CUSTOMER RETENTION STRATEGIES

Project Group 0004C

Instructor: Dr. Shivani Mahajan
October 2022

2022 BUS 5112 AY2022 – T1 GROUP 0004C 1

 TEAM ROLES &
RESPONSIBILITIES
Nestor A. Tsala
Introduction. Conclusion. Group 0004C
Slide Design & Editing. Customer
retention strategies. Benefits of
brand loyalty

Kateryna Dzhuryk
Current marketing
& implementation strategy
Factors influencing pricing.
Factors influencing loyalty.
Slide editing. Conclusion. BUS 5112 AY2022 – T1 GROUP 0004C
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2022
 COMPANY BACKGROUND
About Zelena Korova (Green Cow in English) Our Products
Initially, the firm produced tofu, falafel,
In 2014, Anastasiia Yaremchuk founded the hummus, soybean paste, and kerobella.
company in Remeniv village of Lviv region, Ukraine. Today, Zelena Korova’s online shop
In eight years of existence, the brand increased its offers north to 30 vegan products,
customer base to include local supermarkets in 15 including nuggets, fish croquettes,
Ukrainian cities (Green Family, 2021). sausages, escalope, soybeans milk, and
seven types of tofu (Green Family, 2021).
However, this presentation is about
Zelena Korova’s TOFU.

Competitors
ALPRO, Danone S.A. plant-based Skyr
Style and Greek Yoghurt

2022 BUS 5112 AY2022 – T1 GROUP 0004C 3

 CURRENT MARKETING STRATEGY & VALUE PROPOSITION

Focus on value & benefits

Zelena Korova is the first producer of tofu and
vegan quality foods without GMOs and additives
in Ukraine. (Zelena Korova, n.d.).

Price cut
As local competitors entered the market, Zelena
Korova reduced its prices from 83 UAH to 74 UAH
per 300 grams.

Product modification
The original tofu is updated. Now, customers can
buy tofu with vegetables, fried and smoked tofu
with curry spices, adjika, and tomato sauce.

Value proposition
Serving Ukrainians who care about their
health with high-quality, vegan, and natural
food (Zelena Korova, n.d.)
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 MARKETING STRATEGIES RECOMMENDED
Based on the company’s current marketing
strategy, the team recommends the
following alternative strategies for further
growth.

International expansion Adjust value proposition

For its growth, we recommend Instead of catering to

that the firm enter the vegans only, the company
international market. Przemsysl can also include plant-
in Poland is 96km from Lviv, based tofu to reach
whereas Kyiv is 469 km away. In customers who eat meat.
addition, the firm can use Nova
Poshta, a cheaper delivery
service, to reach international
customer segments.
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 CUSTOMER RETENTION

What is customer retention?

Customer retention is a firm’s
ability to retain repeat customers
and increase the lifetime
profitability of each. “It is less
expensive to retain existing
customers than to gain new Why customer retention is
important for ZK (Shopify, 2021)
ones” (Reichheld & Sasser, 1990)
• Affordability – it is cheaper to
maintain existing customers than to
acquire new ones.
• The ROI is higher
• Satisfied customers will develop
brand loyalty
• Word-of-mouth and referrals,
especially during the war in Ukraine.

2022 BUS 5112 AY2022 – T1 GROUP 0004C 6

 CUSTOMER RETENTION STRATEGIES

Customer acquisition program Offer discount or credit (Bolton, 1998))

It refers to the process of finding Customers are bound to come back
and persuading prospective because of the financial incentive or the
customers to purchase ZK products. favor. They feel connected to the brand.

Customer relationship management Send unexpected gifts to the

It consists of: (Shopify, 2021) best customers (Moorman et al., 1992)

• Knowing customers This strategy creates affective

• Anticipating customer needs commitment in customers.
• Improve customer support

Relationship marketing instruments Free premium or rewards

(Verhoef, 2003)
They can be based on monthly
The firm can deploy:
or yearly membership
• Loyalty & rewards programs
subscriptions. (Shopify, 2021)
• Direct mailing with a “call to action.”

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7
 FACTORS AFFECTING PRICING

Internal Factors External factors

Demand: no high demand for vegan

Product differentiation: the range of
food in Lviv (Sharma, 2015).
existing plant-based products may
Competition: Main competitors are
influence the prices of new offerings.
Green marketing is a practice
Alpro and Danone yogurts. ZK switched
Product costs: setting prices to cover
whereby companies seek to a margin. to products they do not offer; burgers,
production costs with
go above and beyond nuggets, tofu, and sausages.
PLC stage: At the current maturity stage,
traditional marketing by Economic conditions: Inflation has gone
ZK product modification will affect the
promoting environmental up since the war: 24.6% (T E, n.d.)
prices (Sharma, 2015).
core values in the hope that Government regulations: Health
Pricing objectives: The firm is focusing
consumers will associate restrictions due to COVID-19 led ZK to
on profit-maximizing at this point.
these values with their
adopt personal delivery services.
company or brand. Engaging
.
in these sustainable activities.

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 STRATEGIC BENEFITS OF BRAND LOYALTY
Brand loyalty refers to the strong emotional attachment
customers have toward a company and its products.
Often, it is the result of customer satisfaction with a
product or service (Bolton, 1998; Shopify, 2021).

Functional benefits
The company serves high-quality, natural, vegan food
that allows buyers to eat healthily daily.

ZK saves money on marketing costs and experiences

increased revenue and profit (Anderson & Weitz, 1992).

Clients will promote the brand via word-of-mouth

marketing.

Symbolic benefits
The firm meets intrinsic needs by offering the
emotional enjoyment of eating healthy, non-GMO
food made in Ukraine. This feeling relates to self-
expression and social approval.

Satisfied customers are the cement of loyalty

programs (Anderson & Weitz, 1992)

BUS 5112 AY2022 – T1 GROUP 0004C 9

2022
 FACTORS
INFLUENCING
BRAND LOYALTY
• Quality: vegan, plant-based, gluten-free, no
additives, and no GMO.

• Customer service: Products are presented in

supermarkets. And in Green Café Shop where
clients are helped, respected, and received the
best service (Harvey & McHoulihan, 2012).

• Expectations: The firm provides relevant

information about the products on the website
and labels. Complaints & feedback are
welcome via the website, mail, and hotline
(Harvey & McHoulihan, 2012).
• Reputation: Created in 2014, Zelena Korova has
become a household brand for vegan food
production in Ukraine. A good reputation tends
to impact future choices for a first-time buyer
(Harvey & McHoulihan, 2012).
• Rewards: The firm offers various discounts. For example, a bulk
order of 500 UAH is entitled to 10%.
• Delivery: Since the pandemic, the company has adopted the best
delivery services in Ukraine to serve its customers. It understands
that delivery time and quality of transportation may affect
customers’ perception of the brand.

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 MARKETING ANALYSIS
1. The vegan brand with 8 years of
history focuses on price cutting and
product modification.
2. We recommend international
expansion & value proposition
adjustments.

CUSTOMER RETENTION AND

PRICING

CONCLUSION
1. We recommend a customer
acquisition program and
relationship management.
2. Prices are influenced by product
differentiation, the PLC stage, and its
objectives.

BRAND LOYALTY of ZK
1. Offers functional and symbolic
benefits.
2. Is influenced by product quality,
brand reputation, and customer
2022 BUS 5112 AY2022 – T1 GROUP 0004C 11
service.
 REFERENCES
Anderson, E., & Weitz, B. (1992). The use of pledges to build and sustain commitment in distribution channels. Journal of Marketing
Research, 29(1), 18. https://doi.org/10.2307/3172490

Berry, L. L. (2000). Relationship marketing of services: Growing Interest, Emerging Perspectives. Handbook of Relationship Marketing,
149–170. https://doi.org/10.4135/9781452231310.n6

Bolton, R. N. (1998). A dynamic model of the duration of the customer's relationship with a continuous service provider: The Role of
Satisfaction. Marketing Science, 17(1), 45–65. https://doi.org/10.1287/mksc.17.1.45

Green Family – Зелена Корова. (2021, February 25). Як Роблять Рослинну Ковбасу? Запрошуємо на Виробництво | Пісна Ковбаса із Тофу від
ТМ Зелена Корова [Video]. YouTube. Як Роблять Рослинну Ковбасу? Запрошуємо на Виробництво | Пісна Ковбаса із Тофу від ТМ Зелена
Корова – YouTube.

Harvey, B., & McHoulihan, M. (2012, August 26). 7 factors that affect customer loyalty. Consumer Brand Builders. Retrieved October 15,
2022, from https://www.consumerbrandbuilders.com/7-factors-effect-customer-
loyalty/#:~:text=Here%E2%80%99s%20our%20top%207%3A%201%201.%20Convenience.%20When,6%206.%20Reputation.%20...%207%207
.%20Community%20Outreach.

Купити тофу, соєвий паштет, хумус і фалафель, веган бургер, гріль, эскалоп, нагетси, хот-дог, фіш-крокет. Зелена корова. (n.d.). Retrieved
October 10, 2022, from https://zelenakorova.com.ua/

Reichheld, Frederick. and Sasser, W. Earl. Jr. 1990. “Zero Defections: Quality Comes to Services”. Harvard Business Review, 105–111.

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 REFERENCES
Sharma, M. (2015, April 18). Factors determining product pricing (with diagram). Your Article Library. Retrieved October 15, 2022,
from https://www.yourarticlelibrary.com/product-pricing/factors-determining-product-pricing-with-diagram/49121

Shopify. (2021). Customer Retention 101: How to increase the lifetime value of a customer. YouTube. Retrieved October 15, 2022,
from https://youtu.be/Y6IBkNNkfJg.

Trading Economics. (n.d.). Trading economics: 20 million indicators for 196 countries. Retrieved October 15, 2022, from
https://tradingeconomics.com/ukraine/inflation

Verhoef, P. C. (2003). Understanding the effect of customer relationship management efforts on customer retention and customer
share development. Journal of Marketing, 67(4), 30–45. https://doi.org/10.1509/jmkg.67.4.30.18685

Zelena Korova. (n.d.). Зелена корова. Оригінальні рослинні продукти харчування. Зелена
корова (zelenakorova.com.ua)

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