The impact of brand loyalty on sales performance of a firm

This research study focuses on the impact of brand loyalty on the sales performance of a firm, with a case study on Unilever. It explores the importance of brand loyalty, factors that affect brand image, and strategies to improve sales performance through brand loyalty. The research methodology includes mixed methods and a realistic research philosophy.

Research Methods and Project

Table of Contents
Title - The impact of brand loyalty on sales performance of a firm. A case study on Unilever......1
Introduction......................................................................................................................................1
Background of research...............................................................................................................1
Overview of company..................................................................................................................1
Aims and Objectives ...................................................................................................................2
Rationale of research....................................................................................................................2
Literature Review ............................................................................................................................2
Importance of brand loyalty.........................................................................................................2
Factors of brand loyalty that affect brand image ........................................................................2
Strategies to improve sales performance with managing of brand loyalty .................................3
Methodology ...................................................................................................................................3
Research methods........................................................................................................................3
Research approach.......................................................................................................................3
Research philosophy ...................................................................................................................4
Data collection methods...............................................................................................................4
REFERENCES................................................................................................................................5

Title - The impact of brand loyalty on sales performance of a firm. A case
study on Unilever
Introduction
Background of research
Brand loyalty is considered as one of the important factor behind customer retention for a
company. Marketing on the basis of this concept aid a firm in keeping the customers back
towards purchasing of its products. This will also help in higher in sales volume, premium
pricing ability and achievement of great competencies of business from competitors (Santos,
Sampaio and Alliprandini, 2020). On contrast, failure in building the brand loyalty impacts
negatively on overall performance a company as well. To analyse the factors or way a company
can build loyalty of its brand within a specific market, a study is conducted in present report. For
this purpose, Unilever is chosen to analyse its market position in terms of customer retention
and competitiveness. To make investigation, appropriate aims and objectives are firstly framed
which demonstrates path need to be taken for the same. Afterwards, secondary analysis is done
under literature review part to collect vast information on chosen topic, then how objectives of
research will be addressed are further described in methodology section.
Overview of company
Unilever is one of the largest multinational consumer goods company that is headquartered
in England. The company deals in several types of consumers goods that are energy drink, Food,
Ice cream, Coffee, Breakfast cereals etc. Unilever is mainly involved in three main divisions that
are Home care, Beauty, personal care, Food and refreshments etc. This company have best
research and development team that helps in fulfilling the customers requirements for gaining
high amount of profits and revenues. Organisation having 155000 employees in all over the
world in their physical stores. The company covers the large ice cream market within Europe that
helps in gaining the high market position(Joseph, Sivakumaran and Mathew, 2020). Therefore,
considering this case, a review is made under present research about such challenge arise due to
different factors that impact on brand loyalty as well, by using various methodologies.
1

Aims and Objectives
Aim: “To investigate the factors of brand loyalty that impacts on sales performance of a
company”. A case study on Unilever
Objectives –
 To analyse the importance of brand loyalty for a company.
 To identify the factors of brand loyalty that affect brand image of Unilever .
 To determine the strategies by which brand loyalty of Unilever can be improved for
enhancing its overall sales performance.
Rationale of research
As today preferences of customers, their taste and needs are continuously changing that
directly affects sales performance of companies, therefore, to evaluate how brand loyalty helps in
gaining attention of them, this topic is chosen to conduct the research (Han and et. al., 2019). It
aids in exploring a number of factors that impact on loyalty of a company and way to could be
developed positively. Through this research, project makers can acknowledge themselves how to
help a firm in improving its sales performance, by just maintaining brand loyalty.
Literature Review
Importance of brand loyalty
As per view points of Santos, Sampaio and Alliprandini (2020), brand loyalty is considered
as one of the key factor for a firm behind customer retention. It indicates purchasing of products
from the same brand of a company over and over or commitment of buyers to repurchase one
brand. For establishing a strong base of customers, it becomes essential for each and every
company to develop effective image of their brands at market, by serving with best quality where
price doesn’t matter much but earning trust helps in earning their long time retention.
Factors of brand loyalty that affect brand image
According to Cuong and et. al. (2020), for building the brand loyalty, it is essential for a
firm like Unilevers that deals in consumer products industry to concern on number of factors. It
includes image of its brand at marketplace, customer behaviour, marketing strategies and
corporate image etc. Through evaluating brand image and behaviour of targeted audience, a firm
2

can determine how to bring back its customers by serving them products accordingly (Cuong and
et. al., 2020). For example – Unilever which is one the famous multinational brand in Europe,
has a large and strong customer base just because it serves best experience to them. In building
its brand loyalty, marketing and advertising activities play a main role, where this firm use social
media platform to connect with its customers, interact with them to know their preferences and
respond accordingly to meet needs of them. Along with this, to develop a good corporate image,
it also gives commitment to invest 10% of its profit to charity (Smoothie Operators: An Innocent
Case Study, 2019). But having a great image of brand, still create issues in front of this firm to
maintain its loyalty, in terms of way to use earnings. Because commitment to donate high
proportions of revenue to charity and maintain the survival of business in increase competitive
environment, arise ethical challenge as well, especially during economical crisis. If this firm
concerns on earning high profitability by increasing price of products then it will impact on
customer loyalty, while if concerns on maintaining the brand loyalty, then it will fail to maintain
commitment. In both case, sales performance of Unilever will be affected directly.
Strategies to improve sales performance with managing of brand loyalty
In order to improve sales performance with maintenance of brand loyalty, management of
Unilever firm needs to develop better strategies. It includes encouraging referrals, partnering
with other company, Creating a point system, development of consistency in brand etc.
Methodology
Research methods
It is one of the most important part of a research that provides information regarding with
way, study will be carried out. It includes three types of research methods that are – mono, mixed
and multi-mixed. Under the present study, mixed methods will be taken which covers both kind
of qualitative and quantitative information for generalising the objectives, as well as analysing
results systematically.
Research approach
For making an investigation, two main types of research approaches are generally used
which are qualitative and quantitative. Here, former ones include exploratory methods to conduct
an in-depth study and identify underlying reasons to address research objectives, by theoretical
perspectives of other researchers (Han and et. al., 2019). While later method (quantitative
3

research) is used for quantifying the issues by numerical analysis techniques. It helps in
transforming theoretical perspectives into quantifiable information, which is further analysed by
statistical interpretations. In context with present research, both quantitative and qualitative
approaches will be applied to gather primary and secondary information, to meet the criteria.
Research philosophy
This concept provides an effective way to collect, analyse and interpret the information for
conducting a study systematically. In general, among two types of research philosophies that are
positivism and interpretivisim, one is used. Both are considered as important philosophies, where
positivism refers to be more valuable and useful, that helps in gathering, evaluating and
interpreting information via statistical techniques like SPSS (Joseph, Sivakumaran and Mathew,
2020). While, Interpretivisim research philosophy on contrast used theoretical analysis to analyse
qualitative data rather than statistical tools. In context with present research, as both qualitative
and quantitative approaches will be used for collecting desired information, therefore, realistic
philosophy will be applied. Because it includes principles of both positivist and interpretive
philosophies concepts to obtain the result from researched data.
Data collection methods
This part of research methodology section defines different types of tools that can be
utilised for gathering information and conducting a study through in-depth analysis. It includes a
number of articles and journals made previously on same topic, books, company’s data, news
articles, questionnaire, interviews, group-discussion and more (Santos, Sampaio and
Alliprandini, 2020). These sources are classified mainly as primary and secondary research
methods, where formal ones help in obtaining more reliable and authentic information; while
later ones to gather data in large amount. Therefore, in context with present research, self-
questionnaire method will be utilised for conducting primary survey. For this purpose, 30
respondents will be chosen randomly from stakeholders of Unilevers Company, to get their
feedback on current challenges faced by respective firm and way to deal with the same. While
books and journal articles will be explored for carrying out secondary research to collect
information at vast level on given topic.
4

REFERENCES
Books and Journals
Cuong, P.H., Nguyen, O.D.Y., Ngo, L.V. and Nguyen, N.P., 2020. Not all experiential
consumers are created equals: the interplay of customer equity drivers on brand
loyalty. European Journal of Marketing.
Han, H., Nguyen, H.N., Song, H.J., Chua, B.L., Lee, S. and Kim, W., 2019. Role of Social
Network Services (SNS) Sales Promotions in Generating Brand Loyalty for Chain
Steakhouses. Journal of Quality Assurance in Hospitality & Tourism, 20(5), pp.617-645.
Joseph, J., Sivakumaran, B. and Mathew, S., 2020. Does Loyalty Matter? Impact of Brand
Loyalty and Sales Promotion on Brand Equity. Journal of Promotion Management, 26(4),
pp.524-543.
Santos, V., Sampaio, M. and Alliprandini, D.H., 2020. The impact of product variety on fill rate,
inventory and sales performance in the consumer goods industry. Journal of Manufacturing
Technology Management.
Online
Smoothie Operators: An Innocent Case Study. 2019. [Online] Available
Through<https://passion.digital/blog/smoothie-operators-an-innocent-case-study/>.
Unilevers. 2013. [Online] Available Through<https://wedreambusiness.org/Innocent-
Drinks.html#tdm_2>
5