Corporate image and product brand identity mix: A study of Fast-Moving Consumer Goods sector of Bangladesh

Abstract

The research addresses the ideas of brand and corporate image influencing factors for FMCG brand companies of Bangladesh. A brand is a collection of benefits that a customer possesses at the time of purchasing a set of values from the buyer, be it tangible or intangible. As the brands are the identification of products, they have emotional and functional values as well. Branding has evolved as a management preference in the contemporary tenure because of the realization that brand is the most valuable asset that a firm can possess. For service sector or industrial sector, corporate image is a prime factor, whereas for FMCG sector, product branding is highly significant. These days, the concept of corporate image has gained a remarkable consideration in academic arena and business world as well. Corporate image is the way the people perceive the company. Alternatively, corporate image is the combination of perceptions about any organization by its external images and internal images. Fast-Moving Consumer Goods (FMCG) are the products that are sold rapidly and at comparatively lower cost. Examples of such FMCGs include packaged foods, beverages, toiletries, over-the-counter drugs and similar consumables. Factors influencing the corporate image and models of corporate image creation are noticed insufficient for FMCG companies in the context of Bangladesh. Besides this, the contemporary studies gave conflicting or inconclusive results. Hence, reaching a valid conclusion remains an elusive goal. Here, four types of research gaps were found in this study. Firstly, theoretical gap: limited literature is found in the context of Bangladesh. Secondly, contextual gap: sufficient study is not found in the FMCG band sector of Bangladesh. Thirdly, methodological gap: Structural Equation Modeling for model building and content analysis by NVivo are observed inadequate in case of FMCG sector of Bangladesh. Fourthly, empirical gap: inconsistent and inconclusive results have been prevailing of FMCG brand sector in Bangladesh. Certainly, study identifies the gap between the current problem state and desired goal, which is significantly prevailing for consumer goods in this context. The primary purpose of this thesis is to describe the corporate image and product brand identity mix for FMCG sector of Bangladesh. Carrying on this purpose, it is required to find out the factors influencing corporate image of FMCG sectors of Bangladesh and to address other FMCG brands related insights. The broad objective of this research is to identify corporate image and product brand identity mix of FMCG sector of Bangladesh. And consequently, specific objectives are to find out the scenario of FMCG companies and its branding in Bangladesh, to explore the relationship of corporate image and product brand for FMCG companies of Bangladesh, to find out the factors influencing corporate image of FMCG sectors of Bangladesh, and to develop a model for creating corporate image of FMCG sectors of Bangladesh. For the first two objectives, explorative research design is considered, and also these two objectives are qualitative method. Second two objectives are descriptive research design oriented, and for these two objectives, quantitative method is taken into account. Overall, exploratory sequential mixed method is applied. Certainly, a sound alignment is created among four specific research problems, four specific research questions, four specific research objectives and hypotheses. For the case of hypothesis, firstly assumptions are prepared, then propositions are formulated and finally hypotheses are prepared. Among these hypotheses, seven hypotheses are causal and another seven hypotheses are correlational in nature. From the literature review and personal observation, we have derived several variables or questions that may describe the actual corporate image under different factors. Our hypotheses are about to assess these questions or variables that, how much they can describe or relate the factors and the corporate image. By conducting factor analysis with these data or variables we evaluated the influences or effects of the undertaken factors on corporate image and evaluated our proposed structural equation model to meet our research objectives. Different types of scopes are undertaken. Within the theoretical ix scope, corporate image and FMCG brands are considered. In case of geographical scope, consumers and FMCG companies in Bangladesh are selected. For organizational scope, national and multinational consumer goods companies are accepted. And for the case of respondent scope, consumers of FMCG brand and FMCG corporate practitioners are included. Thoroughly literature review was conducted on corporate image and product brand identity related aspects. After rigorous literature review, it was identified forty-two elements under seven factors. Based on these factors and elements, a conceptual framework was developed. And considering the theories of different scholars, a theoretical framework has also been prepared. Then, similarity and common points are noted down among conceptual framework, theoretical framework and proposed mathematical model. Since here, mixed research method is applied, both theoretical and conceptual frameworks were developed for this study. Moreover, it should be mentioned that considering these forty-two elements, forty-two Likert scale questions were developed and survey was conducted as well. Under research design, both descriptive research and explorative are applied. And, for the descriptive case, non-probability convenience and for the explorative case, probability random sampling techniques were used. Under the descriptive research, the total survey was conducted upon 500 respondents from eight divisions of Bangladesh. And, samples were selected according to the population density of different divisions. After conducting questionnaire survey, data were inputted to SPSS and AMOS. For this descriptive survey, SPSS software and AMOS software were used for data analysis. Certainly, under the corporate professionals’ structured questionnaire, a survey was carried out upon 100 respondents from national and multi-national FMCG companies. The transcriptions of these in-depth interview were analyzed by a qualitative software named as NVivo. And for the structured questionnaire, that is for quantitative data of corporate practitioners was analyzed by SMART PLS software. That is two types of SEM are used. For Covariance-based SEM, AMOS software is used and for Partial least squares PLS SEM, Smart PLS software is used. In-dept interviews have been taken from 10 multinational and 10 national FMCG brand companies. Qualitative data were collected through tape recorder as part of in-dept interview from corporate practitioners. After that, transcripts of in-depth interview were written and then transcripts were analyzed by NVivo. And for the case of quantitative data, these were collected from general respondents who are using or eating FMCG brands. Data were collected based on convenience from eight division of Bangladesh. Then these data were analyzed by AMOS software. Afterwards, qualitative and quantitative data were integrated for getting mixed research facts. In this study, research philosophy is pragmatism, research perspective is objective and subjective both, research approach is abductive, and research method is applied research. Firstly, the pilot study was done to check the questionnaire instrument. Here, pilot study’s report is acceptable as Cronbach’s alphas’ value was 0.7 (Sekaran, 2009). The survey revealed that most of the respondents showed positive responses that means they preferred the options of “strongly agree” and “agree”. Then as per the division of Bangladesh, chi-square tests were done to see the significant association between the responses on the corporate image question and the residence of the respondents. By AMOS, both the Exploratory Factor Analysis (EFA) = theory generation method and Confirmatory Factor Analysis (CFA) = theory testing method were done. Especially, AMOS helped to establish structural equation model. And, in the primary model, where forty-two elements were available but after communality test, six elements were rejected which means respondents preferred these six elements less. After rejecting these six elements, thirty-six elements existed, and these thirty-six elements formed new structural equation model, which may form corporate image that is called “proposed model”. Besides this, positive correlations prevailed for both of the “primary model” and “proposed model”. x In this study, corporate image was measured under 7 different factors such as brand identity, brand reputation, brand strategy, brand equity, brand quality, corporate religion and corporate management. Where each factor contains 6 identical elements to measure the factor. From the reliability measure, we found all the items, under different factors, however, they are internally consistent and hold the sampling adequacy for factor analysis. After exclusion of the unimpactful scale items from the factors, we have found significant effects of all factors in the measurement of the corporate image from the root level consumers’ responses. Therefore, according to both of the corporate practitioners and root level consumers, we may conclude that brand quality, brand strategy and corporate management mostly influence the corporate image. Major findings from the first specific objective are; Riskiest FMCG company is Merico because it is single product dependent company. It is bringing 70% of whole company’s revenue. Oldest and largest FMCG company in Bangladesh is Unilever Bangladesh limited which has also the largest number of FMCG products. Kantar Worldpanel reports in 2018, in Bangladesh, Ispahani tea, soft-drink 7Up and Brooke Bond tea were the top three brands in the beverage category. PepsiCo is now occupied over 50 percent market share in the clear category, mainly to the champion brand 7 Up. Unilever Bangladesh Ltd. is blessed with largest portfolios. It has 23 brands in 11 categories. Philip Morris Bangladesh Limited sells mostly premium cigarettes. It is the market leader in the global tobacco business. From this first objective, some insights of FMCG companies were discovered in the perspective of Bangladesh. In Bangladesh, educated people are mostly aware about corporate brand especially in urban areas. Those who are uneducated and residing in rural areas, are not corporate brand conscious, rather they can point out only product brand easily. In our country’s top brands both corporate brand and product brand combinedly, product brands are gaining most of the rewarded positions. Within the combined best brand award, 90 percent are product brand and the rest 10 percent are corporate brand. And key findings from the second specific objective are; A mutually benefitting relationship of corporate image and product brand for FMCG companies of Bangladesh is found. Advancing from corporate image, different types of internal images and external images have formed corporate reputation which is broader for corporate long-term sustenance. Different types of brand identity formed a broad term corporate identity which is holistic for overall brand management. Corporate brand connects with corporate image through corporate personality and corporate identity. But this study is limited up to corporate image. Reputed corporates help support product brand for easily communicating with target audience as the same as the product brand, which has high brand equity uplifting corporate image as it is witnessed. key findings from the third specific objective are; According to the census of 2011, highest number of populations is in Dhaka division which holds 46729000 number of populations. So, here we took highest number of respondents as our respondents are divided among different division based on population density. According to Cronbach's Alpha for reliability measure, indicates our data is internally consistent, the value of Kaiser-Meyer-Olkin a factor analysis may be useful, Bartlett's Test of Sphericity of the significance level indicate that a factor analysis may be useful. From the reliability measure we have found all the items under different factors are however internally consistent and hold the sampling adequacy for factor analysis. Elaborately, we have found that the Cronbach's Alpha for reliability measure of the overall 42 variables is very good which is .868. it indicates our data is internally consistent, that means, within our data, a set of items are closely related as a group which is considered to be a measure of scale reliability. By carrying out the division wise comparison of the responses we have also found that the responses are varying over the residence of the respondents. The variation in the responses have seen mostly in Dhaka and Rangpur division, although the variation was very low. xi key findings from the fourth specific objective are; In the case of AMOS, since all the measurement criteria of Model Fit Indices of our proposed model is better than primary model, so this model is accepted. Certainly, considering model fit indices, we have also found that our model is adequate and well fitted and alternatively, we can say that our proposed model is more suitable than primary model for our study. In case of AMOS model, the correlations among the factors both in primary and proposed model are good and significantly and positively correlated. In the case of Smart PLS, since all the measurement criteria of Model Fit Indices are good for our corporate image model, so this model is accepted. Alternatively, we can say, as all the measurement criteria of model fit indices are good for our proposed model, we may accept this proposed model. Certainly, we can say that this is suitable model for our study. Since the qualitative study’s transcripts are analyzed by NVivo, it can be considered as content analysis. In that case, 15 elements were found that may form corporate image. After that, 13 common elements were found from descriptive research’s structural equation model and elements from NVivo. These common qualitative and quantitative combinedly mixed elements are: brand loyalty, trustworthiness, promotional campaign, profitability, corporate values, internal branding, leadership, keeping promises, quality product, brand innovation, corporate social responsibility, public relation and customer satisfaction. From qualitative study, we found fifteen factors. And, from the quantitative study, we found two models. One model is AMOS model and another is SMART PLS model. AMOS model is built with 36 factors and this AMOS model is compared with conceptual framework, then we found a new revised and final model. After that, factors of AMOS model, factors of SMART PLS model and qualitative factors are compared, then we found 11 common factors. These 11 factors can be regarded as mixed research factors. And, since all the hypotheses are significant and accepted, different elements have significant influence over corporate image creation. The potential impact of findings on FMCG branding strategies in Bangladesh is really mention worthy and it is a matter of utmost importance. FMCG brand companies in Bangladesh will be able to formulate a time-befitting strategies for pragmatic growth and these strategies will help support for long-term sustenance of FMCG brands. Certainly, based on these findings, companies can innovate new brand line and can make consumer loyal for repeat purchase. And based on new variables and new models sound corporate image for FMCG companies can be created that may excel overall FMCG brand industry. For the development of this industry, economic emancipation will be happened and country’s branding will play positive role. As it is observed that, when any country is producing many international brands, these may uplift the county’s image and good acceleration may be possible country branding. FMCG practitioners can apply the findings of the study and they can contribute to advancing theoretical understanding by applying meticulously the insight of the contemporary corporate image creation variables. Some insights of in-dept interviews of FMCG companies were an exclusive highlight that should be revealed. In Bangladesh, the FMCG brands are classified in three major categories such as personal care, households care and food & beverage products. FMCG industry has been one of the largest industries in Bangladesh considering domestic consumer needs. Compared to luxury products and other merchandises, FMCG brands in Bangladesh has remained substantially stable, with food and beverages, personal care and household care fastening this particular sector in its growth trajectory as country’s middle class is growing at a faster pace combined with rising per capita income. Likewise, the FMCG sector has managed to grow rapidly its last mile logistics with significant investment on roads-highways infrastructure and have established intricate distribution networks throughout the country. Furthermore, a fast-growing contemporary trade industry and with the advent of e-commerce, the FMCG sector has some new mediums of growth laid out. Currently, Unilever, PRAN, Square, Fresh, Bashundhara, P&G, Reckitt Benckiser, Marico, BATB are among the top players in the FMCG industry whom are producing and selling xii numerous FMCG brands covering personal care, households care and food & beverage sectors largely. The implication of this thesis may serve to practitioners and academics a way-out for FMCG brand building by creating corporate image in the changing business scenario. Policy-makers may get an avenue from a good product brand may excel corporate image as their custom-made pathway for ultimate business sustainability. For the case of practical implications, it can be said that corporate image of FMCG company will be enhanced from the results of this study. Corporate practitioners will get a congenial atmosphere for smooth functioning of their business. Some insights of FMCG companies also have been discovered that may help practitioners for proper decision making in this arena. For the area of academic implications, it is stated that the branding of FMCG goods will be improved. Academics will get corporate image creation aspects in the context of Bangladesh. Certainly, for theoretical implications, it is revealed that the triggering factors for corporate image creation have developed in the context of Bangladesh. And, corporate image theory has been expanded in the scenario of Bangladeshi FMCG companies. Societal implication identified that product and service quality will be improved by corporate image that ultimately will help to get a better society. Economic implications suggest that effective corporate image model will help to increase sales. Economic emancipation will happen by brand innovation when good corporate image is prevailing. Implications to the life style denoted that new product will be developed by brand extension and multi-brand practices when sound corporate image is existing. That consequently will advance life style. Implications for future research identified that corporate reputation study of FMCG company can be studied in future. Implications to the country explored that country’s image will be excelled if many corporates’ image can be improved to the domestic and overseas country. This research contributes to the existing literature, both theoretically and practically in many ways. Theoretically, this study extended the corporate image of FMCG companies in the context of Bangladesh as elsewhere in the world. This theoretical expansion like internal and external corporate image building factors show some new factors. Certainly, FMCG companies’ new areas and its growth revealed that these sectors are playing a robust role for overall economic development. Practically, this study gives multiple avenues for practitioners like entrepreneurs, business executives and policy makers for unified economic growth. In addition, it can be said that this study’s outcome will reveal contemporary scenario and strategies especially for domestic FMCG companies, to make benchmarked brand for internationalization. Some limitations and challenges have been encountered during the research process which provided real-life knowledge for the hard-core understanding of the research. This study is limited to narrow segment of sample from large population of Bangladesh. Some participants were not comprehended the subject matter of questionnaire at the time of data collection. The study was within a specific time period as i couldn't collect data from two upcoming divisions of Bangladesh. Within the COVID situation, conducting in-dept interview was a bit challenging. Survey questionnaire has not collected all necessary data for digging out more insight. This study used non-probability convenience sampling and data were from different division as per ratio of population which sometimes was tough to get appropriate respondents. In addition, some recommendations can be made as to maintain consistency for product brand which may increase brand equity. Government should tighten the belt for creating benchmark of product brand. As quality of product brand uplifts corporate image which may make the country image excel. Corporates should maintain the cohesive relationship, like, product image helps to create corporate image and corporate image supports building product image for FMCG brand sector.