naveed final project mba marketing

Final Project

On

Comparison of Brand Loyalty and Customer Satisfaction of

MilkPak

And

Olper’s

A REPORT

SUBMITTED TO THE DEPARTMENT OF MANAGEMENT SCIENCES

VIRTUAL UNIVERSITY OF PAKISTAN

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION

SUBMITTED BY

STUDENT’S ID: MC130401718

STUDENT’S NAME: MUHAMMAD NAVEED JAFAR

DEPARTMENT OF MANAGEMENT SCIENCES

VIRTUAL UNIVERSITY OF PAKISTAN

Submission Date: 25.07.2015

i

DEDICATION

To My Parents

iv

ACKNOWLEDGEMENT

I would like to thanks the customers MilkPak and Olper’s for sparing time to fill the

questionnaires.

I would also like to thank my supervisor for his guidance, support and encouragement throughout

the project work.

v

EXECUTIVE SUMMARY

The purpose of conducting this research was to perform a comparative analysis on the

brand loyalty and customer satisfaction of MilkPak and Olper’s. The researcher has used survey

research method and research type was quantitative. A questionnaire consisting of thirteen

questions was used which was built by using five point standard Likert rating scale. The

population were the customers of both selected brands and the sample size was 120 customers

i.e. 60 of each brand. At initial stage, it was planned to target 150 customers of both brands but

due to shortage of time and unresponsive attitude of the customers, sample was reduced to 120

employees i.e. 60 customers of each brand. The researcher used convenience

sampling technique.

Primary sources were the customers of both brands and secondary sources were relevant

books, articles and journals etc. Descriptive statistics technique has been applied and mean and

standard deviation was used to perform required statistical analysis. Data has been analyzed and

processed with the help of MS Excel and SPSS and interpretations has been made on the basis of

frequency of responses in terms of numbers and percentage and results of mean.

The overall mean value of MilkPak was found slightly higher than the overall mean value

of Olper’s. It depicts that customers of MilkPak are more satisfied with their product. It was also

found that the overall mean value of both selected brands have a tendency towards 4; which

shows that customers of both brands have mild level of satisfaction with their respective brands.

vi

TABLE OF CONTENTS

Dedication………………………………………………………………………………………iii

Acknowledgement………………………………………………………………………...……iv

Executive Summary……………………………………………………………………….……v

SECTION –I…………………………………………………………………………………..01

Chapter 1) Introduction:……………………………………………………………………..01

1.1) Introduction of the Project………......……………………………………………..….01

1.2) Background of the Project ………………………………..…………..…………. 02

1.3) Introduction of the Organization……….……………………………………………….03

1.4) List of competitors………………………………………………………………………03

1.5) Objectives………………………………………………………………………………..04

1.6) Significance……………………………………………………………………………….04

Chapter 2) Conceptual Review:…………………………....…………………..……………...05

Chapter 3) Competitor Analysis:……………………...……...……………………………….09

Chapter 4) Research Methodolgy:……….…………………...……………………………….13

4.1) Data Collection Sources:……………………………………………………………..13

4.1.1) Primary Sources: …………………………………………………………………..13

4.1.2) Secondary Sources: ………………………………………………………………..13

4.2) Data Collection Tools / Instruments: ………………………………………………..13

4.3) Subjects /Participants:………………………………………………………………..14

4.3.1) Field Work/ Data Collection:………………………………………………………14

4.4) Field Work:…………………………….…………………………………………….14

4.5) Data Processing and Analysis:……………………………………………………….15

1

Chapter 5) Data Analysis:……………...…………………...……………………………….16

Chapter 6) Conclusion, Recommendations & Limitations:…………………………….....43

Conclusion: ----------------------------------------------------------------------------------------------43

Recommandations: --------------------------------------------------------------------------------------43

Limitations: ----------------------------------------------------------------------------------------------45

Section-II

a) Introduction of the Student………………………………………………………………….46

b) Bibliography………………………………………………………………………………...47

c) Appendix ………………………………………………………………………………48

2

SECTION-I

CHAPTER 1

INTRODUCTION

1.1) Introduction of the project:

This project mainly focused on the topic “comparison of brand loyalty and customer

satisfaction of two competing brands”. For this purpose, the researcher targeted FMCG sector

and selected Milk Pak (A product of Nestle) and Olper’s (A product of Engro Foods). Both the

brands are competing each other and highly rated in the market. Moreover, both are applying

different marketing strategies to target and attract more customers’ through T.V. Ads, placement

of Bill Boards and News Papers Ads etc. So, it was very interesting to perform a comparative

analysis in order to know customers of which selected brand are more loyal and satisfied.

First, the researcher find out the brand loyalty and customer satisfaction of both selected

brands and then make a comparison to know customers of which selected brand are more loyal

and satisfied and why?

According to Dick and Basu (1994) customer loyalty has been defined as “the strength of

the relationship between the individual‘s relative attitude and repeat patronage.” Customer

satisfaction refers to the extent to which customers are happy with the products and services

provided by a business. Customer satisfaction can be used as an indicator of future consumer

purchases and the satisfied customers will have a higher probability of creating repeated

purchase behavior in time (Zeithaml et al., 1996).

Every company is concerned about loyalty and satisfaction of its customers and tries to

adopt different strategies to retain their customers by satisfying them. The expansion of customer

3

loyalty and increased satisfaction is a deliberate objective for most of the companies. In many

business situations, the most important part of marketing activities can be observed as the growth

and maintaining repeat patronage or loyalty among the customers.

1.2) Background of the project :

For long term growth and success, retaining existing customers is essential. It is

considered very important to retain existing customers by increasing their loyalty and satisfaction

and if a company fails to do so, they are expected to struggle in the long run (Linton, 1993).

Aaker and David (1991) stated in their research that if a customer buy the same product

again and again despite of change in price and features, it shows that the customer is loyal and

satisfied. A customer is said to be a loyal relating to a brand if it preferences do not change due

to change in features. It explains that changes do not have negative impact on the buying

behavior of the customer. The consistency of customer’s buying the same product also suggested

that brand loyalty exist in the mind of customer. The basic objective of new era is to satisfy the

customer needs so that the business may retain its customer over a long period of time due to its

loyalty (Gwinner et al., 1998; Hagen & Matthews, 2001).

The more the satisfaction level, greater the probability that customer will buy again and

again and it shows customer loyalty (Zeithaml et al., 1996) and loyal and satisfied customer also

suggest the same product to other people (Reynolds & Arnold, 2000; Reynolds & Beatty, 1999).

The loyal and satisfied customer will pay little attention to the competitors’ products (Fitzell,

1998).

In the present era, customers have never ending expectations from the brand they use. So,

it becomes essential for the companies to meet their level of expectations in order to retain them.

When a specific brand fulfills what is expected of it, the customers will become loyal and

satisfied and will purchase that brand again and again. Moreover, they will also recommend

others to use that brand. Hence, they will be a source of marketing for them.

With the help of this study, the researcher find the brand loyalty and satisfaction level of

both brands and then make comparison to know customers of which brand are more satisfied and

why. It may help the brand owners in devising strategies accordingly.

4

1.3) Introduction of the selected organizations:

1.3.1) MilkPak:

Nestle acquired 40% shares in MilkPak Ltd in 1988 and then later in 1996, MilkPak Ltd.

was renamed Nestle MilkPak Ltd. They have a very strong brand name, aggressive marketing

and distribution plans, consistent quality and availability throughout the year, all around the

country. In September 1999, MilkPak UHT milk was launched as Nestle MilkPak UHT milk.

MilkPak UHT has been extremely successful. It is available in three pack sizes of 1000ml,

500ml and 250ml.

1.3.2) Olper’s Milk:

Being the flagship premium dairy brand, Olper's Milk, is 100% Preservative Free UHT

milk. It is the milk of choice for every occasion as its full cream richness, fresh and wholesome

taste makes every sip a delightful experience for our consumers.

Known for its supreme quality, Olper's Milk is also the market leader in packaging

innovation where new formats are introduced to make consumer lives hassle-free in today's time-

sensitive world. First ever in Pakistan to introduce the heli-cap for easy pouring and storing,

along with the microwave friendly Mini jug pack with an air handle and scissor free tear option,

this brand continues to offer its consumers consistent value adding benefits to ensure an enriched

brand experience. All-purpose and nutritious, Olper's Milk is available in 3 SKUs 250ml mini

jug in Ecolean packaging, 1000ml Edge with cap and 1500ml Family Brick in Tetra packaging.

1.4) List of competitors:

MilkPak

Tarang

Olper’s

Good Milk

Anhaar

Safe Milk

5

1.5) Objectives:

The main objectives of this study were:-

To find out the brand loyalty and satisfaction of MilkPak customers

To find out the brand loyalty and satisfaction of Olper’s customers

To make a comparative analysis of brand loyalty and customer satisfaction of MilkPak

and Olper’s

To give suggestions / recommendations

1.6) Significance: The results of the study may be useful for the top management of Nestle MilkPak and

Engro Foods Olper’s as they will be able to know about loyalty and satisfaction of their

customers. On the basis of results e.g. if their customers are less loyal and dissatisfied they can

find out the reasons and formulate strategies accordingly for improvement.

Other competitors of MilkPak and Olper’s may also be interested in the results of the

study as they will be able to know about loyalty and satisfaction of their customers and may

formulate strategies to attract less loyal and dissatisfied customers by formulating different

strategies like if customers of the selected brands are dissatisfied due to low quality or high price,

they can offer their product with high quality at low price to attract customers and capture more

market share.

The study also gave an opportunity to the researcher to gain vast knowledge of the topic

under discussion and moreover, apply the learned theories practically.

The researchers who will study same or similar topic may also take guidance from the

results of the study.

6

CHAPTER 2

CONCEPTUAL REVIEW

2.1) Marketing mix

Product:MilkPak has a brand image in the mind of consumer as handpicked close to the bud for best

quality and finest taste. They believe that quality is a way of life to them.

Price:MilkPak never compromised on quality so they adopted value based pricing.

Place: MilkPak has distribution network across Pakistan.

Its popularity in Pakistan make it No.1 Brand in country.

It is available at more than 180000 outlets in Pakistan

Promotion:Promotion of MilkPak is done by advertising campaigns on T.V, radio, bill boards etc. and

personnel selling, sales promotions, internet marketing, co-branding etc.

The promotional techniques of MilkPak are quite successful

They are creating awareness about their product which is their prime task

Resulting in boosting up their market share and profits

7

2.2) Market segmentation strategiesThey target the urban areas of Pakistan who come in the category of average middle class

or above people. MilkPak’s target market involves both genders

2.3) Target marketing strategiesTargeting a segment means the company is making a selection and targeting a certain

group of consumers or buyers for its product or services. Evaluation of different segments that

companies make is most critical before targeting any segment, every company have its own

criteria of selecting a segment such as size, potentiality of growth, profitability, economies of

scale, or low risk in the segment. MilkPak has target different market segments.

MilkPak basically has targeted the urban areas and has concentrated on the upper and

middle classes. Therefore despite the fact that it uses a mass marketing approach it can easily be

denoted that this product is catered to a particular segment. Today as both men and women

consume equal amounts of the age group segment selected for MilkPak is for all age group for

they want to target those people who are young, trendy and cosmopolitan.

2.4) Customer Satisfaction DefinitionCustomer satisfaction is the degree to which a customer feels satisfied after using a

particular product.

2.5) Dimensions of Customer Satisfaction MilkPak is very much reliable in terms of taste and quality. Consumers of MilkPak

will feel the same taste of the product when they use it time and again.

The customers of MilkPak are assured of the taste and quality they perceive.

MilkPak is the market leader.

Empathy is the capacity to understand what another person is experiencing from

within the other person's frame of reference i.e., the capacity to place oneself in

8

another's shoes. All the customers of MilkPak feels similar type of satisfaction by

using the product.

2.6) Customer acquisition and retention procedureMilkPak converts new customers and secures their loyalty through a corporate emphasis

on customer service.

2.8) Brand Delivery ExperienceMilkPak is highly reliable and provide the same quality and taste when used time and

again.

2.9) Complaint resolution / Grievance Handling They have a very efficient complaint resolution and handling system.

2.10) Overall SatisfactionCustomers of MilkPak mostly gets satisfied due to high quality and unique taste.

Drinking MilkPak is a way for the consumers to feel great in mind and body; to feel good about

themselves and the world around them. MilkPak allows its consumers to be the best that they can

be and to stay healthy.

2.11) Brand LoyaltyBrand loyalty is a central construct to marketing. Keeping the consumer satisfied, and

loyal enough to frequently purchase just one brand, is more difficult in today’s marketplace than

ever before. But today, major brands are experiencing heightened brand loyalty due to the

growing popularity of the brand as a collectible. The main theme of this project was to compare

customer’s brand loyalty & satisfaction level of two main brands. We know that cultivating, and

then developing, brand loyalty and customer satisfaction have always been top priorities for

marketers.

9

2.12) Brand EquityMajority of the market share of market has been captured by MilkPak. They are the

market leader and have most satisfied customers as compare to its competitors like Olper’s,

Tarang and Good Milk etc.

10

CHAPTER 3

COMPETITOR ANALYSIS

3.1) Marketing mix

Products:Olper’s being a successful brand enjoys strong demand overall in Pakistan due to several

reasons. The prime reason is that it is a brand which is consumed mostly in urban areas of

Pakistan e.g. metropolitan cities of Pakistan like Karachi, Lahore, Islamabad, Faisalabad,

Multan, Hyderabad etc. and in rural areas, it has low demand. The main reason of its high

demand in urban areas is that the majority of middle and upper class give preference to taste and

quality.

Price: They have competitive prices.

Place: Olper’s has distribution network across Pakistan.

Its popularity in Pakistan make it No.2 Brand in country.

It is available in most urban cities of Pakistan

Promotion:Promotion of Olper’s is done by advertising campaigns on T.V, radio, bill boards etc. and

personnel selling, sales promotions, internet marketing, co-branding etc.

The promotional techniques of Olper’s are quite successful11

They are creating awareness about their product which is their prime task

Resulting in boosting up their market share and profits

3.2) Market segmentation strategiesThey target the urban areas of Pakistan who come in the category of average middle class

or above people. Olper’s target market involves both genders who are above than the age of 20

years.

3.3) Target marketing strategiesOlper’s has mainly targeted the urban areas and has concentrated on the upper and middle

classes. Today as both men and women consume equal amounts of the age group segment

selected for Olper’s is for all age group for they want to target those people who are young,

trendy and cosmopolitan.

3.4) Customer Satisfaction DefinitionCustomer satisfaction is the degree to which a customer feels satisfied after using a

particular product.

3.5) Dimensions of Customer Satisfaction Olper’s is very much reliable in terms of taste and quality.

Consumers of Olper’s will feel the same taste of the product when they use it time

and again.

The customers of Olper’s are assured of the taste and quality they perceive.

Empathy is the capacity to understand what another person is experiencing from

within the other person's frame of reference i.e., the capacity to place oneself in

another's shoes. All the customers of Olper’s feels similar type of satisfaction by

using the product.

12

3.6) Customer acquisition and retention procedureOlper’s converts new customers and secures their loyalty through a corporate emphasis

on customer service.

3.7) Brand Delivery ExperienceOlper’s is highly reliable and provide the same quality and taste when used time and

again.

3.8) Complaint resolution / Grievance Handling They have a very efficient complaint resolution and handling system.

3.9) Overall SatisfactionCustomers of Olper’s mostly gets satisfied due to high quality and unique taste.

Drinking Olper’s is a way for the consumers to feel great in mind and body; to feel good about

themselves and the world around them. Olper’s allows its consumers to be the best that they can

be and to stay engaged and connected.

3.10) Brand LoyaltyBrand loyalty is a central construct to marketing. Keeping the consumer satisfied, and

loyal enough to frequently purchase just one brand, is more difficult in today’s marketplace than

ever before. But today, major brands are experiencing heightened brand loyalty due to the

growing popularity of the brand as a collectible. The main theme of this project is to compare

customer’s brand loyalty & satisfaction level of two main brands. We know that cultivating, and

then developing, brand loyalty and customer satisfaction have always been top priorities for

marketers.

3.11) Brand Equity

13

Olper’s has captured the second highest market share of market in Pakistan. They are at

no. 2 in milk business and have very satisfied customers as compare to its competitors like

Tarang, Good Milk and Safe Milk etc.

14

CHAPTER 4

METHODOLOGY

4.1) Data collection sources:

There are two sources of data collection i.e. primary sources and secondary sources and

due to the nature and scope of the study, it consisted of both sources of data collection.

4.1.1) Primary sources:

Primary sources are those sources from which data is collected in raw form and then

processed and analyzed with the help of statistical tools to get useful results. In this study,

customers of MilakPak and Olper’s were the primary source of data collection.

4.1.2) Secondary sources:

Secondary sources are those sources where information is readily available in an

understandable form and can be used as reference purpose to improve the quality of research. In

this study, the secondary sources of this project consisted of relevant books, journals, articles and

websites etc.

4.2) Data collection tools:

The study used questionnaire as a data collection tool.

The researcher adopted a questionnaire which best suits the nature and scope of the study.

The researcher did not developed a questionnaire on the topic under study due to validity and

authenticity issue.

15

The adopted questionnaire consisted of Liker scale. It was expected that Likert scale helps in

more accurate results as the respondents have to choose any one of the given options for each

question and assessment and an analysis of responses in Likert scale is also relatively easy

while applying statistical tools.

Only close ended questions was included. It was expected that incase of close ended

questions, assessment, analysis and interpretation of the collected data will be relatively easy

as compare to open ended questions where respondents will give different views and hence

will be difficult to assess, analyze and interpret.

4.3) Subjects/Participants:

4.3.1) Target population:

The target population will be customers of either or both brands which are expected to be

in thousands or may be in millions.

4.3.2) Sample size:

Sample size consisted of 120 customers in total of both brands i.e. 60 customers of

MilkPak and 60 customers of Olper’s. Both genders were included in no specific ratio.

At initial stage, it was planned to target 150 customers of both brands but due to shortage

of time and unresponsive attitude of the customers, sample was reduced to 120 employees i.e. 60

customers of each brand.

4.3.3) Sampling technique:

Keeping in view time and financial constraints and convenience of the researcher,

convenience sampling was be used.

4.4) Fieldwork/Data Collection:

4.4) Fieldwork/Data Collection:

16

As both selected brands are easily available in almost all local markets in Rawalpindi and

Islamabad, so, the researcher visited different local markets of Rawalpindi and Islamabad

to collect required primary data.

The researcher visited the said markets on daily basis till 75 customers of each brand are

targeted. Overall, one week time was planned for collection of primary data.

The researcher provided them the questionnaire by hand and requested them to fill it on

the spot and once they provided their response, questionnaire was collected back.

The respondents were also given a brief explanation of the purpose of data collection so

that they can have a better idea and provide more appropriate responses.

4.5) Data Processing and analysis:

Once the data was collected through questionnaire, it was recorded in work sheet using

MS Excel. SPSS was also used to perform required statistical analysis and calculations.

Descriptive statistical technique was used.

Frequency of responses in terms of numbers and percentage were calculated to know

least preferred choice and most preferred choice for each question.

Overall, it was also be calculated how many have shown strongly agreed, agreed, neutral,

disagree and strongly disagree response (in terms of numbers and percentage).

Mean was also calculated to know overall loyalty and satisfaction level of both selected

brands and to make comparison.

17

CHAPTER 5

DATA ANALYSIS

Question No. 1: I am loyal with my products as I always have good experience with the use

of my selected product.

Analysis Table:

Frequency Percent Valid PercentCumulative

PercentAgree 39 65 65 65

Strongly Agree 21 35 35 100Total 60 100 100

Disagree 1 2 2 2Uncertain 6 10 10 12

Agree 38 63 63 75Strongly Agree 15 25 25 100

Total 60 100 100

Olper's

Q # 1: I am loyal with my products as I always have good experience with the use of my selected product

Product of the respondentMilkPak

Agre

e

Stro

ngly

Agr

ee

Tota

l

Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

MilkPak Olper's

020406080

100120

3921

60

1 6

3815

606535

100

2 10

63

25

100

Q # 1

Frequency Percent

Responses

Freq

uenc

y of

resp

onse

s

18

Interpretation:

MilkPak:

It can be observed from the above table and chart that 21 (35%) customers have shown strongly

agree response and 39 (65%) customers have shown an agree response. Not even a single

customer have shown uncertain, disagree and strongly disagree response which shows that all the

customers have a higher level of agreement towards the asked statement. This can be due to the

fact that customers of MilkPak are loyal with the product they use and they have a good

experience with it. They seems to be highly satisfied in this regard.

Olper’s:


agree response and 38 (63%) customers have shown an agree response and 6 (10%) customers

have shown an uncertain response and just 1 (2%) customer have shown disagree response. Not

even a single customer have shown strongly disagree response. Overall positive response shows

that most of the customers have a higher level of agreement towards the asked statement. This

can be due to the fact that customers of Olper’s are loyal with the product they use and they have

a good experience with it. They seems to be highly satisfied in this regard.

19

Question No. 2: I am loyal with my products as my selected product always serve the

purposes for which I use.

Analysis Table:


PercentAgree 30 50 50 50




Total 60 100 100

Olper's

Q # 2: I am loyal with my products as My selected product always serve the purposes for which I use


Agre

e

Stro

ngly

Agr

ee

Tota

l

Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

MilkPak Olper's

020406080

100120

30 30

60

3 14 934

6050 50

100

523 15

57

100

Q # 2

Frequency Percent

Responses

Freq

uenc

y of

resp

onse

s

Interpretation:

MilkPak:


agree response and 30 (50%) customers have shown an agree response. Not even a single 20

customer have shown uncertain, disagree and strongly disagree response which shows that all the


fact that customers of MilkPak are loyal with the product they use as they feel that their selected

product always serve the purposes for which they use it. They seems to be highly satisfied in this

regard.

Olper’s:






can be due to the fact that customers of Olper’s are loyal with the product they use as they feel

that their selected product always serve the purposes for which they use it. They seems to be

highly satisfied in this regard.

21

Question No. 3: I try new products launched in the market.

Analysis Table:


PercentStrongly Disagree 16 27 27 27



Total 60 100 100Strongly Disagree 20 33 33 33



Total 60 100 100

Olper's

Q # 3: I try new products launched in the market


Stro

ngly

Dis

agre

e

Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

Stro

ngly

Dis

agre

e

Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

MilkPak Olper's

0

40

80

120

1630

7 6 1

60

20 256 7 2

6027

50

12 10 2

100

33 4210 12 3

100

Q # 3

Frequency Percent

Responses

Freq

uenc

y of

resp

onse

s

Interpretation:

MilkPak:


disagree response and 30 (50%) customers have shown disagree response. 7 (12%) customers

22

have shown uncertain response. Just 6 (10%) and 1 (2%) customers have shown an agree

response and strongly agree response respectively which shows that most of the customers have

a higher level of disagreement towards the asked statement. This can be due to the fact that

customers of MilkPak are loyal with the product they use as they feel that their selected product

always serve the purposes for which they use it and do not try new products. They seems to be

highly satisfied with the product they are using.

Olper’s:


disagree response and 25 (42%) customers have shown disagree response. 6 (10%) customers

have shown uncertain response. Just 7 (12%) and 2 (3%) customers have shown an agree

response and strongly agree response respectively which shows that most of the customers have

a higher level of disagreement towards the asked statement. This can be due to the fact that

customers of Olper’s are loyal with the product they use as they feel that their selected product

always serve the purposes for which they use it and do not try new products. They seems to be

highly satisfied with the product they are using.

23

Question No. 4: I am loyal with my products as my selected product holds good reputation

in the market.

Analysis Table:


PercentDisagree 7 12 12 12Uncertain 8 13 13 25


Total 60 100 100Disagree 6 10 10 10Uncertain 10 17 17 27


Total 60 100 100

Olper's

Q # 4: I am loyal with my products as My selected product holds good reputation in the market


Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

MilkPak Olper's

020406080

100120

7 831

14

60

6 1029

15

60

12 13

52

23

100

10 17

4825

100

Q # 4

Frequency Percent

Responses

Freq

uenc

y of

resp

onse

s

Interpretation:

MilkPak:



have shown uncertain response. 7 (12%) customers have shown disagree response and not even a 24

single customers have shown strongly disagree response. Overall positive response shows that

most the customers have a higher level of agreement towards the asked statement. This can be

due to the fact that customers of MilkPak are loyal with the product they use as they feel that

their selected product have a good reputation in the market. They seems to be highly satisfied in

this regard.

Olper’s:







that their selected product have a good reputation in the market. They seems to be highly

satisfied in this regard.

25

Question No. 5: I am loyal with my products as my selected product manufacturer

regularly add new features in his product.

Analysis Table:







Total 60 100 100

Olper's

Q # 5: I am loyal with my products as My selected product manufacturer regularly add new features in his product


Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

Stro

ngly

Dis

agre

e

Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

MilkPak Olper's

0

40

80

120

2 527 26

60

1 6 10 22 21

60

3 8

45 43

100

2 10 1737 35

100

Q # 5

Frequency Percent

Responses

Freq

uenc

y of

resp

onse

s

26

Interpretation:

MilkPak:


agree response and 27 (45%) customers have shown an agree response and just 5 (8%) customers

have shown uncertain response. Just 2 (3%) customers have shown disagree response and not

even a single customers have shown strongly disagree response. Overall positive response shows

that most the customers have a higher level of agreement towards the asked statement. This can

be due to the fact that customers of MilkPak are loyal with the product they use as they feel that

the manufacturer of their product regularly add new features in the product. They seems to be

highly satisfied in this regard.

Olper’s:







that their selected product have a good reputation in the market and seems to be highly satisfied

in this regard.

27

Question No. 6: I am loyal with my products as I feel quality of my selected product

matches with the price I pay.

Analysis Table:


PercentUncertain 5 8 8 8





Total 60 100 100

Olper's

Q # 6: I am loyal with my products as I feel quality of my selected product matches with the price I pay


Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

Stro

ngly

Dis

agre

e

Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

MilkPak Olper's

0

40

80

120

525 30

60

1 3 120

3560

8

42 50

100

2 5 233

58

100

Q # 6

Frequency Percent

Responses

Freq

uenc

y of

resp

onse

s

28

Interpretation:

MilkPak:



have shown uncertain response and not even a single customers have shown disagree and

strongly disagree response. Overall positive response shows that most the customers have a

higher level of agreement towards the asked statement. This can be due to the fact that customers

of MilkPak are loyal with the product they use as they feel that the quality of their selected

product matches with the price they pay. They seems to be highly satisfied in this regard.

Olper’s:



have shown an uncertain response and 3 (5%) customers have shown disagree response and just

1 (2%) customer have shown strongly disagree response. Overall positive response shows that

most of the customers have a higher level of agreement towards the asked statement. This can be

due to the fact that customers of Olper’s are loyal with the product they use as they feel that the

quality of their selected product matches with the price they pay. They seems to be highly

satisfied in this regard.

29

Question No. 7: I am loyal with my products and will continue to purchase my selected

product even if its price will increase.

Analysis Table:






Total 60 100 100

Olper's

Q # 7: I am loyal with my products and will continue to purchase my selected product even if its price will increase


Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

MilkPak Olper's

0

20

40

60

80

100

120

1 117

4160

5 922 24

60

2 2

28

68

100

8 15

37 40

100

Q # 7

Frequency Percent

Responses

Freq

uenc

y of

resp

onse

s

30

Interpretation:

MilkPak:


agree response and 17 (28%) customers have shown an agree response and just 1 (2%) customer

have shown uncertain response and just 1 (2%) customer have shown disagree response and not



be due to the fact that customers of MilkPak are loyal with the product they use as they feel that

they will continue to purchase the selected product even if its price will increase. They seems to

be highly satisfied in this regard.

Olper’s:



have shown an uncertain response and 5 (85%) customers have shown disagree response and not




that they will continue to purchase the selected product even if its price will increase. They

seems to be highly satisfied in this regard.

31

Question No. 8: I am satisfied with my selected product.

Analysis Table:






Total 60 100 100

Olper's

Q # 8: I am satisfied with my selected product


Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

MilkPak Olper's

0

20

40

60

80

100

120

1 8

37

14

60

6 718

29

60

213

62

23

100

10 12

30

48

100

Q # 8

Frequency Percent

Responses

Freq

uenc

y of

resp

onse

s

Interpretation:

MilkPak:


agree response and 37 (62%) customers have shown an agree response and 8 (2%) customer 32

have shown uncertain response and just 1 (2%) customer have shown disagree response and not



be due to the fact that customers of MilkPak are loyal with the product they use and seems to be

highly satisfied.

Olper’s:



have shown an uncertain response and 6 (10%) customers have shown disagree response and not



can be due to the fact that customers of Olper’s are loyal with the product they use and seems to

be highly satisfied.

33

Question No. 9: I made the right decision while purchasing me product.

Analysis Table:


PercentUncertain 2 3 3 3





Total 60 100 100

Olper's

Q #9: I made the right decision while purchasing me product


Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

Stro

ngly

Dis

agre

e

Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

MilkPak Olper's

0

20

40

60

80

100

120

2

3325

60

2 2 313

40

60

3

5542

100

3 3 522

67

100

Q # 9

Frequency Percent

Responses

Freq

uenc

y of

resp

onse

s

Interpretation:

MilkPak:



34

have shown uncertain response and not even a single customer have shown disagree and strongly

disagree response. Overall positive response shows that most the customers have a higher level

of agreement towards the asked statement. This can be due to the fact that customers of MilkPak

are loyal with the product they use and they feel that they made the right decision while

purchasing the product. They seems to be highly satisfied in this regard.

Olper’s:



have shown an uncertain response and 2 (3%) customers have shown disagree response and 2

(3%) customers have shown strongly disagree response. Overall positive response shows that


due to the fact that customers of Olper’s are loyal with the product they use and they feel that

they made the right decision while purchasing the product. They seems to be highly satisfied in

this regard.

35

Question No. 10: My experiences of using my selected product has always been good.

Analysis Table:






Total 60 100 100

Olper's

Q # 10: My experiences of using my selected product has always been good


Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

MilkPak Olper's

0

20

40

60

80

100

120

5 822 25

60

7 919 25

60

8 13

37 42

100

12 15

3242

100

Q # 10

Frequency Percent

Responses

Freq

uenc

y of

resp

onse

s

36

Interpretation:

MilkPak:


agree response and 22 (37%) customers have shown an agree response and just 8 (13%)

customer have shown uncertain response and just 5 (8%) customers have shown disagree

response. Not even a single customer have shown strongly disagree response. Overall positive

response shows that most the customers have a higher level of agreement towards the asked

statement. This can be due to the fact that customers of MilkPak feel that their experiences of

using the selected product has always been good. They seems to be highly satisfied in this

regard.

Olper’s:



have shown an uncertain response and 7 (12%) customers have shown disagree response. Not



can be due to the fact that customers of Olper’s feel that their experiences of using the selected

product has always been good. They seems to be highly satisfied in this regard.

37

Question No. 11: I recommend my product to others.

Analysis Table:


PercentDisagree 1 2 2 2Agree 23 38 38 40




Total 60 100 100

Olper's

Q # 11: I recommend my product to others


Disa

gree

Agre

e

Stro

ngly

Agr

ee

Tota

l

Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

MilkPak Olper's

020406080

100120

123

36

60

114 18 27

60

2

3860

100

223 30

45

100

Q # 11

Frequency Percent

Responses

Freq

uenc

y of

resp

onse

s

38

Interpretation:

MilkPak:



have shown disagree response. Not even a single customer have shown an uncertain and strongly

disagree response. Overall positive response shows that most the customers have a higher level

of agreement towards the asked statement. This can be due to the fact that customers of MilkPak

feel that their experiences of using the selected product has always been good and they will

recommend this product to others as well.

Olper’s:






can be due to the fact that customers of Olper’s feel that their experiences of using the selected

product has always been good and they will recommend this product to others as well.

39

Question No. 12: I purchase same product time and again.

Analysis Table:







Total 60 100 100

Olper's

Q # 12: I purchase same product time and again


Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

Stro

ngly

Dis

agre

e

Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

MilkPak Olper's

020406080

100120

4 525 26

60

3 2 5

3812

60

7 8

42 43

100

5 3 8

63

20

100

Q # 12

Frequency Percent

Responses

Freq

uenc

y of

resp

onse

s

Interpretation:

MilkPak:



40




be due to the fact that customers of MilkPak feel that their experiences of using the selected

product has always been good and they purchase same product time and again.

Olper’s:



have shown an uncertain response and just 2 (3%) and 3 (5%) customers have shown disagree

and strongly disagree response respectively. Overall positive response shows that most of the


fact that customers of Olper’s feel that that their experiences of using the selected product has

always been good and they purchase same product time and again.

41

Question No. 13: I never felt the need to replace my current product with some other one.

Analysis Table:






Total 60 100 100

Olper's

Q # 13: I never felt the need to replace my current product with some other one


Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

Disa

gree

Unc

erta

in

Agre

e

Stro

ngly

Agr

ee

Tota

l

MilkPak Olper's

0

20

40

60

80

100

120

5 2

2132

60

7 8 4

41

60

8 3

3553

100

12 13 7

68

100

Q # 13

Frequency Percent

Responses

Freq

uenc

y of

resp

onse

s

Interpretation:

MilkPak:



42

have shown an uncertain response and 5 (8%) customer have shown disagree response. Not even

a single customer have shown strongly disagree response. Overall positive response shows that

most the customers have a higher level of agreement towards the asked statement. This can be

due to the fact that customers of MilkPak feel high level of satisfaction with the existing product,

so, they never felt the need to replace their current product with some other one.

Olper’s:


agree response and 4 (7%) customers have shown an agree response and 8 (13%) customers have

shown an uncertain response and 7 (12%) customers have shown disagree response. Not even a

single customer have shown strongly disagree response. Overall positive response shows that


due to the fact that customers of Olper’s feel high level of satisfaction with the existing product,

so, they never felt the need to replace their current product with some other one.

43

COMPARATIVE ANALYSIS OF BRAND LOYALTY AND CUSTOMER

SATISFACTION OF BOTH BRANDS:

PRODUCT OF THE RESPONDENT N MEAN

MilkPak

Brand Loyalty and Customer Satisfaction

60 3.53

Olper’s

Brand Loyalty and Customer Satisfaction

60 3.37

Interpretation:

It can be observed from the above table that the overall mean value of MilkPak is slightly higher

than the overall mean value of Olper’s. It depicts that customers of MilkPak are more satisfied

with their product.

It can be observed from the above table that the overall mean value of both selected brands have

a tendency towards 4; which shows that customers of both brands have good level of satisfaction

with their respective brands.

44

CHAPTER 6

CONCLUSION, RECOMMENDATIONS & LIMITATIONS

6.1) Conclusion:MilkPak and Olper’s are two of the Pakistan’s leading and most loved brands. Their

strong brand equity appeals to customers with their unique history and availability in most cities

of Pakistan so consumers know and trust it. MilkPak is the market leader and Olper’s is at no. 2.

Presence and demand of both selected brands is high in urban areas and low in rural areas

and their market share from rural areas is also low due to lack of demand in rural areas. On the

other hand, they are mainly targeting families and individuals of middle and high income level

group and charging price accordingly. Due to the price differences, low income people are

choosing other brands like Tarang and Good Milk etc.

Advertisement campaigns of both brands are presenting the love and bonding among family

members i.e. they are giving a message that they bring families together.

On the basis of results of comparative analysis of brand loyalty and customer satisfaction

of both brands, it is concluded that the overall mean value of MilkPak is slightly higher than the

overall mean value of Olper’s. It depicts that customers of MilkPak are more satisfied with their

product. Overall brand loyalty and satisfaction level of customers of both brands was found mild.

6.2) Recommendations:

MilkPak needs to target rural areas as well as their presence and market share in rural areas is

quiet low due to low demand.

45

Olper’s needs to target rural areas as well as their presence and market share in rural areas is

quiet low due to low demand.

MilkPak needs to bring the prices at a competitive market level by reducing the prices as their

competitors are offering low price which is attracting low income people.

Olper’s needs to bring the prices at a competitive market level by reducing the prices as their

competitors are offering low price which is attracting low income people.

Advertisement campaigns of both brands mainly focuses on middle and high social class. So,

they need to include lower middle class and lower class in their advertisement campaigns as

their competitors are doing and targeting lower middle class and lower class.

The current market segmentation of both brands does not include low income people. They need

to include low income people in their market segmentation and target market as well in order to

increase their market share.

As, advertisement campaigns of both brands are presenting the love and bonding among family

members i.e. they are giving a message that they bring families together but they are ignoring

the so many other things like friendship, love and bonding among college and university

students and office colleagues etc. So, it is recommended that they should also add the stated

factors in their ads.

6.3) Limitations:

Following were the limitations of the study:

Scope of study was limited to the brand loyalty and customer satisfaction of MilkPak and

Olper’s .

Time and financial constraints

Reluctance or hesitation of participants to participate in the study

46

SECTION-II

Introduction of the Student

Muhammad Naveed Jafar At present, Working as Retail sales executive in Wi-Tribe since 2009 to till date Worked in Faysal bank from 2007 to 2008 Total working experience is 8year Last Degree is B.com 2006 from Rawalpindi College of commerce (Punjab

University)

47

References:

Aaker, and David, A. (1991). “Managing Brand Equity: Capitalizing On the Value of

BrandName”, The Free Press: New York.

Dick, A.S. and Basu, K. (1994). Customer loyalty: toward an integrated conceptual

framework, Journal of Academy of Marketing Science, 22 (2), pp. 99-113.

Fitzell, P. (1998). The Explosive Growth of Private Labels in North America, Global

Books, New York, NY.

Fornell, C. (1992). “A national customer satisfaction barometer: the Swedish

experience”, Journal of Marketing, 56 (1), pp. 6-21.

Gwinner, K.P., Gremler, D.D. and Bitner, M.J. (1998). “Relational benefits in service

industries: the customer‘s perspective”, Journal of the Academy of Marketing Science, 2

(2), pp. 101-14.

Hagen, D.A. and Matthews, B. (2001). “The impact of store image and shopping

involvement on store loyalty in a clothes purchasing context”, Proceedings of the Annual

Academy of Marketing Conference, Cardiff University, 1-4 July.

Linton, I. (1993). Building Customer Loyalty. Pitman Publishing, pp. 1-10.

Reynolds, K. and Arnold, M. (2000). “Customer loyalty to the salesperson and the store:

examining relationship customers in an upscale retail context”, Journal of Personal

Selling & Sales Management, Vol. 20, pp. 89-97.

Reynolds, K. and Beatty, S. (1999). “Customer benefits and company consequences of

customer-salesperson relationships in retailing”, Journal of Retailing, 75 (1), pp. 11-32.

Rowley, J. (2005). “The four Cs of customer loyalty”, Marketing Intelligence&

Planning, 23 (6), pp. 574-81.

Zeithaml, V., Berry, L. and Parasuraman, A. (1996). “The behavioral consequences of

service equality”, Journal of Marketing, 60 (2), pp. 31-46.

48

APPENDIX

QUESTIONNAIRE

Dear Respondent,

You have been selected as part of my research study regarding Brand Loyalty and Customer Satisfaction. You are requested to fill in the below questionnaire containing few simple questions regarding my research study. I assure, your provided information will be kept in confidence & will be used only for my research purposes.

Also I will highly appreciate your valuable coordination & time spending with me.

SECTION I

Personal Information Area

Your’ Age:

i. 16~25ii. 26~30iii. 31~35iv. 36~40v. 41~45vi. 46 yrs & Above

Your’ Education:

i. Matriculationii. Intermediateiii. Graduationiv. Masters

Your’ Occupation: (if working) _________________

Your’ Monthly income:

i. 10000~15000ii. 15001~20000iii. 20001~25000iv. 25001 and above

SECTION II49

Which brand do you use?

1) Olper’s

2) Milk Pak

3) Others

Questions Strongly Agree

Disagree Neutral Agree Strongly Agree

I am loyal with my products as I always have good experience with the use of my selected product

1 2 3 4 5

I am loyal with my products as My selected product always serve the purposes for which I use

1 2 3 4 5

I try new products launched in the market

1 2 3 4 5

I am loyal with my products as My selected product holds good reputation in the market

1

I am loyal with my products as My selected product manufacturer regularly add new features in his product

1 2 3 4 5

I am loyal with my products as I feel quality of my selected product matches with the price I pay

1 2 3 4 5

I am loyal with my 1 2 3 4 550

products and will continue to purchase my selected product even if its price will increase

I am satisfied with my selected product

1 2 3 4 5

I made the right decision while purchasing me product

1 2 3 4 5

My experiences of using my selected product has always been good

1 2 3 4 5

I recommend my product to others

1 2 3 4 5

I purchase same product time and again

1 2 3 4 5

I never felt the need to replace my current product with some other one

1 2 3 4 5

SECTION III

Your’ Opinion Area

(Here you are free to express any sort of feelings related with your telecom services.

At the end, we are once again thankful to you for your due coordination throughout this questionnaire filling once again we assure, your provided information will be used only for our research purposes & will be kept very confidential once for all.

51

Best Regards & Take Care

52

naveed final project mba marketing

Documents