Segmenting by brand loyalty

Brand loyalty is when a company gets consumers to remain loyal to its products and/or services. It is when a company creates a competitive advantage over other businesses in its industry. Brand loyalty is when a company can utilize its brand name (such as Guinness and Nike) to retain a large customer base and make a profit. However, a great deal of customer satisfaction must exist.

Guinness Brewing Company (2007) has created brand loyalty in a number of ways. The company has its own website where customers can purchase apparel and other products. It believes in safe driving and is committed to responsible drinking. Consumers have the option of saving money on products such as watches and T-shirts that they purchase through Guinness. These products enable consumers to display their loyalty in the company’s brand. In addition, consumers are able to purchase apparel designed specifically for holiday purchases. Currently, St. Patrick’s Day clothing is available. Guinness also advertises for support by stating that a consumer should, “Show your great taste in beer and in clothes with stylish GUINNESS apparel” (2007). Thus, the company believes its products are the best (Guinness, 2007).

Nike (2007) is another company that possesses brand loyalty. Consumers are able to shop online, customize their own products, create Wish Lists, and call a toll free number for customer service. Additionally, Nike’s endorsement of the NBA and its players through such things as the Second Coming, Nike 6.0 demonstrates the company’s ability to create a competitive advantage (Nike, 2007). NBA players are celebrities and already have their own fan support. Thus, brand loyalty matters because the people behind the brand are just as important as the brand.

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