A Critical Evaluation of The Effectiveness of Branding on Customer Retention (GC01510)
Acknowledgement
First, I would like to give thanks to the Almighty God for giving me knowledge and wisdom to conduct a work like this research study. Then, I would give many thanks to my honorable supervisors, who has given me suggestions, directions and provided me available resources to conduct the research work. After that, I would appreciate to the libraries and publications of websites and journals, from which I have collected data to extend my knowledge and understanding on conducting the research work. Next, I would like to pray for my honorable parents who have supported me a lot with their finances, advice, and suggestions to develop my career. Finally, many thanks to my friends and classmates, who have supported me in my research work with their advice, suggestions, resources collections, and time contributions.
Abstract
The importance of branding and branding strategies have been significantly increasing over the last decade and today. A large proportion of customers prefer to purchase the products and services of from those organisations, which have a strong brand and branding as marketing strategy. In the current competitive business world, it is challenging for the organisations to retain their customers and make them loyal. This challenges have been more tougher because of aggressive market players, which offers quality foods with added values at competitive prices. In this competitive business environment, the buying decisions of customer depend on the company brand and branding strategies (Kotler et al., 2012). The advancement of technologies are providing huge information to the consumers about their favourite brands (Pennington and Ball, 2010). In a word, for gaining an improved customer loyalty business must perceived brand appeal and have effective and efficient branding strategies.
Although Sainsbury’s facing great challenges in competitive marketplace, it is growing up with its stronger sales and marketing strategies (Sainsbury’s Annual Report, 2014). However, it has been key challenge for Sainsbury’s to attract new customers, retain and make loyal them due to competitive rivalry. In addition, for gaining an strong brand appeal with improved equity, branding as marketing strategies has been under deep consideration of UK retail industry (Kotler et al., 2012) including Sainsbury’s. As a result, the retailers including Sainsbury’s looking for more effective marketing techniques to improve its brand equity. Although Sainsbury’s has perceived stronger brand appeal, it is facing challenges to gain competitive advantages and improve customer loyalty. Kotler et al. (2012) has found out a strong relationship between effective branding as marketing strategy and improved customer retention and loyalty. However, Sainsbury’s has poor ideas and conducted limited research on this issue. Therefore, conducting a research on this subject matter has been an important issue for Sainsbury’s.
The aim of the conducted research work is to evaluate the effectiveness of branding as marketing strategies on customer retention and loyalty level to recommend Sainsbury’s how it can apply its branding strategies more effectively to improve customer loyalty. The objectives of the undertaking research are: 1) To find out the branding strategies applied by Sainsbury to attract customers and retain and make them loyal; 2) To investigate into the current position of Sainsbury’s brand and its branding as marketing strategy; 3) To assess the impact of branding on customer retention and loyalty level; 4) To find out the weaknesses of Sainsbury’s branding as marketing strategy; and 5) To recommend Sainsbury’s on how it can improve its branding to improve customer retention and loyalty level.
The undertaken research has been beneficial in different ways. Firstly, it has extended the researchers knowledge and understandings on conducting a research study. It has guided how to introduce a research work, how to conduct a critical literature review, to define and formulate the research methods and methodologies including research philosophies, research approaches and designs, data collection methods and data analysis techniques. Then the undertaking research has taught the researchers how to collect data from the data field and participants. Next, it has developed the researcher’s concept on how to analyse the collected data using different analytical tools. Then, the research work has taught how to present the research findings. Following data analysis and research findings, the research work has give knowledge on how to conclude a research work.
Then, the undertaking research work has guided the researcher on how to recommend to the client, how to find out the research limitations, and the scope for further study. Finally, the conducting research has developed a concept as recommendations for the client, Sainsbury’s, which will support the Sainsbury’s to development its brand and branding strategy to improve customer retention and loyalty level.
The researcher has developed and formulated several methods and methodologies in undertaking research work. Firstly, the research has applied pragmatism strategy as the research philosophy, where the researcher developed both subjective and objective ontological views. In addition, the researcher has developed both analytical and positivist epistemological position in the research work. Then, the researcher has applied both inductive and deductive research approaches, where deductive approach has focused on literature review and the inductive approach has focused on primary data collected through interview and survey. The researcher has applied both qualitative and quantitative data collection methods in the research work.
The required data for the research work has come from both primary and secondary data sources. The key secondary data sources in the undertaking research were academic journals and books, several websites, and other statistical report developed by third parties. Primary data has been collected applying two particular methods: interview and survey.
Two different samples have been applied in the research work: one for survey and other one is for interview. For survey 50 customers were selected randomly, where the customers come from different locations and ages from 16 to 65 years old. 25 customers were male and 25 customers were female. The male and female customers have been grouped in 16-25, 26-34, 35-44, 45-54, 55-64, and 65+. From each group, 5 customers selected. On the other hand, for interview 5 management people from five different branches of Sainsbury’s have been selected. The researcher has physically met the participants and conducted a survey and interview face-to-face.
For analyzing the collected data the researcher has used several tools. For analyzing the quantitative data and testing the research hypothesis the researcher has used SPSS application, MS Excel Sheets, ANOVA, and Correlation Analysis. On the other hand, for analyzing the qualitative data the researcher has used content and themes analysis. To make the research data reliable and valid the researcher has followed the code of conducts of research ethics.
The research findings discloses that, the company brand and branding as marketing strategy have been contributing to attract customer towards particular brands. In addition, the research outcome has revealed that branding has a positive impact on customer loyalty. The study on Sainsbury’s has disclosed that its branding has been supporting its business to improve customer retention and loyalty level. However, Sainsbury’s needs to take some comprehensive measures to in its branding strategies to improve customer retention and loyalty level. Firstly, it should keep consistency in its quality and integrity. Secondly, it should improve its own-brands products ranges maintain quality. Thirdly, it should emphasize products comparing with competitors mainly Tesco. Fourthly, it should focus on the security and privacy of its online customers. Finally, it should provide more information about products and services through several channels mainly in websites, social networks to gain customer attractions.
CHAPTER 1: INTRODUCTION
1.0 Introduction
Gaining an improved customer retention and loyalty level has been the challenging issue for the UK retail industry. Thus, the retail industry is looking for effective and efficient techniques to improve market shares with improved customer retention and loyalty levels. As the marketing strategies, organizations are applying different techniques to attract customers, where the branding as marketing strategy is considered most importantly. As Kotler et al. (2012) notes, branding as marketing strategy is playing an important role in the organizational success of UK retail industry. Therefore, investigating and analyzing on branding as marketing strategy has come under deep consideration of UK retail sector, including Sainsbury’s, to find out how this technique can more effectively be applied to improve customer retention and loyalty.
1.1 Background of the Research
The undertaken research study has conducted on a particular company of UK retail industry, called Sainsbury’s . Sainsbury’s is one of the leading retail brand in UK retail industry, which is serving million of customers every week with its thousands of dedicated and devoted workforces. Sainsbury’s promises to provide quality of products with added values and competitive prices to its consumers. Although it is growing up, it is facing challenges to gain competitive advantages and retain and make loyal its customers (Sainsbury’s Annual Report, 2014). In the current competitive business world, it is challenging for the organizations to retain their customers and make loyal them. This challenging has been more tougher because of aggressive market players, which offers quality foods with added values at competitive prices. In this competitive business environment, the buying decisions of customer depend on the company brand and branding strategies (Kotler et al., 2012). The advancement of technologies are providing huge information to the consumers about their favorite brands (Pennington and Ball, 2010). In a word, for gaining an improved customer loyalty business must perceived brand appeal and have effective and efficient branding strategies.
Although Sainsbury’s facing great challenges in competitive marketplace, it is growing up with its stronger sales and marketing strategies (Sainsbury’s Annual Report, 2014). However, it has been key challenge for Sainsbury’s to attract new customers, retain and make loyal them due to competitive rivalry. In addition, for gaining an strong brand appeal with improved equity, branding as marketing strategies has been under deep consideration of UK retail industry (Kotler et al., 2012) including Sainsbury’s. As a result, the retailers including Sainsbury’s looking for more effective marketing techniques to improve its brand equity. Although Sainsbury’s has perceived stronger brand appeal, it is facing challenges to gain competitive advantages and improve customer loyalty. Kotler et al. (2012) has found out a strong relationship between effective branding as marketing strategy and improved customer retention and loyalty. However, Sainsbury’s has poor ideas and conducted limited research on this issue. Therefore, conducting a research on this subject matter has been an important issue for Sainsbury’s…………..
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