Building Brand Loyalty by Innovative Marketing Strategies

By

ACKNOWLEDGEMENT

This research became possible only because of support from my research supervisor and my loved ones. Hence, I would like to say thanks for their support.

DECLARATION

This research is my own work and does not represent the ideas of the university. This project belongs to me and only me.

ABSTRACT

This research will focus on how to build brand loyalty through innovative marketing strategy. The researcher used mixed research for this purpose. This study discussed the following research question. How innovative marketing strategies of Apple Inc. can help in building brand image? Why building brand loyalty is important? And what is the impact of innovation on customer? The researcher chose the Apple Inc. for this research.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background1

Company profile2

Problem statement3

Research objectives3

Research questions3

Significance4

CHAPTER 2: LITERATURE REVIEW6

Brand Loyalty6

Brand Building9

Brand Positioning9

Brand Equity10

Brand Image13

Antecedents of Brand Loyalty14

Utilitarian and Hedonic Benefits15

Brand Trust and brand affect15

Review of Research Streams17

Research in the "A" stream (Attitudinal perspective)17

Research in the "B" stream (Behavioral perspective)19

Research in the "C" stream (Combined perspective)20

The Effect of Brand Loyalty and Marketing Actions on Brand Behaviors22

Brand choice23

Marketing Mix32

Product32

Place33

Promotion33

Price33

CHAPTER 3: METHODOLOGY34

Mixed Research34

Classification of research methods34

Multi-method studies35

Mixed method studies35

Steps in mixed methodology35

Strength and weakness of the mixed research36

Instrument for data collection37

Questionnaire design37

Data analysis37

Sampling method38

Ethical Considerations38

CHAPTER 4: DISCUSSION39

Apple marketing strategy39

Strategic used by Apple Inc.40

Cost & Differentiation Strategy41

Globalization Strategy41

Future Strategies by Apple41

Ignoring criticism42

Experience Curve43

Production of the value chain43

Differentiation44

Generic Strategy44

The Competitive Advantage of Nations45

Questionnaire analysis46

CHAPTER 5: CONCLUSION54

REFERENCES58

APPENDICES61

CHAPTER 1: INTRODUCTION

Background

This research will focus on building brand loyalty through innovative marketing strategies. Building brand loyalty is very important in this competitive world. Every company is striving to gain an edge over the competitors. Customers takes second to switch brand and in such an environment it is very important to build brand image. There are various methods through which brand image can be built in the consumer mind but this research will focus on building brand image through innovative marketing strategies (Aaker 2003 83).

Marketing consultant Jon Berry (1996) has pointed to the "quality equality" quandary in which many marketers find themselves. By offering high quality products marketers hope to produce satisfied customers ensuring the continued growth, success, and profitability of their firm. However, with the ongoing phenomenon of "quality equality," marketers are unable to differentiate themselves solely on the basis of quality given the uniformly high quality of market offerings. Both the scholarly literature and the business press are now unanimous in pointing to loyalty - not customer satisfaction - as the key to profitability.

It is in the midst of struggle that the value of loyalty is most precious. This point is forcefully made by Hallberg (1995, p. 52), who notes that "Nowhere is brand loyalty more critical to profitability than in the dog-eat-dog world of packaged-goods marketing, where mature markets and mature brands are the norm and the battleground is share of market." Brand loyalty is not only critical to the profitability of packaged-goods brands but to any market where the consequences faced by the customer as a result of switching are modest or ...