent users are given discounts, free and discounts in restaurants Eg. Taj Hotel - Inner Circle Club Malls Customers accumulate points for purchases in exchange for goods Eg. Shoppers Stop - First Citizens Club

33  People Power is most important to differentiate a brand from others due to competition  With Brands becoming interchangeable consumer has become the most powerful Brand Ambassador for a Company

34  “Consumers don’t buy medicines they buy results”  If a brand offers value it will command Loyalty  Consumers willing to pay premium  Stronger brands command loyalty, premium and trust  Brands that have value in consumer eyes hold great word of mouth Appeal

35  Like Successful Marriages – Brand Loyalty is not possible unless the customer gets emotionally attached to the brand  Brand Passion - ultimate Goal

36


Download ppt "Presented by:  Dr. Emran Khan- Roll No. 21  Natasha Arora-Roll No. 1  Carl Fernandes-Roll No. 11  Abbas Shaikh-Roll No. 234  Althea Rasquinha-Roll."

Similar presentations


Ads by Google