Submitted By: Pallavi Khurana MBA-IV Semester, Section A Registration No.

: 08VWCM6057 TITLE: A Study on the Brand Loyalty of the Consumers towards FMCG Products Statement of the Problem
Brand loyalty of Products in the case of FMCG Industry is quite volatile in nature. Consumers shift from One Brand to another due to the various reasons like Price, Product Benefits, Influence of advertising etc. The research will study the characteristics of Brand Loyal Consumers and the Shifters.

Need of the Study

It is required to study the following Problem because not much work has been done on this. The study would analyze the consumer behavior that leads to Brand Loyalty in FMCG Industry.

Review of the Literature

Brand loyalty , in marketing, consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service or other positive behaviors such as word of mouth advocacy. Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand due to situational constraints, a lack of viable alternatives, or out of convenience. Such loyalty is referred to as spurious loyalty". True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behavior. This type of loyalty can be a great asset to the firm: customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to the firm. For example, if Joe has brand loyalty to Company A he will purchase Company A's products even if Company B's are cheaper and/or of a higher quality. An example of a major brand loyalty program that extended for several years and spread worldwide is Pepsi Stuff. Perhaps the most significant contemporary example of brand loyalty is the dedication that many Mac users show to the Apple company and its products. From the point of view of many marketers, loyalty to the brand - in terms of consumer usage - is a key factor.

Loyalty A second dimension, however, is whether the customer is committed to the brand. Philip Kotler, again, defines four patterns of behaviour: 1. Hardcore Loyals - who buy the brand all the time. 2. Softcore Loyals - loyal to two or three brands. 3. Shifting Loyalty - moving from one brand to another. 4. Switchers - with no loyalty (possibly 'deal-prone', constantly looking for bargains or 'vanity prone', looking for something different). Factors Influencing Brand Loyalty It has been suggested that loyalty includes some degree of pre-dispositional commitment toward a brand. Brand loyalty is viewed as multidimensional construct. It is determined by several distinct psychological processes and it entails multivariate measurements. Customers' Perceived value, Brand trust, Customers satisfaction, Repeat purchase behavior and Commitment are found to be the key influencing factors of brand loyalty. Commitment and Repeated purchase behavior are considered as necessary conditions for brand loyalty followed by Perceived value, satisfaction and brand trust. Frederick Reichheld, one of the most influential writers on brand loyalty. Sources:
1. www.wikipedia.com 2. www.scribd.com 3. www.business-standard.com

4. www.brandchannel.com 5. Kothari, C.R, Research Methodology, Revised Second Edition , New Age International, Publisher, New Delhi, 2006 6. Kotler Philip, Marketing Management, Eleventh Edition. Pearson Education 7. Indian Journal of Marketing, Volume XXXIX, Number 9, September 2009 8. Mathur, U.C, Product and Brand Management, First Edition, Excel Books

9. Journal of Marketing and Communication, Volume 3, Issue 2 10. Havaldar, K. Krishna, Industrial Marketing, 4th Edition, Tata Mc-Graw Hill

Objectives of the Study

1. To Select 3 Products and find the Loyalty category percentage for the respective Products 2. To identify the reasons that influences Hardcore Loyals to stick to one Brand. 3. To identify the reasons that influences Brand Shifters or Switchers to shift from one Brand to other. 4. To find out the reasons for the Consumers to use the Particular Brand of the Product. 5. To find out the Four most Used Brands by the Respondents in the three Products taken for the Study

Scope of the Study

The scope of the study will extend to the various Brands in FMCG, as the research would study the consumers behavior and Loyalty towards the Products. The Study will give an insight on the various reasons why a consumer repurchases a certain Brand and behaves in particular way.

Research Methodology
1. Constructive Research 2. Collection of Primary and secondary data. 3. Source of primary and secondary data 4. Collect the data by simple random survey 5. Sampling Unit- 100 Samples

Limitations of the Study

1. The Study focuses on the certain selected Brands in the FMCG Industry.

2. The Sample Size taken is small due to constraints in time. 3. The Sample Size taken is not very large due to constraints in Cost. 4. The Study is limited due to lack of sources and communication