Brand Management: Strategies for Building and Managing Brand Equity
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This document discusses the importance of branding as a marketing tool, the key components of a successful brand strategy, and different strategies for portfolio management, brand hierarchy, and brand equity management. It also includes examples from Dyson Ltd.
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 P1) Illustrate the value of Brandingas a marketing tool along with its emergence within organisation............................................................................................................................3 P2) Analyse the key components of a successful brand strategy for building and managing brand equity............................................................................................................................4 M2) Apply appropriate and validated examples within an organisational context................6 TASK 2............................................................................................................................................7 P3) Analyse different strategies of portfolio management, brand hierarchy and brand equity management............................................................................................................................7 M3) Critically analyse portfolio management, brand hierarchies and brand equity using appropriate theories, models and frameworks........................................................................8 TASK 3............................................................................................................................................9 P4) Management of brands collaboratively and in the partnership at domestic and Global level ................................................................................................................................................9 M4) Evaluate how different techniques are used in order to leverage and extend brands...11 TASK 4..........................................................................................................................................11 P5) Different techniques and tools to manage as well as monitor the value of brand at market place......................................................................................................................................11 M5) Monitor applications of different techniques to measure and manage brand value to evolve a strong and enduring brand:....................................................................................13 D1) Develop an evaluation and justified it with appropriate evidence by demonstrating detail understanding of branding in context of organization:.........................................................13 CONCLUSION..............................................................................................................................14 REFERENCES..............................................................................................................................15
INTRODUCTION Brand management is a marketing function that is related to adopting of techniques for enhancing the value of a product line. It is a function that is used by organisation for purpose of leading and attracting customers. Brand posses a impact on the purchase decision of customers. Present report is based in Dyson Ltd. Which was started in 1991 and was founded by James Dyson. The organisation is dealing in products such as hand dryers, hair dryers, vacuum cleaner. The report is based on importance of marketing and different components of marketing that are related to managing of partnerships and collaborative relationships at global level(Ströbel and Germelmann,2020). Portfolio management strategies and hierarchy management strategies are part of this report that is further assisting in development of a suitable brand image. There is evaluation of techniques of managing and measuring brand values. MAIN BODY P1) Illustrate the value of Brandingas a marketing tool along with its emergence within organisation Branding is an important marketing function that helps in order to create an unique identity of an organization at market place. It includes symbol, logo, colour and other visual elements belongs to company. This practice is essential to make a difference in product and services offer by business entity from other competitors. Dyson has strong brand value among the consumers of UK(Świeczak, 2016). The importance of brandingas a marketing tool in selected company is elaborated as follow: DevelopCustomer preference:Branding function is crucial to create a difference at market place. When consumers get satisfy with a particular product they give preference to the goods and services offer by that brand. It helps to create a loyal customer base and give competitive advantage to company. Marketing managers of Dyson, ensure to create a positive image of company among buyers. Consumer give preference to products of company over other competitors such as Bosch, Samsung electronics and so on.They need to use attractive name, logo, colour and other elements in order to grab the attention of new buyers. With this, it is analysed that managers of organization need to more focus on branding strategies and adopt new practices as per current trend.
Enhance market share:Branding helps to position the product or service among target segment. It creates an unique identity of company at market place due to which consumer give preferences to the products of a particular brand. Furthermore, it is essential to attract more number of new buyers that will increase revenue of organization. This function of marketing helps a company to enhance its market share by increasing in existing customer base. Dygon has strongpresenceinthemarket.Theyareusingeffectivebrandmarketingpracticesto communicate their USP with target audience. Mangers of company are able to make efficient strategies and policies to promote their brand in different countries(Barger, Peltier and Schultz, 2016). It will enhance their business and increase in the revenue and profitability.Nowadays, competition is increasing rapidly, so it is essential for organization to use creative and innovative approaches such as name, logo, colour, tag lines in order to increase in number of consumers and escalate market share. Competitive advantage:As per the prevailing trend, it is essential for business entities to differentiate themselves in order to sustain at competitive market place. Brand demonstrate the culture, identity of overall company that works as a point of difference for consumers. There are various other competitors of Dyson present at market place such as Samsung electronics, Bosch and many more(Schaufelbergerand Holm, 2017).Branding practices will help marketing managers of company to create a difference in their products. It will help them to grow and sustain at competitive market place for a longer period of time..It is monitored that organization should adopt brand extension strategy in which they can offer new products to target audience under the same brand name. It assist them to take advantage of their existing brand value at market place and simultaneously increase the profit margins Above discussion emphasis on the importance of branding function in the current scenario. It has been analysed that in order to create preferences among consumers, earn higher profits, it is essential to formulate efficient brand strategies. P2) Analyse the key components of a successful brand strategy for building and managing brand equity Brand equity is the premium value that is generatedby recognized products. There are some crucial products and services that lead to creation of premium value. In case of Dyson it is necessary to manage the brand equity that is that posses a direct impact on productivity and
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performance of a organisation(King, 2017). Brand strategy is regarded a a action plan that has to be considered for enhancing the brand image of a organisation. It is necessary to evaluate some key components of brand strategy for targetting audience, brand perception, brand promise and brand positioning. All such components are leading to creation of significant value towards brand equity for Dyson. Some of components are discussed below: Brand perception:It consist of the perception of brand image in external market and customers. It is crucial for organisations to identify and further analyse a market area to form suitable brand strategies.It can be said that brand perception is based on the images that are developed by customers according to the quality and variety of products that is actually experienced by customer. Target audience:It is regarded as customer base and market area that is considered by a organisation for offering their products. Brand equity is influenced by target audience of Dyson as Brand equity assist in managing of product especially according to customers choices and preferences.It isthe target market that is being targeted by brands so as to influence the customers and crate product according to customer demands & specification. Brand positioning:It is described as different brand strategies hat helps in creation of a positive image for a organisation and is products by focussing on positioning of the brand. In Dyson this process assist in increasing sales(Wang, , He and Barnes, 2017).it can be summarized that a brand can create effective position in the external market when there is focus on strategy formulation according to the changing dynamic environment. Brand extension:It is a process that is regarded where the focus is on already developed market with existing brand name. Dyson has been able to extend their products with the help of their established brand name that is leading to enhancing their present level of sales of newly launched products.Brand extension is a tool that can assist a brand by using their existing brand image to launch some new products or add new products to existinglines. M1) Evaluate how brands are managed successfully over time using application of appropriate theories, models and concepts There are different frameworks and model that is supportive for organisation for management of brand in a more appropriate manner. Customer based brand equity model that isKeller's brand
equitythat is significant for managing brand for a respective organisation. This model consist of four models that is recognizing loyalties and customer attitude. Level 1: Brand salience: It is identification of ways that can help customers in differentiation one brand from another. Brand identify can benefit Dyson to attract more customers. It is primary stage and is targetting particular customer section. Level 2- Brand meaning: It is a stage that is regarded as communication and interaction with customers according to products and services in which the brand is dealing. This level is divided in two basic parts that is performance & imaginary. Imagery is regarded as customer satisfaction at psychological and social level. Level 3: Brand response: It consist of customer response while they are purchasing a products from Dyson group. In Dyson group the organisation is willing to focus on culture of society to enhance the value that is being perceived by customers so that they are able to timely respond to the changing pattern and nature of buying behaviour of their customers(Maldonado-Guzman, Mellado-Sille. and Reyes- Ruiz, , 2018). Level 4: Brand resonance: It is the last stage that is sometimes difficult to be reached by organisations. This stage is reached when there is It includes company relationship with their future potential and present target market of customers. This model is going to assist in assessment of progress made by Dyson group. Below mentioned is the way assessment is being made of the progress of this brand:Brand revitalisation: It is a strategy that is adopted when products are reached at last stage of their product life cycle. In present scenario of Dyson group this strategy is not successful as Dyson is at the growth stage where they are launching new product to ensure success in market. Brand reinforcement: In this focus is on development of brand equity by increasing the popularity of brand for their existing customers(Kapustina, and Zhadko,2019). Dyson hasabletomaintainbrandreinforcementbyacknowledgingtheircustomersand increasing the value that is being perceived.
M2) Apply appropriate and validated examples within an organisational context. Dyson is a British brand that is dealing in high quality products and services. The organisation has been able to crate a storing brand equity and brand value with use of advance technologies. Respective organisation have to consider value to be provided to customers by features and design of the product in which the organisation is dealing. Dyson is mainly dealing in electronic products that includes hair dryers, vacuum cleaner. All these aspects are part of developing high brand equity of Dyson. TASK 2 P3) Analyse different strategies of portfolio management, brand hierarchy and brand equity management Portfolio management: Portfolio management consist of different investment tools that consist of mutual funds, stocks, bonds, cash and sharesthat are determined to take timely decisions. It is regarded as strategies that have to be considered for understand the trend of merging ideas in market. Brand portfolio strategy:It is a strategy that is part of brand equity. There are three components of a brand portfolio strategy that are adopted for purpose of formation of appropriate strategies. It consist of achievement of high returns with low level of risks(Shaari, 2018). Dyson isusing this strategy for achievement of higher sales and cost management. There are two strategies of portfolio management that are used by organisations as mentioned below: Active portfolio management strategy:It is a portfolio management strategy that is based on particular management style for generation of results so that there can be long run survival of organisationsandcompetitorsinexternalmarket.Dysonisinvestinghugeamountsfor generation of higher profits to achieve a competitive position in market. Passive portfolio management strategy: It is a strategy that differs from active portfolio Strategy where there are low cost investments for generation of better outputs. Dyson has not adopted passive portfolio Strategy as there sum of investment are generally very high.
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Branded house:It is a branded house Strategy that is easier to manage and a cost effective option for brands. As in this all the marketing activates are dedicated to one brand. There many be complex branding structures that are becoming more expensive and difficult to manage as the brand is growing. On this Dyson will build a string brand image that will be easily mensurable and recognisable by the target market. House of brands:It is a complete opposition strategy of branded house that is sub brands are promoted and features rather than a corporate brand. In this the hierarchies are very complex. In this the firm is operating like a holding company for different brands and each brand is managed with a separate company that is important to fulfil according to the requirements of this strategy. Hybrid strategy:It is strategy that is leveraging the strength of power and credibility of a corporate brand that is according to the specification and uniqueness of the brand. It allows the
company to expand further its markets share to other different market areas in order to enhance the process of corporate brand visibility. According to the above mentioned three strategies it can be siad that the most suitable marketing strategy for Dyson is to usebranded housewhen all the marketing efforts will be focussing on just one brand and it has to be managed by Dyson. It increase the overall focus of the target market towards different products that are manufactured by this brand. Brand Hierarchy:It is a process that is assisting organisation for enhancing their present goodwill. In Dyson there is adoption of brand hierarchy in three different stages: Leverage:It is the initials stage where the organisations is willing to build a brand image at horizontal & vertical axis(Depecik, 2016). Clarity:There has to be clarity of all the gaols and objectives that provides basic direction of the way strategies have to be implemented in long run in the organisation. Synergy:In thethird stage all activities are to be synchronized with company objectives. The major objective of Dyson is to provide high quality products that can lead towards achievement of higher competitive advantage. Types of brand hierarchy: Umbrella branding:It is a types of branding strategy that is adopted by organisations who already posses a competitive position in the market because of established brand image.
Corporate branding:Dyson is using this strategy to maintaining their brand image. There is focus on established brand name for purpose of attracting more number of customers. In this there is launching of new products with pre determined quality standards Brand Equity management: Brand equity management is adopted by transnationals or analysing different aspects that are part of the brand as mentioned below: Brand awareness:Brand awareness is a aspect of brand equity that is used by different target segment of customers who are willing to build brand equity(Sanz-Marcos, 2019). In this there is focus on creation of awareness by reminding customers about existing products that are already present in the market. It leads to increasing visibility of brand for future prospective customers. Brand association:It is related to building of connection with customers so that they can recall a memory of a brand. In this customers can form association with brands according to interaction, quality, variety and prices that are offered by such brands. The quality and variety are two basic sources that is helping Dyson in creation of higher brand associationwith their customers. Brand Loyalty:there is presence of customer loyalty for a brand when there is higher preferences as compared to different brands part of same industry. It related to respective customer behaviour. It is a very crucial aspect that is used for measuring brand equity as it is part of post purchasing customer behaviour that is indicating customer patronage for a longer duration of time. Dyson is using this aspect to ensure repeated purchase of customers. M3)Criticallyanalyseportfoliomanagement,brandhierarchiesandbrandequityusing appropriate theories, models and frameworks. There are different approaches and models that are adopted for analysing the brand hierarchies, portfolio management and bran equity. For development of brand equity the most suitable method is to apply Keller's brand equity model. It is a popularly used model that is used ti identify the appropriate hierarchy that is required to be considered by a organisation for advertising and promotion of brands.
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TASK 3 P4) Management of brands collaboratively and in the partnership at domestic and Global level Brand collaboration & partnership: Collaboration or co branding is a strategy that is adopted by brands as a strategic alliance Strategy. It is a common tern of co branding and brand partnership that is part of different branding collaborations. The main aspects of co branding are to combine market strength, brand awareness, positive associations of two or more brands for ensuring higher premium for customers. Brands management at domestic level: Managing branch at domestic level is related with some of the crucial aspects because branch affected by high competition supply chain regulations and some of the distribution issues that require constant advocacy and high reputation management. Organisations to manage this plethora of external and internal factors across multiple geographiesGlobal brand management practices have to be responsive growth-oriented resilient and future proof.Dysonis managing their brand at visible ensuring a consistency in the brand identity and marketing activities that is the core role of this organisation. There is management of teams across different marketing teamsondifferentstrategicissueslikemanagingbrandguidelinesandensuringhigher consistency in the positioning of brand and localisation of the brand communities. It is for the leading towards integration of local marketing strategy in the domestic brand strategy which is for the facilitating the exchange of knowledge and best practices between Global branding teams and local teams of Dyson. Brands are managed at global level: Brands are managed at international level by balancing the consistent brand guard race with the freedom to adapt the leverage local growth opportunities. Evaluation of brand strategy against the vision commission to ensure that there is consistency in the Global brand promise across regions and countries. There are three key issues that are focused by Dyson in order to manage the brand at global level. Adapt:This before going through International borders Dyson understands the consumer going to choose my products with other similar products that are already produced in the home country.
In this Dyson is focusing on the innovations and surely connect two cultures are not the same so there has to be effective marketing strategies. Provide:In this concept Dyson is focusing on providing higher value to consumers so that there is equation to the price Point by offering simplicity high quality of product and convenience that will for the lead to Innovative purchasing process to differentiate from other competitive brands. Brand:In this there has to be building of brand image so that there is dedication and timing that is properly invested by the management of Dyson in giving the brand a voice that comes to cultivating their brand image. In case of Dyson is focusing on building of a social media team so that there is proper engagement of prospective customers and using a need the campaign created on social media events. It was the leads to higher visibility that creates a positive image of the organisation and save them from making terrible PR mistakes while marketing. Above discuss are three strategies that are used by Dyson for the purpose of managing their International brand image at global level. Dyson is a brand that is managed by balancing of the“consistent brand guardrails” where there is freedom to adapt to leverage the local opportunities of growth. There is constant evaluation of the strategy of brand against guardrails, core mission and vision so that there is a consistency in the way Dyson is offering a brand promise across all their established locations. In Dyson it is ensure that there is no compromise with theoverall mission, vision or the core valuesof the brand so that there is higher consistency across all the regions and countries. Further the emergence of technology enabled solutions have completely changed the practise of brand management, there are forward thinking organisations that have identified the benefits and scalability of technology so that there are quickly adopted solutions. There is use of a marketing software in Dyson that is supporting their global brand management practises. Global branding & its positioning in market: Global branding is strategy that is used in organisation for ensuring that products are getting required recognition(Powell, 2019). There is promotion of brand by use of attractive marketing strategy with similar quality products & services. This aspect is part of standardised advertising & marketing strategies for developing a product.
Positioning in market: Global branding is related to benefits of economies of scale. There is use of strategies in firm of celebrities, advertising firms and images. Dyson is a globally recognized brand that is producing same quality products across all their locations. Brand extension: Brand extension is a marketing strategy that is adopted by organisation for development of a image by using a new product that is developed under a similar brand name that new product is recognized as spin-off in some cases. Many organisations are willing to focus on this strategy for the purpose of leveraging of brand equity. Brand extension approaches: There are some approaches that can be adopted for brand extension as mentioned below: Adverting is a commonly used brand reinforcement tool There is launching of similar products with different brand names Vertical expansionapproaching the same customer base Assessment of Fit and leverage in BE: Fit & leverage strategy is allowing a business organisation in acquiring some new customer base. Dyson can use this strategy while they are selecting brand extension for establishing themselves in different parts of world and also while they are willing to enter a new country. Bran reinforcement strategy: This strategy can be used when there is launching of a new brand launch where there can be extension of already established brand in market. For ex maple: there have been collaboration of many different brands such as spotify and uber. Where uber is one of ride hailing applications & spotify is a music application both collaborate together as they are sharing similar goals and willing to focus on innovation to cater to requirements of their target audiences. There has been use of creative approach by such brands where the customers while they are waiting for their cabs can enjoy music and not get bored(Schmidt and Baumgarth, , 2018). Examination of global branding & market positioning:
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Brands have to develop a competitive position in market and then further have to expand it, global branding is focused on to create a differentiate positioning in the market. For this Dyson has to identify customer insights that is part of their target market and then according to it further a global brand image can be created. Critical evaluation for Dyson: Dyson is a brand dealing in manufacturing and designing of household appliances like vacuum cleaners, hand dryers, heaters, lights and many such electrical appliances. There is focus on continuous innovation to build up customer loyalty for long term survival of this business organisation. For this there is launch of antibacterial technology by Dyson that is focussed on improving the hygiene situation(Ling-Yun, 2016). This new innovation is giving a wide brand recognition to Dyson as because of situations of COVID-19 there is now more focus on development of strategic alliances with other brands for ensuring their new product reach in all different locations and approaching of new customer segment apart from their existing domestic markets. Strategies of market penetration are now focussed for launching of new product. M4) Evaluate how different techniques are used in order to leverage and extend brands Brand leveraging techniques are undertake in order to enhance the market share of an organization. There are various methods such as brand extension, line extension and many more are use to leverage as well as extend a brand(Świeczak, 2016). To introduced more new products ans services to cater the needs of target segment is known as brand extension. While line extension refers to ass identical products in existing product mix of company. TASK 4 P5) Different techniques andtools to manage as well as monitorthe value of brand at market place Brand value is essential to get more consumers and to earn high revenue. Higher value helps to create loyal consumer base who give preference to the product or service offer by a particular brand. Inthe current competitive world, it is crucial for each ans everyorganization to consciously measure the position as well as worth of their brand among consumers. Managers of Dyson are using ample of techniques to evaluate their current position . That are outline below: Techniques to manage brand value
Brand awareness:It refers how consumer perceive and recognize brand of company. To gain more number of loyal consumers, it is crucial to create awareness about your products and services. It can be done through advertisements, promotional events, marketing campaigns and son on. It make consumers familiar about the goods offered by a particular brand. Dyson undertake various methods such as newspaper,T.V. Advertisement, celebrity endorsement, PR events in order to enhanceknowledge ofconsumers and to attract more number of buyers. Marketing mangers of company make sure their presence on various social media platforms so that buyer easily recognize their brand. This practise help them to increase in sales and to get an edge over other competitors(Graan,2016).Introduction to Business. In Dyson this technique is used by adoption of methods such as television advertising and the hoarding on public places such as outside the supermarkets that can assist the organisation increation of awarenessfor the target segment of customers. Customer Attitude:it depends on consumers previous experience with brand. It is important to maintain positive attitude of buyers towards products and services of organization in order to create loyal customer base. For this, Organization need to undertake market research to know consumers perception and make necessary improvements as per requirement. Dyson believe that customers are an essential part of business and focus to maintain good relationship with them. So, they emphasis to provide efficient pre and post sales services to target audience. It helps them to get a loyal consumer base who will not only do repetitive purchase but also suggest others to associate with the brand.There is a situation post services that is offered in Dyson where customer responses and feedbacks are tracked by offering them with a feedback form to analyse their level of satisfaction and at same time there is telephone conversation to verify if there are issues faced by the customers by thecustomer management departmentof Dyson in order to manage their brand image. Techniques to monitor brand value: Price premium Method:Organization charges extra price for prestigious products over other general products. And consumers are also ready to pay additional amount for quality and premium products(Gravili,Rosato and Iazzi, 2017).Dyson is a brand which majorly deals in home appliances and they are providing premium goods to potential buyers. Due to this, they are able to charge extra price over other competitors.In this technique customers are ready to pay the extra prices just because of the established trust that has been developed towards the brand.
Market Value Method:It refers the price on which buyers are ready to purchase a particular product. It is the price that is prevailing in market for the goods and services offered by an organization. Dyson adopt this method to measure the current position of its brand at market place. Marketing managers of company undertake a detailed study of present market conditions including competitors pricing strategies. So that they can formulate an efficient pricing policy for their products and services.The pricing strategy in Dyson is used according to its present brand value. Such as with every new product that is being launched there is a detailed evaluation of the competitors prices and the quality of product according to their quality standards, further based on the available brand image a particular price is set. Cost: Base Method: Under this method, company measure the overall cost that incurred in creationof brand value at competitive market place. It consist various expenses such as advertisement, promotion, marketing and many more. It assist organizations to determine cost and selling price of a products in order to earn significant profit margins. Marketing managers of Dyson evaluate the cost of brand establishment in order to monitor the profits earn by company. They monitor various cost such as advertisement, development, and so on in order to evaluate fair brand value of organization(Jaakkola and Jonkman,2018).the overall associated cost for measuring of the brand value is calculated and then prices are set by Dyson so that they are able to recover such cost of building of the brand image. Income Approach Method:It refers to monitor present brand value of company by evaluating future potential of brand to earn profits. Under this method, Companies evaluate their net future earning in order to know present position of brand. Dyson apply this method to know its potential about future earnings and to monitor current brand value at market place.In Dyson there has to be calculation of future earnings along with the present brand value so that t here is a co-ordination established between future course of earnings and the present brand value of Dyson. CBBE approach:Customer based brand equity is a model that help to know customers perception, thoughts, opinion about a particular brand. It is an essential model that is use to evaluate brand position at market place. Marketing managers of Dyson apply this model in order to know customers, experience with their brand.This modes is applied in Dyson in such a manner that there is evaluation of the present brand position by evaluation of the customers view points and their level of experiences.
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From the above discussion it has been analysed that there are ample of techniques that are execute by an organization in order to evaluate current brand value. It state several methods such asmarketvaluemethods,CBBEmodeltomonitorthecurrentpositionofcompanyat competitive market place(Pansera and Owen, 2018). M5) Monitor applications of different techniques to measure and manage brand value to evolve a strong and enduring brand: Brand value demonstrate the worth of a company among its buyers. It is wide term that consist the financial value and overall identity of a brand at market place. There are several techniques has been developed by marketers in order to monitor brand value of selected company. Various tools such as price premium approach, CBBE model, customer attitude, feedback towards brand will help Dyson in order to evaluate their brand performance and position among competitors in an efficient manner. D1) Develop an evaluation and justified it with appropriate evidence by demonstrating detail understanding of branding in context of organization: Branding that is an essential marketing function and help in increasing number of consumers of a business entity. It is crucial to differentiate organization's product and services from its competitors. Dyson may use various techniques to improve its brand equity and presence(Polonsky and Waller, 2018). It can use campaigns, events,digital platforms to create brand awareness among consumers. This will put significant impact on overall sales and profitability of company. It will help to attract more number of consumers towards brand.
CONCLUSION From above mentioned aspects it can be said that branding is a very crucial aspects of every business organisation for introduction of new products in market. With changing times it has become more crucial to understand different aspects of brand hierarchy and brand equity. It assist in enlarging of business for achievement of higher profitability and sales. Some of the ,methods that are used by organisations for managing their brand equity and measuring of brand value. It is crucial to ensure brand value of a organisation in order to mange the brand partnership and collaboration in effective manner.
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