Branding is of great importance to a company since it authenticates a company’s mission, core values and strategic priorities. Moreover, it helps to clarify the position of the brand in the marketplace as well as influencing behavior and creating brand enthusiasm. It furthermore operationalizes strategic plans of the business (Gert-Jan Web). Branding helps in prompting the cost of the company's product, packaging, promotion and advertising strategies, and supply channels. Branding therefore assists in establishing a product identity and gaining recognition in the market. A well-established company brand will gain a competitive advantage over other products in the market. Branding also helps in building customer loyalty as well as aligning the internal culture and external reputation. However, this can only be achieved through consistently reinforcing the brand to gain positive response from the potential customers. Branding can also be used to attract new customers to the product through aligning verbal and visual identities (Vaid 8). Branding is also important since it allows users to form an opinion regarding the brand and a brand preference for the product. Moreover, branding is much important since it helps in creating real value for the company and its product. This measure will help eliminate previous perceived misconceptions about the product and the image of the company therefore creating a new perceived value in the eyes of the product users (Hasanali, Leavitt and Williams 7).
Moreover, branding helps in creating intellectual property also known as trademarks which can increase the value of the product to the potential customers. This will also allow the product developers to retain control of the way they charge for their product and how it is utilized. In addition, branding is important to companies since it helps build brand associations. Brand associations can be defined as emotional bonds, which tie the brand name to the target self-image (Healey 5). An additional importance of branding is that well promoted and well developed brands make product positioning easy and effective. This is because upon exposure to a product either through hearing or through seeing it, the targeted audience forms up mental images of the benefits they derived from the brand. This forms a great advantage to the brand owners since the brand will now form a competitive advantage. Moreover, companies with a strong brand image can add a new product to the already established brand. This created situation may let businesses to introduce new products more simply as the brand is by now recognized within the market. Consequently, strong brands can benefit from the financial advantages that result from the concept of brand identity, where the brand itself turn out to be valuable. This benefit results from the outright sale of the brand or through licensing arrangements. Oreo Cookie Company is one of the most popular cookie companies in the world. The firm was established in 1898, and has gained presence in different parts of the world such as Canada, where the parent company is located, India, America, China, Argentina, Mexico, and many other countries. Nabisco food division of Kraft Foods manufactures Oreo brand in the US. It was introduced in 1912 and has since then established itself as the leading