The Impact Of Brand Equity On Company Performance: Case Study Of Spar Braeside, Harare

Abstract

This research is an investigating of the impact of brand equity on company performance Spar Braeside Retailing Company. Spar retailing is currently facing challenges in strengthening the value of their brand equity. The company performance is deteriorating and efforts to correct the limiting factors are all to no avail hence their competitive advantage in the market has been greatly affected, also competition is intensifying in the industry. The study focuses on examining whether the strengthening of Spar Retailing’s brand equity will improve the company performance. The objectives of the study were to identify the relationship between brand awareness and sales returns, to investigate the relationship between brand loyalty and market growth and to analyze the impact of brand associations on competitive advantage. The research was carried out at Spar Braeside Harare. The research also reviewed literature focusing on three dimensions of brand equity namely brand awareness, brand loyalty and brand associations. The research used the explanatory research design. The target population was 200 and the sample size was 100 which consisted of 90 customers and 10 employees. Interviews and questionnaires were the data collections tools used. The questionnaires were meant for customers and interviews for Spar Retailing employees. From the research it was noted that Spar Retailing Company is not sufficiently investing in the improvement of brand equity. The data collected was presented on tables, graphs, charts. Brand equity has an effect on customer’s purchase decisions and knowing the brand and liking it will yield sales from word of mouth. The research concluded that there is a relationship between brand awareness and sales revenue. Brand Loyalty has an impact on market growth and a positive brand association gives a company a greater competitive advantage. Therefore, Spar Retailing Company was recommended to invest more in promoting its brand awareness, to upgrade its customer relationship management system to enhance loyalty and to form associations that give customers a good perception about the brand. From the research done it is concluded that Spar Retailing Company should strengthen its brand equity in order to enhance its performance.