(Solved) Assignment on Brand Management

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Introduction..............................................................................................................................1
2. Main Body...............................................................................................................................2
3. Conclusion...............................................................................................................................2
TASK 2............................................................................................................................................3
1. Costa Coffee's brand portfolio strategy...................................................................................3
2. Illustration of the hierarchy management of brands within Costa Coffee's portfolio..............3
3. Strategies used for managing the equity of the brand within Costa Coffee's portfolio...........4
TASK 3............................................................................................................................................4
1. Strengths of the brand that can get leverage............................................................................4
2. Weaknesses that may need attention providing some possible suggestions............................5
3. Collaborative and partnership agreements...............................................................................5
TASK 4............................................................................................................................................5
1. Brand value..............................................................................................................................5
2. Brand Awareness.....................................................................................................................6
3. Market share.............................................................................................................................6
4. Consumer attitudes...................................................................................................................6
5. Purchasing intent .....................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Brand management is being considered as a process tat helps in maintaining and
developing a positive name of the company in all over world. In business market, brand can be
developed through creating promises with customers regarding offered product and services with
meeting all the requirements with standardisation (Arai, Ko and Ross, 2014). It has been
analysed that branding can improve customer loyalty with firm's products and services. In
present report, an advertising company has been chosen to complete the first task i.e. Optimum
Impression Ltd. This section will be enclosed with an article which will include CBBE Model
and so on. Apart from this, for rest of the tasks, a well known company that has been taken i.e.
Costa Coffee which is a British multinational coffee house found in 1971 by Bruno Costa and
Sergie Costa. This section will show brand portfolio, extension and leverage. Lastly, assignment
will focus on managing the over all brand value of the company.
TASK 1
Article : Brand is Power
To: Board of Directors of ‘Optimum Impression Ltd’
From: Marketing manager
Date: November 2nd, 2018,
Subject: Brand is Power
1. Introduction
A private limited advertising company named as Optimum Impression Ltd. is doing
business in all over UK and got launched in front of United Kingdom's market in middle of
2003. An article has been prepared by marketing manager of Optimum Impression Ltd. Which
will aid in developing a whole new marketing brochure of the company.
Brand – This can be defined as a unique shaped design, a symbol or combination of
words that a company carries for developing its unequalled identity. In present world, it has
been identified that brand is majorly being used by every single business organisation so that to
develop its own unique image in all over world (Buil, De Chernatony and Martinez, 2013). In
other words, brand can be understood as a concept which helps consumers in identifying a
company's products and services with the help of sign, logo or design of the organisation. It is
major responsibility of marketing manager of the Optimum Impression Ltd. to develop right
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symbol so that it can help consumers in remembering about the company's name and its product
just when the individual sees the symbol, logo or a designed word of the company.
Brand equity – This is being considered as marketing term which shows the value of a
brand. Perception and thinking are the two major elements of customers that plays a crucial role
in brand equity. Positive brand equity can be developed only if consumers are having good
perceptions about the products and services of Optimum Impression Ltd. It can help this
organisation in raising it's stock prices in much effective manner.
Some of steps through which a successful brand can be made are given below:
Step 1: Find out Target Audience: Major role of marketing manager to keep its focus on
finding out the target audience along with looking at the mission of Optimum Impression Ltd.
and try to meet needs of customer. This can be understood with a good example i.e. Optimum
Impression Ltd. Have made their decision of implementing communication channel so that they
may easily reach to targeted customers.
Step 2: Define Brand Mission: Under this step, Optimum Impression Ltd. May develop
own sort of value that will help in improving customer base. It is required for the organisation
to keep its focus on its mission and vision, this may aid them in making right decision as per
the requirements of the mission of the company (Chauhan and Pillai, 2013).
Step 3: Research Competition: Here, role of marketing department is to analyse the overall
competition and measure what they are producing for their own targeted audience. This can
easily help in developing a successful brand with an ease because after analysing the situation,
Optimum Impression Ltd. May easily conduct changes in products and services for bringing in
the improvements.
Step 4: Create Value Propositions: Fourth step where marketing department of this
organisation needs to understand the external and internal environment and try to create
effective strategy which will aid in creating proper values along with creating an unequalled
brand of Optimum Impression Ltd. Audience in present context, mainly interacts with other
brands which needs to be properly understood so that right determinations can be made.
Step 5: Determine Brand Guidelines: Under this step, maintenance mainly takes place
which is linked with consistency of various channels (Da Silveira, Lages and Simões, 2013). In
order to develop brand guide, marketing manager of Optimum Impression Ltd. Needs to set
different designs and then use visual elements: templates, logo and structure of brand tone
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which may aid in creating a unique brand identity.
Step 6: Market Your Brand: Last step, where it is responsibility of marketing manager of
Optimum Impression Ltd. to develop proper marketing strategy so that brand can become
famous and targeted audience may start identifying the company by its logo.
2. Main Body
Optimum Impression Ltd a private limited firm which mainly delivers services to its
customers like paid promotions and so on in all over United Kingdom. Many organisations like
Costa Coffee, Starbucks and many more can take help of this organisation to advertise
themselves in all over United Kingdom. Optimum Impression Ltd. Have concentrated on using
updated technology to offer best paid promotions.
Successful strategy for strengthen: Number of models that can be used in present context are
mentioned beneath:
Brand equity: This stays enclosed with major components like emotions, experiences and
perception which comes in mind of customers about Optimum Impression Ltd. For this,
marketing department of the advertising company apply CBBE model.
Keller’s Customer-Based Brand Equity (CBBE) model: This model may aid in strongering the
over all brand equity by audience along with creating strategies that will aid in improving over
all reputation of the company (Keller’s Brand Equity Model, 2018). In present context, CBBE
model is carrying 4 levels and these are mentioned below:
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Illustration 1: Keller’s Customer-Based Brand Equity (CBBE)
model

(Source: Keller’s Customer-Based Brand Equity (CBBE) model, 2018)
Level 1- Brand identify: This is being considered as one of the major component of CBBE
model as every single organisation like Optimum Impression Ltd spends much more on
advertising themselves or their products and services so that to sustain at market for a longer
period of time (Dessart, Veloutsou and Morgan-Thomas, 2015). For an example :- Costa
Coffee have used red colour in their packaging which helps consumers in identifying with its
uniqueness. Failure into this may lead consumers in getting confused over number of products
and because of many firms that are dealing in same sector.
Level 2 – Brand Meaning: it is mainly divided among two different sections and these are:1. Brand performance: Performance of a company main decides the overall brand
performance. Firms like Apple, Samsung and many more are the business organisations
that not only produces finest products but concentrates on their own reputation as well.
This has helped organisation in reaching to new heights.2. Brand imagery: Customer's mind is being considered as one of main element which
plays a crucial role for Brand imagery. Here, this can be understood with an example of
Apple have an innovative image and Mercedes is famous for its luxurious image in all
over world.
Level 3 – Brand Response: Once an audience purchase their product or service, they make
expectation towards business brand. If the actuality matches customer's expectation, then they
are more happy and has better feelings regarding the brand. There are different brands such as
Amazon, Walmart, etc. whose customer's are already having good experience.
Level 4 – Brand Resonance: Keller’s Brand equity model gave this as the last level because
firms already developed good image of themselves where a company may already have a good
reach to its customers because it is enclosed with behaviour, engagement of customers, value
and attitude, connections, feelings and so on (Dinnie, 2015). Therefore, it is required for
Optimum Impression Ltd. To keep on concentrating on their image which may aid them in
reaching to new heights.
Brand extension and reinforcing: Brand extension can be defined as an approach which
helps Optimum Impression Ltd. in launching its services using a logo or a brand name which
differentiates it from its rivals. Apart from this, brand reinforcement can be understood as
maintaining the brand equity in both new and existing customers which may aid in developing
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right opportunity for the business of Optimum Impression Ltd. Here, it has been analysed that
company majorly adopts a number of schemes which aid in making organisation distinctive
from its rivals.
Revitalising brand or overcoming a brand crisis - Renewing whole brand strategy is
being considered as an effective approach which may help a company in decreasing overall
maturity stage of product life cycle (Gundala and Khawaja, 2014). Here, it has been analysed
that strategy which has been adopted by Optimum Impression Ltd. is to reduce number of
chances like brand crisis so that it may aid in reaching to an all new level with both existing and
new products and services.
3. Conclusion
Importance of branding as a marketing tool – In present context, few of significances are
mentioned beneath: Develops customers orientation related to service which is behind the brand: In
present context, it is responsibility of marketing manager to keep on promoting product
and service, In order to do so, it is required for firms to follow advertisement and
market research. Both are essential and beneficial for the success and growth of brand.
 Keeps New Competition Away: Hurdle or barriers related to new rivals can be reduced
by existing organisations if it creates a great number of segments and this might lead
Optimum Impression Ltd. to reach to an all new height.
TASK 2
1. Costa Coffee's brand portfolio strategy
Brand portfolio can be defined as an effective tool which considers as an umbrella for a
company that holds entire brands along with product lines that may aid in distributing services in
different targeted segments. It is being found that, Costa Coffee has introduced two main
portfolio management strategies and these are given below:
Passive Portfolio Management Strategy: A strategy which mainly depends and focuses
on creating a portfolio which is linked with a number of returns considering market index and
benchmark as well which may aid in managing or applying the same weighting (Hanna and
Rowley, 2013). Costa Coffee's this kind of approach mainly stays enclosed with a number of
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styles or considering different stock selections like market theory, aggressive portfolio and many
other. This can easily aid in holding back the overall brand equity of Costa Coffee.
Active Portfolio Management Strategy: Another strategy which depends on different
specific style related to an administration which can develop returns and can help Costa Coffee
in beating the rivals at marketplace.
2. Illustration of the hierarchy management of brands within Costa Coffee's portfolio
Brand management hierarchy refers to distinguishing a number of situations related to
performance, growth and other things linked with brand. It has been analysed that, Costa Coffee
can get support from hierarchy management with the help of developing a number of techniques
that can easily differentiate them from its rivals with a unique brand name.
Management hierarchy of Costa Coffee: Umbrella brand: It is a part of family branding, in this same brand product are included
in the marketplace for targeted customers (Heding, Knudtzen and Bjerre, 2015). An
example is being taken of Costa Coffee where, Cappuccino, Latte, Flat white,
Americano, Mocha, Expresso and many more are coming under one umbrella brand.
 Endorsed sub brands: In present context, signs linked with business where bidding a
famous or a common person so that right approach of promotion may lead firm to raise
profit margins and can enhance customer base as well of Costa Coffee.
3. Strategies used for managing the equity of the brand within Costa Coffee's portfolio
When it comes to manage the brand equity it is required for every single company to
focus on organisation's portfolio, in present context, Aaker Brand Equity Model is being used by
Costa Coffee which was developed by Professor David Aaker which is enclosed with a number
of factors and these are given beneath:
Brand as product: Quality scope, Attributes and value of a product includes in this
section. Costa Coffee which is a coffee brand, it is required for this company to measure, identify
existing features of products like roasted coffee beans and try to take full advantage out of it
which may aid in improving profit margins (Hutter and et. al., 2013).
Brand as organisation: This is being considered as another element of Aaker brand
equity model where Costa Coffee's property, international actions along with local working. As
this may aid Costa Coffee in enhancing brand value in much effective and efficient manner at
both domestic and international market.
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Brand as person: Consumer brand along with personality and their relationships with
each other are two major attributes of Costa Coffee comes under this element. Here, it has been
analysed that, manager Costa Coffee stays responsible in building strong relation with its
consumers through delivering a number of quality products (Roasted coffee bean based coffee,
Cappuccino and so on) in sensible prices.
Brand as symbol: Under this section of model, a number of things like visual and audio
imagery, brand heritage and metaphorical heritage stays enclosed which can help Costa Coffee in
becoming a known brand among today's competitive market (Hwang and Kandampully, 2012).
TASK 3
1. Strengths of the brand that can get leverage
Costa Coffee a famous British brand of coffee is specialised in its own way which is
helping this company in giving good rivalry to its customers. Apart from this, leverage is being
considered as an investment strategy of using borrowed money specifically, the use of various
financial instruments or borrowed capital, to increase the potential return of an investment which
Costa Coffee have adopted and given them opportunities to raise their profit margins. In present
context, it has been analysed that Ristretto which is big on flavour drink made with the help of
espresso and steamed milk is being considered as one of the major selling branded product of
Costa Coffee in all over the world and some of its strengths are given below:
Good return on capital expenditure: Ristretto a popular product of Costa Coffee that has
been innovative and performed well among different geographical areas. Superb performance in
new markets, popular brand (Product – Ristretto) is linked and expertises in whole new market
and making progress in much effective and efficient manner. On the other hand, Costa Coffee
have also managed to develop an excellent branding and advertising approach which made
Ristretto even more attractive in nature (Jugenheimer, Sheehan and Kelley, 2015).
2. Weaknesses that may need attention providing some possible suggestions
In present context, some of weaknesses that has been analysed of Ristretto is that health
conscious people do not consumes it because of high caffeine range. Therefore, Ristretto is least
famous among young generation in all over United Kingdom. It has also impacted Costa Coffee's
profit margins. It is required for Costa Coffee to modify product on the basis of needs of
different segments so that proper benefits can be gained by this company.
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3. Collaborative and partnership agreements
Since Costa Coffee is doing business at international level, these are two sections on
which company have kept its focus on and these are brand extension and leverage. In present
context, brand extension can be considered as a technique that has helped Costa Coffee in
collaborating with Kraft Brew UK Partnership and they have developed Tassimo machines and
Costa cappuccino, Ristretto, latte and Americana single-serve discs are going to be available in
Costa stores. This agreement have led them in improving productivity, profit margins and sales
at the same time (Kapferer, 2012).
TASK 4
1. Brand value
Brand value is being considered as net present value of an organisation's cash flow which
is linked with its products and services that company have offered. Costa Coffee which is already
having a good name in all over world with 2000 stores in 25 nations (Song, Hur and Kim, 2012).
But, it is also mandatory for the company to focus on its goals and keep on trying to improve its
brand value through different steps like Gross Profit Differentiation which is being considered as
one of ascertained brand value with the help of gross profit differential approach (Lundqvist and
et. al., 2013). In present technique, value that Ristretto is having can be equalised to price which
similar companies are offering of same segment.
2. Brand Awareness
Brand awareness is being considered as an effective approach extent to which consumers
stays much more familiar with the qualities or image of a particular brand of goods or services.
This can be understood with an example of Costa Coffee that have developed all of their services
and products wrapping things in red colour. This has helped company's brand name in getting
staying people's mind with its colour. From starting of Costa Coffee, both Bruno and Sergio have
decided to keep their focus on red colour whether they are promoting, creating new product base
line and so on. This have helped Costa Coffee in improving profit margins (Rageh Ismail and
Spinelli, 2012).
3. Market share
In 2016, Costa Coffee was being ranked as the number one coffee brand based company
which is having around 2100 stores in all over United Kingdom and in other sections as well.
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Apart from this, Pepsi's example can also been taken where in United kingdom, it is leading
beverage brand that is having around 34% in UK in beverage sector (Solomon and et. al., 2014).
4. Consumer attitudes
This can also be understood with a good instance of Cadbury which forms to be one of
the biggest confectionery brand critically keep on evaluating the attitude, taste and preferences of
its consumers consistently so as to bring necessary modification or product innovation as per
their demands. In present context, Cadbury uses a technique that is continuously helping them in
improving customer's attitude towards its products and services offered by the company. This
technique is Scaling techniques where managers of this company tries to measure minds of
customers and also manages attitude, preferences and perceptions considering pre-determined set
of brands relating to its products. Paired comparison, orderly category sorting, ranking are some
of methods which is being considered as a demand that has helped firm in raising profit margins
through understanding the behaviour of customers (Rauschnabel and et. al., 2016).
5. Purchasing intent
In present context, an example can be taken of Lakme which is one of crucial brand that
is selling cosmetic based products and services to its customers. Firm have used measuring
techniques and managing purchase, with the help of predictive modelling technique. This
includes a proper procedure and helps in taking effective use of data mining and probability. This
may easily aid in improving profit margins of Lakme as they are having good range of data
(Rosenbaum-Elliott, Percy and Pervan, 2015).
Brand Intent
A brand refers to a promise that explains the exciting factor about a product that will
attracts it's potential customer. In this report, the intention of Lakme is to make the whole world
independent in terms of fashion also. The products of Lakme are captivating and are harmless
even if regularly used. Price of most of Lakme products is affordable for a common man as
compared to other brands in this field. It creates flawless products for it's customers and have
efficient marketing strategies for it's products.
CONCLUSION
From the above mentioned report, it is being summarised that brand management plays a
crucial role when it comes to enhancing the growth of a business organisation. Brand equity can
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easily be maintained with the help of Customer-Based Brand Equity (CBBE) model and profit
can be maximised with the help of following the brand values and investigating the needs of
customers and through building effective relations with them.
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REFERENCES
Books and Journals
Arai, A., Ko, Y. J. and Ross, S., 2014. Branding athletes: Exploration and conceptualization of
athlete brand image. Sport Management Review. 17(2). pp.97-106.
Buil, I., De Chernatony, L. and Martinez, E., 2013. Examining the role of advertising and sales
promotions in brand equity creation. Journal of Business Research. 66(1). pp.115-122.
Chauhan, K. and Pillai, A., 2013. Role of content strategy in social media brand communities: A
case of higher education institutes in India. Journal of Product & Brand Management.
22(1). pp.40-51.
Da Silveira, C., Lages, C. and Simões, C., 2013. Reconceptualizing brand identity in a dynamic
environment. Journal of Business Research. 66(1). pp.28-36.
Dessart, L., Veloutsou, C. and Morgan-Thomas, A., 2015. Consumer engagement in online
brand communities: a social media perspective. Journal of Product & Brand
Management. 24(1). pp.28-42.
Dinnie, K., 2015. Nation branding: Concepts, issues, practice. Routledge.
Gundala, R. R. and Khawaja, H., 2014. Brand management in small and medium enterprise:
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Hanna, S. and Rowley, J., 2013. Place brand practitioners' perspectives on the management and
evaluation of the brand experience. Town planning review. 84(4). pp.495-515.
Heding, T., Knudtzen, C. F. and Bjerre, M., 2015. Brand management: Research, theory and
practice. Routledge.
Hutter, K. and et. al., 2013. The impact of user interactions in social media on brand awareness
and purchase intention: the case of MINI on Facebook. Journal of Product & Brand
Management. 22(5/6). pp.342-351.
Hwang, J. and Kandampully, J., 2012. The role of emotional aspects in younger consumer-brand
relationships. Journal of Product & Brand Management. 21(2) pp.98-108
Jugenheimer, D. W., Sheehan, K. and Kelley, L. D., 2015. Advertising media planning: a brand
management approach. Routledge.
Kapferer, J. N., 2012. The new strategic brand management: Advanced insights and strategic
thinking. Kogan page publishers.
Lundqvist, A. and et. al., 2013. The impact of storytelling on the consumer brand experience:
The case of a firm-originated story. Journal of Brand Management. 20(4) pp.283-297.
Rageh Ismail, A. and Spinelli, G., 2012. Effects of brand love, personality and image on word of
mouth: The case of fashion brands among young consumers. Journal of Fashion
Marketing and Management: An International Journal. 16(4). pp.386-398.
Rauschnabel, P. A. and et. al., 2016. Brand management in higher education: the university
brand personality scale. Journal of Business Research. 69(8). pp.3077-3086.
Rosenbaum-Elliott, R., Percy, L. and Pervan, S., 2015. Strategic brand management. Oxford
University Press, USA.
Solomon, M. R. and et. al., 2014. Consumer behavior: Buying, having, and being(Vol. 10).
London: Pearson.
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Song, Y., Hur, W. M. and Kim, M., 2012. Brand trust and affect in the luxury brand–customer
relationship. Social Behavior and Personality: an international journal. 40(2). pp.331-
338.
Online
Keller’s Brand Equity Model. 2018. [Online]. Available
through.<http://www.managementstudyguide.com/brand-management.htm>.
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