The role of branding at the national and intenational level in the competitiveness of firms - case study

INTRODUCTION

Branding can create value for a company especially when they reive a positive evaluation from consumers compared to that of other companies. Over the years, business entities have realized that the brand is more than just names and logos. The identity of a brand needs to be based on a unique idea and told through a compelling story. It needs to be connected with potential customers and also form positive emotional bonds among them. The strength of some world known brands enables them to charge a significant price premium. Therefore the brand power is reflected in higher firm valuation.

The main role of branding in the competitiveness of firms is to increase the values of products and services by differentiating them from their competitors, creating a positive mental association and forming emotional relationships with their customers. In the cluster market where other brands are compenting for the attention of customers and to be the first on the market, branding serves as distingushing feature when consumers are searching for products in the same category. The brand must be easily identifiable and recognized among others in the same category of goods or services. In order for a company to be competitive, the brand should be made to play the central role in the marketing strategy of the company. The brand must be the pivot around which all other marketing efforts are rotated. One way to do this is to ensure that a brand provides a promise and explains to the customer what they can expect from the products and services offer. Nowdays, having a strong brand can ensure a company’s long-term succes. Evidence from some top global brands indicates how a company can order a large market share through its strong brand management initiatives. Branding can be a useful offensive tool and defensive tool when the company is compenting with non-local companies. Branding it is very important in the competitiveness of firm because it is a valuable and a major source of competitiveness and the brands increase the inclination of individuals to purchase of a particular brand, that meaning can be priceless.

In this project it was analysed the role of branding at the national and international level in the competitiveness of firms. Regarding the role of branding at the national level in the competitiveness of firms, the brands do not have so many competitors and it easier to identify the factors that influence the consumer behavior and companies can establish competitive advantage.Taking into consideration the role of branding at the international level, it is increasing the number of competitors and also the image of brand it is very important, despite the range of the products that are produced by the competitor companies. In order to be successful on the market the brand should be very well thought using specific marketing strategies for have a good reputation. For case study it is presented the Zara brand as a competitive firm on the market.

The purpose and objectives: The purpose of this project was to study and to analyze the role of brading at the national and international level in the competitiveness of firms and case study.

In order to achieve the purpose given were expected the following objectives:

1. To identify the history approuch of branding and to define the concept of branding;

2. To examine the correlation between business strategy and branding;

3. To indicate the benefits of strong image of branding;

4. To analyze the influence of branding at the national and international level;

5. To identify the role of branding from general point of view;

6. To present the concept of branding as a dominant factor in determining the competitiveness of firms.

7. To identify the role of branding in Moldova regarding the competitiveness of firms;

8. To analyze the case study.

The methodological and theoretical research: In the process of doing this project it was applied scientific methodology: dialectic approach, logistic principles, systemic analysis and synthesis, comparative analysis methods. To achieve the research it was utilized specific sources which were directly linked with the concept of branding. During the study of the branding role it was explored and examinated different researches documents and articles based on brand as a dominant factor in the competitiveness of firms.In order to achieve the research of this subject, it was utilized information collected, processed and systemized from The Academy of Study of Economy of Moldova, National Library of Moldova and different web sites. It was used sources from books, articles from web sites and monographs.

The volume and structure of project.The result of research that laid the foundation of this thesis is divided into three chapters, each chapter consisting of several paragraphs:

Chapter I reflects, especially, the history of branding, the general concept of branding based on ideologies of researches, the correllation between business strategy and branding and benefits of a strong brand image.

Chapter II includes the influence of branding at the national and international level, the role of branding fom general point of view and brand as a dominant factor in determining the competitiveness of firms.

Chapter III includes the role of branding in the Republic of Moldova regarding the competitiveness of firms, The Moldovan brands that promote the national products, the most competitive brands in The Repubic of Moldova. Also in this chapter it is included the case study of Zara brand as a competitive firrm on the market.