Skip to main content

Nestle' and the story of a ‘satisfied’ loyal.

The dairy whitener I use has always been, and is from Nestle'. So my morning coffee cuppa gets made with a Nestlé product (Everyday dairy whitener), and it seems like I’ve been sticking with the brand forever.
My ‘forever’ patronage is why you can call me a ‘brand loyal’ buyer.
Research shows that brand loyalists are either ‘satisfied loyal’ or ‘committed loyal’. One of the factors that differentiate the two is the level of ‘emotional connection’. The former share a ‘light’ emotional connection with their brands, whereas the latter are heavily emotionally invested. In this post I want to focus on 'satisfied loyal', because I am one. The brand and product in question is Nestlé’s Everyday dairy whitener.
The critical variable that drives my loyalty is ‘dependability’. Meaning, I can depend on Nestlé’s dairy whitener to do its job day after day. The white stuff mixes like charm with boiling water and coffee. Great taste and zero lumps. Competing brands can’t do that. Nope, they can’t. I've tried the others with terrible results; lousy taste and lotsa lumps.
To engineer 'satisfied loyalists' (note, not 'committed loyal') all brands need to do is deliver solidly on ‘dependability’. That in turn is a delivery of category benefits that operate in utility territory better than competition; plus consistently.


Popular posts from this blog

Situational Involvement of Consumers

There are two types of involvement that consumers have with products and services, Situational and Enduring. Situational involvement as the term suggests, occurs only in specificsituations whereas Enduring involvement is continuous and is more permanent in nature.

Decisions to buy umbrellas in India are driven by the onset of Indian monsoon. Monsoon rains arrived in India over the South Andaman Sea on May 10 and over the Kerala coast on May 28, three days ahead of schedule. But then, after a few days of rain, South India is witnessing a spate of dry weather. Temperatures are soaring in the north of India. The Umbrella companies in the state of Kerala are wishing for the skies to open up. So is the farming community and manufacturers of rural consumer products whose product sales depend totally on the farming community. The Met. department has deemed this dry spell as 'not unusual'.

India's monsoon rains have been static over the southern coast since last Tuesday because of a…

Prior Hypothesis Bias

Prior Hypothesis bias refers to the fact that decision makers who have strong prior beliefs about the relationship between two variables tend to make decisions on the basis of those beliefs, even when presented with the evidence that their beliefs are wrong. Moreover, they tend to use and seek information that is consistent with their prior beliefs, while ignoring information that contradicts these beliefs.

From a strategic perspective, a CEO who has a strong prior belief that a certain strategy makes sense might continue to pursue that strategy, despite evidence that it is inappropriate or failing.

Ref : Strategic Management : An Integrated Approach, 6e, Charles W L Hill, Gareth R Jones

Consumer Spending

Carpe Diem Blog: From Visual Economics, a graphical representation appears above (click to enlarge) of Consumer Expenditures in 2007, using data from the Bureau of Labor Statistics. Note that total spending on food ($6,133), clothing ($1,881) and housing ($16,920) represented 50% of consumer expenditures and 30% of income before taxes in 2007. In 1997 by comparison, 51.1% of consumer expenditures were spent on food, clothing and housing, and 44.6% of income before taxes was spent on food, clothing and housing (data here).