Retailers and Brand Loyalty

The onset of the mantra of ‘global village’ and market economy has brought before us new concepts that were beyond our imagination even few years back. It is definitely true. Take for instance the aspect of the major retailers worldwide. In these days it seems that the greater part of major retailers, particularly of the airlines and hotel industries, are busy in tempting the target audience to sign up a loyalty scheme relevant to them. What will the customers get in return? They will get magnificent accommodations in hotels along with free fights to their choicest locations. Other than this they will also get discounts on every business with the retailers. This prompts us to question of the basic intention of these loyalty schemes. Is there any such difference between them in aptitude and approach?

It is true that the competition to get hold of the clientele is massive and to some extent severe. To have a great sway on the international market most of the reputed brands have entered into the domain of Internet business. It is through alluring the general audience they are trying have the lion’s share. However, according to the pundits, these gigantic efforts still do fail or prove to be trivial in transforming the customer loyalty to a particular brand. Take for example the global war between Coca-Cola and Pepsi. Both of them are proffering sound plans in order to tempt the largest share of clientele but still both of them are retaining the same brand positioning in the market. Reason? There is a concept of brand loyalty which none considers seriously. To the admirers of both brands the alluring of the rival company is the same yet they prefer to remain with the older one. This stage is the real hurdle for the major retailers. At this point they do fail completely to motivate the loyal admirers of the other brands and drag them to their own.

Nevertheless this is going to continue since capitalism demands a steady market and continual demand. The foundation of the system depends on this.