Introduction
Branding refers to the marketing practice that implies creating a name, symbol, or design that is readily identifiable to customers as belonging to a particular company. The main task is to explore the concept of branding and its utilization in marketing through using the example of H&M, a large clothing retailer.
Importance of Branding
Branding is detrimental for identifying a specific product and distinguishing it from others available in the market (Mindrut, Manolica and Roman, 2015). It helps to deliver a specific message to potential customers, emotionally connect to them, motivate to buy, create user loyalty, and confirm credibility. Branding is expected to change how organisations perceive their brands as well as how popular is a brand among potential clients (GĂŒrhan-Canli, Sarial-Abi and Hayran, 2018).
When a company has established a recognisable brand, it is possible to increase the value of a business by providing the organisation more leverage in the industry (OECD, 2017). For investors, appealing brands represent the potential for investment opportunities because of the firmly establishes position in the market that attracts regular customers. Furthermore, in developing a strategic market plan, brands can help align the latter with the established objectives of a company.
Key Academic Theory and Indicative References
When exploring the branding of H&M, the concepts and theories associated with marketing communications should be applied. The old model of branding, which is based on creating an external (or fictional) image of a brand and marketing it to customers, is no longer relevant (Pennington, 2019).
This has occurred because customers do not want to buy into a manufactured brand image and want to get the truth. Because of this, firms use digital marketing that allows to communicate the message of a brand directly to consumers around the globe. Moreover, as suggested by Ind and Horling (2016), brand responsibility is also easier communicate with the help of digital vehicles to which potential clients have access every day. As society changes, new ways of communication emerge, and brands must adjust to these changed in order to say relevant and explore the various opportunities in marketing (Pedersen, Lonner, Draguns, Tribmble and Scharron-del Rio, 2016).
Justification for the Choice of the Brand
It was chosen to explore the branding of H&M (Hennes & Mauritz), which is a Swedish clothing retailer for fast fashion. As of 2019, the company has stores in 74 countries and is highly popular among consumers (Waller & Waller, 2018). The branding of H&M is simplistic in design; however, its logo is recognisable because of the simplicity (Stewart and Saren, 2014). When encountering the brand, customers are reminded of the clothing company that delivers fashionable products at a reasonable price. While the clothing retail industry is full of different brands, the approach that H&M has taken has shown to be successful for decades.
The approach that H&M has taken in regards to its branding can be explored from the perspective of the brand culture that suggests that brands change in accordance with cultural and societal changes (Pedersen et al., 2016).
Reference List
GĂŒrhan-Canli, Z., Sarial-Abi, G. and Hayran, C. (2018) âConsumers and brands across the globe: research synthesis and new directionsâ, Journal of International Marketing, 26(1), pp. 96-117.
Ind, N. and Horlings, S. (2016) Brands with a conscience: how to build a successful and responsible brand. London: Kogan Page Limited.
Mindrut, S., Manolica, A. and Roman, C. (2015) âBuilding brands identityâ, Procedia Economics and Finance, 20, pp. 393-403.
OECD. (2017) OECD studies on SMEs and entrepreneurship. SME and entrepreneurship policy in Canada. Paris: OECD Publishing.
Pedersen, P., Lonner, W., Draguns, J., Tribmble, J. and Scharron-del Rio, M. (2016) Councelling across cultures. Thosand Oaks: SAGE.
Pennington, R. (2019) The consumer culture theory of brands. Newcastle upon Tyne: Cambridge Scholars Publishing.
Stewart, D. and Saren, M. (2014) The marketing pathfinder: key concepts and cases for marketing strategy and decision making. Hoboken: Wiley.
Waller, D. and Waller, H. (2018) H&M post-Rana Plaza: can fast fashion ever be truly ethical? London: Bloomsbury Publishing.