The power of brand loyalty seems to be waning, gradually. Consumers now choose what is readily affordable ahead of their preferred brand. What could be responsible for this? TONIA ‘DIYAN writes
Kudi Ogunsanya is a regular traveller on a particular British airline carrier. For her, flying with this airline to any destination in the world has been a tradition of over 40 years, which she inherited from her parents. So strong is her family’s loyalty to this airline brand that for her and her household, travelling outside Nigeria is either with this British carrier, or no trip. But her continued loyalty to this brand was recently put to test, especially in the face of the biting harsh economic realities in the country.
Recently, when she had to make a choice between flying her preferred airline and others plying the same route from Lagos to America, she finally settled for a Middle East airline for her trip. Her decision was hinged on the over 45 per cent fare differential between both airlines. For her, the difference in fare is enough to pay for other things like shopping in America.
“Well, I think I have had enough of this loyalty thing to this airline. Now, I have to face the present economic reality, and consider my pocket. I have to now patronise ‘pocket friendly’ products or services ahead of consideration for brand loyalty, after all, any airline will get me to my destination safely irrespective of the time difference,” Ogunsanya told The Nation Shopping.
Her choice is one of several now threatening consumers’ loyalties to a brand, especially with the array of competing brands and services all coming at varying prices but offering same quality.
Ogunsanya’s choice is better captured by another consumer, Mr. Matthew Smith, who contended that consumers have become more ruthless in their hunt for value. “Consumers are being much savvier in their shopping habits, because they now place a lot of factors ahead of loyalty. This is why shopping is now done across the discounters and premium retailers; and this trend will only continue,” he said. And for some consumers like Omoba Adeyinka, exploring new brands is the attraction. “My old brands are common and I like to explore new things,” he said.
Literarily, brand loyalty is an attachment to a particular product or service from a certain manufacturer, such that irrespective of any circumstance, a consumer remains committed to the product of a manufacturer. Now the tide is changing.
Research have shown that consumers or shoppers are no longer keen when it comes to brand loyalty- a development that is believed to be swelled by a retail environment now being increasingly driven by promotions. While it is worthy of note that deploying price promotion to boost sales has always been an important part of retail trading and brand loyalty, yet, in recent times, it has also become more of a concern to retailers as the number of products sold on discount continues to rise, thereby cutting down on retailers’ profit earnings. This price promotion strategy is just one of the several ways retailers now strive to outdo one another.
It is now common to see retailers and manufacturers deploy various promotional strategies, especially competitive product categories all to ensure that a product or service either retains its loyalists or attract new ‘converts’ to it. This is why if one retailer introduces a deal, others copy it and even add a new idea. The strategy has proved to be effective considering that some shoppers trade-off their loyalty to a particular brand ahead of price and are always happy to buy across price tiers. So, the same shopper, who will buy a brand ‘A’ today, for instance, is the same that will buy a brand ‘B’ tomorrow, depending on what is on offer/discount.
Aware of consumers’ frequently changing habits, manufacturers have had to remain on their toes to ensure that their brands keep talking to its loyalists and at the same time, trying to recruit new patrons to their products. This, according to experts, is due to the fact that consumers can easily compare prices when products are on the shelf, leading to more price-matching, which has had a major effect on the promotional landscape, thereby resulting to brand disloyalty amongst consumers.
Perhaps, this is why in the Lagos metropolis, it is said an average of 42 per cent of consumers have a brand in mind before they go shopping, while the remaining 58 per cent go for any brand that suits their pocket and meets the quality required such as Semovita and Semolina. Even in categories such as the beverage sections where consumers are found to be more loyal, findings have it that 51 per cent of shoppers pre-plan which brand they are going to buy prior to setting foot in a shop, while 30 per cent change their mind while in the shop and an average shopper buys the cheapest items on the shelf.
Buttressing this point is a Lagos-based cosmetics manufacturer. The manufacturer, who pleaded to remain anonymous, explained that while his products remains very competitive, but the bulk of his sales are from the promotions he offers from time to time. For him, he finds relatively little loyalty, as consumers choose what is on offer before their preferred brand.
However, experts have warned that retailers should pay close attention to the types of deal they offer because a higher level of discount does not mean higher return on investment. They should also consider whether to discount their premium brand, regardless of promotions or support a weaker performing brand with the hope of increasing sales. This is because it has been found out that sometimes, during a week-long sales promotion, it will be possible for the premium product to record sales that triples smaller brands.
But come what may, some consumers say they will remain committed to their brand. A lawyer, Mrs. Aderinola Abiola, is one of such ‘die-hard’ brand loyalist. She explained that she prefers staying glued to her favourite brands because they have proved to be trustworthy and have never failed her. “I don’t see any reason why I shouldn’t be loyal to my brands. As the saying goes, the devil you know is better than the angel you just met,” she said.
