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Impact of Brand Image on the Profitability of Firm, Analysis of Nestle Company Pakistan

Shamim Akhtar, Zhao Xicang and Shuja Iqbal

Introduction: The purpose of this study is to determine the impact of brand image on the firm’s profit. There are different dimensions of brand image that can affect the ultimate customers to have them. Some of the traits can be categorized here are quality of a specific product, product name, packaging and slogan etc. Different dimensions of brand image are discussed for an in depth analysis. These include “brand packaging”, “brand personality” and “word of mouth”. Hence after applying the particular tests the ultimate effect of all these aspects are checked on the profitability of Nestle Company on the basis of the data collected.
Methodology applied: A questionnaire method is used to collect the data about the awareness of the brand. Probability sampling is used for this purpose, as the products Nestle Company are being consumed by almost all types of age of people.
Findings and results: The results are obtained through applying tests include Correlation and Regression analysis. The outcomes are; the brand personality has positive impact on word of mouth and profitability with moderate strength, whereas brand packaging showed also positive impact, but the relation is weak. Word of mouth on other side revealed positive relation with profitability with good strength.
Originality of the study: This study focused on the aspect to earn the profit through intangible asset that is brand image. This will help the owners and the managers of a Company to attain maximum benefits by the implication of these results. The results of this research will help firms to focus on brand image for better profits.