Identifying the Factors Impacting the Choice of Corporate Brand Strategy in the Food Industry Using Grounded Theory

Document Type : مقاله مستخرج از رساله دکتری

Authors

1 Ph.D. Candidate of Business Management, Faculty of business and management, Islamic Azad University, Qazvin, Iran.

2 Associate Professor (corresponding author), Department of Marketing Management, Shahid Sattari Aeronautical University of Science and Technology, Tehran, Iran.

3 Associate Professor, Department of Marketing Management, Shahid Sattari Aeronautical University of Science and Technology, Tehran, Iran.

Abstract

Aim and Introduction: One of the key factors in enhancing brand equity is selecting the appropriate branding strategy. Since the mid-1990s, there has been a notable increase in the adoption of corporate brand strategies by researchers and managers. The significance of corporate brand strategy for the success of products, particularly in the food industry, continues to grow. Corporate brand strategy is a comprehensive approach to brand management that companies employ to establish a distinctive identity. Rapid changes, increasingly complex markets, intensified competition, the swift copying and transfer of production technologies, and declining brand loyalty—characteristics of today’s marketplace—have prompted companies to leverage corporate branding as a strategic marketing tool. In a corporate brand strategy, the company utilizes its name across all its products. This qualitative research aims to identify the factors that influence the choice of corporate brand strategy within the food industry.
This research aims to understand the factors influencing the selection of corporate brand strategies based on qualitative principles. The study focuses on the food industry, which holds significant importance in household shopping. This sector is recognized as one of the most vital and strategic industries in the economy, characterized by substantial financial turnover. Furthermore, the food industry in our country has reached a level of maturity that positions it closer to foreign competitors compared to other sectors. Consequently, understanding the strengths, opportunities, weaknesses, and threats within this industry can guide the country toward a more promising future in this sector.
Methodology: This research is applied in purpose and qualitative in method. It employs the grounded theory research strategy for data collection and analysis. Grounded theory is a qualitative research method developed through the use of a specific set of data. The lack of comprehensive theoretical literature and research background in the field of corporate brand strategy is the primary reason for utilizing grounded theory as the foundation of this study. The statistical population for this research consists of university and industry elites, including university professors, senior managers, marketing managers from food manufacturing companies, officials, and chain store owners. To collect data, semi-structured interviews were conducted with experts in the marketing and sales sectors of the food industry, selected through purposive sampling. Data were gathered through interviews with 15 academic elites and senior managers from well-known companies in the food industry, with sampling continuing until theoretical saturation was achieved. The interview protocol comprised five main questions. After each interview, all audio recordings were transcribed. Subsequently, data analysis and coding were performed based on the principles of grounded theory, following three stages: open coding, axial coding, and selective coding.
Findings: In this research, based on the interviews conducted, the factors influencing the choice of corporate brand strategy in the food industry include the following: psychological characteristics of consumers, consumer perception of the corporate brand, ease of using the corporate brand, costs associated with using the corporate brand, attention to product features, and the impact of the product on the corporate brand. Additionally, after analyzing the interviews, the following factors were identified as influencing the choice of corporate brand strategy: consumer demand, consumer risk tolerance, customer sentiment towards the brand, awareness of the corporate brand, loyalty to the corporate brand, perceived quality of the corporate brand, interest in the corporate brand, corporate brand credibility, trust in the corporate brand, corporate brand reputation, perceived value of the corporate brand, facilitation of the consumer's purchase intention towards the product, reduction of consumer risk, minimization of time and cost in product selection, facilitation of product acceptance by sellers, utilization of existing distribution channels, reliance on previous information sources when purchasing a new product, perceived compatibility of the new product with the company's nature, leveraging corporate brand nostalgia for long-time consumers, the risk of undermining the original brand, extension of the new product's functionality to other products, and enhancement of the corporate brand's equity value.
Discussion and Conclusion: Companies must pay attention to various factors and consider the psychological characteristics of consumers when selecting the appropriate strategy for offering products. Individuals who are risk-takers and those with a strong sense of innovativeness behave differently from other buyers. The quality of a company's brand is a fundamental element in shaping consumers' perceptions of its products. Therefore, companies should take into account both the quality of their offerings and consumers' perceptions of their corporate brand when implementing a corporate branding strategy for other products. Factors such as quality, trust, reputation, interest, and loyalty associated with the corporate brand significantly influence consumers' attitudes toward the brand and the marketing of other products through this strategy. If customers perceive the newly created brands as extensions of the corporate brand, they are more likely to reconsider purchases from a familiar and trusted brand. Utilizing a corporate branding strategy can reduce the costs associated with introducing and marketing products. Additionally, leveraging an existing distribution network can lower distribution costs and facilitate product acceptance among retailers. The compatibility of products with the company's identity is another crucial factor in selecting the right branding strategy. When there is alignment between the products and the company's identity, it fosters the transfer of positive associations and the unique value of the corporate brand to other products, thereby convincing consumers that the company specializes in producing high-quality offerings.

Keywords

References

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Commercial Strategies
Volume 20, Issue 21
September 2023
Pages 135-154

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