Brand Management: Impact, Sustainability, and Company Examples

This essay delves into the conceptual definition and importance of brand management in the modern business context, emphasizing its role in enhancing sustainability and addressing the causes driving its rise. It examines the consequences of branding on financial stability, sales volume, market share, and future growth, supported by a survey indicating consumer loyalty to transparent brands. The analysis includes examples from Apple, Zara, and Nestle, highlighting how effective branding contributes to increased revenue, market share, and customer loyalty. The essay concludes that successful branding depends on creating a following and establishing trust, rather than solely focusing on direct sales, underlining the critical role of creativity and diversification in achieving business success.

Running head: BRAND MANAGEMENT
Brand Management
Name of the Student
Name of the University
Author Note

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Introduction:
The paper is focused in the discussion of the importance of the branding in the
modern business context. The paper analyses the concept of branding and along with that,
elaborates the rise of branding. In addition to this, the paper identifies the process in which
the branding helps in the improvement of the sustainability of the modern business
organizations. Along with that, the paper also recognises the factors that creates the necessity
of the branding. Apart from this, the paper includes a brief analysis regarding the
consequences of branding including various important aspects such as the financial stability,
revenue, sales volume, market share, market growth and influences in marketing. In addition
to this, the paper provides an analysis of the branding in three different companies that are
Apple, Zara and Nestle.
Conceptual definition of branding:
Truong et al. (2017), commented that the conceptual definition of the branding states
that it is a process that is designed for creating an exceptional name and image for a particular
product in customer’s mind. In addition to this, Ottman (2017) claimed that the process of
creation includes the advertising campaigns with a consistent theme. The objective of the
branding is the establishment of an influential and differentiated presence in the business
industry which has the potential to attract the customers in a more efficient manner. Along
with attracting the customers, the retention of the customers is also considered to be a major
contribution of the branding.
Importance of Branding:
In the previous century, the concept of branding was not considered to be of the same
value as of the current century. Balmer (2017), highlighted the fact that the rise of the
branding is considered to have the basis on the increasing competition of the market and the

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relevant business industries. With a precise focus on the increment in the intensity of the
competition that is present across the various business industries, the modern business are
facing the need of introducing the products to the customers in a proactive manner. As the
exchange of the information regarding the products and the services of the organizations to
the customers have the potential to improve the business operations of the organizations in
terms of the revenue, the increased urgency amongst the modern business organizations in
conducting appropriate activities for enabling the customers to be aware of the products and
services of the organizations play a crucial role in the rise of branding. With a precise focus
on the continuously evolving business world, Balmer et al. (2016), commented that the
emergence of the new business strategies powered by the innovative ideas and efficient
business models will face the need of highly developed marketing and promotional activities
for doing justice to the potential of the strategies. Apart from this, the base of the success for
the implementation of the new business models along with the engagement strategies are
considered to be the dependent on the effective branding. Tran et al. (2015) argued that the
difference between the success and the failure in reaching or converting a new audience to
loyal customers is the success in implementing the creative and the innovative marketing and
promotional strategies.
Impact of brand on the sustainability of the companies:
The conceptual definition of the sustainability defines it to be the company’s
relationships with the corporate governance, society along with the environment. Elkington
(2013), highlighted that the definition in the general business concept, is considered as the
tipple bottom line where the focus in on the degree of the company’s initiatives meeting the
environmental, societal and financial impacts. The impact of the company’s investment on
the society, environment and in making sure that the business operations of the organizations
are sustainable for the customers of the organizations, is of great significance (Kumar and

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Christodoulopoulou 2014). The activities that contribute to the sustainability such as the
manufacturing of the products in an unethical manner are seen to be significant in influencing
the consumer behaviours and providing the chance to customers live a sustainable life. The
formation of the brand becomes essential for the organizations in recommending the suitable
options for the customers and along with that, it helps the customers to be aware of the
modern trends. Hence it is visible that the formation of the modern brands is significantly
influential for the organizations and with a better positioning of the brands, the organizations
have the potential to create value for the customers.
Causes of branding:
As mentioned earlier, one of the significant reason that triggers the increment in the
branding is considered to be the urge of the organizations in providing the required limelight
to the products and the services that they offer to the customers. In the modern business
world, the level of competition is notably high due to the entry of the significant number of
new organizations in majority of the industries. Hence, it is pretty evident that the increment
in the competition of the business industry will affect the business operations of the modern
business organizations. With a precise focus on the increasing intensity of the competition,
the organizations are seen to concentrate on the creation of the brands which have the
potential to attract the customers in an efficient manner. A survey amongst the customers of
the leading global business organizations revealed the fact that 94% of the consumers tend to
be loyal to a particular brand which is transparent to them (Zimmercommunications.com
2019). The effective formation of the brand with the reflection of the qualities such as the
ethical sourcing of the raw materials, appropriate pricing of the products or the business
conduction with a legal approach has the potential of improving the business operations of
the organizations.

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Eccles, Ioannou and Serafeim (2014), claimed that one of the major component of the
established brands is the flexibility of the organizations in terms of achieving the varying
preferences of the customers. With a precise focus on the increasing competition, the
formation of the brand with the reputation of providing products that are designed in
accordance to the requirements or the specifications of the customers, is seen to provide a
significant boost to the business operations of the organizations.
Consequences of Branding:
Financial Stability:
The branding of the products is seen to be crucial for the organizations in terms of
attracting the customers in an efficient manner. Akgün, Koçoğlu and İmamoğlu (2013),
argued that the formation of the brand helps the organizations to target a larger number of
customers and that plays a crucial role in providing the products of the organizations, in
achieving an increased market limelight. This helps the organizations to increase the profit as
the larger market for the products increases the scope of generation of the profit for the
organizations. The reflection of the branding on the customer behaviour plays a crucial role
for the organizations in the influencing the customers for the repetitive purchases and that has
significant potential in increasing the revenue of the organizations.
Sales Volume:
As the efficient branding from the part of the organizations have the potential to
attract larger number of customers, the demand of the products or the services that the
organizations offer to the customers are expected to increase in a significant manner. This
will force the manufacturing department of the organizations to increase the productivity to
meet the market demands in an efficient manner. Hence the branding will be responsible for
increasing the production and the sales volume of the modern organizations.

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Market Share:
With the increase in the marketing and promotional activities for the effective creation
of the brand, the organizations are observed to focus on attracting the customers with the
effective information regarding the products and the services. According to John and Park
(2016), this plays a crucial role in increasing the sales of the organizations as the customers
are well aware of the products that the organizations offer to the customers. This becomes
significant for the organizations in dominating the market and enables the organizations to
achieve a larger share of the market.
Market Growth:
With the formation of a lucrative brand, the modern organizations are seen to have
scope of penetrating the markets in a significant manner. According to a survey of Zimmer
Radio and Marketing Group, the modern organizations are observed to increase the revenue
by 23% with the effective and consistent representation of the brands
(Zimmercommunications.com 2019). The repetition and the consistency are considered to be
the two cornerstones for the successful branding that has the potential to result in the market
growth. According to the same market survey, 65% of the people agreed on the fact that they
feel emotional connection to a particular brand that stands for their rights and that notably
affects their decision making in terms of preferring a particular organization in purchasing the
products (Zimmercommunications.com 2019).
Future Growth:

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Another survey of the Zimmer Radio and Marketing Group claimed that 77% of the
marketers felt that the branding is significantly essential for the organizations to achieve the
future growth (Zimmercommunications.com 2019). The comments of the mentioned section
of the marketers are pretty simple as they feel that the more the customers know a particular
company, know the offerings of a particular company and know the values that the company
stands for, are more that demand of the company will be. In addition to this, the same survey
revealed another different fact about a different aspect of the branding where it claimed that
70% of the brand managers in the modern business world prefer to create an audience rather
than converting sales (Zimmercommunications.com 2019). According to them, the success of
the branding is more dependent on the creation of a following or establishing the trust rather
than the direct sales or the revenue of organizations.
Examples:
In the modern business world, there are considerable number of organizations that
have gained the benefits of the branding in different industries as well. For example Apple
from the electronics industry, Nestle from the food industry or Zara from the fashion retail
industry have developed their business in a significant manner over the years and the major
reason behind their success is the excellence of branding.
The media and digital team lead of Nestle, Ivan Blace, during an interview,
commented that the creativity and the success are the two key factors that enabled the
mentioned organization become successful (Nestle.com 2019). The impact of the brand is
pretty significant on the business conduction of the mentioned organization and the proof of
the fact is the increasing profit and the market share of the mentioned organization. In spite of
having a reduced a workforce, the mentioned organization increased their revenue to CHF
91.439 billion along with an operating income of CHF 13.752 billion and according to Ivan

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Blace, the key factor responsible for their significant success is the diversification of their
portfolio which contains 2000 different brands which are significantly famous across the
globe (Nestle.com 2019).
Zara is one of the most renowned names in the modern fashion retail industry and is
one of the organization that has developed their business in a significant manner owing to
their success in the branding. One of the crucial factor in the success of the organization is
seen to be the brilliance of the company in the fashion branding (Zara.com 2019). The
customers in the mentioned industry have the knowledge of the fact that if any of the
company that can deliver products that are aligned with the preferences of them and with the
modern trends then it has to be Zara. The reflection of the brand is pretty significant for the
organization in incorporating the excellence of them to the customer’s purchasing behaviours
in the reduction of the duration of the design cycle which helps the organization to achieve
the customer preferences in a better manner.
On the other hand, branding is something that Apple has established in such a manner
that can be challenged by only few of the organizations belonging to the modern world. From
the era of Steve Jobs, the diversified brands of the company have developed the organization
in a notable manner and that is pretty evident with the creation of a community and customer
base that is even ready to purchase the products of the mentioned organization at a price that
is considerably high compared to the competitor pricing. Apart from this, the application of
the premium pricing policy and a form of leadership that almost ignored the important aspect
of modern business in the form of CSR and even then went on to increase the profit to
265.595 million US dollars in the year 2018 is significant in stating the brilliance of the
branding of the mentioned organization (Apple.com 2019).
Conclusion:

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On a concluding note, it is visible that the branding is a significantly important aspect
of the modern business. Majority of the market leaders of different industries have developed
their branding in a notable manner for gaining the much required growth and the market
share. Adding to this, branding has evolved as a crucial remedy for the increasing market
competition across different industries.

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Akgün, A.E., Koçoğlu, İ. and İmamoğlu, S.Z., 2013. An emerging consumer experience:
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Apple.com 2019. Home. [Online] Available at: https://www.apple.com/
Balmer, J.M., 2017. Corporate brand orientation: What is it? What of it?. In Advances in
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Eccles, R.G., Ioannou, I. and Serafeim, G., 2014. The impact of corporate sustainability on
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Elkington, J., 2013. Enter the triple bottom line. In The triple bottom line (pp. 23-38).
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https://zimmercommunications.com/