The relevance of branding on business performance of manufacturing firms in Kogi
This project is on The relevance of branding on business performance of manufacturing firms in Kogi.
1.1 Background to the Study
In today’s business environment, computation has become the order of the day; one of the key ways to remain competitive in any industry is to build brands that stand the taste of time. Markers must recommend for superior brands that serve as competitive strengths to the organization. Brand building, a strong one indeed can help firms to acquire alternatives that enhance growth, command high market share, serve as competitive barriers to entry for competitors, eliminate the rate at which customers’ switches over, and create customer loyalty. Strong quality brands serves as measure for evaluation of product’s quality, helps to maintain high levels of product awareness, and its used identify products with positive image or personally (Petburikul, 2009).
Azamough, & Arash, (2016) posit that changes in peoples life-styles and the development of new products and services from different companies, have come up with different brands in order to better position its product and company’s image in the industry. AMA defined brand as “a new, term, sign, symbol, or design, or a combination of them, which is meant to identify one seller or group of sellers and to differentiate them from those of competitors”. De Chernatony & McDonald (1994), defined brand as “an identifiable product, service, person or place augmented in such a way that the buyer or user perceives relevant unique added value which match their needs more closely. They further argued that brand can be defined from the context of personality or psychological values (De Chernatony & Biley, 1998). However, the AMA’s definition appears to be the most acceptable to scholars such as (Aaker 1996; Dibb et al., 1994; Kotler et al., 1996).
Brand are relevant intangible assets and resources which impact positively on firms overall performance (Morgan & Kego, 2009; Rao, Agarwal, & Dahlhoff, 2004). However, positive brands assist in building customer relationship with the brand (Fournier, 1998; Schau, Muniz, & Arnould, 2009; Thomson, Maclnnis, & Park, 2005), it helps to increase the purchase of the brand (Park et al., 2010), which reduces customers price sensitivity (Ailawachi, Lehmann, & Neslin, 2003), lowers cost of marketing (Mizik & Jacobson, 2008). Though it appears that many brands make it difficult for customers to distinguish their brands.
It is no longer new so to say that positive strong brands helps organization to dominate the market, acquire competitive strength, in fact, as a major competitive tool which help companies to outweigh its competitors. Organization that are growth oriented, leverage on the benefits of strong brands that takes care of competition in their respective industry of operation.
Business performance or performance of sales in an organization entails the rate at which companies aim and objectives are met. It is important that once an organization sets its target to be met, the company implements adequate strategies that will help them to achieve their objectives. And such measure is to build solid brands which commands customers’ action or responses. Efforts of marketers’ right from the conception of the product idea, to its final stage, should be quality focused so as to encourage customers accepting the brand. Therefore, the relevance of quality brands cannot be over emphasized, it helps to strengthen a firm’s position in the industry of operation.
According to Adegbuyi, et al., (2015), business performance is used to indicate or determine the rate of customer loyalty. Where customer loyalty is used to measure those customers who purchase a company products on a regular basis, and refer other customers to the company (Ibidunni, 2004). An enhancement of a firm’s brand helps to enhance their performance level and increase the number of loyal customers. An enhanced performance of sales, has its own way of impacting on the overall firm performance, such as increases in customer base, sales, market share, competition and sales revenue (Worlu et al., 2011; Ajagbe et al., 2014; Adegbuyi et al., 2015).
Production companies are such that engaged with the production of one product or the other. The cut across different industries of the world, various works have been done in this regard, but study shall be focusing on selected consumable manufacturing firms in Kogi State. They involve Dufil Foods, Pabod Breweries, NBC, Power Pasta and Flower Mill. Bringing this study to Kogi State serves our point of departure.
1.2 Statement of the problem
Has it occurred to you why some brands don’t stand the taste of time? Have you also wondered why some excel more than others? If you take a walk to any nearby drinking or eating joint, you will notice that some brands of products are more demanded for. The former is as a result of many factors which include poor branding, while the later is as a result of well articulated branding by organizations.
Strong branding help to increase awareness about the product, it helps to build customer relationships with the brands, lower marketing costs, and helps to increase purchases (Fournier, 1998; Schan & Arnould, 2009; Ailawad, et al., 2003; & Mizik & Jacobson, 2008. It is on this premise that, it becomes imperative for manufacturing firms in Kogi State to identify those branding criteria’s that will enhance its brand position in the industry and attract premium prices.
Therefore, the problem of this study is to evaluate the relevance of branding on business performance of manufacturing firms in Kogi State.
1.3 Research Questions
Based on the study problem, the following research questions were put forward to include as follows:
1) To evaluate the impact of brand association influence business performance of manufacturing firms in Kogi State.
2) To examine the influence of perceived brand image impact on the business performance of manufacturing firm in Kogi State.
1.4 Aim and Objectives of the Study
The major aim of this study is to explore the nexus between the relevance of branding and it corresponding influence on business performance of manufacturing firms in Kogi State. However, its specific objective includes:
• To what extent does brand association impact on business performance of manufacturing firms in Kogi State.
• To what extent does perceived brand image influence business performance of manufacturing firms in Kogi State?
1.5 Study Variables/Conceptual Framework
The study relevance of branding (the predictor variable), with its dimensions as brand association, and business performance (i.e. the criterion variable), that is measured with competitiveness and market share. These variables are functionally presented as:
SP = f (RB) – – – – – – (i)
RB = f (BA, PBI) – – – – – (ii)
SP = f (C, MS) – – – – – – (iii)
RB = Relevance of Branding
BA = Brand Association
PBI = Perceived Brand Image
SP = Business performance
C = Competitiveness
MS = Market Share
- Store Name: seventhirty
- Vendor: seventhirty
- No ratings found yet!