Brand Loyalty and Market Strategy Paper

Brand Loyalty and Market Strategy Paper

Garrett Bowie

Ohio Christian University

October 2, 2017

Brand Loyalty and Marketing Strategy Paper

The author of this article will identify two companies, compare, and contrast how brand loyalty influences customer retention, how customers associate with the brand, the perception of value for the client, the customer’s pride of ownership and the faith and trust customers have in the organization.  

The first organization selected is the Levis Strauss Company.  Levi Strauss was created in 1853 and patented applying copper rivets to pressure points on trousers in 1873. The process of using copper in the manufacturing of the trousers made the product more durable and easily discernable from competitor’s products (Lee, Moon, & Lin, 2008).   The Levi Strauss Company was awarded a Government contract for supplying military service uniforms and became dominant in the market, reaching one billion dollars in sales in 1974 (Lee, Moon, & Lin, 2008).  

Although early on Levi Strauss dominated the global denim market, competitors began successfully participating in methods, which began diminishing the Levi Strauss dominance.  During the eighties and nineties,  intense pressure from the designer jean market impacted the Levis Strauss market share, which fell from nearly nineteen percent of the American market share to just over twelve percent five years later.  Organizations promoted a concept of upscale denim to a trending fashion conscious market.  This concept was strengthened by marketing promotions featuring famous actors and embraced by Calvin Klein, Guess, and Tommy Hilfiger (Lee, Moon, & Lin, 2008).

Levi Strauss recognized the strength of its brand and loyalty of is customers and began branding a marketing strategy centered on being the “original.”   It appears Levi Strauss leadership understood and embraced the concept around “The brand element of that combined market value amounts to around one-third of the total, which confirms the brand as the most important single corporate asset” (Clifton & Simminons, 2003).  Levi Strauss was able to focus on its brand as a powerhouse in the marketplace.  This concept focused the organization on marketing mechanisms and strategies highlighting the end users perception of value and pride in ownership of its products.  

The second organization analyzed is General Motors.  General Motors and its Cadillac brand name is recognizable countrywide.  The Cadillac brand holds a significant brand value and is known for high standards for even non-competing product lines.  Moreover, even the government refers to some health insurance plans as “Cadillac Plans” and are more expensive.  General Motors has increased its customer retention numbers to 51.4 percent over the course of four years by concentrating on customer value, quality in service, and employee recognition and incentive initiatives.