An Exploratory Analysis of Virtual Brand Communities

This assignment requires a detailed analysis of various academic papers and articles related to virtual brand communities. The task involves examining the role of advertising and sales promotions in brand equity creation, understanding the importance of internal brand management, and navigating the institutional logics of markets. Additionally, it includes exploring the concept of nation branding, luxury fashion brand consumers in China, and destination brands managing place reputation. The assignment also touches upon the CBBE model of brand equity and Ansoff's growth share matrix of Coca-Cola. A summary of the key findings and insights from these papers is required.

BRAND MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
SECTION 1......................................................................................................................................1
TASK 1............................................................................................................................................1
P1. Importance and significance of branding as a marketing technique.....................................1
M1. Brands are managed successfully with using models and concepts....................................2
P2. Key components of brand strategy for managing and building the brand equity.................3
M2 Apply validated and appropriate examples within an enterprise..........................................6
D1 Critical evaluation of understanding branding within an organisation.................................6
SECTION 2......................................................................................................................................6
TASK 2............................................................................................................................................6
P3 Different strategies of brand equity, portfolio management and brand hierarchy.................6
M3 Critical analysis brand equity using accurate frameworks...................................................8
TASK 3............................................................................................................................................8
P4 Brands are managed collaboratively and in partnership both at a global and domestic level
.....................................................................................................................................................8
M4 Critical evaluation of using various tools used to extend brands and leverages..................9
TASK 4..........................................................................................................................................10
P5 Various types of tools for managing and measuring brand value .......................................10
M5 Critically evaluation of techniques and tools for measuring brand value.........................11
CONCLUSION ............................................................................................................................11
REFERENCES................................................................................................................................1
.........................................................................................................................................................2

INTRODUCTION
A brand is a symbol, design, term, name and many other features that distinguish an
enterprise or goods from its competitors in the eyes or minds of client. Brand management is a
process of upholding, keeping and improving the image of company so that the brand will get
connected with positive outputs. It involves various number of essential and beneficial aspects
such as client's satisfaction, cost, in store display and competition.
This project is based on two different organisations such as Coca-Cola and Pepsi; both
are the biggest selling and popular soft drink companies in world (Ashworth and Kavaratzis,
2010. This report discussed about the importance of branding and key aspects of brand strategies
for making brand equity. Different strategies of portfolios management, brand strategies and
equity are also determined in this study. Brands are managed in partnership and in collaborative
at national and international level, it is also covered in this report. There are various tools and
techniques for measuring the brand in an effective way which is also shown in this project.
SECTION 1
TASK 1
P1. Importance and significance of branding as a marketing technique
Brand: It refers to the sign, words, symbol and unique design of products and services of
company. It is an essential and beneficial part of company because it described the business
position in marketplace as well as in customer's mind also.
Branding: It is an effective process of developing a product’s name and image for a
business products or services in the eyes of customers. This implements mental structure and
support customers in order to increase their knowledge and skills about company products.
Importance of branding: It is essential and significant for the organisation to develop an
effective name of product. It delivers entire useful message to audience and creates credibility of
business in an effective manner (Brodie and et. al., 2013). There are some importance of
marketing as a marketing tool given as below:
Build customer loyalty: Both; Coca-Cola and Pepsi are famous and well-defined brands
in all over the world. They mainly deal in different beverages with good quality and affordable
price. Unique and effective brand easily builds customer loyalty which is beneficial for the
organisation to increase their sales and revenues in minimum time period.
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Generates sales or profits: Branding is also beneficial in generating maximum profit and
sales by providing quality beverages to the customers at reasonable cost. Coca-Cola and Pepsi
are popular brands across the world and so, trust and believe of customers is stronger as
compared to other brands (Buil, De Chernatony and Martínez, 2013). All buyers’ first choice is
to purchase healthy and quality beverages that is produced those business.
Introduce new products: Branding is also important and useful for company to introduce
their innovative products and creative services to the customers. So they are understand and
known about products quality and purchase large quantity which is essential for the development
and growth of company.
Difference between brand and products
Basis of differences Product Brand
Meaning It is identified as an item
which is available for produce
in the marketplace.
Brand mainly distinguish a
goods from other beverages in
the marketplace.
Created by Product is created by the
manufacture.
Brand mainly developed by
customers in an effective way.
Appearance In nature, product may be
intangible or tangible.
In nature, brand is intangible.
Replaced/copied It can be replaced or copied by
others.
It cannot be copied or replaced
by others.
M1. Brands are managed successfully with using models and concepts
Brand is a significant part of company’s growth and success. Coca-Cola and Pepsi, both
are well-known and popular brands in all over the globe (Christiaans, 2012). In order to manage
the brand successfully, organisations mainly focus on adopting Keller’s brand equity model. It is
useful and beneficial for businesses to maintain long term relations with customers. It considers
four phases which are determined as below:
Brand equity: By using such kind of model company easily develops brand identity and
consciousness among clients.
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Brand meaning: It is identified as a second process which is important for companies to
recognise brand meaning. In this step, business sets a unique image and name of brand in the
market.
Illustration 1: Keller’s Brand Equity Model
(Source: Keller’s Brand Equity Model, 2018)
Brand Response: It helps companies to identify customer’s response which is mainly
divided into its decision and feelings.
Brand Resonance: It is the last step of such model which is essential for organisation to
easily and successfully maintain their image in marketplace (Dempsey and Gruver, 2012). There
are few elements which are included in this phase such as sense of community, behavioural
loyalty and many others.
P2. Key components of brand strategy for managing and building the brand equity
Brand equity: It is a set of liabilities and assets concentrated to a brand, its symbol and
name that subtract or add from the value given by a services or products to an organisation and
its customers (Dinnie, 2015). It is identified as the value of brand in marketplace and customer's
mind that is observed by the experience and perception of target audience. It takes shape in
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packaging, advertising and other tools of marketing communication as well as become an
emphasis of the relationship with clients.
Importance of Brand equity: There are some significance of brand equity which are determined
as below:
 It can decrease the marketing cost through maximised brand loyalty and awareness.
 Strong brand equity can attract a large number of customers towards business products
and services.
 It helps the organisation to increase their sales and revenue in limited time period.
 It highly creates demands and needs for beverages.
 Brand equity maximised marketing communication efficiency and effectiveness. It enhanced perception of product execution.
For example: Pepsi and Coca-Cola are popular and well-known organisations in all over the
globe. In fact, different peoples are consume coke and other beverages on daily basis which
gives them good loyalty among clients (Du Preez and Bendixen, 2015). Further, the business
develops its goodwill by giving Diet Coke, No Sugar, Calories products and many others to
customers at reasonable price.
Brands are managed and developed over time: There are different strategies which are used by
the Coca-Cola and Pepsi in an effective manner. All these strategies and tools are determined as
below:
Brand Reinforcement strategy: It is one of the main and essential strategy which is
adopted by both enterprise in order to maintain their brand successfully. It is principally
emphasis keeping the brand equity by retaining brand among the new and existing clients. This
can be completed due to consistently communicating the meaning of brand name in term of:
 How it enables an audience to built a favourable, unique and strong image of company in
customer's mind (Ertimur and Coskuner-Balli, 2015). What are the benefits of brand reinforcement and how its fulfils the demand and needs of
customers in limited time period.
Brand reinforcement is classified into two parts which are determined as below:
Brand Awareness & Image: It is very essential and beneficial technique's of maintain
brand in an effective manner. It includes regular controlling of beverages at entire ground of
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product life cycle i.e. introduction, growth, maturity and decline stage to support a check on the
variation in the preference and choice of clients.
The marketers of the Coca-Cola and Pepsi select this strategy in order to remind audience
regarding the brand name and its long term advantages (Kapferer, 2017). To keep the trade name
of the company in the minds or eyes of the clients, some innovations, investigators and
marketing events are created with the modifying trends of marketing.
Apart from investigation and innovation the brand reinforcement strategy can be
completed due to different marketing events such as:
Advertising: It is one of the easy and common technique's of brand reinforcement
strategy. By displaying the ads on Internet, TV, Billboard, Bulletins, Radio etc. all these are
important for the Coca-Cola and Pepsi in order to make the image deep-rooted or fundamentally
in the customer's mind.
Sponsorship and Events: It is also very essential strategy which is used by both
organisation in order to promote their beverages in the marketplace. It also help them in
achieving long term benefits or advantages in limited time period. In this bother business sponsor
big programs like: education, political rallies, Award functions, sports etc. with the aim of
informing the audience regarding their beverages and developing positive image or goodwill in
the eyes of customers.
Brand Revitalisation strategy: It is identify as a marketing strategy which is followed
when a image has reached profits and maturity become decline (Kelley, Sheehan and
Jugenheimer, 2015). For example: Mountain Dew is a Pepsi products, it was established in year
1969 with the punchline of “Yahoo Mountain Dew” it was ornateness in the marketplace till
1990. Later on sales of such beverages was modified through which it was dislocated, packaging
of beverage is modified, an the punchline was modified to “Do the Dew”. So it is very essential
and important strategy in order to maintain long term relation with customers.
Main challenges in order to developing an effective brand: There are some difficulties or
challenges which are determined as below:
Barriers to entry: It is one of the main difficulties for the company success and
development. These are present of maximum cost of start-ups and other hindrance that keep new
challengers from easily gaining an area or industry of business. It can reduce the company
profitability and productivity ratio which is not good for them to long term advantages.
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Winning Consumer Loyalty: In order to maintain strong image and brand in marketplace
and customer's mind. Loyalty of consumer more important and essential so in this business
should try to found a broad value proposition, engage clients, solicit customer feedback and
command.
M2 Apply validated and appropriate examples within an enterprise
In may, Coca-Cola and Pepsi launched One Brand marketing strategy which includes
several points are as below:
 Business's are advertising their product features and characterises to the customers in
marketplace.
 Lower Coca-Cola variants, No sugar and Calories are included by organisations in the
end frame of beverage television promoting (Li and Kambele, 2012).
 For using innovative scheme, both business are use its sponsorship tools which aid in
advertising its entire services and goods to the audience.
D1 Critical evaluation of understanding branding within an organisation
According to the Pritchard, (2011) Branding is essential part of the company image and
its goodwill in marketplace. In order to maintain brand successful, companies use different kinds
of strategies in an effective way.
On the other hand and Pride, (2011) Branding support the organisation to increase their
sales and revenues in limited time period. Strong position of brand give different competitive
benefits to the enterprise to attract large number of clients towards beverages.
SECTION 2
TASK 2
P3 Different strategies of brand equity, portfolio management and brand hierarchy
Brand-management: It is identify as an effective activity of analysing company
positioning as well as planning strong brand in customer's eyes and marketplace (Morgan,
Pritchard and Pride, 2011). It is mainly founded on different points which support to create
strong image of organisations including pricing, logo etc. Pepsi and Coca-Cola is a popular brand
in all over the world.
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Brand equity management: It is essential for developing strong relationship with
customers. Strong brand equity can built batter image, developing brand loyalty will made long
lasting position in the market.
Portfolios management: It is identify as an art of developing accurate judgement about policy.
Asset distribution, investment mix for persons and enterprises. It is useful and essential for both
brand to identifies their opportunities, threats, weakness and strengths systematically.
Brand portfolios strategies: It is also essential part of the company to create more
benefits within minimum risk (Santos-Vijande and et. al., 2013). There are some components
which are processed for effective portfolios management strategy. There are two parts which are
mainly included in this are as follows:
Active portfolios: It is an essential and beneficial scheme which is select by administrator of
those organisation with motive to generate more profits as well as maintain brand image in
marketplace.
Passive portfolios: It is also used by the manager of both entities in order to achieve long term
development and success. Use of this technique's, an organisation easily attract million
customers towards strong brand. With the use of this strategy business can gained maximum
turnover from the less investment.
Brand equity: It is defines as the strength and value of brand or image that determine its
worth. It support the company to attain maximum turnover and sales in limited time period. Main
motive of both organisation to evaluate strong value of brand effectively. Coca-Cola brand
equity is planned in the year 2013 at $81.6 Billion. In order to develop effective brand companies
use CBBE model, it help them to make long lasting connection with clients (Som and
Blanckaert, 2015). It covers few steps which are described as below:
Brand identify: In this phase, companies recognise their brand position in customer's mind as
well as marketplace. Market research is conducted by the organisation in order to understand
basic requirement of clients towards brand.
Brand meaning: In this phase, brand position is identifies in client's mind and its other
competitors. It can convey itself about quality and characterise of specific products.
Brand Response: In this opinion of customers is more essential because all success and
development is mainly depend on this. Positives views of business brand includes security, fun,
self satisfaction and many other to make effective relation among clients.
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Brand resonance: This steps includes behavioural loyalty, attitudinal attachment, community
sense and active engagement (Wallace, Buil and de Chernatony, 2014). This process is essential
for the organisation to improve their profitability and productivity ratio.
Management Hierarchy of Pepsi and Coca-Cola: In the organisation, there are different
employees who are work with together. Both are famous brand across the globe which includes
few types of brand such as Umbrella and corporate brand:
Companies Umbrella Brand Corporate Brand
Coca-Cola Such kind of brand is use by
coca-coal in order to retain and
achieve competitive
advantages. They use “One
Brand” Marketing strategies.
There are different examples
of corporate brand which is
use by Coca-Coal such as
Honest tea, Odwalla Juice and
Smartwater etc.
Pepsi Pepsi also use this kind of
brand in order to attract large
number of customers towards
specific products.
There are some corporates
brand which are established by
the Pepsi such as Lays, Lipton,
7up, etc.
M3 Critical analysis brand equity using accurate frameworks
Brand equity use CBBE model which is essential and beneficial for the company to
maintain their long lasting relation with customers (Wallace, Buil and de Chernatony, 2014). It
also help the business to increase their sales and revenues in limited time period.
TASK 3
P4 Brands are managed collaboratively and in partnership both at a global and domestic level
Brand extension: Coca-Cola and Pepsi are world famous and popular brand. Coca-Cola
described by the Colonel John Pemberton in 1886. Pepsi, it is introduced in 1893 with its quality
products and services. Both are offers various qualities or varieties in its liquid products, they
also produce flagship goods with Diet Coke, Born Sugar.
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Leverage: It shows the business position and its profitability ration in marketplace. It
means company position is highly depends of its leverage ratio. Higher leverage show the batter
position of both brand and low leverages describe short term position of organisation.
Strategies of brand extension: In order to extend their business operations and activities
in international and other place, both organisation use Ansoff's Matrix (Ansoff's Growth share
matrix of Coca-Cola, 2018). These are includes four parts which are determined as below:
Ansoff's Matrix Coca-Cola Pepsi
Market Penetration Main objective of applying
such kind of strategies is to
expanding business activities
internationally.
Main aim of Pepsi is to
increasing sales and turnover
of company in limited time
period.
Product development Company has established to
making other flavoured
beverages such as vanilla,
Lemon, Lime etc.
In this business develop their
all products in different way
(Du Preez and Bendixen,
2015).
Market Development In this company develop their
products as per the trends of
market (Du Preez and
Bendixen, 2015). Best
example: it was established in
2005 by Cole Zero.
Market development is
classified on the basis of
business beverage and other
products.
Diversification They are mainly diversify their
products into related and
unrelated classification such as
Glaceau, Vitaminwater and
others.
They classified their produces
as per the customers needs and
wants.
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M4 Critical evaluation of using various tools used to extend brands and leverages
Ansoff's Matrix and leverages help the company to achieve long term goals and
objectives in limited time period. With the use of this strategy, both organisation easily identify
their position in marketplace.
TASK 4
P5 Various types of tools for managing and measuring brand value
Brand value is very essential and important part of the business development and success.
In order to measuring and maintaining brand company use different technique's which are
determined as below:
Quantitative tools: It is very essential technique in order to analysis brand value as
compared to others enterprise (Du Preez and Bendixen, 2015). It is important process which id
organise by the business manger to analysis needs and wants of customers.
Quantitative tools: With the use of this technique's, manager of both organisation ask
some questions related to business products, facilities and other services.
Comparative tool: In this brand user behaviour and reaction is very essential for
maintaining brand in long lasting. This technique help the company to achieve long term goals
and objectives. There are two essential technique's such as marketing and Brand based approach:
Coca-Cola Pepsi
Coca-Cola is a famous and well-defined brand
in all over the world (Christiaans, 2012). In
the business they use various tools and
technique's such as sponsorship, promotion,
advertisement and other tools. Some
technique's are also use by the Coca-Cola are
as follows: Free Awareness: In this business try to
understand the customer's preference
and taste regarding business products
and services.
 Brand Awareness: With the use of this
Pepsi is popular brand across the globe. They
also use different tools and technique's in order
to promote their innovative products and
services in marketplace.
 Brand based approach: By using this
method company identify reactions and
preference of customers towards
beverages.
 Brand Revitalisation: It is also
essential for the organisation to
revitalisation their products and
services in marketplace.
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tool company try to put their strong
image in client's mind.
Brand Equity Audit: It is mainly identifies the SWOT analysis of companies are as below:
SWOT Analysis Coca-Cola Pepsi
Strength Strong Advertising and
marketing.
World's largest and biggest
beverage industries.
Weaknesses Lack of classification Negative Publicity
Threats Local brands in various
nations.
Maximised Competitions
carbonated drinks business.
Opportunities Growth and development in
Beverage consumptions.
Decreased cost of productions
material.
M5 Critically evaluation of techniques and tools for measuring brand value
Quantitative, Quantitative and Comparative tool are essential for the company to analysis
brand value in an effective manner (Dinnie, 2015). All these are most important for the those
organisation to easily evaluate customers taste, preference and market trends.
CONCLUSION
As per the above mentioned report, it can be be concluded that brand-management is
important part of the company development. There are different tools such as Keller’s Brand
Equity Model, Ansoff's Matrix, SWOT Analysis etc., all these are important in order to achieve
long term goals and objectives. Qualitative and quantitative method also important in order to
maintain and retain long lasting relation with customers in limited time period.
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REFERENCES
Books and journal
Ashworth, G. and Kavaratzis, M. eds., 2010. Towards effective place brand management:
Branding European cities and regions. Edward Elgar Publishing.
Brodie, R. J. and et. al., 2013. Consumer engagement in a virtual brand community: An
exploratory analysis. Journal of Business Research. 66(1). pp.105-114.
Buil, I., De Chernatony, L. and Martínez, E., 2013. Examining the role of advertising and sales
promotions in brand equity creation. Journal of Business Research. 66(1). pp.115-122.
Christiaans, L., 2012. International employer brand management: A multilevel analysis and
segmentation of students' preferences. Springer Science & Business Media.
Dempsey, J. M. and Gruver, E., 2012. “The Public Interest Must Dominate”: Herbert Hoover
and the Public Interest, Convenience, and Necessity. Journal of Radio & Audio Media.
19(1). pp.96-109.
Dinnie, K., 2015. Nation branding: Concepts, issues, practice. Routledge.
Du Preez, R. and Bendixen, M. T., 2015. The impact of internal brand management on employee
job satisfaction, brand commitment and intention to stay. International Journal of Bank
Marketing. 33(1). pp.78-91.
Ertimur, B. and Coskuner-Balli, G., 2015. Navigating the institutional logics of markets:
Implications for strategic brand management. Journal of Marketing. 79(2). pp.40-61.
Kapferer, J. N., 2017. Managing luxury brands. In Advances in Luxury Brand Management. pp.
235-249. Palgrave Macmillan, Cham.
Kelley, L., Sheehan, K. and Jugenheimer, D. W., 2015. Advertising media planning: a brand
management approach. Routledge.
Li, G., and Kambele, Z., 2012. Luxury fashion brand consumers in China: Perceived value,
fashion lifestyle, and willingness to pay. Journal of Business Research, 65(10).
pp.1516-1522.
Morgan, N., Pritchard, A. and Pride, R., 2011. Destination brands: Managing place reputation.
Routledge.
Santos-Vijande, M. L., and et. al., 2013. The brand management system and service firm
competitiveness. Journal of Business Research. 66(2), pp.148-157.
Som, A. and Blanckaert, C., 2015. The Road To Luxury: The Evolution, Markets and Strategies
of Luxury Brand Management. John Wiley & Sons.
Wallace, E., Buil, I. and de Chernatony, L., 2014. Consumer engagement with self-expressive
brands: brand love and WOM outcomes. Journal of Product & Brand Management.
23(1). pp.33-42.
Online
CBBE Model of Brand equity. 2018. [Online]. Available
through:<https://www.mindtools.com/pages/article/keller-brand-equity-model.htm>.

Ansoff's Growth share matrix of Coca-Cola. 2018. [Online]. Available
through:<https://themarketingagenda.com/2015/03/28/coca-cola-ansoff-matrix/>.
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