Brand Management: Strategies for Building and Managing Brand Equity

This document discusses the importance of branding as a marketing tool and explores the strategies for building and managing brand equity. It analyzes portfolio management and brand hierarchy strategies, with a case study on Cadbury.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explanation of the importance of branding as marketing tool along with the ways it has
emerged in practice of business..............................................................................................1
P2. Analyse of components of successful brand strategy to build as well as managing brand
equity......................................................................................................................................3
M1. Evaluation of the aspects in which brands are managed in successful manner over time
with help of applying theories, models along with concepts..................................................4
M2. Application of appropriate addition to validated examples in context to organisation.. 5
TASK 2............................................................................................................................................5
P3. Analyses of distinct strategies concerned with portfolio management, brand along with
hierarchy equity management.................................................................................................5
M3. Critical analysis of portfolio management, brand equities together with brand hierarchies
................................................................................................................................................7
TASK 3............................................................................................................................................8
P4. Evaluation of the ways brands are managed in collaboratively manner as well as in
partnership at levels of domestic and partnership..................................................................8
M4. Critical evaluation on the use of distinct techniques that are used for leveraging together
with extending brands.............................................................................................................9
TASK 4..........................................................................................................................................10
P5. Evaluation of distinct techniques to measure together with managing brand values by
using particular organisational examples.............................................................................10
M5. Critical evaluation of various techniques to measure as well as manage brand values to
develop strong together with enduring brand.......................................................................12
D1. Critical evaluation to demonstrate comprehensive understanding of branding in context to
an organisation......................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Brand management is characterised as effective marketing function which is opted by
entities for enhancing perceived values of its brand along with product line over time. It enables
product prices to go up as well as builds loyal customer with the help of positive brand
associations, strong awareness about offerings and many more. Product, its price, packaging,
appearance and hence forth are some of tangible elements of brand management. Similarly,
intangible elements are categorised as experiences, relationships and many more that targeted
population have with the brand. To develop understanding about bran management, Cadbury is
considered which is a leading confectionery entity whose headquarters are situated in Unbridge,
UK. It operates in approx 50 nations having official presence to sell drinking chocolates, coffee
and other confectionary commodities (Cadbury, 2020). The managers of the entity are planning
to strengthen the brand in order to enhance market share and for this purpose, they have decided
to open its official outlets in Latvia in which it will sell its all the commodities to attract wide
population. The report demonstrates an understanding for the ways a brand is built and managed
over time. It further analyse how brands are perfectly organised in portfolios and ways in which
hierarchies are developed and managed. It also evaluates the ways in which brands are leveraged
over time in domestic and international level. At last, it evaluates some of techniques to measure
and manage brand values.
TASK 1
P1. Explanation of the importance of branding as marketing tool along with the ways it has
emerged in practice of business.
Brand is characterised as a design, symbol, name as well as other feature which helps
companies to distinguish their offerings from other ones that operate in same market. It is
majorly used in marketing, advertising along with businesses to gain recognition and creating
values in dynamic business environment. It is seen that the practice has emerged long time ago
and at large scale by the companies that execute activities and operations on multinational
platform for creating unique and distinguish image of the offerings. Branding is one of essential
marketing tool whose importance to Cadbury are the following:
Clearly deliver messages: Branding is the tool that helps marketers to deliver clear
messages to end customers (Branding as a marketing tool, 2020). In context to Cadbury,
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branding plays significant role in delivering clearly defined messages with appropriate marketing
strategy.
Expanding estimated worth: Branding also plays important role in enhancing estimated
worth of the company. Physical resources as well as number of employees do not contribute
huge in values of company in market as compared to the branding as tool of marketing. In case
with Cadbury, worth of business is seen through its branding equity in market.
Assist company to attract new distribution for its offerings: Branding as marketing
technique is significant for Cadbury as it provide valuable guidance with the help of which
multiple distribution channels are attracted to deliver products at local along with global scale.
Moreover, it helps in fulfilling customer demand as well as gaining high returns on the
investments.
Creates user loyalty: Branding is one of marketing tool is significant as it stimulates
audiences through presenting products in attractive manner that motivates them to make
purchase decisions and this creates loyalty among users. In association to Cadbury, branding is
important as it helps customers to purchase its confectionary products and develop loyalty with
the company.
Branding is emerged in business practice since long years ago. At centre of it, the main
role played in evolution of branding in business operation is identification of target audience.
Further, research together with study is next aspects that have gained sociological understanding
related to targeted customers and their demands and wants from commodities. All this involved a
procedure that played essential aspect in evaluation and development of brand in practices of
Cadbury. The first phase is determining target audience wherein managers of entity indulge
themselves in identifying needs and preferences of suitable market. After this, brand mission was
defined in which top management of company framed and defined mission statement as well as
embrace it to multiple channels (Balmer and Chen, 2017). Then the next work that was done is
research wherein potential companies that offer similar products was identified as well as major
decisions were taken to produce differentiated commodity that will be totally different from
those of rivals. Further, brand guidelines were determined in which managers states particular
guidelines to perform activities that will take the practices towards success. By following all the
procedures, managers of Cadbury worked to maintain consistency in all channels as well as
made them more recognizable. The last step was marketing brand with the help of suitable
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promotional tactic so that the brand is marketed in dynamic business environment. In all these
stages, marketing department of the company contributed huge efforts to create brand equity.
P2. Analyse of components of successful brand strategy to build as well as managing brand
equity.
There are various key components that are part of successful brand strategy along to build
and manage equity of brand in effective manner. All these are understood with the application of
wide methods and theories. In this context, one of the applied model or theory is Adkar’s Brand
Equity model for ensuring equity of Cadbury that is leading brand. Following are the elements in
which different components falls under the model:
Brand as tangible commodity: It engrosses scope, quality, values and attributes of the
offerings of company.
Brand as organisation: In this, elements related to organisational characteristics, global
activities as well as domestic practices are involved.
Brand as person: This illustrates about consumer brand relationships as well as
personality of the brand (Brooks and Anumudu, 2016).
Brand as symbol: This covers aspects relate to audio together with visual imagery,
heritage of brand addition to metaphorical symbols.
Cadbury is one of example that makes huge attempts in building and managing its brand
equity. With the help of the model, the managers are able to make brand reinforcements along
with extension by emphasising on the key components that are analysed underneath:
Brand loyalty: For a brand, it is very essential to enhance customer loyalty for the
organisation. It is one of key component that states that when the brand has more loyal customers
then it will assist it to design successful strategy along with maintaining equity among wide
customers. In association to Cadbury, it is done through compelling advertisements which
attracts mass population and enhances commitment of customers that helps it to build and
manage equity of the brand.
Brand awareness: This component is key in successful branding as it helps in spreading
awareness between customers in context to who the brand is and what it practice. In association
to Cadbury, its marketers time to time stretch information among customers through multiple
activities and methods that are branded packaging, search engine optimisation and so on for the
purpose of recalling it which results in managing brand equity effectively.
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Perceived value: It is another component that is associated to reasons to buy offerings of
company. It is seen that the perceptions of audiences is very important to making brand
reinforcement as well as extension a successful one (Beverland, 2018). Moreover, the duration in
which quality is attributed with offerings of company such as Cadbury, its products that are
related to the brand are perceived with huge quality that determines creating brand image as well
as managing the equity. For this regards, the entity makes various differences in the products and
services through adopting multiple channels and enhancing product range by adding more
variants in it.
Brand association: It is also a key component in branding as brand association assist firms
to engage its customers with the entity and this leads in effectively managing brand equity. In
context to Cadbury, it can enhance brand association by communicating properly with mass
population and providing them attractive benefits that they can gain after purchasing the
commodities. This will help in achieving success in the strategy as well as managing equity
effectively.
Moreover, business concerns are required to design and implement various concepts for
the purpose of overcoming brand crisis. In this context, Cadbury managers can adopt focused
approach. Along with this, it is perceived that in last few duration, the company faced some of
issues that are related negligence of legislations which significantly impacts or impacted on the
brand. To deal with this, it can gain advantages from Automation Technology for the purpose of
dealing with issues of neglecting legislations in logistics and distribution system.
M1. Evaluation of the aspects in which brands are managed in successful manner over time with
help of applying theories, models along with concepts.
It is seen that Cadbury is the brand that has managed its practices in successful manner
through application of Adkar’s brand equity model for the purpose of enhancing entire aspects
related to the brand. Within the model, manpower of the company makes attempts in different
ways so that the brand is managed successfully (Chernev, 2018). Moreover, the concept of brand
equity model also helps the company to establish relation among audiences and brand for
enhancing equity. By using the model and concept, Cadbury attains distribution advantages and
makes distinctive physical design that assist in managing brand equity. However, building brand
equity through the models and concepts requires huge investment that reduces profits and
revenues of company that impacts negatively.
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M2. Application of appropriate addition to validated examples in context to organisation.
Cadbury is leading business concern that is based on UK. The company implements certain
models and concepts for promoting its brand equity in market. At present, the organisation has
evolved and manages the brand over time with the help of key components to design successful
brand strategy as well as manages the equity also. The key components are brand loyalty,
perceived values and many more. Along with this, the business also needs to reinforce and
extend the brand in other nations to achieve large market share and overcome challenges too.
TASK 2
P3. Analyses of distinct strategies concerned with portfolio management, brand along with
hierarchy equity management.
It is perceived that Cadbury is the confectionary company that executes practices in
dynamic and competitive market through adopting various strategies to manage its wide
portfolio, hierarchy of brand and brand equity. In this regards, following are the analyses of
certain strategies:
Portfolio management
It is defined as the action to create along with maintaining mixture of various
commodities and policies in business. It is seen that Cadbury has strong portfolio and all are
managed through the following strategies:
Passive management: The strategy which relies on aspect of particular analysis style as
well as management so that huge returns are generated to beat the market. The strategy generally
involves higher average costs as well as stresses on attaining benefits from inefficiencies of
market (Chinomona, 2016). If managers of Cadbury will adopt the strategy to manage its
portfolio then they can attain advantages related to reducing risks of decision errors, low
involvement and will control overall allocations. At same time, its disadvantages are that it
involves risks that can hamper management of exiting portfolio.
Active management: The strategy that is related to making precise investments to
outperform portfolio benchmark index is said to active portfolio management strategy. If
managers of Cadbury will follow the strategy then they can exploit inefficiencies of market
through purchasing undervalued securities or selling overvalued stocks. It generally involves
generating precision investment or buying and selling securities that can be either done alone or
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amalgamation of all. By using the strategy, the entity can gain advantages of managing volatility
risks, correlating market functions and achieving particular portfolio objectives. However, while
using it, the company can face certain disadvantages that are high transaction costs and short
term gains only.
From the above analysed portfolio management strategies, Cadbury managers follows
active portfolio management strategy so that they can effectively exploit inefficiencies of market
and generate profits through diverse portfolios.
Brand hierarchy
It is termed to the summarisation of branding through displaying numbers along with
nature of similar as well as distinctive elements of brand across products of company. In order to
differentiate the brand from others, following are some of brand hierarchy strategies that could
be followed by Cadbury:
Branded house: It is the strategy in which companies promotes entire sub brands
individually so that they can improve the brand value of all the offerings and services (Cooper,
Merrilees and Miller, 2015). If managers of Cadbury will adopt the strategy they are required to
make huge investments for developing individual products. Moreover, it will help in enhancing
sales demand for all the products of the brand.
Corporate branding: In this strategy, business managers indulge themselves to promote
and manage hierarchy of well popular commodities under one brand. In this, main intent of
advertising tools are indulge to enhance sales performances of company. If Cadbury managers
will implement the strategy then they can successfully manage distinct hierarchy of products and
leverage wide customers towards it.
From above analysed brand hierarchy strategies, it is seen that managers of Cadbury
implements practices by following umbrella branding that helps in effectual utilisation of brand
individual brand name for the purpose of selling two or more related commodities. It is utilised
as affirmative strategy that reinforce brand to generate awareness.
Brand equity management
Brand equity is said to values along with strength of brand which states its worth. In
order to manage brand equity, managers of Cadbury can apply Consumer based brand equity
model that will help in strengthening entire brand effectively in competitive market. The model
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involves certain elements that are salience, performance imagery, resonance, judgment and
feelings. Moreover, some of the strategies to manage brand equity are as follows:
Holding brand image: It is one of effective strategy to manage brand equity as when
company holds image in market that they gains success in managing equity of brand (DiMartino
and Jessen, 2016). If Cadbury administrators will implement the strategy then they can render
actual commodity including of various features that they promised to provide to customers.
Innovation: it is all about adding or modifying existing products into a new one.
Offering something innovation generally helps in managing brand equity. In context to Cadbury,
when the strategy will be adopted in real life then managers will be able to make unique position
and this will result in effectual management of brand equity.
As per analysis of certain strategies, it is perceived that Cadbury follows innovation
strategy for the purpose of managing brand equity. This improves its effectiveness, solving
problems and attracting wide customer base towards it.
M3. Critical analysis of portfolio management, brand equities together with brand hierarchies
As per the discussion, it has been critically evaluated that there are two types of portfolio
management strategy that are active and passive. Adoption of any one of them benefits the
company to exploit market inefficiency whereas also gas some limitation that is huge transaction
costs. In context to brand equity management, Cadbury adopts innovation strategy that benefits
in offering something new and acquiring huge market share. However, its limitation is that to
innovate existing products huge resources are required that can limit revenues of company. In
context to brand hierarchies, umbrella strategy, corporate strategy and many more are there that
can be adopted to gain advantages in competition (Hollebeek, 2011).
TASK 3
P4. Evaluation of the ways brands are managed in collaboratively manner as well as in
partnership at levels of domestic and partnership.
Brand leveraging is one of term that is related to using power and fame of existing brands
to enter in new segment but in related category of product through communicating valuable
information to audiences. Moreover, it is generally done with the help of effective
communication technology so that targeted customer segment are informed about products.
Cadbury is leading brand that manages its working in domestic level through using brand
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leveraging strategy. Similarly, Brand extension is said to the aspect wherein a company markets
its commodities with well developed advertisements that can be used by same brand name that
sells distinct categories of product. The company has made various attempts to manage the brand
in partnership with other companies through using leveraging strategy. Following are the
extension and leverage strategies:
Strategy Line extension strategy Brand stretching
Meaning In this strategy, new variants
like new product formations,
colours and flavours are
launched with same product
category so that brand name is
established and managed
effectively (Hwang and
Kandampully, 2012).
In this strategy, the company
exploits opportunities in
premium along with value
segments of market. It enters
in value along with premium
segments.
Advantages By using the strategy,
Cadbury enjoys advantages of
enhancing wide options to
reach customers that are
resides at far distances.
The strategy provides
advantages of increasing
market shares in other nations
and offering the commodities
that are not yet delivered
under the brand name.
Weakness The main weakness of the
strategy is that it adds various
costs to company while
researching about the
company that sell similar
product and this also limits
productivity of the brand.
The weakness that can be
experienced by Cadbury after
using the strategy is that it
adds huge transactions and
requires more investment that
reduces revenues and other
aspects.
Brand collaboration and partnership
To manage the brand successfully, managers of Cadbury took following decisions to
collaborate and work in partnership:
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Cadbury managed the brand through partnering with Richard Hudson which was local
confectionery businessmen so that it can grab market shares of other nations. Moreover, the
company made partnerships with other sponsors such as Premier League that is official company
which provides snacks in awards (Cadbury, 2020). After the partnership, the company attains
huge market share and recognition in international market.
International branding and positioning
The managers of Cadbury adopted multiple channels for creating brand awareness as well
as position it in international market. Along with this, it also initiated producing various varieties
of commodities under its brand name. it has been seen that the company started producing
confectionary commodities after understanding requirements and choices of targeted population
that successfully helped it to create leading position in the industry as well as in international
market.
Ansoff matrix:
The framework is useful for Cadbury to leverage or extend the brand over time in
domestic and international market. It is strategic planning tool through which managers of the
brand are able to devise effective strategies for future expansion and growth. Following are the
strategies of the framework:
Market penetration: In this, managers makes focus on enhancing sales demand for
current products in exiting market.
Product development: The strategy wherein organisational administrators focus in
launching new products in current market.
Market development: It is the strategy wherein main emphasis is on entering in new
market or region through existing products.
Diversification: The strategy which is adopted for entering in untapped market with a new
product.
From the mentioned strategies, managers of Cadbury can adopt market development in
order to enhance market share of new market through selling current commodities for attracting
large customers and strengthening the brand.
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M4. Critical evaluation on the use of distinct techniques that are used for leveraging together
with extending brands
To leverage and extend brand, managers of Cadbury used two types of strategies that are
line extension and brand stretching. It has been evaluated that line extension provides wide
advantages of various options to enter. However, it adds multiple costs to company due to which
unfavourable circumstances are faced by business. In context to brand stretching, it benefits the
entity in enhancing its market shares (Jiang and Iles, 2011). However, it restricts making more
revenues as it involves various transactions.
TASK 4
P5. Evaluation of distinct techniques to measure together with managing brand values by using
particular organisational examples.
Brand Values
It is stated to the value in terms of financial or non financial which is attached with the
popular brand name in the industry (Stobart, 2016). For enhancing brand value it is essential for
an entity to expand the business so that huge achievements can be made and more revenues are
generated. For example, brand value of Cadbury is high as the entity time to time launches new
products in its product line and also makes various changes in existing products in accordance to
customer preferences and taste. Along with this, it is also analysed that the entity has huge
customer base, revenue margins, sales demand and market share that reflects its brand value in
the competing market. Following are different techniques through which the administrators of
Cadbury measures and manages brand values:
The techniques through which managers of Cadbury measures brand value are as follows:
Video view: It is the simplest technique through which brand awareness of
company is measured and managed (Nguyen, Melewar and Hemsley-Brown, 2019). Managers of
Cadbury use the technique through analysing the percentage of population that has viewed its
video which is broadcasted or posted on different channels. According to the view list and
percentage, Cadbury managers measure the brand and also take remedial actions as quickly as
possible to manage brand values.
Doc view: It is another technique in which managers of company prepares reports in doc
about the number of promotions and market size that the entity have enhanced through launching
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a new product. Cadbury managers uses the doc view technique for preparing reports about
customers and expansion results in the market.
Market share
It is the proportion that a company has acquired in market. Various techniques that are
opted by managers of Cadbury to measure and manage values of the brand in context to market
share are underneath:
Market share building: By using the technique, administrators of Cadbury segments
entire market in different groups and then build brand vale through offering new product
innovation, delivery systems and so on. With this, company measures and manages its proportion
of shares in market to ascertain brand value (Paul, 2019).
Market share maintenance: This type of technique is little complex as it involves
optimisation of resources for attaining growth and then maintaining values that takes huge
duration. It is seen that in very limited circumstances, it is used by managers of Cadbury for
measuring values of brand.
Consumer attitudes
Different customers have different values which are measured and managed by Cadbury
managers by using following techniques:
Customer satisfaction: It is effective technique that states about the satisfaction level of
customers through using the organisational products and the ways they perceives the brand
(Pecot and De Barnier, 2017). In context to Cadbury, this technique helps in measuring customer
satisfaction from the diverse commodities that are offered to them at different locations and
duration.
Structured mechanisms: It is a systematic approach in which customer attitudes are
analysed through categorising them into different forms that are disguised and non disguised. It
helps in understanding consumer attitudes towards offerings and if results are favourable then it
is analysed that the brand value of company is huge among customers.
Purchasing intent
It is mentioned to the chances in which consumers makes purchase of products.
Following are certain techniques that play huge important role in measuring and managing
values of Cadbury in terms of purchasing intents:
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Offers: In this technique, Cadbury first offers high quality commodities at different
discounts to buyers (Ramírez, Veloutsou and Morgan-Thomas, 2019). With this, it enhances
willingness of customers to purchase products and when numbers of commodities are purchased
by used then the entity measures its brand value among them.
Funnel Model: It is the technique that Cadbury managers follow to analyse values of the
brand among customers. It illustrates about purchasers journeys for making decision to purchase
the products. At different phases such as awareness, interest, consideration, evaluation and
purchase various actions are taken which states the ways brand values are managed by company.
M5. Critical evaluation of various techniques to measure as well as manage brand values to
develop strong together with enduring brand.
It has been critically evaluated that Cadbury managers uses wide number of techniques for
the purpose of measuring and managing its brand value so that it can develop strong and
enduring brand in market. Some of the techniques are customer satisfaction, surveys, Funnel
model, offers, structured mechanisms and hence forth (Rauschnabel and et. al., 2016). All these
techniques benefits Cadbury in ascertaining values that the brand has in competitive market.
However, some of the disadvantage of using them is that they all are time consuming and fails to
provide accurate results.
D1. Critical evaluation to demonstrate comprehensive understanding of branding in context to an
organisation
Branding is mentioned to an action that is taken by company to mark its presence in
different manner that form competitors. Branding is more important in Cadbury as it helps in
expanding in other nations and generating huge revenues. Along with this, it assist forms to keep
presence in saturated market, gaining consistence, establishing effective strategy and so on. In
contrary, its limitation engrosses creation of confusions, time consuming approach and leads to
monopoly (Rosenbaum-Elliott, Percy and Pervan, 2015).
CONCLUSION
Building effective relations with targeted audiences is significant to manage brand. In present
era, managers consider the concept as effective tool to improve and manage goodwill and
position of brand in competitive market. Importance of branding as marketing tool includes
clearly deliver messages, expanding estimated worth, assist company to attract new distribution
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for its offerings and creates user loyalty. Components of successful branding and build as well as
managing brand equity includes brand as tangible commodity, as organisation, as person and as
symbol. There are wide number of strategies related to management of portfolio, brand equity
and hierarchy that an entity opts. Distinct strategies concerned with portfolio management are
passive management and active management, strategies with brand hierarchy includes branded
house and corporate branding, strategies of brand equity management comprises of holding
brand image and innovation. A company attains success through line extension and brand stretch
so to collaborate activities in partnership or effective run in international market. Distinct
techniques to measure together with managing brand values are video view, doc view, market
share building, market share maintenance, structured mechanisms, customer satisfaction, offers
and funnel Model.
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