The paper “ Nexus Drinks - Customer Loyalty and Relationship Marketing" is a great variant of a case study on marketing. Nexus Drinks is a fictitious company organization that manufactures energy drinks amongst soft drinks and fruit drinks. Nexus Drinks hypothetically has been among the leading companies in the energy drink market. The history of the company runs back in 2000 when its first products were introduced to the market. The company is owned by a private developer and the brand name has been gradually acknowledged for its high market share of energy drinks all over Australia.
In addition, the company is expanding to new markets not only in Australia but also overseas. Though the company is not well advertised on social media, it is well known for its sports and athletics sponsorship. The company has 500 employees and in comparison with other companies, the company has the highest number of employees who are well paid. The workers have flexible working schedules in terms of hours and shifts. Moreover, the employees are allowed to take any drink that they want as long as they are on the premises.
The company’ s departments include; statistics in the sales and marketing department, research and development department, administrative department and executive leadership department among other departments. In terms of finances, the company receives its funding from the private developer though it is very rare since the company makes large proceeds from its energy drinks. As indicated by the financial report of the company, there has been a tremendous increase in cash and short term investments, especially for the last 3 years. The raw materials and the finished goods closing stocks have also increased which as well resembles the increase in production.
Both internal and the external environment of the company shows a well-organized communication and the culture of the company though it lacks the internal website as compared to other competitive companies. Nexus Drinks like other companies does not operate in isolation, it is therefore affected by the external environment like economic factors, demographic environment, legal and political environment, technological factors and the highest competition. Finally, the relationship between the customers and the company is relatively good and though not much has been done to improve the customers’ loyalty to the products, some of the users of the product have an undying craving for the products which depict loyalty for the product. 1.2 AimsThe aims of this report are to examine the impacts of relationship marketing on customer loyalty and from the findings make a conclusion from which recommendations are highlighted showing the areas that require to be changed and if necessary, an over the whole is done. 1.3 ScopeThe report only examines the impacts of relationship marketing on customer loyalty, the importance associated with it and the marketing strategy the company uses to ensure that customers become loyal to the products.
It is worth noting that the report does not discuss any other aspects of business relationships with the customers. In addition, the report includes the findings, conclusion and recommendations parts. 2.0 Literature-based evidence2.1 Customer Loyalty and Relationship MarketingThe relationship marketing concept emerged within the field of service marketing and industrial marketing. It is a strategy that many companies use to attract, enhance and maintain customer relationships.
According to (Gummesson 1991, pp. 15) relationship marketing is a strategy in which management of interactions, networks, and interactions are of very important use in business management. The aims of relationship marketing include; maintaining, establishing and enhancing relationships with customers and any other partners so as to gain profit and to achieve the set objectives of the organization. (Rapp & Collins 1990, pp. 7) view it similarly as the goals to create and maintain a lasting relationship between the organization and its customers. In both definitions, the relationship is characterized by reward on both sides i. e.
customers to be provided with their favorite brands and the company to gain revenues. Therefore, the relationship is a symbiosis relationship in which the two parties benefit. The main objective of relationship marketing is to make customers loyal to the products. The customer’ s loyalty to a product refers to the commitment of the customers to re-buy the products they prefer from the same company regardless of other marketing efforts which can influence them to switch from buying the product from the same company (Wong & Sohal 2002, pp. 35).
Relationship marketing is characterized by the fact that every customer is treated and considered individually, the activities of the company are entirely directed towards existing customers, the application is founded on interaction and dialogue between the customers and the marketers, and the goal is to maximize profitability through reducing customers’ turnover and strengthening customers relationships.