Brand loyalty

Brand 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 behaviours such as word of

mouth advocacy.

Brand loyalty is more than simple repurchasing, however. Customers may

repurchase a brand due to situational constraints (such as vendor lock-in), a lack

of viable alternatives, or out of convenience.  Such loyalty is referred to as

"spurious loyalty". True brand loyalty exists when customers have a high

relative attitude toward the brand which is then exhibited through repurchase

behaviour. 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.

From the point of view of many marketers, loyalty to the brand — in terms of

consumer usage — is a key factor.

4 types of customers or brand users.

Hard Core Brand Loyalists: These are customers who remain loyal to a single brand.

Soft Core Brand Loyalists: These are customers who remain loyal to 2-3 brands at a time.

Shifting Brand Loyalists: Shifting brand loyalists are those who keep shifting from one brand to another.But

they can come back to the brand towards which they were loyal.

Switchers: The switchers always look for new brands.They prefer to experiment with different brands.At times

they also switch to new brands because of price change.

A few more points to keep in mind

• Develop an unbeatable product - if you want to keep customers, make sure they can get

what they want from your product.

• Give customers an incentive to repeat-purchase - chances to win a prize, gifts with a

certain number of proofs of purchase, in-pack discount coupons, etc.

• Stand behind your product – if customers don’t trust the product, they won’t purchase it

again.

• Know your trophy customers and treat them best of all – remember the rule that 80

percent of sales will come from the top 20 percent of customers.

• Make it easier to buy your brand than competing brands – availability and simplicity

are keys in today’s high-speed world. Customers appreciate convenience more than ever.

• Go to your customers - bring the product to customers when possible.

• Become a customer service champion – seek

to serve the customer and they will repeat-purchase…again and again!

List of Products Marketed:

Breadspreads:

Amul Butter

Amul Lite Low Fat Breadspread

Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozarella) Cheese

Amul Shredded Pizza Cheese

Amul Emmental Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese)

Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

Amul Amrakhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix

Avsar Ladoos

UHT Milk Range:

Amul Shakti 3% fat Milk

Amul Taaza 1.5% fat Milk

Amul Gold 4.5% fat Milk

Amul Lite Slim-n-Trim Milk 0% fat milk

Amul Shakti Toned Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

Pure Ghee:

Amul Pure Ghee

Sagar Pure Ghee

Amul Cow Ghee

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6 months)

Amul Infant Milk Formula 2 ( 6 months above)

Amulspray Infant Milk Food

Milk Powders:

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardised Milk 4.5% fat

Amul Slim & Trim Double Toned Milk 1.5% fat

Amul Saathi Skimmed Milk 0% fat

Amul Cow Milk

Curd Products:

Yogi Sweetened Flavoured Dahi (Dessert)

Amul Masti Dahi (fresh curd)

Amul Masti Spiced Butter Milk

Amul Lassee

Amul Icecreams:

Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted

Almond)

Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black

Currant, Santra Mantra, Fresh Pineapple)

Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)

Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch,

Megabite, Cassatta)

Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)

Chocolate & Confectionery:

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Brown Beverage:

Nutramul Malted Milk Food

Milk Drink:

Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose,

Chocolate)

Amul Kool Cafe

Amul Kool Koko

Amul Kool Millk Shaake (Mango, Strawberry, Badam, Banana)

Health Beverage:

Amul Shakti White Milk Food

Questionnaire

Name :

Age:

15 to 25 25 to 35 35 to 45 45 & above

Gender: Male Female

Occupation

Student Employee Other

Q1: Have you ever purchased Amul Butter?

Yes No

Q2: How many members are there in your family?

2 – 4 5 – 8

9 -12 12 & above

Q3: How often do you consume Amul Butter?

All the days Frequently Occasionally Not at all

Q4: How often do you purchase Amul Butter in a month?

Once in 7 days Once in 15 days Once in 3 weeks Monthly once

Q5: Do you go for

Branded butter Local butter

Q6: Which brand of butter you perfer to purchase to your family?

Amul Butter Mello Butter Nutralite Butter Britannia Butter

Q7: Which brand you are using currently?

Amul Butter Other. . . . . . . . . . . . . .

Q8: How did you come to know about Amul Butter?

Not heard Friends Display Family Media

Q9: Where do you usually purchase the Amul Butter?

Departmental stores Shopping mall Both Grocery shop

Q10: Usually what size you will purchase Amul Butter?

Small Medium Large

Q11: Why do you prefer to buy Amul Butter?

Quality Price Taste Availability

Q12: Compared to last purchase has your present consumption of purchase of Amul Butter?

Increased Some what increased No change Decreased

Q13: Rate the satifaction level of Amul Butter based on :-

(5 Max)

Quality Value Price Availability

Q14: Are you completely satisfied with the Amul butter?

Yes No

Q15: Have you ever encounter any Quality problem regarding Amul Butter?

Yes No

If yes, what is the nature of complaints?

Q16: Any suggestion for improvement:-

TABLE 3.1

TABLE SHOWING RESPONDENTS AGE

Age No. of Respondents Percentage

15 – 25 12 50%

26 – 35 6 22%

36 – 45 3 12%

46 & above 4 16%

Total 25 100%

(Source: Primary Data)

CHART

50%

22%

12%

16%

Age

15 - 2526 - 3536 - 4546 & above

INTERPRETATION

Almost half of the respondents are of the age group of 15 – 25 years where as 22% of the

respondents are of the age group of 26 – 35 years. Only 12% and 16% are of the age group of

36 – 45 years and 46 year and above.

TABLE-3.2

TABLE SHOWING OCCUPATION OF RESPONDENTS

Occupations No of respondents Percentage

Students 12 50%

Employee 7 26%

Others 6 24%

Total 25 100%

(Source: Primary Data)

CHART

50%

26%

24%

Occupation

studentsemployeeothers

INTERPRETATION

Around 50% of the respondents are students where as other 50% are employee and

are of other occupations which 26% and 24% respectively.

TABLE-3.3

TABLE SHOWING COMSUMTION OF AMUL BUTTER

Consumption No. of respondents Percentage

All the days 9 38%

Frequently 8 32%

Occasionally 7 28%

Not at all 1 2%

Total 25 100%

(Source: Primary Data)

CHART

38%

32%

28%

2%

Consumption

All the daysFrequentlyOccasionally4th Qtr

INTERPRETATION

Around 38% of the surveyors consumed amul butter all the days of the week where

as 32% have it frequently and still yet 28% have it occasionally and hardly 2% voted

that they don’t have it at all.

TABLE - 3.4

TABLE SHOWING FREQUENCY OF PURCHASE OF AMUL BUTTER

Purchase No. of respondents Percentage

Once in 7 days 9 34%

Once in 15 days 8 34%

Once in 3 weeks 3 14%

Monthly once 5 18%

Total 25 100%

(Source : Primary data)

CHART

34%

34%

14%

18%

Purchase

Once in 7 daysOnce in 15 daysOnce in 3 weeksMonthly once

INTERPRETATION

When the candidates were asked about the frequency of their purchases, it was seen

that around 34% purchases butter every week whereas the next 34% purchase it every

fortnight. Around 14% purchases butter in every 3 weeks whereas the rest 18%

purchases it every month.

TABLE – 3.5

TABLE SHOWING RESPONDENTS PREFERENCE

Preference No. of respondents Percentage

Branded 25 100%

Local 0 0%

Total 25 100%

(Source : Primary Data)

CHART

1

Preference

BrandedLocal

INTERPRETATION:

When the people were asked of their choice for branded or local butter, 100% of them voted for branded.

TABLE 3.6

TABLE SHOWING BRAND PREFERRED

BY THE RESPONDENT TO PURCHASE BUTTER TO THEIR FAMILY

Brands No. of respondents Percentage

Amul Butter 17 68%

Mello Butter 3 12%

Nutralite Butter 3 12%

Britannia Butter 2 8%

Total 25 100%

(Source : Primary Data)

CHART

68%

12%

12%

8%

Brand

Amul ButterMello ButterNutralite ButterBritannia Butter

INTERPRETATION:

Among the various butter brands available in the market about 68% prefer amul butter, 12% each for nutralite and mello butter and the rest 8% prefer Britannia.

TABLE - 3.7

TABLE SHOWING CURRENTLY USING BRAND

Brands No. of respondents Percentage

Amul butter 18 74%

Others 7 26%

Total 25 100%

(Source: Primary Data)

CHART

74%

26%

Brands

Amul ButterOther

INTERPRETATION

When asked the people about their current usage, 74% replied that they were currently using amul butter whereas only 26% said that they were using other brands.

TABLE – 3.8

TABLE SHOWING HOW THE RESPONDENTS CAME TO KNOW

ABOUT AMUL BUTTER

Information No. of respondents

Percentage

Not heard 0 0%

Friends 7 28%

Displays 5 18%

Family 4 18%

Media 9 36%

Total 25 100%

(Source : Primary Data)

CHART

28%

18%

18%

36%

Information

Not HeardFriendsDisplaysFamilyMedia

INTERPRETATION

When I asked the people that how did they got to know about the product, if ever then maximum number of them (more than 60%) said that they have heard about it from media or from friends whereas 36% said that they have heard about it from family and display of hoardings and banners.

TABLE – 3.9

TABLE SHOWING PLACE WHERE RESPONDENTS USUALLY

PURCHASE AMUL BUTTER

Place No. of respondents Percentage

Departmental stores 8 32%

Shopping malls 7 26%

Both 3 14%

Grocery shop 7 28%

Total 25 100%

(Source : Primary Data)

CHART

32%

26%

14%

28%

Sales

Departmental StoresShopping mallsbothGrocery shop

INTERPRETATION

It was observed that more than 72% buy amul butter either from departmental stores or malls or both of them whereas the rest of them buys it from groceries.

TABLE – 3.10

TABLE SHOWING SIZE PREFERED FOR PURCHASE

Packaging No. of respondents Percentage

Small 7 30%

Medium 7 28%

Large 11 42%

Total 25 100%

(Source : Primary Data)

CHART

30%

28%

42%

Sales

SmallMediumLarge

INTERPRETATION

About 42% of the surveyors said that they buy a large pack of amul butter whereas 30% said that they go for small sizes and the rest 28% go for medium sizes.

TABLE – 3.11

TABLE SHOWING PREFERENCE OF AMUL BUTTER

Preference No. of respondents Percentage

Quality 7 28%

Price 3 14%

Taste 6 24%

Availability 9 34%

Total 25 100%

(Source : Primary Data)

CHART

28%

14%

24%

34%

Prefernce

QualityPriceTasteAvailability

INTERPRETATION

When the people were enquired about the reason of their preference for amul butter 34% replied that it was easily available, 28% bought it because of quality, 24% because of taste and 14% because of price.

TABLE – 3.12

TABLE SHOWING PRESENT CONSUMPUTION OF AMUL BUTTER

Consumption No. of respondents Percentage

Increased 6 26%

Some what increased 7 26%

No change 7 30%

Decreased 5 18%

Toal 25 100%

(Source : Primary Data)

CHART

26%

26%

30%

18%

Consumption

Increased Some what increasdedNo changeDecreased

INTERPRETATION

More than 50% of the people surveyed said that there was an increase in the consumption of their butter and the rest said that there was no change or it decreased.

TABLE – 3.13

TABLE SHOWING RESPONDENTS OPINION ABOUT THE

PRICE OF THE AMUL BUTTER

Priced No. of respondents Percentage

Low 1 6%

Reasonable 10 40%

High 7 28%

Very high 7 26%

Total 25 100%

(Source : Primary Data)

CHART

6%

40%

28%

26%

Priced

LowReasonableHighVery high

INTERPRETATION

The people had the combined opinion that the product was expensive as hardly 6% said that it was low priced. Rest all of them said that the price was high.

TABLE 3.14

TABLE SHOWING RESPONDENTS OPINION FOR THE COMPLETE SATIFACTION WITH AMUL BUTTER

Satisfied No. of respondents Percentage

Yes 20 80%

No 5 20%

Total 50 100%

(Source: Primary Data)

CHART

80%

20%

Satisfaction

yes no

INTERPRETATION

80% of the respondents said yes that are being satisfied with the product where as only 20% of them said no.

TABLE 3.15

TABLE SHOWING RESPONDENTS OPINIONS ABOUT PROBLEM / COMPLAINTS REGRADING AMUL BUTTER

Problem

No. of respondents Percentage

Yes 5 22%

No 20 78%

Total 25 100%

(Source: Primary Data)

CHART

22%

78%

Problem

yes no

INTERPRETAION

As if now only 22% of the respondents have encountered problem with the product where as 78% of them have not faced any problem with the product

ANALYSIS

1. Most of respondents are young, students their input for the survey. They majorly contribute to the consumer population.

2. This shows that survey hold the majority of the students that is 100%

3. The number of respondents in the survey are 10 and out of them 56% of them are males and remaining are females.

4. The table concludes that Amul Butter is consumed on almost daily basis. This shows that butter is popular among the population and is an integral food product consumed by the masses.

5. Based on previous interpretations and current survey, most of the people ( more than 50%) consumes it on regular basis and also the frequency of purchase is majorly once in week, concludes that there is a heavy consumption ( and purchase) of Amul butter by the people.

6. The previous survey showed us that the people consume butter heavily. But people, today are aware of the practices and are health conscious. Hence forth they prefer a branded butter since branded products follow the standards for the preparation of butter, so that the quality and essence of the butter is maintained.

7. Table 3.6 shows that our brand is the most popular brand among the people. And Mello Butter is the secondly popular among the people followed by Nutralite Butter and Britannia Butter.

8. Amul Butter is the mostly used butter by the people.9. The fact that no one voted for “not heard” shows that the brand is well reached in the

market. Also, since Amul is the old brand (since white revolution), it is an well established brand and has maintained its reputation by ensuring the delivery of quality product regularly. The brand name is heard from the people since last two decades.

10. The availability of the Amul butter is very good. It is easily available and bought from various places.

11. The study shows that Amul Butter is available in different qualities and all the available packs are almost equally popular. This also shows that Amul targets all the classes of population, according to their needs.

12. The survey shows that Amul butter has maintained standards in all the fields such as quality, price, taste and availability. Major factor which contribute to people preferring Amul Butter is its quality which it has maintained and high availability of the product in the market.

13. The taste of the product and its easily availability are the major reasons behind the increase in consumption of Amul butter.

14. This study shows that the product is priced high according to the respondents.