Examination of the relationship between brand equity and company performance: Case of Arundel TM Pick N Pay

Abstract

The study sought to examine the relationship of brand equity and business performance of retail companies in Zimbabwe taking a case of TM Pick and Pay Arundel branch. A good and nicely crafted brand is considered as the factor which underpins the success of big multinationals companies (Kotler and Keller, 2014). Brand equity pertains to how the brand is viewed by the customers, which is a form of competitive advantage. The study adopted brand loyalty, brand awareness, brand association and perceived quality as the dimensions of brand equity which, as independent variables have been tested individually against business performance. The objectives of the study, research questions and the conceptual framework were all derived from the relationship between the independent and the dependent variables. The Lovemarks theory was adopted as the theoretical framework of this study. Data was taped through questionnaires from targeted 40 organisations which were customers of the branch together with interviews with senior management of Pick and Pay. Purposive sampling technique was used in the study. The study found that customers for TM Pick and Pay customers were highly aware of the TM Pick n Pay brand while they were loyal to it. It was also found that the customers rated TM Pick n Pay as a high quality brand which also sold high quality products. The association of the brand with Pick and Pay South Africa, Miekles and TM supermarkets helped in enhancing the equity of the brand. The study concluded that almost all of the respondents were firm loyal customers of the branch who rated their level of loyalty between 4 and 5. The customers were also very aware of what the brand offered, that the brand delivered quality and that the other associated brands like Pick and Pay South Africa, TM supermarkets and Miekles were special brands targeting the up market. The study concluded that brand equity and all its dimensions namely brand loyalty, brand awareness, brand association and perceived quality for TM Pick and Pay Arundel branch was positively and significantly influential to both financial and non-financial performance measures like market share, customer satisfaction and profitability.