How Brands developed and manage over time

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 : Importance of branding...................................................................................................1
P.1 Definition of Brand...............................................................................................................1
Branding as an important marketing tool ...................................................................................3
Meaning of Brand equity............................................................................................................4
P.2 Key component of a successful brand strategy ....................................................................4
How Brands developed and manage over time...........................................................................5
Challenges in Developing a Brand .............................................................................................6
Development of Brand equity – CBBE Model ..........................................................................6
TASK 2 : Portfolio and Brand Hierarchies .....................................................................................7
P3 Portfolio management, brand hierarchy and equity management.........................................7
P4 Brand managed collaboration..............................................................................................10
P5 Various kinds of techniques is help to measure and manage the brand value.....................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Brand management is an important technique which refers to planning and analysing
brand perception in the market. Brand management focus on creating a good relation within
targeted market as well as with customers. Present report is in context to BMW and Mercedes
which are leading companies in auto-mobile industry. The study will analyse how BMW
collaborated with Mercedes to increase its brand equity in the market. The report will identify
various significance of branding as a marketing tool; it will also determine major components of
brand strategies utilised or developing and maintaining brand value or image. The assignment
will also analyse various strategies related to portfolio management, brand hierarchy and brand
equity. Furthermore, different methods for monitoring brand value will also be included in this
report. The various factors that helps a brand to manage partnership at global and domestic level.
TASK 1: Importance of branding
P.1 Definition of Brand
A brand is a unique mark, logo, symbol sentence, word or name that an organisation uses
in order to differentiate their products or services from other companies or rivals in the market.
The combination of a single or more of these unique elements can be used for creating a brand
identity. The brand name is a private asset and is protected with a trademark or copyright in
order to avoid duplication. A brand is a very important and valuable element for each and every
company; it is developed as a public image and products of the company are recognized and
known by the brand name within the market.
Role of Marketing in building Brand Equity
 Brand Evaluation – Branding helps to identify a target market or regions, research and
studies are additional steps used for understanding culture, beliefs etc related to the
targeted customers. It also assists in understanding the needs and demands of customers
within the market. Every organization or company focus on developing products that
could meet the needs of their customers. For example – BMW and Mercedes bring
innovative cars with the latest designs to attract customers who are interested in new and
impressive cars. There is a belief that advertising and branding are similar functions
which is not true. However, both the concepts are highly interdependent; advertising
refers to developing demands of a product in the market whereas branding refers to
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establishing a product as a first a name that comes in the mind of customers while making
a thought of buying a product (Urde, 2016).
 Brand Objective – Almost each and every organization understands the importance of
branding as a marketing tool and different specialists and professionals, who are experts
in brand management and development focuses on performing various activities as
mentioned below -
1. Linking customers emotionally by understanding their psychological needs and wants
2. Creating an impressive customer base
3. Building credibility for a product or service
Branding is a beneficial technique used by a company such as BMW or Mercedes in significant
functions of businesses such as Marketing of products and services. There are various
components of branding such as -
1. Brand Icon
2. Brand Colour
3. Brand Sound
4. Packaging of the Brand
5. Slogan and Brand Message
6. Name of the Brand
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llustration 1: BMW Branding
(Source: BMW Design, 2016)