Importance of Branding as a Marketing Tool

This document discusses the importance of branding as a marketing tool and how it has emerged in business practice. It also analyzes the key components of a successful brand strategy for building and managing brand equity. The document covers topics such as portfolio management, brand hierarchy, and brand equity strategies. The case study focuses on Dyson Group Plc, a British technology company.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain the importance of branding as a marketing tool and why and how it has emerged in
business practice..........................................................................................................................3
P2 Analyse the key components of a successful brand strategy for building and managing
brand equity.................................................................................................................................6
TASK 2............................................................................................................................................7
P3 Different strategies related with portfolio management, brand hierarchy and brand equity..7
TASK 3..........................................................................................................................................10
P4 Determine the ways in which brands are managed collaboratively and in partnership at
global & domestic level.............................................................................................................10
TASK 4..........................................................................................................................................12
P5 Different techniques of measuring and managing brand value in organisational context. . .12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Brand management is defined as the process in which various steps are inculcated and
these are performed in order to elaborate put efforts so that value of the brand can be perceived
within market over a particular time period. Brand management is known as a function of
marketing in which various procedures and theories are associated in order to strengthen value
and name of the brand for company in effective manner (Paul, 2019). Function of brand
management allows the firm to enhance their customer base so as to retain them for longer
duration and to lead path of success and development. This is known as the practice in which
various dimensions are included such as price, product, channels of distribution, market position,
packaging and many forth which are associated with brand flourishing and attaining prominent
position in marketplace so that position can be enhanced so as to deal with major competitors.
The present report is based on Dyson Group Plc which is client of an advertising agency 'High
level Impression Ltd. Within this report understanding of management of brand is developed
along with this importance of brand is enumerated. Some of the models are applied in this report
such as portfolio management, brand hierarchy and brand equity management. In the last part of
report evaluation of various techniques and their measurement is designed in order to manage
brand for some particular organisation.
TASK 1
P1 Explain the importance of branding as a marketing tool and why and how it has emerged in
business practice.
“BRAND IS POWER”
Brands are defined as symbol, logo or name or statement which is representing specific
company within the market and by this the product or service of the company is recognised in a
way that they belongs to some specific industry. On the other hand brand is distinguishing
offerings of the organisation as they are providing distinguishable products and services in order
to maintain their brand position within marketplace. The result of branding is known as brand
equity and this is earned by the organisation within marketplace so as to make their offerings
highly recognisable and distinct in comparison with other. This is the responsibility of the
organisation that they develop brand equity which is dependent on their business and their
adopted strategies. Branding is known as the process in which offerings are presented in market

so as to catch potential customer and to enhance market presence so that place can be established
in the minds of customers due to which potential customer can be converted to real customer.
Branding is known as marketing activity in which various steps are included in which
major motive of businesses to catch and retain customer can be fulfilled, similarly this leads the
business to earn loyal customer as needs and demands are satisfied so as to align brand promises
with that. These are helpful in maintaining competitive edge and sustainability by which long
term profit can be earned (Urde, 2016). So with the help of successful branding prominent
position can be received by the business within industry and this leads the company to contribute
in their sustainability and profitability for long term time duration. In order to make strong brand
strategy market research is the major element which is required to be involved so that to
understand needs and demands of customer. The other step is to analyse market competition so
as to understand level of competition existed within marketplace. After analysing needs and
demands and understanding market competition ideas for differentiating product and services
can be ascertained and this is helping the company to become unique within marketplace. The
other next stage is to accumulate value proportion and to gather those factors which are unique
and providing benefits to the company so that they can stay within competition without getting
hindered by market competition. In the end marketing activities are included in the process of
branding in which appropriate measures are mitigated so as to take out most appropriate
outcomes.
The department of marketing is highly responsible for actions of marketing and to
execute them in such a way that role or branding and development of promotional plans can be
executed in easy manner. In order to attain high growth and development appropriate branding
strategies are to be used by business. Some of the benefits of branding are enumerated as under:
 Improve company's recognition: People are having composite task of remembering
name of the organization whose products are used by them. This is essential for the
company that their logo is designed in such a manner that this can provide distinct
identity to the business and can be recognized in easy manner (Kapferer and et. al.,
2017). Logo of Dyson is highly recognisable which helps them in enhancing recalling
value for customers.
 Builds trust within marketplace: When so many products are existed in the market
then this creates confusion in the minds of customer. So in order to avoid this confusion

with the help of appropriate branding Dyson can enhance trust for their customer which
increases satisfaction of customer.
 Increases market shares and revenue: Branding is one of the most prominent aspect of
business, high branding will be able to provide powerful position in the marketplace for
the company. For Dyson branding may help them in finding out immense opportunities
so that to enhance market share.
 Convert masses into new customers: Efficient brand image is leading in creation of
positive brand image within marketplace and minds of customer as well. This is helpful
in enhancing customer base due to which potential customer gets converted into real
customer in easy manner (Wang, He and Barnes, 2017). For Dyson as they are involved
in manufacturing of electronic items so by prominent branding their market share can be
improvised in effective manner.
Branding has emerged as a business practice for Dyson in below mentioned manner. in
 For the first manager of Dyson is required to identify their target customer so as to
research that their customers are interested in their product or not.
 The other step is to identify mission of the company so that to identify ideology of
Dyson.
 In the next step Dyson is required to recognise their rivals by which their products can be
differentiated in marketplace.
 After analysing in detail Dyson is required to enhance their value performance so that to
recognise distinctiveness and value of their products.
 Manager of Dyson is required to take decisions regarding guidelines which are
undertaken by them so as to understand market power.
 Within the last step manager of Dyson is required to perform market study so as to
market their brand. As marketing is having prominent role in creation of brand and this is
helpful in recognising needs and demands of customer. So by this brand equity of Dyson
can be intensified (Cannatelli, Pedrini and Grumo, 2017).

P2 Analyse the key components of a successful brand strategy for building and managing brand
equity.
Brand equity is defined as the proposition in which value is being generated in order to
understand uniqueness and higher position within industry. Brand equity is helpful in making
unique and higher position in the industry so that higher relationship can be extended as
compared to other brand (Liu and et.al., 2018). This is highly necessary that businesses involve
brand equity aspect in their functions so that to strengthen and enhance image in various market
segments. From the perspective of High level impression is an advertising company which is
having their business operations in advertising and helps in enhancing brand equity as well. The
Dyson Group Plc is one of the prominent clients of them and High level impression is
developing their brand equity.
Dyson Group Plc is a British technology company which was founded in the year of 1991
by Sir James Dyson, the company is involved in manufacturing of home appliances. The
company has announced to move headquarter from England to Singapore in order to
manufacture their electric vehicles but at the same time this plan was dropped by the company.
Dyson is having their operations in multiple countries and they have maintained deals with huge
retail stores and supermarkets in which their products are sold. Models of brand equity can be
used by Dyson in order to meet market competition. In order to enhance brand equity model of
the same can be applied which is elaborated as under:
Aaker brand equity model
This model of brand equity was propounded by David Aaker and according to the model
brand equity is defined as accumulation of brand loyalty, brand association and brand awareness.
Consumer provides value to the product when these three elements are merged together. In this
model three aspects are associated which are elaborated as under:
 Brand as a product: This is associated with scope, value, quality of the product. This
also includes product, users and country’s origin in which product is being manufactured.
 Brand as organization: This is associated with organisational attributes which are
directly linked with Dyson. This also involves local and global business activities of the
organisation (Grubor and Milovanov, 2017).
 Brand as a person: This is associated with customer and brand image of Dyson within
marketplace.

 Brand as a symbol: This is associated with visual and symbols by which heritage of
brand can be enhanced.
Aaker model is aimed at providing deep knowledge regarding brand equity and those
aspects by which brand equity can be measured. Dyson can use these steps of brand equity in
order to enhance their loyal customer base so as to intensify overall brand image.
In order to extend their brand Dyson can find new distributor by which new market can
be explore by them and their brand can be extended. On the other hand Dyson may reposition
their electrical appliances in different form in order to get high customer recall.
TASK 2
P3 Different strategies related with portfolio management, brand hierarchy and brand equity
Portfolio management
Portfolio is defined as the sum of investment which is associated with various tools such
as shares, mutual funds, stock and many forth. So portfolio management can be defined as the
method in which appropriate investment policy is chosen by company in order to earn high yield
in least risk factor. This is related with management of funds by an individual under the follow
ups of managers (Von Wallpach and et. al.,2017).
Portfolio management strategies: These are the strategies which can be applied in order to
manage portfolio of business so that high managerial empowerment can be given to them. This is
going to provide benefits to the organization as by getting high returns chances of risk can be
eliminated. Dyson can use portfolio strategies in order to earn high profit and to attain
competitive edge so that to deal with their rivals in prominent manner. In the context of Dyson as
they are trying to eliminate redundant processes in their production cost so as to bring efficacy
and to enhance economic aspect in prices of their final products. For this they are looking for
cheaper supplier so that to save their purchasing cost and on the other hand they are looking for
cheaper labour by which high efficacy can be attained by organisation along with less wage rate.
In general context there are two strategies which are related with portfolio management that are
elaborated as under:
 Active portfolio management strategy: This strategy is based on particular style of
management in which these are helpful in taking out favourable results so as to attain
competitive edge in the marketplace. In the context of Dyson the company is emphasised

on high investments and this is the reason that they are investing greater part of their
capital in research so as to find out needs and preferences of their potential and current
customers (Krupka, Ozretic-Dosen and Previsic, 2017).
 Passive portfolio management strategies: This is defined as the finding out those
markets which are able to produce best outputs in the context of less investment and
retaining customers for high time. When these strategies are used by organisations then
robust market presence cannot be made by them. For example Duke, the company were
using passive strategy for them and due to the reason their product cannot enumerated as
high brand presence within marketplace.
Dyson Group Plc is known for their technology and distinct product which are developed by
them in order to meet household demands and to solve household problems with innovative
ideas. The company is highly established within marketplace for their distinct offerings and
this is known as USP of the company. Various strategies are used by Dyson in context of
brand hierarchy and brand equity management and those are elaborated as under:
Brand Hierarchy
Brand hierarchy is the formulation in which various combinations are made in order to
inculcate various elements of brand for the company.
 Corporate branding: This is known as a way or marketing in which name of the brand
is kept same as their company. The major aim of this brand hierarchy is to intensify
image of the brand of company which is earned by them in recent past years so to earn
high profitability and market retention. For example Dyson is using brand name for their
products by the name of their company and this is leveraging its brand image in positive
manner (Raki and Shakur, 2018)(France, Merrilees and Miller, 2016).
 Family brand: This is the way in which name of the brand can be used in more than one
product of the company. This approach is proven as easy and cheap by which without any
heavy investment product can earn high market existence. Within this aspect only one
time investment is needed, in the context of Dyson they have high product range such as
hair dryers, vacuums and many more.
 Individual Branding: This is known as individual product branding in which efforts are
exerted in order to enhance brand reputation within marketplace. This is proven as one of
the most effective strategy in which high benefits to the company and brand can be

rendered. One of the prominent and most effective benefits of branding is to provide help
to the business organisation in order to differentiate and separate their product so as to
form unique identity of brand in marketplace. For example Dyson is highly recognised
for their high quality hair dryers (Brahmbhatt and Shah, 2017).
 Modifier: This is recognised as a clause in which direction and substantive or modifier
so that to pass on quality message to customers. For instance Dyson is having high ranges
of electronic products and this enhancing their brand image and prominence as well.
From the above discussions this can be said that Dyson is able to use various types of
approaches in order to attain high productivity and sustainability.
Brand equity management
This is defined as the manner in which strategic understanding can be rendered to the
brand in order to provide direction to brand positioning. This is a broad aspect in which Dyson
can maintain their brand equity so as to frame various decisions.
Illustration 1: Keller's CBBE (Customer-Based Brand Equity) model, 2020
 Salience: This is defined as the degree in which brand is being noticed by customer at the
time of making buying decisions. This is the degree in which small and big brands are
segregated by market scenario.
 Performance/Imagery: This is defined as the performance of the brand within
marketplace as in comparison of various competitors (Hegner and Jevons, 2016). For
example Dyson is having various rivals within marketplace and their performance is
required to be analysed by Dyson in order to maintain their brand equity.

 Judgement/Feelings: This is defined as the degree in which the brand has acquired place
in minds of customer when they are making buying decisions. This is associated with
emotions and feelings of customer which is perceived by the brand.
 Resonance: This is defined as the manner in which customer has related the brand, this is
the value which is being perceived by the customer regarding brand. For this Dyson is
using different models so as to build healthy relationship with their customers.
TASK 3
P4 Determine the ways in which brands are managed collaboratively and in partnership at global
& domestic level
Brand leveraging is defined as the method in which brand name is supported by the company in
order to provide entry to a new product in the marketplace. This is performed by acquiring
valuable information by the customer regarding product which is used by them. This is helpful
for the organisation to carry out positive attitude towards brand and various aspects in the new
product (Sudhakar, 2016). This concept is helpful for the manager of Dyson in making high
brand image and to leverage quality of the product so that to intensify brand value.
Line extension and brand extension
Basis Line extension brand extension
Meaning This is the concept in which new
product is being introduced by
company within marketplace which is
of same category under same brand
name. This is associated with new
colour, packaging, size and many
forth.
This is defined as brand expansion
in which new areas are explored
which is existed in new territories.
This is helpful for the clients as they
get easy access to their desired
product. This is also named as
brand stretching strategies in which
products are advertised so as to
develop overall brand.
Benefits It is beneficial for Dyson to advertise
their services & products offered by
spreading consumer awareness and
It will also increase company’s
revenue and profits by increasing
their customer base and extending

utilities of their services and it will
results in increased profits and
increasing their customer base.
their existence to new markets with
wide audience.
Examples In case of Dyson, the firm is popular
for its electronic appliances and
products but now company also
offers Electronic Vehicles under same
category and brand.
Dyson expands its business
operations of electronic appliances
across worldwide. (Cawsey and
Rowley, 2016)
In today’s generation brand is a large structure and component and it is not feasible and
efficient to keep it centralized. Hence, it had to be managed and expanded collaboratively with
different strategic alliances or different entities to sustain for a longer period. With context of
Dyson, business organization has proved strategic alliance as one successful major way of
collaboration to manage brand efficiently and effectively. In the recent past Dyson has come
onto a strategic collaboration with TCS to facilitate information exchange, sources and customer
conveniences within the required period. Dyson has selected TCS as its technology partner who
is being recognized for its specialty in process enrichment and technical enhancements and
improvements related to business processes for longer time. It is important to mention that this
strategic and technical collaboration with TCS is a major support and encouragement to
improved technology in bigger context. This collaboration has been successful example of how
brand can be managed in effective manner and it can be observed from the fact that Dyson is a
major electronic appliance company whereas TCS is a technology giant part of Tata group. The
benefits and importance of this collaboration can be measured with the level of optimization that
has been brought to business processes and operations. The high-level benefits of this
collaboration are given here under –
Increased in profit generation: There has been a profitability raised that have been
noticed for Dyson due to this alliance. This is because with this support of technology
operational and other irrelevant cost has been brought down to optimized level for Dyson due to
which profitability has improved in appreciable manner.
Enhanced brand loyalty: With the support of technology from TCS, there has been an
improvement in customer experience and convenience for Dyson, which has relatedly increased

the loyalty of their customers towards them. This alliance has reduced the cost of their customer
retentions and it has enhanced the brand image and value in a positive manner.
Brand up-gradation: Since the existence of Dyson has increased to wider audience due
to this technology support in a short period their brand had become more visible and being in
spotlight and consideration in their segment among customers. With this successful collaboration
information, generation has become easy and accurate.
TASK 4
P5 Different techniques of measuring and managing brand value in organisational context
In the world of intense competition this is highly essential for the business that they
manage and measure their brand value in proper manner in order to sustain within marketplace.
This is highly beneficial for Dyson as in maintaining their performance so as to deal with rivals
in proper manner. In this context various strategies which can be used by Dyson are elaborated
as under:
Brand value: This is known as a particular amount which can be developed by Dyson due to
their distinct product offering within marketplace. For the major purpose to measure their brand
value Dyson may use cost based approach.
 Cost based approach: Within this approach all the expenditures and investments are get
converted into value of the brand. For example if overall expenditure and investment of
Dyson is totalled at 4 billion then overall value will be calculated as 4 billion. This
method is not considered accurate as this doesn’t include inflation rate.
Market share: Within this approach as per revenue and acquired sales value of the brand can be
calculated. For example as Dyson is covering 7% of electronic market segment then this means
that their brand value is perceived as same. Within this the technique can be used in order to
measure value of brand is KPI which is elaborated as under:
 Key performance indicator: This is helpful in collecting actionable information which
is measurable and quantifiable. With the help of this Dyson can examine their prevailing
market opportunities in advantageous manner so as to use them in effective manner.
Brand awareness: This is the method which is making familiarity among customer regarding
brand. The organisation is setting up various projects in order to spread awareness regarding

brand so that to attract huge customers. This aspect is undertaken by Dyson in order to measure
their brand value.
 Social media engagement: Brand awareness of Dyson can be measured by social media
existence. With the help of counting likes, shares on social media platform such as
Facebook, instagram. For managing brand presence on online platform Dyson is required
to innovate their content so that to attract high clients.
Consumer attitude: The other method to oversee brand value is attitude of consumer regarding
product (Chatzipanagiotou, Veloutsou and Christodoulides, 2016). This is concentrated on
observation of purchase and intent of purchasing by buyers. This is helping the Dyson in meeting
needs and requirement of their customer and to motivate them to make more purchases.
 Customer survey: This approach is helpful in recognizing satisfaction level of customer
in context of their product. In customer survey Dyson can instigate their products as per
demand of buyer in order to earn more brand prominence.
Purchasing intent: This is known as willingness of consumer for particular product. This is the
technique which can be used by in order to acknowledge purchasing intent of buyers.
 The funnel model: This is the model which can be used by Dyson for the purpose to
understand behavior of client so as to establish relationship between consumer and price.
This is the most simple way by which Dyson can recognize intent of their customer so
that to allow their customer to choose their favorite brand.
Income approach method: This is the method which is recognised by businesses in order to
calculate brand value. By this method income can be calculated which is a part of their brand
image. This is adopted by management of Dyson in order to calculate their market presence. This
is totalled as present value of profit and loss account, balance sheet, cash flow statement and
many more.
CBBE approach: This is known as one of the prominent method by which Dyson can quantify
their brand image. This is basic aspect in which interesting perspective is being considered by
Dyson so as to oversee their brand in appropriate manner within marketplace. This is used by
Dyson so as to attain reflection of their efforts in their buying decisions.

CONCLUSION
From the above report this can be summarised that branding is playing essential role in
enhancing market share and profitability of the company for long run. This is the aspect by
which buyer interest can be calculated and this can affect sustainability of the company. There
are various strategies of portfolio management which are used by businesses in order to intensify
brand image and to retain brand equity as well.

REFERENCES
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Online:
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