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Customer Loyalty Devising successful strategies in food and drink
James Essinger and Helen Wylie
Reuters Business Insight
ISBN
NO: 1842962892
Published:
March 2003
UK
Price: £630
(
€850.00
,
$1253.00
)
Report Summary: Customer Loyalty: Devising successful strategies in food and drink a brand new report from Reuters Business Insight is a state of the art strategic overview of developments in how retail customers need to be wooed in the food and drink industry today, while also providing detailed practical information about how best to take advantage of those developments for lasting effect. Thereport’s fundamental premise is that the enormous complexity of the food and drink industry is best understood by being seen as a vast and highly competitive market place designed to win lasting loyalty from customers. The report presents a broad wave front of tactical and strategic conclusions from comprehensive original research that extends and helps to define this valuable and fundamental analytical approach. By accepting the challenge of giving the reader comprehensive information about how to win maximum customer loyalty, the report offers great insight into the best approaches to the market place to win competitive edge. In effect, it presents a complete commercially sensible and operationally pragmatic way for winning maximum success in retailing and manufacturing food and drink. Executive Summary 8 Chapter 1 Historical Approaches to Winning Customer Loyalty in the Food and Drink Industries 12 Introduction 12 The Classical World 12 The notion of the favoured producer 14 The background to the notion of the food and drink brand 16 A nineteenth-century branded food advertisement 18 The origins of popular food brands in Britain and the United States 20 CASE STUDY: The evolution of the food and drink retailer J Sainsbury plc 25 The growth in importance of food and drink brands during the twentieth century 29 CASE STUDY: Coca-Cola - the drink and the branding 30 CASE STUDY: Kellogg’s Corn Flakes 31 CASE STUDY: Skippy Peanut Butter 32 CASE STUDY: Marmite 33 Conclusion 35 Chapter 2 The Changing Patterns of Customer Behaviour, Expectation and Passion 38 Introduction 38 Disparities between customers in different countries 38 The importance of practical observation 39 The two major types of food and drink retailing environment 41 The beginnings of the concept of the supermarket 42 The synergy between advertising, branding and the retail environment 43 Key factors in competition between retailers 44 The notion of the supermarket as theatre 44 A visit to a modern supermarket 46 The variety of sourcing of food products at modern supermarkets 50 Factors motivating customers when they buy specific items of food and drink 51 Customer behaviour when buying food and drink from retailers 54 The usefulness of consultants in generating key insights 62 Is customer loyalty more of a concern to retailers or manufacturers? 65 What about retailers? How do they seek to win loyalty? 65 Brand equity 66 The primary importance of being first to market 70 The average length of an NPD cycle 71 Loyalty cards 73 The Nectar card 74 CASE STUDY: An Internet shopping enterprise 79 CASE STUDY: Marks & Spencer 84 CASE STUDY: Piggly Wiggly 92 Conclusion 94 Chapter 3 The Crucial Role of New Product Development 96 Introduction 96 NPD and its role in winning customer loyalty 97 The appeal of new food and drink products 100 Types of innovation in the food and drink sectors 101 Paradigm shift innovation 101 Branded innovation 103 Significant perceived incremental difference 105 Types of incremental advantage 107 Cost 108 Taste 109 Quality 111 CASE STUDY: leapingsalmon – a shift in consumer eating habits? 112 Novelty 115 Technological advances 116 Presentation 117 Advertising 117 Health benefits 118 The different skills involved in developing a new food and drink product 118 The different stages of the product development process 119 Stage 1: Scoping 120 Stage 2: Building the business case 120 Stage 3: Development 120 Stage 4: Testing and evaluation 120 Stage 5: The launch 120 CASE STUDY: Internet-based NPD collaboration using ‘ProductVine’ 121 The increasing importance of the private label concept 126 A perspective on NPD in relation to fundamental differences between the food and drink industry 127 CASE STUDY: United Biscuits 131 Chapter 4 State-of-the-Art Approaches to Branding 136 Introduction 136 CASE STUDY - Interbrand 137 CASE STUDY: Diageo’s approach to branding 142 Global Priority Brands (GPBs) 143 Local Priority Brands (LPBs) 143 Category Management Brands 143 Global Brand Executives (GBEs) 143 CASE STUDY - Interbrand’s initiative to rebrand the Yorkie bar 143 Chapter 5 Conclusion - Winning Strategies 148 Introduction 148 Index 153 List of Figures Figure 2.1: What is the average length of the NPD cycle? 71 Figure 3.2: The importance of new product development to your customers 98 Figure 3.3: The importance of new product development – innovation drives growth 99 Figure 3.4: The importance of new product development – innovation drives growth 100
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