Brand Management: Importance, Strategies, and Hierarchy

This document discusses the importance of branding as a marketing tool and explores the strategies and techniques for successful brand management. It also delves into brand portfolio management and illustrates brand hierarchy using appropriate theories, models, and frameworks. The case study focuses on Next Plc, a British multinational organization in the footwear, home, and clothing industry.

Brand Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Importance of branding as a marketing tool, analysing components that helps to have
successful brand strategy, evaluating how brand is managed successfully over time using
theories and models................................................................................................................3
TASK 2............................................................................................................................................7
Critically analyse brand portfolio management and brand portfolio management illustrating
brand hierarchy of brand using appropriate theories, models and frameworks.....................7
TASK 3............................................................................................................................................9
Critically evaluate different techniques of brand extension and brand leverage to expand brand
over time in both domestic and international market and evaluate collaborative partnership9
TASK 4..........................................................................................................................................11
Critically evaluate techniques to measure brand value, brand awareness, market share,
consumer attitudes and purchasing intent. Evaluate brand equity and audit and brand tracking
techniques.............................................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................15
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INTRODUCTION
Brand management is defined as procedure to identify core value of specific brand and
reflecting those among targeted consumers (Abrahams, 2016). Brand can be product, person,
service and corporate. This is referred as planning and analysis to perceive value of brand at
marketplace. It is important to develop relationship with consumers so that products can be sold
to them in an effective and efficient manner. Elements of brand are look, packaging, designing,
price and so on. The organisation chosen for given assignment is Next Plc which was founded in
1964 at Leeds, United Kingdom. It is British multinational organisation dealing in footwear,
home, clothing products. It has more than 500 stores in different locations to provide consumers
with highly quality goods and services. The aim of report is to discuss about significant of
branding as marketing tool along with their key components for managing as well as building
brand equity. It has also covered various strategies for management of portfolio, equity
management and brand hierarchy. Brand has to be managed in both national and international
level with help of partnership and collaboration. The techniques are used to measure as well as
manage brand values.
TASK 1
Importance of branding as a marketing tool, analysing components that helps to have successful
brand strategy, evaluating how brand is managed successfully over time using theories and
models
Brand
It is defined as design, term, name, symbol and other features which helps in
identification of seller's product and services from others (Anagnostopoulos and et. al., 2018).
These are used in marketing, advertising, business for recognition.
Importance of Branding
Branding is very important for organisations, consumers and intermediaries as it helps in
creating awareness among users regarding products and services. In context of Next Plc,
branding providing advantages in terms of control and maintenance along with reinforcing brand
by supporting business and their goals. This provides consumers awareness about business and
their products. Branding should be done in innovative and effective way for positive outcomes.
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Brand Equity
This is defined as value premium that is generated by company through product with help
of recognizable name whenever it is compared to generic equivalent (Balmer and Chen, 2017).
The organisation has to create brand equity of their products and services by making it more
memorable, recognizable, high quality, reliability. Next Plc develop as well as grow brand equity
by following stages which are as follows:
Defined how you want to be perceived- The respective organisation has to build brand
in consumer's mind successfully. This includes preferences, taste, experience of customers which
is related to products. Such step help business to know about likeness of their product by users.
Respective organisation has to manufacture products as per their consumer's requirements.
Organise business based on promise- This stage is related to building brand on basis of
promise made by business. The respective organisation has to fulfils their consumers promise in
best possible manner.
Communicate promise- In this stage, organisation has to make strategies according to
promise which they have made with their consumers. The colour, design, text is provided to
goods as per communication made with their users in best possible manner.
Be consistent- According to this stage, business has to remain consistent and keeps on
manufacturing according to need and demand of consumers. They should not violate promises
they have made with users. This assist business to develop relationship and build brand value in
mind of consumers.
Role of Marketing Department
Marketing Department is very important for business which plays several roles and
responsibilities in creation of brand equity in consumer's mind. Next Plc is large organisation
which has to play role in order to create brand equity which is mentioned below:
Awareness- The marketing department of Next Plc has to play different role in order to
create awareness among consumers regarding products and services in an effective and efficient
manner (Beck, 2016). They uses channel in order to promote goods and services and build
awareness among users.
Differentiation- It is very important for Next Plc to produce differentiate and unique
products from competitors. Here, marketing department has to focus on promoting as well as
producing different goods and services.
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Value- Products manufacture by respective organisation should possess some value as
consumers are willing to pay high price for innovative and differentiate goods and services. This
is the role of marketing department to build brand equity and positions.
Accessibility- Whenever consumers ask for products, it should be made available to them
which helps in creating brand image in consumer's mind (Buil, Catalán and Martínez, 2016). It is
role of marketing department to create awareness about arrival of new products and services.
The respective organisation is using several strategy to strengthen brand equity, brand
extension, reinforcing and revitalising brands with helps of innovation. They are described
below:
Brand Equity Strategy
The Keller Customer Based Equity (CBBE) model is used for strengthen brand equity
that is in pyramid shape which has four steps. They are as follows:
Brand Identity- This is related with brand identification which should be varies in terms
of features as compared to competitors (What is customer-based brand equity, 2020). The
innovation should be used by respective organisation to identify brand at marketplace.
Brand Meaning- This is second stage which includes imagery as well as performance in
consumer's mind. It is very important for Next Plc to become meaning at marketplace in an
effective and efficient manner.
Brand Response- This is defined as feelings for brand which is possessed by consumers.
It includes feeling and judgement of individual possessed for brand to enhance value. The
respective organisation has to improve consumer's experience.
Brand Relationship- It is considered as last stage of CBBE model in which relationship
should be maintained among company and consumers to get positive outcomes.
Brand Extension Strategy
The respective organisation has to use strategy for strengthen brand extension through
several ways. They are as follows:
Measure Brand Equity- This is defined as first stage to measure brand equity to identify
possible impacts at future time period (Buil, Martínez and Matute, 2016).
Measure Potential Risk- For brand extension, both positive as well as negative effects
should be identified and measured. Next Plc has to implement brand extension through
measuring all risk in an effective and efficient manner.
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Leverage from business core competency- In this stage, business can get core
competitive advantage for new products by using skills to manufacture goods. This assist in
creation of market to be different from competitors and enhancement of efficiency.
Brand Reinforcement Strategy
Brand Reinforcement is defined as maintaining brand equity through keeping brand to be
alive for new and existing consumers (Cooper, Merrilees and Miller, 2015). This is possible
through introducing focuses on introducing new, unique, different products along with satisfying
requirements of users. The respective organisation has to use brand awareness and brand image
as brand reinforcement strategy. They are described below:
Brand Awareness- The respective organisation has to use various awareness channel in
order to create promotion and awareness among users in an effective and efficient manner.
Brand Image- This include brand image which is different from other brand and
competitors. It helps in creating unique and favourable image in minds of consumers. Next Plc is
large business which possess high brand value in order to create image.
Brand revitalization Strategy
Brand revitalization is the strategy that has to be adopted by business while their products
and services reach at high maturity stage or profits has decline (DiMartino and Jessen, 2016). It
is also regarded as method to bring product back to market by adding new and innovative
features in it. The respective organisation has adopted following strategy to revitalise their
products and services. They are:
Rename brand- In this organisation change name of brand in an effective and efficient
manner. This is done when there is decline in brand value and rename has to be performed.
Reaching Out to Community- The brand should be based on community oriented that
helps in revitalise image as well as reviving lagging sales in effectual manner.
Brand crisis can be overcome by following various steps such as:
Planning- Each and every activities has to be planned in an advance for positive
outcomes.
Acknowledge with problem/issue and apologise- The organisation has to deal with
problems, issues and apologise in an effective and efficient manner so that crisis can be reduced.
Getting outside help- Respective organisation has to get outside from help so that they
can make their own decisions.
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Informing- All activities has to be communicated and informed to high manager in best
possible manner to achieve set outcomes.
Monitoring then responding- Firstly manager has to monitor all step and then they
should respond it in positive manner to get best outcomes (Du Preez and Bendixen, 2015).
This is very important to interact with each and every customers in an effective and
efficient manner so that goal and objectives of business are achieved. Next Plc can use
technologies to engage their customers with them such as social media, internet, online
awareness and so on.
TASK 2
Critically analyse brand portfolio management and brand portfolio management illustrating
brand hierarchy of brand using appropriate theories, models and frameworks
Portfolio Management
It is considered as an art as well as science of formulating decision regarding investment
mix and policy, allocation of assets for entities and individuals, matching investment to goals and
balancing risk against risk. Brand management is regarded as marketing function which utilises
some techniques and strategies for enhancing brand over time or product line value.
Brand Portfolio Strategy
It is define as an umbrella where whole brand line are associated with particular entity
that serve several market segment needs (Ertimur and Coskuner-Balli, 2015). Herein, each single
brand performs their own business practices and another operative areas. Moreover, it enjoys
advantage with various brand that belongs to similar portfolio as they may utilise resources and
another promotional practices done through different brands that belongs to same portfolio. So,
it will aids Next PLC to ascertain about improving optimal structure of brand utilising sub
brands, endorser brand and others. In context of respective company, this may be states that it
utilised their own trademarks for improving its distinguish image at market as comparison of its
rivals. So, for this they opt some strategies for managing their portfolio are described below:
Active portfolio management- This is considered as an efficacious strategy that is
utilised through manager and entities who has ability to bear risk into market. Through aids of
this, it may bale to attain gainful results. This is utilised through only well known brands who
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has more market share. This needs more market research in order to develop great returns. Next
Plc utilised respective strategy for beating competition and enhancing market share.
Passive portfolio strategy- This is utilised through those entities that are not interested
to bear risk into market but want to develop as well as improve (Godey and et. al., 2016). This is
vital for enterprises to utilised that aspects that facilitates them profitable returns. Respective
strategy is not suitable through Next PLC as they do not render more advantage. As Next PLC is
leading brand that have to take risk for longer survival.
Hierarchy Management of Brands
This is also known as brand architecture that is states as brands framework into entities.
Moreover, this explains the way brand is associated with firm or is distinguish with one another.
This is also considered as integrated procedures for brand development through assists of
relation between option of brand. So, Next Plc brand portfolio models are discussed below:
Branded properties- In this model or strategy, the brand manager utilises only one brand
fro whole goods or categories (Heding, Knudtzen and Bjerre, 2015). Moreover, it aids in
concentrating upon whole brand as well as enhances scale.
House of brand strategy- This is considered as strategy which describes that entities
have to promote its whole sub brands individually for improving its own brand value for each
products. Herein, negligible priority is provides to main brand. Moreover it needs huge range of
monetary resources for developing separate branding strategy for whole single sub brand. In
respect to Next PLC, their manager may opt this strategy for promoting an brand such as Lipsy
London, Next retail Ltd, Next Distribution LTD. and others at competitive market. It enhance its
sales performance for whole of their each brand.
So, for development of hierarchies Next Plc utilises:
Corporate branding- This is considered as marketing approach as per that the business
manager basically indulge in promotion of well known goods or services of one entity. This
states that the main intent of promotional techniques come into branding which is helpful in
enhancing their performance of sales for developing profitability.
Umbrella branding- This is also known as family branding. It is considered as
marketing activities that includes utilisation of individuals brand name for sale of two or more
associated products. This is utilised through NEXT Plc with a affirmative brand equity. Such as
Lipsy London, Next retail Ltd, Next Distribution LTD and many more.
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Strategies for Developing Brand Equity
There are various strategy which is utilised to manage brand equity which can be opt
through Next Plc are discussed below:
Holding up brand image- It is considered as vital strategy that is utilised through brand
manger of Next PLC is to maintain its brand reputation at market for managing their own brand
equity effectually (Lin, 2015). It may be appropriately performed through rendering actual
product inclusion of similar characteristics that has been promised to audiences. This will
consider as influential aspects for business as it build loyalty among clients.
Innovation- This is crucial for Next plc is to perform differentiation strategy while
launching new goods at market area. It will perform as performance booster for entities because
it influence consumers with new products. Moreover, it will support them to gain competitive
advantage.
Market research is considered as a procedures of accumulating, examining and
interpretation data related to market about goods or services that entities offered for sale into
marketplace. This is regarded as key brand management tools as this helps NEXT plc to improve
their effectiveness, spurring innovation, finding problems with its brands and others. Therefore,
with the assistance of all these they can able to manage as well as enhance brand.
TASK 3
Critically evaluate different techniques of brand extension and brand leverage to expand brand
over time in both domestic and international market and evaluate collaborative partnership
Brand Extension
It is defined as brand starching which is marketing strategy (Liu and et. al., 2015). This
helps in leveraging popularity as well as reputation of brand in order to enhance and increase
demand of goods as well as services in an effective and efficient manner. It is very important for
organisation to uses well established brand name so that customers feel attracted towards buying
of products and services. There are various approaches and strategies which are adopted by Next
Plc in order to do brand extension. They are as follows:
Re-positioning same product in a different form- In this approach, respective
organisation can do brand extension by re-positioning their product in different form so that they
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can attract large number of people in an effective manner. For example, Cadbury re-position
their products on basis of occasion, normal days and targeted all category of consumers.
Re-positioning different product in the same form- In this approach, respective
organisation has to re-position their different product in same form (Paul, 2019). For example, in
clothing industry, there are different products for the specific genders like for women, there are
western wear, traditional wear and fusion.
New distributor, franchise or relationships- The respective organisation has to select
new distributor and franchise for doing brand extension. This helps them to increase their market
share and brand value at competitive market.
Brand name or design change- In order to do brand extension, it is important to design
brand name which helps in attracting large number of consumers in an effective and efficient
manner. This helps them to rise in profit for products and services.
Fit and Leverage Brand Extensions
Fit and Leverage in brand Extensions allows business in measuring consumer purchase
intent before they make or plan to do investment in brand extension (Pecot and De Barnier,
2017). Such strategy helps in providing huge advantage to business as they keep same logo on
various products each and every year in an effective and efficient manner.
Brand collaboration and partnership
For brand collaboration and partnership, Next Plc has used following way:
 Marie Claire has done partnership with Next Plc in order to fulfils need and demand of
consumers in an effective and efficient manner.
 It has launched more than 100 brands across all beauty categorises for their consumers
for positive outcomes.
 Marie Claire's has influenced beauty sector to remain unparalleled with companies and
consumers.
 Partnership has created USP features exclusive bespoken content through Fabled by
Marie Claire editorial team by experience in world of beauty.
Global branding and positioning
For global branding and positioning, respective organisation uses various channels in
order to create awareness among consumers regarding products and services in an effective and
efficient manner. It is very important to provide high quality goods and services to customers so
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that they feel happy and satisfied regarding brand and leads to create high position in minds of
consumers in appropriate way.
TASK 4
Critically evaluate techniques to measure brand value, brand awareness, market share, consumer
attitudes and purchasing intent. Evaluate brand equity and audit and brand tracking
techniques
Next Plc is using various brand measurement techniques for measuring brand awareness,
market share, consumer attitudes and purchasing intent. They are described below:
Brand Awareness
This is defined as method for creating awareness about brand consumer mind with help
of different channel. These techniques includes following:
Survey- This is the simple and easy method to create brand awareness in mind of
consumers (Rauschnabel and et. al., 2016). Such technique is limited through size of sample and
qualitative in nature. Next Plc is using technique in order to create awareness among consumers
regarding products. This assist in taking of right decisions by users to buy products.
Search Engine Queries- In current scenario, large number of organisations are using
search engine to find goods. These search engines helps in providing descriptions regarding
products and creating awareness in mind of consumers. This also helps in maintaining
relationship among information seeker and audience. The respective organisation is using google
for search engine for their customers.
Social Media Engagement- In current time, social media is used by large number of
business for creation of brand awareness. Next Plc is using social media for brand awareness so
that consumers can know about goods and services in an effective and efficient manner for
positive outcomes.
Market Shared
This means some percentage of business or total sales of market that is earned by
organisation over particular period of time (Rosenbaum-Elliott, Percy and Pervan, 2015). It is
calculated through sales of company over particular time period and dividing it by overall sales
of organisation. Next Plc uses different techniques to measure and manage market share. They
are as follows:
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Market Share Building – Such technique is done with help of market segmentation and
innovation of new product, promotion and distribution. It helps in growing value as well as
market share to earn sustainability and profit of business.
Market Share Maintenance – The organisation has to optimise their resources in order
to achieve grow at marketplace and gain success. Such technique is challenging for all types of
business. This can be possible through cutting prices of share at marketplace. Next Plc has to
adopt strategies like market fortification, product innovation and confrontation strategy which
assist in attainment of goal as well as objectives of firm.
Market Share Reduction- This is defined as technique which is used on permanent and
temporarily basis to reduce prices of products which helps in sustainability, growth and
profitability.
Consumer Attitudes
It is defined as feelings, behavioural intentions, beliefs for things or objects within brand
store or retail store (So and et. al., 2018). The people possess various attitudes and beliefs for
products and services. This helps in influencing others to purchase goods from marketplace. The
techniques to measure and manage customer attitudes are as follows:
Customer Satisfaction- In this strategy, customer satisfaction helps in influencing users
regarding organisation and their products and services. Next Plc has to focus on providing
premium value products and services to their users in order to survive at marketplace.
Non-Structured Methods- It means system which is not formal and has unsystematic
approach. With these method, Next Plc can know about their consumers and their attitudes
regarding goods and services.
Structured Methods- It is defined as formal as well as systematic sequence method
which is categorised into disguised and non-disguised form. Such method is applied by Next Plc
to know about attitudes of their consumers in an effective and efficient manner.
Purchasing Intent
It is defined as probability where consumer will buy goods and services (Zhang, 2015).
For evaluation of such, marketer need to apply predictive modelling to identify possibility of
future outcomes that is based upon historical data. This is called willingness of consumers to buy
goods and services. Some of the techniques used for managing and measuring purchasing intent
are as follows:
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Offers- The respective organisation has to provide high quality products by offering at
discounts to their users. This helps in increasing willingness of users to buy products and
services. This techniques helps in influencing their consumers and increase profits of business.
Affordable price- The respective organisation should charge affordable prices for goods
and services so that consumers can buy it in proper manner. Therefore, it is important to offer
both prices as well as quality to be good and premium value.
Relationship between branding and finance
Branding is considered as procedures which are included into developing a unique brand
name as well as image for products into the mind of consumers through advertising campaigns
(Buil, Catalán and Martínez, 2016). So for this Next Plc requires funds so there is a relationship
between branding and finances. Moreover, the brand equity have an affirmative relation with
stock returns, an incremental impact to another variables of accounting like net income of entity.
In addition to this, the stock market have most favourable responses towards brand extension of
higher esteem, higher familiarity brand as well as to low esteem. Therefore, all these states that
the relationship between branding and finance within respective organisation.
Brand Value
This is used in marketing organisation that helps in describing value of popular or well
known brand at marketplace (Cooper, Merrilees and Miller, 2015). It is also referred as brand
equity which depends on characteristics of goods and services. This is the process to calculate
amount of money or value paid for brand. This is significant to improve performance so that
goodwill, brand value and performance will rise. The application of brand evaluation are
financial transactions and brand management. The different approaches of brand value are as
follows:
Cost Method- In this method, on basis of cost of product, brand value is measured. For
evaluation of cost, various aspects are included such as historical, replacement, market value,
discounted cash-flow, brand contribution and inter brand method. Such methods are used by
Next Plc for their goods and services.
Market Based- It is the way of knowing value of product from market or from various
store before buying it (Du Preez and Bendixen, 2015). This includes points such as specific sale,
stock market quotations and so on. It is equal to market transaction price, offer, bid for identical
or similar brands.
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CONCLUSION
From the above report, it has summarised that business has to use various branding tools
to enhance sales and profit margins. Brand management is essential for business to manage their
brand at competitive market to achieve goal and objectives of firms. This is essential to manage
and build brand equity for success of business at competitive marketplace. Brand has to be
reinforced as well as revitalised by doing innovation. Portfolio strategies and hierarchy building
are important for organisation to create brand at various level and earning high profit margins in
an effective and efficient manner. With change in time, it is essential to do brand extension so
that products and services will not be vanished from market. The partnership and collaboration
are also used for positive outcomes. There are several measured used by organisation for brand
awareness, market share, purchasing intent and consumer attitudes.
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What is customer-based brand equity?. 2020. [Online]. Available through:
<https://www.qualtrics.com/experience-management/brand/customer-based-brand-
equity/>.
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