Importance of Branding as a Marketing Tool and its Emergence in Business Practice

This document discusses the importance of branding as a marketing tool and its emergence in business practice. It explores key elements for successful brand strategy, portfolio management, brand hierarchy, and brand equity management. The document also provides insights into how brands are managed collaboratively and in partnership at both domestic and global levels. Additionally, it discusses various techniques for measuring brand value.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Importance of branding as marketing tool and how it has emerged in business practice......3
P2 key elements for successful brand strategy for managing the brand equity...........................5
P3 strategies of portfolio management, brand hierarchy and brand equity management............7
P4 brands are managed collaborately and in partnership both at domestic and global level.......9
P5: Various measuring brand value...........................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Brand management is the marketing function which uses tool so that company can
increase the brand value. Effective brand management help company to take high prices on
products and also getting customer loyalty (Swaminathan and et.al., 2020). Brand manager create
brand awareness through logo, product design, packaging etc. if company have strong brand then
it will help to increase market share and taking the competitive advantage. Lidl GB has started in
1994 and deals in retail, grocery etc. and have supermarket chain. Company have many stores
worldwide and known for the best quality of products at reasonable price. They are food retailer
and a well-known German brand. This study will focus on importance of branding as marketing
tool and how it has emerged in business. Analysing components of successful brand strategy for
building brand equity. Further will analyse strategy for portfolio management, brand hierarchy
and brand equity. Evaluation of how brands are managed collaboratively and in partnership at
global and domestic level. This report will also study types of techniques for measuring brand
value using examples.
MAIN BODY
P1 Importance of branding as marketing tool and how it has emerged in business practice.
Branding:
Branding is the marketing tactic under which company create logo, design etc. so that
company can easily identify by people. Through branding company can create their own identity
which is different from the competition and getting loyal customers.
Importance of branding:
increase market share and revenue:
Lidl Gb believes that when branding is done in effective manner then it helps in increasing
market share which will increase the revenue of company. Through branding company can also
go for expansion and it increases the reach of company. Increase in the market share means
increase in customers. It will also help in enhancing brand recognition.
Company can face crisis:
if in future company face any quality issues then branding can save them as company has
extensively promoted for the quality they are providing which help the company to overcome
from crisis. As there consumers know that this company cannot compromise on quality as it

never does. If company will ever go through quality issue then branding will definitely save
them.
Keeping away from new competition:
If Lidl GB has targeted the market already then it will difficult for new brand to enter the market
so threat from new entrants will be limited only (Kasapi and Cela, 2017). When company have
strong brand image then it will become difficult for new competitor to beat company. So here
company gets competitive advantage.
Increase workforce productivity:
If the brand in known then people will like to work with that company. This will help the
company in getting good performer employees who have good knowledge and skills and when
employee is working with good brand then it will raise their confidence which will enhance
motivation and that will help in increasing the productivity. Every employee want to work with
company which have good brand image because this will help employees in their career growth
as well. If in the future they will switch to other company then the work experience from well-
known company will help them in getting good hike.
Increase profits:
This is the main advantage of branding that people are ready to pay more for good branded
product because they believe in that brand which will help the company in getting higher profits.
This will reduce bargaining power of buyers as for good quality they are ready to pay more.
Profits will increase due to increase in sales, branded products are preferred by consumers and
for good company product consumers are ready to pay more also.
Help to attract new distributors:
Lidl GB is a well-known brand so it is easy for them to attract more distributors at domestic and
global level because distributors are willing to work with the brand which are in demand by
customers and can get high return on investment. Every distributor want to work with the
branded company because they are familiar within the customer so customer easily purchase the
product.
Branding emerged in business practice:
branding builds trust
Consumer trust those companies which have brand recognition as branding signifies standard of
company. Lidl GB make sure that their customer get good experience from the products which

are manufactured by them because if the customer is satisfied then only they will buy again from
the company. Trust will also help the company to survive for longer period.
Building financial value:
If company have good brand image then that will increase the company's financial value because
it increases share value of company and company enjoy good financial position in the market.
Getting new customers:
As through branding company do promotion and through promotion company gets new
customers. When there is established brand that it is recognized from its logo or design only so
that benefit for company in getting new customers as it is already the recognized brand.
Branding helps in advertisement:
With the help of branding company can do advertisement and marketing effectively as Lidl GB
is a big brand so that is helpful during advertisement on social media because company have
many followers on social media platforms which help them to covey message easily as through
social media large customer group can be targeted.
Brand facilitate emotional connection with customers:
Customers emotionally gets connected with brands which is already established because
customer feel happy when they buy products from the company (Gielens and Steenkamp, 2019).
P2 key elements for successful brand strategy for managing the brand equity.
Brand equity:
Brand equity indicates total brand value. It is the sum total of asset and liabilities which
are included with the brand and also define the relationship which company have with the
customers which help to improve brand image (Keller and Brexendorf, 2019).
Key elements are:
brand loyalty:
Brand loyalty can be related with the customer attachment with the brand when compare with the
rival companies and factors to know this are price, quality, purchase the product again etc. lidl
GB has attained loyalty because there customers has stick with the company and hardly switch to
other brand. Through increased loyalty company gets many benefits like their marketing costs
has reduced, increase in sales which results in increased profits and also get opportunity to
connect with new customers.
Brand awareness:

Brand awareness is the vital thing because through this only consumer will come to know that
how you are and what products and services you offer (Foroudi and et.al., 2018). When
consumer have awareness about the brand then only they will recognize the brand. With the help
of marketing technique company can attract consumers towards the brand. Lidl GB use social
media for promotion which attract the customers in such a manner that they choose their product
over their competition. Brand awareness enhances customer commitment which help in making
the brand worth it.
Brand quality:
Brand quality is the important reason for customers to be considered because this is reason that
customer make a purchase. Lidl GB is known for manufacturing the best quality of products and
the all the product which falls in their product portfolio are of supreme quality. When company
manufacture good quality of products then they gain trust of their customers and that will help
them to achieve sustainable brand equity. If business want to survive for the long term then they
have to focus on quality because quality will help the business to take the competitive advantage.
Brand association:
Brand association will help the customer to know the information about the brand. It
differentiates the company with its competitors (Stojanovic, Andreu and Curras-Perez, 2018). It
gives consumers reason to make a purchase and also bring positive behaviour towards the
company. Lidl GB have strong brand association which will help company in attracting the
customers.
Experience:
Experience is the another component for brand strategy. The experience which customer will get
when they will visit company's website or with interactions when they had made purchase or
with other process through which they had engaged with the brand. Company should treat their
customer in such a manner that they leave good impression on them. Customer experience is the
important factor of brand strategy because if customer will get bad experience then he or she will
never buy.
Personality:
Brand personality is the important factor which include tone, value etc. creating good personality
will definitely take time. A successful brand strategy is those strategies when customer waits to

buy products from you company. Good personality should be consistently maintained by
company so that can bring customer loyalty (Chandra, 2017).
Consistency:
Consistency is essential and lidl GB maintains the consistency. Consistent strategy help in
getting loyal customer, and they also recognize company easily. Consistency can be in terms of
quality, quantity etc. company should consistent about their good quality because compromising
on quality can reduce company's sales.
Employee activism:
Employees should also engage in other activities apart from their job role. They should help
company in reaching towards goals and objectives of the brand. Employee must provide good
customer service so that customer can get good experience. Company should train their
employees that how they can actively participate with the customer in order to increase the sales.
As employees represent company, so they should treat customers in such a manner that will
increase customer retainment.
Brand tagline:
Brand tagline is the small sentence or message which company gives to the customer. It is also
used by company to tell brand story (Platanakis and Urquhart, 2019). Company should wisely
choose their brand tagline because it will represent the complete brand. It helps in reflecting
brand positioning. Lidl GB believes that strong tagline will help company in getting recognition
which will last for longer time. Although tagline is very small but the meaning which is hidden
behind will define company and in what company deals in.
P3 strategies of portfolio management, brand hierarchy and brand equity management.
Portfolio management:
Portfolio management is done so that high return can be generated through low risk.
Portfolio management strategies have two approaches which are active and passive portfolio
strategy.
Active portfolio management strategy:
In this type of portfolio management, there is much focus on getting more returns by portfolio
manager (Liang and et.al., 2018). Lidl GB managers are investing resources in the security
market. There the manager is purchasing bonds, shares or debentures to that can get good returns
in the future. Shares are purchased by portfolio manager when the prices of shares are low and

sell them when the values increase. Active investment is done in this strategy so that good
returns can earn in the future.
Passive portfolio management strategy:
this portfolio management strategy is related to the fixed profile and that can also relate with the
market trends. Here investment is made by the managers in the index funds. It gives low returns
but gives the continuous returns which is helpful to take profits in the long run. This strategy
mostly focus on increasing diversification (Herrero, San Martin and Collado, 2017). It is
opposite when compared to active portfolio strategy.
Brand hierarchy:
Brand hierarchy which is also known as brand architecture is a kind of brand strategy which
builds the relationship within the business. Under this strategy similar products and services are
grouped together.
Branded house:
Branded house is the common form of brand hierarchy. Google is the example of this style as the
company have sub brands in it. But the sub brands are marketed by the parent brand only.
Google has many sub brands like gmail, google maps etc. these sub brands cannot operate
independently but never can take place of the main brand. This branding strategy gives many
benefits to the company through this company can offer many products and services by using
one brand only. It is easy and help to avoid the confusion because products which is offered by
the company comes under same brand. Google is a big brand and this strategy is helping them to
attain the success. Through this strategy company can launch innovative products in the market
which will result in customer loyalty (Junior, 2018). It has certain limitation also like if the
parent brand is week then it will difficult for company to get the success.
House of brands:
it is not similar with the branded house. The main focus of the branded house is on the single
brand only. House of brands contain many brands which are independent and not dependent on
primary brand. Each brand have its separate audience and marketing tool. P &G is the example
of house of brands as it have many sub brands under it like tide which have separate audience or
head and shoulder which have its own audience. Many large companies have taken advantage
from that and has added sub brands. It has wide range which can easily target the audience and
company also launch unique products which help them to get new customers.

Hybrid:
The hybrid brand hierarchy is the combination of brand strategies (Herrero Crespo and et.al.,
2017). Amazon is the company which uses hybrid strategy. Corporate branding strategy is used
by the company which improvise the brand equity of main brand so that they can promote their
products and services like amazon kindle or amazon prime.
Brand equity management:
Brand equity shows the value a brand is having. In these brands assets and liabilities are
connected with the brand name and logo. To manage the brand equity is essential so that can be
increased its value. Brand recognition cannot be same but it has to be balanced as it can change
with market, consumer behaviour, government regulations etc. brand equity is managed to attend
brand recognition (Ogunnaike, 2017).
Aker brand equity model:
brand loyalty:
It means the loyalty which the consumer is having regarding the brand. Lidl GB is known for
good quality products which help the company in improvising brand loyalty.
Brand awareness:
This shows that how much brand is popular in the market. It is essential for brand recognition.
Perceived quality:
it refers to reputation of brand and its product quality which is perceived by the customer. Lidl
GB have good brand image.
Brand associations:
It deals with the rate brand is recognized.
Proprietary asset:
It means that what brand is having in terms of trademark, patents, intellectual property etc.
P4 brands are managed collaborately and in partnership both at domestic and global level
Brand collaboration:
Brand collaboration means when collaboration is done between two or more companies
for manufacturing unique products or services so that can take competitive advantage. It is the
strategy under which company works together in order to increase their sales and market share.

Brands are managed collaborately:
Companies are continuously exposing with the dynamic market conditions with the changing in
government rules and regulations. Customer preferences and choices are also changing.
Company have to analyse market trends before manufacturing the new products. Competition is
rising day by day which are adversely affecting company's profits and sales. Company have to
face decrease in profits and sales because of entry of many rival firms. Rival companies are
providing same product at low price so facilitating cut-throat competition. Nowadays customer is
much aware about the market conditions and have knowledge about business operations.
Customers are also having lot of substituted which increasing bargaining power of customer.
This is the reason that brand are preferring brand collaboration so that they can provide
innovative products to the customer (Vasileva and Vasileva, 2017).
Social media and digital marketing is evolving, so for customer it has became more easy to
compare your product with the rival company's product. In order days new companies were
going for brand collaboration because they want growth and that they can easily get if they are
associated with some established brand. But with the changed time established companies are
opting for brand collaboration because of continuous threat by rival companies and the complex
nature of market. Brand collaboration are done by those companies who have common goals,
objectives and target markets.
Brand partnership:
Brand partnership means when two or more brands become partners so that business can done
effectively. In partnership company will share risk and return. Both company can get advantage
of each others knowledge and skills.
Brands are managed in partnership:
When brands have partnership then companies under partnership can enjoy each other strength
which can be in terms of knowledge or skills. In partnership both brands should work in such a
manner that they bridge each other gaps. Effective partnership will help the company in
increasing market share and getting customer loyalty (Sharma, 2017). Here problems and issues
are solved together and when both parties are involved in problem solving the company can get
effective solution. For successful partnership same goals and audience are only not required. But
other factors also should be similar before doing partnership.

Brand extension- it is the organizational strategy in which companies like Lidl GB tend to
extend its geographic reach in various different locations through which company tend to ensure
that it is able to increase its customer count by which chances of goal achievement can be
increased.
Vertical extension- This section consists of introducing new product in the existing
organizational product quality through which it can ensure that customer is able to analyse the
changing level of the developed products through which company can establish premium pricing
for the achievement of a desired target (Mesa and et.al, 2020).
Line extension- This is an type of extension in which the company tends to introduce new type
of products and services to the customers through which it tends to ensure that it is able to
establish diversity in its product placements. Through which Lidl GB tend to ensure that it is able
to attract wide range of customers towards the company.
Global collaboration- The tend to establish business collaboration with some of the biggest
global organizations like LGFA (Ladies Gaelic Football Association) (A better tomorrow,
2021).through which the company is able to provide international level of products to the
customers by which it has managed to achieve an efficient competitive edge.
Domestic collaboration- With that Lidl GB also tend to establish several domestic
collaborations with several organization by which it tend to make sure that it is able to utilize
their distribution network for increasing organizational reach in various locations and also
through this step it can make sure that it is able to implement actions like customer sharing for
increasing organizational customer count.
P5: Various measuring brand value
Brand value-
Brand value is the overall cost of an organization, which is being used for evaluating the
financial worth of an organization within the market. In which high brand value represents high
organization's market share within the market place and tend to represent the goal achieving
capability of the company.
Following are the techniques for measuring the organizational brand value.
1. Cost-bases brand valuation- It is a simple method in which company tend to analyse its
economic growth which it is having by differentiating its economic growth in context

with the organizational expenditures. This is a simple method for Google for analysing
the level of economic growth which it is having.
2. Income based brand valuation- Organization can analyse the increment and decrement in
the organizational brand value by analysing the company's performance through the
income which it is having. This is an effective way for Google to analyse the
differentiations which it is having in its brand value.
Brand awareness- Brand awareness is a marketing terms which is being used for evaluating the
degree to which customer recognizes a product through its name. In this high brand awareness
represents that company is able to achieve high level of customers engagement for the
achievement of desired organizational target.
1. Survey- It is a method in which companies tend to implement market survey through
various ways in which it tends to identify the level of brand awareness which the
company is having within the market place (Moliner-Velázquez and et.al, 2019). Thus is
if the level of brand awareness is comparatively low organizations like PNG have to
promote themselves so that they are able to increase organizational brand awareness.
2. Organizational website- Companies can also identify the level of brand awareness which
they are having through analysing the amount of traffic which it is having on company
website. Through this analysis PNG can identify the level of engagement which it is
having and can compare it to required amount of traffic on the company website.
Consumer Attitudes- Customer attitude is the overall customer's perspective about the
organization which tend to include customer's belief, feeling which it is having towards the
organization and the behavioural intentions. For developing its high level of engagement with the
organization this is used for evaluating the customer's loyalty towards the company.
Semantic Differential- It is and method of directly analysing the customer's attitude towards the
organization, companies like Amazon tend to take feedbacks in the form of rating from the
customers on the basis of their experience which they achieved from the company and then tend
to analyse the different levels of working (Fuentes-Blasco and et.al, 2017). Through which it
tends to ensure that it is able to improve the customer's experience with the company.
1. Projective Techniques- It is an indirect method of analysing the customer's attitude
towards the company in which the organization tend to involve an individual with an
ambiguous amount of information. Then brief information is provided regarding the

organizational activities of Amazon, therefore the individuals tend to make decisions on
the basis of brief information which tend to showcase the real point of view which the
customer is having towards Amazon.
Purchasing intent- Purchasing intent is probability which company tends to have for identifying
the selling probability of the organizational product to the customers. In this high probability
tend to represent high chances of an efficient sales through which company can achieve an
efficient economic growth.
1. Customer sampling- Organization can analyse the level of purchasing intents which the
customers are having by analysing their requirements and then through comparing it with
the level of services which the company tend to provide to them (Wilshaw, 2018).
Through this evaluation organizations like Lidl GB can ensure that it is able to provide
new and rare products to the customers by which it can increase the chances of achieving
an successful organizational sales.
2. Review intentions- It is important for organizations that it is able to fulfil the customer
requirements and because of which it has to increase customer's level of engagement in
the organizational activities by which it can make sure that it is able to reduce the chances
of brand switching (CHICKEN, 2020). This for achieving this the company has to take
customer's reviews on the organizational products and then implement improvisations on
the basis of instructions which is being provided to the customers. Through which it can
improve the chances of having a successful purchase.
CONCLUSION
Through this report it can be concluded that brand management is very essential for
success of company. Brading is also considered as the marketing tool. Lidl GB also has used
branding strategy to increase the market share. This report has also analyzed key components for
successful brand strategy which is helpful in managing the brand equity. Brand loyalty, brand
awareness, brand quality etc. are some elements of brand equity. Company have considered these
factors if want to grow and retain customers. Report has shed light on strategies related to
portfolio management which include passive portfolio strategy and active portfolio strategy.
Brand hierarchy is also explained with the help of three models which include branded house,
house of brand and hybrid strategy. Further it has evaluated that how brands are managed in

partnership and collaboration at global and domestic level. Different techniques has evaluated in
the report which is used for measuring the brand value with the help of company's example.

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