Research Proposal: Branding and Customer Retention in UK Retail

This research proposal investigates the effectiveness of branding strategies on customer retention within the UK retail industry, using Iceland as a case study. The study aims to assess how branding impacts customer loyalty and identify effective strategies for improving customer retention. The proposal includes a problem statement highlighting the competitive landscape of the UK retail sector, a rationale for the study emphasizing the importance of brand image, and research questions addressing the impact of branding, specific strategies employed by Iceland, and recommendations for improvement. The literature review covers key concepts such as brand image, customer satisfaction, and loyalty programs. The methodology outlines the research philosophy, approach, type, design, data collection methods, sampling techniques, data analysis, and ethical considerations. The proposal also includes a proposed dissertation structure, a timetable, and a list of references to support the research. The research is designed to provide valuable insights for businesses seeking to enhance customer retention through effective branding.

Research proposal
Assessing the effectiveness of branding on customer
retention in UK retail industry. A cases study on Iceland,
London
1

Table of Contents
INTRODUCTION ..........................................................................................................................3
Problem statement........................................................................................................................4
RATIONALE OF THE STUDY ....................................................................................................5
SIGNIFICANCE OF THE STUDY ...............................................................................................6
RESEARCH AIMS AND OBJECTIVES ......................................................................................6
LITERATURE REVIEW ...............................................................................................................7
RESEARCH METHODOLOGY ..................................................................................................10
Research philosophy: ................................................................................................................10
Research approach: ...................................................................................................................10
Research type.............................................................................................................................10
Research design.........................................................................................................................10
Data Collection..........................................................................................................................11
Sampling....................................................................................................................................11
Data analysis..............................................................................................................................11
Ethical issues .............................................................................................................................11
Research limitations...................................................................................................................12
PROPOSED DISSERTATION STRUCTURE ............................................................................12
TIMETABLE ................................................................................................................................12
REFERENCES .............................................................................................................................15
2

Title: Assessing the effectiveness of branding on customer retention in UK retail industry: A
cases study on Iceland, London
INTRODUCTION
In the present competitive era, each and every organization is ready to pay any means to
access the needs and wants of customers as well as their specific desires. This is seen more
important to satisfy the needs of customers in a better manner and achieving customers loyalty
and satisfaction. Marketing of a company focuses on delivering higher values to a customers so
as to make them satisfied and building long-term and mutually profitability relationship with
customers (Cahill, 2006). In case, the products or services provided by a company are not
enough to satisfy or meet the customer’s needs and wants, thus, it called ineffectiveness in
marketing practices. With loyal customers, companies can have higher market share and reduce
the operating cost.
Branding is the process of creating a unique name and image of a product in the minds of
customers which is mainly through advertising campaigns along with a unique theme. The aim
of branding is to establish a significant and differentiated presence in the marketplace and helps
in attracting and retaining loyal customers (Katie, 2013). In respect with the retail supermarket,
satisfaction is interpreted as to meet the expectations of the customers. However, it has been
witnessed that corporate brand image is important to gain customer commitment and loyalty.
Branding helps in attaining the higher performance is terms of increasing sales and profitability.
Nonetheless, it was found that poor brand image significantly lead to disaster and losing
customers.
Customer Retention is seen to be the most crucial problem associated with an retailing
organization that is only resolved through creating differentiation in a retails store, where,
consumers make weekly, fortnightly or monthly shops (Andreassen and Olsen, 2008). Within
UK retailing industry, there can be seen huge competition among retailers or it can be said that
competition in retailing is very fierce. Customers satisfaction and loyalty are the most significant
aspect that allows marketer to retain customers in a business and gain long term business from
them. For this aspect, retail industry of UK is involved in creating branding of products to gain
competitive advantages.
3

This is the most crucial fact that retailing organizations spend billions to present themselves as a
brand and try to make their brands resonate with consumers. Unfortunately in UK retail industry,
there are number of unsatisfied consumers who do not complain, and just do shopping
somewhere else. The question is remain same, how branding affects the satisfaction level of
customers and their loyalty towards a company of brand (Pollack, 2009). This investigation is
proposed so as to assess the effectiveness of branding on customer retention in UK retail
industry: that customer expectations always move upward and it is only the satisfied customers
that are more likely to remain loyal in the long run. Iceland is a leading British retailer and a
fastest-growing and most innovative merchandiser. This company is recognised as one of the
best companies to work for in the UK. The company is witnessed with spending lot on branding
strategies, hence, it is crucial to know how effective the branding strategies for attaining
customer retention and loyalty are (Ou and et. al., 2011).
Problem statement
Customers retention is the most common problem among retailers of UK because there
are a variety of supermarkets doing in retail sector. However, they are arranging unique
marketing practices to attract and retain customers but they are far behind providing satisfying
and loyalty of customers through their marketing practices. Iceland Company is one among the
leading retailer of UK which is making more efforts to create a brand image in the market while
using costlier branding strategies, so it to know, how effective such strategies are in retaining
customers and gaining customers loyalty towards brands. Through conducting the proposed
study, the researcher hopes for answering the following questions.
 How effective branding strategies are for improving customers retention and loyalty
level?
 What are the different strategies applied by Iceland to attract and retain customers and
attaining customer loyalty?
 What is the current position of Iceland brand and its branding as marketing strategy?
 What are the different ways for Iceland to improve customers retention and loyalty level?
RATIONALE OF THE STUDY
What is the research issue?
4

The main issues of present research is to assess the impact of impact of branding on
customer retention and loyalty level. At present, the UK retailing industry is going through a
tough competitive and to attain competitive image, retail organization are involved in marketing
their product while using competitive branding strategies. Brand image can be a solution to gain
competitive images but its is to know how branding is important to attain customers loyalty and
retention. The proposed investigation is going to assess the effectiveness of branding on
customer retention in UK retail industry for which Iceland, a leading retailer of London, UK is
taken into consideration.
Why is it an issue?
In the present era, UK retaining company are witnessed with making huge investment ins
marketing practices in order to create a image in marketplace and to reach large number of
audience. But, this has been seen as a most crucial issues, how effective such practices and what
worth the branding and marketing expenses to the organizations in term of gaining customers
retaining and loyalty. Hence, the present investigation is going to identify the effectiveness of
branding on customer retention in UK retail industry.
Why is it an issue now?
Iceland is recognized as one of the best companies to work for in the UK, but the issue is
how much it worth for customers. The company is spending lot on branding strategies to gain
competitive image in the market and it’s important to identify the effectiveness of branding
tactics for company. The use of social media sites for creating brand image is seen be
increasingly used but the impact of this is questioned for the Iceland.
What could this research shed light on?
This study is going to examine the effectiveness of branding on customer retention in UK
retail industry. Furthermore, branding strategies applied by Iceland to attract customers and
retain and make them loyal and impact of branding on customer retention and loyalty level is
going to be shed light on. The investigation will also present how Iceland can improve branding
so as to attain customers retention and loyalty level.
SIGNIFICANCE OF THE STUDY
This proposed investigation has its own significance to the corporate world as well as for
society. As earlier said that, customers retention is become a major problem which is faced by
5

every organization and this investigation will show number of opportunities for business entities
to gain customers loyalty and satisfaction through applying effective branding strategies. This
investigation will also be significant for the scholars as well as academicians in identifying the
impact of branding on customers retention and loyalty (Andreassen and Olsen, 2008). This
investigation will provide a sufficient stuff to the readers for understanding the impact of
branding on customer retention and loyalty level and how it affects customer’s retention. The
research is focused towards the case of Iceland, leading retailer of UK as well as its marketing
efforts to create brand image for retaining customers. It is significant to identify the factors
affective customer retaining and loyalty within retailing industry (Kursunluoglu, 2014). The
applicability of sufficient information related to effectiveness of branding on customer retention
in UK retail industry will allow Iceland to make effective decisions regarding future marketing
strategies.
RESEARCH AIMS AND OBJECTIVES
Aim: The aim of the conducted research work is to evaluate the effectiveness of branding
as marketing strategies on customer retention and loyalty level to recommend Iceland how it can
apply its branding strategies more effectively to improve customer loyalty.
Objectives:
 To investigate the branding strategies applied by Iceland to attract customers and retain
and make them loyal.
 To investigate into the current position of Iceland brand and its branding as marketing
strategy
 To assess impact of branding on customer retention and loyalty level
 To recommend Iceland on how its branding to improve customers retention and loyalty
level
Research questions
 How effective branding strategies are for improving customer’s retention and loyalty
level?
 What are the different strategies applied by Iceland to attract and retain customers and
attaining customer loyalty?
 What is the current position of Iceland brand and its branding as marketing strategy?
6

 What are the different ways for Iceland to improve customer’s retention and loyalty
level?
LITERATURE REVIEW
According to a typical definition of a brand, it was only “the name, associated with one
or more items in the product line. This brand name is recognised identify a source of character
related to a item (Kotler, 2000). As per the definition given by The American Marketing
Association’s (AMA) Brand is known as a name, term, sign, symbol, or design, or a combination
of all things that used to identify the goods and services of one seller or group of sellers which
differentiate their product from other competitors in the market. In the modern era, brands and
the brand building process are more focused which involves whole process of marketing so as to
sell products. To the view point of Nykiel, (2007) Branding is witnessed to be a most significant
issue associated with product strategy. The marketing strategies of company become focused
towards improved communication strategy that creates brand image. As per the words of Hsieh,
Pan, and Setiono (2004) successful brand image is vital for buyers to identify the needs that is
satisfied by brand and to differentiate the offering of brand from other competitors.
(Ackah and Agboyi, 2014) studied that consumer's satisfaction is concerned towards
effects of expectations, dis-confirmation of expectations, performance and equity on satisfaction.
It had been further witnessed to be a pre-trial beliefs of a product. It has been witnessed that the
product perform well in case it is associated with a brand. On the other hand, customers always
attracted towards the brand if it is available with quality at low prices. A brand image enable
companies to increase the changes of consumers for purchasing the brand over competitor’s
products (Santouridis and Trivellas, 2010). The products and services which hold positive brand
image are defiantly able to gain a better position in the market and sustainable competitive
advantage. However, the investigation conducted by Caruana, (2002) revealed that the
favourable image (i.e. brand, store/retail) significantly lead to customers loyalty.
As per the statement made by Prentice, (2013) the organization of retailing industry are using
marketing strategies so as to attract the customers as well as to retain the existing customers.
They are more focused to create a brand image of company so that customers can be attracted
and retained for a long run. Within the UK retail industry, there is a intense competition and
which forces companies to use unique marketing strategies to gain competitive advantages. This
7

is to be used for attracting the customers towards products and gaining, retaining and increasing
loyalty among the existing customers as the new ones. To the view point of Andreassen and
Olsen, 2008) it can be said that the branding is effective for the companies to increase the
market share as well as the profitability of company. The customers can be attracted towards the
company by identify their needs and presenting the products and services in accordance with
their needs and wants. The retaining industries are coming up with loyalty programs so as to gain
the loyalty of customers towards the company as well as gaining more and more attention to
improve customers retaining (Tsoukatos and Rand, 2006).
According to the investigation made by (Cahill, 2006) the companies are going to
promote their products in a form of quality symbol that defines a branding of product in the
market, the social media sites have become the best place to conduct branding of products
(Zineldin, 2006). Using social media sites the companies are approaching large number of
customers. It has been witnessed that the large number of customers in retailing industry are
more focused towards high quality services that makes a product more valuable and creating
image. The branding strategy is focused towards creating in markable image in the front of
customers as well as to attract large number of audience. From a long run, it has been witnessed
that customers satisfaction has been influenced the loyalty of customers as well as their relation
with the people. The company can earn satisfaction in case the products are offered in a well
manner to the customers. In the investigation made by Paluch, (2011) has witnessed that when
the customers are seen satisfied from the products and services of company they likely to
recommend the product to others and do not switch to other alternative brand and usually
involved in repeat purchase. From the investigation made specifically for the retail/store and
relative image it has been found that satisfaction has strongly influenced loyalty intention such as
intention to recommend as well as the intention to revisit the store. According to the
investigation made by Wong and Sohal, (2003) corporate image is addressed to be an important
antecedent of loyalty. Further, consumers attract towards the store and will probably develop a
certain degree of loyalty in case the found the fruitful strategies. In the investigation of it has
been suggested that a strong brand with high equity will have a large number of committed
customers (Zineldin, 2006).
8

Branding is the most crucial part of a product that usually influence the corporate brand image
on brand loyalty. Nonetheless, it has been found that corporate brand image is having a indirect
influence on brand loyalty and customers retention. Companies are seen to be focused towards
creating corporate brand image through using branding strategies (Tsoukatos and Rand, 2006).
Customer are seen also committed towards the organization which has a specific brand and
creates marketing to develop a brand image. Brand image and brand reputation is created along
with conducting a specific marketing strategies towards the brand.
There are various branding strategies that are used to create a brand image in the
marketplace. One of the best branding strategy is of attitude branding in which company
represents a larger feeling that is not necessarily connected to a product or consumption of the
product at all. In the investigation made by (Santouridis and Trivellas, 2010) it has been
witnessed that Iconic brands come under the strategy of branding that defines combination of
focus towards consumer's self-expression and personal identity. However, in "no brand"
branding, the product are marketed in the form of conspicuous as there is seen a absence of a
brand name (Ou and et. al., 2011). The company having no brand is not seen to be string in the
market and having competitive edge. The derived branding is also a part branding in which some
suppliers of key elements wish to guarantee its own position through promoting such element as
a brand. Most of the company are seen with using multi branding strategies in which
cannibalization is seen to be the particular problem of a multi-brands strategy approach. From
the investigation (Kursunluoglu, 2014) found that in the case of multi branding new brand takes
business away from an existing one. However in crowd source branding brands are created by
people for the business. This is seen as an opposite method of traditional one where the business
creates a brand.
RESEARCH METHODOLOGY
Research methodology is the most crucial aspect of an investigation as it involves various
tools and tactics in order to reach the objectives of a research. The following points represents
the various research tactics and tools that are going to be used in the present investigation:
9

Research philosophy:
The use of appropriate research philosophy is helpful for customers in gaining knowledge
and information in respect with the present research topic. The present investigation is going to
make use of interpretivism research philosophy so as to conduct a in-depth analysis into the
topic.
Research approach:
The research approach is seen to be a tool that is used to describe the framework in which
the entire study is conducted. The major aim of present investigation is to assess the
effectiveness of branding on customers retention and loyalty. There are two approaches such as
inductive and deductive. Inductive is use to search new theories on the other hand deductive
approach goes for finding new ideas from existing research (Chapman and McNeill, 2004). For
the present investigation, deductive approach will be used to make investigation more specific
and helpful in drawing effective findings.
Research type
The selection of research type defines the nature of study and there are twp types in
which research can be conducted such as quantitative and qualitative manner. The present
investigation is going to use qualitative and quantitative types of research so as to conduct a in-
depth analysis for the entire investigation (Mathirajan, 2009).
Research design
Research design is known as the blue print of investigation that deals with systematic plan
for investigating the issue. This is the Performa of entire research that reflates a clear path to
conduct the investigation (Ihantola and Kihn, 2011). There are three kinds of research designs
such as exploratory, descriptive and casual relationship that are used in research studies. This
investigation is going to us descriptive research design so that the data collected for the
investigation can be studied effectively and assessing the impact of branding customers
satisfaction and loyalty.
Data Collection
There are two major methods of data collection such as primary and secondary. Primary
methods is used to collect the data for the first time as well as secondary data is one that is
already collected previously by other authors. For collecting the data for the present
10

investigation, primary as well as secondary method is used. In order to collect the secondary
investigation books, journals as well as online sources are going to be used as well as the online
and physical library is going to be approached (Chapman and McNeill, 2004). However, primary
data are going to be collected from with the help of questionnaire methods. The questionnaire is
going to be designed and make filled but the customers of Iceland. For collecting the responses,
social media sources will be used. The location for the research will be London, UK. The
questionnaire will be uploaded to the social media sites and response will be collected through
google docs.
Sampling
Sampling is the most appropriate method to select the population for collecting responses
in the form of primary investigation. There are two specific methods of sampling such as
probability sampling and non- probability sampling. The population selected for the present
investigation is customers of Iceland. To select the respondents, simple random sampling method
will make in use. The rationale behind using this method is to provide equal chance to every
customer to be selected for the investigation (Merriam, 2009). The sample size of present
investigation will be 50 customers of Iceland, London.
Data analysis
Data analysis is the most important part of an in investigation that allows researcher to
make appropriate finding from the data that is collected from range of sources. For the present
investigation data will be analysing while making use of thematic analysis. Along with this, the
tabular and graphical presentation will be done.
Ethical issues
The present investigation will be done while considering some ethical aspect of
completing a research investigation. Firstly, the data of present investigation is going to be
collected from the authentic sources as well as the researcher will ensure that the private/
personal information is going to keep confidential (Johnson and Christensen, 2010). However, it
can be seen that issue of plagiarism is going to avoided by the researcher and the information is
properly cited in accordance with proper authors.
11

Research limitations
The major limitation of the present investigation is associated with the collection of
secondary information. Researcher will have to make more efforts for collecting significant data
over the research topic as such kinds of investigation are limited in nature. Limited time and non-
response from respondent will the major threats for the present investigation. Nonetheless,
researcher is going to use significant research tactics and time management tactics to overcome
the limitations.
PROPOSED DISSERTATION STRUCTURE
The proposed dissertation is going to completed in a proper structural manner in which
the information is shown through different chapters.
Chapter 1: Introduction: This will be the first chapter of the investigation which include
aims and objective of this investigation as well as the significance of study. This chapter
also defines the research question that are going to be answered in the present
investigation.
Chapter 2: Review of literature: Literature review is important chapter that provide a
secondary information on the research topic. The information will be shown using sub
themes.
Chapter 3: Research methodologies: This is the third chapter of the investigation which
is the most crucial as it involves various tools and tactics in order to reach the objectives
of a research.
Chapter 4: Data analysis: Data analysis will be the next chapter that will allow
researcher to make appropriate finding. The data will be analyzing while making use of
thematic analysis. Along with this, the tabular and graphical presentation will be done.
Chapter 5: Conclusion and recommendations: Final chapter will show the crux of study
and recommendations.
TIMETABLE
ACTIVITY/WEEK 1 2 3 4 5 6 7 8 9 10 11
Problem Identification
12