1. Business

Discuss the relationship between brand value and organizational profitability

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Branding is something that defines the brand value and the image of products as well services. Brand image attracts the most customers as the brand name and logo refers to which product, quality and services a specific brand is providing. The customers do not seek other brands if they get attached to a brand that provides quality products and intend to pay more for that particular brand. Therefore, high brand equity encourages the market to bear with prices at a high level. Sale volumes are directly connected with brand value as the customers get connected with brand quality and reputation for the long term.

Customers, who do not want to compromise with quality, are always willing to pay high if the brand raises its prices for the same quality product. In both national and international markets, creativity skills are given with more priority to compete with other brands. According to Fernández and Pinuer (2016), most of the familiar brands do campaigns to grab a large portion of firms that includes other strong brand image. It focuses on financial performances and increases the profit level by cutting down the cost. Thus, a brand can work more for maintaining the reputation and the income as well. Positive brand equity is a sign of a huge number of customer attachments with the company. Brand profitability is a positive result of branding. Branding portfolios can be easily managed by the economic contribution to the brand reputation.

A huge monetary investment in branding at the initial stage, results in increasing future cash flow and profit margins. Positive brand value can easily take the advantages of this competitive market. As per Crass et al. (2019), a good brand image attains repeated purchase by the customers and provides a strategic way to charge high with a high profit level. Existing customers are always eager for the new launches from the trustworthy company as they can trust the brand like anything. Therefore, most of the profit margin can be achieved from the existing customers rather than the new. 

In the many past researchers, there has been less focus on challenges of an organisation in integration of increased brand value. Many past researches have not discussed the identification of different aspects of the modern market. Moreover, very few studies emphasised the involvement of brands in enhancing the reputation of a company. However, this preset study has sought to bridge the gap of past studies.

A sustainable competitive strategy is an ideal way for promotion of enhanced business. Determination of successful corporate strategy is highly required for delivery of success very easily. Marketing is regarded as an important complement of branding. With the utilisation of brand, the reputation of a company can be improved significantly. Moreover, positioning of a brand is another perspective of branding. Positioning is referred to as an act that is helpful for improving the image of a product or service. Determination of a long-term success in branding is possible through combating the challenges.

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