Customers Questions

Role of Marketing Communication to Increase Brand Loyalty
Dissertation Topic:
The Role of Marketing Communication to Increase Brand

Loyalty Krispy Kreme
Name: Farooq Ali Kidwai
ID. No: 13138455
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Case Analysis of Krispy Kreme
Abstract
In this research, the researcher would focus on Krispy Kreme in order
to improve the organizational loyalty through effective marketing
communication tools. The purpose of this research is to determine the
impact of marketing communication on customer loyalty and ultimately
on organizational growth.
The researcher has focused on ontology and epistemology approaches

to define relationship between researcher and the reality to know
about the reality. The research has focused on positivist and
interpretivists approach to conduct the study.
The research has focused on qualitative and quantitative data to

conduct the study. The information has been collected from surveys
under this category. These surveys are of different nature, the
researcher focused on research methodology to collect data
accordingly. The researcher has focused on mix approaches (interview,
questionnaire) to collect data and information. The researcher has
focused on employees and management for research purpose. For the
research purpose, the researcher has selected 100 employees to
determine their viewpoint about organizational operations.
The researcher has focused on interview approach in order to collect

information from employees. Besides that, the researcher ahs focused
upon the interview approach to ask questions from management.
There are 80% of the respondents, who have said that the company
focuses in quality to improve brand loyalty. The employees have said
that the company advertises less about quality and more about flavors
and prices.
Table of Contents
Abstract...........................................................................................................................................2
List of Figures..................................................................................................................................7
Chapter 1: Introduction...................................................................................................................8
1.1 Background of the Research..................................................................................................8
1.2 Krispy Kreme Doughnuts, Inc..............................................................................................10
1.3 Problem Statement.............................................................................................................10
1.4 Aims and Objectives of the Research..................................................................................11
1.5 Research Questions.............................................................................................................12
1.6 Research Outline.................................................................................................................12
Chapter 2: Literature Review (Nike Case Study)............................................................................13
2.1 Introduction........................................................................................................................13
2.2 Business Profile – Nike Inc...................................................................................................13
 Converse Inc......................................................................................................................13
2.3 Marketing Communication Process.....................................................................................14
2.4 Marketing Communication Structure..................................................................................14
2.5 Role of Marketing Communication......................................................................................16
 Differentiate –...................................................................................................................16
 Remind –...........................................................................................................................16
 Inform –.............................................................................................................................16
 Persuade –.........................................................................................................................16
2.6 Coordinating Tools of Communication Mix.........................................................................16
2.6.1 Advertising...................................................................................................................17
2.6.2 Personal Selling............................................................................................................17
2.6.3 Public Relations............................................................................................................17
2.6.4 Direct Marketing..........................................................................................................17
2.7 Governing and Regulatory Bodies in Marketing Communication Industry..........................18
2.7.1 ITC – Independent Television Commission...................................................................18
2.7.2 RA – Radio Authority....................................................................................................18
2.7.3 CAA – Cinema Advertising Association.........................................................................19
2.7.4 Ofcom...........................................................................................................................19
2.7.5 BBC Trust......................................................................................................................19
2.7.6 Internet Watch Foundation..........................................................................................19
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2.8 Rights of Consumers / Stakeholders....................................................................................19

2.9 Marketing Communication Campaign and Strategy............................................................20
Communication objective.........................................................................................................20
Media Objectives......................................................................................................................20
Strategies..................................................................................................................................20
2.10 The media blend................................................................................................................21
Print Media............................................................................................................................21
Broadcast..............................................................................................................................21
Out-of-home.........................................................................................................................21
Internet / Interactive Media..................................................................................................21
2.11 Marketing Communication Audit and Evaluation..............................................................22
Idea forming –...........................................................................................................................22
Relationship development –.....................................................................................................22
Behavioural Activation –...........................................................................................................23
Help or Service Support –..........................................................................................................23
Product Experience –................................................................................................................23
2.12 E-marketing and E-brand Image........................................................................................23
2.13 Nike’s Strategy for direct marketing..................................................................................24
2.14 Nike advertising and Emotional stigmatisation.................................................................25
2.15 Building client Loyalty with valiancy..................................................................................25
2.16 Nike complete Strategy.....................................................................................................25
2.17 Marketing communication plan........................................................................................26
2.18 Effective use of the Communication Mix...........................................................................27
2.19 Legal, Moral Ethical and Social dimensions of Marketing.................................................27
2.20 Media Messages................................................................................................................28
2.21 Introduction of Brand Loyalty............................................................................................28
2.22 The importance of brand loyalty.......................................................................................29
2.23 Service...............................................................................................................................30
2.24 Quality of service...............................................................................................................30
2.25 Consumer satisfaction.......................................................................................................31
2.26 Commitment.....................................................................................................................32
2.27 Trust..................................................................................................................................32
2.28 Corporate Social Responsibilities......................................................................................32
2.29 Sponsorship.......................................................................................................................33
2.30 Hypotheses Development.................................................................................................34

Chapter 3: Research Methodology and Approaches.....................................................................36
3.1 Introduction........................................................................................................................36
3.2 Research Philosophy and Approaches.................................................................................37
3.2.1 Ontology.......................................................................................................................37
3.2.2 Epistemology................................................................................................................37
3.3 Research Paradigms............................................................................................................38
3.3.1 Positivist Approach.......................................................................................................38
3.3.2 Interpretivism Approach..............................................................................................38
3.4 Deductive Method...............................................................................................................38
3.5 Qualitative and Quantitative Data.......................................................................................39
3.6 Bias......................................................................................................................................39
3.7 Validity................................................................................................................................40
3.8 Rejects.................................................................................................................................40
3.9 Target Population................................................................................................................40
3.10 Questionnaire design........................................................................................................41
3.11 Pilot Testing.......................................................................................................................41
3.12 Non-probability Sample selection.....................................................................................42
3.13 Interviews..........................................................................................................................42
3.14 Data Processing and Analysis............................................................................................42
3.15 Data Collection Methods...................................................................................................43
3.16 Ethical Issues.....................................................................................................................43
3.17 Limitations.........................................................................................................................44
Chapter 4: Data Discussion and Analysis.......................................................................................45
4.1 Introduction........................................................................................................................45
4.2 Demographic Characteristics...............................................................................................45
4.3 Questionnaire Analysis from Employees.............................................................................48
4.4 Questionnaire Analysis from Customers.............................................................................65
4.4 Simple Regression Analysis..................................................................................................69
4.5 Comparison of Krispey Kreme vs. Dunkin Donuts...............................................................70
Chapter 5: Data Discussion and Analysis.......................................................................................71
H1: There is a strong relationship between effectiveness of communication and brand image.
..................................................................................................................................................71
H2: There is a strong relationship between brand image and customer loyalty.......................73
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H3: There is a relationship between customer social responsibility in building customers’ trust.
..................................................................................................................................................75
H4: The customer loyalty is related to sponsorship and the quality of the products................76
References....................................................................................................................................78
Appendix: Questionnaire..............................................................................................................82
List of Figures
Figure 1 Research Outline...................................................................................................12
Figure 2 Marketing Communication Process................................................................................15
Figure 3 Frame of Reference..............................................................................................15
Figure 4 Conceptual Framework.......................................................................................35
Figure 5 Research Onion......................................................................................................37
Figure 6 Gender......................................................................................................................45
Figure 7 Education.................................................................................................................46
Figure 8 Age.............................................................................................................................47
Figure 9 Post............................................................................................................................48
Figure 10 Quality....................................................................................................................49
Figure 11 Product Portfolio..................................................................................................50
Figure 12 Traditional Media................................................................................................51
Figure 13 Social Media..........................................................................................................51
Figure 14 Personal Selling...................................................................................................52
Figure 15 Effectiveness of Social Media.........................................................................53
Figure 16 Effectiveness of Social Media.........................................................................54
Figure 17 Effectiveness of Word of Mouth marketing...............................................54
Figure 18 Effectiveness of Quality....................................................................................55
Figure 19 Effectiveness of Brand Endorsement...........................................................56
Figure 20 Ethics......................................................................................................................57
Figure 21 Commitment.........................................................................................................57
Figure 22 Organizational Reputation...............................................................................58
Figure 23 Sponsorships........................................................................................................59
Figure 24 Value for Money..................................................................................................59
Figure 25 Effectiveness of Marketing Communication..............................................60
Figure 26 Effective Media Strategies...............................................................................61
Figure 27 Feedback System...............................................................................................62
Figure 28 Objective Alignment..........................................................................................62
Figure 29 Company Ownership.........................................................................................63
Figure 30 Quality Assurance Team..................................................................................64
Figure 31 Motivated Marketing Management Team..................................................64
Figure 32 Company Values.................................................................................................65
Figure 33 Liking.......................................................................................................................66
Figure 34 Times to Visit KK.................................................................................................66
Figure 35 Favorite Krispy Kreme Products....................................................................67
Figure 36 Favorite..................................................................................................................67
Figure 37 Reason to Like.....................................................................................................68
Figure 38 Communication...................................................................................................69
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Chapter 1: Introduction
1.1 Background of the Research
Marketing communications evidently aims at developing and retaining

strong relationships with its customers, agencies and other
stakeholders for longer run. These relations might serve to be
contrasting among various stakeholders depending upon their type of
stake and interest in company. Same stands true for Nike Inc.
According to Vice President for Nike Inc. Trevor Edwards the purpose of
Nike’s business is to connect with customers not to keep the media
companies alive (Edward, 2012). This reflects in integration or
marketing communication tools via unifying brand and the customers.
This means that unifying the communication methods for IMS
(integrated marketing communication) is not sufficient unless the
brand develops the harmony of relationships with its customers and
other stakeholders on long run.
The environment in the current era is facing higher sensitivity to every

business aspect including marketing communication. The society and
stakeholders are being critical and conscious to what a business brand
stands for, how it is positioned and to what extent it seems to be
ethically, legally and socially acceptable. Integrated marketing
communication tends to be very influential. The influences can be
unintentional or intentional. The marketing communication methods
can be questioned for its impact on society, consumer exploitation,
legal concerns, ethics or morals, or even for its excessiveness (Social,
Legal and Ethical Issues in IMC. 2013).
Advertising can have both positive and negative influences. It

transforms needs of people into their wants on one hand and can even
make people purchase things that they might not need. It promotes a
consumption culture of materialistic nature affecting the economy and
competition on the whole (Social, Legal and Ethical Issues in IMC.
2013). The choice of media is therefore of critical influence. Tiger
Woods been known as brand ambassador for Nike, however Forbes

(2011) discouraged the celebrity endorsement by Tiger Woods for Nike,
anymore. Though the actual reason was an ineffective Nike Advert ‘Did
you learn anything?’, which focussed more on what Wood did wrong
rather than promoting any of the products from Nike. This is because
the consumer today is well informed and is not influenced by irrelevant
ads or being pushed by product from a celebrity (Pomerantz D. 2011).
The objective of any marketing strategy must aim at establishing long

term relationship with customers and other stakeholders. By
maintaining good relationship with customers it is possible for an
organization to promote customer loyalty and their life time value
(Kotler and Armstrong 2009). While the success of an organization
depends on its customers the role of other stakeholders must not be
under estimated. While developing the marketing communication it is
important to take into account the expectation of old stakeholders. By
demonstrating corporate social responsibility and organization can win
the support of its public by establishing its reputation for the concern
of the welfare of society. Similarly, the development of the marketing
communication must take into account suppliers and intermediaries
along the distribution channel.
In promoting customer relationship organization must win the trust of

customers by delivering on their promises. Svendsen (2000) claims
that customers will move away if a company fails to deliver on it
promises. Therefore, companies must create values and must deliver
on their value proposition. As discussed earlier an organization must
maintain good relationship with all its stakeholders. In the development
of marketing communication managers must be sensitive to the moral
and ethical values of its customers. The marketing communication
must reflect the interest of all stakeholders. By using persuasive
communication a company must demonstrate all ethical and moral
considerations so as to win the loyalty of its customers and the support
of society at large.
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By showing corporate social responsibility the public in general would

be happy to do business with the organization. In the development of
the marketing communication an organization must focus on customer
relationship so as to attract new customers and to retain existing once
(Kotler and Keller 2007). As pointed out by Schultz (2009) an
organization must deploy all marketing communication tools to
promote relationship with all its stakeholders. The moral standards and
values which direct a society to make analysis for its decisions are
referred to as Ethics. The behaviours are judged followed by actions on
the grounds of these norms.
The most common legal issues of integrated marketing communication

include fraud, questionable business practices, puffery and misleading
claims. The fraud can be misleading puffery or sometimes bait-and-
switch schemes can also be included. Puffery refers to exaggerating
the brand for its benefit, quality or value without any specific fact such
that the claims cannot be proven false or true (Social, Legal and Ethical
Issues in IMC. 2013.). Both Puffery and bait and switch are the illegal
means. Also misleading adverts or deceptive marketing which involves
product comparison without any support claim or testing are
considered against the law (Issues in Marketing. 2013). In this
research, the researcher would focus on Krispy Kreme in order to
improve the organizational loyalty through effective marketing
communication tools.
1.2 Krispy Kreme Doughnuts, Inc.
Krispy Kreme Doughnuts, Inc. is an American company situated in

North Carolina. It was founded by Veron Rudolph, who first started to
sell donuts in local grocery stores. The products are sold in
supermarkets local grocery stores and gas stations in different regions
of the world. The company has focused on initial public offering to
increase its profit line. The company mainly operated in Canada,
Australia, USA and various European regions.
1.3 Problem Statement

Some drivers devotion perceived risk, inertia , habit , commitment ,

satisfaction , and the relationship between the product or service
(Rundle - Theile and Bennett, 2001). A series of meetings to increase
the satisfaction of customers is very positive, trust, commitment and
continuity of relationship (Hellier et al, 2003 Morgan and Hunt, 1994?.
Selnes, 1998). Aydin and Ozer (2005) claimed a previous loyalty. The
cost of corporate image, quality of service perceived , trust and
customer exchange factors influencing brand loyalty. Moreover, the
results described that trust is one of the main precursors brand loyalty.
The cost of the same quality of service - change detection and realized
that the same amount of influence on brand loyalty.
E-Marketing determines new interactive platforms for two-way

communication channels that allow organisations to be more adaptive
and dynamic. Immediacy impact is also evidently higher making
business possible round the clock (Quirk Biz, 2013). Devising e-
marketing strategy and use of online and social media management
helps developing an e-brand image that is far more influential,
accessible and dynamic than traditional brand image. The major
problem statement of the company is:
“What marketing communication tools are helpful for organizations to

improve consumer brand loyalty?”
1.4 Aims and Objectives of the Research
The purpose of this research is to determine the impact of marketing

communication on customer loyalty and ultimately on organizational
growth. The major objectives are:
 To explore the impact of marketing communication on customer

brand loyalty
 To evaluate the relationship between brand loyalty and growth of
Krispy Kreme
 To identify the marketing communication programs that
influence on Krispy Kreme brand loyalty
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 To recommend Krispy Kreme to improve the organizational brand

loyalty
1.5 Research Questions
The research questions for the study are as below:
1. What is the consumer perception behind brand image of Krispy

Kreme?
2. What factors are influencing for improving brand image of the
company?
3. What key elements must be considered by company to improve
brand image?
4. How effective marketing communication is important to improve
consumer loyalty?
5. What marketing communication tools in case of retaining more
customers?
1.6 Research Outline
The research would be based upon five major chapters. In chapter 1,

the researcher has focused on basic aims and objectives of the
company. In chapter 2, the researcher ahs focused on literature review
while taking Nike as a case study. In chapter, 3 the researcher has
focused on the research approaches to be used in this study. In chapter
4, the researcher has provided the results collected from respondents
and analyzed those results. In chapter 5, the researcher has concluded
the whole research.
Figure 1 Research Outline

Chapter 2: Literature Review (Nike Case Study)

2.1 Introduction
The purpose of this chapter is to analyze various marketing approaches

that are considered and recommended by other authors in this context.
For this purpose, the researcher has focused on Nike, Inc. Case study
to determine that how Nike Inc. has made its business practices
effective to improve business profits and customer brand loyalty. The
detail of the marketing practices has been provided in this chapter.
2.2 Business Profile – Nike Inc
Nike is no new in the series of top leading brands with the mission of
brining innovation and inspiration to every athlete in the world. The
brand however, expands itself to the common man via redefining its
concept of athlete. Nike stresses that whoever has a body is declared
to be an athlete; hence approaching common man to make its brand fit
for everyone. With its origination back in 1950 Bill Bowerman and Phil
Knight came together to merge their ideas of running shoes for the
athletes. Aimed at exploring ways to have competitive advantage for
its athletes Bowerman was a coach at University of Oregon while
Knight was enrolled for his track program. They got together to offer
ideas to Tiger shoes for footwear design. Jeff Johnson joined them in
1965 and started working around marketing material as Nike got
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established. The brand attained the industry leader position by mid of

1980s (History and Heritage – NIKE Inc. 2013). Affiliates in the brand
portfolio that are wholly owned by Nike Inc. include Nike Golf, Hurley
International LLC, Jordan brand and Converse Inc. where in (Our
Portfolio of brands – Nike Inc. 2013):
Converse Inc
Converse Inc. is a legendary brand operating in 160 states with repo of

America’s Original Sports Company. It offers a range i.e. premium and
diverse, for apparel and footwear for both men and women. $1.1 billion
revenue was reported by Converse Inc. in 2011 fiscal year.
Hurley International, LLC
Hurley International deals in designing and distribution of action sports

apparel and footwear. For instance youth life style, skateboarding and
surfing are the prominent ones. $252 million revenue was reported by
Hurley International in 2011 fiscal year.
Jordan Brand
With the thorough influence, dynamic legacy and vision of Michael

Jordan a range of accessories, apparels and footwear are offered under
the premium branding of Jordan Brand. The inspiration caters
education, sports and creativity.
Nike Golf
As evident by the name, the offerings include range of accessories,

bags, balls, equipment, footwear, apparels etc for Golf that are
designed and distributed by Nike Golf. $623 million revenue was
reported by Converse Inc. in 2011 fiscal year. The head quarters are
established in Beaverton, Oregon.
2.3 Marketing Communication Process
Marketing communication is about information exchange messages

between consumers and producers. The term of marketing
communication is somewhat synonymous to marketing but focuses

more on promotional advertisements, various forms of persuasion and
personal selling. The most critical, controversial and costly component
of marketing process is promotional communication (Tyagi and Kumar,
2004).
2.4 Marketing Communication Structure
According to Tyagi and Kumar (2004) the typical communication

process is applied to marketing promotional process. However, it is
customised to the specifications of the marketing mix and strategy.
Following are the typical elements of marketing communication
process:
Figure 2 Marketing Communication Process
Sender in marketing communication process is the marketing manager

while publicity release, adverts, promotional material, presentation for
sales etc. are encoded messages by the marketer. The medium or
channel of communication can be any electronic media, press media,
sales person, etc. The message receiver is the target market segment.
Consumers tend to decode the message according their own
interpretation and perception. Depending upon contextual framework
of receiver (consumers) and sender (marketers) the encoding and
decoding processes can be challenging, complex and critical. This is
because the message is not always as decoded as the sender has
encoded. Consumer response, sales and sales report serve as message
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feedback from consumers to marketers. Promotional messages from

the rivals or market competitors serve as noise element.
Figure 3 Frame of Reference
2.5 Role of Marketing Communication
As discussed above the marketing communication is about informing,

persuading, reminding and educating consumers about the offerings a
business have. The aim of marketing communication is not just
confined to selling, rather making all possible efforts to create and
enhance product or service awareness among the target consumers.
The organisational and customer linkage is developed via marketing
communication activity. Nike embraces the concept of integrated
marketing communication via coordinating all means and tools of
creating awareness about its brand. The integrated approach at Nike
caters adverts via television, magazines, billboards, sporting events
and celebrity endorsement. The media outlets also include online
marketing initiative such as customising shoes for consumers via Nike
id. The purpose is same i.e. illustrating the brand message and brand
know-how (Nike – Integrated Marketing Communications, 2010).
Fill and Hughes (2008) defined DRIP role of marketing communication

involves either or combination of the following:
Differentiate – differentiating Nike from competitors like Adidas

Remind – reminding the target audience what Nike has to offer

and what it actually exists for
Inform – keeping Nike existing and potential customers informed
of new products, offerings, technologically backed brands, means
of communications, etc.
Persuade – to encourage the target market to take certain
actions. For instance: liking Facebook page of Nike, purchasing a
brand, subscribing to information alert, emails, etc.
2.6 Coordinating Tools of Communication Mix
According to Dahlen, Lange and Smith (2010) defined the traditional

tools of marketing communication mix. These tools have been
presented as follow:
2.6.1 Advertising
Adverts are the one way messages that are not customised or
personalised but targeted to the mass of market segment. Nike uses
print and electronic media for advertising. For example: the slogan ‘Just
do it’ is not aimed to target certain consumers or sports person but for
all potential and existing consumers. The swoosh sign is an evidence
for brand identification. Sponsoring sports for athlete wear is another
way of advertising.
2.6.2 Personal Selling
Personal selling performs two way functions where the needs of the
customers are interpreted by the seller to customise the product fit for
the need. The method is devised by Nike in all of their outlet stores.
The customer service is trained to figure out what customers are
looking for by asking right questions. The sales associates are also
trained towards brand information and technology behind them.
2.6.3 Public Relations
A sustainable effort often backed by planning such that goodwill of the

organisation among the mass can be established and retained.
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Maintaining public relations is seen as a requirement by Nike to retain

its responsible corporate image. The company had been accused of
running sweatshops and paying low wages, hence a written code of
conduct has to be signed by the stakeholders to avoid happenings
again.
2.6.4 Direct Marketing
Direction marketing aims at accurately targeting consumers via

communications on personalised grounds followed by ongoing dialogue
and sustained relationships. Nike promoted direct marketing via
mailing print catalogue to female athletes. The catalogue offers
apparel and footwear range, hence making personal access to Nike
more convenient (Marketing Communication Mix, 2009).
All the communication tools have to coordinate such that they

essentially cater their target consumer market with specifically chosen
promotional mix. Such campaign requires more planning to ensure
cohesiveness and consistency in Nike’s organisation, culture and
strategy (Fill and Hughes, 2008)
2.7 Governing and Regulatory Bodies in Marketing

Communication Industry
Several regulatory bodies are involved in the provision of marketing

communication industry’s business framework. Such associations also
include trading and voluntary bodies that formulate and monitor laws
and regulations in marketing communication industry. Certain
authorities to whom parliament gives power are known as statutory
bodies (Ace, 2001).
2.7.1 ITC – Independent Television Commission
The television industry independently does the licensing and regulation

in UK. ITC tends to draw and enforce governing standards with codes of
practices to sponsor or advertise all the television programs. The
regulating body has to issue licenses to TV companies for broadcasting
from and inside UK. ITC’s responsibilities include ensuring a broad
range of quality television services across UK according to the

preferences and taste. ITC is also responsible for maintaining effective
and fair competition along with complains’ investigation (Ace, 2001).
2.7.2 RA – Radio Authority
All radio services that are of commercial nature are regulated and
licensed by the radio authority. All kind of restricted and satellite
services, national FM subcarrier, cable, local and national services are
included. The Broadcasting Act of 1996 and 1990 requires the licenses
and obligations to be monitored by the radio authority. Codes for
licensing are published for licensees including engineering, sponsorship
advertising and programmes. The source of income is the application
fee and annual fee paid by new applicants and existing licensees
respectively. Sanctions are applied in case of violation of rules (Ace,
2001).
2.7.3 CAA – Cinema Advertising Association
The cinema advertising contractors tend to operate under the head of

UK Cinema Advertising Association. Cinema advertisements standards
are maintained, monitored and promoted by CAA (Ace, 2001).
2.7.4 Ofcom
Ofcom independently regulate the communication industry for the UK

and also act as competition authority. The jurisdiction includes fixed
line telecoms, radio and television sectors and operation of wireless
devices. The broadcasting code if violated by the licensed broadcasters
in UK about transmitted program the complaints are considered by
Ofcom (Media Standards Trust 2013).
2.7.5 BBC Trust
BBC’s governing body is BBC Trust. The trust operates independently

i.e. autonomous of external bodies and BBC management. The trust
has been established to be supportive for license fee payers’ interest.
Complains like digital switchover, TV licensing, fair trading, editorial
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content etc are accepted and dealt by BBC Trust (Media Standards
Trust 2013).
2.7.6 Internet Watch Foundation
Internet watch foundation provides internet Hotline for UK IT

professionals and Public such that online crime content can be reported
in confidential and secure manner. The regulatory body is
independently functioning with EU funding. The hosting companies and
internet service providers are facilitated by IWF via ‘notice and
takedown’ service i.e. removing the data from network according to
their remit (Media Standards Trust 2013).
2.8 Rights of Consumers / Stakeholders
Rights of consumers and other stakeholders are also meant to be

catered essentially. Consumer rights’ awareness and influence has
been gaining importance with every passing day. Consumer courts,
government and voluntary authorities are there to safeguard consumer
rights. These include right for safety, right to have correct information,
right to choice, right for to be heard, right for consumer education and
redress (Consumer Voice, 2013). Nike has to act responsibly in
safeguarding all these rights, consumer feedback, and dissemination of
appropriate information with no deceptive marketing. Nike has been
alleged that the working conditions are not fair for employees. Hence
the employees must be equipped with good working conditions, better
payoffs etc. According to Global exchange (2013) Nike is accused of
portraying itself in the business of marketing shoes rather making
them. Hence not taking any responsibility of the factory conditions;
which has been declared as unacceptable by the anti sweatshop
movement. The company has been forced to take responsibility of the
working conditions of employees who make Nike products.
2.9 Marketing Communication Campaign and Strategy

The communication strategy of Nike aims at not only promoting quality

branded product range but also developing long term relationships
with its customers and stakeholders as discussed earlier above.
Communication objective can be assumed as out-performing market

rivals like Adidas via developing strong communication with its
customers and stakeholders (Nike Media Plan, 2009).
Media Objectives might include:
Approaching 50 percent of the target market via internet, social

media, television, etc. at least for 3 months and thrice every
month.
Diverting traffic to Nike website and official Face book page with
increased fans from 14,890,701 (Nike Face book, 2013) to almost
around 18500000
Effective use of social and interactive media to track
psychographics and demographics through measuring
impressions
Increase in advertising budget by at least 30%
Strategies can include:
Sponsoring local and international sports to market Nike’s

presence
Use of media blends i.e. broadcast, print, e-commerce, outlets,
mobile, etc.
Encouraging brand awareness and brand loyalty with strong
cohesive communication messages
2.10 The media blend
The proposed media blend would include:
Print Media
Scheduled press releases to promote new innovatively

developing products of Nike and technology behind them
Promotions and discounts to be announced from local or
regional stores.
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Printed monthly catalogue that can be delivered if subscribed

via Nike website
Creative adverts for magazines and newspaper like Metro or
Evening Standard
Broadcast
Promotions and endorsements via cable television network

Sponsoring television shows and sports
Broadcasting via embedded commercials at digital television
allowing people to pause and drive to web component of Nike
Out-of-home
Sponsoring sporting events with interactive media outlets

Hoardings, billboards etc at bus stops, buses, underground
stations, London street with call-to-action motivation
Internet / Interactive Media
Interactivity can be maximised via website where emails and

notifications via mobile and social networking can be signed up.
Also encouraging consumers to design their own apparels and
shoes with unique account access
Email notifications to be sent twice a month to registered
consumers for upcoming products, sporting events’ tickets, e-
vouchers, news updates etc.
Blogs can be encouraged to be written by local consumers about
Nike’s products services and customer support
Mobile Phone application can be promoted along with
opportunities for opt-in notification for example receiving statistic
score for sports events or athletes that are sponsored by Nike
2.11 Marketing Communication Audit and Evaluation
For large scale planning and

evaluation of a unified
communication campaign
CODAR is recommended for its
strength of analysis across all dimensions and discipline. The five

dimensions will be applied for Nike’s communication campaign audit as
well. These include:
Idea forming – How ideas for encoding message will be generated,

designed and finally selected. Also to what extent the idea is influence
such that it effectively penetrates not to only to the target market of
brand conscious athletes but also to local consumer in their respective
ways
Relationship development – one of the primary aims of Nike’s

marketing communication is relationship building and retaining it over
the longer run. The message idea would be evaluated on the grounds
of its connection strength linking consumer to the brand, brand
ambassadors or its representatives. The research would be required to
assess the brand image and its involvement within the lives of
consumers. Also auditing factors like: accessibility to brand or brand
communicator, sense of being appreciated or recognised individually,
trust and affinity with the Nike’s brand personality and its culture.
Behavioural Activation – This dimension measures the change in

action triggered via response stimulation of the recipient. For instance:
hitting Nike’s website or official Facebook / Twitter pages, making an
enquiry about Nike’s product, attributes and product related services.
Help or Service Support – To evaluate the extent and quality of

support or help promised and delivered by Nike. For instance:
educating or informing customers about company’s policy, process or
product. This should be accompanied with the sense of responsibility
and care for the customer such that customers’ anxiety can be
controlled with helpful attitude and in-time response from Nike.
Product Experience – Allowing customers to feel and share the

product experience in the manner Nike tends to advertise. For
example: promoting runners / shoes for comfort, style, sport specific
etc should be aligned with the consumers’ experience of the promoted
attributes.
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For Nike’s communication campaign evaluation, scores would be

assigned to each stage of plan and audit. The findings will then be
evaluated against standards or objectives descriptions (say SMART
objectives). The actual score for Nike’s marketing communication
campaign will be the contrasted against its planned score (CODAR
2013).
2.12 E-marketing and E-brand Image
The benefits and significance of e-commerce and e-marketing needs no

introduction. The concept has incredibly taken over the businesses and
multinationals across the globe. E-marketing has now been an
essential embedded component of marketing strategy to thrive within
the global industry. The main purpose of e-marketing at is to enhance
the reach area i.e. opening new horizons for businesses by approaching
customers who are not geographically or regionally confined. While,
traditional media restricts the approaching the global and international
consumers; which is facilitated by e-marketing. This in return increases
the scope not only in products and services offerings but also in terms
of sales, customer services, public relations and information
management.
According to Brand republic Nike does not need any more to advertise
itself. Rather the focus should be on developing web content. Nike is
known to be one of the most innovative brands. Hence it was
necessarily requisite to update the traditional brand image to e-brand.
Nike is also known to have an unconventional strategy of advertising.
Nike’s co-founder Phil Knight discourages traditional advertising.
Therefore the company has been putting efforts to re-invent its
marketing strategies and get closer to customers via digital media. One
of the Nike’s spokesperson pronounces that the company does not
need to create awareness anymore, which is actual traditional purpose
of advertising. Rather Nike does cool stuff via digital means. This allows
keeping customers engaged rather than excessive bombardment with
Nike adverts and promotional material. Also the company has swung
the focus to make itself adaptive to customers’ need i.e. not to cut
down cost or just for sake of innovation. To execute what it believes,
Nike UK has cut down the television advert spend by 80% to show that
it does not believe in interruptive marketing.
2.13 Nike’s Strategy for direct marketing
E-marketing has also been employed as the source of direct marketing.

According to Pestridge from Nike, the company aims at inspiring
customers to the extent that they seek out the content or offerings
Nike has under its umbrella. Influential blogs and clips have been
tapped across the online content to promote the Mercurial football boot
which is referred to as the fastest boot on earth.
Direct Marketing strategy also promotes trial and error culture at Nike
where even employees are encouraged to experiment their ideas from
designing product to marketing. Directly communicating and engaging
customers via social media, mobile applications and web interactions
work towards making Nike an e-brand that lives, breathe, grow and
expand with innovation and inspiration being welcomed from every
corner (Jones, 2009).
2.14 Nike advertising and Emotional stigmatisation
Nike complete strategy is to make a robust complete – therefore

powerful that it conjures up fervent client loyalty from folks virtually
everywhere the globe. This can be as a result of Greek deity
advertising uses the emotional stigmatisation technique of archetypes
in its advertising – a lot of specifically, the story of the Hero. It’s
Associate in Nursing age previous tale, a tale of a hero honeycombed
against an excellent foe, and once an excellent struggle, rising
triumphant. In a way, you may say that Nikes selling strategy is
thousands of years previous, and has been exalting client loyalty the
whole time.
2.15 Building client Loyalty with valiancy
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Nike advertising isn’t the sole cluster that uses the Hero model to

inspire client loyalty. Several alternative corporations use this
emotional stigmatisation technique to nice result. In most cases, the
foe is external. The foremost common story of the hero is that of a
person of humble origins taking off to defeat an excellent evil –
one much more powerful than he – and, against all
odds, rising triumphant. This same pattern may apply to, say, a home
security system against a house fireplace, or Associate in
Nursing antacid against pyrosis. As long as there’s a
clearly known enemy and a clearly known hero, the
emotional stigmatisation will begin.
2.16 Nike complete Strategy
Nike advertising takes the common hero story and turns it on its head.
Rather than exalting client loyalty by singling out Associate in nursing
external enemy, it pulls out the stops and focuses on an indoor foe –
our laziness. Greek deity advertising is aware of simply however
typically we have a tendency to battle with our lazy facet. Each
morning once that alarm burst and it’s still wholly dark outside, the
battle begins. After we select however long to run, the battle
continues. This can be however Greek deity selling uses emotional
selling to inspire client loyalty. They grasp that whereas some folks
might establish with Associate in nursing external foe, all folks
establish with an indoor one.
Nike complete strategy is superb on this finish as a result of not solely

is that the internal foe somebody we are able to all hate, the hero is
that the viewer! In a way or another, we have a tendency to square
measure all the hero of our own story, and Greek deity selling has lang
syne known that feeling – and used it to inspire dateless client loyalty
so to recap:
Nike advertising uses the emotional stigmatisation technique of

valiancy to inspire unimaginable client loyalty everywhere the globe.
The hero starts from humble beginnings, challenges a foe larger than
he, and against all odds, prevails. Nike selling isn’t the sole cluster that
uses this model. Alternative brands use it by distinguishing a foe that
their viewers will establish with hating and pit their product against it
to make stronger client loyalty Nike complete strategy takes the
emotional selling story of the Hero and turns it inward. You’re the hero,
and your lazy facet is that the villain.
2.17 Marketing communication plan
Kotler and Armstrong (2009) argue that the marketing plan must take
into account the strategy and culture of an organization. Porter (1986)
claim that a strategy is the means by which an organization competes
in its market. He further claims that the strategy should enable an
organization to achieve a sustainable competitive advantage.
Moreover, Johnson et al (2008) claims that the strategy of an
organization must take into account its culture. If this is the case it
means that the marketing communication strategy must take into
account both the business strategy and the culture of the organization.
Fill and Hughes (2005) refer to an organization strategy as the basis
from which an organization can succeed through its operations. The
implication of this argument is that all communication activities must
be based on the business strategy and organizational culture.
2.18 Effective use of the Communication Mix
According to Fill and Hughes (2012) modern marketing must be based

on effective communication methods. This is also supported by Kotler
and Armstrong (2009) who claim that marketing is a communication
process. It is therefore essential for marketing managers to focus on
the various tools of the communication mix. According to them the
common tools are direct marketing, public relations, personal selling,
sales promotion and advertising. For any marketing effort to be
effective it is critical for marketing managers to make the appropriate
use of the communication tools to achieve the marketing objectives.
Smith and Tailor (2004) take the view that the marketing
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communication must be carried out in an effective and timely manner

so as to achieve organizational objectives.
2.19 Legal, Moral Ethical and Social dimensions of Marketing
From a legal prospective company’s must comply with all legislations

of a country where they operate. Ryan and Johns (2011) claim that
companies must abide by the consumer protection act. Failure to
comply with legislations can endanger the reputation and image of an
organization. Similarly, companies must comply with all business laws
including copy right and trademarks especially when advertising.
Lastly, business organizations must not resort to misleading
information to deceive customers.
It is very important for organizations to behave an ethical manner in

carryout their marketing activities. As Canwell (1998) point out
companies must not promote products such as Alcohol to be a nice
thing to do. Similarly, warning must be indicated for all products
related to Tobacco. Other ethical issues include the type of information
communicated to the public. It must not be misleading or disguised in
any way.
The marketing communication must be delivered in a way that it does

not cause any harm to society. The products offer to society must
promote the social well being of people and it must not cause any form
of tension among groups of customers. The exploitation of sexual
appeal must be avoided in marketing communication. Company must
ensure that the care for the welfare of society. Kotler and Armstrong
(2009) claim that successful companies are those that demonstrate
their corporate social responsibility. By caring for the welfare of society
companies can shape their reputation and image. Moreover, Gospe
(2008) asserts that business organization must not offer defective or
chemically harm full products at lower prices for economically less
privilege customers to buy due to low prices.
Moral values play an important role in consumer behavior. People are

today and enlightened and would not want to do business with
organizations involved in corporate crimes or tax evasion. Customers

today prefer to do business with companies that support humanitarian
causes. Many companies are today making substantial donation for to
charities for cancer research and powity alleviation.
2.20 Media Messages
The development of marketing messages for the media must take into
account the content and the audience. Potter (2010) identifies three
major elements which companies must consider when developing the
communication message.
These three elements are rationality, emotion and morality. To

develop a rational message an organization must develop
advertisement that take into account the interest of the targeted
customers. The message must be communicated in the way that
clearly demonstrates the benefits of a product or service and the way it
will satisfy the needs of customers. This must include the added values
as well as the value proposition a company has to offer to its
customers.
2.21 Introduction of Brand Loyalty
Over the last four years, brand loyalty is recognized as focal point of
literature and marketing professionals. And ' Partner account for the
construction and maintenance of the brand (Aaker, 1991). Some
analyzes suggest that promoting brand loyalty reduces the efforts and
additional marketing costs. Statistics show that it costs six times less
(customer loyalty) that to new customers (Rosenberg & Czepiel, 1984)
to attract and / or receive. These results raise the value of brand
loyalty. Loyal customers are less involved in decision making, such as
whether to buy a product or service among the dealers or not? (Rundle
- Theile and Bennett, 2001), or are willing to pay more for a particular
brand ? (Reichheld 1996, and Bennett, 2001), etc.
" Idea brand loyalty has its roots in the late 1920" (Bennett 2001,
p.3 ) . The most commonly used definition of faith as "the biased ( non
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- random ) behavioural response (purchase ) expressed over time by

some decision-making unit with one or more other brands on a set of
chains , as a function of psychological processes " (Jacoby 1971 , p.25 )
. Description Fournier and Yao (1997) is the hub of the business
marketing strategies to develop and maintain consumer loyalty to the
brand. This is particularly evident in highly competitive markets,
unpredictable and very little product differentiation. Ahuvia and Carroll
(2006) suggested that the brand is loved, in turn, associated with high
levels of loyalty and word - mouth - positively.
2.22 The importance of brand loyalty
Brand Loyalty is vital for marketing and consumer researchers (Aaker,

1991 Reichheld, 1996). In the context of services, many researchers
have focused on the importance and meaning of brand loyalty
(Asuncian et al, 2004. Bloamer et al, 1999. Caruana, 2002). The
organize that have pool of brand loyalistshave larger market share and
higher return on investment , in turn . Many other researchers have
favored this (Buzzell et al, 1975. Raj, 1985 Jensen and Hansen, 2006).
The results speak for produce marketing officers and up - keep of
brand loyalists . To achieve these goals , knowledge of the variables
that lead to brand loyalty is a key issue .
Anderson et al . ( 2004 ) argued loyal and satisfied customer base

helps to increase the relative bargaining power of unions when it
comes to suppliers , partners and channels . So this should not affect
the value of shareholders' belief in a positive way , to reduce the
volatility and risk associated with future cash flows. Dick and Basu
(1994) held the vision that creates positive WOM communication
strategies faith (oral ) and supported by loyal customers competitive .
The results are aimed at strategic and marketing to build and maintain
strong customer loyalty . Oliver (1999), agreed with Dick and Basu
loyalty is committed to positive word of mouth . Kotler and Keller
(2005), said that " based on the 20-80 principle , to create the top 20%
of customers 80 % of the profits for the company. " This favorable
relationship between a company and its customers are profitable for

your business.
2.23 Service
Devotion Literature was found to have the services of consumer

durables markets different approaches , such as faith is measured
differently. The literature also shows that the goods and services in
different market in terms of what and how to measure brand loyalty .
Javalgi said Moberg (1997) has a good relationship with the supplier to
the consumer , there are more chances that consumers are loyal to the
brand . Lovelock et al . ( 1998 ) states that the service is becoming
more and more important for the Australian economy , accounting for
70 % of GDP and 77 % of total employment in Australia . " Over the
next decade is expected 90 % of all new jobs in Australia and New
Zealand are in the service sector " (Lovelock et al. R6 1998).
Furthermore, the services , network providers in the mobile phone
industry a major cause of high point . Thus , this sector is one of the
main reasons for the spread in these days . So consider an attractive
boulevard marketing companies trying to act responsibly towards
users.
2.24 Quality of service
Parasuraman et al. ( 1988 ) that the quality of service is defined as "the

overall assessment of a particular service business resulting from the
comparison of the company " s performance to the general
expectations of customers on how to run their businesses . "Jamal and
Anastasiadis ( 2007 ) view held by a small area of the research
literature has examined the impact of some aspects of quality of
service for customer satisfaction and loyalty. They also argued that
customer satisfaction is positively associated with brand loyalty . Cody
and Hope ( 1999 ) pointed out that the investigation of quality of
service for the construction of the most difficult task because of their
properties in relation to the examination of the quality of construction.
Page 31 of 88
Furthermore , this study may be related to service provided by the

practice and its consequences.
The above mentioned ‘Earl and Tiger’ advert was also put to criticism
in exploitation of a dead man to sell shoes. The message content ‘Did
you learn anything?’ was taken as fining Tiger Woods and creating
impact of getting over the scandal such that the Nike business should
be of utmost importance again. People declared it as unacceptable in
terms of morals as someone posted ‘someone at Nike should have said
Just don’t do it’ (Mullman, 2010).
2.25 Consumer satisfaction
In most of the literature related to behavior intention , integrated

overall satisfaction as a dominant factor in their mind purchasing
loyalty ( rang et al., 1996). As Bloamer and Kasper (1995), customer
loyalty is one of the main roads that customer satisfaction is the
product or service received explicit . For this reason , brand loyalty is at
the heart of marketing strategy . Soloman (1994) investigated the
market making can be a loyal customer , as in nature , although it is
quite simple and provide satisfaction with the brand ( s ) present
accordingly. Many researchers have concluded that satisfaction is one
of the main determinants of customer loyalty (Jamal and Anastasiadou
2007, Bearden and Teel 1983 Dick and Basu, 1994). . Bontis et al
(2007) conducted a survey and found that increasing the reputation of
customer satisfaction in the markets. Reputation partial understanding
of the relationship between satisfaction and trust and the relationship
between satisfaction and recommendation. Tovikkai and
Jirawattananukool (2001) show that they understand that existing
consumers specify easier than finding new customers. Consumers who
receive a high frequency is considered more likely satisfied with our
products.
2.26 Commitment
Kelley et al . ( 1990 ) stated that "the ' organizational commitment of

service customers is sign of risk the organization for customers or
identify with the goals and values of the organization and service for
the customer to keep as active participants in the service encounter "
(p. 322 ) . Taxes et al. (1998), focusing on the handling of complaints in
respect of service and commitment. There are many companies who
provide a vision for the proper management of customer complaints
and grievances source brand commitment and dedication. Effective
handling of complaints dramatically increases customer loyalty and
improve the quality of service as well.
2.27 Trust
Morgan and Hunt (1994), described as "The Trust is an important factor

for the development of market relations and the existence , when
confidence in the reliability and integrity of partners exchanging a part
" (p. 23) . Ballester and Aleman ( 2001 ) reported that trust and
satisfaction are linked conceptually . as variables to generate
consumer participation , especially in cases of high participation.
Anderson and Narus (1990) Argued that when a person has confidence
belief that actions are the other "s positive influence of his / her own .
in order to trust a brand, consumers should perceive quality as
favorable object . Nike faced legal obligations with Marc Kasky, a
campaigner who accused Nike for misleading and false adverts
according to California law (Campaign, 2003).
2.28 Corporate Social Responsibilities
Business scandals involving high profile organizations such as

Microsoft, Nike, Apple , Enron etc have rocked the corporate world and
become front page news through media. This has taken consumer
confidence in both business leaders and economy creating concern
about business ethics and governance. As a result (CSR) has become
very important to this entire world. CSR, which includes an elements as
environmental protection, social equity and economic growth, these
elements make strong affinity with the foundation rules or principles of
quality management. As CSR implemented by many of organizations
by means of assuring values base on corporate governance, the quality
Page 33 of 88
community now has opportunities and responsibilities to take

leadership in promoting ethical business practices and driving CSR to
regain consumer confidence. The International Organization for
Standardization, recognised by world as ISO describes CSR as "A
balance approach for organizations to address economic, social and
environmental issues in a way that aims to benefit people communities
and society. CSR include different issues:
 Human rights.
 Workplace and employee issues, including occupational health
and safety.
 Unfair business practices.
 Organization governance.
 Environmental aspects.
2.29 Sponsorship
Nike pays prime athletes in several sports to use

their merchandise and promote and advertise their technology and
style.The primary track endorser was distance runner Steve Pre
fontaine. Pre fontaine was the prized pupil of the company's co-
founder, Bill Bower man, whereas he coached at the University
of Oregon. Today, the Steve Pre fontaine Building is known as in his
honour at Nike’s company headquarters.
Nike has conjointly sponsored several different eminent track and field

athletes over the years, like Frederick Carleton Lewis, Jackie Joyner-
Kersee and Sebastian Coe. The sign language of athlete Michael Jordan
in 1984, together with his later promotion of Greek deity over the
course of his career, with film maker as Mars Blackmon, tried to be one
in all the largest boosts to Nike's substance and sales.Nike has been
the official kit sponsor for the Indian cricket team since 2005. Nike may
be a major sponsor of the athletic programs at Penn State University
and named its 1st kid care facility when Joe Paterno once it opened in
1990 at the company's headquarters. Greek
deity originally declared it'd not take away Paterno's name from the

building within the wake of the Penn State sex abuse scandal.
When the Freeh Report was discharged on Gregorian calendar month

twelve, 2012, Greek deity chief operating officer Mark Parker declared
the name Joe Paterno would be removed in real time from the kid
development center. a replacement name has nonetheless to be
declared. Nike conjointly sponsored association football players like
Ronaldinho, Ronaldo, Cristiano Ronaldo, Didier Drogba, Neymar, Zlatan
Ibrahimović, Mario Balotelli, Wesley Sneijder, Wayne Rooney, Landon
Donovan among others.In January 2013, Greek deity signed Rory
McIlroy, the then No one participant within the world to a 10-
yearsupport deal value $250 million. The deal includes victimization
Nike's vary of golf clubs, a move Nick Faldoantecedently represented
as "dangerous" for McIlroy's game. On Gregorian calendar month
twenty one, 2013, Greek deity declared it suspended its contract with
honour Pistorius, because of his being charged with premeditated
murder.In January 2014, it absolutely was wide rumored that Greek
deity had entered negotiations with Manchester United F.C. over a
"billion dollar" kit producing deal, extending their current contract on
the far side 2015.
2.30 Hypotheses Development
The researcher will focus on various hypotheses being used in the

study. These hypotheses are:
H1: There is a strong relationship between effectiveness of

communication and brand image.
H2: There is a strong relationship between brand image and customer

loyalty.
H3: There is a relationship between customer social responsibility in

building customers’ trust.
H4: The customer loyalty is related to sponsorship and the quality of

the products
Page 35 of 88
Figure 4 Conceptual Framework
Advertisement
Quality Increase Sales and profit

Customer Loyalty
Sponsorship
CSR
Communication
Chapter 3: Research Methodology and

Approaches
3.1 Introduction
The chapter focuses on the research approaches used in the study. The
chapter describes that what research methods has been used and how
the sample selection approach has been focused upon. The research
methodology focuses on detailed description about the methods
conducted in the research. The research has considered upon the
research to investigate the current situation. This methodology is a
way to investigate the current situation and provides a framework to
conduct the research about a given topic based on required
requirements. The successful research is based upon effective research
approaches and requires careful consideration about this. Every
research focuses upon different treatment to conduct the study.
There is no research approach, which can be suitable for all research

mechanisms. To conduct effective research, there is need to develop
approaches to achieve required results. The research approaches used
in this study to focus on sample size, data collection and data analysis
approaches. The figure below represents a clear indication about
research approaches and paradigm. In this research, the researcher
would focus on Krispy Kreme in order to improve the organizational
loyalty through effective marketing communication tools.
The figure 3 provides a way, through which the research

emthodologies has been devised. The research onion focuses on the
main core about the research to collect data. The data collected
approaches are primary and secondary sources, which has been
colected through qualitative and quantitative form. The researhcer has
focused on onion diagram to describe that what research
emthodologies have been used in this research to make the study
appropriate.
Figure 5 Research Onion
Page 37 of 88
Source: Saunders et al (2003)
3.2 Research Philosophy and Approaches
The researcher has focused on ontology and epistemology approaches

to define relationship between researcher and the reality to know
about the reality.
3.2.1 Ontology
Ontology is considered as a science of the research topic, which is in

existence. This approach focuses on the ontology about what are the
real factors which or which not are in existence. This describes that
which are the factors which are important to increase customer brand
loyalty. In this approach, it is described that what factors are important
to increase brand loyalty and are linked toward real scenario.
3.2.2 Epistemology
Epistemology is related to information about sort of knowledge about

particular topic. In this philosophy, the world is considered as a sphere,
where knowledge about the information is provided. This approach is
used to address research questions about various factors that might
play an important role in career growth. The research aims to

investigate the belief that extrinsic and intrinsic motivational factors.
3.3 Research Paradigms
The research has focused on positivist and interpretivists approach to

conduct the study.
3.3.1 Positivist Approach
In this approach, it is said that there is a single and objective reality

without considering research belief. In this way, it focuses on positivist
approach focuses on controlled and structural approach to identify the
research topic, hypotheses development as well as suitable research
methodology. This approach focuses on the phenomenon, which are
real and precise. This focuses on observation on employees to check
the performance. This is why; the researcher has focused on
observations and questionnaire approach to conduct the study from
respondents. The researcher has focused on careful steps in order to
avoid biasness.
3.3.2 Interpretivism Approach
On the other side, the interpretivists approach describes the relative

and multiple realities. The research has described that the realities are
multiple and there are structured ways to access such realities. There
are multiple meanings to generate the results through constructed and
subjective interpretations. This approach has focused on receptive
meanings in making senses about multiple realities.
3.4 Deductive Method
The researcher has focused on methods of observation in the first

stage. The researcher has developed the hypotheses to conduct the
research. In deductive approach, the researcher focused in top to
bottom approach. The researcher has focused on hypothesis
development about brand loyalty theories to conduct the research. The
brand strength puts a string impact upon the performance of
organization. This describes that the researcher has focused on the
Page 39 of 88
factors having significant role in brand loyalty. The researcher has

focused on various outcomes in the result section for the study.
3.5 Qualitative and Quantitative Data
The research has focused on qualitative and quantitative data to

conduct the study. The information has been collected from surveys
under this category. These surveys are of different nature, the
researcher focused on research methodology to collect data
accordingly. The researcher has focused on mix approaches to collect
data and information. Te researcher has collected information through
interviews, which are essential to investigate the topic according to
given information. This mix of information is helpful to conduct
research through quantitative data and qualitative data to correlate the
research with realistic approach. The information is collected through
exhibited charts, graphs and other graphical tools. The research
adapted upon the approach, so that, the meaningful ways can be
come. Through this the researcher has focused on positivism to collect
quantitative data and interpretivists approach to collect qualitative
data. Each data type serves different purposes and help validating the
information to obtain data.
3.6 Bias
The researcher has focused on factors of brand loyalty toward Krispy

Kreme. The researcher has focused on employees and management of
the company. The researcher has not only revealed that there are
strong chances that employees might not provide the right information
about the company. Besides that, the management might not disclose
the information related to organisational activities. To avoid such
biasness, the researcher ahs said respondents that the personal
information would not be disclosed the information to anyone and it
would only be used for research purpose.
On the contrary management might not disclose the facts in order to

keep the company’s reputation. In order to avoid such biases the
researcher has clarified the participants that the research outcomes
will be disclose but there are no chances that the identity is revealed to
anyone. The researcher has not tried to obtain the identity of the
researchers and tried to free of biasness. Biasness might be that the
respondents might not have a complete knowledge about the topic. For
this purpose, the researcher has focused upon easy language so that
the respondents might understand.
3.7 Validity
The research has also focused on the validity of the research. The
study has to be validated according to results and outcomes. The
information would be valid and will be useful in an effective way to
make it authenticated. The researcher will also focus on authenticated
sources to make the study valid.
3.8 Rejects
The researcher has given an open chance to respondents to participate

in the study. 8 employees have reje3cted to participate in the study
and the researcher has not forced those respondents. The researcher
has focused on primary data collection through survey and interview.
In this way, the researcher collected information through various
techniques.
3.9 Target Population
The researcher has focused on employees and management for

research purpose. For the research purpose, the researcher has
selected 100 employees to determine their viewpoint about
organizational operations. Besides that, the researcher has focused on
100 customers to ask their viewpoint on it. The researcher has focused
on customers to determine their perception about the Krispy Kreme
products. This would be an effective approach to elaborate the study
results. The researcher has focused on interview approach in order to
collect information from employees. Besides that, the researcher ahs
focused upon the interview approach to ask questions from
management. Through this, the researcher would not be able to reach
Page 41 of 88
research results. For the sampling purpose, the researcher has focused
upon respondents from age group 22 to 50 years who works at Krispy
Kreme. The researcher ahs focused on both males and females in the
research to make the study results unbiased.
3.10 Questionnaire design
The researcher has focused on the questionnaire design to motivate

the respondents toward the study. The researcher has focussed upon
the factors, which are necessary to increase customers’ brand loyalty.
The researcher has developed various questions and asked the
respondents’ opinion based on Likert scale ranging from scale 1
(strongly agree) to scale 5 (strongly disagree). This method is effective
to measure the responses of respondents in an effective way. This is
required for accurate responses. The researcher has focused upon
close ended questions which can be easily quantified and exhibited
during the study. The major variables considered for effective research
to increase customer brand loyalty are quality, prices, advertisement,
celebrity endorsement and ethics. These all are the variables and
effective communication tools to deliver a precise and complete
message to the respondents. Close ended questions are effective in
term of gaining responses and present them in the form of charts and
graphs. The researcher has focused on accurate information plans to
provide the results to readers.
3.11 Pilot Testing
The researcher has tested the questionnaire through pilot testing at

initial. For this purpose, the researcher has selected 15 respondents for
pilot testing, to whom, the questionnaire was distributed. Through this,
the reader was able to know whether the respondents have understood
the nature of questions or whether they will be able to know that what
the researcher wanted to ask. After this, the researcher has asked the
opinion from them to modify the questionnaire context. The researcher
has finalized the questionnaire in very careful manner to make it easy
for the respondents. Management in Krispy kreme was very helpful in
designing the questionnaire in an appropriate way. This is an

appropriate way to make the study results reliable and validate.
3.12 Non-probability Sample selection
The researcher has focused on non-probability sampling approach. The

probability sampling is considered, when there is not possibility to
populate the respondents in the study. There were various
respondents, who were not comfortable in the study. Therefore, the
researcher has focused on non-probability sampling approach, where
all respondents have been given an equal chance of selection. The
research criteria were depending upon the participants’ willingness.
This approach is effective and less time taking as compared to
probability sampling approach. However, there is possibility that the
respondents might show biasness in their responses. For this purpose,
the researcher will ensure the respondents that these responses are
only for study purpose and these responses have no link to
management. In this way, the chances of biasness would be reduced.
3.13 Interviews
The researcher has also focused on interview approach to ask the

questions from the management. The interview is considered an
effective approach to collect the data from respondents. This is a way
of primary research and is effective as compared to questionnaire as
more detailed results can be collected. However, the researcher has
only focused on management team to conduct the interview. The
reason is that, this approach is very time taking and the researcher has
not enough time to collect the information from all respondents
through interview. Besides that, there are also chances that the
respondents might deviate from main topic.
3.14 Data Processing and Analysis
The researcher has collected quantitative data in form of questionnaire

and qualitative data in the form of interview. To analyze the
quantitative data, the researcher has focused on charts and tabular
Page 43 of 88
representation and after that, the data has been analyzed. On the
other hand, the researcher has focused on the data analysis and
interpretation in a meaningful way about the interview conducted from
the management. The advantage of charts and graphical approach is
that the researcher might understand the results in a glance and all
characteristics can be observed easily; however, there are also
chances that the reader might misinterpret the information collected
from respondents. This is why, the researcher has also represent the
discussion section, where all possible information about data collection
has been presented.
3.15 Data Collection Methods
For data collection purpose, the researcher has focused on primary

and secondary research in detail. The primary data is helpful for the
researcher to collect relevant and fresh information from the
respondents, which has been generated for the first time. Through this,
the researcher collected the information in a specific way for specific
purpose. For primary data collection purpose, the researcher has
focused on interview and questionnaire approach to collect first hand
information.
On the other side, the secondary data is the data, which is available to
respondents from existing literature in books, journals, internet,
articles, videos, blogs, annual reports, newspapers etc. This is helpful
for the researcher to determine that in which topic a detailed research
has been conducted and where there is a research gap. All these
factors are helpful to make a base for the primary research after
finding the literature gap. To fill this literature gap, a focus is made on
primary data collection methods.
3.16 Ethical Issues
The researcher has tried to make this study ethically effective and for
this purpose, a consent form has been developed for the respondents
before taking part in the research. The researcher has mentioned to
respondents that the study is only for degree purpose and it has no link
with the management. In this way, the respondents were relaxed in

providing their opinion toward a particular response. Besides that, the
researcher has mentioned that the researcher has not focused on any
deception methods to acquire information and responses from the
respondents. The researcher has also not provided any incentives to
respondents to participate in the study. The researcher has indicated
that the researcher would not reveal the information to the
respondents and steps have been taken to ensure that participants can
also provide recommendations and information to improve the
organizational operations. The researcher has also attached the
questionnaire and consent form to respondents before they participate
in the research. The consent form was presented in a simple way so
that participants might effectively participate in the study with their
willingness.
3.17 Limitations
There are various study limitations, which might impact upon the study
results:
 Time management is the major constraint in the study as the

researcher has less time to manage the study. To overcome this
barrier, the researcher has asked permission in advance, so that,
the time can be overcome in an effective way.
 The financial resources of the study were limited, and it was also
difficult for the researcher to meet the management in first
stance. To overcome this barrier, the researcher has focused on
e-mails before taking a time for interview. This was helpful for
the researcher to manage the time and financial resources of the
study.
 Knowledge management was another issue throughout the
research, which has put a challenge for the researcher to
effectively implement the theories into research. However. The
researcher has taken the assistance of supervisor throughout the
research.
Page 45 of 88
Chapter 4: Data Discussion and Analysis

4.1 Introduction
The aim of this chapter is to analyze the results collected from

respondents. The data collected from respondents would be analyzed
in tabular and graphical form. The researcher has focused on males
and females and given an equal opportunity to respondents. The
researcher ahs focused on different parameters to observe the
responses. The detail of these factors has been presented in next
sections.
4.2 Demographic Characteristics
To present the sample characteristics, various demographic

characteristics have been selected.
Table- Gender Distribution:
Response
Male 54
Female 46
In our respondent size, there are 54% males and 46% females, who
have been a part of this study.
Figure 6 Gender
Response
Male
Female
Table- Education
Response
Certificate Holders 10
Diploma Holders 17
Bachelors 38
Masters 24
M Phil 7
PhD 4
In our sample, there are 10% certificate holders, 17% diploma holders
38% are bachelors’ degree holders, 24% masters, 7% have M Phil
degree and 4% are PhD.
Figure 7 Education
Page 47 of 88
Response
Certificate Holders
Diploma Holders
Bachelors
Masters
M Phil
PhD
Table- Age
Response
18-25 19
26-33 33
34-40 24
40-46 13
46+ 11
The respondents’ size said that there are 19% respondents from age
group 18-25; 33% respondents are from 26-33; 24% respondents are
from age group 34-40; 13% respondents are 40-46 age and 11%
respondents are above 46+.
Figure 8 Age
Response
18-25
26-33
34-40
40-46
46+
Table- Position
Response
Employees 89
Middle Management 8
Top Management 3
Figure 9 Post
Response
Employees Middle Management Top Management
3%
8%
89%
Page 49 of 88
In our respondents’ size, there are 89% respondents from line

management (employees); 8% respondents were from middle
management and 3% employees were from top management.
4.3 Questionnaire Analysis from Employees
The researcher has analyzed the data based on Likert scale; the Likert
scale has been identified as below:
1= Strongly Agree
2= Agree
3= Neutral
4= Disagree
5= Strongly Disagree
1. To what extent do you agree with the following

statements?
-In Krispy Kreme, the company focuses on quality in order to

increase customer brand loyalty.
1 2 3 4 5
10 14 32 27 17
From the result, it has been observed that there are 24% of the
respondents, who have said that the company focuses in quality to
improve brand loyalty. The employees have said that the company
advertises less about quality and more about flavors and prices. On the
other side, it has been observed that customers prefer Dunkin Donuts
over Krispy Kreme, because Dunkin Donuts shows that it has
introduced quality products in its product line. It is important for Krispy
Kreme to improve the quality focus, so that, the customer brand loyalty
can be achieved in a detail way.
Figure 10 Quality
Responses
35
30
25
20 Responses
15
10
0
1 2 3 4 5
-The company focuses on product portfolio in order to cater the

customers of different choices and tastes.
1 2 3 4 5
14 21 26 22 17
communicates with customers by introducing new products portfolio in
the market. On the other hand, other respondents have said that the
company does not have a wide variety of the products, which might
put a negative impact on the brand loyalty. However, the major
competitor of the company Dunkin Donuts has more than 100 flavors
in all over the world. This is why; Krispy Kreme has to face a toughest
competition in order to increase its market share.
Figure 11 Product Portfolio
Page 51 of 88
Responses
30
25
20
Responses
15
10
0
1 2 3 4 5
-The company focuses on traditional media (TV, radio,

newspaper) for advertisement.
1 2 3 4 5
14 34 20 19 13
From the respondents, there are 48% of the respondents, who have
said that the company focuses on traditional media for advertisement.
On the other side, other respondents have said that Dunkin Donuts
have strong media and it also focuses on celebrity endorsement to
attract customers. People are more inclined toward brands, when they
see their favorite celebrities in advertisement. However, Krispy Kreme
still has an old method of advertisement, which is good at some
instant. However, at the places, where the advertisement is not run,
the customers canot have brand awareness.
Figure 12 Traditional Media

Responses
40
-The
35
30 company
25
20
Responses focuses on
15 social
10
5 media
(facebook,
0
1 2 3 4 5
twitter, Google ad) to advertise its products.
1 2 3 4 5
20 24 20 24 12
44% of the respondents have said that the company is active in social
media to advertise the products; while, other respondents have said
that the company is not active in social media and this has put a
negative impact on the organizational performance. The reason is that,
most of the competitors of the company are active in social media and
continuously describe their new offerings and products to the social
media. This is the reason; they have gain more demand from the
customers. Krispy Kreme also has to focus on the modern ways of
advertisement to increase the brand exposure and ultimately the brand
loyalty.
Figure 13 Social Media
Responses
30
25
20
Responses
15
10
0
1 2 3 4 5
-The company focuses on personal selling and direct marketing

to attract and retain customers’ loyalty.
Page 53 of 88
1 2 3 4 5
38 36 8 13 5
The analysis shows that there are 74% of the respondents, who said
that the company focuses on personal selling and direct marketing in
order to attract and retain the customers. The personal selling is an
effective way, where the company gains an opportunity to
communicate directly to the customers. Through this, the company
might ask the demands of the customers and offer better products
than before. Dunkin Donuts has also focus on personal selling and
direct marketing and ultimately the performance of the company
improves.
Figure 14 Personal Selling
Responses
30
25
20
Responses
15
10
0
1 2 3 4 5
2. To what extent do you agree that the items below are the
desired outcomes of an ‘effective’ marketing
communication for Krispy Kreme?
-Traditional media
1 2 3 4 5
25 33 18 14 10
There are 58% of the respondents, who said that the company should
focus on traditional media to improve the performance of the company;
on the other side, other respondents have said that the company
should focus on modern ways to promote the products. Traditional
media is an effective marketing communication skill, which must be
considered by the company, so that, the company can attract large
number of customers.
Figure 15 Effectiveness of Social Media
Responses
30
25
20
Responses
15
10
0
1 2 3 4 5
-Social media
1 2 3 4 5
28 30 18 15 9
should focus on social media strategies to attract the customers. The
respondents have said that the company should not rely upon
traditional media, but also on the social media. This blend of marketing
approaches will be helpful for the company to increase the customer
base of the company. The reason is that, some customers might not
have an access to traditional media and some respondents might not
have an access to social media.
Figure 16 Effectiveness of Social Media
Page 55 of 88
Responses
35
30
25
20 Responses
15
10
0
1 2 3 4 5
-Word of Mouth Marketing
1 2 3 4 5
20 31 23 13 13
There are 51% of the respondents, who have said that word of mouth
marketing is an appropriate way to attract the customers. The
company can offer quality products and this might be helpful for the
company to build the positive image of the company. On the other
side, if the company does not offer quality products, then company
might build a negative image and the customers might represent the
negative image of the company. This might also reduce the brand
loyalty of other customers, who might take reviews from other users,
as well.
Figure 17 Effectiveness of Word of Mouth marketing
Responses
35
30
25
20 Responses
15
10
0
1 2 3 4 5
-Quality and Durability of Products
1 2 3 4 5
35 31 10 11 13
The analysis shows that there are 66% of the respondents, who have
said that the quality and durability of products play an important role
to attract the customers. When, the company offers quality products to
the respondents, the customer brand loyalty can be increased.
However, if the company only focuses on advertisement and does not
offer the products according to prescribed manners in advertisement,
this might impact upon the trust of the company and they might stop
purchasing and recommending others to not to purchase products from
the company. A focus on quality is must to increase customer base.
Figure 18 Effectiveness of Quality
Responses
30
25
20
Responses
15
10
0
1 2 3 4 5
-Brand endorsement through celebrities
1 2 3 4 5
17 35 18 16 14
said that the company does have to focus on brand endorsement
through effective celebrities. When the company introduces favorite
celebrities in advertisement with good public image, then company is
in position to increase the customer base of the company. On the other
side, if there are the celebrities with poor public image, this might also
Page 57 of 88
create a negative image of the company. This is why, the company

should be careful in selecting a celebrity.
Figure 19 Effectiveness of Brand Endorsement
Responses
40
35
30
25
Responses
20
15
10
0
1 2 3 4 5
-Ethics and Corporate Social Responsibilities (CSR)
1 2 3 4 5
31 30 21 11 7
said that the company should focus on ethics and corporate social
responsibilities to increase the exposure; so that, the customers might
have a positive image about the company in their minds. When the
companies focus on ethics and corporate social responsibilities in their
products, this puts a better image of the company. However, the
negative activities conducted by the company might reduce the
customer base of the company.
Figure 20 Ethics
Responses
35
30
25
20 Responses
15
10
0
1 2 3 4 5
-Commitment
1 2 3 4 5
34 28 8 7 6
that the company should focus on commitment to increase the brand
loyalty. When the company is committed with the customers in term of
its offering, this will build a positive image of the company. Dunkin
Donuts is highly committed to its customers, this is why, it has
increased major share in the market.
Figure 21 Commitment
Responses
40
35
30
25
Responses
20
15
10
0
1 2 3 4 5
-Organizational Reputation
Page 59 of 88
1 2 3 4 5
28 24 5 14 12
should have improved its values in order to increase the customer
loyalty. When companies have strong culture and better reputation,
this is effective for the company to come in good books of the
customers. However, if the customers are not in favor of the
organizational activities, this can harm the reputation of the company
in long run.
Figure 22 Organizational Reputation
Responses
30
25
20
Responses
15
10
0
1 2 3 4 5
-Sponsorships
1 2 3 4 5
33 33 23 7 4
that the company should sponsor in healthy activities to increase an
exposure in the market. This would be an effective approach for the
company to attract the customers in different seminars, sports and
other activities to gain a support from customers.
Figure 23 Sponsorships
Responses
35
30
25
20 Responses
15
10
0
1 2 3 4 5
-Value for money/ Price
1 2 3 4 5
36 31 10 16 7
There are 67% of the respondents, who said that some respondents
are price sensitive and the company should focus on effective price
strategies, so that, the customers from all income group might have an
access to the products. This would also be good for the company to
increase the customer base, customer loyalty and profit of the
company.
Figure 24 Value for Money
Responses
40
35
30
25
Responses
20
15
10
0
1 2 3 4 5
Page 61 of 88
3. To what extent do you agree that effective marketing

communication plays a role in achieving customer brand
loyalty?
1 2 3 4 5
43 36 10 8 2
that the marketing communication plays an important role in attaining
the customers. They have said that if the company offers quality
products and effective communication marketing thorough social or
traditional media, it would be able to achieve the customer base of the
company. Customer loyalty is highly related to effective performance
of the company.
Figure 25 Effectiveness of Marketing Communication
Response
50
45
40
35
30
Response
25
20
15
10
5
0
1 2 3 4 5
4. To what extent do you agree that the components of

effective marketing communication as below ensure the
loyalty of customers in Krispy Kreme?
- Effective media strategies
1 2 3 4 5
42 37 9 9 3
There are 79% respondents, who said that the company should focus
on effective media strategies to increase the customer base of the
company. When the company focuses on the blend of marketing
strategies, it would be able to attain and retain customers from
different areas and different backgrounds.
Figure 26 Effective Media Strategies
Responses
50
45
40
35
30
Responses
25
20
15
10
5
0
1 2 3 4 5
- Feedback system
1 2 3 4 5
30 34 10 10 4
64% of the respondents have said that the feedback system of the
company should be very strong, where employees and customers
should be allowed to give feedbacks on organizational activities and
products. This would be helpful for the company to determine that in
which areas, it is lacking off and how the business can be improved.
For feedback system, the company should allow the customers to give
feedback on social media. The company should answer the queries in
no time, so that, the customers might not switch toward the
respondents. This is an effective way to meet the demands of the
customers in a detailed manner.
Page 63 of 88
Figure 27 Feedback System
Responses
40
35
30
25
Responses
20
15
10
0
1 2 3 4 5
- Objective Alignment
1 2 3 4 5
34 45 11 8 2
focus on marketing objectives before introducing marketing strategies
in the company. The company should have continuously looked on its
strategies, whether they are aligned with the objectives and the
company is able to achieve its targets or not. These all things are
fruitful for the company to increase the customer base.
Figure 28 Objective Alignment

Responses
50
45
40
35
30
Responses
25
20
15
10
5
0
1 2 3 4 5
- Company Ownership
1 2 3 4 5
33 46 4 15 2
Company ownership styles and methods also put an impact on the

organizational reputation. There are 79% of the respondents, who said
that the company should introduce effective ownership strategies to
attract the investors and the customers. When there are more
investors, the company would have more chances to increase the
capital and the customer loyalty of the company.
Figure 29 Company Ownership
Responses
50
45
40
35
30
Responses
25
20
15
10
5
0
1 2 3 4 5
- Quality assurance team
Page 65 of 88
1 2 3 4 5
38 42 4 9 7
that the company should focus on quality assurance team to provide
good quality products to the customers. The company should have
proper marketing communication over it, so that, the customers might
be attracted toward the products.
Figure 30 Quality Assurance Team
Responses
45
40
35
30
25 Responses
20
15
10
0
1 2 3 4 5
- Motivated Marketing strategies Team
1 2 3 4 5
30 48 5 10 7
have motivated marketing communication team to increase the
exposure of the company. When the company has motivated
marketing strategies team, they would offer more effective marketing
solutions for the company and ultimately, the reputation of the
company would be improved. The marketing team can be motivated
through various rewards, compensation and packages toward
producing innovative form of the advertisement and marketing skills.
These all factors play an important role and the company should have
focused on these factors in a detail way.
Figure 31 Motivated Marketing Management Team

Responses
60
50
40
Responses
30
20
10
0
1 2 3 4 5
- Company Values
1 2 3 4 5
37 40 8 11 4
focus on effective marketing skills and for this purpose, the company
has to improve its value, so that, a large number of customers can be
attracted. When the company is loyal and ethical in its operations, the
company can also improve its customer base. This would be helpful for
the company to increase the brand loyalty.
Figure 32 Company Values
Responses
45
40
35
30
25 Responses
20
15
10
0
1 2 3 4 5
4.4 Questionnaire Analysis from Customers
The researcher has asked different questions from customers to

determine whether they like Krispy Kreme products or not. For this
purpose, 6 questions has been asked from customers.
Page 67 of 88
1. Do you like Krispy Kreme?
1 2 3 4 5
38 29 8 21 4
There are 67% of the respondents, who said that they like Krispy
Kreme and they like its offerings and deliciousness. The company has
expanded its roots in various regions and they can easily get the
products of their own choice from different stores and bakeries. This
makes them feel energetic and full of fun.
Figure 33 Liking
Response
40
35
30
25
Response
20
15
10
0
1 2 3 4 5
2. How many times do you visit Krispky Kreme in a month?
Never 1-3 times a 4-6 times a 7-10 times More than

month month a month 10 times
28 34 23 10 5
There are 28% of the respondents, who said that they never go to eat
Krispy Kreme; 34% of the respondents eat Krispy Kreme for 1-3 times
per month. 23% customers eat Krispy Kreme for 406 times a month;
10% of the respondents eat KK for 7-10 times per month and 5%
respondents eat Krispy kreme more than 10 times.
Figure 34 Times to Visit KK

Response
40
35
30
25
20 Response
15
10
0
Never 1-3 times a 4-6 times a 7-10 times a More than 10
month month month times
3. Which Krispy Kreme products are your favourite?
Doughnuts Coffee Drink

46 30 24
The 46% respondents said that they visit Krispy Kreme to eat
doughnuts; while, 30% of the respondents have said that they prefer to
take coffee in Krispy Kreme. 24% of the respondents have said that
they visit Krispy kreme to take different types of drinks, i.e. juices, milk
shakes.
Figure 35 Favorite Krispy Kreme Products
Response
50
45
40
35
30
Response
25
20
15
10
5
0
Doughnuts Coffee Drink
4. Which is your favourite Doghnuts brand?
Krispy kreme Dunkin Donuts

34 66
From the respondents, there are 34% customers, who prefer Krispy
Kreme; however, 66% of the respondents prefer Dunkin Donuts. They
said that Dunkin Donuts has more flavours and variety than Krispy
Kreme.
Page 69 of 88
Figure 36 Favorite
Response
70
60
50
40 Response
30
20
10
0
Krispy kreme Dunkin Donuts
5. Why do you like Krispy Kreme? Because of ..
Quality Price Discount/ Cleanliness Packaging/

Offers Variety
32 18 8 14 28
In the analysis, 32% of the respondents prefer Krispy Kreme because of
quality; 18% are price sensitive. 8% respondents focus on discounts;
14% focus on cleanliness; while 28% focus on flavours and variety.
Figure 37 Reason to Like
Response
35
30
25
20
Response
15
10
0
Quality Price Discount/ Offers Cleanliness Packaging/
Variety
6. Does company communicate its products effectively in

social media and traditional media?
1 2 3 4 5
25 28 5 30 12
From the respondents; it has been observed that 53% respondents said
that the company is effective in term of communication about its
packages and variety offered. However, other respondents have said
that the company is not active in social media and print media; this
puts a bad impact of the company. This is the reason, they are more
inclined toward other brands.
Figure 38 Communication
Response
35
30
25
20 Response
15
10
0
1 2 3 4 5
4.4 Simple Regression Analysis
This test is effective to measure the relationship of the independent

variables over independent variables in a simple way.
Table: Simple Regression Analysis
Model (Constan Adj. F Sig B t – Sig

t) R² value
Advertisement 11.129 .114 .143 .632 .000 .464 .648
Quality 34.982 .323 5.443 .058 .245 2.54 .024
Sponsorship 30.321 .443 7.324 .078 1.54 2.67 .045
CSR 10.473 .054 1.543 .289 .575 1.22 .249
Page 71 of 88
Communicatio 9.573 .064 1.589 .264 2.87 1.54 .238

n
Dependent variable: Brand Loyalty
The analysis shows that advertisement has adjusted r square of 0.114;

quality has 0.323, sponsorship of .443, CSR of 0.54 and communication
of 0.064. This shows that all these factors are important for the
company to improve the business operations. However, sponsorship
has gained more importance as compared to other variables. However,
all factors are important to make decisions. Simple regression analysis
has provided an opportunity for the respondents to observe all factors,
which provide a base to the company to take the decision.
4.5 Comparison of Krispey Kreme vs. Dunkin Donuts
The purpose of this section is to describe the difference between the

performance of Krispy Kreme and Dunkin Donuts.
Krispy Kreme Dunkin Donuts
Stock Price $17.61 $45.23
Volume 779,924 shares 1,272,494 shares
EPS $0.51 $1.35
Dividend per share $0.34 $0.92
Dunkin Donuts has focused upon effective marketing strategy and it

has mainly put a focus on social media marketing skills. Besides that,
the company wants to aware the public about its new offerings and
products through building awareness and links the strategies with the
objectives. Dunkin Donuts also focuses on celebrity endorsement and it
has hired favorite celebrities of people to advertise the products.
Besides that, Dunkin Donuts also focuses on various seasonal and
occasional packages for the customers. The major social analytical
tools used in the company are Buddy Media and Radian6 to monitor
the activities of social media campaigns. The company focuses on
Facebook and twitter to promote the products. The company promotes
the products not only a particular region, but all over the world. This is
considered a strong competitor in the industry, as the company
focuses on product development and market development in a detail
way. The company also focuses on the demand of respondents, before
launching a product or flavor for the customers. The company does not
offers its products on grocery stores; rather, it has made its own outlets
in different locations. Besides that, it offers location based services to
the customers, while identifying the demand and culture of the
customers.
It is also recommended to Krispy Kreme to focus on the operations of

the company and drag the customers through innovative ways. The
company should also introduce location based services, where the
customers might have an approach toward the products offered in this
scenario. Through this, we can said that the hypotheses developed in
this scenario are considered true and the company has to work on
these factors to improve the organizational performance. Dunkin
Donuts not only satisfies the customers’ but also the investors, and
ultimate the capital and profit of the company increases.
Chapter 5: Data Discussion and Analysis

The chapter concludes the results collected from the respondents to
check the hypotheses developed in the study. The hypotheses have
been observed after checking the responses from respondents. Here is
an analysis of the hypotheses, we developed in the study.
Page 73 of 88
H1: There is a strong relationship between effectiveness of

communication and brand image.
The hypothesis developed in the study is true that there is a strong

relationship between communication strategies and brand image. From
the result, it has been watched that there are 24% of the respondents,
who have said that the company considers in quality to enhance brand
loyalty. The representatives have said that the company publicizes less
about quality and all the more about flavors and costs. On the other
side, it has been watched that customers favor Dunkin Donuts over
Krispy Kreme, in light of the fact that Dunkin Donuts demonstrates that
it has presented quality items in its product offering. It is paramount for
Krispy Kreme to enhance the quality achievement, so that, the
customer brand loyalty might be accomplished in a point of interest
way.
corresponds with customers by presenting new items portfolio in the
market. Then again, different respondents have said that the company
does not have a wide mixed bag of the items, which may put a
negative effect on the brand loyalty. On the other hand, the significant
contender of the company Dunkin Donuts has a long list of flavors in
everywhere throughout the world. This is the reason; Krispy Kreme
needs to face a hardest rivalry keeping in mind the end goal to build its
market share.
From the respondents, there are 48% of the respondents, who have
said that the company concentrates on traditional media for notice. On
the other side, different respondents have said that Dunkin Donuts
have solid media and it additionally concentrates on VIP underwriting
to draw in customers. Individuals are more slanted to brands, when
they see their most loved famous people in ad. Nonetheless, Krispy
Kreme still has an old strategy for commercial, which is great at some
moment. In any case, at the spots, where the promotion is not run, the
customers cannot have brand loyalty.
44% of the respondents have said that the company is dynamic in

social media to publicize the items; while, different respondents have
said that the company is not dynamic in social media and this has put
a negative effect on the authoritative execution. The reason is that, the
greater part of the contenders of the company is dynamic in social
media and ceaselessly portrays their new offerings and items to the
social media. This is the reason; they have pick up more request from
the customers. Krispy Kreme likewise needs to concentrate on the
cutting edge methods for notice to build the brand introduction and at
last the brand loyalty.
ought to concentrate on social media methodologies to draw in the
customers. The respondents have said that the company ought not
depend upon traditional media, additionally on the social media. This
mix of marketing methodologies will be useful for the company to build
the customer base of the company. The reason is that, a few
customers may not have a right to gain entrance to traditional media
and a few respondents may not have a right to gain entrance to social
media.
H2: There is a strong relationship between brand image and

customer loyalty.
The results show that there is a strong relationship between brand

image and customer loyalty; hence H2 is true. There are 51% of the
respondents, who have said that informal marketing is a proper
approach to draw in the customers. The company can offer quality
items and this may be useful for the company to construct the positive
picture of the company. On the other side, if the company does not
offer quality items, then company may manufacture a negative picture
and the customers may speak to the negative picture of the company.
This may likewise diminish the brand loyalty of different customers,
who may take audits from different clients, too.
Page 75 of 88
The analysis demonstrates that there are 66% of the respondents, who
have said that the quality and strength of items assume an imperative
part to pull in the customers. At the point when, the company offers
quality items to the respondents, the customer brand loyalty might be
expanded. Be that as it may, if the company concentrates on ad and
does not offer the items as per endorsed behavior in commercial, this
may affect upon the trust of the company and they may quit obtaining
and prescribing others to not to buy items from the company. A
concentrate on quality is must to expand customer base.
have said that the company has to concentrate on brand support
through powerful famous people. At the point when the company
presents most loved superstars in ad with great open picture, then
company is in position to expand the customer base of the company.
On the other side, if there are the big names with poor open picture,
this may likewise make a negative picture of the company. This is the
reason; the company ought to be watchful in selecting a celebrity.
have said that the company ought to concentrate on morals and
corporate social obligations to build the introduction; so that, the
customers may have a positive picture about the company in their
personalities. At the point when the companies concentrate on morals
and corporate social obligations in their items, this puts a finer picture
of the company. On the other hand, the negative exercises led by the
company may diminish the customer base of the company.
said that the company ought to concentrate on duty to build the brand
loyalty. At the point when the company is submitted with the
customers in term of its putting forth, this will manufacture a positive
picture of the company. Dunkin Donuts is exceedingly dedicated to its
customers, this is the reason, it has expanded significant share in the
market.
ought to have enhanced its values so as to expand the customer
loyalty. At the point when companies have solid society and better
notoriety, this is compelling for the company to come in great books of
the customers. Then again, if the customers are not for the hierarchical
exercises, this can hurt the notoriety of the company in long run. The
analysis demonstrates that there are 66% of the respondents, who said
that the company ought to support in sound exercises to build a
presentation in the market. This would be a powerful approach for the
company to draw in the customers in distinctive courses, games and
different exercises to addition a backing from customers.
H3: There is a relationship between customer social

responsibility in building customers’ trust.
There is a strong relationship between CSR in building customers; trust;

which is proven in the research. There are 67% of the respondents,
who said that a few respondents are value delicate and the company
ought to concentrate on viable value procedures, so that, the
customers from all salary gathering may have a right to gain entrance
to the items. This would likewise be useful for the company to expand
the customer base, customer loyalty and profit of the company.
said that the company concentrates on individual offering and
immediate marketing with a specific end goal to pull in and hold the
customers. The individual offering is a viable way, where the company
picks up a chance to convey straightforwardly to the customers.
Through this, the company may want the requests from the customers
and offer preferred items over some time recently. Dunkin Donuts has
likewise concentrate on individual offering and immediate marketing
and eventually the execution of the company makes strides.
There are 58% of the respondents, who said that the company ought to
concentrate on traditional media to enhance the execution of the
Page 77 of 88
company; on the other side, different respondents have said that the
company ought to concentrate on present day approaches to advertise
the items. Traditional media is a successful marketing correspondence
expertise, which must be considered by the company, so, the company
can pull in expansive number of customers.
said that the marketing correspondence assumes a critical part in
accomplishing the customers. They have said that if the company
offers quality items and compelling correspondence marketing careful
social or traditional media, it would have the capacity to accomplish
the customer base of the company. Customer loyalty is profoundly
identified with compelling execution of the company.
There are 79% respondents, who said that the company ought to
concentrate on successful media methodologies to expand the
customer base of the company. At the point when the company
concentrates on the mix of marketing methodologies, it would have the
capacity to achieve and hold customers from diverse zones and
distinctive foundations.
64% of the respondents have said that the input arrangement of the
company ought to be extremely solid, where workers and customers
ought to be permitted to give criticisms on authoritative exercises and
items. This would be useful for the company to verify that in which
zones, it is needing off and how the business might be made strides.
For input framework, the company ought to permit the customers to
give criticism on social media. The company ought to answer the
inquiries in a matter of moments, so that, the customers may not
switch around the respondents. This is a successful approach to meet
the requests of the customers in a positive way.
Company possession styles and strategies likewise put an effect on the

authoritative notoriety. There are 79% of the respondents, who said
that the company ought to acquaint compelling possession systems
with draw in the financial specialists and the customers. At the point
when there are more financial specialists, the company would have
more opportunities to build the capital and the customer loyalty of the
company. The analysis demonstrates that there are 80% of the
respondents, who said that the company ought to concentrate on
quality affirmation group to give great quality items to the customers.
The company ought to have legitimate marketing correspondence over
it, so that, the customers may be pulled in at the items.
H4: The customer loyalty is related to sponsorship and the

quality of the products
have spurred marketing correspondence group to build the
presentation of the company. At the point when the company has
roused marketing systems group, they would offer more viable
marketing answers for the company and at last, the notoriety of the
company would be made strides. The marketing group might be
inspired through different remunerates, recompense and bundles to
delivering creative type of the promotion and marketing abilities.
These all elements assume a paramount part and the company ought
to have concentrated on these variables in a point of interest way.
concentrate on marketing destinations before presenting marketing
procedures in the company. The company ought to have consistently
looked on its techniques, whether they are adjusted to the targets and
the company can attain its targets or not. These are productive for the
company to build the customer base. There are 77% of the
respondents, who said that the company ought to concentrate on
successful marketing abilities and for this reason, the company need to
enhance its esteem, so that, a substantial number of customers might
be pulled in. At the point when the company is devoted and moral in its
operations, the company can likewise enhance its customer base. This
would be useful for the company to build the brand loyalty.
Page 79 of 88
This demonstrates that all these elements are paramount for the
company to enhance the business operations. Nonetheless,
sponsorship has picked up more vitality as contrasted with different
variables. Be that as it may, all components are essential to decide.
Straightforward regression analysis has given a chance to the
respondents to watch all elements, which give a base to the company
to take the choice.
Dunkin Donuts has focused upon viable marketing system and it has
chiefly put a concentrate on social media marketing aptitudes. Other
than that, the company needs to mindful the general population about
its new offerings and items through building mindfulness and
connections the techniques with the goals. Dunkin Donuts additionally
concentrates on superstar underwriting and it has employed most
loved big names of individuals to publicize the items. Other than that,
Dunkin Donuts additionally concentrates on different regular and
periodic bundles for the customers.
The real social diagnostic devices utilized within the company are
Buddy Media and Radian6 to screen the exercises of social media
battles. The company concentrates on Facebook and twitter to
advertise the items. The company pushes the items a specific area, as
well as everywhere throughout the world. This is viewed as a solid rival
in the business, as the company concentrates on item improvement
and market advancement in a subtle element manner.
It is likewise proposed to Krispy Kreme to concentrate on the

operations of the company and drag the customers through
imaginative ways. The company ought to additionally present area
based administrations, where the customers may have a methodology
at the items offered in this situation. Through this, we can say that the
speculations created in this situation are viewed as genuine and the
company need to take a shot at these variables to enhance the
hierarchical execution.
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Butterworth-Heinemann
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Appendix: Questionnaire
This questionnaire is part of an........ dissertation and is
looking at marketing communication strategies within Krispy
Kreme. It explores different aspects of communication
strategies within Krispy Kreme and gives an opportunity for
personal comment. Thank you for your time.
Select an option from the Likert Scale:
1= Strongly Agree
2= Agree
3= Neutral
4= Disagree
5= Strongly Disagree
Questions:
5. To what extent do you agree with the following
statements?
-In Krispy Kreme, the company focuses on quality in order to increase
customer brand loyalty.
1 2 3 4 5
-The company focuses on product portfolio in order to cater the

customers of different choices and tastes.
1 2 3 4 5
-The company focuses on traditional media (TV, radio, newspaper) for

advertisement.
1 2 3 4 5
-The company focuses on social media (facebook, twitter, google ad) to

advertise its products.
1 2 3 4 5
Page 85 of 88
-The company focuses on personal selling and direct marketing to

attract and retain customers’ loyalty.
1 2 3 4 5
6. To what extent do you agree that the items below are the
desired outcomes of an ‘effective’ marketing
communication for Krispy Kreme?
-Tradiitonal media
1 2 3 4 5
-Social media
1 2 3 4 5
-Word of Mouth Marketing
1 2 3 4 5
-Quality and durability of products
1 2 3 4 5
-Brand endorsement through celebrities
1 2 3 4 5
-Ethics and Corporate Social Responsibilities (CSR)
1 2 3 4 5
-Commitment
1 2 3 4 5
-Organizational reputation
1 2 3 4 5
-Sponsorships
1 2 3 4 5
-Value for money/ Price
1 2 3 4 5
7. To what extent do you agree that effective marketing

communication plays a role in achieving customer brand
loyalty?
1 2 3 4 5
8. To what extent do you agree that the components of

effective marketing communication as below ensure the
loyalty of customers in Krispy Kreme?
- Effective media strategies
1 2 3 4 5
- Feedback system
1 2 3 4 5
- Objective Alignment
1 2 3 4 5
Page 87 of 88
- Company Ownership
1 2 3 4 5
- Quality assurance team
1 2 3 4 5
- Motivated Marketing strategies Team
1 2 3 4 5
- Company Values
1 2 3 4 5
9. Any other Information:

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Role of Marketing Communication to Increase Brand Loyalty

The Role of Marketing Communication to Increase Brand

Name: Farooq Ali Kidwai

ID. No: 13138455

The researcher has focused on ontology and epistemology approaches

The research has focused on qualitative and quantitative data to

The researcher has focused on interview approach in order to collect

2.8 Rights of Consumers / Stakeholders....................................................................................19

2.30 Hypotheses Development.................................................................................................34

Marketing communications evidently aims at developing and retaining

The environment in the current era is facing higher sensitivity to every

Advertising can have both positive and negative influences. It

Woods been known as brand ambassador for Nike, however Forbes

The objective of any marketing strategy must aim at establishing long

In promoting customer relationship organization must win the trust of

By showing corporate social responsibility the public in general would

The most common legal issues of integrated marketing communication

1.2 Krispy Kreme Doughnuts, Inc.

Krispy Kreme Doughnuts, Inc. is an American company situated in

1.3 Problem Statement

Some drivers devotion perceived risk, inertia , habit , commitment ,

E-Marketing determines new interactive platforms for two-way

“What marketing communication tools are helpful for organizations to

1.4 Aims and Objectives of the Research

The purpose of this research is to determine the impact of marketing

 To explore the impact of marketing communication on customer

 To recommend Krispy Kreme to improve the organizational brand

1.5 Research Questions

The research questions for the study are as below:

1. What is the consumer perception behind brand image of Krispy

1.6 Research Outline

The research would be based upon five major chapters. In chapter 1,

Figure 1 Research Outline

Chapter 2: Literature Review (Nike Case Study)

The purpose of this chapter is to analyze various marketing approaches

2.2 Business Profile – Nike Inc

established. The brand attained the industry leader position by mid of

Converse Inc. is a legendary brand operating in 160 states with repo of

Hurley International, LLC

Hurley International deals in designing and distribution of action sports

With the thorough influence, dynamic legacy and vision of Michael

As evident by the name, the offerings include range of accessories,

2.3 Marketing Communication Process

Marketing communication is about information exchange messages

communication is somewhat synonymous to marketing but focuses

2.4 Marketing Communication Structure

According to Tyagi and Kumar (2004) the typical communication

Figure 2 Marketing Communication Process

Sender in marketing communication process is the marketing manager

feedback from consumers to marketers. Promotional messages from

Figure 3 Frame of Reference

2.5 Role of Marketing Communication

As discussed above the marketing communication is about informing,

Fill and Hughes (2008) defined DRIP role of marketing communication

Differentiate – differentiating Nike from competitors like Adidas

Remind – reminding the target audience what Nike has to offer

2.6 Coordinating Tools of Communication Mix

According to Dahlen, Lange and Smith (2010) defined the traditional

2.6.2 Personal Selling

2.6.3 Public Relations

A sustainable effort often backed by planning such that goodwill of the

Maintaining public relations is seen as a requirement by Nike to retain

2.6.4 Direct Marketing