Managing Brand Equity - Essay Example

Marketing Topic (Branding) Executive Summary The primary purpose of this particular research study is to determine the importance of branding as a marketing tool in the present day business environment. The study has also intended to comprehend a broader understanding about the application of marketing tool, such as branding in the cargo business of Qatar Airways. Branding is one of the most effective tools for business units, which they implement to gain a sustainable position in the competitive global market. It enhances the reputation of a particular business, which further affects the positioning of the overall business. The findings suggest that Qatar Airways cargo services are dealing with certain issues, which are mostly owing to its lack of brand equity in the cargo sector. As recommended, the company has the need to strategize it branding policies, especially in the domain of cargo business with the deliverance of proper and innovative services to the customers, so that it can move ahead in competition with the rivals. Hence, it can be stated that branding indeed is quite vital for the growth and sustainability of the business in the present day context. Table of Contents Executive Summary 2 1.0. Introduction 4 2.0. Literature Review 4 2.1. Branding and Its Importance 4 2.2. Factors Contribute in Attaining Better Brand Image 4 2.3. Benefits of Branding for the Present Day Business 5 3.0. Recommendations to Qatar Airways Cargo Services Based on Literature Review 6 3.1. Branding in Qatar Airways 6 3.2. Barriers and Challenges for Qatar Airways 7 4.0. Conclusion 7 5.0. References 8 1.0. Introduction Strategies often refer to the actions that the organisations of this present day context adopt with the aim of enhancing their respective competitive positioning and sustaining in this competitive landscape for longer time. The approaches of conducting business by modern organisations within the global business arena have changed rapidly in the contemporary scenario, which may be owing to the increasing competitiveness of the market. Furthermore, due to the continuous fluctuating demand of the market, companies are dealing with severe challenges in the course of conducting their respective business operations (Smith & Round, 1998). Thus, in this regard, companies need to frame effective decisions in the domain of operations, marketing, human resource and finance among others to ensure a sustainable future for their businesses. However, proper marketing strategies are deemed to be a vital component for enhancing the competitiveness of the businesses in the global business sector (Pearson, n.d.). In the contemporary business scenario, business operations need to undergo immense transformation in order to meet the ever-changing demands of the stakeholders (Fernando, 2010). The importance of diverse marketing roles in business generally appears in this scenario. It will be significant to state that marketing is one of the valuable functions, which directly works towards enhancing the brand image and positioning of business in front of the potential customers. Thus, in order to get a better comprehension in this context, the importance of one of the marketing concepts i.e. branding will be discussed with the help of the data compiled from reliable secondary sources. Most importantly, the essay will also intend to present the application of branding for the business operations of Qatar Airways cargo services. 2.0. Literature Review 2.1. Branding and Its Importance Branding is one of the basic marketing concepts in the present day business context. According to the study of Oswald (2012), branding is directly relevant with the approach of enhancing brand image and awareness of people or the potential customers about the respective products and/or services of a particular business. In this similar regard, the study of Chernatony & McDonald (2011) revealed that branding is amid the decisive elements of business organisations, which ensures to raise business reputation in diverse business markets at large. It will not be vague to state that the success or failure of any business is largely dependent on how business units are able to augment brand equity and positioning within the industry sector that they are operating in. According to the study of Anastasia (2005), it can be stated that the concept of branding is principally viewed to be one of the strategies of companies towards gaining competitive advantage over their chief business market competitors. Moreover, it also acts as an effective tool of marketing for attracting the customers towards the products and/or services of a particular business. It has been noted that marketing heads in the present day business units are involved in deterring effective tools as well as strategies that can improve the overall brand image of the businesses. This can be measured in the form of delivering quality products and/or services to the customers, enhancing the level of interaction with the customers, emerging with innovative services and products in context to the present trends and enhancing CSR operations among others (Anastasia, 2005). 2.2. Factors Contribute in Attaining Better Brand Image Companies that are able to ensure a better brand image in front of the potential customers can ensure business sustainability in future context. With proper communication and innovative product ideas, companies are able to enhance the experiences of the buyers, resulting in enhancing the brand equity and image of the overall business by a certain level. Furthermore, with the application of innovative ideas in the domain of product and service designing, companies intend to attract customers of different cultures so that the respective products and/or services could be accepted on a wider global dimension. It has also been comprehended that companies conduct widespread market research to understand the buying trend prevailing amid the customers, their buying pattern, their demands along with preferences and regional demands of products, so that a better sense of the market could be gathered. This aspect further ensures that a particular business is able to build effective communication with the customers by designing appropriate branding policies. Specially mentioning, the aforesaid approach not only enhances or strengthens the relationship prevailing between the companies and the customers, but at the same time, also improves the brand image of the businesses at a wider dimension. With the use of proper branding strategies, companies are also able to develop themselves as market leaders and move ahead in terms of competition with the rivals (Aaker & Biel, 2013). Effective brand management or branding can also enhance the equity of the overall brand. As per the study of Lee (2000), brand equity is deemed to be one of the imperative concepts of marketing, where it is known that well-known brands will have the ability to perform and sustain better in the market as compared to the rest of the products. In this regard, it has been noted that with the use of proper marketing tools and techniques, companies work in alignment with the buying behaviours of the potential customers. This is mainly through decoding the factors that influence customers’ buying behaviour (Lee, 2000). Companies operate in such a manner wherein they could be able to meet the expectations of the customers through delivering their desired products and/or services within a specified time period. This aspect also works towards strengthening the brand equity and the overall brand image of businesses in a collective manner. Moreover, the approach further steers the sales of businesses towards a positive direction and subsequently lead towards increased level of business profitability. Hence, it is quite apparent that brand image or branding not only develops the reputation of businesses but also strengthens the financial operations of companies by a considerable degree (Aaker, 2009). 2.3. Benefits of Branding for the Present Day Business From the above analysis, it can be affirmed that branding has developed as one of the imperative marketing tools for companies, which enables them to operate effectively and with utmost competitive advantage in the global business sector. The effectiveness of the concept of branding can be seen in numerous companies irrespective of the scale of their operations and industry that they operate in. There are certain noteworthy benefits for the companies to adopt proper branding strategies within their respective businesses. One of such advantages of implementing proper branding strategies in business includes gaining utmost loyalty of the customers. It is quite an evident aspect that when customers are able to gain positive and memorable experience from associating with a particular brand, they become obsessed to buy products of the same company on repeated occasions. This aspect further raises the level of loyalty of the customers towards a particular brand (Kotler & Keller, 2011). In the process of ensuring proper brand management, companies offer high quality products and services to the customers that not only catch their attention but also develop a strong relationship between the product providers and the buyers. This impacts loyalty of the customers in a positive manner. Again, it has also been comprehended that proper branding strategies for business units will enhance the scope of their business expansion and establishment in unexplored markets. When companies are able to enhance the brand image of a particular line of products, they can also further use the same to its other products and connect with customers on a wider market. In this similar regard, companies can also use their positive reputation for a particular line of product while expanding their respective operations in new market. This aspect acts as a major benefit for the overall business in long run both in terms of profitability and business positioning. Furthermore, another vital advantage of proper branding relates with the aspect of reducing the marketing costs of the companies. When companies are able to develop a positive brand image amid the buyers, they become popular within any business market (Kotler & Keller, 2011). Hence, for conducting business operations efficiently, companies can strategise for adopting and applying low profile marketing approaches that will not only keep their reputation intact amid the customers, but at the same time, can also reduce the overall marketing costs of the business at large. 3.0. Recommendations to Qatar Airways Cargo Services Based on Literature Review The effectiveness and the importance of proper branding policies are quite apparent in the present day business environment. However, in order to justify as well as provide a better understanding of the effectiveness of branding in business, its application in an existing company like Qatar Airways would be vital. Qatar Airways is a company operating in aviation sector for several years under the supervision of the government of Qatar. The carrier is regarded as one of the most renowned names in the aviation sector throughout the globe world over the years of its existence. The company provides its services to the people of more than 125 destinations of the world. However, the company operates extensively in the Middle East region specifically within the gulf nations. It is evident that the aviation sector has also become quite competitive owing to the aspect that a large number of renowned companies are operating in the same. Qatar Airlines must also need to emerge with the ideas to develop its business approach so that it can sustain for a longer duration with utmost competitiveness. In this regard, the role of marketing as an effective tool to gain competitive advantage could not be ignored (Kotler & Keller, 2011)). 3.1. Branding in Qatar Airways Though Qatar Airways is quite a well known brand in the present day aviation sector, there still lays utmost scope for improvement for the company within its operational domain. Being world class global brand, it is not quite challenging for the company to ensure utmost popularity amid the customers. However, it has been noted that the company is not quite highly effective in the domain of its cargo services wherein it is still being regarded as an emerging player but not an established player. Thus, the management of the company will need to emerge with plans and ideas of marketing that can enhance its brand image in the domain of cargo business. In the process of augmenting its market presence and enhancing its brand image, the company is viewed to get aligned with Cargolux, which is regarded as one of the global and reputed service providers in the domain of cargo business. This alignment was mainly performed for developing the market presence of cargo business of the company in global platform and also to gain renowned brand image in the same as well. However, it has often been claimed that the company is in the verge to get separated or end its deal with Cargolux, which further depicts the strategic alliance to be unsuccessful (Reuters, 2013). Hence, the company must emerge with other approaches to establish its operations within the cargo sector efficiently. In this regard, the management of the company i.e. Qatar Airways will need to ensure the deliverance of quality services to the customers on a continuous basis so that a positive image can be built within the potential customers. Within the aviation sector, services itself act as the primary product and the satisfaction of the customers is gained mainly with the help of delivering desirable and innovative services to the customers. It can be recommended that the management of the company has to be more efficient in the domain of scheduling and work based on a proper timeline. Evidently, the most vital part of cargo business is often recognised to deliver the consignments to the customers as per the scheduled time so that the customers might deal with minimum difficulties. Furthermore, in the process of enhancing brand image, the company must also ensure that the goods it carries must be managed and packed efficiently so that they are not damaged prior to the deliverance of the same to the customers. In addition, flexibility is also regarded as an important part of branding in the domain of the operations associated with cargo service provider. It can therefore be recommended that the management of the company must emerge with the plans of making its cargo services more vigilant and flexibility so that it could be able to transform its business operations based upon the changing business environment. This might further enable the company to meet the changing demands of the customers at large. In this similar context, the management of the company can consider the approach of DHL, which is one of the most renowned cargo service providers in the global market. The appreciative brand image of the company is largely owing to its flexible nature wherein it is able to find operational solutions for any particular market situation (DHL, n.d.). The company must implement this particular approach within its cargo service deliverance procedure in order to develop a better and noteworthy brand image. 3.2. Barriers and Challenges for Qatar Airways The management of Qatar Airways might face certain challenges while incorporating branding strategies within its business. Owing to the increased level of globalization and the prevalence of extreme business market competition within the aviation sector, Qatar cargo services may find quite challenging in developing its brand image amid the existing market leaders such as FedEx and DHL among others. Furthermore, the openness of the market will cause problems for the company to establish a widespread brand image. It has also been noted that while operating in the global platform with regards to cargo services, the company will encounter varied cultural problems in the form of changing demands and customer preferences. This will also impact proper implementation of the branding strategies in the business of Qatar Airways cargo services (Rajasekar & et. al., n.d.). Hence, proper mitigation of the risks and challenges will also be an important part for the brand management of Qatar Airways cargo services. 4.0. Conclusion From the above analysis and discussion, it can be comprehended that in the present day business environment, the operational effectiveness of business collectively in numerous domains determines the overall efficacy of business. Amid the various operational aspects that are associated with a business, the role and prominence of marketing is one of the prime aspects. Marketing involves promoting the products and services of businesses to the ultimate customers. Branding is one of the tools of modern day marketing, which is being used by the companies to develop a positive image towards the customers. It is regarded such an approach of the companies wherein they intend to deliver products and/or services to the customers based upon their desire and need in order to raise greater customer loyalty. It can be affirmed that the concept of branding enables a particular company to gain the trust of the customers and enhance its operations in terms of sales and business sustainability. Recommendations have been made to Qatar Airways cargo services to develop its brand image and strengthen the market presence of the company in the global cargo service industry. Conclusively, it can be argued that branding is indeed an important part of the business and it certainly leads to the welfare of the business units in long run. 5.0. References Aaker, D. A. (2009). Managing brand equity. US: Simon and Schuster. Aaker, D. A., & Biel, A. (2013). Brand equity & advertising: advertisings role in building strong brands. US: Psychology Press. Anastasia, C. M. (2005). Globalization and its challenges to marketing in micro enterprises. Retrieved from http://www.professorc.org/Globalization_on_a_Shoestring_-_Anastasia.pdf Chernatony, L. D. D., McDonald, M. (2011). Creating powerful brands. UK: Routledge. DHL. (n.d.). DHL employer branding. Retrieved from http://www.tradeteam.com/downloads/DHL%20EVP%20e-Handbook.pdf Fernando, A. C. (2010). Business environment. New Delhi: Pearson Education India. Kotler, P., & Keller, K. (2011). Marketing Management 14th Edition. UK: Prentice Hall. Lee, O. (2000). Internet marketing research: theory and practice. US: Idea Group Inc (IGI). Oswald, L. R. (2007). Semiotics and strategic brand management. University of Illinois, 1-5. Pearson. (n.d.). Marketing in a changing world: creating customer value and satisfaction. Retrieved from http://www.prenhall.com/marketing/armstrong/38187_01_p1-33.pdf Reuters. (2013). Qatar Airways confirms Cargolux stake sale. Retrieved from http://uk.reuters.com/article/2013/01/13/uk-qatar-airline-cargolux-idUKBRE90C04620130113 Rajasekar, N., Babu, T. K. M., & Nalina, K. G. (n.d.). Challenges and opportunities of brand management and brand equity: A competitive edge. Retrieved from http://dspace.iimk.ac.in/bitstream/2259/517/1/615-622.pdf Smith, R. L., & Round, D. K. (1998). A strategic behaviour approach to evaluating competitive conduct. Agenda, 5 (1): 25-36. Read More