THE RELATIONSHIP BETWEEN BRAND LOYALTY AND COMPANY’S GROWTH (A CASE STUDY OF CRUNCHIES FRIED CHICKEN LIMITED)
- BACKGROUND OF THE STUDY
According to Anyanwa (2011) brand loyalty is a consumer preference to buy a particular brand in a product category. It occurs because consumers perceive that brand offers the right product features, image or level of quality at the right price. This perception becomes the foundation for new buying habits.
Basically, consumer initially will make a trial purchase of the brand and after satisfaction, tend to form habit and continue purchasing of the same brand because the product safe and familiar on the aspect the growth of company will increase from the normal stage to higher level of product.
According to Mavis (2008) he observed that brand loyalty has a very vital relationship with the company growth in such a way that higher sales volume leads to business growth. It leads to consistent and even greater sales since the same brand is purchased repeatedly. Premium pricing ability shows that as brand loyalty increases, consumers are less sensitive to price change.
Generally, they are willing to pay more for their preferred brand because they perceive some unique value in the brand, that other alternative do not provide. It is a backbone to company growth. additionally, brand loyalists buy less frequently on cents-off deals, these promotion only subsidized planned purchase.
When people want to buy a product or a service a brand reputation (either strong or weak) is like to affect their purchasing decision.
According to Klass (2011) he defined a brand as a name, symbol, design or mark that enhance the value of a product beyond its functional purpose. Brand loyalty play an important role and are accepted in generating business and sustaining growth.
Nwachukwu (2000) says that having a strong brand does not only help a company to differentiate itself from its competitor, it also create positive communication to satisfy and convince customers.
When a company wants to develop new product or service, brand loyalty has to play a significant role in its decision making process.
The function of brand loyalty is not only to enhance the value of product beyond its functional purpose, but it also related to trust, perceived quality and enhancing company growth. white head (2010).
- STATEMENT OF PROBLEM
The challenges many companies face when trying to grow in competitive environments. Achieving even 1 percent annual growth requires increasing sales to customers, both existing and new, by 14 percent. Reducing customer can dramatically improve business growth and even bring greater sales since the same brand is purchased repeatedly. But must companies fail to acknowledge this fact, rather aiming at high profits making without due consideration of product quality.
Most companies fail to develop their unbeatable product, if they want to keep customers, they have to make sure that they can get what they want from the product.
Most companies do not give customers an incentive to repeat-purchase. Chance to win a prize, gift with a certain number of proofs of purchase, in pack discount coupons etc. of which these can bring growth to the company by having more sales.
Some of this problem includes:
- Lack of Centralized Repository for Product Content: There is no centralized repository, content is scattered across multiple platform making the right file difficult to source.
- Lack of Mental Ability to Coordinate and Integrate all the Organization Interest and Activities: This involves the administration ability to set the organization as a whole and to understand how it part depend on each other.
- Lack of Sharing Product Content: Sharing product is a nightmare. Brands are stuck doing administrative task like emailing image instead of focusing on being strategic.
- PURPOSE OF THE STUDY
The main objective of this study is to examine the relationship between brand loyalty and company’s growth.
- To examine whether brand loyalty improves customers satisfaction when purchasing.
- To examine the important of brand loyalty in service delivery.
- To examine whether brand loyalty contribute to company growth.
To examine whether consumers are less sensitive