The effect of branding on organizational performance in Uganda

Abstract

Branding plays a crucial role in building a sustainable bond between the branded company and its customers. The consumer’s brand image develops over time, previous experience with a company and its products/services are of particular importance. This study sought to investigate the effect of branding on performance of organizations in Uganda with RIHAM Industries as a case study. The objectives of the study where; to assess the relationship between brand name and organizational performance in Uganda, to investigate the relationship between brand identity and organizational performance in Uganda and to assess the relationship between brand extension and organizational performance in Uganda. The study used a Case Study design and employed both quantitative and qualitative approaches. It targeted both the employees and customers of RIHAM industries in Mpigi Town Council. The data that was collected was analyzed using Statistical Package for Social Scientists (SPSS). The major findings from the study reveal that RIHAM’s brand is strong and popular especially amongst the youth and RIHAM differentiates its products from her competitors. Further the findings show that RIHAM has applied brand extension to good effect with increase in the sales performance of the different RIHAM products. This in effect means that because of the presence of the brand on different products, this has served to increase the popularity of the brand. A major finding revealed in the study is that RIHAM Industries Limited has strong competitors. The research found out that there is a positive relationship between Brand Name and Organizational Performance, brand identity and organizational performance and brand extension and organizational performance. The study recommends that RIHAM industries should come up with programs to consolidate that niche by initiating promotional activities that will entrench the brand in the minds of the public. RIHAM Industries should consider doing Corporate Social Responsibility (CSR) as a way of ploughing back to the customers and RIHAM should be careful when doing brand extension as it has the potential to curtail the growth of sales and profits. The study report is presented in Chapters. Chapter gives a general introduction and background to the study, Chapter Two reviews the relevant literature, Chapter Three details the research methodology used, Chapter Four discusses the analysis and interpretation of findings and Chapter Five gives the Conclusions and recommendations arising from the study.