Branding and Leadership in the context of Circular Economy

: In the current context of globalization, economic and environmental crisis, the companies must reduce the costs, being at the same time highly competitive and flexible to the market request and changes and acting protective toward the environment. This is not a very easy target to reach. Having in mind all these limitations, the paper analyses the branding - leadership interaction. Literature review led at a Branding Leadership Model that seems to be incomplete. Analyzing Eurostat data through a regression model we demonstrate that online branding and green branding are components to be included in the model


Introduction
There are a diversity of published work regarding branding and leadership.A growing interest covered brand development related to sustainability.At management level, all companies invest time, resources and energy in building a strong brand but somehow only those that have outstanding leadership are the most successful, seems to be a strong tie between branding success and leadership.
Previous works revealed two concepts that have got significant interes : 'leadership brand' and 'brand leadership'.The concept of 'leadership brand' reffers to companies which first envisioned their brand positioning and then invested in finding and nurtruring management talents (leaders) with specific features able to develop and grow a specific brand image that might bring them market success [Ulrich & Smallwood, 2007].Also, leadership brand starts with developing exceptional managers with a distinct set of talents that are uniquely geared to fulfill customers' and investors' expectations.All the focus is on customers and their needs and desires.Such an approach, leadership brand inspires faith that employees and managers will consistently deliver their promises.A leadership brand is growing in a certain organizational culture that supports quality, loyalty and it can be embedded through coherent policies regarding employees and customer relationship.
The other concept 'brand leadership' normally discuss the role of brand in a strategic differentiaton helping the company to become the industry leader [Keller&Kotler, 2006].The interest on brand leadership exists for a while, for example Aaker [Aaker and Joachimsthaler, 2000] presents the core aspects of a new paradigm, the shift from Brand Management Model to Brand Leadership Model , based on a series of transformations and new focus in branding activities, such as: the perspective was changed from tactical to strategic management being not only tactical and reactive but thinking strategic and being visionary as perspective.
Looking at SMEs level (small and medium sized enterprises), a group of Malaysian researchers [Ahmad et al. 2014] have developed a comprehensive Brand Leadership Model.Starting with the analyzing this model construct and using the Eurostat data, authors realized that the model can be improved with at least two new elements: online branding and green branding.Current companies are concerned on how a brand can be built by a leadership vision, having in mind the advantages brought by internet and green technologies as to reach the sustainable development objectives.
The paper presentes only a part of a wider study, focused on factors influencing the establishment of new online green companies.For current analysis, the data was extracted from Eurostat database and a linear regression model was developed with the Least Square method in order to investigate if selected factors have major impact on branding related to green products.

Theoretical brackground
The literature review shown that competitive companies are those who create/shape their future, driven by leaders.
The leaders are the ones that have a vision, and takes time to implement.They are not caught in the present, they travel with their mind into the future.One of the future challenges is the sustainable development, therefore.This is why leaders base their work on eco-innovation and of (human) individuals' aspirations and needs.Leaders build trusts and confidence and take advantage of the good communication, collaboration and innovativeness of members of their teams.Leaders are not interested by present profit, but by a interesting, sustainable, creative way of changing an aspect of life or of doing business etc.Leaders invest in people making them feeling proud of being a team member and getting their support in reaching the target, by exceeding their performances, by learning new things, or being creative and having a effective communication.Having high emotional intelligence leaders understand people and drive them patiently in transforming problems in opportunities and risks in challenges.
Leaders have their own visions, have a whole picture of the final target, know how to set strategies, knows how to communicate the goals and how to get people involved, motivated and inspired by their project.As a consequence every new brand needs a leader to build it.
A brand is not just a name or symbol that uniquely identifies a product, a service, a company, but also a future promise, trust, positive associations and relationship with the consumer.A leading brand with as very high awareness, receives a lot free publicity/buzz, being admired and has high purchase intent.A leading brand brings a lot of advantages.The customer loyalty and the larger market share comes with lower the price sensitivity and even allow the company to set up a price premium.It is also gathered innovators employees that comes up with new product categories, whose conscience is Increases an organization's sales, profit margins, stock price and market valuation.It also brings the advantage of increasing bargaining power with business partners [VanAuken, 2011].
"Branding demands commitment, commitment to continual re-invention; striking chords with people to stir their emotions; and commitment to imagination.It is easy to be cynical about such things, much harder to be successful" -Sir Richard Branson, CEO Virgin "Your brand is what people say about you when you're not in the room" -Jeff Bezos, Founder of Amazon Analyzing the literature, a wise step for each company is to get set online.In online the brand awareness is easier to be built because of the wide spread of internet.In online there is a huge variety of products, some of it meet the minimum standards in order to sell, others not.That's why consumers are tempted to buy products that are under the umbrella of a brand.The wide spread of social media, associated with Z generation, rise the probability to meet the client online.Furthermore, the brand perception can be influenced by social media.Each social network analysis provides statistics that allow site traffic, consumer behavior and their loyalty to the brand.Brand can be built and improved through online tools (SEM, email, and newsletter).In online communications management, negative news on the brand is very important, because this negative news tends to expand the virus.The company can provide evidence to counter negative news, or when there is no such evidence must recognize the truth and should show positive attitude compensation to customers and direct communication with them.The online brands are built based on customer' testimonials and also by using the facilities of social network sites or company's own website.It can be also improved through awards, guarantees and the possibility to return the product or receive compensation for noncompliance products.Sometimes promoting the partners and customers can be a form of free advertisement.The brand reputation/notoriety and the brand loyalty can also be increased through SEO (Search Engine Optimization) and SEM (Search Engine Marketing) Fig1.
Next figure shows that high social interactivity in online and through niche publications represent opportunities to influence consumer behavior.This can be done through social media platforms and web applications.The online presence could help the company to reduce costs (with distributions, salaries and/or rent for the physical shop).The online company presence will reduce the CO2 footprint and would have a positive impact on the sustainable development.In our vision, there are other exogenous variables that should be analyzed: online branding and green branding (fig2).These variables become interesting because they can influence the "road'" of the firm to sustainable development.
Below we argue the previous statement.

Green Branding
In the context of circular economy, green branding should be a most and not just a desirable action.More than ever the companies has to design and sell green products/services, has to promote all the sustainable circular economy principles through their management and marketing policy and has to find non-polluting transportation /distribution.The new innovative products have to use recyclable resources, have to be done with green technologies into a sustainable way and have to last for a longer time.The trend of buying new product just for fun has to stop; even these new products are less performing than the older ones.The concern for next generation's environment and the added value has to be the primary goal of the modern companies.The companies have to avoid global warming, waste of electricity, have to use natural resources, solar, wind, wave energy, have to reduce soil, noise or air pollution, to recycle water or materials, reducing CO2 footprint.And this entire paradigm has to start in the family education and school.We all have to learn how to protect the environment and return the packaging when is returnable [Osman, 2016].
A good example of green marketing is also about promoting the principles and best practices on environmental protection such in Greenpedia.ro portal.
Healthy population can be grown with organic products, even the additional taxes are higher, as excepting an extra product value.
Cloud computing and IoT (internet of things) offer new methods and tools for environment protection, increasing the online traffic, reducing the footprint of carbon dioxide, air and soil pollution.The higher the success of the green innovation and green promotion, the higher is the influence over the firms' performance.A green brand is product quality guarantee and the challenge to increase the awareness of consumers not only about environmental problems but also about the existence of possible solutions and existence of enviro-label [Murin,205].

Online branding
In the online brand is built over time, following several stages.The necessary steps to develop a brand online are [ASE 2014] • The Context identification (environment conditions) trademark; • Target setting and brand messages; • Establishment of brand-specific; • Develop brand design; • Creating website and other communication tools specific online environment; • Launching and promoting the website.
• Building a brand specific experiences Once created the brand is important ongoing monitoring of performance and value.In online field the brand value is assessed by the : • brand awareness • level of brand loyalty • name' notoriety • perceived quality • strong associations with that brand • other assets owned brand: patents, trademarks, relationships within distribution channels etc. • price (strong brands can afford to sell at higher prices -ex .: Amazon.comhas prices by 7% -12% higher than competitors less known).
• "twin" products -the same characteristics sold under different brands.
• the market share achieved in terms of investment in promotion.

The Research methodology
The Eurostat database offer a lot of information, but for this article were collected data regarding new Organisations and sites with eco-management and audit scheme (EMAS) registration (green_org) as a consequence of the emergence of Eco-label licenses (ecolabel), Urban population exposure to air pollution by particulate matter (urban), Greenhouse gas emissions intensity of energy consumption (gas_emission), Pollutant emissions from transport (transport).The analyzed period was rune for 2005-2016.The analysis first step is measuring the influence of each factor in a regression model using EView software.It was chosen the Least square (NLS and ARMA) model, a linear regression model.The result can be seen below Fig. 3.
To achieve the regression model we start from the null hypothesis, which asserts that the value of the coefficients of the variables will be zero (H0: coefficients = 0).The alternative hypothesis supports the opposite of the null hypothesis, so H1: coefficients different from zero.In other words, we start from the hypothesis that the mentioned factors have the value of coefficient 0, so they do not influence the green_org variable.The R 2 coefficient of this model is 0.938, indicates that 93% of the variable green_org variance is determined by the variation of causal variables (Ecolabel, urban, gas_emission, transport).The R 2 coefficient should be higher than 0.95 for a representative model.
The second step of the analysis is adding new variable in the model as to obtain a more representative one.It had been added 2 variables: Resource productivity (productivity) and environmental protection expenditure of the public sector by type (protection).In the new model R 2 coefficient of this model is 0.967, indicates that 97% of the variable green_org variance is determined by the variation of causal variables (Ecolabel, urban, gas_emission, transport, productivity and protection) (Fig. 4).
The R 2 coefficient of this model is 0.967, indicates that 97% of the variable green_org variance is determined by the variation of causal variables and only 3% of this influence cannot be explained by the model.As R 2 takes values closer to 1, the regression model better adjusts the data in the sample.In this case, the value of 0.967 demonstrates the validity of the model (Fig. 4).
Also, the adjusted value of R 2 (0.92 is close to the value of R 2 , which proves that the influence of the independent variables (Ecolabel, urban, gas_emission, transport, productivity and protection) is significant to explain variance of the dependent variable (green_org).In order to be able to interpret the statistical significance of the regression model, it is necessary to verify with the statistical test T the null hypothesis that R 2 is zero.In this case all coefficients of the regression equation should be zero.
The simplest test to highlight error self-correction is the Durbin-Watson test.In this case the D_W value is 1.99, included in the (2, 4) interval.The conclusion is that there is a very low self-correction between errors.
The regression equation for the model is: Particular attention must be paid to the estimated coefficients of regression equation (Fig. 4).For transport the null hypothesis must be rejected because the significance threshold is prob.0.02 <0.05.With a 95% probability, transport coefficient is -89.74.
For ecolabel, urban, gas_emission, transport, productivity and protection the null hypothesis must be rejected because the significance threshold is prob is >0.05.
A further analyze can be done, adding new variable in the model and eliminating the autocorrelation, but overall the model is representative.

Conclusions:
In conclusion, the alternative hypothesis is accepted.It stands that new organizations and sites with eco-management and audit scheme (EMAS) registration is determined: by the introduction of ecolabel licenses, -by the urban population exposure to air pollution by particulate matter, -by the increase of number of greenhouse with lower gas emissions intensity of energy consumption by the decrease of pollutant emissions from transport by the resource productivity by the increase of environmental protection expenditure of the public sector by type The new model proposed in this paper is validated, although in a further research new variables can be taken into discussion to be analyzed and added to model.The analysis of Eurostat data regarding Organisations and sites with eco-management and audit scheme (EMAS) registration and the regression model demonstrate that Branding Leadership Model may be improved with 2 incoming variables: on-line branding and green branding.These variables appear as o consequence of the circular economy approach.