Brand Management Imperatives and Equity Models

The provided assignment is a detailed study on corporate brand management imperatives and equity models. It begins with an introduction to the importance of brand management in today's business world, highlighting its role in building customer relationships and loyalty. The assignment then delves into the three key imperatives of custodianship, credibility, and calibration, providing examples and explanations for each. Additionally, it examines various brand equity models, including Aaker's Brand Equity Model, which is discussed in detail. The document also touches on the concept of strategic branding, using illustrations to explain complex ideas. Overall, this assignment provides a thorough understanding of brand management principles and practices, making it an excellent resource for students and professionals seeking to improve their knowledge in this field.

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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This model involves four stages which can be followed to manage and build a brand that
will be accepted by customers in an eager way. In case of M&S, this model is defined below:
 Level 1- Brand salience: This stage identifies the manner in which clients are going to
differentiate one brand from another. Having a positive brand identity will benefit M&S
in gaining attention of customers. This is the primary aspect which is associated with this
model. In this stage, a particular section is targeted that will willingly buy the products
offered by M&S. Strong brand identity can results in earning high revenues for M&S.
 Level 2 – Brand meaning: It includes interaction with consumers about the services and
products which are offered by a firm. This stage divides into two more level that is
imaginary and performance. Performance is defined as the capability of product to cater
the desired of customers. Imaginary is related with fulfilling the needs of clients at social
and psychological level (Iglesias, Singh and Batista-Foguet, 2011)
 Level 3 – Brand response: In this stage, the company focuses on understanding the
feelings, judgment and opinion of customers about the service & product which is offered
to them. People judge the products of M&S by considering their quality, credibility,
superiority etc.
 Level 4 – Brand resonance: It is the last and most complex level to reach. This level is
attained when clients formulates a deep and strong psychological bond with the products
which are offered by M&S.
TASK 2
P3 Different strategies related with portfolio management, brand hierarchy and brand equity
Portfolio management
Portfolio is defined as a collection and aggregation of investment related tools like shares,
mutual funds, stocks, cash, bonds etc. Portfolio management is defined as the art of choosing
right investing policy that will results in maximum returns and minimum risk for the
organisation. It is associated with managing money of an individual or firm under the guidance
of managers.
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Illustration 7: Brand portfolio strategy
Portfolio management strategies: These are the strategies that can be applied so that
portfolio of a firm can be managed in a proper manner. It will benefit the organization in gaining
high returns in less risky situations. M&S can use this strategy to enhance their revenues and
profits so that competitive advantage over rival companies can be gained by desired means. For
instance, in context of M&S, company tries to reduce their production cost by purchasing raw
material from those places where they can buy in cheap rates. Another way is to hire cheap
workforce which will work by delivering their best performance within less wages. In general,
there are two strategies which are associated with portfolio management which are stated below:
 Active portfolio management strategy: It is based on the factors which states that a
specific management style is helpful in generating a situation that can result in gaining
competitive advantage. For example, M&S believes in high cost investment and spends
capital in accordance with the preference of customers. It includes bottom-up and top-
down approach (Kapferer, 2012)
 Passive portfolio management strategies: It defines that marketplace is effective and to
attain best outcomes, less cost investment is required which will be kept for a long time
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period. These organizations are not able to sustain a strong presence in marketplace such
as Duke.
Brand Hierarchy
Brand hierarchy is a combination of brand strategy by showing the number and nature of
brand elements of the company.
Illustration 8: Brand Hierarchy
 Corporate branding : It is way of marketing the product in which its name is same as
the company. Main aim of using this approach is to leverage the brand image of the
company which they have earned in the past so that more profitability would be attain by
them in future. For instance, Marks and Spencer has different types of product under the
same name which includes men wear, female wear, kids etc. High brand image in the
market will have a positive impact on the product as well.
 Family brand : Family brand is way of using the image and name of the brand in more
than one product. By opting this approach, it would be easier and cheaper way of
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marketing their product as they have to invest in marketing for one time only. For
instance, Marks and Spencer has different product line under their own name i.e., Linen
shirts, basic jeans, sportswear, umbrellas etc.
 Individual Branding: It is also known as multi branding and individual product
branding. It is considered as a type of marketing strategy used by company to enhance
their brand reputation in market place (Keller, Parameswaran and Jacob, 2011) One of
the main and effective benefits of individual branding as it will help an organisation in
separating and differentiating their products in form of unique brand name. For example,
Linen clothes, Cheap, utilitarian 'good value' skirts, Upmarket T-shirts etc.
 Modifier: It introduces to a clause, expression or word that direct as a substantive or
modifier to quality the message of many other word. For example: M&S sells different
varieties of clothes such as Perfect - upmarket T-shirts, upmarket trousers, skirts and
blouses etc.
 Branded house: In this strategy, the organisations is itself the brand. Sub brands are not
different from the main brand due to this a strong brand is build which is easily
memorable and recognisable.
Source:( Branded house, 2019)
 House of brand: It is completely different from a branded house. In this strategy, sub-
brands are featured and promoted, not the corporate brand or company. In this case brand
hierarchies are complex and businesses associated with it are consumer products. For
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Illustration 9: Branded house, 2019

example, sub brands of M&S like Per Una, indigo collection, North coast etc. are very
popular and have their own identity.
So it can be said that Marks and Spencer have been able to fully use different types of
approaches with their brand so that maximum productivity would be attained in future.
Different brand approaches are mentioned below:
 Economic approach: It involves the concepts related with traditional marketing mix as
they are fundamentals in building a brand strategy. It is a basic, economic and functional
market type in which M&S can compete customers by price so that their sales can
increase.
 Consumer approach: This approach is related with the needs and perception of
consumers. Here M&S will research about different type of customers and their needs so
that right service or product can be given to them without any confusion or complexity.
 Personality approach: It is based on product placement in videos, movie or sport events
so that customers can be convinced to buy products of a company. Sponsoring is the main
aspect of this approach. For example, customers can buy the cloth wear by a celebrity to
feel like a celebrity.
TASK 3
P4 Determine the ways in which brands are managed collaboratively and in partnership at global
& domestic level
Brand leveraging is the method of supporting brand name and company's entry into a
new but related product. This is done by proving valuable information about the product to its
consumers (Balmer, 2012). It helps organisation to carry positive brand attitudes and
characteristics into new product category. This concept helps the manager of M&S to create
strong brand leveraging by maintaining quality of products. In this, they have to decide which
product should be leveraged under brand.
Line extension and brand extension
Basis Line extension brand extension
Meaning In this concept the company
introduce new product or service into
market in same product category
It is defined as expansion of brand
in new territories and markets. This
will benefit the clients in having
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under similar brand name. It can
involve new colour, design, size,
package etc.
easy access to products. It also
named as brand stretching which
includes marketing strategy in order
to advertise products through
developing brand.
Benefits It is advantageous for M&S in
advertising their services & products
by spreading awareness that will
results in enhanced high profits and
gaining new customers.
It brings positive outcome to
company in form of facilitating
manufactures to enter into new
market and generate huge revenues.
Examples In case of M&S, the firm is popular
for its food products and clothes but
now company also offers home
products under same category and
brand .
An organisation expands its
business of computers and laptops
across worldwide.
In a current period of time, brand has become large structure, of which control to one
person is not being possible. Hence, this can be managed with collaborative efforts of two or
more entities, so as to run it for longer period of time. In context with Marks & Spencer, business
firm has proves strategic alliance as one major collaborative way to manage brand in an effective
and productive manner. In past period of time, Marks & Spencer has come up with strategic
partnership with TCS to facilitates sharing of information, sources or customer convenience in
given period of time. Marks & Spencer selected TCS are major technology partner, which has
been recognised as major strategic collaboration, whose focus in on enriching business process
with help of technological role or working for longer period of time. It has been noticed that
strategic collaboration is a major way of operating with major support of technology at a bigger
context (Liberatore and Miller, 2016) On one hand, Marks & Spencer is a leading retailer who
engages in selling fashion brand, while on other hand, TCS is an Indian based consultancy
services, which stands for TATA consultancy services. This strategic partnership has shown that
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brand can be managed in an effective manner. In context with this partnership, this has been
realised that benefits of this partnership level has resulted into success of business process at a
higher and optimised level. The major benefits of this strategic alliances are as given under:
Increased in profit generation: Marks & Spencer's profit power has become
supportable to develop or generate profit earning for Marks & Spencer and support of technology
has made M&S to enhance their operation & cost maintenance for developing brand
performance at a revenue basis.
Enhanced brand loyalty: M&S support of technology has customers to interact with
firm products or services in an effective or productive manner. With support of technology,
brand visibility of the Marks & Spencer has grown at a productive level. Support of the strategic
alliance with TCS has made M&S to save their cost and time both to enhance business function
at the productive manner or time.
Brand up-gradation: M&S brand management has become visible more and also
durable stage has been raised up with bigger support of business units. With strategic alliance
with TCS, information generation of the M&S has been raised.
TASK 4
P5 Different techniques of measuring and managing brand value in organisational context
In this competitive environment, it is vital for business organisations to manage and
measure its brand value in a precise manner within marketplace. It will benefit M&S in
acknowledging its performance in comparison with the performance of rival companies. In this
regard, manager of M&S can implement different strategies and techniques to measure &
manage its brand value.
Techniques of measuring brand value
It is essential for companies to measure their brand value in the market as then only they
would be able to modify their market strategies accordingly. Different types of techniques which
Marks and Spencer can use is given below:
In order to measure the brand value of their products and service, M&S uses cost based
approach.
 Survey: It is the best method by which an organisation can measure its brand value.
Survey is defined as a research method which can help business organisations in
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collecting data and information from their customers. It will helps M&S measuring the
satisfaction level of customers while using their products or services.
 Brand recall: It is referred to the likelihood or degree at which customers can remember
the brand, services or products provided by an organisation. It can either be aided or
unaided. It will help M&S in measuring their brand value as the more number of people
will recall brand products in a positive manner, higher will be sales and revenue.
 Market share: This aspect can be used to measure brand value in a considerable manner.
Acknowledging market shares will helps in identifying the value of company, company's
revenue and sell will be compare with the other brands and then valuation is decided
according to the customer’s ability to pay for the same product. In this way brand value
can be measured.
 Social media: Brand awareness of M&S can be measured with the help of Social media
tools such as Instagram, Facebook etc. The follows, share, like and mentions on social
media platforms like Facebook will help in defining popularity of the products. But one
disadvantage is that company is required to share about their products or services again
and again on social media, even if company do not have new content.
 Consumer attitude: The another essential system of managing brand value is buyers
mentality towards organization. It is additionally fundamental for an organization to
concentrate on what observation and frames of mind purchasers have towards their item.
This causes them to deal with their merchandise and do upgrades whenever required. In
setting of prestigious brand M&S, organization additionally center around frame of mind
of their service users which encourages them to deal with their items quality and to
increase existing brand at market place (Schott and et. al., 2017).
Techniques for managing brand value
 Brand awareness: It is the method which makes familiarity with results of organization
among clients. The organization additionally set-ups different battle projects to promote
or spread consciousness of brand at market place. This procedure is likewise considered
by M&S which helps them to manage their brand value pull in such huge numbers of
clients towards them.
 Innovation: To manage its brand value company can continuously innovate new services
and products in market . But in this case, price of product will became high which can be
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a disadvantage for M&S. So manager is required to provide product in a genuine rate so
that large number of customer can buy them.
 Brand image It is referred to the image or reputation which is generated by M&S due to
the recognisable name of product in marketplace. Having positive brand image is the best
way to manage brand value of a company.
 Customer survey: It helps in acknowledging the satisfaction level of customer regarding
product. In accordance with customer surveys, manager in M&S can modify its products
if customers are not satisfied with them.
CONCLUSION
It has been summarised from the above report that Branding plays an important role in
increasing market share and profitability as it assists an organisation to influence interest and
buying behaviour of targeted customers. There are some suitable strategies of portfolio
management, brand hierarchy and brand equity. In addition, with this it also beneficial for an
organisation to expand or leverage brands at local as well as global level.
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REFERENCES
Books and Journals
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Hanna, S. and Rowley, J., 2013. A practitioner-led strategic place brand-management model.
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Hosaini, S. A., Rooshani, F. and Fathi, F., 2012. The Effects of Consumer Confusion on
Decision Postponement and Brand Loyalty Sport Clothing.
Iglesias, O., Singh, J.J. and Batista-Foguet, J.M., 2011. The role of brand experience and
affective commitment in determining brand loyalty. Journal of Brand Management.
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Kapferer, J. N., 2012. The new strategic brand management: Advanced insights and strategic
thinking. Kogan page publishers.
Keller, K. L., Parameswaran, M. G. and Jacob, I., 2011. Strategic brand management: Building,
measuring, and managing brand equity. Pearson Education India.
Liberatore, J. and Miller, T., 2016. Outbound Logistics Performance and Profitability:
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Pfisterer, H., 2017. European Regulation of Aerodrome Safety Managment Systems in the EASA
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Schott, P. and et. al., 2017. Making IoT Run: Opportunities and Challenges for Manufacturing
Companies. International Journal of Hyperconnectivity and the Internet of Things
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Wirtz, J. and et. al., 2018. Brave new world: service robots in the frontline. Journal of Service
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Online
Brand management-equity model. 2019. [Online]. Available
through<https://www.tutorialspoint.com/brand_management/brand_management_equit
y_models.htm>
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