Importance of Branding as a Marketing Tool and Strategies for Building and Managing Brand Equity

This document discusses the importance of branding as a marketing tool and how it has emerged in business practice. It also explores the key components of a successful brand strategy for building and managing brand equity. The case study of Cadbury brand management is included, along with techniques for measuring and managing brand value.

BRAND MANAGEMENT
I

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Explain the importance of branding as a marketing tool and why and how it has emerged in
business practice..........................................................................................................................3
P 2 key components of a successful strategy of a brand for building and managing equity.......5
LO 2.................................................................................................................................................8
P 3 strategies of portfolio management. hierarchy of brand and management of brand equity. .8
LO 3...............................................................................................................................................10
P4 Explain that how Cadbury brand managed collaboratively and in partnership both at a
domestic and global level..........................................................................................................10
LO 4...............................................................................................................................................12
P 5 techniques which are used for measuring and managing the value of the brand................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Brand management is a function of marketing that uses techniques to increase the perceived
value of a product line or brand over time. Effective brand management enables the price of
products to go up and builds loyal customers through positive brand associations and images or a
strong awareness of the brand. Cadbury is a British multinational confectionery company wholly
owned by Mondelez International since 2010. It is the second largest confectionery brand in the
world after Mars. This report includes topics such as importance of branding and its tools for the
company. components of successful strategy for building and managing the equity of the brand.
Associations of brand with other companies and techniques that are used to measure the value of
the brand. Strategies of portfolio management. hierarchy of brand and management of brand
equity
LO 1
P1 Explain the importance of branding as a marketing tool and why and how it has emerged in
business practice.
When an indivual buying something within the local grocery store than there may be some of the
brands that they don’t feel comfortable or any connection with them. While on the other hand
there are some of the brands where indivuals are passionate about that such as a person is
drinking coffee of a particular brands, cook with a particular brand of cooking oil ,use a certain
brand of mobile phone and many more.
Brand management is considered as a function of marketing that utilizes the techniques
to enhance the value of their brand over the time. Brand management uses strategies as well as
functions that aids them enhance awareness of the brand. While to make the order valuable as
well as effective firms focuses on enhancing the brand’s loyalty. Planning is also done by the
firm so that the value as well as equity of the brand is maintained all over the various markets.
Brand pyramid is consider as an framework where its ultimate goal is to get the consumers to
understand as well as believes the essence of the brand. The more number of the customers
grasp the essence of the Adidas and are willing to eager to share with the other as stronger the
relationship and less likely to switch people to the other brands. (Piehler, Schade, and Burmann,
2019.)

Gain recognition
Firm must thought a lot before launching at heir logo of the brands as it is the only one that
can represents the face of the firm as well as aids to spread the awareness regarding t he he
brand’s attributes.
Generate new customers-
Cadbury has been a hit a successful image within the marketplace and at the same time
leave a wonderful image inside the mind of target audience. It is possible due to this reason as
they have got been able to gain believe of the costumers within the market as well as
also capable of get again and again repeated sales from the costumers Dairymilk has grew to
becomes one of the maximum successful manufacturers in the marketplace. Any subcategory can
be easily gains success under the name of a positive word of mouth
Enhance the level of pleasure and satisfaction for staff members who are working for the
brand that are more successful and established generates a experience of pride as well as
sense more satisfied working for goods. This completes their all of the requirements of the work
as they have now an office that can be given by the firm and at the same time have a mutual
trust and many more. in their work requirements as they've an workplace which
is given by the corporation and a sense of mutual consider etc. There is a cause in the back
of the satisfaction stage of personnel and that is due to the ways and strategies that
the company has give you which has helped them to make the brand a success inside
the marketplace (Keller, and Brexendorf, 2019)
Creates as well as enhance the level of trust
Firm has been successful within organizing the brand that aids them to hold the
extent of trust with their customers and it continues on increasing with time. Consumers prefer
those manufacturers on which they can consider each time in a expert way. Company creates one
of these affect of them that the consumers feel that during that specific place or category no
person is better than them.
Supports as well as improves advertising

To establish a brand advertising that can be considered as one of the key component
when one focused for the brand. Cadbury also uses the various strategies that are unique that aids
them to create their own unique place within market. It also aids the brands to see the growing
stages as per their earlier performance as well as records of sales also. Through taking the aids of
such strategies the firm is capable to enhance the awareness of the brand as adverting aids them
to target various people at one time due to its reach. From this way the firm is able to accomplish
it set objectives as well as target. When the firm who are already established within the
marketplace apply such strategies as a promotion than it falls under the outstanding branding.
P 2 key components of a successful strategy of a brand for building and managing equity
The model which was introduced by Keller is also known as brand equity model that is based on
customers. Marketing has evolved and now Cadbury has a prime area of focus and that is
customers. Companies are aware with the fact that in order to survive in the market they need to
improve the level of satisfaction of consumers. This model helps the company to serve more
consumers in the market and strongly establish the brand (Lim, Jee and De Run, 2020).
Level 1 Brand Identity (Who you are)
This aspect describes the fact that how consumers perceives the brand and what factors
do they differ from the competitors of the brand. This aspect is the beginning stage it helps when
consumers are not aware of the brand. With the help of this aspect company is able to establish
themselves in the market and attract the consumers so that they can make a purchase of the
product. It is necessary that this stage is strongly formed otherwise it will disrupt other stages.
Level 2 Brand meaning (what are you)

When the brand is successful in establishing then it will create curiosity in the minds of
consumers. For instance product that are sold by the company is quality goods, safe to consume,
its reliability. This way consumers understand the meaning of the brand.
Brand performance-
This aspect states that when the company performs better they gets recognized in the
market. There are various and different factors which are considered by the people while judging
the brand. Features of the product, it reliability, facility for consumers, style, design and pricing
of the product (Baumgarth, 2018).
Brand Imagery-
This aspect helps to determine what is the image of the brand in the eyes of targeted
audience. Also they need to be aware of the appearance that is soft or rugged. Dealing in the
sweets and confectionery category Dairy Milk is clearly a soft brand. Company can create the
image with the help of positive word of mouth and marketing to target audience (Liuand et.al.,
2018).
Level 3 Brand Response- (what are the feelings towards the brand)
After consumer has made a purchase of the product it increase the expectation level of
consumers. If they are able to meet their level of satisfaction then they will be serving for a long
period of time. This will help the company to spread a positive word of mouth for the brand from
their consumers. On the contrary if they are not able to meet the expectations of the consumers
then they will judge it which will reflect a negative influence on the image of the brand.
Judgment is when brand failed to meet the level of expectation of consumers and feeling is when
they have the curiosity to know more and want more of that product offered by the brand
(Piehler, Grace and Burmann, 2018).
Level 4 Brand Resonance-
If the company is able to make the advocates of the brand then only they will be able to
reach the last stage of the model. Not many companies has been successful in reaching that stage.
This aspect states that brand is successful enough which has made them connected with the

consumer on social and psychological factors. For example individual who prefers Dairy Milk
won’t buy another chocolate. This way company and its marketers are able to capitalize the
brand which is possible by assessing their needs and wants. Requirements of consumers are clear
with the help of this model.
Aaker brand equity model was introduced by Professor David Aaker. The model made by him
involved aspects such as awareness of brand, loyalty of brand, associations with the brand and
overall value after the combination of all factors which is offered to a product or service. This
model states that management of brand starts when the company works for building a brand.
This way the brand is able to create desire in the minds of consumers. There are five components
of this model.
Brand loyalty- level to which people are loyal to brand.
Brand awareness- level to which people are aware about the brand.
Perceived quality- level to which brand is believed to deliver quality products.
Brand associations- associations made by the brand.

Other proprietary- this aspect is concerned with assets of the business such as trade partners,
intellectual property rights.
The model Aaker of helps to work on the vision of the brand and guide the path to the future. It
helps the strategy of business and works differently from the competitors of the company.
Other than this model of Aaker will help the brand to define its personality, traits in the market.
This will help consumers to relate to the brand.
The model of Aaker will also help to determine the right type of audience that will be suitable
for the brand. It will be done by assessing the attributes, qualities and strategies used for pricing
of the brand.
LO 2
P 3 strategies of portfolio management. hierarchy of brand and management of brand equity
There are different strategies for portfolio management in brand management
Branded House-
It is considered by many companies because of its form of architecture and the way it
helps to build a brand. Major companies such as Cadbury and Nestle who are leading in the
market are using it. They have many brands under their name and many subsidiaries of it.
Whenever brand is promoted by the company they ensure that name of the company is also

mentioned as it leaves an impression because of the trust that the company has in the market. For
instance Cadbury has many sub brands which deals by different names such as Oreo, Dairy Milk,
Eclairs etc. these are introduced so that they can compete with the range of products offered by
their competitors not within the company. The downside is that they don’t have the authority to
work as a independent entity. These model is used by the company who has many sub brands
under it (Zarantonelloand et.al., 2016).
House of brands-
This model is exactly the opposite from branded house. Branded house focuses on
dealing of brands with one single brand which is always constant for the company. on the
contrary House of Brand deals in many brands and everyone of them has the authority to deal as
a independent body. Each of the brand who categorizes under House of Brands target different
audience, use different strategy or tool of marketing and each of them is presented with different
attributes. For example companies such as Unilever and P & G works as the same as this model.
Hybrid Brand-
The hybrid architecture of brand states that it is a combined mixture of two architectures
of the brand such as master brand, endorser brand and freestanding. It is used by companies
when they want to change their architecture or acquire different brand by the strategy of merger
or acquisition (Mills and Robson, 2019).
Hierarchy of brand-
It is considered as a useful aspect as it helps to portray the strategy used by the company
for their brand so that they can show its elements. Cadbury has finalized their strategy of
branding while portraying the nature of common and different elements of brand over the world.
Cadbury mainly deals in confectionery items which motivates the consumers to make a purchase
(DiMartino and Jessen, 2016).
Different levels of brand Hierarchy
Corporate brand level-

The stage of hierarchy which is highest is only reached by one brand. In order to avoid
legal issues they display it on the package of the product. Sometimes name of the subsidiary
appears instead of name of corporate. It is considered as useful when brand plays a dominant role
in the strategy of branding (Soand et.al., 2017).
Family brand level-
It is also known as umbrella brand and lower level of strategy because it is used in more
than one product offered by the company. There are many brands under the name of Cadbury
which is viable just as Dairy Milk such as Bournville, Bourvita, 5 star, Bournvita Biscuits.
Individual Branding-
This is done only for one product. It is necessary for the company to keep in mind that
type of the product may also differ on the basis of model, flavor, size of package. Its main
advantage is that company can customize the brand and its aspects of marketing so that they can
meet the needs and wants of consumers.
Modifier level-
It is a version, configuration of the products. It helps to define the signals which leads to
differences in various brands on the basis of quality.
Equity management-
Cadbury main objective for managing the equity of the brand is to attract consumers and
maintain those consumers which are already existing. Overall objective of equity management is
to assess the corporate profits and helps the business to grow into the global market.
LO 3
P4 Explain that how Cadbury brand managed collaboratively and in partnership both at a
domestic and global level.
Brand extensions strategies and approaches
There are several marketing strategies and approaches where Cadbury brand is included
within marketing of particular product as well as services. In order to utilizes the similar

products in various multiple categories In fact Cadbury has also developed the new items such as
by using the brand extensive strategy it has created the Pudding pops and many more. So it
needed for Cadbury brand to such kind of the extensive approach for maintaining brand position
as well as develop sponsorship. These kinds of the development is also executed after taking
into consideration of the strategies of the business that included the brand as well as
management activities.
Cadbury brand can be revitalized and reinforced within several ways
It is a necessary things that focuses on the brand equity. Cadbury owner’s always
focusing on the development and at the same time assure the existing the costumer that have a
knowledge of the structure as well as layout of the business .Within this way it also continues
the enhance demands of the business all over the world. (Piehler., Schade, . and Burmann, .,
2019).
Marketing operations can be done by brand reinforcement as well as revitalization. Such
actions can be carried on the basis of the brand meaning as well as indentify consumer
perception towards the brand awareness. Within this way it should also be involved the crucial
features of the several strategies that included the brand consistency as well as protect the equity
of the brand. In addition to this the implementation of the activities of the brand reinforcement
actions always assures that consistency of the extension time can be maintained. It enables to
change the policy, features as well as procedures on the basis of the demand.
Brand partnership and collaborations- Basically it focuses on the great value that aids for
bringing together current status of various brands. To recognizes the purpose of benefits within
the term of the reputation. Thus it is crucial for brands to enter into the collaborations as well as
partnership with other brand. Within this way, it enhances automatically brand value as well as
targeting more consumers. While on the other hand collaboration is also enhancing the demands
of brand of the firm where several people are various people to buy the products and services.
The partnership and collaboration has also developed the demands of the business when
achieving the objectives as well as goals.
Positioning and global branding- It is basically as a process that needed to be multifaced
because of the international character. To reach out the global audience of there is something

regarding to the awareness of the brand. Furthermore, it is essential step that recognize the
brand’s strength within the terms of preferences, corporate value as well as requirement of the
audiences.
Fit as well as leverage within brand extension
Brand extension is becomes superior for Cadbury brand due to already launched the
services as well as products within environment that is competitive. Cadbury brand have
leverage where distinctive properties that focused mainly through brand. It is also used for
enhancing the several categories of the consumers on the basis of the demands, requirements as
well as needs. The issues are on connected perception of the present consumers that are
considered as fit. Within the various situations, Cadbury is unable to fir within the specified
categories so that they will unable to perform the task. It also becomes difficult for maintaing
position as well as brand awareness within the global marketing.
LO 4
P 5 techniques which are used for measuring and managing the value of the brand
Value of brand-
Branding is considered as a strategy of corporate. Many companies are dealing in the
different sector and in order to establish their identity they consider this method. It takes a lot of
monetary support to build or structure the brand which is less than money invested in the tools of
marketing. Leaders of Cadbury has taken various strategy and tools of branding. The company
has realized that how necessary it is to form the structure of the brand as it helps them to achieve
success. In order to increase the level of profits Cadbury worked on filling the gap between the
demand and expectations of consumers so that they can achieve their objectives. The value of the
brand will be assessed on the basis of market share obtained by it. Weight the brand holds in
each segment and proportion of the market on the basis of sales of the brand, its price and the
average of price by comparing other goods offered in the market.
Awareness of brand-

This aspect is concerned with the remembering power of people for the brand. It includes
factors such as strategies that are used for promotion, advertising, pattern of consumers so that
their process can be developed. Awareness of the brand is judged on the basis of repeated sales
they are getting from the consumers. It is evaluated on the basis of offerings by the company. for
instance Dairy Milk has many categories of products such as Dairy Milk Silk, Silk red velvet,
Silk Oreo etc. awareness is also assessed on the basis of knowledge that the consumers possess
about the brand. This way they can analyze which product is best according to their consumption
pattern. Recall and recognition are the two parts of this aspect. This point is the evaluation
strategy of the brand by the company (Liu, Burns and Hou, 2017). In order to track the equity of
the brand it is necessary that the company sends out surveys by the channel which is preferred by
the consumer. Conduct the assessment of focus groups, monitor the traffic on their websites,
track the mentions such as hash tag on social media and identify frequently utilized search
through Google which is specifically relatively to the brand.
Share in market-
This aspect focuses on the volume of products they are selling and the revenue they are
earning across the world. Usually share of value in the market of company is bigger than the
share of volume sold. The share that Cadbury has in market is considered as one of the highest
share as compared to their leading competitors. This has been possible because of the range of
goods offered to the consumers and the strategies used by the company for effective branding
and their management of portfolio.
Attitude of consumers-
There are three elements which are attached to this aspect that is affective, cognitive and
information which is on the basis of past actions and performance of the company and their
future strategies. It is necessary that brands look after the attitude of the consumers because if
there are any changes in the usual trends then it will change their whole pattern of buying and
consuming the product which will incur a huge loss for the company. It is necessary that
Cadbury prepares for the negative side as they deal in confectionery items which involves a lot
of uncertainties and it is necessary that the brand is able to match with these factors so that they
can work with the upcoming changes and survive in the market for a long period of time.

Purchase intent-
This aspect clearly states that it is the curiosity of consumers against the brand which
forces them to make a purchase. Repeated sales are expected by the company so that they can
survive in the market. In order to do that they take necessary actions and change their behavior
which they have made in the past which affected the overall sales of the company. This way they
introduce products which are only on the basis of needs and wants of consumers so that
probability of their success is higher than usual. Company focuses on this aspect so that they can
increase their share in the market (Balmer and Wang, 2016.).
CONCLUSION
From the above it had been concluded that Brand management enhance awareness of the
brandis maintained all over the various markets, Gain recognition aids to spread the awareness
regarding the brand’s attributes. It also focused on the Brand extensions strategies and
approaches as Cadbury brand can be revitalized and reinforced within several waysused for
enhancing the several categories of the consumers on the basis of the demands, requirements as
well as needs. It also focused on the other thingsuch as purchase intent.
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