PRODUCT PLANNING AND DEVELOPMENT: A CASE STUDY OF PROMISED
Rationale and Contribution
Description of Topic
Much has been written about the importance of brand loyalty as a key determinant of brand choice and brand equity. David Aaker (1991) wrote, “The brand loyalty of the customer base is often the core of a brand’s equity. If customers are indifferent to the brand and, in fact, buy with respect to features, price there is likely little equity.” From a modelling point of view, all articles known to the authors written about predicting an individual’s choice or market share state that loyalty, usually measured in the form of repeat-buying patterns, is the most important factor to consider. Modeling of price elasticity effects also demonstrates the importance of loyalty (Guadagni and Little, 1983; Starr and Rubinson, 1978). More loyal consumers, as measured by probability of purchase or “share of requirements” from past purchase panel data, are less likely to switch due to a given price inducement; as a corollary a loyal buyer usually needs a bigger discount to switch than would a less loyal buyer. Consistent with this point of view, Light (1989) said, “You need product volume to be a dominator. You need brand loyalty to be a profitable dominator.”
Rationale for choice of Topic
Every marketing organization wants to develop loyal customers: customers that buy consistently over time, generally at regular prices, commonly ignoring the pleas and platitudes of competitors. Everyone knows customer loyalty is good. And, marketers, given the recent developments in data capture and management, believe they have fairly good ways of developing and measuring customer loyalty. Customer satisfaction is one. A satisfied customer, at least according to research, tends to remain more loyal to the brand or the product than an unsatisfied customer. Behaviour is another. In the short term, marketers can measure various forms of customer behaviour. The number of times a customer buys in a certain time period and the time period over which a customer buys the particular product or brand are two examples. Both have received widespread attention. But, a glaring problem exists. Satisfied customers, at least those who claim satisfaction in various research situations, often drift away from the company or the brand. The same holds true for customers who have exhibited brand or company loyalty through their purchases over time. Sometimes they simply stop buying.
Significance of the Study
This study would also be of help to those market scientists who are interested in finding out the social implications of the boom and the bust phases of the industry. Moreover, educators can gain from this study, as they find the connection between how they have designed their curriculum and what are the actual needs of the industry. In that way, they would be able to make immediate changes, if necessary, or continued improvement of their programs, through further studies.
Furthermore, human resource specialists, especially those in the food industry, will have a better understanding of the needs of their industry and what the graduates of the academe can offer to them in terms of type of training and skill. Any deficiencies in skills training can then be addressed by both the academe and the industry so that there won’t be any labour shortages in that field.
Finally, this study would benefit future researchers in the field of the corporate industry, education, business and the social sciences since it depicts the future of the branding in the commercial food industry and its varying effects to many sectors of society.
Statement of the Problem
The study intends to conduct a case study on the product planning development being a tool for brand loyalty among consumers. The study will be focusing on the product CowBell Milk by Promasedor. Specifically, the study seeks to answer the following questions:
1. How do the company predict the buying behaviour of consumers of CowBell Milk?
2. What are the courses of action taken by the company to enhance the brand loyalty of the consumers?
3. What are the planning and development techniques utilized by Promasedor?
4. How does these techniques affect the brand loyalty of consumers?
Methodology
Research requires an organized data gathering in order to pinpoint the research philosophies and theories that will be included in the research, the methodology of the research and the instruments of data interpretation. In this study, the Research Process “Onion” will be utilized so that the findings of the study can be thoroughly established. The inner part of the onion describes the methodology portion whereas the outer part discusses the strategies that can be utilized in interpreting the results of the findings.
The primary source of data is the officers involved with planning and development of Promasedor, particularly those directly involved with the CowBell Milk products. The secondary sources of data will come from published articles from business journals, books and related studies on linguistics, reading strategies and institutions dealing with business management and product development.
References
Aaker, David. Managing Brand Equity. New York, NY: The Free Press, A Division of Macmillan, Inc., 1991.
Guadagni, P., and J. Little. “A Logit Model of Coffee Choice Calibrated on Scanner Data.” Marketing Science (1983): 203-308.
Light, Larry. “The Battle for Brand Dominance.” In Transcript Proceedings of the ARF 35th Annual Conference. New York: Advertising Research Foundation. 1989.
Starr, Martin K., and Joel R. Rubinson. “A Loyalty Group Segmentation Model for Brand Purchasing Simulation.” Journal of Marketing Research 15, 3 (1978): 378-83.
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