Brand Management in the Digital Age

This assignment delves into the crucial role of brand management in today's digital landscape, particularly focusing on luxury brands. It examines established brand equity models and how they can be applied to understand and manage luxury brand perceptions. The discussion encompasses key factors influencing brand value, such as corporate social responsibility (CSR), internal brand management practices, and the impact of social media. Analyzing academic sources provided, students will evaluate the effectiveness of different strategies in building and maintaining a strong brand identity for luxury products.

Brand
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTION 1......................................................................................................................................3
P1. Explain the importance of branding as a marketing tool and how it is emerged in business
practice...................................................................................................................................3
SECTION 2......................................................................................................................................5
P2. Important components of successful brand strategies and managing brand equity.........5
P3. Analyse different strategies of portfolio management, brand hierarchy and brand equity
management............................................................................................................................7
P4. Evaluation of brands that are managed collaboratively in partnership............................9
P5 Tools and techniques for evaluation and management of brand value...........................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Brand management is a concept which helps in shaping the picture of product, service of
particular company in minds of customers. Basically, it helps in establishing conducive and
healthy relationship between organisation and their customers. Brand management can be done
to create awareness among market area. Every institution aims to build high revenues and
maximum market share. For this they want to establish loyal brand image in customer's image. It
is categorised in two parts: tangible and intangible brand. Tangible brand involves something
which can be touch, feel by the buyers which involves features, designs, appearance, packaging
etc whereas Intangible brand involves experience, knowledge about that particular brand in
minds of customers. This project focuses on BMW company which is based on motorcycle and
auto-mobile manufacturing. Its head quarter is situated in Bavaria. It is founded on 1916, 101
years ago. It is well known brand in automotive industry. Assignment will throw light on
importance of brand management and different type of marketing tools available for any
business entity. It also include various kinds of elements to manage brand equity, portfolio and
hierarchy. This also measure the cooperation and partnership for both on the grounds of national
and international basis.
SECTION 1
P1. Importance of branding as a marketing tool and the way it has emerged in business practice
Branding is basically a procedure of presenting company's goods and services in front of
public in the market place (Barrow, 2011). Good branding should be the aim of every company
as it helps in building strong relationship with their prospective buyers. Branding is considered
important tool of marketing as it concentrates on establishing strong brand image in front of
people for longer period of time. Major number of people are pulled towards that organisation's
products that have high brand value and is famous for rendering good quality of services. Brand
refers to the product image of a particular company. Brand of any company uses various
elements as a part of it that involves logo, name, packaging, labelling, colour combination etc.
Brand helps people to differentiate products of one producer from other one. Brands can resulted
in establishing positive and negative picture of goods in front of people. It is observed that
people react differently towards the brands (Rosenbaum, 2015). Branding concentrates on the

particular needs and wants of people. It is duty of company to analyse customer's perceptions and
attitudes towards particular goods and services. The reaction towards it can be different and
unique. Brand possess huge impact on every business entity which is discussed below:
Establishing trust and confidence: It is human nature that people get attached towards
particular brand which they find perfect and full filling their requirements in many ways. It is
indispensable for every institution to survive in competitive world it have to set up such brand
image that helps in earning huge profits. Branding is known as that tool which contributes high
revenues if it is properly made otherwise it may also bring losses in other case.
It is known as effective advertising element: Advertisement refers to show casing the
company's products in front of customers in such a manner so that it get fixed in people's mind.
This process is adopted which intended to supply information regarding any product, goods or
services for which any company exists. BMW is directing on forming unique and effective
advertisement for their buyers and that is why they enables to gain more interest for prospective
buyers. BMW concentrates especially to higher section of society. They also make use of well
famed faces to advertise their brand. This also helps in focusing the customers interest.
Creation of fresh customers: This is the basic aim of creating more customers towards
attracting new people. The share of market increases from time to time. They select various
innovative techniques and methods to engross interest of many consumers towards their
products. This helps in creation of demands among people that leads to generation of sales that is
directly linked in attaining huge profits. There are number of ways of advertising procedures by
various media like print media, electronic media etc. this covers mass number of people and
provide generation of demands among them (Kelley, 2015).
Workers get attracted: It is obvious that well established or reputed company helps in
attracting prospective employees towards them. As they find it as best opportunity for them
working in reputed organisation who is already enjoying huge market share. Today is the world
of innovation and modern technology hence, it helps in recruiting most knowledgeable and
talented candidates. BMW has strong brand image and that is why most talented individuals are
working in this organisation.
It is very common that Products and brand get mixed up but they are two distinct
concepts. They are different from each other on various aspects. It is mentioned below:
Products Brand

It refers to tangible things or materials which
can be touched, feel by customers. Final
consumers take it to satisfy their needs and
wants. It is purchased by them in return of
money.
Brand refers to something which is actually
experienced by individual. They get results or
outcomes after using it in proper manner.
Products can be finished after some time or get
expired.
Brand always remain in the minds of
customers for longer period of time.
Products can be distinguished on the basis of
quality, quantity. It helps in constructing a
healthy relationship among producer and
customers.
Brand generally concentrates on processing
goodwill and picture in the minds of customers
at a particular market segment.
Products can be of different types and of
distinct nature like consumable products and
heavy goods.
Brand cannot be categorised into consumable
and durable brands. It consists of logo, name,
designs etc.
SECTION 2
P2. Key components of successful brand strategy for building and managing brand equity
Brand is created by making usage of various tools and components through several
strategies and procedures. Brands of various companies are perceived in different manner.
Hence, it become necessary to maintain such brand image so that maximum people gets attracted
towards them (Dinnie, 2015). Continuous attention should be made in improving the quality of
products and services. Every business exist for earning huge profits or revenues and establishing
huge market share in the market place. It can be possible that brand can be perceived in positive
manner by many people and in negative manner by other people. Company is not sure about
their image that portrays them. BMW has strong brand image in society as its target market is
high salaried people who are interested in buying luxurious vehicles for them. Company always
improve their products day by day in order to come up with new and advanced features to
provide maximum amount of satisfaction to customers. It helps in creating loyalty and
satisfaction level to significant level. Under this brand loyalty, brand image is also included that

provide fulfilment of set targets in appropriate way (Abrahams, 2016). There are number
strategies for branding that is available, company have to make effective choice to adopt it
implement in wise manner. There are many benefits associated to it, some are mentioned below:
Healthy Relation with customers: it is very essential to build a conducive and healthy
relationship with customers in order to enjoy good brand image. Organisation should be
transparent in their vision, mission, goals and products in front of people. BMW always come up
with new features and models to impress their customers in positive mode. This helps
consumers to get stick to that particular brand. Relationship helps in multiplying sales volume in
huge amount. BMW utilise their brand establishment and hence acquire new customers at huge
level. Customers helps in creating
Maintain Value for longer period of time: The quality of products and services that
company serve to their customers is known as main reason through which longer sustainability is
possible. There are number of issues related to environment, society, which hinders their
sustainability in market place. These affect the business operation directly or indirectly. BMW
always supply best quality to their customers and that is why they are still in market place.
Use of advanced technology: Technology is advancing day by day. This helps in
rendering innovative services to their target area (Kavaratzis, 2014). Digitalisation is a main
concept that improve quality and production of the company in effective and efficient way. In
order to enlarge their production various modification and alteration is required in frequent time
period. BMW is using high tech products in making vehicles which aids in attracting interests of
many consumers.
Elements of structuring brand equity:
Recognition: Brand is primary aim of creating prospering organisation. It is very
important to create awareness among people regarding particular product or services. BMW
always directs on selecting that techniques and tools that involve creation of strong brand image
among customer's minds. Brand awareness is very important in today's world, as it helps in
creating powerful image among people.
Effective communication system: Brand is something which should be transferred in
proper way through communication system. Communication involves in transferring messages
about products, services to consumers. Employees make judgement regarding such brands and
than make final decision (Christiaans, 2012).

Strategy and policy: Every organisation exist having some vision and mission which has
to be attained in particular time frame. Strategies are made for future that has to attained in
strategic manner. Company works on the concept of formulation of policy and procedures that
aims in increasing sales volumes and decreasing cost in their business life.
Legitimate and right decision making: It involves various rules and regulations that are
framed by government that has to be mandatory adopted by business. As company have to
operate in society hence, it becomes essential to follow laid down rules. Non compliance of such
rules may cause hindrances in working process. These may involve either following and
ignoring particular government decisions. Research and development department of company
study the situation in effective and efficient manner.
P3. Different strategies of portfolio management, brand hierarchy and equity management
Strategies are formulated for accomplishment of future mission and vision. Portfolio
management is basically concentrated on enterprises which are large in number and having
diverse range of products (Morgan, 2011). It helps in increasing company's share and profits.
This section include brand measurement of two most established auto mobile company i.e.
BMW and Audi cars. These are well established brand in cars and renders huge competition to
other company as well.
Some strategies for portfolio management is as follows:
Active strategy: This strategy involves company taking high risks. Risks are associated
with the size of the organisation. Larger the size more is the chances of complexity. Active
strategy formulation allows firms to maintain such procedures that minimizes risk and allow
them to face nay difficult situation effectively.
Passive strategy: It is the opposite of active strategy of portfolio. It involves lesser
amount of risks. These strategies are drawn by smaller sized organisation. Their returns and
market share is low or average (Annie, 2012).
BMW accepts Active portfolio strategy as they have high returns. These company have
some unique image in minds of customers. This cannot be ignored by them in any case.
Competition level is very high and strong, everyone if fighting for their sustainability in market
place.
Company delivers various range or variety of products in the market. For this it becomes
essential to study the brand hierarchy of Audi and BMW. This provide basis of differentiation.

Leaders and mangers have to manage their hierarchy in effectual and prompt way. Difference
between brand hierarchy of BMW and Audi are mentioned below:
Basis of Difference Products or goods Umbrella brands
Audi These are tangible things
which are consumed by
customers in order to satisfy
their wants and needs. There
are variety of cars published
by Audi such as A8, R8 etc.
It involves supplying number
of products or goods in one
brand name. This concept is
known as umbrella branding.
BMW BMW also has number of
products or models like,
BMWx5, x1, i8 etc. hence,
depending on the features or
demand they produce their
products.
BMW also manufacture
different kinds of vehicle
which helps in fulfilling the
customers needs and wants in
effective and efficient manner.
Brand equity refers to different kind of components that involves name, logo, symbol, special
character. Every company has its own brand and is different from others (Vigneron, 2017). It
helps in identifying uniquely within the market area by prospective customers or purchaser.
Brand loyalty is associated with this concept that aids in increasing more revenues and sales for
the organisation.
Keller has coined customer based equity model (CBBE) in order to make reputed image
in customer's minds. It also helps in making competitive advantage in market area. BMW and
Audi have adopted 7 steps to hold up brand equity of that particular company:

(Source: 5 main elements of brand equity, 2018) Salience: It means the position of any branded product in customer's perception. BMW
helps in establishing their image through the use of social media like Facebook,
Instagram etc. They also uses print media and electronic media to carry out their work in
proper manner. Performance: BMW and Audi always focuses on increasing performance day to day by
adopting high tech technology in their processing system. Imagery: It include intangible element of the product. For example the technology
applied in BMW car is of high quality and services are rendered in top class. Judgement: It involves the image of nay product in market area. Hoe customers
perceives the company's goods by evaluating other products Also. BMW or Audi
evaluate present situation of their brand and can alter accordingly. Feelings: It involves how customers are attached towards particular brand. Like
customers believes that BMW is very luxurious and provide them feel of comfort and
quality. Resonance: It means having brand loyalty in the market place. BMW always leads to
creation of brand awareness through use of different means like advertisement in various
places. On the other hand Audi also uses means to deliver best of their services. Value
Illustration 1: Brand Equity Model

creation is very essential now a days for each company that motivates them to produce
good variety of products.
P4. Evaluation of the way brands are managed collaboratively in partnership both at a domestic
and global level
There are number of established brands which are running in market at national and
international level. There are number of products and goods which uses different means and
method to create brand images at national and international level (Gatti, 2012). This concept is
applied on big sized company having number of branches in different areas. There are number of
competitors available for same industry. Institution always used to work upon their brands
continuously . There can be situation that they have to work on the basis of partnership platform.
Category Extension: This concept is focusing on encouraging expanding product or
services in that categories. It helps in increasing profitability and productivity as they have to
expand their existing lines. BMW wants to expand their category in significant level.
Line Extension: BMW is one of the established brand in auto mobile sector. They are
famous for providing high variety of products and vehicles to their customers. It allows the
company to concentrate in such critical area that helps in providing them with high outcomes and
profits. It also helps in maximising number of people, their sales and finally their profits for
particular year (Kapferer, 2017).
While adopting such methods BMW and Audi can increase their market share and
increase their revenue. It helps in building strong brand image in such a manner so that brand
image can be done to establish powerful stand in market area. They have to continuously make
strategy to evaluate in the current market scenario.
Tools of brand extension: The organisational system retained it brands by influencing
its major part. Both the companies are producing various number of products and goods of varied
quality and features. They have to produce strategies and procedures in such a manner so that
they can able to evaluate their efforts and trending situation.
 Innovative products: Innovation refers to introducing something which is unique
and allows them to stand apart from others. Innovation aids in standing out from
crowd having same industry.

 Portfolio management of product: This concept is useful when company is
producing number of products having in distinct areas. This basically involves
significant position in the market area.
BMW and Audi can execute such above discussed measures to increase its value in the
market area consisting of varied number of policies and process. Innovation process in creating
such things which does not exist earlier. Organisational changes refers to alteration or m
modification in rules, regulations so that they can bale to fight strongly in competitive market.
There are number of elements which are included in strategic plan which are as follows: Developing product: it involves developing existing features of product or goods by
adding some new features or introducing something unique or new (Burmann, 2011). Developing Market: under this, existing market share of current time should be increased
in such a manner so that particular market segment is developed in significant way. Process of diversification: Diversification involves introducing any particular goods or
services in specific market segment. This helps in expanding their current market share
by grabbing more and more customers.
 Process of penetration: Penetration refers to focusing on existing market segment. It is
the result of positive loyalty created in minds of customers. BMW and Audi can use these
types of methods in order to maximise their sales volume and share which is the basic
aim of every company.
Hence, it can be possible for both the companies to adopt such techniques in order to make their
current position more powerful and reduces any issues that may arise at international ground ( B.
D, 2011).
P5 Tools and techniques for evaluation and management of brand value
Brands of an organisation have strongly impacted on engagement of customer,
competition at market place and management of a company. A strong brand's image differentiate
a company from its rivals in a marketplace. An effective Brand management enables in rising
price of a product as well as to build customers' loyalty. It uses many techniques in increasing the
perceived value of a product or brand (Du Preez, 2015).

Today, all organisation whether small or big ones, are facing many changes associated
with lots of risks and challenges to stay in a marketplace. These changes are necessary for them
to manufacture their products on basis of customer's choice and demand. To analyse market
situation, it is necessary for organisation to measure value of their brands. BMW is a
multinational group of companies which produces auto-mobiles, motorcycles and aircraft
engines. Brand image of its product is at top position as compared to its competitors. But there
are so many organisations present in market having same products which giving a tough
competition to this company (Ruzzie, 2013). So, it is essential for BMW to analyse its brand
value at marketplace. Measuring values of brand is essential in some aspects as- to know about
current position of a company at marketplace, when financial report is preparing and the last
when management has to allocate purchasing price of products.
Brand equity audit and tracking technique:- BMW needs to understand on how its brand affects
the purchasing intent and sales performance at marketplace. Growth of a brand depends on how
company connects with their customers. For this, a company measures its brand equity with
market share and customer's loyalty. The purpose behind brand audit is to ascertain how business
of BMW and its brand is performing in market from customer's point of view.
Evaluation of different techniques used by BMW Company are:- Evaluation of brand is
necessary in making price strategy of a product.
Brand measurement technique: Management of BMW has used many techniques to measure
value of brands of this company. They research all necessities for changes or modification of its
products according to market situation in earning a good position from its competitors. These
techniques are-
 Qualitative technique- This technique is used to measure quality of its products using
experimental methods, projective techniques etc. by taking a sample of some
customers. On these customers, a questionnaire method is applied and their responses
are taken to judge its product value (Herstein, 2011).
 Quantitative technique- It involves many numerical questions for taking feedback of
customers so that management of a company can properly summarize the data used to
evaluate brand value of an organisation.
 Comparative technique- This technique include marketing and brand based
comparative approaches. It has applied questionnaire method on customers to get

their feedback by comparative studies of an organisation to its competitors. Present
company BMW use this technique by comparing its brand image with one of its rival
Audi whose business is expanding at a fast rate in many countries having same
products.
BMW Audi
 It is considered as one of the most
established company in auto-mobile
world with a wide range of cars
(touring, formula1, sports, Isle of Man
TT), motorcycles and aircraft engine
parts.
 Its has made record in higher
production of the world.
 Audi is also a auto-mobile
manufacturer that designs, engineers,
produces, market and distributes luxury
vehicles. It is a member of
Volkswagen Group. It featured on best
transformer and affordable cars.
 Audi's image is a conservative one this
time.
BMW has used many approaches which facilitates its business to run smoothly in an
effective manner. Some of these approaches are described as below:-
Financial approach: Every organisations are depend today on marketing trends that
requires from them to change their existing products or make modifications according to
customer's choice and demand. This will bring financial approaches for them that includes
Marketing based- It includes market based concepts at national as well as globally
(Wallace, 2014).
Income based- Since this approach requires modification in products, so it requires to
make budget for this and depends on financial income of customer's that able them to purchase
their products.
Cost based- In order to maintain balance between investment and profit revenue, it is
necessary to evaluate cost of manufacturing of products.
Customer approach: Modification in products are much based on customer's preferences
and their life style. A strong brand image brings a company in retaining customers and their
loyalty (Keller, 2017).
For further analysis of brands image, it is necessary for a company including BMW to
conduct SWOT,

Strength: The main strength of BMW is its automotive brands present at marketplace.
Its perfect engineering and excellent driving experience brings sustainability in this company. It
has made many effective strategies in order to meet present as well as future challenges.
Weaknesses: Main weaknesses of BMW include is its poor automotive brand portfolio.
Its increasing bad debts also shows its weakness in marketplace. This firm also fails to make
product differentiation from its competitors having same.
Opportunities: Demand for autonomous vehicles and exchange rates of currency brings
opportunities to Audi to makes its future better (Chauhan, 2013).
Threats: For an organisation, major threats are its rivals having same product with
effective marketing and price strategies present at marketplace. Thus, for BMW, its major rival
in this sector are companies like Audi, Toyota Plc, etc. Apart from these, increasing UK
automotive market, is poised to slow down its process also. Threats are something which has to
be converted into opportunity by the company so that they do not have to face any problem in
future time.
CONCLUSION
With the above mentioned report, it has been concluded that brand management is proved
as an important technique to maintain a brand's image in the marketplace. It includes several
aspects like advertisement, designing, marketing etc. that is use to make a strong brand's image.
This report also enhance the importance of branding used by companies in increasing their
productivity and profitability. It is beneficial for them to make strategies based on changes in
marketplace. For survival in market at national or international level, managing the brand's
image is necessary for an organisation. The companies should make effective strategies
regarding marketing its products as well as in product differentiations. This is very essential in
creating brand image in such a manner so that they can enjoy their established image in market
place.

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