Luxury Brand Management in Fashion

This assignment delves into the realm of luxury brand management within the fashion industry. It examines various strategies employed by luxury fashion brands to cultivate a distinct image and influence consumer perceptions. The focus lies on understanding how these branding approaches impact customer relationship building and ultimately drive purchase intentions. The analysis incorporates relevant academic research and real-world examples from prominent luxury fashion brands.

Brand Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P1 Importance of branding as a marketing tool and has emerged in business practise:.......1
M1 brands are.........................................................................................................................2
managed successfully over time............................................................................................2
: ..............................................................................................................................................2
P2 key components of a successful brand strategy for building and managing brand equity:3
M2 appropriate and validated examples within an organisational context:...........................4
P3 Different strategies of brand equity, brand hierarchy and portfolio management............4
M3 Critical analysis of theories related to brand hierarchy, brand equity and portfolio
management............................................................................................................................6
P4 Evaluation of how brands are managed collaboratively in partnership at international and
domestic level.........................................................................................................................6
M4 Critical evaluation of use of different techniques to extend brands.................................7
P5 Different types of techniques for managing and measuring brand value of organisation.7
M5 Application of techniques for strengthening brand value...............................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
An effective management of brand is referred to be one of the most considerate approach
of the organisations. It is an activity of administering the advertising policies of particular goods
and services. It is with a foremost concern of developing good relationship with the targeted set
of consumers (Nagurney and Yu, 2012). This involves some tangible elements of the product
with relation to its price and packaging, etc. The present report is about a similar concept of
brand management of 2 undertaken organisations named Nike and Adidas. It has covered total 4
parts started with the demonstration of some basic concepts of branding.
P1 Importance of branding as a marketing tool and has emerged in business practise:
Brand- A brand is an identifying name, logo, mark, word sentence that company use to
comprised their product from other. All these elements create a brand identity. And legal
protection given to a brand name is called a trademark. A brand represents company and create
value of its company, a company also represent by its own brand.
Branding is important marketing tool- A branding important aspect of the marketing
process of any product. In now days products have many patterns made by companies and
company present many brands in the market. Brands presents their market reputation. Popular
brand already set their marketing. Branding give products identity and character so customers
trying to connect with them (Heding.,et.al., 2015).
Brand equity- brand equity refers total value of the brand as separated asset. Brand equity
is reflected in the way customers see and feel the brand. The effect of this intangible asset Like
financial books. Prices, demands and profitability.
Brand differs from a product- consumer make product and company make brand. A
product is made by company and purchased by customers. A product which is included all the
material made by company and brand is label or symbol of this product. A product is which
company designed and innovate in their own pattern or brand is legal sign of product. For
example Nike is brand of company and shoes, clothes other are their products.
Key elements of a strong brand- brands is something very specific . Brands elements is
target to audience, brand promise, brand perception, brand value , brand voice, brand positioning
etc. brand elements comprised all the element which affect their brand reputation. Brand
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elements follow the all brand tools they affect their brand value and their popularity
(Jugenheimer.,et.al., 2015).
Manage and develop a brand over time- branding is process which is developed and
mange all the process in the marketing like all what type of products and what their popularity,
hoe to mange with that etc. branding is techniques which is identifying their products and
companies profit and loss.
The main challenges developing a brand- brand is not easy, it is not about giving name or
attractive slogan or logo. It is most challenging task to manager face. Those challenges are
known as three C's of branding . Every companies and their manger faces those challenges. First
challenge is cash or dealing with financial concern, second is ,manager wants to interact with
their client at any time . Third is cutter , company wants to promote their products a hundred
time or more then.
M1 brands are
managed successfully over time
:
As people living in the world they manage so many needs and they want to maintain a
string sense of personal identity. The same holds for brands – especially those in the consumer
packaged good category.
Marketing communication- marketing communication comprised the strategic activities
for brand mangers to build and maintain the brand image of targeted customers. Marketing
communication is mange customers relationship that affects brands value lastly (Vigneron and
Johnson, 2017). Marketing communication is about promotion and such activities advertising
about the brand sales promotions.
Branding is defines company is promotional rates and its area of company compress their
legal marketing. In the evidence justified branding is most crucial prat of an organization which
is defined their products with high rates and their products variety. Branding is also defines the
rates of their of products which is unique and expensive. Any products which branded their rates
are high and their material is good for use (Dinnie, 2015).
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P2 key components of a successful brand strategy for building and managing brand equity:
Brand is not just a logo or trademark. It incorporates many components that work
together to form the destination brand concept. Their management is part of the brand strategy.
The value of brand is described by the term brand equity. A various component of brand:
Brand identity- brand identity present their organization. Brand identity should help to
established a relationship between the brand and the customers by generating a value
proposition involving functional, emotional or self expressive benefits.
Brand image – brand image is related to hoe the customers use of those brands products and give
opinion on those brands products. In other hand this is comprised the reputation of brand in
the market (Beverland, 2018).
Brand character- its related to its internal material or products. How it usable for customers, their
quality, and also related to delivered companies experience.
Brand culture- it's about organization value that is brand much like to culture, people, or country.
Brand personality- its is based on people character that are associated with brand. It involves
such as age, class, as well as human personality traits , gender, socio-economic etc.
Brand essence(brand soul)- it defines emotional elements and values of the brand. Essence
should be part of long term positioning that does not change with every communication
(Chernev, 2018).
Brand strategy-
Brand strategy- branding is defines everything about company from its culture to market
position. So organizations Implement branding strategy that drives on business goals. Those
strategies are:
Why branding is important- brand is something which is marks organization services uniquely.
Brand is important for nay organizations because this represent to their company. And brand
approve the organization's reputation and there marketing impression, brand is defines
organizations verities and their products quality as well (Qian, 2014).
How to define your brand- brand is defines by signs, logo, label, trademarks and advertisement
by company. Brand is also comes with company name.
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Determine your objectives- objectives determines companies elements which is really used to
define company's working style and their products. Objective are also concerned company's
quality and their service.
Focus on your target audience- brands is focus on ability of power. That us why defining your
target market this will help to affect brand effectiveness. Some points which target to
market: first how much they old, what income range, what occupations and what interest.
Brand packaging and identity- branding as identifying to our customers as face is to friends and
family. Customers notice on packaging of company and their identity mark as well
(Malhotra, 2015).
M2 appropriate and validated examples within an organisational context:
Nike and Adidas is great brand which provide various products like shoes, clothing men
and woman, begs, home appliance etc. Adidas also present various products like clothes for men
-woman and kids, games etc. this is main huge brands. Which is most popular in market a swell
(Yen.,et.al., 2018).
P3 Different strategies of brand equity, brand hierarchy and portfolio management
Portfolio management : It refers to generate the highest possible returns at lowest possible risks it
is the decision making approach about investment mix and policy and then matching the
investment to the policy. There are two basic strategy of portfolio management these are, active
portfolio management and passive portfolio management strategy.
Active portfolio management relies manager attempts to meet investment objectives investing
and strategies which is fit in portfolio of the owner.
Passive portfolio management is for investor. Passive portfolio management includes some
styles these are indexing, patient portfolio, aggressive portfolio, conservative portfolio and
efficient marketing theory (Kim and Ko, 2012).
Nike and Adidas both are well known sportswear and equipment brands. Both of the company
aims to lead the brand in the world. These strategy helps to fulfil the consumer needs. They both
use different portfolio management strategy.
Brand hierarchy : it means to graphically presenting the company brand strategy, in brand
strategy by displaying the number and nature of brand elements. Hierarchy moving from top
level to the bottom level. Some company are defined brand elements and levels of the hierarchy.
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It includes corporate brand, range brand, individual brand. Nike and Adidas brand widespread all
across the world. Brand hierarchy means same brand have different products which is fulfil the
customer needs. For instance Nike and Adidas have their different type of shoes for customer
choices like snikers, training shoes, basketball shoes, running shoes, football shoes. Adidas takes
a three tier strategy to brand and product marketing. These brand invest on new idea and concept.
The permanent connection of new introduce products of the brand and to expand their business
segments and to earn more profit. Sub brand to the widest audience concept also use in this for
brand and brand marketing. And now Nike and Adidas stay connected with its core teenage
consumers (Brand, 2011).
Brand equity management: In present time many companies see brand as an asset. Strong brands
have the highest brand equity. Brand equity accounts for the difference in customer response that
a brand name makes. Brand equity strategy are communication, awareness, reputation, legal and
ethical decision making, collaboration and value.
Without communication brand equity cannot be achieved. Nike and Adidas both have good
command in communication strategy to attract new customer. Brand also need a strong
communicator to attract financiers (Li, Li and Kambele, 2012).
Brand awareness is very important part of marketing and its means that the consumer remember
the brand. Nike and Adidas aware the customer through communication media like social
media, television etc.
In a present time a company reputation can be built and destroyed in a minute by internet based
economy.
Company may take legal and ethical decision. If a brand operate legally and ethically it helps to
built trust and long term relationships. Nike and Adidas also follow this strategy for their
brand.
Branding is also about value. It manages customer relationships. A manager may attract new
customer by promising value and existing customers by delivering satisfaction (Rageh
Ismail and Spinelli, 2012).
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M3 Critical analysis of theories related to brand hierarchy, brand equity and portfolio
management
The brand management will help company to effectively take measures in order to gain
market share. In relation to this, CBBE (Customer Based Brand Equity) which is also termed as
Keller's Brand Equity Model will help organisation to enhance and endure its brand in the best
possible manner.
P4 Evaluation of how brands are managed collaboratively in partnership at international and
domestic level
Extension approaches and
strategies
Reinforced and revitalised Collaboration and
partnership
Nike and Adidas both are using
online and offline approaches to
attract more and more
customer. In online they using
social media to extend their
business . They give online and
offline voucher to their
customer this strategy also
helps increases sell. Nike and
Adidas both are shoe sand
apparel company are on world
top brands. Nike is provided
best product to the world. Both
companies are rivalry to each
other. Nike and Adidas have
different promotional strategy.
They also used discount based
marketing strategy. In this they
give discount to their customer
Nike and Adidas give new life
to the world by their products.
Both the companies is addition
to their products (Nagurney and
Yu, 2012). They introduce new
products using new technology
to give expansion to their
business. Nike sells many
products like shoes, bags
sportswear. Many customers
are using this brand because of
its reinforcement (Kim and Ko,
2010). Adidas also sell many
products like basketball,
football, shoes, bags,
sportswear to attract more
customer. There are may
overlapping products. Those
brands have a healthy
Adidas is the global leader in
the sporting goods' industry.
They are committed to
continuously strengthening the
brands and products to improve
their position. Adidas and
Reebok merge their brands or
organisation they decide upon
joining instead of competing.
Both company using cutting
edge technology. In this merger
Adidas buy all the outstanding
share of the Reebok. Adidas
proposed to fund the purchase
through an arrangement of debt
and equity. The main objective
of merger is to fulfilment of
individual goals. Also,
defeating the other brand like
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(McColl and Moore, 2011).
Adidas introduce new product
to expand their business this is
intelligent shoe with embedded
chip that conform for better
support. These major brands are
Adidas golf, salomon, bonfire.
Nike products are nike golf
converse , exeter brands group .
They both introduce some more
products to expand the
business.
competition. Both are the
compete with their products.
Revitalisation is very important
in any company for its
expansion. Nike not only focus
on sport shoes but also focuses
on professional athletes. Nike
emphasis on the jogging
community and everyday use of
sports products. Adidas values
are express in promotion
materials in the use of
celebrities as a trustworthy
endorsers.
Nike. Sharing both company
their technology. Expand their
business into global business.
This merger is also a cost
saving for both companies. The
main decision is taken by both
companies these are separate
entities, separate management,
investment in both companies,
separate advertising programs
and distribution centres
(Jansson and Power, 2010).
These merger strengths are
Adidas is strong in Europe,
Reebok is strong in Us and
Asia. It reduces cost for
retailers. Adidas will buy all
the stocks of Reebok
international. Adidas and
Reebok will operate as
separately. Due to merger the
company will implement the
cost reduction techniques,
sharing of patents, technology
and human resources.
M4 Critical evaluation of use of different techniques to extend brands
The extension approaches will extend company to effectively enhance brand. Moreover,
brand reinforcement and revitalisation would also endure profitability. Collaboration and
partnership will help to strengthen brand with much ease.
P5 Different types of techniques for managing and measuring brand value of organisation
Brand measurement techniques
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Measuring brand is important aspect for effectively identify and explore capacity of
particular brand so that it may be able to perform well and satisfy customers up to a high extent.
This is required by which organisation may effectively sustain and survive in the market for long
run. Approaches to brand measurement are listed below-
 Analysis of industrial sector
Industry analysis is required so that brands like Nike and Adidas may be able to earn
good market share and as such, profitability aspect of both companies can be maximised in a
better way (Miller and Mills, 2012).
 Planning out strategies
This is essentially required as it will help both brands to identify their strengths and
weaknesses in the best possible manner. Thus, weaknesses could be removed up too maximum
possible extent and as such, implementing well-structured strategies would help to earn good
quantum of profits by garnering more market share.
 Promoting and advertising
Advertising products is important for company so that sales may be injected in effectual
manner and as such, revenue may be garnered with much ease. This will help organisations to
sell sportswear products and related products in the best possible manner.
Brand equity audit and tracking
This is another way of enduring brand value of company in effective way. Brand auditing
is termed as analysis entire or overall performances of firm so that growth in the market and
targets, it has accomplished can be effectively tracked with much ease (Matthiesen and Phau,
2010). This help to track down what has been achieved by firm and thus, position in market can
be analysed quite effectually. The tracking process starts with formulation of framework. The
main aim of developing framework is that company states goals which need to be fulfilled. Next
process should be done by both Nike and Adidas is that feedback must be gathered from
customers. This will help to collect suggestions and advices from customers in the best possible
manner and as such, improvements can be implemented in effective way. Moreover, social
media should be explored by the company so that business may be able to check preferences of
customers.
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The organisation can also review of the sales data from Reebok and Puma which are in
the same field and as a result, customer preferences can be analysed. Next step in tracking
process is that competition must be reviewed by companies as it may be evaluated that Puma
sells better quality of products. Thus, organisation may be able to check over competition and as
such, company can implement well-mannered strategies to outreach rivals in effective manner.
Last step is to assess better measures to adopt the same and as a result, company can achieve
enhance market share (Kim and Ko, 2010).
Approaches for valuing brands
The various approaches to value brand are enumerated below-
Market based brand valuation-
In this approach, valuation is done by implementing P/E (Price Earnings Ratio) method
and turnover multiples is another method for effectively valuing brand (Brand valuation
methods, 2018).
Brand valuation based on income-
Income based valuation method is derived from relief obtained from royalty, DCF
(Discounted Cash Flows) analysis is used to effectively carry out brand value. Excess-earnings
method is used to compute earnings above mark of profits to lure investors. Price premium
technique is another technique to value brand.
Brand valuation based on cost
Replacement value method which implies that estimation of investment can be made to
build brand in relation to similar market share. Cost creation is another technique to measure
brand value (Yan, Hyllegard and Blaesi, 2012).
M5 Application of techniques for strengthening brand value
The measurement techniques such as industrial analysis, strategic planning and
promoting and advertising will help to strengthen brand value in effective manner. The valuation
methods will help company to easily measure brand value.
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CONCLUSION
Hereby it can be concluded that brand management plays crucial role in the company.
This help company to effectively carry out customer's perception and views which help firm to
implement the suggestions from customers so that necessary improvements can be done in the
best possible manner. Furthermore, brand valuation methods are quite important to value brands
and as such, firm may be able to enhance its value by implementing necessary changes with
much ease. Moreover, different strategies of portfolio management, brand equity and brand
hierarchy are relevant to companies to achieve more market share and effectively attain
objectives in the best possible manner. Furthermore, there is much significance of brand as
marketing tools for both Nike and Adidas so that both of them may be able to achieve goals in
effective way. Brand strategies are important as it helps company to endure its value in the
market. For strengthening brands, extension approaches, collaboration and partnerships are
useful for company. Furthermore, revitalisation and reinforcement is also important for company
in strengthening brand in effectual manner.
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REFERENCES
Books and Journals
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Online
Brand valuation methods, 2018 [Online] Available Through:
<http://www.brandvaluation.co.uk/Brand-Valuation-Issues/Brand-valuation-methods~14.html>
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