BENEFITS OF A STRONG BRAND TO BUSINESS ORGANIZATIONS

The benefits of brands are undeniable and they're essential to our day-by-day life (Sherry, 1995).
Brands appear as the external image of a company, experienced as the perception customers and
stakeholders have regarding the organization. There are multiple benefits connected to a strong
product brand.

High employee motivation. Motivated employees are better problem-solvers; have higher levels
of innovation, creativity, and customer-centricity; are more profitable; create higher levels of
customer satisfaction (Balmer & Wilkinson, 1991)

Improved customer satisfaction. A positive brand image gives enhanced satisfaction to customers
when they use the product. They feel more confident about buying it (7 major benefits of a strong
brand, n.d.).

Increased product demand. A strong brand indicates a strong market position. People purchase
more of a brand they want hence increased sales (Clifton, 2009).

High customer loyalty and retention. The perceived value of a strong brand and its continued
positive emotional experience brings about customer loyalty and retention (Balmer & Wilson,
1998).

GLOBAL BRANDING, ITS BENEFITS, AND CHALLENGES

As defined by (Rocket Content writer, 2020), Global branding refers to brand management in
different regions of the world to increase its strength and recognition in the markets in which it
operates. As many companies turn to view the entire world, global brands attract more clients and
become well-known worldwide, resulting in high sales (David A. & Joachimsthaler. E,1999).

The decision to go global branding brings a series of benefits. First and foremost, globally
recognized brands gain market value. According to Brand Finance, Amazon (US$ 220,8 bi) and
Google (US$ 159,7 bi) are listed as some of the most valuable brands in the world due to their
global branding move. This indicates that a brand becomes the company’s greatest asset when it
expands worldwide (Rocket Content Writer,2020).

Global branding increases bargaining power. The brand yields much more profitable negotiations
with suppliers, clients, and partners due to its improved reputation and higher bargaining power
within the market.

Companies that opt for global branding enjoy economies of scale. For instance, IBM spends much
less to create a single global advertising campaign than it would create separate campaigns for
dozens of markets since it uses only one agency for all its global advertising. A global brand also
benefits from being driven by a single strategy ("Marketing and Sales - Research, reports, and
insights," n.d.).
Brands that become global also tend to gain improved perception which leads to a good brand
reputation. Global brands become symbols of status and quality and are often more desired than
local brands. A good global brand strategy wins the customers’ trust and builds a strong brand
identity, which is reinforced in all places of operation.

Despite the clear benefits that come with global branding, the strategy can be a big challenge to
companies. Global branding is at times more expensive. It is way cheaper and more effective for
a company to create ads that suit the local market than for each market from a global perspective.
Moreover, cultural differences tend to make it hard executing to a global campaign in all countries.
These campaigns become more expensive if issues like language barriers and cultural differences
are to be resolved (David A. & Joachimsthaler. E,1999).

It is nearly impossible to impose global brands on all markets because product brands’ image may
not be the same throughout the world. Lato milk in Uganda could be related to affordability but
while the UAE could associate it with quality, health benefits, and executive representation
because of the difference in the economic statuses of the two regions.

Global branding becomes very challenging in politically unstable areas of the world like Somalia
because many consumers in these areas instead concentrate on buying necessary goods for survival
or free commodities received for relief during the economic and political crisis(Wright. Q, 1964).

Conclusion

Global branding surely brings several benefits, but only for businesses that can overcome the
obstacles involved in its implementation. For successful global branding businesses should deeply
understand the local and global culture, consumer behavior, and market potential at a global level.

MY REFLECTIVE QUESTION

Is it realistic to say some companies have a global brand reach? And would it be prudent for local
businesses from developing countries to take on this strategy? Isn’t it so expensive now that
involves technology adaption?

My attention went on Global branding issues and how best these branding issues can be resolved
in the present COVID19 pandemic times, which came as a game-changer in business.
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