Assessing Consumer Brand Loyalty
A regional player involved in the production and marketing of various milk products. Since it was founded a decade ago, the company had grown significantly and had established a good presence in its existing market. Bikash Iyer, CEO of the company, wanted to expand the company's operations to two neighboring markets. But before that, he wanted a marketing research study conducted in its existing market to assess brand loyalty toward its products.
The study focused mainly on the analysis of marketing survey data to identify significant independent variables which have a big influence on the dependent variable i.e. brand loyalty of their products. With the data collected and tabulated, Iyer had to analyze and interpret the data and, based on this, take some vital decisions.
Bikash Iyer (Iyer), CEO of the Chennai-based SKM Pure Milk Products Pvt. Ltd. (SKM) in the southern Indian state of Tamil Nadu, was planning to expand SKM’s operations to two metros in neighboring states. Established in 1999, SKM had grown significantly and, as of 2010, had a good presence in Tamil Nadu.
Iyer planned to adopt the same strategy that had made SKM successful in its existing market for the two new markets. But before that, he wanted a marketing research study done in the existing market to assess brand loyalty for SKM’s products. He enlisted the services of a marketing research consultant for this purpose.
The study focused mainly on the analysis of marketing survey data to identify significant independent variables which had a great influence on the dependent variable, i.e. brand loyalty, for their products.
Once the data was collected and tabulated, Iyer had to analyze the data and, based on this, take some vital decisions. In India, consumption of milk had been increasing over the years due to the rapid growth in population and rise in per capita income. Post-independence, recognising the importance of milk production in fulfilling the economic needs of millions in the rural areas, the Government of India had initiated several policy measures in the dairy sector to achieve self-sufficiency in milk production.
About SKM
Iyer founded SKM Pure Milk Products Pvt. Ltd. (SKM) in 1999 near Chennai. Within the short span of a decade, SKM became well known all over Tamil Nadu for its SKM branded milk products.
Preparing for the Launch
But before going ahead with the launch of its operations in these new markets, Iyer wanted to conduct marketing research in some selected areas of Chennai. He knew that in marketing research, brand played a significant role in developing marketing strategies
Question:
To understand the issues in assessing brand loyalty.