The Impact of Product Diversification Strategy on Brand Loyalty: A Case Study

If people believe they share values with a company, they will stay loyal to the brand.” This statement by Howard Schultz carries profound truth in it. For any brand and its products to be successful in the market, they should be able to satisfy its consumers. Customers can be retained only when the company identifies the behavioural purchasing patterns of the consumers in a world constantly stuck among changing trends, technology and lifestyle. The purpose of this research study is to investigate the direct relationship between the unique selling methods adopted by Colgate and their diversification in the products that they offer and their combined effect on brand loyalty. This paper provides a preliminary understanding of the various factors that have contributed to the brand loyalty of Colgate over the decades and why people continue to trust the brand despite having the discretion to switch to rival brands at almost similar prices. The study highlights the significance of the effect of brand loyalty on the sale of its products and how by adopting different marketing strategies, brands can retain old customers and attract new ones.