A CRITICAL INVESTIGATION ON THE EFFECT OF PRODUCT BRANDING ON SALES PROMOTION IN DANGOTE INDUSTRIES LIMITED IN CAMEROON

CHAPTER ONE

INTRODUCTION

Background of the study 

A brand is a distinguishing mark, name or phrase, word, logo that businesses employ to differentiate their product from that of their competitors. A brand identity can be created by combining one or more of those components. In certain markets, specific brands may thrive while struggling in others. In his work, Smith (2020) provides a description of a brand as the name associated with a product or service. The professor added that a brand upon close inspection represents many more intangible aspects of a product or service: a collection of feelings and perceptions about quality, image, lifestyle and status. According to other researchers, it has been argued that a brand has the ability to establish in the minds of customers and prospects the belief that there is no other product or service available in the market that is quite comparable to yours (Keller, 2018). Simply put, a brand provides the customer with a guarantee and subsequently fulfils it. According to Kotler (2018), it is important to emphasise that branding goes beyond being a mere business buzzword. According to Keller (2018), the notion of brand name has emerged as the focal point of selling in the new economy. The author added that the old marketing mantra was, "Nothing happens until somebody sells something," but the new philosophy could be, "Nothing happens until somebody brands something."

Branding is a significant concern in product strategy, arguably the most notable expertise of professional marketers in their capacity to establish, sustain, generate, and improve brand. Branding is an essential aspect and foundation of marketing. According to the American Marketing Association, a brand is defined as a name, term, sign, symbol, or design, or a combination of these elements, with the purpose of identifying the goods or services of a particular seller or group of sellers and distinguishing them from competitors (Euromonitor International, 2023). Thus, a brand is what identifies the seller or maker. The brand name and trademarks provide legal protection for improving product features that would otherwise be copied by competitors. Furthermore, branding provides the seller with the opportunity to attract a devoted and lucrative group of customers, while also offering some defence against competitors who have more control over their marketing strategies. All these factors lead companies to invest heavily in branding in order to differentiate their products and establish brand recognition. This ultimately influences customers' preferences and leads to successful sales through effective branding strategies.

Consumer behaviour and sales promotion are significantly impacted by product branding. In the current competitive market, a product's differentiation from its competitors can be facilitated by a robust brand. Promotional strategies and outcomes are substantially influenced by effective branding, in addition to enhancing recognition and loyalty (Stephen 2018).

Product branding also plays a significant role in sales promotion, serving as a crucial factor in shaping consumer perceptions and influencing purchasing decisions. The relationship between effective branding and increased sales is a topic that has been extensively researched and documented. Many studies and real-world examples have demonstrated how a strong brand can greatly contribute to the success of promotional activities.

Firstly, branding creates a distinct identity for a product, setting it apart from competitors. The unique identity of a brand is meticulously created by incorporating logos, taglines, colors, and overall design. These elements work together to effectively convey the brand's values and commitment to consumers. When consumers recognize and trust a brand, they are more likely to respond positively to sales promotions. For example, a promotion by a well-established brand such as Apple has the potential to generate significantly more excitement and urgency compared to a similar offer from a lesser-known company. This is because Apple’s brand carries connotations of quality, innovation, and reliability, which makes consumers more inclined to participate in promotions and purchase its products (Ajagbe, 2018).

Furthermore, branding serves to elevate the perceived value of a product. A strong brand can justify higher prices through the perceived benefits it offers, such as superior quality or prestige. This perceived value plays a crucial role during sales promotions. Promotions are frequently regarded as a means to obtain increased value for one's money, and when these promotions are linked to a well-regarded brand, the perceived value is further enhanced. Research indicates that consumers are willing to pay a premium for branded products, even in the absence of promotions, highlighting the significant impact of branding on consumer behaviour (Solomon, 2019).

Moreover, it is worth noting that effective branding plays a crucial role in cultivating customer loyalty, which ultimately contributes to the success of sales promotions. Loyal customers are not only more inclined to engage in promotions but also have a tendency to share positive word-of-mouth, thus enhancing the impact of promotional endeavors. This loyalty is cultivated over time through consistent delivery on the brand's promise and positive customer experiences.

Recent studies have brought attention to the synergistic effect of branding and digital marketing on sales promotions. With the rise of social media and online shopping, brands now have new platforms through which they can engage with their audience and enhance their promotional efforts. Social media enables brands to generate interactive and personalised promotional content that can be quickly distributed to a wide audience. Brands that have effectively utilised these platforms, have observed noteworthy enhancements in engagement and sales (Smith 2020).

Penn (2020) points out that product branding is integral to the success of sales promotions. It is important to note that differentiation of products is a key aspect in the business world. This strategy not only enhances the perceived value of a product, but also fosters customer loyalty. In today's digital age, leveraging digital platforms is crucial for businesses to stay competitive and reach their target audience effectively. Consistent messaging across various channels is essential to maintain a strong brand image. Effective collaborations among team members and stakeholders play a vital role in achieving organisational goals. Brands that make the effort to develop and uphold a robust identity are more apt to carry out effective promotional campaigns, which in turn can lead to increased sales and sustained customer engagement in the long run. As the marketplace continues to evolve, the role of branding in sales promotion will only become more critical, underscoring the need for companies to strategically develop and manage their brand identities hence the need for this study.

 Statement of the problem

Businesses in Cameroon are perpetually confronted with the challenge of distinguishing their products in order to attract and retain consumers in the dynamic and competitive marketplace. In this context, product branding has become an increasingly significant strategic instrument that influences purchasing decisions and shapes consumer perceptions. The precise impact of product branding on sales promotion within the Cameroonian market remains underexplored, despite its potential. It is essential for businesses that are striving to achieve sustainable growth and improve their competitive advantage to comprehend this relationship (Tchouassi, & Ndjana, 2023).

The Cameroonian market offers distinctive opportunities and challenges for promotion. Tailored branding strategies that resonate with distinct segments are required due to the diverse consumer base, which is characterised by a variety of cultural, economic, and social backgrounds. Additionally, the increasing influence of digital media and the prevalence of informal markets further complicate the manner in which brands interact with consumers. These factors necessitate an examination of the manner in which branding initiatives are translated into sales promotions and, consequently, sales performance (Tchouassi, & Ndjana, 2023).

Further, recent studies shows that branding significantly influences consumer behaviour and purchasing decisions, my dear student. As an example, a study conducted by Ngum Ngwa & Nsahlai (2022) emphasises that in Cameroon, brand awareness and perceived brand quality play a crucial role in shaping consumer preferences within the beverage industry. This finding suggests that strong branding can enhance product visibility and credibility, thereby driving sales. Nevertheless, it is imperative to further investigate the degree to which these branding elements have a direct influence on sales promotion activities, including discounts, advertising campaigns, and in-store promotions. It is on this premise that this study will be investigating the effect of product branding on sales promotion in Dangote Industries Limited in Cameroon.

1.3 Objectives of the Study 

The primary objective of this study is to critically investigate the effect of product branding on sales promotion in Dangote Industries Limited in Cameroon. Specifically the study seeks:

To find out whether there is a relationship between product branding and sales promotion in Dangote Industries Limited in Cameroon.

To explore the different branding strategies employed by Dangote Industries Limited in Cameroon.

To analyze the impact of product branding on sales promotion in Dangote Industries Limited in Cameroon.

To identify the challenges faced by Dangote Industries Limited in implementing effective branding strategies.

1.4 Research Questions

The following research questions will be answered in this study:

Is there a relationship between product branding and sales promotion in Dangote Industries Limited in Cameroon?

What are the different branding strategies employed by Dangote Industries Limited in Cameroon?

What are the impact of product branding on sales promotion in Dangote Industries Limited in Cameroon?

What are the challenges faced by Dangote Industries Limited in implementing effective branding strategies?

1.5 Research Hypothesis

The following null hypothesis will validate this study:

Ho1: There is no relationship between product branding and sales promotion in Dangote Industries Limited in Cameroon.

1.6 Significance of the study

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

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

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

1.7 Scope of the study

The study aims to critically investigate the effect of product branding on sales promotion in Dangote Industries Limited in Cameroon. Empirically, this study will assess whether there is a relationship between product branding and sales promotion, the different branding strategies employed by companies in Cameroon, the impact of product branding on sales promotion in Cameroon and the challenges faced by companies in implementing effective branding strategies.

This study will be carried out in Cameroon.

1.8 Limitation of the study

The researchers encountered slight constraints while carrying out the study. The significant constraint was the scanty literature on the subject owing that the effect of product branding on sales promotion in Dangote Industries Limited in Cameroon discourse is vast thus the researcher incurred more financial expenses and much time was required in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size covering only residents of Cameroon. Thus findings of this study cannot be used for generalization for other regions within Cameroon. Additionally, the researcher will simultaneously engage in this study with other academic work will impede maximum devotion to the research. Howbeit, despite the constraint encountered during the research, all factors were downplayed in other to give the best and make the research successful.

1.9 Definition of terms

Product: A product, in the context of marketing, refers to any tangible or intangible offering that is developed and made available to fulfil the wants or requirements of customers. It can be classified as either tangible, such as a physical item, or intangible, such as a service or digital content. Products are meticulously crafted with the intention of delivering utmost value and gratification to the esteemed customer. These products are commonly traded in the marketplace in exchange for monetary compensation or other forms of valuable consideration.

Branding: Branding is a fundamental process in which a distinctive identity is established for a product, service, or organisation. This is achieved through the utilisation of names, terms, designs, symbols, or other distinguishing characteristics. Product branding: Product branding is the process of establishing a distinctive identity and image for a product in the minds of consumers by utilising names, symbols, designs, packaging, and messaging. This fosters consumer recognition and loyalty by distinguishing the product from competitors and establishing a unique presence in the market.

Sales promotion: Sales promotion is a term used to describe a variety of marketing activities and incentives that are specifically created to generate immediate sales or motivate individuals to buy a product or service. These activities are generally of a short-term nature and have the objective of enhancing sales, attracting new customers, or fostering the loyalty of current customers.