Category: Brand

The Scandal

When it comes to the types of fuel, the automobile preferences in the United States and Europe differ majorly. The cars powered by diesel fuel that produces the emissions of CO2 (carbon dioxide) are more popular in Europe, while the Americans prefer the vehicles running on gasoline that releases NOx (nitrogen oxide) (. Both of the pollutants are harmful; however, CO2 is also one of the primary contributors to the greenhouse effect and the global warming. As a result, the use of diesel-powered cars in the USA is limited by the EPA regulations. However, the car manufacturing company Volkswagen managed to sell millions of their vehicles to the United States and Europe (La Monica, 2015).

The companys determination to earn the top rank in their industry has cost VW its brand reputation. Having failed to find a way to manufacture an engine with higher combustion efficiency, the company came up with a so-called defeat device, software installed in each VW car designed to cheat and show false emission results every time the vehicles were tested (Hakim, Kessler, & Ewing, 2015). As the truth about this unethical maneuver surfaced, VW faced significant damage to its brand image, reputation, and revenue  now the company is obliged to fix all the vehicles covered in the scandal (Farrell, 2015).

VWs Brand Equity and Reputation

The brand reputation of VW was hurt significantly as millions of its customers discovered that their vehicles were compromised. Of course, the wrongdoing of VW is not the question of safety, but an ethical issue; however, regardless of its nature the cheating took place and caused a scandal (La Monica, 2015). The companys brand reputation is damaged due to their unethical choice of a larger income and higher sales rates over sustainability and environmental awareness. As a result, the companys positioning as the top car manufacturer and seller became inadequate and made a negative impact on its brand equity.

VWs determination to outsell its main competitor Toyota and take over the top spot in the market was associated with the brands compliance with the quality and environmental responsibility of the manufacturer. The scandal has revealed that the priorities were different in reality, and VW neglected the ethics striving to achieve higher revenues. This attitude is inequitable to the position the company pursued in the industry as putting their brand name on their products the manufacturers of the top seller make the consumer believe they are purchasing the high-quality vehicle that meets all the ethical requirements (Keller, 1993). As brand equity is directly connected to the brand reputation, both of these aspects were damaged by the scandal and resulted in the rapid loss of income and the decrease of sales rates (Ewing, 2015).

Handling the Scandal

The response of the VW authorities to the scandal involved the statement that only a small group of employees was responsible for the cheating software (Ewing, 2015). Also, the company has claimed to investigate the source of the problem. As a result, several of VW senior engineers were fired within a few months (Boston & Houston-Waesch, 2015). However, approaching the issue critically, one may logically assume that such a massive fraud could not have been done quietly without the authorities knowing about it. That way, the public is concerned with the question how high up the executive hierarchy this conspiracy could go.

At the same time, the consumers who bought the scandalous vehicles are one of the parties who require immediate answers from the manufacturer. Attempting to minimize the ethical impact of the scandal, the leaders of VW have agreed to provide recall of the compromised vehicles as ordered by the countrys Ministry for Transport (Boston & Houston-Waesch, 2015).

In terms of the ethics of the companys actions, VWs first response to the crisis  open admittance  was the right decision in terms of honesty and willingness to make changes. Secondly, VW never named the people responsible for the faulty technology but fired those associated with it refusing to put the entire blame on separate individuals. Thirdly, the company claimed that the owners of the cheating vehicles had a right to decide whether or not they wanted the remedy for their cars (Boston & Houston-Waesch, 2015).

From the consumers perspective, the company betrayed their trust selling unsustainable cars masked as environmentally safe vehicles. The unethical actions from the brand managers perspective lie in the distortion of the ethical standards the brand represents for the sake of the material good.

Lessons Learned

The VW scandal is an example of a major ethical misconduct becoming public. Its outcomes have produced a massive negative effect on the company  loss of revenue, the obligation to recall millions of orders, injured trust of the consumers, damaged brand equity and reputation. The top management of VW is to throw all its effort to win the consumers trust back with their new vehicles.

The company is to invest in the development of responsible technologies and advertisement campaigns covering the massive fallback due to the crisis and honestly admitting their fault, but emphasizing the new approaches. Overall, the leadership of the company is to reevaluate the previous ethical norms and priorities of the company. In the modern world focused on the environmental concerns, being sustainable is the only way to the top, while focusing on the material gain and neglecting higher values is the path towards failure.

Reference List

Boston, W., & Houston-Waesch, M. (2015). Volkswagen suspends another top engineer; berlin orders recall; transport minister says recall of tainted diesel cars is mandatory. Web.

Ewing, J. (2015). Diesel scandal at VW spreads to core market. Web.

Farrell, S. (2015). Volkswagen loses sales top spot to Toyota after emissions scandal. Web.

Hakim, D., Kessler, A. M., & Ewing, J. (2015). As VW pushed to be no. 1, ambitions fueled a scandal. Web.

Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1-22. Web.

La Monica, P. R. (2015). Volkswagen has plunged 50%. will it ever recover? Web.

Abstract

This paper defines the importance of brand loyalty as a desirable outcome in the total marketing mix and personifies brand bonding in the case of a college student who cannot live without Coca-Cola. A refreshment needs to be created by advertising, demand for Coca-Cola grew via an unusually fortuitous chain of the unique product idea, affordable pricing, a franchising model that extended market reach while sharing production costs with bottlers, and a single-minded focus on availability at retail for every thirsty drinker that wanted a Coke. To build critical mass, sustainability of the business and brand loyalty, Coca-Cola has depended on consistent advertising that fostered both a highly favorable brand image and contained a hard-sell message.

Introduction

I have always been fascinated by the neighbors 19-year-old college kid. When all the other young guys I knew disappeared night after night in binge drinking and the newfound liberties of college, here was Francis happy at home with his computer, pizza and endless squeeze liter bottles of Coke. It had always been his drink of choice since starting school and not the zero-calorie or wimpy Cherry Coke flavor either.

Description of Persons Loyalty to a Brand

Once brand equity has been established by promising brand strategy, differentiation, brand familiarity via sustained advertising, image-building market entry, brand relevance and eminently satisfactory performance against the brand promise, consumer marketers pursue the goal of profitable market share by enhanced market penetration and building brand loyalty. In fast-moving consumer goods (FMCGs) like carbonated soft drinks (CSD) particularly, the concentrate makers desire the brand bonding that impels core adolescent and young adult market segments to prefer one brand during every consumption occasion to the exclusion of all others (Armstrong and Kotler, 2009). The ideal is the kind of brand loyalty that motivates a thirsty young man to try another store if the first he tried has run out of his favorite soft drink brand.

In practical terms, brand loyalty may not even be totally exclusionary. In response to brand-switching campaigns by the competition, value-added promotions, bundling deals in the supermarket, or exclusivity forged by competitors with restaurant chains a Coke drinker may occasionally drink other brands. But the company can live with that because a reasonable level of brand loyalty is the base that supports the conquest of new drinker segments and geographic areas. Without brand loyalty, CSD makers would have to offer reasons why to shoppers every day so as to defend volume share. But it is too expensive, in terms of advertising and promotional spending, to keep doing so.

Background on the Brand

The phenomenal story of Coca-Cola from one mans concoction in a solitary soda fountain to market leader in America and successful world-beater is one of the remarkable and legendary success stories of the last twelve decades. It is a story of creating an entirely new product class, satisfying a nonessential want, building an enduring business model, sticking to beverages, and moving aggressively on distribution and advertising to shape brand loyalty despite shifts in market trends and occasionally successful forays by archrival Pepsi Cola.

Both the Coca-Cola recipe and unique, two-part manufacturing process date back to the summer of 1886 when Atlanta pharmacist John S. Pemberton brought a jug of his brand-new concoction down to Jacobs pharmacy to be mixed with carbonated water and sampled. Pronounced tasty and refreshing, the drink was branded Coca-Cola right from the start and sold for five cents a glass (The Coca-Cola Company, 2009).

Success was by no means instant. That first year, Coke averaged sales of just nine glasses a day all over the city. On Pembertons death, Asa Chandler (also an Atlantan) acquired the controlling shares and pushed a ten-fold sales to increase with a strong advertising push, couponing, the launch of branded premiums that were to remain an important part of the marketing arsenal for over a century, and the enduring four-fold mission product benefit statement: delicious, refreshing, exhilarating, invigorating! (The Coca-Cola Company, 2009). This core message was executed most recently as the theme, Open happiness.

On the matter of distribution, Candler pursued the business model he was familiar with. Less than a decade after the formula was born, he had shipped syrup to pharmacists all over the United States. It took three Chatanoogans to obtain the national bottling rights and invest in autonomous bottling plants, two of which they had in operation by 1899. In the next two decades, the three partners co-opted numerous local businessmen to blanket the nation with 1,000 plants. This became the enduring platform for market dominance not only domestically but overseas as well.

Marketing Application and Analysis

For a product class that is not essential to human survival, security or happiness, Coke has fostered brand loyalty more enduring than the temporary surges produced by the Pepsi Challenge. This the company has forged by associating itself with every aspect of American dining and lifestyle, as well as with highly convincing advertising themes such as Its the real thing, Real, Coke is it, all of which reinforce the image of the brand as the original CSD and therefore sustain loyalty when it comes to the refreshment benefit (Ries, 2003).

Conclusion

This all-too-brief review has shown that the consumer loyalty accorded Coke sprang from product innovation, a franchising business model, hyper-aggressive efforts to achieve retail availability, pricing to accommodate impulse purchases, and advertising campaigns that melded a behavioral response with music, fun and the American lifestyle.

References

Armstrong, G., & Kotler, P. (2009). Marketing: An introduction. Upper Saddle River, N.J.: Prentice Hall.

The Coca-Cola Company (2009). The chronicle of Coca-Cola. Web.

Ries, A. (2003). Coca-Cola gets real. Advertising Age.

Executive Summary

Market research is an important tenet of daily business operations because it integrates the needs of consumers, the public, and customers through information transfer. Therefore, the concept helps to identify problems in the market that could be fixed through value transfer. Pertinent to this analysis is the concept of branding, which refers to the attributes or dimensions that a product or service may have that differentiate it from its competitors.

Concisely, branding is a key feature of marketing that refers to the use of promotional activity, through design and advertising, to enhance the profile of a good or service in the market. Therefore, brands refer to product markers that help customers to distinguish their performance from others in the market. This report is a brand audit of Casio and Roland, which are between the two leading companies engaged in the production and sale of musical instruments.

The scope of the report will cover their branding strategies, branding elements, and brand packaging decisions for their primary products and brand extensions. This investigation aims to understand how different aspects of brand performance affect the positions of Casio and Roland in the market. Relative to this assertion, this comprehensive brand audit aims to fulfill several functions, including identifying brand performance, classifying existing strengths and weaknesses, aligning corporate strategies with customer expectations, and recognizing the corporate position of the above-mentioned two musical instrument producers, vis-à-vis the current competitive activities and industry performance.

The findings of this report show that both brands are heavily invested in technology adoption, but are different in terms of the target market desired. Notably, Casio appeals to a wider market because it has different products for varied market segments. However, Rolands products are designed to appeal to a high-end market.

Casio

According to Gürhan-Canli, Sarial-Abi, and Hayran (2018), a brand audit seeks to compare the brand performance of a company relative to its goals. Subject to this view, AMA (2019) adds that it is difficult to develop a brand that has a strong emotional appeal because of the presence of multiple psychosocial factors that influence performance. Casio uses a multi-product branding strategy because it makes different kinds of products using the Casio brand name.

For example, its watches, calculators, and musical instruments are different products that use the Casio brand name (Casio Worldwide, 2019). This is why the company is known for producing multiple products that appeal to different market segments. Albeit the multi-product branding strategy has contributed to Casios market expansion, it is also a source of weakness to the companys overall brand image because some of its products have a stronger market appeal than others. For example, Casio is popularly known as a watch brand. Therefore, it may be difficult to market the same company as a musical instrument firm. An in-depth analysis of the companys key branding elements is provided below.

Brand Personality

According to the course materials on brand personality, the concept refers to the association of a brands attributes to human physiognomies. For example, some common brand features include sophistication and romanticism. Consumers often associate these brand attributes with their personality traits because a brands personality is an extension of their self-image. Therefore, they are likely to reject products that do not align with their self-image. Casios main strength lies in its integration of new technology in the production or manufacture of its musical instruments, which allow it to produce excellent sounds that some of its competitors cannot match (Fielding, 2017).

For example, its acoustic intelligent resonator was an innovative product that allowed users to create melodic sounds that its competitors could not produce. The innovation was focused on the production of string sounds that would be found in a typical acoustic piano. It also helped users to determine the right tone to strike a key when using one of Casios pianos (Fielding, 2017).

Brand Image

According to the course materials on brand image, a products image refers to how people perceive it in their minds. Stated differently, a brand image refers to what people perceive a brand to be, based on their thoughts, feelings, and expectations. It is important to review the concept of brand image in highly competitive markets. It is the most openly differentiating factor between products and services because the rest of the brand attributes are often equally matched (Gürhan-Canli et al., 2018). Some of Casios Pianos have been criticized for having inferior sound quality and key actions compared to the competition (Catchy, 2019). Therefore, in terms of product quality, its brand image is inferior to its competitors.

Brand Identity

Casios use of innovative techniques when making musical instruments has caused its strong appeal in the market (Bhasin, 2019). This brand strategy has allowed users to create unique acoustic sounds by leveraging such technology for improved user experience. Casios adoption of innovation has also led to the development of multiple features on its keyboards, which have improved functionality. Therefore, for the same amount of money a customer would pay for a competitors keyboard, they would enjoy more features by buying a Casio musical instrument (Bhasin, 2019).

Brand Differentiation

According to the course materials, brand differentiation refers to the process of building a successful product image by setting itself apart from its competitors. The process happens by identifying a superior aspect of a brands performance with several key consumer benefits. At a more superficial level, brand differentiation is linked to a companys corporate image. Casios brand differentiation strategy is linked to reliability because its products have been tested in the market for a long time and found to be sound.

Brand Positioning

Casio has positioned itself in the market as a brand that caters to the needs of different groups of customers. Therefore, its products are found in many market categories and segments (Casio Worldwide, 2019).

Brand Communication

Brand communication is an important aspect of corporate performance. The class course materials suggest that it refers to the conveyance of a companys product or service value to customers. Although some critics do not consider this aspect of brand analysis as a primary tenet of sales, under product quality, researchers say that big companies must develop a strong brand communication plan to convey value to customers; otherwise, people may not be aware of it (Müller, 2018). Some of Casios products have a strong aesthetic appeal that improves a users experience (Casio Worldwide, 2019).

For example, its Grand Hybrid Pianos use wooden keys and real hammers that provide users with an authentic experience when playing music. Therefore, authenticity is the main communication mantra adopted by the brand.

Brand Loyalty

One of Casios major sources of brand loyalty is its strong brand image (Bhasin, 2019). Its wide range of products, which not only includes keyboards but also superior watches, calculators and printers, enhances it. Another factor contributing to Casios brand image is its long history in the market. Indeed, few competitors can boast of having the same market experience as Casio does in selling keyboards. Customers recognize this fact and attribute more value to the companys products.

Brand Equity

The biggest strength associated with Casios products is its great value for money because the company offers a wide range of affordable products, such as its entry-level portable stage pianos, which are popular in the lower and middle-income market segments (Market Watch, 2019). For example, the Casio CDP130 is priced under £300 (Fielding, 2017). Its financial performance is also better than the industrys average because it has significantly created more revenue than its competitors (Market Watch, 2019). Therefore, it has strong brand equity.

According to the course materials on brand packaging decisions, companies can either adopt primary, secondary or tertiary packaging strategies. Casio is a brand extension of the parent company that has the power to influence such decisions by controlling retailer behavior. In other words, it designates the kind of design and packaging that needs to be adopted by retailers. However, according to Market Watch (2019) and Fielding (2017), this type of control has undermined free-market competition in some mature markets, such as the UK. Consequently, the company needs to rethink its tertiary designs to enhance market appeal. For example, the tertiary packaging design could be used to form part of the retailers in-door display, thereby adding value to the products appeal.

Roland

According to the course materials, four major types of branding strategies are commonly used in marketing: a multi-product branding strategy, a multi-branding strategy, a private branding strategy, and a mixed branding strategy. Unlike Casios multiproduct branding strategy, Roland uses a mixed framework, which focuses on marketing products in different segments of the industry using the companys brand or private label (Roland Corporation, 2019).

Brand Personality

Rolands brand personality is high-end. It also has a range of musical instruments that stretches from beginner to advanced levels. For example, beginner stage pianos such as the FP-30 are designed for the lower end of the market, while grand digital pianos, such as the GP-607 appeal to the largest market segments (Fielding, 2017).

Brand Image

Unlike Casio that has multiple product business strategies that cut across different market segments, Roland is mostly known as an electronics musical instrument business. The companys brand image is premium because it is rarely associated with the production of entry-level pianos (Brooklyn, 2019).

Brand Identity

Roland is known for changing the electronic musical instruments market through groundbreaking innovation (Roland Corporation, 2019). Therefore, Roland prides itself on being one of the major supporters of the music industry.

Brand Differentiation

Unlike its competitors, Roland is not known to be fixated on making acoustic pianos only (Fielding, 2017). Stated differently, it is not confined to sampling one brand. For example, the Progressive Hammer Action (PHA) brand generates an acoustic piano feel that could not be easily replicated by the competition (Fielding, 2017). The use of traditional materials like wood and modern iterations of the same are known to provide a traditional feel of the musical instruments as well as improved functionality such as durability. These properties distinguish it from competitors.

Brand Positioning

Müller (2018) claims that brand positioning does not necessarily increase value and instead focuses on the manipulation of a consumers mindset. Rolands brand position is the next level because it is mostly associated with improving quality through innovation (Fielding, 2017).

Brand Communication

Rolands brand communication is based on social media marketing. This strategy has helped it communicate to its customers its superior brand attributes such as the soft sound created by its instruments (Fielding, 2017). In other words, unlike the Casio, Roland is known to produce mellow sounds. The instruments are also known to have a unique sound engine that makes the sound produced by Rolands keyboards sound acoustic (Fielding, 2017). The result is the production of unique tones for each note. Its note velocities are also known to be smooth, thereby giving a more dynamic response to the sounds produced. In other words, the sound decays produced by Roland instruments appear to be more natural than other musical tools produced in the industry (Fielding, 2017).

Brand Loyalty

According to the class course materials, brand loyalty refers to a customers bias to purchase a specific product or service at the expense of others. Akin to this concept is the willingness of consumers to switch brands, depending on their perceptions of customer service. Roland has a strong brand loyalty because of its long history in the market for making innovative musical instruments

Brand Equity

According to the class course materials, brand equity refers to the total sum of a companys value based on its consumers perceptions. This worth is determined by an assessment of the consequences of buying linked products or services. Roland has invested in developing useful partnerships and relationships with third parties to improve its brand profile. The company also has a high return on assets of 7.86, which is among the highest in the industry (Wall Street Journal, 2019).

This figure means that the companys investors are enjoying increased profitability. Lastly, Rolands packaging decisions reflect a high-end design because most of the companys instruments are designed to appeal to premium customers (Atlanta Institute of Music & Media, 2018). This packaging decision has seen the company adopt a cabinet-style packaging design for its products (Brooklyn, 2019). Stated differently, the companys products are slimmer and more minimalist than conventional products.

Broadly, Casio and Roland are among the top players in the production of musical instruments around the world (Johnson, 2019). Casio has a bigger market share because of its wide market outreach, long history in the market, and multiple product offerings (Bhasin, 2019). Comparatively, Roland is mostly attuned to meet the needs of a high-end market (Atlanta Institute of Music & Media, 2018). Both Casio and Roland generate a positive brand image of musical instruments in the market.

Although Casio spends many resources to maintain such an image, it is still known for making watches (Atlanta Institute of Music & Media, 2018). Comparatively, Roland has a similarly positive brand image because its products are known for being similar to pianos (Atlanta Institute of Music & Media, 2018). A broader comparison of the performance of the two brands is highlighted in Appendix 1.

References

AMA. (2019). Advanced branding and positioning. Web.

Atlanta Institute of Music & Media. (2018). The top 5 electronic keyboard brands to help launch your music career. Web.

Bhasin, H. (2019). Marketing strategy of Casio  Casio marketing strategy. Web.

Brooklyn, E. (2019). Roland RP102 review. Web.

Casio Worldwide. (2019). Activities to improve customer satisfaction. Web.

Catchy, S. (2019). Yamaha vs Casio digital pianos & keyboards -which brand? Web.

Fielding, I. (2017). Digital piano comparison: Yamaha Vs Roland Vs Kawai Vs Casio: Which brand is best? Web.

Gürhan-Canli, Z., Sarial-Abi, G., & Hayran, C. (2018). Consumers and brands across the globe: Research synthesis and new directions. Journal of International Marketing, 26(1), 96-117.

Johnson, B. (2019). Digital keyboard market expanding massively with focusing on leading players Casio, Kurzweil Music Systems and Korg. Web.

Market Watch. (2019). Casio Computer Company Limited. Web.

Müller, M. (2018). Brandspeak: Metaphors and the rhetorical construction of internal branding. Organization, 25(1), 42-68.

Roland Corporation. (2019). Brands and business domain. Web.

Wall Street Journal. (2019). Roland DG Corp. Web.

Appendix

Appendix 1. Brand Audit

Executive Summary

Tesla Motors considers its future performance to oscillate around the better placement of Model S in the marketplace. Currently, it employs an excess of 2000 people across all its fully owned subsidiaries that are situated in Asia, North America, and Europe. It also opened a new outlet in Toronto in 2012 in a bid to market itself in the Canadian market. Its long-term strategic goal is not only to offer high performing automobiles to average consumers but also vehicles that have zero emissions.

Tesla Motors remains the only organisation that offers serial produced luxury electric sports vehicles. It anticipates launching its Model X this year, 2014. It plans to develop a large number of recharging stations across the world whilst making significant progress in terms of innovation of battery technologies in a bid to boost the dependability of its products.

The current marketing communication plan proposes that with a budget of $45M, Tesla Motors can increase its sales from 20,000 units to 35,000 units in 2014-2015 by incorporating online and traditional media marketing communication strategies. This way, the company can clear misconceptions and doubts on the usefulness of the Model S. This strategy can help in terms of solidification of Tesla Motors brand equity. The objective of the plan is to increase sales, enhance Tesla Motors brand awareness, and/or drive potential consumer traffic into the organisations online communication platform.

Introduction

Founded in 2003, Tesla Motors is an American automobile manufacturing company. The development of the brand is owed to the efforts of engineers from Silicon Valley. Its headquarters are based in Palo Alto in California (Tesla Motors, 2014). The company developed its first model, Roadster, with the objective of setting the way for the development of an electric car as an alternative to gasoline propelled cars (Hardester 2010).

Since this early innovation, Tesla Motors has experienced a problem in that it sells its products on zero marketing communication budgets. Upon the adoption of communication strategies for pushing its sales higher through the creation of brand awareness, the company has an opportunity to developing brand loyalty. In fact, Tesla Motors is the only company that produces high performance and lucrative fully electric sedans in the US.

After proving that electric technology was a possible impulsion of vehicles, Tesla Motors progressed to release Model S into the market in 2012 (Karamitsios 2013). This model targeted the lucrative sedan market segment, which is also the target market segment for the proposed marketing communication plan. Tesla Motors markets its model S brand as a luxurious, technological, and high performing brand.

The organisation also engages in the design and sale of electric power trains to various automakers, including Mercedes Benz and Toyota among others. However, this paper does not focus on these product lines. Rather, its objective is on the analysis of the company and its marketing communications. It suggests online communication platform as a possible way of enhancing communication of the organisations brand in the effort to boost sales from 20,000 units in 2012-2013 to 35, 000 units in 2014-2015 fiscal year.

Market Definition and Parameters

The market segment for Tesla Motors is mid-sized with highly performing luxurious sedans. The company has the capability to succeed in this market segment upon considering that its Model S is not only purely eclectic but also a high performing eco-friendly automobile (Mangram 2012). In this market, the company does not have any close parallel competitor. Indeed, the closest organisations that compete with it in the electric luxury sedan segment include Nissan through Nissan Leaf and Chevy through its product, Chevy Volt (Tesla 2013). Nevertheless, they both present low threats. They offer lower performance electric cars in comparison with Model S.

Model S particularly fits well in the mid-size luxury automobile market. Forbes magazine conducted a research on the sales of different luxurious automobiles. It reported an increase in sales volume of luxurious vehicles for a period of 5 years. As shown in appendix 1, this increase was highest in 2012 by about 20 per cent compared to 2011 (Karamitsios 2013).

This finding suggests an increasing demand for luxury vehicles, especially as the economy recovers from the aftermaths of the global financial crisis. However, amid the increment in demand, organisations that offer a brand with high performance and efficiency are likely to make more sales because of luxury products market segments value product utility and conformance to specifications while making buying decisions (Simon 2007; Yelkur 2011).

Market definition for a luxurious vehicle can perhaps be best accomplished by considering forecast for the expected sales level. Mangram (2012) forecasted a purchasing behaviour in the US for consumers with household incomes amounting to $100, 000 and above. According to him, there were downturns in 2009 and at the beginning of 2010. There were also declines in July to August 2011, which he said could be explained by uncertainties associated with debt ceiling fears and downgrading of the US credit. Upon considering that data of market dynamics in the lucrative vehicles category is forecasted for a period of 6 months, the trend line implies greater expectations for Model S.

Market Dynamics and Trends

While developing a marketing plan for Model S, it is important to consider marketing dynamics and performance trend for electric cars in the marketplace. Lim (2014) shows the potential for increased demand for greener vehicles. His data depicts the changing preferences among consumers, especially those who are environmentally conscious. Changing fluctuation in oil prices may also create a higher demand for purely electric vehicles such as Model S. In the US, this segment accounts for only 3.38 per cent in the whole industry of electric cars, including hybrid vehicles (Lim 2014).

Changing the perception among consumers in terms of their role in protecting the environment from the pollution that is associated with green gas emissions and/or the rising demand for luxury items constitutes a reliable indicator for better performance and embracement of luxury electric vehicles such as Model S. However, the success of this model in the marketplace depends on competitive forces and the capacity of the Tesla Motors to capitalise on its opportunities and strengths to overcome its weakness and threats. This claim suggests that a complete analysis of the marketing trends and dynamics requires an aggressive investigation using Porters five forces and SWOT analysis.

SWOT Analysis

For the viability of marketing plans, SWOT analysis for the new or existing brand is necessary with the aim of determining whether an organisation has the capacity to place the product in the market (Menon 2006). This approach calls for the strategic planning approach for evaluating the strengths, restrictions, prospects, and threats that a business establishment encounters (Hill & Westbrook 2007).

Tesla Motors has managed to establish a strong brand that is built around the perception of high performance, reliability, and luxury. Mangram (2012) confirms that the model demonstrates how technology can be deployed in the development of alternative automobile products with high performance and high safety features. Tesla Motors also possesses incredibly devoted customers. It also has an uncompromising attitude towards its future success in terms of creativity and innovation.

Although Tesla Motors has strengths that can favour the success of its Model S brand, it has some weaknesses. It depends on external suppliers, an unknown brand, and a dynamic new technology for its operations (Mangram 2012). Model S eliminates the use of fossil fuels in the propulsion of automobiles. Apart for the brand is new in the market, implying it is not well known by all potential customers, the new technology poses the challenge of uncertainties associated with negative preconceptions about the performance of the electric vehicle in comparison with the oil or gas engines.

Opportunities include the existing external chances, which while utilised well, can make an organisation improve its performance (Hill & Westbrook 2007). One of the major opportunities for the success of the Model S encompasses the increasing number of people who are becoming cautious over the degradation of the natural environment due to high green gas emissions that are associated with the rising number of automobiles. With already developed superior features, Model S has the opportunity for unstoppable growth when fully electric car market bursts. Tesla has a capability of breaking loose any negative notions and preconceptions about electric cars. Indeed, hybrid varieties and various other eco-friendly vehicles currently in the market have performance compromises.

Incumbent automobile makers pose a significant threat to Tesla Motors. They have a well-established and protected brand, which may enable them secure higher sales even if they may resort to the production of inferior fully electric vehicles. Motavalli (2013) reveals that Audi, Volkswagen, Lexus, and BMW among other automakers are in their advanced stages of developing fully electric cars. Tesla Motors also suffers from the twin problem of introducing a new company and a new product in the market.

Competitor Analysis

Industry environment is a risk to an organisation in terms of threats of new entrants, supplier and buyer bargaining powers, industry rivalry, and threats posed by substitutes. Tesla experiences high bargaining power from its competitors, as it does not purchase commodity type of goods. It depends on suppliers who are derived from different places and in different areas of specialisation to ensure sustained manufacturing processes.

Mark (2013) informs that more than 33 suppliers did business with Tesla Motors to facilitate the production of Model S in 2013. This move suggests that in case of failure of the organisation to pay a specific amount of money as demanded by a given supplier, the entire production process becomes halted. This situation disadvantages Tesla Motors since its suppliers can set their prices at higher levels without considering the unwillingness of the organisation to pay.

Buyers possess a low bargaining power. Tesla positions its Model S brand as a luxurious and high-performance product. High cost technology that is involved in its production drives the prices of Model S higher compared to gas and oil cars that have equal carriage capacity. The market demand influences the organisations market price due to the lower number of competitors who offer products with similar performance, technology, and luxury characteristics (Ashtiani, Cullen, Davis, Greenwald, Hardigan, Eladio, & Zimmerman 2011).

High costs that are involved in setting an electric car production system imply that Tesla Motors experiences low threats of new entrants. The demanding technology in the production makes capital requirements prohibitive to small-scale automakers. The market target segment for Model S customers encompasses people who are looking for luxurious products. Such people consider quality and performance essential attributes of product before arriving at purchasing decisions (Farris, Neil & Pfeifer 2010; Freshwater, Sherwood & Drury 2006). This observation highlights the significance of good reputation as a major component in branding luxury products. New entrants lack reputation. Hence, they suffer from incapacity to outdo those with already well-established customer loyalties.

While the industry loyalty for Tesla Motors is high, threats posed by substitute products are low. Tesla Motors constitutes the only automobile maker that specialises in the production of zero green gas emission cars (Mangram 2012). This case implies that eco-friendly customers who also love sports vehicles have Model S as the only option. However, even though Tesla Motors is the only organisation that is currently producing EV Model, several other well-established automakers are focusing their attention on research and designs of EVs in the effort to have a share of the market in the future as trend in the adoption of the model continues to pick. Appendix 3 illustrates the extent of rivalry in the electric car industry.

Overview of the selected Brand

Upon considering that Tesla Motors is the only organisation that produces fully electric vehicles and electric power trains, it has good opportunities for building its reputation to establish significant customer loyalties. This success depends on the ability of the organisation to establish effective marketing communication strategies. Unfortunately, Tesla had no budget for its marketing, although it had attained revenue growth of above 75 percent by 2010-2011 fiscal year and 102 percent in the 2011-2012 fiscal year amounting to $ 413m (Karamitsios 2013). Incorporating brand communication strategies can help in pushing Model S into the market.

However, without specific marketing communication budget, Tesla Motors attempts branding itself as Apple automaker akin to its use of technology in production (Mangram 2012). Upon considering that it is a new brand, it needs building a strong brand identity. Taking the benchmark of Apple Company is perhaps an important starting point.

However, creation of consumer awareness about the brand remains significant for increased performance. This strategy needs to be accompanied by the production of more innovative products. Through budgetary allocations to initiate brand communication over new and traditional media, Tesla Motors can increase its brand identity across the globe. Perhaps, this step is the biggest strategic marketing opportunity available to the organisation.

Strategic Marketing Opportunities

In its marketing initiatives, Tesla Motors needs to consider creating strategies for managing customer relationships. Keeping potential clients up to date with information is among many methods of maintaining positive relationships with customers (Hill & Ettenson 2005; Holt & Quelch 2009).Tesla Motors needs to update its customers constantly with new features for Model S so that they can update their vehicles over the air.

Such an attempt calls for commitment of financial resources in communication. Although the strategy increases the cost of running Tesla Motors, it is justifiable in the context of Fornells (2002) assertion, marketers are quick to recognise that the value of the customer asset is the sum of the discounted net contribution margins of the customer over time (p.11). The claim here is that attempting to build customer relationships comes at a cost, which Tesla Motors must be willing to incur, notwithstanding its past loss experiences.

Customers not only buy a product, but also pay for the brand image. According to Keller (1998), brand image is a perception of customers when they see a brand reflected by brand associations in their mind (p.27). These associations are multidimensional. They contain a myriad of attitudes or dimensions, which are emotionally instigated in relation to customer perceptions on brand quality and the degree to which the brand satisfies customer needs (Zineldin 2000; Fields 2010, p.14). In case of Tesla Motors, brand image can be enhanced using the power of internet as the main approach for developing and creating awareness of the brand.

In the effort to create alertness of the existence of an organisation, social media is incredibly helpful. Such a strategy for building positive brand image is opposed to traditional approaches of brand communication in which organisations mainly focused on controlling what was said about their products and brands by dominating communication channels with carefully planned messaging (Anbu & Mavuso 2012, p.319).

However, in the modern business environment, control of messages is immensely difficult since the ability of customers to access information through online interactions has become incredibly sophisticated (Kotler, Adam, Denise & Armstrong 2009). This sophistication entails online communication through B2B (business to customer) platforms. Therefore, Tesla Motors needs to the deploying latest developments in web 2.0 applications in enhancing communication to its market segment both cheaply and effectively.

Quantification of Marketing Objectives

The objective of engaging in both traditional media and online communication for the Models S is to achieve a sales target of 35, 000 units over 2014-2015 fiscal year. This sales level is achievable upon considering that the company receives more than 1 million people who visit its stalls in 2013, with 25 percent of them testing Model S (Karamitsios 2013). This observation suggests that with increased promotion of the product, it is possible to increase the number of people who visit the stall either physically or through online platform, later making purchasing decisions.

Tesla Motors can currently produce 20, 000 cars at 20 percent capacity utilisation (Karamitsios 2013; Roth 2008; Saxena 2012; Rust, Zeithaml & Lemon 2004). This observation implies that initiating a marketing communication plan for marketing 35, 000 cars annually is achievable within the range of the available resources. Indeed, increasing production potential can help the organisation take the advantage of economies of scale to lower costs, which in turn increase its profitability levels.

The overall objectives of the marketing communications plan are increasing sales, enhancing Tesla Motors brand awareness, and/or driving potential consumers to access the organisations online communication platforms. Sales target of 35,000 units per year is feasible upon consideration of the past sales level of the organisation. Tesla (2013) data indicates that when customers receive their ordered car, the organisation acquires 3 more reservations from each customer. In this extent, verbal communication has proved that communication can aid in boosting the sales levels of Tesla Motors.

Financial Analysis

To achieve the objectives of the marketing communications plan, $45M is required. The organisation has a financial resource to funds such as the marketing communications initiative. In 2013, it sold 20,000 units at $75,000 (Karamitsios 2013). This figure translates to $1500. The market communications budget will only cost 3% of the total sales in 2013. From the paradigm of cost benefit analysis, commitment of these resources is a viable decision upon considering that it will yield an increase of 15, 000 automobile sales in 2014-2015 fiscal year.

Selling the vehicles at $75,000, Tesla will make sales amounting to $2625M. Therefore, at end of the fiscal year, a $45M communication budget will represent only 1.7% of the total sales. This finding shows long-term gain in investing in communication to drive the sales potentials for the organisation until it produces at full capacity. Table 1 below summarises the financial requirements for implementation of the marketing communication plan.

Budget for the Proposed Marketing Communication Plan

Appendices

References

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Summary

Bershka was established in 1998 in Spain and focuses on fashion and designs of clothing manufacturing. The company started its operations in 2000 when it recorded an increased demand for its fashion products from Spanish citizens (About us, 2022). Up to now, the firm has opened thousands of its stores in more than 70 countries globally. In addition, it reports more than 9% of its annual revenues from its various distribution channels across the countries it diversified its operations (About us, 2022). It states that Bershka is an actively growing retail company that needs to search for expansion opportunities.

The business uses optimizing modes to promote flexibility in the fashion industry by inventing the latest trends. The firms creative team enables it to inspire trends consciously and targets the young generation in its countries of operation for the available fashions in the market (Sharma et al., 2022). Due to its keen focus on the youth, Bershka aims to introduce its products in the Canadian market since there are over nine million youths between the ages of 15 and 34 (Moose, 2022). The high youth population in Canada, about a quarter of the total population, is the best-fit customer base for the company when it desires to diversify in the global market.

Besides, Canada is well familiar, being a country with the largest apparel market; therefore, internationalizing the products and services of Bershka company is the most logical idea for its growth (Smith, 2022). One of Bershkas significant strategic plans is waste reduction by increasing organic fiber usage (Yuan et al., 2022). Hence, the Canadian culture, which promotes the use of fiber due to their individualism, is the favorite market for the business to expand its services into this market.

The Canadian government encourages youths to be self-reliant, and this culture, therefore, embraces innovative ideas that can make the best market for Bershka products. The current Canadian demand has increased the usage of second-hand clothing, which is bought two times faster than in previous generations. Hence, the purchasing power of the youth is a crucial strength in the Canadian market, and Bershka can use this opportunity in the market (Vulture, 2022). However, the key challenge faced in the new market was the sales surge during the COVID-19 period between 2020 and 2022.

Any company planning to internationalize its operations must consider all the effects of the pandemic on business operations. There are common similarities between the Spanish and Canadian markets due to the common values of the millennials (Till, 2019). Hence, Bershka may not experience challenges when introducing its products in Canada due to the same market policies and minimal barriers in the new country (María et al.,2023). Therefore, this report examines the impact of social and cultural factors in Canada on consumer behavior towards Bershka products and also evaluates the strategic implications on the marketing mix. In addition, there is the presentation of various international market entry strategy options available to Bershka as it seeks to expand to culturally different destinations.

International Customer Behaviour

Cultural And Social Factors on Consumer Behaviour

Despite significant similarities in the cultural and social perspectives of both Spain and Canada, there are some notable differences in the Canadian market, which makes it unique from other global markets. These factors affect consumer behavior and contribute to the countrys constant purchasing trends in clothing (Panetta et al., 2022). For instance, in Canada, most consumers are cautious and are concerned before purchasing any commodity. The regular surveys indicate that most consumers in Canada are more pessimistic than consumers from other countries.

Canadian consumers are less likely to increase their spending patterns on new products in the market. This aspect is vital when the company evaluates the opportunities for investing in them (Sadasivan et al., 2023). Secondly, Canadian consumers are usually driven by the loyalty programs offered by the sales firm and the quality of its products. Hence, before introducing new products to this market, the business should consider the brand loyalty of their services and products and how reliable they will be to the consumers (Wood, 2022). Therefore, consumers will spend a lot on the products they usually find on the market. This culture should be considered before a firm introduces its products and services to this new market (Kim et al., 2022). Lastly, consumers from Canada care little about the sustainability of the products and services; hence, new businesses are likely to sell in this market.

In Canada, the customers are not concerned about the duration the products have taken in the market, which allows free entry into such a market. Therefore, the promotion of eco-efficient products by Bershka is a model that can easily be aligned with the Canadian fashion industry. Canadian customers are usually concerned with brands that improve the environment and ensure sustainability in environmental conservation, which is evident from the online advertising in this country (Fatih et al., 2022). Hence, while reflecting the new market, Bershka is likely to increase its sales growth to more than $28.5 billion in the next three years of its operations since the inception of this internationalization plan (Saint-Pierre and Gattinger, 2021). The background information justifies the need to internationalize Bershka to Canada.

Relevance Of Maslow on Buying and Distribution Process

According to Maslow, a business must consider the hierarchy of human needs. One of the benefits of understanding the level of needs is to help the business plan and implement marketing ideas that are consistent with the customers needs. Maslows hierarchy of needs is presented in figure 1. When planning to sell in a new market, the company should consider the wants and needs of its target market. In addition, when designing the prices of the products and services and the distribution process, Bershka should consider the needs of Canadian customers.

The company can use various criteria for categorizing its customers for easy distribution through their demographics, geographical locations, and income level. For instance, most Canadian consumers are youths based in urban and semi-urban setups, which can aid in marketing Bershka products in the new market (Theerthaana and Joe, 2022). Understanding Maslows hierarchy of needs helps in easy marketing since a strong relationship exists between market expansion plans and human needs. In addition, critical analysis of the customer base and their needs help the company to understand the patterns and the feasibility of the Canadian market and its impact on the products and services.

The Principles of Standardisation V Adaptation

The standardization principle uses the same product range, pricing technique, and promotional methods. Hence, the rationale behind standardization is the homogeneity of customer needs due to globalization (Hofstede, 2022). This principle focuses on a companys brand competitive advantage and allows for developing strong brands in all markets. In contrast, the adaptation principle considerably changes various product and service aspects (Siqi et al., 2022). These changes aim to meet the consumer needs in the international market as the business considers the cultural and social differences in the new market. This principle has advantages in meeting the consumer differences of both local and foreign markets as ways of achieving levels of customer satisfaction across various markets.

The advantages of standardization enable a global firm to achieve economies of scale and attain competitive advantage in all the markets of entry. Therefore, when Bershka considers the standardization principle over adaptation, it will likely achieve high growth in revenue within short periods due to significant economies of scale and also address the unique needs of its consumers in the new market as it responds quickly to the changes in the new country of its operations.

International Market Entry Strategies

Available International Market Entry Strategies to Bershka

Bershka can use various mechanisms to enter the new market. These strategies are broadly categorized into two groups; exportation and foreign production. The methods of international market entry are shown in figures 2 and 3.

Exporting

Bershka can focus on production in Spain and export it to Canada and other markets in this strategy. This strategy has been traditionally used by most companies located in countries with trade agreements with other countries. Since both Canada and Spain are in the same regional market, it is easy for Bershka to produce in Spain and export to Canada after ensuring the foreign countrys restrictions, regulations, policies, and laws are observed.

The exportation has various advantages, including reduced risks in production since manufacturing is in the home country, allowing learning in new overseas markets. It reduces operating risks in other countries (Prateek et al., 2022). However, as Bershka exports its products, due to a lack of controls and the existence of agents, its products may likely be at risk of entering new markets when policies are changed.

Foreign Production

Apart from exporting its products, Bershka can produce in new markets and apply strategies such as licensing, contracting, joint venturing, EPZ, and ownership to enter new markets. Through licensing, firms agree to permit another company from another country to use its manufacturing and trademark and provide skills for the new market operations (Prateek, Adil, and Kulvinder, 2022). Hence, Bershka can license its activities to other firms in Canada to ensure that the clothing and fashion designs are purchased in the new market.

Besides, the discussed company can use a joint venture, where two or more businesses share ownership and control over their rights and performance. Various firms in the international market have used the joint venture, and Bershka can apply this strategy to ensure that a new market is reached. The third strategy this firm can implement is ownership, which involves committing capital and management effort in the new market and ensuring that the firm owns a 100% stake in the new country of its operations (Secinaro et al., 2022). Ownership is vital since it allows a company to operate entirely with its rights and patents without partnering or sharing the market with its competitors and other companies.

External Environmental Analysis of New Market

The Canadian market has an established political system that favors business operations. Therefore, the political decisions made in Canada usually promote a stable environment for companies to thrive in their businesses since there is a long-term guarantee in the political economy (Lázaro and Ignacio, 2022). In addition, the young liberal governance in Spain is coherent with Canadian ideologies, which quickly enhances the marketing of fashion designs and clothing products by Bershka.

Secondly, Canada has a diverse population and accepts the diversity of cultures and ethnicities. It has a limited skilled workforce, which negatively impacts its economic growth. The culture in Canada is well known for its promotion of second-hand shopping as the way to be helpful in the community, which is favorable to Bershka since it produces clothing and other apparel (Cornelissen, 2021). The following advantage in the Canadian market is the connectivity of the internet to almost all the population.

The consistent use of technology has enabled the rise of e-commerce, and Bershka, a company investing actively in technological advancement, has ensured that it sells its products online. Therefore, the availability of technology in Canada guarantees that the market is favorable to Bershka in its long-term production plans (Justin et al., 2023). Lastly, employees in Canada are protected by laws such as the Canadian Human Rights act (CHRA), which bans discrimination against workers (Canadian Human Rights Commission, 2022). Hence, the labor conditions in Canada improve the success of companies that invest in such markets.

International Marketing Mix for Canada

Considerations Regarding Branding, Communication, Pricing, and Distribution Strategy

Currently, Bershka has over 1006 stores across 71 countries globally. Some of its stores are located in England, and about five are based in London (Bershka, 2022). Therefore, when the company considers internationalizing its products, it should focus on online branding and sales through social media platforms (Prasad and Kumar, 2022). In addition, the company needs to identify densely populated towns in Canada. Besides, the company needs to diversify its products to include more accessories, beauty, and other wear to attract more customers. These products should be based on the trends and quality in the market.

The Canadian market has a mixture of consumers with diverse needs and wants. It is, therefore, essential to consider their needs when designing products for sale. The products should also be affordable and competitive in the growing industry, and the companys target customers are middle- and average-income earners (Ajay, 2019). In conclusion, the standardization of products should assist Bershka in producing goods that match the customers needs and wants in the Canadian market to ensure that the company improves its output in the continuing years of operations.

Reference List

Ajay, K. M. (2019) New perspectives in international consumer behavior research, Journal of Global Marketing, 32, pp. 217-218. Web.

Prasad, A. and Kumar, R. S. (2022) Challenges and opportunities of brand corporate social responsibility classification: A review, new conceptualization and future research agenda, International Journal of Consumer Studies, 46(6), pp. 2071-2103. Web.

About us (2023) Bershka. Web.

Bhawana, B. and Dipanker S. (2022) Migration of skilled professionals across the border: Brain drains or brain gain?, European Management Journal, 69.

Canadian Human Rights Commission. (2022). Canadian human rights. Web.

Cornelissen, L. (2021) Religiosity in Canada and its evolution from 1985 to 2019, Journal of International Marketing. Web.

Fatih, Ç., Mehmet S. Ç., and Mehmet A. K. (2022) Ad avoidance in the digital context: A systematic literature review and research agenda, International Journal of Consumer Studies, 34. Web.

Hofstede, G. (2022) The 6-D model of national culture, Geert Hofstede. Web.

Panetta, I. C, Leo, S., and Foglie, A. D. (2022) The development of digital payments  past, present, and future  from the literature, Journal of International Business and Finance, 8, pp. 101-855. Web.

Justin P., Ibrahim A., Nasser B., and Prakash S. (2023) Digital entrepreneurship research: A systematic review. Journal of Business Research,156, pp. 113-507. Web.

Sharma, K., Aswal, C., and Paul, J. (2022) Factors affecting green purchase behavior: A systematic literature review, Journal of Business Strategy and the Environment, 30(3), pp. 378-400. Web.

Lázaro F., and Ignacio A. F. (2022) Fusing international business and marketing: A bibliometric study. Administrative Sciences, 12(4), pp. 159.

María M. F., Nisreen A., Masaaki K., Justin P., and Mario S., (2023) Is digital transformation threatened? A systematic literature review of the factors influencing firms digital transformation and internationalization, Journal of Business Research, 157, pp. 113-546.

Moose, R., (2022) 21 Canadian fashion industry statistics for 2022, Review Moose. Web.

Kim, J. K., LePine, J. A., Zhang, Z., and Baer, M. D. (2022) Sticking out versus fitting in: A social context perspective of ingratiation and its effect on social exchange quality with supervisors and teammates, Journal of Applied Psychology, 107(1), pp. 95108. Web.

Prateek K., Adil Z., and Kulvinder K. (2022) Social influence in online retail: A review and research agenda, Journal of European Management Journal, 52(2), pp. 26-29. Web.

Prateek K., Duaan M., and Ángel A. (2022) Decoding the trends and the emerging research directions of digital tourism in the last three decades: A bibliometric analysis, SAGE Open, 12(4), pp. 215-824. Web.

Saint-Pierre, D., and Gattinger, M. (2021) Cultural policy: Origins, evolution, and implementation in Canadas provinces and territories. University of Ottawa Press.

Sadasivan, P. S., Sreejesh, S, and Justin, P. (2023) Key account management in B2B marketing: A systematic literature review and research agenda, Journal of Business Research,156, pp. 113-541. Web.

Secinaro, S., Calandra, D., Lanzalonga, F., and Ferraris, A. (2022) Electric vehicles consumer behaviours: Mapping the field and providing a research agenda, Journal of Business Research 150, pp. 399-416. Web.

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Appendices

Toyota has strategically made its way to become the worlds biggest car company. Toyotas grip especially firm grip of the US and world car market came through capitalizing on rivals weaknesses e.g. GM and expansion programs in China and other emerging markets around the world (Maynard and Tabuchi, 2010, p.1). Maynard and Tabuchi describe Toyotas growth as rather rapid (p.1). In 2009s J.D. Power Customer Retention Survey, Toyota lost the top spot to Honda, a position it had held for five years (Ignassia, 2010, p.11). By November 2009, Toyota had announced a massive recall of its vehicles that was even by then the largest ever in the in the automotive industry. The recall did not however end there as the company on January 20, 2010 recalled a further 1.1 million vehicles. The recalls were not only in the US but also in China with similar measures being considered in Europe. This surprise step by a company that has a reputation built on providing high quality vehicles came as a surprise especially on learning that vehicles were recalled because they compromised the safety of their owners. For starters, the recall was mainly due to the companys focus on rapid growth (Maynard and Tabuchi, 2010, p.1).

Toyotas focus on rapid growth somehow came with deterioration in the quality of its vehicles. Some of the models affected as given by Ingrassia include the companys Corolla, Avalon and Camry models (p.2). In the US, once it was learned that the vehicles raised major safety concerns the US department of transportation pushed Toyota into making the recall and rightly so (Maynard and Tabuchi, 2010, p.5). In the US alone, 8 of the models recalled make up more than a half of the companys annual sales (Maynard and Tabuchi, 2010, p.5). Therefore, the company has seriously suffered from these turn of events even the extent of losing its number one position to Honda. So what really prompted this massive recall- the largest ever in the automotive industry- of vehicles?

One of the main reasons is the gas pedals used in the manufacture of the affected vehicles. The fault in the gas pedals is that they stick causing the vehicle to accelerate out of control a situation that is already a cause of death (Ignassia, 2010, p.3). The inbuilt gas pedal mechanism and the materials used to construct it contribute to its sticking. The mechanism is such that it causes reduced tension in the spring of the gas pedal. The reduced tension is what causes the gas pedal to stick. Another reason for this sticking has given by Ignassia is the floor mats used in the recalled vehicles (p.5). The floor mats used in the vehicles- and in particular their sizes- are faulty as they cause a gas pedal grabbing effect that triggers the acceleration (Ignassia, 2010, p.5).

These two reasons can be attributed to one bigger reason. According to Ignassia, as Toyota was expanding it abandoned its culture of never building a new product in a new factory with a new work force (p.6). This approach in making new products for the company was one of its downfalls as it reduced Toyotas quality control variables (Ignassia, 2010, p.6). Clearly, this unlikely compromise in the companys quality standards led to the faulty gas pedals. One of the repairs that Toyota is considering is introducing a spacer in the gas pedal mechanism that will cause an increase in the tension in the spring in order to avoid sticking (Ignassia, 2010, p.4).

References

Ignassia, P. (2010). Toyota: Too big, too fast Wall Street Journal. Web.

Maynard, M. & Tabuchi, H. (2010). Rapid growth has its perils, Toyota learns New York Times. Web.

Branding is an important marketing tool for creating an impression and revealing the companys philosophy, values, mission, and vision of the future. A corporate brand is significant for consumers; at the same time, it also allows creating an internal corporate culture. It is possible to note that during the last few decades that saw the appearance of new technologies and Internet tools for marketing, branding has increased and changed largely (Percy, 2018).

Still, Coca-Cola, a brand with a long history, belongs to the most recognizable ones of today (Gehani, 2016). The purpose of this paper is to assess the recent increase in branding, analyze how Coca-Cola developed its brand equity, and estimate the impact of branding on the companys integrated marketing communications (IMC).

The vast expansion of branding that has occurred during the last several decades is closely connected with Internet innovations. The appearance of social networks, such as Twitter, Facebook, and others has made it possible to attract new customers through using computer-enabled technologies. That is why new companies received a chance to compete successfully with organizations that owned a long story of success. Previously, the brands value was ensured by the organizations stability and its stakeholders, while at the turn of century, market success has become dependent on the positive experience of users and on design.

According to Gehami (2016), customers quickly switched from iconic long-established brands to newly emerging user-centric brands (p. 13). Therefore, nowadays, an increase in branding might be assessed as significantly large; it has occurred due to new technologies.

In spite of the fact that Coca-Cola was founded long before the abovementioned changes, the company has been ahead of its time in the methods used to develop the brand equity. The user-centric strategy and attention to peoples needs has always been employed by the organization to gain clients loyalty and ensure the companys success (Gehami, 2016). It is possible to note that Coca-Cola has sustained its brand leadership for more than a century with its Spencerian scripted logo and distinctive waist-band bottle shape (Gehami, 2016, p. 12). Despite the fact that many people like the drink itself, it is the right marketing policies that helped Coca-Cola to achieve such impressive results.

Examples of companys empathy towards consumers delight might be found at every stage of its development. For instance, Asa Candler, who has registered The Coca-Cola Company worked hard not only on the recipe of the drink but also on its marketing. He organized free distribution of Coca-Cola in pharmacies for his regular customers, exchanging the drink for their addresses and surnames (Gehami, 2016). Besides, Candler sent coupons for one free portion of Coca-Cola to the indicated addresses and established the regular trade with the product (Gehami, 2016). This ensured the beginning of the brands success at the market of the USA which then grew into international recognition. Later, Candlers successors also did their best to maintain the connection with clients.

Speaking about the influence of branding on Coca-Colas IMC, it is positive. Researchers note that IMC include online marketing, advertising, public relation activities, and other tools used for promoting products (Ogden & Ogden, 2014). Coca-Colas branding has made advertising more effective by raising peoples awareness about the soft drink. Besides, it has helped to increase customers trust for the company and demand for the product. In fact, thanks to branding, Coca-Cola might be regarded as one of the symbols of the USA (Gehami, 2016). Hence, branding has contributed to the companys success and has had a positive impact on the organizations IMC.

To sum up, it is important to press the point that developing brand equity and branding have recently seen crucial changes. The main point was shifted from a companys stakeholders to the clients experience. At the moment of its foundation, The Coca-Cola Company was ahead of its time because the organization put the customers needs at the first place and established a connection with them. It helped Coca-Cola to stay one of the leading participants of the USA and international market.

References

Gehani, R. (2016). Corporate brand value shifting from identity to innovation capability: From Coca-Cola to Apple. Journal of Technology Management & Innovation, 11(3), 1120.

Ogden, J. R., & Ogden, D. T. (2014). Integrated marketing communications: Advertising, public relations, and more. Bridgepoint Education.

Percy, L. (2018). Strategic integrated marketing communications (3^rd ed.). Routledge.

Describe how Disney conducts market research and how it helps them with new product launches or expansion into new countries

Disney considers innovation as one of the most important factors in its marketing processes. Consequently, the firm undertakes market research periodically to understand the prevailing market challenges and opportunities. Additionally, market research is also aimed at improving the firms market position within the entertainment industry. Disney has established a network of market research laboratory dubbed Enter Disney Research. The research entails collaborating with various leading academic institutions such as the Swiss Federal Institute of Technology (ETH) and Carnegie Mellon University (CMU). The firms research laboratories are located in Los Angeles, Zurich, Pittsburgh, and Boston.

By conducting market research, the firm gains sufficient market intelligence that enables it to develop products that not only appeal to the target customers but also enhance the firms competitiveness. One of the aspects that the firm focuses on in its market research is technology. The firm evaluates the technological changes occurring in the market about entertainment products to ensure that the new product developed is not outdated. The firm is credited as the pioneer of some technological innovations such as the Circle-Vision 360⁰, Fantasound, and Audio-Animatronics (Smith par. 1).

The firm has a strong market research team that enables the firm to continuously explore various entertainment aspects such as animations, advanced design, robotics, special effects, new business initiatives, and next-generation interactivity (Smith par. 2). This has over the years enabled the firm to take advantage of growth opportunities in the global market. By conducting market research, the firm can identify new market trends. In summary, market research enables the firm to develop new products that appeal to the international market taste and preferences hence attaining growth.

Describe Disneys export pricing and how they adapt products or services for the overseas market

Before entering the international market, marketers need to develop a comprehensive understanding of the target customers purchasing power. This will ensure that the price set reflects both the customers and the marketers value. The entertainment industry has over the past decades become very competitive. As a result, the firm has incorporated internationalization as one of its strategies. The firm has ventured into several foreign countries to maximize the shareholders wealth and level of profitability. In its international market; the firm has adopted a differential pricing strategy. The firm achieves this by exploiting price differences prevailing across countries (Kelleher par. 2). Before setting the price of its products and services in the international market, the firm undertakes comprehensive market research. The research is aimed at determining the prevailing price differentials amongst competitors in the host country.

Additionally, the firm also uses a penetration pricing strategy in the international market. The decision to use a penetration pricing strategy is motivated by the need to promote the effectiveness with which the firm gains adequate market share in the foreign market. Some of the markets that the firm enters are characterized by intense competition. Therefore, the firm experiences price wars. However, by adopting a penetration pricing strategy, the firm has been able to develop customer loyalty. Moreover, penetration pricing strategy enables the firm to competitively position its products.

The incorporation of differential and penetration pricing strategies has significantly promoted the effectiveness with which the firm adapts its products and services in the international market. For example, differential pricing has enabled customers in less developed economies to derive high value from the various entertainment products provided by Disney.

Describe Disneys international communications efforts and how they help the company grow

To maximize profitability, Disney has ventured into the international market by establishing outlets in various parts of the world such as China and Tokyo amongst others. The firms management team is cognizant of the fact that creating adequate market awareness is the first step in generating sales. Consequently, Disney has incorporated an effective marketing communication strategy. The firm has achieved this by adopting Integrated Marketing Communication [IMC]. The firm uses various marketing communication methods which include advertising, public relations, and sales promotion (Darr par. 5)

In its advertising strategy, the firm has integrated both traditional and emerging marketing communication mediums. Some of the traditional mediums that the firm uses include radio, television, print media, direct mail, and print media such as entertainment magazines. The firm has also integrated social media into its advertising strategy. Some of the social mediums that the firm uses include Facebook, MySpace, YouTube, and Twitter. These mediums have enabled the firm to reach a large number of customers hence improving the effectiveness with which the firm maximizes its profit. Moreover, integrating social media in its external communication has enabled the firm to develop an online community that is loyal to the firm and its products. Concerning sales promotion, the firm occasionally offers price discounts to customers who purchase its products at a specific period.

Integrated Marketing Communication strategy has played a significant role in Disneys global market growth. For example, IMC has contributed towards the growth in the firms brand value. Additionally, adopting the IMC strategy has enabled the firm to remain transparent to its customers. Consequently, the firm has been able to dominate the entertainment industry (Darr par. 5).

Describe Disneys international product management and branding strategies

Effective product management is one of the essential components in a firms effort to develop and sustain its competitiveness. In the course of its operation, Disney is committed to developing its products and brand within the international market. To achieve this, the firm has integrated the concept of product extension. The decision to adopt this strategy has been motivated by the need to meet diverse customer needs. According to Hitt (par. 4), one of the challenges that the firm experiences in product management is that childrens brands are relatively limited concerning the target demographic. This limits the size of the product portfolio that a firm can develop. However, Disney has managed to diversify its products. One of the factors that have stimulated the firms effectiveness in managing its products is the adoption of horizontal and vertical product expansion strategies.

About branding strategy, Disney has adopted the globalization strategy. This is attained by ensuring that its products are marketed under the same brand name in the international market. The firm uses Mickey Mouse as its popular character to promote its brand globally. The firm has also incorporated the concept of extension in its branding strategy. For example, Walt Disney Motion Picture Group functions as an independent brand with various brand extensions such as Pixar Animations Studios, Walt Disney Pictures, and Television and Marimax Films. The incorporation of product extension has significantly contributed to the firms effectiveness in marketing its products in the international market. This arises from the fact that customers can access a wide range of product categories by their needs. On the other hand, brand extension strategies have enabled the firm to maximize its profits by providing customers with a wide range of brands to select from.

Describe Disneys pricing strategy overseas and how they promote their product or services

Price is one of the most important factors that consumers take into account in their purchasing process. Thus, firms management teams need to ensure that the price of their products and services are effectively set. Disney has adopted a combination of pricing strategies in determining the price of its products and services. The strategies adopted include premium pricing, volume pricing, and psychological pricing. The firm redesigned its pricing strategy to influence customers to stay for a long duration within its theme parks and restaurants. About premium pricing, the firm appreciates the fact that low prices may be an indication of poor quality. Consequently, the firm has integrated a premium pricing strategy. The strategy has enabled the firm to effectively communicate the value of its products to its target customers.

The firm uses volume pricing to appreciate the volume purchased by customers and the number of days that customers stay within its resort. The higher the volume purchased, the lower the customer pays. In 2011, the firm integrated premium pricing in its volume pricing. Currently, the firm has integrated several ticket options which include 5, 6, and 7-day passes. For example, a 1-day pass in the firms theme park is charged $75. However, the price reduces drastically after 3 days (Garcia par.1).

By incorporating such price differentials, the firm can maximize its profitability. The firm uses psychological pricing strategy to appeal to customers emotions in their decision-making process. Moreover, integrating various pricing strategies has significantly promoted the firms perceived image amongst its customers. In summary, the pricing strategies adopted by the firm have played a fundamental role in promoting its products and services in the international market.

Works Cited

Darr, Mandy. Communication strategies and the Walt Disney Company. 2011. Web.

Garcia, Jason. Disney pricing strategy: seeking more profits out of long term visitors. 2011. Web.

Hitt, Jaimelynn. How Disney uses branding. 2009. Web.

Kelleher, Suzzanne. Disney World on the cheap: less money, more mouse. 2012. Web.

Smith, Sarah. D23s how we do it: Disney research. 2012. Web.

Hyundai was recognized as one of the top spot terms based on corporate brand loyalty amongst American potential customers within automotive industry. Hyundai has improved over the years, migrating from cheap brand with cheaper quality to one of the most recognized loyalty based brand. Hyundais Kia brand appeared as one of top individual brand loyalty within America. The change in brand took fairly longer time than expected to catch up with corporate auto brands, hence competing favorably with top brands such as General Motors and Ford. The company focused on good quality and pricing techniques which contributed great deal on its brand quality. Such strategy assisted Hyundai in differentiating itself from other competitive car brands within the market. Such brand promise communicated adequately companys belief system in providing quality products at affordable prices. Their concept of 10-year, 10,000 mile warranty proved the companys seriousness in acquiring big percentage of the market share, since it attracted new buyers as well as encouraging repeat purchases (Kotler and Keller, 2007).

The company based their marketing strategy on the fact that consumers change taste with time. This made Hyundai to improve on their innovative capabilities for the purposes of creating new car designs and at the same time utilizing appropriate marketing communication mix strategies such as sales promotions. Such strategy encouraged advertisement focusing on hyping of new kind of return policy making consumers to talk and buy much of Hyundai brands. Advertisements promoted Hyundai by convincing consumers on the quality of the product and terms of purchase which guaranteed no loss on the side of customers (Kotler and Keller, 2007).

Discussion on influence of Hyundais value-pricing strategy in consumer decision

Value-pricing create significant value on car brands within automotive industry. Consumers are always ready to pay higher prices for identical luxury vehicles in the market. Brands are crucial factor amongst consumers when it comes to buying habits. Despite growing interest in their new brand image, customers still had slight negative attitude based on poor understanding of the brand. Such a case can be attributed to the fact that consumers usually have deep insight when it comes to differentiation of various car brands. They evaluate the brand based on earned reputation for cars excellence compared to total cost.

Significant quality, attractiveness, low cost of ownership and warranty coverage appeals to consumers. Resulting value proposition increased Hyundai brands unit volume as well changing consumer perception concerning the brands. Due to such value-pricing strategy, consumers acknowledged Hyundai brand personality, cost of ownership which contributed towards driving consumer shopping behavior towards Hyundai products. Prices offered affected near-term demand since sales jumped from a low of 90,200 vehicles in 1998 to 467,000 in the year 2007. Despite the sales, first timers wishing to own cars declare their lack of interest in owning Hyundai car owing to its product cycles. In consumers minds, Hyundai brand represent combination of product excellence as well as cost ownership which overrides other competitors making them trade-off curve. Accumulated product experience shaped consumer perceptions towards the brand, this was done through direct product experiences such as safety ratings and product reviews.

Discussion of other factors driving consumer decisions and satisfaction

Brand positioning and development play an important role within the automotive business strategies. Brand reputation should exceed demonstrated product attributes. Contrary to other consumer goods, automotive brand perceptions usually change based on consistent as well as sustained changes within companys product portfolio. Basically, relative performances of Hyundai products are based on excellence and cost. For increase in sales to be realized, Hyundai should include additional insights concerning brand differentiation. They should include the aspect of luxury and prestige to which majority of consumers focus on since they believe other qualities such as reliability, safety and ride accompanies prestige. At the same time, consumers focus on the size of transaction, duration of ownership cycle and sense of self-worth which all contribute towards level of attraction hence rise in sales.

Emergence of passive interaction devices such as iPod and MP3 players enables easy communication and advertisement between company and consumers. Such devices are used as players of content hence not having human level of understanding. The nature of interactions from the user cannot be easily measured or quantified. On the other hand active interaction devices such as PCs and Mobile phones allows for collection of usage data while making use of the input sensors.

Discussion on Segments

Due to new technology, it is vital to develop sales team capable of reviewing online social networks after every short period during marketing processes within target markets. Basically, such segments as represented the lady in the case study represents self- dependency based on personal interests and desires. New technology has advantages and disadvantages of carrying out the project, achievements and relevance of the managements priorities (Kerin et al, 2011). Concept of geographical segmentation has led to generation of various changes within product portfolio of Hyundai since consumers have different preferential taste depending on region represented. Introduction of computers and mobile phones has helped in reinforcing modernized communication system. There is an agreement that use of computers and use of information technology is capable of enhancing effectiveness of communication in terms of companys operation strategies. The same effectiveness can be utilized in its application within every market segment. Computerization can be the most basic yet efficient process that an organization can demand in their every segment.

Management within any organization is endowed with responsibility of ensuring that segments dealing with new brands are capable of setting clear conditions for schedule and tasks that needs to be achieved. A standard contract for signature is drawn for the purposes of allowing contract consider all obligations. Such project allows existence of good marketing strategy depending on appropriate processes, goals and alleged schedules used in project implementation. The lessons learned from technological innovations should be stored to ensure that clients are comfortable. Establishing processes for terminating projects that are not feasible help in achieving objectives and goals of branding based on available market (Grimwade, 2000).

Pros and cons of Hyundais branding strategy

Impact of branding on new and emerging technologies and their applications is evident in Hyundais project portfolio. Differentiation on image branding has capability of taking very sharp and upper dimensions within the market. Use of modern technology in integrated marketing communication mix has been identified to include advances in product differentiation within the market based on unique qualities. Such branding strategy through modern technology can be attributed to increase in the number of customers capable of accessing information from internet as well as new display technologies (Fill, 2005).

Strong car brand assist in creating significant value of Hyundai within the automotive industry. This encourages consumers to pay required prices based on value attached. Superiority of the brand used helped in extending Hyundais fame across every model of their cars. However, perceptions on brand name at times prove not perfect since some brand reputations fall below standards of their own product attributes.

References

Fill, C. (2005). Marketing Communications  Engagement, strategies and practice. Edinburgh Gate: Pearson Education Ltd.

Grimwade, N. (2000). International trade: New patterns of trade, production & Investment. (2nd ed.). New York: Routledge.

Kerin, R, Hartley, S, & Rudelius, W. (2011). Marketing. New York: McGraw-Hill/Irwin

Kotler, P, & Keller, K. (2007). Marketing Management. Upper Saddle River, New Jersey: Pearson

Introduction

In the contemporary world, individuals are surrounded by numerous choices when purchasing this or that product. Since the global market is full of high-quality goods that are manufactured to meet all the needs and preferences of the population, people have to engage in a specific thought process when making a serious decision. Therefore, brands are investing substantial efforts in creating positive associations, advertising their products effectively, and targeting particular layers of society in order to ease consumers choices and benefit the business. It is stated that brand image is the primary driver of brand equity that refers to individuals general perception and feeling about the brand that has an influence on consumer behaviour (Zhang, 2015, p. 58). If consumers develop a correct and positive image in their mind, they are more likely to buy products from this specific enterprise and spread information about its effectiveness or quality. Thus, it is in every businesss interest to encourage the purchasing behaviour of people by associating their products with positive emotions, portraying them in a modern way, and creating an outstanding brand.

On the other hand, the tendency of focusing a considerable amount of attention on developing a unique brand image contributes to the problem of overpricing. People can experience that many brands are starting to increase the cost of their merchandise while keeping the quality on the same level or not advancing the production process at all. As a result, particular brands become overrated, and consumers pay for the image rather than the product. For this reason, the topic regarding the effect of brand image on consumer taste preferences should be researched not just to understand the significance of a striking appearance on the market but also with the purpose of distinguishing the complications that consumers face. While being blinded by compelling descriptions and professionally designed images, individuals need to learn to distinguish fair price-quality balance and overpriced products.

Consequently, there are two specific objectives of the following study. The first is to deepen the readers knowledge about the impact of brand image on customer taste preferences. In other words, the research proposal will discuss how the creation of emotional appeals and positive associations contribute to peoples better view of a particular product and change consumer behaviour. The second goal of the study is to raise awareness among people concerning the tricks of advertisers that have an indirect influence on their choices. The research will teach consumers that while being affected by branding too much, they may favour overrated products and pay more for a smaller value. Thus, the paper will achieve these goals by responding to the following research questions:

1. How does effective branding influence consumers behaviour?
2. Why are people unable to distinguish a quality product from an overrated one?

Overall, the study will examine the relationship between branding and consumer taste preferences. The readers will have a chance to investigate how the first concept, which is an independent variable, impacts the other idea, which is a dependent variable. Hence, the conceptual framework will represent the interdependency between the mentioned variables and prove that a powerful brand development strategy has a direct impact on peoples perceptions about a specific product or business and affects their choices. By providing a literature review on the topic of branding and constructing a research design and methodology, the following proposal will demonstrate the relationship and highlight the issue regarding overrated products being favourable in the eyes of the public.

Literature Review

Brand Image Definition and Development

In order to explore the interrelation of this concept with any other idea, it is crucial to define it and understand its significance and distinguishing features. Kaemingk (2019) defines brand image as a customers perception of an organisation or a business based on its interactions with them. In other words, it is a picture or a narrative constructed in the minds of individuals after being exposed to information about a specific brand. This image can evolve and advance over time and does not necessarily connect to customers purchases and their use of specific products or services (Kaemingk, 2019). The most vital thing is individuals opinions about the business because it influences their future purchases and the ideas they deliver to other people through word-of-mouth communication. Since peoples perception is a foundation of success, companies claim that it is essential to work hard in order to maintain a positive brand image that will be consistent and unique (Kaemingk, 2019). Therefore, businesses spend a considerable amount of time on establishing a brand personality, making the most outstanding designs, writing narratives, and curating brand positioning on the market.

Brand creation is not an easy process that requires managers to ask for additional assistance from marketers who have extensive knowledge of advertising products in an excellent way. The techniques that corporate and personal brand executives use to develop a trademark that will be liked by the population are complicated since they include various elements. The first stage of creating a brand image for any company is clearly defining the brand and what it stands for (So et al., 2017). This practice includes identifying a specific vision, mission, purpose, and values of the brand because every single activity conducted by the business has to match their statements and goals (So et al., 2017). In addition, it is believed that prestige and distinctiveness have a considerable indirect impact on customer brand identification (So et al., 2017). Thus, companies have to put much effort into making the product unique and luxurious so that it matches the needs and preferences of the target audience. In general, in order to receive a successful outcome, businesses go through different stages of brand development and engage educated professionals in the procedure.

The Effect of Brand Image on Consumer Behaviour

As it can be seen, brand image is a fundamental component of any business which differentiates it from the competitors and has a massive influence on the customer. One of the most noticeable impacts of effective brand perceptions is their contribution to establishing a trustful relationship between a specific product and a consumer. As suggested by Islam and Rahman (2016), people are more likely to create stronger emotional bonds with those brands whose image is congruent with the consumers self-concept and whose portrayal is unique (p. 48). Positive brand associations inspire the motivation to love certain products and share the received emotions with the surrounding world (Islam & Rahman, 2016). Furthermore, some researchers on the topic of branding also conclude that when individuals create a bright picture of a brand in their mind, they establish a personal bond with it (Islam & Rahman, 2016). People may attribute products with human characteristics that match their personal values and act according to the symbolic qualities of a brand (Islam & Rahman, 2016). Hence, brand image is powerful in encouraging clients to develop an emotional connection with the business.

Another influence of a positive brand image on consumer behaviour is its ability to encourage customers to buy a product by proving that it should be trusted and is of the highest quality. Lien et al. (2015) discussed that when customers develop favourable associations with the company, they are less likely to feel risks when purchasing any of its products. By helping individuals to recognize their needs and preferences, brand image establishes the best attitude towards the product and its attributes and motivates people to buy it (Lien et al., 2015). For example, research regarding consumption in nostalgic restaurants indicated that restaurant image has a positive impact on consumption intention (Lien et al., 2015, p. 215). A professional portrayal of the processes happening in the business, a satisfactory value, and an established trust make people have a more significant intention to purchase a service or a product (Lien et al., 2015). Therefore, it can be noted that by affecting consumer behaviour brand image plays a critical role in the future effectiveness of sales.

In addition, an effective brand image helps the business to earn a high reputation on the market and influences the choice of customers regarding the purchase of luxury products. As noted by Tekin et al. (2016), brand image is a critical concept in apparel shopping behaviour since it impacts consumers preferences and intentions as well as their willingness to pay a premium price and recommend the brand to others (p. 2). For instance, some businesses are able to create positive associations and receive the status of a luxury brand through effective advertising and representation on the market (Tekin et al., 2016). Therefore, while people shop based on the distinctiveness of a product, its features, unique experience, design, and emotions, they perceive this specific good to be extravagant and do not pay attention to financial expenses associated with it (Tekin et al., 2016). This tendency means that when people develop a constructive brand image in their minds, they become more likely to evaluate it higher and buy it regardless of the price. Consequently, achieving the status of being lavish puts brands into an advantageous position of rising prices without losing their customers.

Brand Image and Overpricing

As it was previously mentioned, a positive brand image allows businesses to shift the attention of customers from the product and its price to the feelings of emotional attachment and luxury. It can be stated that the representation of a good or service in the eyes of consumers is more important than the merchandise itself. For this reason, contemporary managers are concerned with their corporate reputation and image on the market because they build loyalty and trust and make products appear more valuable for individuals which, eventually, makes them pay more (Nathani, 2018). Various researches on the topic of marketing and branding revealed that people are able to pay extra for the brand with a positive reputation but, at the same time, are not ready to spend money on something with similar features but a worse representation (Nathani, 2018). Thus, when customers feel that the brand can be trusted because of its positive appearance on the local and international market, outstanding design strategy, and communication with the clients, they see it as luxurious and pay high prices.

Even though developing a positive and compelling brand image is vital for the establishment of reputation and impacts consumer taste preferences, it is also responsible for the issue of overpricing and peoples inability to understand what they are paying for. When individuals are blinded by professionally designed images and advertisements, they forget to take into consideration the features of the product, its usefulness, and its effectiveness, making it impossible for them to distinguish an overrated product from a high-quality one (Nathani, 2018). Hence, while managers continually learn to advertise their products and apply new techniques to influence peoples choices, they no longer care about the goods themselves and deceive customers who pay high prices for low-quality merchandise. Since there is a lack of literature regarding the mentioned problem, it is essential to research it more and prove the idea that brand image influences customers preferences and makes them unable to distinguish a reasonably priced brand from an overrated trademark.

Research Design and Methodology

Research Design

The proposed study on brand image and its influence on consumer behaviour will apply an explanatory research design. It should primarily be mentioned that this part of the research sets the foundational parameters for the project and establishes a framework for its planning and implementation. Its primary function is to ensure that the evidence collected will effectively address the research questions and provide definite conclusions. Therefore, by using an explanatory research design, the following project will focus on explaining the processes and aspects of the topic in more detail. It will help readers to see the correlation between the variables and understand the issue better. More specifically, the explanatory research design will aim at discovering new insights and discoveries regarding the problem and answering the questions of how brand image influences consumer behaviour and why people are unable to identify good quality and favour overrated products.

Sampling Framework

The proposed study focuses on understanding how individuals preferences are influenced by brand image; therefore, it is necessary to develop a clear sampling framework that will represent the population of the project. The sampling framework should be specific since it is one of the main elements that ensure a specific studys effectiveness and relevance. In the case of the following research, the target audience will include middle-class adults who work and engage in purchasing behaviour. While it is impossible to assemble data from the whole target population, a sampling framework should be created.

The sampling frame for this study will be a complete list of individuals who are eligible to participate in the study. The record will include residents of a particular city who are older than 30 and are a part of the working class with an average income. The framework will include an identifier for every unit and all the needed contact information of the audience. Eventually, the framework will help to select a sample population for the proposed study.

Sampling Technique

One of the purposes of the study is to produce results that will represent the whole population. For this reason, the probability sampling technique will be used. This particular method will help the project to receive satisfactory outcomes that will be able to provide the most reliable information regarding the researched problem. While there are different types of probability sampling, the following project will use the random one. Random sampling is a part of the probability technique that gives every member of the population an equal opportunity to participate in the study. A sample that is chosen randomly aims should be an unbiased representation of the target audience.

The proposed research will choose up to 20 individuals from the sampling frame who will have a chance to take part in the study. In order to conduct this type of sampling, the project will use the random number generator tool, which will select specific individuals from the list. Particular people will then be contacted and informed about the requirements and processes of the study they can choose to participate in.

Measurement Methods

The proposed research is qualitative since it aims at expanding knowledge concerning a certain issue that has not been researched enough; hence, the collected data will not consist of numbers or figures that can be counted. Various methods exist to measure qualitative data which can be used both separately and collectively. The primary method used in qualitative studies is conducting interviews. This approach will give a possibility to meet with individuals participating in the research directly, ask questions, and discuss personal experiences regarding the problem. It is necessary to mention that people will not be required to respond to questions that they will perceive as inappropriate or too personal. In addition, it is essential to keep track of the details by making handwritten notes. These outlines will give a chance to compare the data correctly and make reliable conclusions in the end. Consequently, while being a vital part of the research, data measurement should be conducted with caution and determination.

The Procedure of Data Collection

As has already been mentioned, data for the research will be collected through interviews. First of all, individuals will be provided with an informed consent form which will include all the information regarding the purpose, procedures, and requirements of the study. Once they voluntarily sign the following document, an individual interview, which will be up to 20 minutes in length, will be conducted. During the conversation, participants will be asked questions on the topic of their experience while purchasing particular products. People will have a chance to share their feelings about brands, details they pay attention to while purchasing a product, and their satisfaction with the goods of famous trademarks. Afterwards, information collected during the interviews will be organized and compared to the already existing research on the topic of brand image and its influence on consumer behaviour.

Data Analysis

The last but the most critical part of any research is the process of data analysis. This procedure includes various elements necessary to make conclusions about the received knowledge on a particular topic. Since qualitative data consists of words and stories, the first step towards its analysis is its careful investigation. During this stage, the researcher will be able to get familiar with the material and look for fundamental observations. After that, it is essential to compare the existing literature with new information given by the study participants and identify different patterns and connections which will help to respond to the research questions successfully. Furthermore, it is essential to point out the areas for further research and their significance.

Summary

The research proposal focuses on examining the topic of brand image and its impact on consumer taste preferences. The paper identifies that, in the contemporary world, businesses are putting significant effort into creating the best representation of their brands in the eyes of customers in order to establish a high reputation, increase their sales, and, potentially, raise prices without harming the process. It is proved that when people create positive associations about the brand, they are more likely to perceive it as favourable and establish a personal connection with the products. Nevertheless, brand image contributes to peoples inability to distinguish an excellent price-quality balance from overrated goods. While focusing their attention on designs, product positioning, luxury, and emotions, people forget about the features and pay more for an overpriced product. At the same time, businesses take advantage of this tendency and deceive customers about the quality of their goods. Since the following problem is not researched enough, it is essential to conduct further investigation and respond to the questions of how brand image affects consumer behaviour and why people choose to favour overpriced brands. By conducting qualitative interviews with the representatives of middle-class adults and carefully analysing the information provided by them it will be possible to respond to the research questions and achieve the main objectives of the study, such as expanding the readers knowledge on the topic and raise awareness about the issue of overrated products.

References

Zhang, Y. (2015). The impact of brand image on consumer behavior: A literature review. Open journal of business and management, 3(1), 58-62.

Kaemingk, D. (2019). What is brand image and how do you measure it. Qualtrics.

So, K. K. F., King, C., Hudson, S., & Meng, F. (2017). The missing link in building customer brand identification: The role of brand attractiveness. Tourism Management, 59, 640-651.

Islam, J. U., & Rahman, Z. (2016). Examining the effects of brand love and brand image on customer engagement: An empirical study of fashion apparel brands. Journal of Global Fashion Marketing, 7(1), 45-59.

Lien, C. H., Wen, M. J., Huang, L. C., & Wu, K. L. (2015). Online hotel booking: The effects of brand image, price, trust and value on purchase intentions. Asia Pacific Management Review, 20(4), 210-218.

Tekin, G., Yiltay, S., & Ayaz, E. (2016). The effect of brand image on consumer behaviour: Case study of Louiss Vuitton-Moet Hennessy. International Journal of Academic Value Studies, 2(1), 1-24.

Nathani, K. (2018). How to get your consumers pay more. Entrepreneur.