Brand Management Report: M&S Brand Equity and Strategies Analysis

This report delves into the intricacies of brand management, using Marks and Spencer (M&S) as a case study. It begins by emphasizing the importance of branding as a marketing tool and its evolution in the market, highlighting how M&S differentiates itself through promotional merchandise, advertising, and customer service. The report then explores the key components of a successful brand strategy, including brand equity and its positive impacts on revenue and market share. It examines brand strategy elements such as customer advocacy and transparent narratives. Furthermore, the report discusses different brand equity models like Aaker's and Keller's models. The report also covers portfolio management strategies, brand hierarchy, and ways to manage brands collaboratively at both global and domestic levels, and techniques for measuring and managing brand value within an organizational context. Overall, the report provides a comprehensive analysis of brand management principles, strategies, and their practical application within the context of M&S.

BRAND
MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Importance of branding as a marketing tool and its emergence in market practices..............1
P2 Key components of successful brand strategy for building and managing brand equity.......6
TASK 2..........................................................................................................................................10
P3 Different strategies related with portfolio management, brand hierarchy and brand equity 10
TASK 3..........................................................................................................................................14
P4 Determine the ways in which brands are managed collaboratively and in partnership at
global & domestic level.............................................................................................................14
TASK 4 .........................................................................................................................................16
P5 Different techniques of measuring and managing brand value in organisational context....16
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Brand management is defined as a set of tactics which is used to enhance the value of a
service or product. An appropriate brand management helps in maintaining customer base of
loyal consumers which lead towards positive impact on revenues and profitability. It is a
function associated with marketing that allow business organisations to sustain a positive brand
image. This assignment is written in context with Marks and Spencer which is a Britain based
multinational company, situated in Westminster, London. Organisation specialises in selling
home and food products and clothes. At present firm is successfully operating at around 1000
stores in United Kingdom in which more than 600 stores sell food product only. This report will
cover importance of branding as a marketing tool and the manner in which branding has emerged
as a market practice. Key components of successful brand strategy for managing brand equity are
discussed. Beside this, different strategies of portfolio management, brand equity and brand
hierarchy are discussed. Different ways to manage brand at domestic and global brand are
mentioned along with techniques to measure & manage brand value.
TASK 1
P1 Importance of branding as a marketing tool and its emergence in market practices
Illustration 1: Brand Integrity
Branding is described as a market tactics which helps an organization in formulating
design, symbol and name of company & brand so that customers can easily recognize them. It
helps an organization in distinction of a product or service offered by them from the
commodities offered by rival firms. Branding helps in generating a memorable experience and
reputation of product in the minds of customers that helps in enhancing sales (Balmer, 2012) By
this, customers will get to know about the potential and standard of company in satisfying their
needs and desires. M&S uses this tool to differentiate itself from the products of competitors. In
order to develop and manage brand in a proper manner, M&S adopts promotional merchandise,
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advertisement, customer service, reputation and logo. These factors help in developing an
attention grabbing and unique product that will be widely accepted by customers. To build a
brand, certain aspects are considered which are mentioned below:
 Attractive name of brand
 Brand logo i.e. a specific brand icon.
 Brand message and slogan
 Positioning of brand and overall reputation in market
 Brand packaging and other aspects associated with brand experience
Illustration 2: Positioning process
To attain desired growth and results, it is essential for every organization to have
appropriate branding. This will help in acquiring expected profit and growth. It can change the
opinion and perception of people about the products and services offered by M&S. Also,
appropriate branding will benefit in enhancing brand awareness of M&S along with helping the
manager to identify those measures that can further enhances the satisfaction level of customers.
Different benefits associated with branding are defined below:
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 Improve company's recognition: Remembering the products and services of an
organization with its generic name is a complex task for people. An essential element of
branding is logo that acts as an identity and face of business. This brand icon benefits
people in recognizing company in a quick way. Logo of M&S is simple that is easy for
customers to recognize. Branding helps in enhancing the familiarity of products &
services in the mind of people (Barrow and Mosley, 2011)
 Builds trust within marketplace: Alternative products and multiple choices generates
confusion in the minds of people. In order to avoid this situation, people prefer to buy
those products and brands which are well known & popular in market place. With the
help of appropriate branding, M&S is emerged as a trustworthy and popular brand due to
which customers feel secure & satisfied while buying their products.
 Increases market shares and revenue: Branding plays an essential role in expansion of
business. A well known, trustworthy and powerful brand of M&S will help them in
attaining desired revenues and profitability due to leveraging. This will also increase
investment opportunities of M&S that will helps in increment of market shares.
 Convert masses into new customers: Efficient brand image leads towards in creating a
positive image of company in the minds of people. It will help in enhancing customer
base by transforming potential buyers into loyal customers. Products offered by
company such as clothes, food and other commodities are given in accordance with the
demand of customers due to which customer base and market shares of M&S will
enhance.
Branding has emerged as a business practice of M&S in following manner:
 At first, manager in M&S is required to effectively identify target audiences, i.e., to
understand if customers are interested in buying their product or not.
 Next step is determining brand mission, that involve creation of mission statement that
clearly describe their ideology.
 M&S is required to identify their rivals and other activities along with aspects that
differentiate M&S from other companies.
 After detailed analysis, M&S needs to develop value propositions which helps in
determining uniqueness, value of their service and product.
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 Manager is required to decide brand guidelines that undertakes strategy and tone of their
brand.
 The last step is required to market the brands of M&S. In this case, marketing
department plays major role in creation of branding. They analyze marketplace to
identify requirements of customers and promote brand effectively to consumers. Most
essentially, they can acquire feedback form branding that will enhance brand equity.
Illustration 3: Ansoff matrix
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Illustration 4: Integrity management program
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Illustration 5: Branding process
P2 Key components of successful brand strategy for building and managing brand equity
Brand strategy: It is a tactics which includes particular long term goals that can be
attained by evolving a successful brand. Manager in M&S is required to emphasize on
developing brand strategy so that company can sustain a positive image in the mind of people. In
order to attain desired results, it is essential for the manager in M&S to formulate effective brand
strategies. Brand strategies will benefit the firm in gaining competitive advantage over rival
companies with the help of high profitability (Bhushan, 2012)
Brand equity: Brand equity is a marketing term which defines the value of a brand. This
value is acknowledged by experience and perception of customers regarding the brand. If
customers will think high about a brand and its products, then it will be called as positive brand
equity but in case if a brand disappoint its customers by under-delivery, it will reduce the
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popularity of brand. In this situation, it will have negative brand equity. Positive brand equity
posses certain values which are mentioned below:
 Organisation can charge high for a commodities and product because of high brand
equity. As customers will be satisfied with product, high price charged by M&S will
benefit company in earning high revenues and profits.
 This equity can be passed on to line extensions that will helps Marks & Spencer in
earning high revenues and profitability.
 Stock price of M&S can be boosted in an appreciable manner due to which market shares
of company will enhance in a considerable manner.
Strong brand does not emphasize on different sections within society but they targets a
specific group of people and tries to satisfy their demands in a desired manner. By this they can
innovate new concepts and strategies that can satisfy the desires of clients in a proper manner. In
case of M&S, firm offers standardized products to its customer base and charge them high due to
the good quality of products. Clients of M&S remains loyal to the firm because of positive
experience of customers with brand. Positive brand image in marketplace differentiate the
products of M&S from rival companies (Hanna and Rowley, 2013)
Key elements to develop successful brand strategy
To formulate an effective brand strategy, there are different elements that must be
understood by the manager in M&S. These components will help in managing and developing a
positive brand equity. Some of these elements are mentioned below:
 Customer Advocacy: Even if a company will promote about is products and services
over and over, people will not trust it unless they will hear the experience of their friends
and knowns regarding that product. Emphasizing on the satisfaction of customers will
help M&S in enhancing their reputation in a considerable manner. Due to the positive
review of customers, M&S can easily earn high brand equity that will results in high
revenues and profitability.
 Transparent Narratives: As technology is getting advanced and manual work is
replaced by augmented reality & artificial intelligence, trust in a particular brand is vital.
In this regard, transparent narrative of M&S which will communicate and interact on
personal level with customers will offer competitive advantage to company. This strategy
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will help M&S in gaining competitive advantage over rival companies due to which
brand equity will enhance (Hosaini, Rooshani and Fathi, 2012)
 Developing a clear identity: In order to differentiate product form other competitors,
manager in M&S is required to formulate a clear identity. This will help them in grabbing
the attention of customers without facing any issues and problems. As M&S will become
a well known and popular name due to which brand equity of company can be managed
in a desired manner.
Stages to build and manage brand equity
In this regard, there are some models of brand equity which can be applied in case of
M&S. These models are defined below:
Aaker brand equity model
This model was given by David Aaker and according to this model, brand equity is
defined as the combination of brand loyalty, brand association and brand awareness. When these
aspects merge with one other, then customers are given the value of a service or product.
According to this model, there are four elements of brand identity which are mentioned below:
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Illustration 6: Aaker Brand Equity Model
 Brand as a product: It involves scope, attribute, value or quality of the product. It also
involves the proper use of product, users and the origin country where product has been
produced or manufactured.
 Brand as organization: It will include the organizational attributes associated with
M&S. It also consists of global operations along with local business activities and
operation.
 Brand as a person: It involves relationship of customers with brand and brand
personality in the marketplace and minds of people.
 Brand as a symbol: It will include visual, metamorphic symbols and audio so that brand
heritage can be enhanced.
Aaker model aims to provide deep insight in entire concept of brand equity along with
specifying measures to evaluate it. M&S can implement it in various stages while marketing so
that their product performance can improve and customer loyalty for their brand will enhance.
Keller brand equity model
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