What is Brand Loyalty?

Learn about brand loyalty with Priety Zinta
YouTube video

Case breakdown: Movie Dil Hain Tumhara

The scene that you just saw shows Shalu (played by Priety Zinta) promoting a brand called ” Refresh”. She is showing the response of the brand to the public. It also shows the marketing strategy that the company is adopting to promote the brand.

In this blog, Learning Perspectives will explore the meaning of brand loyalty.

What is Brand Loyalty?

Brand loyalty relates to the positive association of a consumer with the brand. Customer is truly faithful to the product and services offered by the brand, even though the competitor would launch a product that is similar and cheaper in nature. Customers form a bond or loyalty towards the product.

What is brand loyalty?

Brand Loyalty for different Products:

This is largely seen in Coca-Cola and Pepsi consumers. Both aerated drinks have a strong and devoted fan base. Consumers who are loyal to Coca-Cola do not switch to Pepsi when Pepsi reduces the price of the product. This scenario is also visible in Nestle’s Maggi. Ardent followers of Maggi noodles don’t shift easily towards Top Ramen or other brands. Loyal customers stick to the brand even if prices are higher.

Brand loyalty can be seen through repeat purchases of the product or service that the brand offers. Brand loyalty is created through marketing campaigns. Similar to what we saw in the scene. Marketing departments study customer trends to understand their tastes and preferences over time. Some trends can become static over time while many can evolve. Marketing departments thoroughly study these trends to determine customer behavior. As we can see in the scene, Shalu is interviewing customers to understand their responses to their product.

Brand Ambassadors:

Companies also try to create a brand ambassador for their product. These are spokespeople of the product who speak positively about the product. With their presence, many consumers are influenced to buy the product. Similar to the scene that we saw, shows the brand ambassador as Samir (played by Jimmy Shergil) who is a puppeteer in the town (Palampur). He has an exceptional image in the town, where the product ‘Refresh’ has been launched. Influencing consumers with his word might go a long way.

Losing Brand Loyalty:

Companies can lose brand loyalty from customers if proper research is not done on a regular basis. Customer tastes and preferences change with time and hence their buying habits can also change. If a consumer loses trust in the brand, then brand loyalty would be shifted.

Examples:

What is brand loyalty?

In 2003, Cadbury had 70% of the chocolate market share. Their chocolates were infested with worms. This again led to loyalty shifting. Excessive lead was found in Nestles’ Maggi in 2015. This was a serious blow to the brand as it was awarded the most trusted brand in India by Brand equity in 2014. According to the World Instant Noodles Association, India consumed 5,340 million cups or bags of instant noodles in 2014.

Even after the controversy, many people shifted back to Maggi, and its market share almost doubled in size since 2010 when it accounted for 2,940 million units.

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