Investigation: Customer Loyalty and Effective Advertisement at Nestle

This report investigates the relationship between customer loyalty and effective advertisement, focusing on Nestle as a case study. The research utilizes both secondary sources and a primary survey of 30 Nestle customers to analyze the impact of advertising on customer behavior. Key findings reveal that effective advertisement significantly influences customer loyalty, brand reputation, and customer awareness. The report explores various advertisement channels, with social media emerging as a preferred platform. The analysis highlights that companies can build strong customer relationships through effective advertisement, which directly impacts customer loyalty. The report concludes that customer loyalty is a crucial asset for a company and that advertisement plays a vital role in fostering this loyalty, impacting both existing and potential customers. The research emphasizes the importance of adapting advertising strategies to maintain customer engagement and competitive advantage, particularly through channels like social media.

FOUNDATION
PROJECT

ABSTRACT
This present research finding was based on the investigation of the relationship between
customer loyalty and effective advertisement. Customer loyalty is one of the biggest and most
valuable assert of the company. The findings from secondary sources organisation can build its
brand reputation in the market through effective advertisement. Further, the survey conducted
from 30 customers of Nestle and it has been identified that it is very important for organisation to
propose advertisement for customers so that they can remain attached and connected to the firm.
Moreover, it was also founded that effective advertisement leads to positive impact on whole
organisation as well as mind of customers.

TABLE OF CONTENTS
ABSTRACT ....................................................................................................................................2
INTRODUCTION...........................................................................................................................1
DATA COLLECTION....................................................................................................................1
RESEARCH FINDINGS.................................................................................................................3
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Customers and advertisement of the company is directly connected to each other. It is
true that there is a direct relationship between customer loyalty and effective advertising of the
company (Ansari and Riasi, 2016). It is important to keep the customers aware about the
company and their products, offers and everything. Nestle company is being chosen for
assessment. In this report, researcher will investigate the relationship between effective
advertisement and customer loyalty. Data will be collected through primary investigation via
questionnaire from 30 respondents who are customers of the company.
DATA COLLECTION
Data collection is the process of gathering and measuring information on variables of
interest in a systematic way that enable to answer the relevant question as well as evaluate the
outcomes (Quinlan and et.al., 2019). There are mainly two methods by which data is collected
for the purpose of solving the research questions. In this present research, data is collected
through survey via questionnaire. On the other hand, one of the biggest issues that researcher
have faced during the data collection was checking the crime record of the participants and delay
in filling the questionnaire.
QUESTIONNAIRE
Name of the Organisation:
Name of Respondents:
Age:
Gender:
1. Are you aware about the recent trends of advertisement in the business environment?
 Yes
 No
 Not Sure
2. Do you feel, it is important for organisations should promote their product through effective
advertisement?
 Yes
 No
 May be
1

3. Do you think, effective advertisement leads to positive impact on the mind of customers?
 Highly Agree
 Agree
 Neutral
 Highly Disagree
 Disagree
4. Are you agree that effective advertisement build customer loyalty?
 Yes
 No
 May be
5. What are the advertisement channels you would like to prefer?
 Newspapers
 television
 Social Media
 promotional Campaigns
6. Are you agree that company build there good reputation through effective advertisement?
 Strongly Agree
 Agree
 Neutral
 Strongly Disagree
 Disagree
7. As per your opinion what are the challenger's organisation faced if they ignore
advertisement?
 Unaware customers
 lack of competitive advantages
 lack of customer loyalty
 All the above
2

RESEARCH FINDINGS
Theme 1: Customers are aware about the recent trends of advertisement in the business
environment.
PARTICULARS CUSTOMERS
Yes 18
No 8
Not Sure 4
Interpretation: The above tabular and graphical presentation analysed from 30
customers of Nestle and it has been summarised that maximum customers were highly aware
about the recent trends of advertisement in the business environment. About 18 out of 30 were
agreed. They said that no one knows the company if they do not promote them on the market. As
reviews in literature support that, advertisement build effectual relationship between the receiver
and sender of the message. On the other hand, there were 8 customers who said that they were
not aware of the recent trends of advertisement in the business environment. They said that they
read newspapers only and they do not know about the recent trends of advertisement. Rest of 4
were not sure about the answer.
3
Yes
No
Not Sure
0 2 4 6 8 10 12 14 16 18
CUSTOMERS

Theme 2: It is important for organisations should promote their product through effective
advertisement.
PARTICULARS CUSTOMERS
Yes 21
No 6
Not Sure 3
Interpretation: The above tabular and graphical presentation analysed from 30
customers of Nestle and it has been summarised that it is important for organisation should
promote their products through effective advertisement as supported by 21 respondents. They
said that if organisation do not promote their products than customers were not aware of the
product of the company. As per the views in literature supports that by organising campaign in
the society or posting updates on social media leads positive impact on the mind of customers as
it keep them connected to towards the company for longer period. Wherein, there were 6
customers who said that it is not important for organisations to promote their goods and services
through effective advertisement. They said that most important thing that firm needs to undertake
is fulfilling the needs and demands of customers through their products. Rest of 3 were confused
and do not have accurate answers. Rest of 3 were confused and do not have specific answer.
4
Yes No Not Sure
0
5
10
15
20
25
CUSTOMERS

Theme 3: Effective advertisement leads to positive impact on the mind of customers.
PARTICULARS CUSTOMERS
Highly Agree 8
Agree 9
Neutral 3
Highly Disagree 6
Disagree 4
Interpretation: The above tabular and graphical presentation analysed from 30
customers of Nestle and it has been summarised that effective advertisement leads to positive
impact on the mind of customers as 8 were highly agreed. They said that effective advertisement
build customer loyalty, trust and keep them touch with the organisation for longer period that
results in raising the profitability of the organisation. As per the views in literature supports that
effective advertisement also leads to gain competitive advantages in the market that is important
for the firms to sustain in the market. 9 were also supporting with the same reason. Wherein,
there were 10 customers who were disagreed as they it could lead to positive impact in the mind
of customers but it raises the unnecessary cost by which company have to compromise there
quality. Rest of 3 were confused and do not have specific answer to the questions.
5
Highly Agree
Agree
Neutral
Highly Disagree
Disagree

Theme 4: Effective advertisement build customer loyalty.
PARTICULARS CUSTOMERS
Yes 18
No 8
Not Sure 4
Interpretation: The above tabular and graphical presentation analysed from 30
customers of Nestle and it has been summarised that effective advertisement build customer
loyalty as supported by 18 respondents. They said that customer's loyalty creates good reputation
of the company in which effective advertisement plays an efficient role in building customer
loyalty. As per the views in literature, customer loyalty is the most essential assert for the
company and loyalty personify willingness of individual for supporting objects of loyalty of
individual so that they can continue to support for longer period thereby creating attachment and
commitment towards what is being offered and what they are receiving. Whereas, there were 8
6
Yes No Not Sure
0
2
4
6
8
10
12
14
16
18
CUSTOMERS

who were not supporting as they said that customer loyalty is build by the fulfilling the needs
and expectations of customer and offering quality of products to the customers. Rest of 4 were
not sure.
Theme 5: Social Media is one of the most preferable advertisement channels.
PARTICULARS CUSTOMERS
Newspapers 8
Television 7
Social Media 10
Promotional Campaigns 5
Interpretation: The above tabular and graphical presentation analysed from 30
customers of Nestle and it has been summarised that social media is one of the most preferable
channel for advertisement as said by 10 participants. They said that social media has becomes the
recent trend among people and they will it is one of the best medium to keep the customers
attached towards the firm. As per the findings in literature approximately, 57 percent of peoples
buy products from brands they are being following on social media. 8 customers said that they
7
Newspapers
Television
Social Media
Promotional
Campaigns

prefer newspaper and 7 said that television is one of the best medium for advertisement of
products and services. 5 customers said that promotional campaigns are also one of the best
channel for promoting the products in the society and gain competitive advantages.
Theme 6: Company build there good reputation through effective advertisement.
PARTICULARS CUSTOMERS
Strongly Agree 7
Agree 9
Neutral 3
Strongly Disagree 5
Disagree 6
Interpretation: The above tabular and graphical presentation analysed from 30
customers of Nestle and it has been summarised that company can build their good reputation
through effective advertisement as 7 were strongly agreed. They said that organisation are
investing huge amount in advertising the goods and services because it leads to positive impact
on the brand image of the firm. 9 were also supporting as per their views, there is direct
relationship between effective advertisement and reputation of the company, they move in same
direction. Wherein, there were 11 respondents who were disagreed as they said that company can
8
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
0 1 2 3 4 5 6 7 8 9
CUSTOMERS

build their brand image or reputation through their products not by only advertisement. Rest of 3
were not sure and were confused.
Theme 7: Lack of customer loyalty is the biggest challenges organisation faced if they
ignore advertisement.
PARTICULARS CUSTOMERS
Unaware customers 8
lack of competitive advantages 7
lack of customer loyalty 10
All the above 5
Interpretation: The above tabular and graphical presentation analysed from 30
customers of Nestle and it has been summarised that lack of customer loyalty is the biggest
challenge that organisation faced if they ignore advertisement supported by 10 customers. As per
their views, there is direct relationship among advertisement and customer loyalty as
advertisement keep the customer attached towards the company for longer period. In addition to
this, there were 7 customers who said that company can lose there competitive positions and stay
far from competitive advantages in the market. Further, there were 8 customers who said that the
if organisation do not prosper advertisement than it is not possible to make the customers aware
about the company which is not at all good for the firm.
9
Unaware customers
lack of competitive advantages
lack of customer loyalty
All the above
0
1
2
3
4
5
6
7
8
9
10
CUSTOMERS

CONCLUSION
From the above findings, it has been concluded that there is has been direct relationship
between customer loyalty and effective advertisement. If organisation offers effective
advertisement for customers, customers build positive image about the company. Further, social
media is one of the most preferable channels for advertisement that leads to positive impact on
the customers as it allows them to stay connected with the firm. Moreover, customer's loyalty is
one of the biggest assert of the company proved in this report as customers were highly attracted
towards the attractive and effective advertisement. Advertisement creates support to the company
for longer period of time which most important assert for the firm. Analysis also summarised that
advertisement not only impacts on existing customers but it also creates direct impact on the
potential customers. Additionally, from the primary analysis, it has also been concluded that
social media is one of the most useful and preferable because social media of the best and
effective tool for advertisement organisations are using either small or big.
10

REFERENCES
Books and Journals:
Ansari, A. and Riasi, A., 2016. An investigation of factors affecting brand advertising success
and effectiveness. International Business Research, 9(4), pp.20-30.
Quinlan, C and et.al., 2019. Business research methods. South Western Cengage.
11