BRANDING AS A TOOL FOR INCREASING SALES VOLUME OF AN ORGANIZATION

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

Swaminathan et al. (2020) define a brand as more than just a name attached to a product or service; it encapsulates intangible attributes such as consumer perceptions, emotions, and associations with quality, status, and lifestyle. Rachmad (2023) adds that branding is a strategic process that creates a unique market position, ensuring that customers perceive a particular product or service as distinct from competitors. Similarly, Deryl, Verma, and Srivastava (2023) argue that branding plays a crucial role in establishing consumer trust by offering a consistent promise and delivering on it.

Kotler and Keller (2022) emphasize that branding is not just a marketing trend but a core business strategy essential for competitive advantage. In today’s digital era, branding has evolved beyond traditional marketing, with a strong emphasis on digital and AI-driven branding techniques (Nalbant & Aydın, 2023). According to Denga, Vajjhala, and Asortse (2023), branding is the cornerstone of marketing, involving the strategic creation, management, and enhancement of brand identity.

The American Marketing Association (as cited in Keller & Kotler, 2022) defines a brand as a name, term, sign, symbol, or design—or a combination of these—used to identify the goods or services of a seller and differentiate them from competitors. Branding provides legal protection for product innovations and serves as a key tool for customer loyalty, market control, and product differentiation (Butova et al., 2019). Through effective branding, companies can develop a dedicated customer base, shield themselves from competitors, and shape consumer preferences, ultimately driving sales growth (Dumitriu et al., 2019).

In modern business, branding plays a fundamental role in shaping consumer behavior across various industries, including manufacturing and consumer goods (Gielens & Steenkamp, 2019). This research focuses on the impact of branding on sales performance, specifically analyzing Nestlé Nigeria Plc, a leading food manufacturing company. Established in 1961, Nestlé Nigeria has evolved into a publicly traded entity on the Nigerian Stock Exchange since 1978, with a strong presence across multiple regions. The company’s product portfolio includes Nestlé Nutrend, Nestlé Cerelac (Maize and Chocolate variants), Nestlé Golden Morn, Nestlé Milo, Chocomilo, Maggi Cubes, and more. With sales offices and distribution depots in Lagos, Ibadan, Benin, Kaduna, Makurdi, Kano, Aba, and Jos, Nestlé Nigeria has built a robust supply chain network.

Contrary to the misconception that branding is solely about product aesthetics, branding extends beyond visual design to encompass intrinsic and extrinsic product qualities, including packaging, naming, and consumer perception (Ruiz-Real, Uribe-Toril, & Gázquez-Abad, 2020). Branding activities involve creating a brand identity, registering trademarks, and ensuring market differentiation (Desai & Vidyapeeth, 2019). Without branding, businesses would struggle to establish market positioning and recognition, leading to undifferentiated competition (Khan & Siddiqui, 2023).

Francis and Stephen (as cited in Rowles, 2022) describe branding as the creation of a three-dimensional identity for a product, incorporating elements such as name, color schemes, and symbols to distinguish it from competitors. Branding also facilitates customer engagement and loyalty by fostering an emotional connection with products (Labanauskaitė, Fiore, & Stašys, 2020). Bearden and Ingram (as cited in Purnama et al., 2022) state that branding involves using distinctive names, terms, or symbols to establish product recognition. Similarly, McCarthy (as cited in Fraccastoro, Gabrielsson, & Pullins, 2021) argues that branding is a strategic marketing process designed to embed a company’s identity in consumers’ minds, ensuring long-term market presence.

Worlu et al. (as cited in Kushwaha et al., 2020) define branding as a deliberate effort to align a company’s business strategies with its brand identity and values. Batra and Homer (as cited in Rachmad & Budiyanto, 2022) further highlight that branding involves creating a distinct market position using unique design elements and messaging. Palmer (as cited in Erdil & Arani, 2019) views branding as a means of establishing a strong product identity that differentiates it from competitors. Ultimately, branding fosters durable consumer perceptions, driving long-term business success (Dolega, Rowe, & Branagan, 2021).

This study explores how branding contributes to increased sales and profitability in Nestlé Nigeria Plc, evaluating its effectiveness and strategic implementation. Through a comprehensive analysis, the study aims to determine the extent to which branding influences consumer purchasing behavior and business performance.

1.2     Statement of the Problem

Branding plays a crucial role in the food industry, particularly in the Nigerian market, where product differentiation is essential for business success. While some scholars argue that branding food products could pose challenges to society, others strongly believe that it serves as a strategic tool for business growth and consumer engagement. The debate revolves around whether branding influences consumer perception and loyalty or simply acts as a marketing mechanism without significant long-term benefits (Swaminathan et al., 2020; Denga, Vajjhala, & Asortse, 2023).

A key example of branding's significance is evident in the soft drink industry, where multiple products provide similar satisfaction to consumers. Despite offering nearly identical taste and refreshment, brands such as Coca-Cola, Pepsi, and Bigi have distinct identities that shape consumer preferences and purchasing decisions. Branding ensures that each product is uniquely positioned in the market, allowing companies to build brand recognition and foster consumer loyalty (Ruiz-Real, Uribe-Toril, & Gázquez-Abad, 2020). Without effective branding, products risk becoming generic, losing their competitive edge in an already saturated market (Kotler & Keller, 2022).

Moreover, branding extends beyond mere product differentiation; it plays a fundamental role in shaping consumer perceptions and influencing purchase behavior. According to Rachmad (2023), branding creates a psychological connection between consumers and a product, making them more likely to repurchase and recommend it to others. This is particularly true in Nigeria’s competitive food sector, where consumers rely on branding elements such as logos, packaging, and advertising to make purchasing decisions (Desai & Vidyapeeth, 2019). The impact of branding on consumer decision-making is further amplified in the digital era, where social media and online marketing strategies enhance brand visibility and consumer interaction (Kushwaha et al., 2020).

For businesses, branding is not just a tool for product differentiation but a strategic mechanism to drive sales and profitability. Studies show that well-branded products achieve higher sales volumes due to increased consumer trust and recognition (Dumitriu et al., 2019). In Nigeria, where the food industry is expanding rapidly, companies that invest in branding enjoy a competitive advantage in terms of market share and customer retention. As Nalbant and Aydın (2023) highlight, digital branding and artificial intelligence have further transformed branding strategies, enabling companies to personalize marketing campaigns and enhance customer engagement.

Given this context, this research seeks to examine the impact of branding on the sales performance of food products in Nigeria. By analyzing how branding influences consumer behavior and drives sales volume, this study aims to provide insights into how businesses can leverage branding as a growth strategy. Through empirical analysis, the research will explore the extent to which branding contributes to business success and the factors that determine its effectiveness in the Nigerian food industry.

This study ultimately aims to bridge the gap in understanding how branding affects consumer choices and business growth, shedding light on whether branding is merely a marketing necessity or a core determinant of sales performance in the food sector (Gielens & Steenkamp, 2019; Rowles, 2022).

1.3  Objectives of the Study

The main objective of this study is mainly to find out the impact of branding as a tool to increase sales volume of an organization, specifically the study intends to:

1.     Identify method of marketing branded  products in an organization

2.     Find out different styles of branding used by organization

3.     Find out the impact of branding on the increase in sales volume of Nestle foods Nigeria Ltd.

1.4     Research Questions

1.     What methods can be used to markets branded products in an organization?

2.     What are the different styles of branding used by organization?

3.     What is the impact of branding on the increase in sales volume of Nestle foods Nigeria Ltd.?

1.5     Research Hypothesis

Ho: there is no significance impacts of branding on the sales increase of Nestle foods Nigeria Ltd

Hi: there is a significance impacts of branding on the sales increase of Nestle foods Nigeria Ltd

1.6     Significance of the study

Similar studies might have been carried out in this area of human endeavor, however, the simple fact that business environment is never static, a lot of changes might have rendered parts of the result of these findings obsolete.

This research work will be beneficial to the organization under review (Nestle Nig Ltd) as the researcher will search into various aspects of marketing branded food products within the organization to ascertain whether the huge amount of money spent to brand food products is justified.

The study is also expected to serve as a reference material for future research work in this important aspect of business administration as it can be consulted as a reference material especially if there is the need to improve on the study.

1.7 Scope of the study

This study will be focused on the impact of branding as a tool for increasing sales volume of an organization. It will also be focusing on identifying methods of marketing branded  products in an organization, finding out the different styles of branding used by organization and finding out the impact of branding on the increase in sales volume of Nestle foods Nigeria PLC.

This study will be using the management and staff of Nestle Nigeria Plc, Lagos State as enrolled participants for this study.

1.8 Limitations of the study

This study will be limited to the impact of branding as a tool for increasing sales volume of an organization. It will also be limited to identifying methods of marketing branded  products in an organization, finding out the different styles of branding used by organization and finding out the impact of branding on the increase in sales volume of Nestle foods Nigeria PLC.

This study will be using the management and staff of Nestle Nigeria Plc, Lagos State as enrolled participants for this study and this will serve as a limitation to this study.

1.9 Definition of terms

Branding: the promotion of a particular product or company by means of advertising and distinctive design

Tools: implements used to carry out a particular function

Sales volume: the number of units sold within a reporting period