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Role of Product Branding in Building Customer Loyalty and Life Time Value

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Role of Product Branding in Building Customer Loyalty and Life Time Value

Case Study: Nestle

Research Project

By Naveed Ashraf

Student ID: 100429359

University Of Derby


I am grateful to a number of people for their contributions in finishing this thesis. First of all, I am thankful to my professor for all his support, exuberance, solitaire and counseling throughout my thesis. I could not have any better mentor and consultant for my thesis. I am in addition to grateful to the dissertation committee for wholly their intuitive annotates, difficult questions and most of all encouragement.  Besides, I'd take this chance to truly thank my parents as following on me and supporting me throughout my lifetime


This research study is an effort to analyse the function of product branding in order to build purchaser commitment for Nestle UK. Consumer purchasing conduct is change and people recognized each other by the brand they use. This phrase brand applies so much grandness for the seller and the buyer as well. As the ideas that the branded products better serve the individual and his demands is persisting with every passing day. Loyalty for brands is extremely significant in the sectors where there are brands that are well based. While, in case of fragmented markets, wherever production of a small and brands that are not well known exists, the brands do not compete solely based on their names. In some of the markets, the communication of product bases on its attributes is highly critical. For example, food market which is defined globally by a number of smaller brands. For this research study both qualitative and quantitative methods of research have been adopted. A questionnaire has been formulated to be filled by 100 consumers of Nestle UK in order to test their loyalty for the brands and the effect the product branding has on the customer loyalty. Three questions have been carried with the brand managers of the Nestle Inc. in order to know the part that merchandise branding building the buyer commitment. The results of the dissertation have shown that the analysis of the questionnaire have highlighted that the responders are extremely satisfied with Nestle products and they don't want to change to some other brand. By the answers of the consumers it's apparent that they'd not want to change over any other brand besides Nestle UK. The interviewees told that for the aim of making customer loyalty it is critical to make relationship of trust between the objective audience and the brand you're offering them. They also said that it's a reality that the visible materials are related to the initiation of branding. Nestle UK must concentrate on maintaining the trust between the buyers and the organisation so to build up more potent relationship


Role of Product Branding in Building Customer Loyalty and Life Time Value        1

Case Study: Nestle        1

2.5 Significance of Customer Loyalty        9

2.7 Factors Having an Influence on Customer Loyalty        10

2.8 Strategies of Customer Loyalty        12

2.9 Role of Product Branding in Customer Loyalty        13


3.1 Introduction        13

CHAPTER 04: RESULTS        16

4.1 Introduction        16

4.2 Questionnaire Analysis        16


5.1 Introduction        32

5.2 Discussion        32


6.1 Conclusion        33


7.1 Recommendations        34

7.2 Implications        35

REFERENCES        35

Chapter 01: Introduction

  1. Background of Study

Consumer purchasing behaviour is changing everyday nowadays people recognise each other by the brand they use. The word brand is very crucial and holds importance for marketers and buyers. The idea that the branded products serve the person’s need best is prevailing day by day. The competition among advertisers was not that fierce in the past but now the situation has changed and every one of the producers or merchants have related themselves with some specific name, logo, outlines or motto. Branding of a product and marketing of a product has become same thing which is an issue. Branding of a product or as a company as whole precedes marketing because branding is a process of creating unique style, design, qualities, image and uniqueness of a product to sell to consumer and imprint their brand name in consumer’s mind.

Customer loyalty has become something more of customer satisfaction rather than loyalty according to Harvard business school customer loyalty is the intention of the customer to continue the business with a company. According to Peppers and Rogers (2010, p.40-47) “the loyal customer is the one who is so much happy with the company that he decided to make the company his supplier, loyal customers are not going to switch the brands merely for small amount of money or service instead of this they provide the feedback to their company and they provide referrals as well”. The American association of Marketing describe brand “as a name, term, sign symbol, design or a combination of all of them which aims at identifying the service of the seller and make it different from the other seller that is they give the competitive edge to the company”. According to Clifton (2010) branding is the process of giving brand unique name, logo, design and image of a product in customer’s mind and in market as well.



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