Effects of Branding on FMCG: Lessons from the Carbonated Beverage Industry

Abstract

The Bangladesh carbonated soft drinks market is a vibrant, rapidly developing sub-market of the country's larger fast moving consumer goods (FMCG) market and is very competitive, with both international and locally established corporations. Nonetheless, given the rapid market expansion, no significant research has been conducted to investigate the impact of branding on consumer purchasing behavior in Bangladesh's specific socio-economic and cultural context. This way, this study shall be able to fill a significant gap in the current body of knowledge by exploring the connection between the various dimensions of branding, which are brand awareness, brand loyalty, perceived quality, emotional and social value, perceived product value, and how they help to drive consumer purchasing behavior in the carbonated soft drinks market. The methodology used for this study was a descriptive, exploratory approach. The objective of this study design was to collect data from nearly 100 consumers of the City of Dhaka and its metropolitan areas; it employed a standardized survey instrument for the collection of data from urban customers in the summer, during peak consumption time. Age, gender, and income were used to stratify the sample to have demographic representation of the desired customer base. The relationship between perceptions of quality and brand recognition arises because consumers, in most cases, associate high-quality products with familiar brands or familiar brands with a high degree of trustworthiness. Packaging does not play as much of a role in creating brand loyalty as does the brand name, but it does play a role in trial and visibility by new or lower-established brands that need to break through on store shelves. The analysis shows that branding in Bangladesh's carbonated drink market involves complex cognitive, emotional, and economic interactions. Whereas local brands have been able to exploit nationalistic sentiment and youth marketing to secure market share, international brands have been adversely affected by political boycotts, e.g., Coca-Cola. Consequently, the changes indicate that branding in an untapped market requires culturally relevant, flexible strategies. The research also contributes to the existing literature by providing empirical findings to support the application of branding theory in the FMCG sector in Bangladesh and by outlining practical implications for marketers, government, and industry players.