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The Arduous Path to Brand Loyalty

Volume 14, Number 2 Article by B S Bhatia , Anupam Bawa September, 2002

The Arduous Path to Brand Loyalty :

Brand loyalty is a highly sought after goal. But how do some of the commonly used marketing strategies fare vis-à-vis this goal? B S Bhatia and Anupam Bawa explored the relationship of nine elements of marketing strategy — market share, competitive strategy, pricing strategy, promotion scheme, advertisement, perceived level of advertising, media used for advertising, factors influencing first purchase and type of distribution outlet used — to brand loyalty. Data was collected from 300 households, both rural and urban, belonging to all income groups, in two districts of Punjab and in Chandigarh. The products included in the scope of the study were four Fast Moving Consumer Goods (FMCGs) — detergent powder, packaged tea, toilet soap and tooth paste. Brand loyalty was measured with the help of a multi item scale. The chi square test was used to test the hypothesis.

The findings revealed that very few of the commonly used elements of marketing strategy were unequivocally related to brand loyalty. In a market marked by overall high attraction for promotion schemes, the brand loyal differed significantly from the rest because of their ability to resist the lure of promotion schemes. For three out of the four products studied, the high market share brands did better than the others, when it came to securing brand loyalty. Surprisingly, some of the commonly used marketing tools not related to brand loyalty were exposure to advertising, media in which advertised and type of distribution outlet. Great inter-product variation in the relationship of some elements of marketing strategy to brand loyalty points to the need for further research as well as the dangers that lurk behind all encompassing labels like FMCGs. The elements showing great variation were competitive strategy (overall cost leadership, differentiation, focus), pricing strategy (market penetration, moderate pricing and market skimming) and factors influencing first purchase.

Managers looking for speedy means to build brand loyalty will realise that the path to brand loyalty is arduous. In the words of an expert, "At a time when productivity in manufacturing is rising steadily, marketing seems to be getting more expensive and less effective.... Instead of trying to work creatively within traditional brand management, we need to find a new model altogether".

Reprint No 02304