Brand Loyalty is regarded as a very important concept in business because business organizations can use it to gain competitive advantage. Competitive advantage has been approached by looking at the external environment of the firm that is how the economic power of firms can be used to create competitive position in an industry. This study focuses on Resource Based View a model that provides a framework for identifying unique set of resources and this perspective shifts the approach of assessing competitive advantage from the external to the internal environment that is the resource power. This study, therefore, set out to determine the effect of brand loyalty on competitive advantage in beer products in Kabale district. The specific objective of the study was to (i) To determine the effect of brand loyalty on competitive advantage in alcoholic beer products in Kabale district. The study used a descriptive survey research design. The target population was 1783 including wholesalers, retailers, customers and brand and marketing managers of Nile Special Lager, Eagle Lager, Senator Extra Lager, club and Bell beer products in the District of Kabale, South Western Uganda. Multistage sampling techniques were used in this study. Simple random sampling technique was used to select alcoholic beer products and producers. Purposive sampling technique was adopted to sample shopping center to collect consumer information. Shopping centers were selected based on a marketing investigation. Primary data were used and collected using questionnaires. The descriptive analysis involving computing the mean, standard deviation, skewness, and kurtosis of the brand Loyalty and competitive advantage variables was conducted. The inferential analysis was conducted using multiple regression analysis and the t-statistic and the p-value were adopted to test the hypotheses of the study. The study used the Statistical Package for Social Sciences (SPSS) as a tool to process and analyse data. The findings indicate that brand loyalty has significant positive effect on competitive advantage among alcoholic beer products and producers in Kabale district, South Western Uganda at the 5% percent significance level.The results of the regression model on the effect of brand loyalty on competitive advantage among alcoholic beer products and producers in Kabale district, South Western Uganda indicate that brand loyalty has significant positive effect on competitive. The study concludes that brand loyalty significantly affects the level of competitive advantage in beer brands in Kabale district. The study recommends that beer producers and marketers should put in more commitment in the area of brand loyalty in order that consumers are loyal to its beer products and thus increase their competitive advantage.
