The paper "Brand Equity - Coca-Cola Brand" is an outstanding example of a marketing article. In modern times, having a strong brand is one of the core missions of national and multinational companies. Multinational corporations are competing globally to position and present their products to segmented markets through branding. The company's brand helps the customers to differentiate massive goods and services offered in the market by competing companies within an industry. Today, companies with strong brands are most successful than companies with weak brands. The primary purpose of this paper is to articulate the importance of having a strong brand within a company.
For more understanding, the paper uses the Coca-Cola brand as a case study. Additionally, the paper pools together various theoretical frameworks from secondary resources from different business scholars and economists. This article looks at the various theoretical frameworks explaining the importance of having a strong brand in the firm when positioning the products in various market segments. Introduction According to Rijal and Dhakal (2015) brand name is a unique presentation of the company's products using symbols such as logo, slogan, trademark, and packages.
The brand differentiates the company's products from the rivals' products; companies competing within an industry. Unlike in the past, in modern times branding has become a priority at the market place to many companies. In a study, Marks (2016) found that more than 90 percent of global consumers affiliate themselves to companies with strong brands and a high reputation in global markets. In his research, Broyles et al. (2009) demonstrate that customers' perception towards company’ s brand plays a vital role for it helps customers to participate and differentiate products and services in the market.
Hall et al. (2016) also found that brands have psychological effects to consumers such that consumers become dominants to specific brands in the market. Therefore, companies are becoming more responsive towards branding than before to cope with consumers’ changing behaviors. From this perspective, a brand is inseparable from clients’ and it is an important value asset that sustains a company’ s competitive advantage. According to East et al. (2013), a strong brand has high brand equity in the market and the company with brand equity and reputation has high chances of serving to dominate the market.
Additionally, multinational corporations with vigorous and successful brands use their dominating brands to launch new products, for the consumer's attitude towards the brand remains confident. For instance, coca-cola has been launching a series of products annually due to its brand reputation. Amulya (2016) suggests that a company with strong brand equity has a high value in assets and customers' perception is also great. For instance, companies with high-quality products have the capacity to build their brands due to customers' perceptions and reactions towards the products.
Therefore, the company's brand signals consumers concerning the name as well as the company itself. Most of the companies adapt their businesses' names as their brand, and hence, stimulating customers to purchase the branded products. Herbst and Merz (2011) state that building the brand in modern times, it is difficult and it is a long process. However, building a strong brand is of great importance for the company will be able to develop goods that merge with customers' feelings and physiological needs. Moreover, unlike in the past three decades, modern consumers focus much on the quality of the products and goods’ level of satisfaction rather than the prices.
This paper presents and develops different theoretical frameworks that bring an understanding of the importance of having a strong brand. The paper also examines the Coca-Cola brand architecture and its importance in international markets. The article also addresses the conceptual framework that identifies the key elements of a strong brand basing on the case study. The paper concludes with the writers’ recommendation concerning the roles and importance of a company having a strong brand.
Alshuaibia, A.S.I. and Shamsudinb, F.M., 2016. The Role of Human Resource Management Practices in Enhancing Internal Branding. New York: Reutledge.
Amulya, M., 2016. Brand Management-Alternatives: an Explorative Study of Brand Associations of Indian Automobile Industry. International Journal of Scientific Research, 5(1).
Biedenbach, G. and Marell, A., 2010. The impact of customer experience on brand equity in a business-to-business services setting. Journal of Brand Management, 17(6), pp.446-458.
Broyles, S.A., Schumann, D.W. and Leingpibul, T., 2009. Examining brand equity antecedent/consequence relationships. Journal of Marketing Theory and Practice, 17(2), pp.145-162.
East, R., Wright, M. and Vanhuele, M., 2013. Consumer behaviour: applications in marketing. New York: Sage.
Eggers, F., O’Dwyer, M., Kraus, S., Vallaster, C. and Güldenberg, S., 2013. The impact of brand authenticity on brand trust and SME growth: A CEO perspective. Journal of World Business, 48(3), pp.340-348.
Hall, E., Hall, E., Binney, W., Binney, W., Vieceli, J. and Vieceli, J., 2016. Increasing loyalty in the arts by bundling consumer benefits. Arts and the Market, 6(2), pp.141-165.
Herbst, U. and Merz, M.A., 2011. The industrial brand personality scale: Building strong business brands. Industrial Marketing Management, 40(7), pp.1072-1081.
Keller, K., 2013. Strategic Brand Management: Building, Measuring, and Managing Brand Equity, third Edition. New Jersey: Prentice Hall.
Marks, C.R., 2016. The impact of editorials versus advertorials on brand equity (Master's thesis, University of Twente).
Nyadzayo, M.W., Matanda, M.J. and Ewing, M.T., 2011. Brand relationships and brand equity in franchising. Industrial Marketing Management, 40(7), pp.1103-1115
Rijal, R. and Dhakal, R., 2015. Internal branding. New Jersey: Springer.
Santoso, C.R. and Cahyadi, T.E., 2014. Analyzing the Impact of Brand Equity towards Purchase Intention in Automotive Industry: A Case Study of Coca-Cola. iBuss Management, 2(2).
Schmitt, B., 2010. Experience Marketing: Concepts, Frameworks and Consumer Insights. Foundations and Trends in Marketing, 55-112.
Soon, W., 2011. A review of multi-product pricing models. Applied mathematics and computation, 217(21), pp.8149-8165.