Brand Management

This report discusses the importance of branding in business and its emergence in the market. It covers key components of successful brand strategy, management of brand hierarchy and portfolio, and domestic and international extension of brands. It also explores different strategies for brand extension. The case study focuses on Marks & Spencer (M&S), a multinational retail company.

Brand Management

Table of Contents
Brand Management..........................................................................................................................1
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Importance of Branding and its Emergence in Business........................................................1
P2 Key Components of Successful Brand Strategy.....................................................................3
P3 Management of Portfolio and brand hierarchy .....................................................................5
LO 3.................................................................................................................................................7
P4 Domestic and International Extension of Brands...................................................................7
LO 4.................................................................................................................................................9
P4 Evaluation of various techniques of Brand Management and measurement..........................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Brand Management refers to marketing function that undertakes practices that increase
perceived value of a brand overtime. Brand Management is aimed at increasing price of the
product and build loyal customers. For this management practices includes positive association
of brand and image and strong knowledge of the brand. This report includes management of
brand and other related factors. Importance of brand and its emergence in marketing have been
discussed in this report. Strategies for managing and building brand have also been included in
this report which is followed by brand hierarchy, portfolio management and brand equity
management. Collaborative and partnership brand management have also been discussed at both
domestic and global level. Lastly, different type of techniques for measuring and managing
brand have also been included in this report. This report discuss all these factors of brand
management in context of Marks & Spencer (M&S), this is a multinational organisation retail
company which was founded in 1884 and headquartered at Westminster, London, UK. Marks
and Spenser is engaged in selling home products, high quality clothing and food products and in
relation with its brand management It is one of the oldest and well-known brand in UK, M&S
have changed the way people think about shopping by focusing on value, quality and experience
that customers receive at M&S stores.
LO 1
P1 Importance of Branding and its Emergence in Business
Importance of Branding as Marketing Tool
Memorable Impression- Branding gives a memorable to consumer that allows them to
remember the brand, and they can make it their experience. Branding allows consumers to expect
from company and a particular product. Branding allows companies to differentiate them from
their competitors and communicate to customers why they are better option than their
competitors.
Company gets Recognized- It is branding what allows a company to get recognition. This
differentiates it from others and here company gets recognized for something special it offers to
consumers. In branding most important factor is logo of a company which is known as face of
the company and allows to recognize a product. It is important as it makes impression at first
glance.
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Generates New Customers- Companies when have strong branding increase their business
through referrals and which is because of strong image of the company in the consumers.
Branding also develop trust in customers so that they feel familiar and dependability of a brand.
Increase Business Value- Branding of the company and product is important it make it more
appealing and established businesses are more likely to attract investments.
Employee Satisfaction and Pride- Employees work for a company which have strong branding
it increases their pride and satisfaction from their job. This increased pride and satisfaction result
in improved productivity and performance of the organisation. Improved pride and satisfaction
which is associated with better image in the society also enhance belongingness of the company
and loyalty of customers for the company.
Trust in Marketplace- Strong image of the company which refers to branding build trust of the
company in marketplace. People are more likely to deal with a company that have a clean and
positive image in the market. Branding also gives professional appearance to the company.
Increase Company's capability to deal with crisis- Strong branding helps company to survive
and deal with temporarily crisis. Reason behind this is that company have managed to built trust
among people and branding have increased and strengthen that trust. In such situation company
can manage to deal with crisis with support of its people and people who trust on the company.
M&S have recognized all these importances of branding and have managed to build itself a
brand that people trust and which have led company to successfully business in various countries
for this long time.
Emergence of Branding
Branding which is about taking ownership of what company values and represent which
it claims to be better than its competitors. Emergence of marketing is not new and unknown it is
a concept which have emerged very long ago. In present environment of business branding have
become very important for survival and growth of business. Branding is about earning trust of
customer and other stack holders. Earning loyalty of customers means that customer will buy
products of one company that have managed to earn customer loyalty this allows repetition of
customers to buy product of a particular brand.
Why Branding Emerged
There are various reasons that justify why marketing have emerged.
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 Present business environment possess many challenges for a business and biggest
challenge among all of them is to deal with competitors and win over competition. This
required emergence of branding which can differentiate one product from another.
 Branding is about offering something which is specific and others do not have that
quality in their product. Most important in all these are superior quality and lower price
than competitors. Branding helps to create awareness and visibility in customers about
these qualities. Another reason that required emergence of branding is that branding correspond quality
of a product and present quality conscious customers have required branding.
How Branding emerged
From the time companies recognized that understanding consumers better than competitors
branding emerged when companies started their practices for managing their marketing-mix
well. Companies when started advertising about their products claiming that their products are
better than competitors. Branding started when companies started targeting people whom it want
to sell its product and whom company thinks are suitable for buying their products. Branding
started when companies chose where they want to position themselves in market and against
their competitors.
P2 Key Components of Successful Brand Strategy
Brand equity: Brand equity can be defined as premium value that an organization generates
from their products and services. Organization can create brand equity by making their products
and services superior and memorable in quality and reliability. When an organization creates a
positive brand equity, customer is ready to pay premium price for their products, even though
customers can get the same value from a different company's product and service for the less
price. Company's brand equity enable it to make a high profit margin.
The main components of brand equity can be grouped as, Brand loyalty, Brand recognition,
Brand awareness, Perceived value
Brand loyalty: Brand loyalty is positive association attached to a particular product and service
by the customer. Maintaining brand loyalty is more challenging and time-consuming to develop
and require a superior performance. It is the result of consumer's learning that only particular
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brand will satisfy their need. Creating a loyal customer and maintaining them is a complicated
task for every organization.
Brand recognition: The extent to which the public or target market of organization can identify
a brand by its qualities. M&S is known by everyone in the market for their quality that was
provided by it from past years. Company positioned itself as a high end value and target the
premium market segment. M&S brand evolved with the need and expectation of their customers.
Brand awareness: How customers are familiar with the company's products and services.
Generating brand awareness is complicated task for the firm who are newly in the market. It is
important for M&S success and for the overall goals of the organization.
Brand awareness foster the trust, creates association and creates brand equity
Brand positioning: brand positioning is creating a brand in a way that occupy a place and value
which is specific in the target customers mind. Brand positioning involves identification as well
as determining the point of similarity and the diffidences. It will create a good image of product
and services in the mind set of the customers. Brand positioning is the key element of marketing
strategies. There are many components that help out to create a brands position like logo of
brand, brand equity(which is value of the perception and expectations about the brand) and
packaging of the product. Company's brand strategy is an important tool to develop these
elements so that they work along with the mind set of the customers to give confidence to them
when they make decision of purchasing any products and services.
A brand logo identifies a company and their products via use the mark, symbol, signature or flag.
The role of packaging in marketing is quit significance as it is one of the way consumer noticed
the products of the company. Packaging and labels are used to encourage potentials buyers to
purchase the goods and services of the company. Packaging is also useful for the information and
convenience of product.
Label serve to gain the attention of the customers as well as provide general information about
the product of the organization. Labels was attached on the product to provide information like
manufacturing date, expiry date, its ingredients, its handling and how to use it.
Managing a brand over time: Brand management requires taking long term view of
recognition and marketing decision that any changes which supports marketing programme. The
strategies for reinforcing the brand by making adjustments to identify new source of brand
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equity. The importance of brand as valuable asset has been increased not only for corporations
but also for academicians across the glob. Brand products are mortal and follow a product life
cycle curve. When any organization attach adjustments under a brand make sure the core brand
image is untouched. A successful brand has a stand for something.
LO2
LO2
P3 Management of Portfolio and brand hierarchy
Portfolio Management
Portfolio management is defined as the art of organising different organisational assets
and financial products which company to earn optimum revenue with negligible risks involved in
it. M&s adopts portfolio management strategies as it helps the company to decide where and how
to invest the resources for optimum utilization for guaranteed returns to the future.
The most common type of portfolio management strategy is
 Active management where managers will typically spend quite a lot of time in analysing
the stock market and using quantitative analysis to figure out their moves in company.
M&S should use this portfolio management strategy as its most appropriate and relevant
to keep up with the changing trends in market share.
 Passive portfolio management is about meeting the market trends rather then beating
them. They work under the belief that the price of tocks will correct itself over time and
the market will continue to grow.
 Defensive portfolio management is one of the best strategy for companies who work with
ultra -conservative approach which is more about loss prevention than about gaining
profit margins.
Brand Hierarchy
Brand Hierarchy is described as a means of summarizing the brand strategy by a
company displaying the numbers and nature of common and distinctive brand elements ,multiple
products range and using the right brand architecture to grow sales. The key reasons why M&S
aims to have an effective brand hierarchy are:
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Customer satisfaction- A strong brand hierarchy aims the company to serve customers with the
large variety of products under the brand name. With highly competitive industry it is necessary
for the company to reach the customer satisfaction levels by offering supreme quality products.
Clarity offering- Following a strong brand hierarchy level at M&S,it aims the company to bring
clarity in the variety of the new products and services. When every brand is clearly defined,it
simplifies the choice for customers to shop from.
Effective production- The brand hierarchy aims towards bringing coordination and effective
production in completing the targets. M&S focuses in keeping the production levels with good
quality and management of brand hierarchy helps company to keep up with the production
levels.
Brand equity refers to premium value of brand that a company generates from its
products and services with recognizable quality, memorable experience and superior quality and
reliability. M&S focuses on keeping a strong brand equity because of high motives it serves for
the company.
 Having brand equity means the company has successfully differentiated itself from the
competitors in effective manner.
 It is generally easier for companies with strong brand equity to expand new product lines,
since the customers trust in brand image will allow to increase the revenue of sales and
increase the profitability margins.
 Keller's brand equity model is a brilliant explanation as it tells a brand which stage the
brand belong to and the strategies to upgrade the level of quality. It guides the company
on working efficiently. It explains how marketing costs for recognized brand with strong
equity are lower as many customers already know about the company and it posses strong
goodwill.
LO 3
P4 Domestic and International Extension of Brands
Brand Extension and Leverage
Brand leveraging is a strategy company use to extend its brand to new market and using
name of its brand to support its entry in new but relevant product line. M&S have used this
strategy at times and have managed to succeed in new product line using its brand name. In
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context with M&S it can be said that company deals in cloths, home products and food products
and for example company is now selling only food products but company can use its brand name
and start a new product line of food processors. Though both are different but there is a strong
relationship between both of them. This is an important strategy that allows company to easily
succeed in new product line by using already established name which have trust of customers.
Strategies for Brand Extension
Line Extension- Building existing offering and providing a launching a product in new way is
known as line extension. This includes providing one type of product to cater different needs of
people. For Example M&S deals in clothing so it can offer same type of cloth in different sizes.
Product Extension- This strategy includes launch of a product which is completely new from
existing products and for success of new product company uses image and goodwill of the brand
that is already known and have positive image. For example M&S sells food products it can also
sell beverages along with that.
Expertise Extension- Expertise extension refers to extension of expertise to explore new
possibilities related to brand. This leverage credibility and authority of the brand. For example
M&S sells home products it can expand its strategy to make automated products for home.
Market Extension- Companies when explore completely new sectors and spaces for its product
it is known as Market Extension. For example M&S sells food products for adults it can launch
baby food products and extend its market. Market expansion more clearly refers to target new
audience and customers and providing them what they require.
Geographical Extension- It refers to taking products that already exist into new market. New
market is concerned with geographically other location. Taking product to a new regional area is
taking it to new market. This strategy have definitely used by M&S as the company is operating
at more than 1400 locations worldwide.
FIT and Leverage in Brand extension
FIT in brand extension refers to boundary for a company. Company needs to research
what category of the product will be accepted by the company and what are the products that
consumer will not accept of a particular brand. In M&S company deals in retail and major
products of the company are food, clothing and home care products. These products have been
accepted by the people but customers may not accept medicines manufactured and sold by M&S.
This is what is known as FIT.
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Leverage refers to effect of different property that a brand owns that lead customers in the new
category to perceive the brand extension. For Example medicines of M&S may not be accepted
by customers but its furniture in its home products can be accepted by customers.
Brand Reinforcement and Revitalisation
Brand Reinforcement
This focuses on managing the brand equity by keeping the brand alive in new customers
and the customers who are already existing. This can be done by two methods one is brand
awareness and other is brand image. Brand awareness is about product of the brand, what are
its benefits and how brand satisfy needs of the customers. Brand image is about how is one brand
different from others and how brand create strong, unique and positive association in mind of the
consumer. M&S uses bith these techniques to reinforce its brand.
Brand Revitalization
Product when reaches to stage of maturity the product and its profits start falling this
strategy is adopted by companies. This strategy attempts to bring product again in market and
secure sources of its equity which are its customers. Companies can do this by adding new
feature in its brand and by advancing any feature that was already associated with the
brand. Companies can also change its marketing strategies so that customers can perceive
product in new form and manner. M&S is one of the oldest companies and that is why have
adopted this strategy many times to stay active in competition and sustain its success.
Brand collaboration and Partnership
Brand collaboration and partnership refers to strategic alliances in two or more brands to
develop a unique goods or service with intension to attain competitive advantage at the
marketplace. This is den by two or more companies to create a sales and marketing synergy
which is beneficial for both the companies. In this companies give exposure to other brands on
the terms of contract in a new market increasing their value and profitability.
Global Branding and positioning
Companies When operate worldwide need to brand and position themselves in such a
manner that company can create strong branding according to perception of various countries in
which it operates. M&S also adopts this policy and operate in various countries according to
choice of people of that country.
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LO 4
P4 Evaluation of various techniques of Brand Management and measurement
Evaluation of brand value involves checking worth of the brand. Branding is an
intangible aspect and that is why it is difficult for companies to check its value of brand that
brings to company. Important things that are included in Brand Value are
Trademark and brand name.
Logo and brand colours.
Unique strategy for marketing.
Assets in Digital form or licences.
consumer loyalty level.
Brand Value and its measurement is essential for branding and forecasting value of the branding.
There are various methods that M&S uses for measurement of its brand value. These are-
Cost-based brand valuation- This method values a brand using cost that have been incurred in
building the brand since its beginning. Cost is evaluated by
Historical Advertisements
Promotional expenditure
Costing of campaigning
Cost of Licensing and registration
Cost for trademark.
On the basis of all these factors of the cost related to a brand its value is measured.
Brand valuation based on Market-- This method of brand valuation uses comparison between
business and its similar business. Comparison between One or more points of business and its
similar brands that have been sold. The points of comparison are-
 sale of a brand which is specific
 transactions of company which Comparable
 quotations of Stock market
This is the amount for which the brand can be sell. This value is price of market transaction and
offer for similar brand.
Income Approach to Brand Valuation
To calculate the value of brand, the approach of income use net earnings of future which
can be directly attributed to the brand to decide its present value. Using this method the brand
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value is equal to the value of cash flow, income, cost savings hypothetically or actually or due to
the recognition and reputation of the brand.
Techniques for measurement of brand awareness, market share, consumer attitudes and
their purchasing intent
Brand Awareness
Brand recall and brand recognition are used for measurement of brand awareness.
Customers' ability to retrieve the brand from memory when they are given a category of product
is brand recall and customers' ability to confirm prior experience with brand is known as brand
recognition.
Market Share
Market Share refers to share of total sales generated in a particular market by a particular
company. It is calculated by taking total sales of a company over a period of time by dividing it
by total sales in that period of time only. Techniques to calculate market share which M&S uses
are-
By Volume- to measure market share by this method formula that is used is
Unit Market Share = Number of Units Sold by Company ÷ Number of Units in Whole Market
x 100
By value of share- formula to calculate market share by this method is
Revenue Market Share = Value of Company’s Total Sales ÷ Value of Total Market x 100.
Consumer Attitude- Refers to attitude and what consumers think about a product and what they
value product. This can be measured by interviewing consumers. This attitude of consumers
determine whether they will purchase a product or not. Whether they think product is effective in
satisfying needs of the product or not. This is most important variable for sales of a product and
value of its brand is also decided by this variable.
Brand Equity Audit
Brand equity audit refers to detailed analysis which shows current performance of brand
compared to its stated goals, and then to look at the wider landscape to check how that
performance of the brand positions it in the market.
The methodology is different depending on industry and individual companies. Regardless of the
exact criteria of measurement, an audit should allows to-
 Establish brand performance.
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 Strengths and weaknesses of the brand need to be Discovered.
 Strategy alignment more closely with the customers expectations.
 Understand place in the market comparing to competitors.
To examine internal branding positioning, voice, brand values, culture, product and USP are
examined.
To audit external branding brand elements, website, advertisements, social media, event displays
can be examined.
To perform Audit this process is followed by M&S
 Creating frameworks
 Question customers
 Review of web analytics
 Reviewing social data
 sales data review
 competitors position
 Takes action and lastly monitors results of that action.
Relationship between branding and finance
Branding and finance are closely related as strong branding results in increased profit that
strengthen financial position of the company. To establish and develop brand financial
investments are required and which is most important factor for effectiveness in branding.
CONCLUSION
On the basis of this report it can be concluded Brand Management is very significant for
every company in order to increase its profitability and for its success and sustainability this
report includes discussion over brand management and related aspects of brand management like
brand equity and brand value. The methods that are used to build brands have been discussed in
this report. This report discusses importance of branding as a tool of marketing. Which is very
important in order to increasing customers of the company. Discussion over its emergence in
marketing have also been included in this report. Reason for this is increasing competition and
orientation for customers' choice. Later this report discuss various aspects of successful brand
strategy which is used to management and building brand equity. Different strategy for brand
hierarchy, portfolio management and brand equity management have also be discussed and
analysed in this report. Collaborative branding that refers to branding of one or more companies
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together have also been discussed along with domestic and international branding. Techniques
for measuring and managing brand value in form of brand equity, brand awareness, market share
of the company and consumer attitude and purchasing intent of the customers have been
discussed in this report lastly.
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