A STUDY ON BRAND LOYALTY OF CONSUMERS

TOWARDS ASIAN PAINTS

Dissertation synopsis submitted in partial fulfillment of the requirements for

the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Of
BANGALORE CENTRE UNIVERSITY
By

SAIJASWANTH K
Register Number:MB187721

Under the guidance of

MR.NAGASUBBA REDDY
Assistant Professor

RV INSTITUTE OF MANAGEMENT
CA-17, 36th Cross, 26th Main, 4th T Block,
Jayanagar, Bangalore-560041
2020-2021
 Introduction

A Literature review is a text written by someone to consider the critical points of current
knowledge including substantive findings as well as theoretical and methodological
contributions to a particular topic. Literature reviews are secondary sources and as such do
not report any new or original experimental work. A literature review can be interpreted as a
review of an abstract accomplishment.

A Review of literature is to collect all information through some type of Management books,
magazine, marketing books, websites, newspapers, electronic papers and company broachers.
It helps the researcher for further findings and getting deeper into the topic. Review of
literature was taken from projects already done on the various products of the company.

Research Design according to Thomas Kinnear:

“It is the basic plan, which guides the data collection and analysis phases of the project. It is a
frame work, which specifies the type of information to be collected, the resources of data
collection procedure.”

Research design is the strategy for the study and the plan by which the strategy is carried out.
It specifies the methods and procedures for the collection, measurement and analysis of data.
Unfortunately, there is no simple classification of research designs that covers the variation
found in practice.

Review of Literature

2.2.1. Consumers true brand loyalty: the central role of commitment

Abdelmajid amine Journal of strategic marketing Volume-6, issue4, 1998

In current highly competitive environments, improving consumer’s loyalty to brands allows

firms to secure a comfortable long-term position in the market place. This article aims at
placing the issue of brand loyalty within a larger perspective than a set of repetitive discrete
transactions between consumers and brands. Two different approaches for analyzing brand
loyalty are discussed, the downstream one, based on observing consistent purchases of a
brand over a period of time and the upstream approach, which focuses on the motives that are
behind a repeat purchasing of a brand. The relevance of the latter approach is then shown by
highlighting the crucial role of the consumer’s commitment to the brand in better
understanding the loyalty phenomenon. Therefore, this article proposes an integrative
conceptual framework of true brand loyalty including its main cognitive and affective causes
and effects.

Successful brands are managed by the top and implemented by the entire organisation
through multiple actions, behaviors and customer touch points. There have been few
publications in the past elaborating the strategic aspects of branding. Brand Strategy
demonstrates how successful brands are helping top tier companies to penetrate the global
stage and how some of the aspiring companies are beginning to make their mark against
larger Western players. These brands share the same common denominator a strong
commitment by their boardrooms and senior management teams to branding.

.2 The Effects of Brand Loyalty on Competitive Price Promotional

Strategies

Jagmohan S. Raju, V. Srinivasan and Rajiv Lal Management science-1990

This paper analyzes the role played by brand loyalty in determining optimal price
promotional strategies used by firms in a competitive setting. (Loyalty is operationalized as
the minimum price differential needed before consumers who prefer one brand switch to
another brand)Their objective is to examine how loyalties toward the competing brands
influence whether or not firms would use price promotions in a product category. They also
examine how loyalty differences lead to variations in the depth and frequency with which
price discounts are offered across brands in the same product category.

The analysis predicts that a brand’s likelihood of using price and promotions increases in the
number of competing brands in a product category. In the context of a market in which a
brand with a large brand loyalty competes with a brand with a low brand loyalty, it is shown
that in equilibrium, the stronger brand (The brand with the larger loyalty) promotes less
frequently than the weakerbrand. The results suggest that the weaker brand gains more from
price promotions. The analysis helps to understand discounting patterns in markets where
store brands, weak national brands or newly introduced national brands compete against
strong, well known and national brands. The findings are based on the unique perfect
equilibrium in a finitely repeated game. The predictions of the model are compared with the
data on 27 different product categories. The data are consistent with the main findings of the
model. Brand loyalty makes a critically valuable contribution to competitive advantage. High
brand loyalty is an asset that lends itself to extension, high market share, high return on
investment and ultimately high brand equity. The challenge for marketers is how to influence
loyalty. Marketers have rushed to develop so called loyalty schemes, but do not always
appear to have considered the key elements of why consumers remain loyal to a brand. Brand
loyalty has been one of the most discussed and most misunderstood marketing concepts of
recent years, therefore, it is clearly a good time to revisit the concept of brand loyalty. A
loyal customer and a satisfied customer are not necessarily the same thing. Customers may
remain loyal for a number of reasons and may not even be happy with the product or service.
A lack of customer defections does not necessarily indicate satisfied consumers. From the
design of a new product to the extension of a mature brand, effective marketing strategies
depend on a thorough understanding of the motivation, learning, memory and decision
processes that influences what consumers buy. Subsequently, the issue of brand loyalty has
been examined at great length in this article with a Euro Mediterranean perspective.

2.2.3. Confirmatory Study on Brand Equity and Brand Loyalty: A Special

Look at the Impact of Attitudinal and Behavioral Loyalty

Hardeep Chahal1 Madhu Bala1 Department of Commerce, Jammu

University.

The purpose of the study is to examine relationships between brand equity and brand loyalty
(comprising attitudinal and behavioral) which is not well explained in the marketing
literature. Should brand loyalty be considered as dimension of brand equity or an outcome of
brand equity or as a moderating factor that acts as a mediator between attitudinal loyalty and
behavioral loyalty is needed to be confirmed. The present research is pursued to confirm such
relationships. A total sample of 300 respondents was selected from Jammu city in India to
gather data on brand loyalty and brand equity from the users of Jammu healthcare services,
Scale-item analysis, both EFA and CFA analysis were applied for finalization of scale and
model testing respectively. The findings of the study support all three hypotheses i.e. brand
equity is the resultant factor of attitudinal loyalty and results in behavioral loyalty (Model 1),
brand loyalty viz. both attitudinal loyalty and behavioral loyalty can be considered as an
indicator as well as an outcome of brand equity in healthcare sector (Model 2 and Model 3).
Major limitation of the study is the use of convenient sampling since no comprehensive and
proper list was available for the persons residing in Jammu city. But at the same time
respondents selected were appropriate as they have adequate knowledge about hospitals,
being associated with them for more than one year.

2.2.4. Asian brand strategy new book by Martin Roll

Prof Dr Hellmut Schütte, Dean of Asia Campus INSEAD

Towards 2020, a rapid changing landscape will emerge in Asia where the opportunities for
Asian companies to benefit from international branding efforts will be larger than ever
before. The growing emphasis on shareholder value and brand strategy to drive value will
move up the boardroom agenda and become one of the most prominent drivers of value in
Asia Pacific.Asian Brand Strategy insights knowledge and perspectives on Asian brands and
branding as a strategic tool and provides a comprehensive framework for understanding
Asian branding strategies and Asian brands. It includes success stories and challenges for
future growth and strengths. The book includes theoretical frameworks and models and up to
date case studies on Asian brands and a must read for Asian and Western business leaders as
well as anyone interested in the most exciting region of the world. The book presents the
Asian Brand Leadership model illustrating the paradigm shift Asian brands need to undertake
to unleash their potential.

The mindsets and practices needs to be changed in the Asian boardroom. The book invites a
complete shift in the way, Asian boardrooms think of branding from a tactical view to a long-
term, strategic perspective from fragmented marketing activities to totally aligned branding
activities, from a vision of branding as the sole responsibility of marketing managers to
branding as the most essential function of the firm led by the boardroom. This new
perspective must be steeped into a more acute perspective on the consumer behavior patterns.
Asia is not a homogenous entity. Even more importantly, Asian countries are more and more
traversed by cultural flows, permeating the region cinema, music and fashion trends that are
present to extend beyond the national borders in order to capture the imagination of millions.
Branding and brands do not operate in vacuum, but are closely linked to developments in
society to people and to cultures. To create iconic brands, the Asian managers will have to
become trend setters. The perspective developed in this book is that in order to be successful,
Asian brands need to not only capture the spirit of the region, but also they need to lead the
way by creating that spirit.
5.Sheth, Newman and Gross (1991) 15 opine that in general, the Indian
consumers were indifferent in choosing the brand, since a lot of close substitutes
were available in the market. Due to technological and knowledge up-gradation, today’s
customers prefer to opt for branded product. This is because of an urge for getting proper
value against payments made. Aaker (1996)16 has mentioned that brand of a particular
product plays a fundamental function in consumer’s perception of a product. It helps in
developing a market position, prestige and image of the product and for these reasons the
brand constitutes a mechanism of risk reduction. Hence, selection of brand is another major
constituent of consumer behaviour. Dunne and Narasimhan (1999) 17say that consumers’
perception of the relationship between price and quality is the main factor which influences
the brand choice decision between private labels and national brands. According to Mishra
(2007) 18the Indian market has seen vast changes in political, economic and social
environment which has a great impact on consumption. Singh (2007)19is of the view that
production oriented market has been shifting towards consumer oriented market. Traditional
consumption pattern has also been facing large-scale changes. Priya Soni (2010) 20 study
aimed to evaluate the

2.3. Statement of the Problem

Brand loyalty is the act of consumers consistently purchasing a product or patronizing a

company. The importance of brand loyalty leads to increased market share, higher profits and
better goodwill among consumers.

The problem of the study is to find out whether Asian Paints has been successful in
maintaining the brand loyalty towards its consumers with their quality of products.

2.4. NEED FOR THE STUDY

To conduct this research, the respondents will be the builders and developers. A total of 100
(hundred) respondents were taken into consideration during the survey. The inputs from these
respondents were collected from the Jigani and Bannerghatta areas in the Bangalore city
which will serve as the form of primary data for the study. A market may be considered as a
convenient meeting place where buyers and sellers gather together for exchange of goods.
Marketing mix is the term used to describe the combination of four inputs namely the
product, the price, the promotional activities and the distribution system which constitutes the
core of a company’s marketing system. Brand Loyalty is the consumer’s conscious or
unconscious decision expressed through intention or behavior to repurchase a brand
continually.

2.5. Objectives of the Problem

 To study the preference of consumers towards Asian Paint products.

 To study the brand effectiveness of Asian Paint on consumers.
 To study the various products of Asian Paint for which the consumers are loyal.
 To study the consumer expectations regarding Asian Paint products.

RESEARCH Methodology

Research is a process of steps used to collect and analyze information to increase the
understanding of a topic or an issue. It consists of three steps which includes of posing a
question, collecting data and also presenting an answer to the question.

The research methodology used here is a Descriptive Research. A structured questionnaire

will be framed according to the objectives being set and will be distributed to the
respondents.

 Descriptive Research

Descriptive research is the exploration of the existing certain phenomena. The existing
phenomena facts are not known to the persons. The description is used for frequencies,
averages and other statistical calculations. Often the best approach, prior to writing
descriptive research, is to conduct a survey investigation. Qualitative research often has the
aim of description and researchers may follow-up with examinations of why the observations
exist and what are the implications of the findings.

2.8.1. Sample Design

The sample design consists of 100 respondents who are the builders and developers from the
Jigani and Bannerghatta areas of Bangalore.

 Convenience Sampling

Convenience Sampling is a non-probability sampling technique where the subjects are

selected because of their convenient accessibility and proximity to the researcher.
2.8.2. Sources of Data

 Primary Data

The data that comes from primary source is called primary data. Primary data is data that has
not been previously published, i.e. the data is derived from a new or original research study
and collected at the source e.g., in marketing, it is the information which is obtained directly
from the firsthand sources by means of surveys, The primary data is collected from the
respondents by means of structured questionnaires

Secondary Data

Secondary data refers to the information of facts which are already available. The sources of
secondary data mainly include websites, books and journals. Secondary data is often readily
available. After the expense of electronic media and internet the availability of secondary
data has become much easier.

2.8.3. Tools and Techniques

The primary data is collected through questionnaire using Google forms, email and social
media tools. The Secondary data is collected from the websites, books, magazines and
journals for analytical purpose.

2.8.4. Plan of Analysis

The analysis plan is intended as a starting point for the analysis. It ensures that the analysis
can be undertaken in a targeted manner. Here, the data collected from the respondents will be
tabulated and statistical tools such as bar graphs and pie charts shall be used to represent the
data and draw inference for the same. A hypothesis will be framed and testing of the same
will be done in the same regard.

2.9. Limitations of the Study

 Since the sample size restricted to only 100 respondents, hence it may not hold good
for rest of the consumer’s in Bangalore.
 Time has been the major constraint while performing the study.
 The data given by the respondents are limited to the consumer’s perception,
knowledge, feelings and awareness.
  The study is mainly restricted to the Jigani and Bannerghatta areas of Bangalore city.

2.10. Chapter scheme

Chapter 1: Introduction

It describes about the brand loyalty of consumers towards Asian Paints. It provides the basic
information about the study and theoretical background of the study.

Chapter 2: Review of Literature and Research Design

It is about the design of the study and gives an outline about the statement of the problem,
needs, its objectives, scope, sampling techniques, sampling design, limitations and setting of
hypothesis.

Chapter 3: Profile of the Industry and selected Company

It gives a detailed description about the Paint Industry and Asian Paints Company. The
chapter outlines the growth, development, present status, future prospects and plans of the
industry and company.

Chapter 4: Results, Analysis and Discussions

It gives description about the tabulation, interpretation and hypothesis testing of the collected
data.

Chapter 5: Summary of Findings, Conclusion and Suggestions

It gives the Summary of the Findings, Conclusions and Suggestions drawn based on the
project undertaken.

REFRENCES

Books Referred:

 Kotler Philip, “Marketing Management” 10th Edition, PHI, New Delhi 2002.
 C.R Kothri, “Research Methodology”, 2nd Edition, New Age International Private
Limited Publishers.
 Dr. P.C. Pardeshi, ‘ Marketing Management’, Marketing Research, Nirali Prakashan,
Pune , June , 1999, Page no. 6.1
  Brand Relationship Management, Nirali Prakashan, Pune, June 2006
 Sharps, ‘Research Methodology’, Choice of Research Method, Sharp Publisher,
Pune , 2008, Page no. 39
 Richard D Czerniawski and Michael W Maloney, “Creating Brand loyalty”-the
management of power positioning and consumer brand awareness.

Journals Referred:

 I am sticking with my brand: Loyal consumers perceive competitors Ads differently –

Nov 21.2008.
 Behavioural brand loyalty and consumer brand association – Jenni romaiuk- 7-4-
2011. Australian University journal.
 Asian Paint maintain its shine: A journal on whole world powered by Asian Paint.
-21-1-2013.

Websites Referred:

http://www.helium.com/items/1649585be-st-techniques-to-create-consumer-loyalty.
http://www.helium.com/items/1524563-marketing-strategies-that-improve-brand-awarness
http://www.zoomerang.com/Whitepaper/Measuring-Tracking-Brand-builders/