Importance of branding for organization and customers

Importance of branding for organization and customers

Introduction

Branding of a product or service has benefits to the organization as it improves its sales revenue in the process increase profit in the long-term. On the other hand, branding allows consumers to differentiate products. The study aims to explore the importance of branding for both the organization and consumers using Costa Coffee as the case study.

Importance of branding for organization and customers

Branding affects various aspects of the organization, such as sales, image, and accessibility.

According to Adegbuyi (2018, P. 23835), branding is essential in determining the sales performance of a product in n organization. Branding is a process that allows the organization to align its operations and processes to align with the brand identity and values. Branding helps the customer to create a relationship with the products (Keller, 2020, p. 998). When an organization brands its products, it creates the mindset in the customer that no other product is existing in the market which, results in actual sales by customers. Branding is one way for an organization to differentiate its products to whatever is existing in the market. Park (2016, P. 153) further affirms that differentiation creted through branding influences customers’ behaviors when it comes to selecting and purchasing a product.

How Marcom tools enhance brand equity

Marcom is a short form for marketing communication. According to Damarjati et al., (2016, p.30), Marcom tools are used by companies to connect their brands with people, places experience and emotions that could influence customers to purchase a product. Marcom tools include brand management, sales promotion, and sponsorship; traditional advertising; media and direct mail marketing, digital marketing, and public relations. According to McAlister (2016, p. 208), advertising is best suited for organizations that have a geographically scattered audience as it has the potential to stimulate sales in different locations, creating brand equity. Sales promotion and public relations are personalized branding tools as the organization can interact with the target market at a personal level. Buil (2013, p. 117), affirms that sales promotions are effective in creating brand equity as different customers are able to

use and witness the benefits of the product. Event marketing allows the organization to build brand equity by creating a sense of immersion and participation among potential and existing customers (Zarantonello,2013, p. 256). Traditional marketing strategies such as mobile and email marketing can be used but only in enhancing branding management among existing consumers.

Justification

Costa is among the

best performing coffee businesses in the UK. According to a study conducted by Mintel Group Ltd (2019), Costa has managed to outdo other existing brands due to its branding strategies. Costa’s strength, when compared against its competitors, is that the business also enjoys a substantial market shares as evidence by the increase in the number of outlets every year. From the table below, it is evident that from 2017 to 2019, Costs has registered the highest growth in outlets.

Table 1: Top 5 coffee shops and their market share in the UK, by outlet numbers(Mintel, 2019)

The Mintel (2019) report point out that the growth experienced by Costa coffee is attributable to various factors not present in other coffee business. While coffee businesses’ such as Macdonald pride in offering excellent value for the product, Costa coffee counteracts the threat by ensuring consistency in providing quality products for its customers. Further, the company has been rated as prioritizing the customer’s health and wellbeing. Mintel (2019), also illustrates innovativeness and trustworthiness as crucial branding attributes that make Costa the best choice for the study.