¶ … business world, many strategies have been devised to gain and retain customers. Phenomena such as globalization, market saturation, and better information technology have driven strategies such as customer awareness and long-term customer relationships to be favored above relatively short-term strategies to gain new customers, such as product price and quality (Kinuthai et al., 2012, p. 223). Indeed, creating brand loyalty in order to retain customers in the long-term has played a key role in long-term business success. To accomplish this, brands such as those operating within sportswear have emphasized strategies to appeal to consumers responding to products at the individual level. As such, customer loyalty is a significant determinant in the amount of product being bought and the frequency of repeat purchases.
On the basis of this, the dissertation will aim to examine brand loyalty among the youth of a developing country (Kenya) as compared to the same phenomenon in a developed country (the United States). To examine this, factors like brand development and strategies, consumer behavior, and advertising strategies will be examined. The objectives of the dissertation are to:
Determine the differences in consumer behavior among the youth of the two countries.
Determine how brand development and strategies influence this behavior.
Examine how advertising can influence brand loyalty
2.
Brand Development and Strategies
According to Mante (2011, p. 2), one of the best ways for a company to achieve equity within its market is by means of branding. Branding and the loyalty created in this way involves various benefits for a business. This includes repeat business from loyal customers, an increase of sales and profits, investor attraction, and customer pride in terms of association with the brand. The author also mentions "branding flavor" in order to ensure the company's survival, even within a dynamic and often stormy business environment. Branding flavor means that a company must constantly be involved in innovation and development of its products. Better products with sustainable improvements must be the result. Companies that want to create and maintain customer loyalty should predict the wants and needs of their customer base and provide for these. This is particularly important when the global environment is taken into account. Sportswear customers in Kenya, for example, may have different concepts of style and comfort than those in the United States. These need to be researched carefully in order to ensure that customer demands and product supply are adequately matched. Success within this requirement will create a highly competitive platform for the business, especially in terms of catering to specific tastes and individual requirements.
According to Haig (2004, p. 8), this is something the sports brand Adidas managed to do with great success. One of the success factors in the Adidas brand is its unifying logo, which is three stripes. This logo has come to be associated not only with the highly functional nature of the brand in different sports, but also with its image of being "cool." This image has been created by the association of the brand with rap artists such as Run DMC and Missy Elliot, as well as sports stars such as David Beckham. The international appeal of these celebrities also creates international appeal for the brand in both the developed and developing world.
To appeal to a wider market, Adidas also includes a Sport Style line for those who are fashion conscious. This is particularly appealing to young people, many of whom are highly concerned with their appearance regardless of the kind of activity they are participating in. This is also a relatively universal concern, even in developing countries, where globalization has had a significant influence.
3.
Advertising Strategies
Branding and advertising go hand in hand to create customer loyalty. According to Shaefer, Parker, and Kent (2010, p. 31), celebrity endorsements are among the most popular strategies companies use to advertise their products. This is particularly so in the sports apparel industry, where world renowned celebrities like Tiger Woods and David Beckham are employed for their appeal to the mass market.
In the United States alone, more or less 25% of all advertising includes a celebrity to endorse the product. Indeed, millions of dollars are invested to secure the endorsing services of celebrities. Some of the benefits of this practice include enhanced ad recall, higher product desirability, and increased glamor associated with the product.
Celebrity endorsements are also used in developing countries such as Kenya. What is interesting in such cases is that these are often associated with purposes beyond enhancing product purchases. Ayuk and Nyaseda (2008, p. 2008) Olympic long-distance runner Paul Tergat as an example of this. His endorsement of products and companies, according to the authors, is "cosmetic," since the companies...
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