Consumer Behavior and Brand Equity

This assignment delves into the intricate relationship between consumers and brands, focusing on the construct of Consumer-Brand Brand Equity (CBBE). It examines various models that explain CBBE, explores its key dimensions, and discusses the practical implications for brand management. The analysis draws upon a selection of academic articles and online resources to provide a comprehensive understanding of this crucial marketing concept.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Importance of branding as a marketing tool and why and how it has emerged in business
practice........................................................................................................................................1
P2 Key components of a successful brand strategy for building and managing brand equity....3
TASK 2............................................................................................................................................6
P3 Different strategies of portfolio management, brand hierarchy and brand equity
management................................................................................................................................6
TASK 3............................................................................................................................................8
P4 How brands are managed collaboratively and in partnership both at a domestic and global
level.............................................................................................................................................8
TASK 4............................................................................................................................................9
P5 Different types of techniques for measuring and managing brand value..............................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Brand management is an important activity for every business organization to manage all
the tangible as well as intangible characteristics of a particular brand in market place. In this,
tangible elements include products, price, packaging and many more which helps on evaluating
the customer’s experience. One of the important aims of brand management is to establish a
strong emotional connectivity with customers by conveying message and gaining customer’s
loyalty towards the products and services (Brand Management - Meaning and Important
Concepts, 2017). With the help of this, company easily builds customer’s trust and also capture
niche market by delivering high quality products and services. Present report is based on Coca-
Cola which is a popular and biggest company that was invented by Doctor John Stith- Pemberton
in 1886. They cover almost 40% market share in the UK. The vision statement of this company
is to bring their brand image in all across the world by satisfying customers’ needs and demands.
This report has discussed about key components of successful brand strategy which help in
managing brand equity in the market. Along with this, various brand management strategies are
also mentioned in this project.
TASK 1
P1 Importance of branding as a marketing tool and why and how it has emerged in business
practice
Brand:
Branding is an effective process which helps in creating unique and specific name as well
as image of the products which define clear commodity of particular firm from other competitor
goods. Main aim of branding is to differentiate their products quality which help in maintaining
loyal customers for a long time period. Basically, it shows customer’s taste towards company’s
products and services by evaluating their reputation and logo in the market place. With the help
of this, consumers easily identify specific products for satisfying their needs in the most effective
manner. Along with this, it is important for organization to establish their brand image in front of
customers so that they can easily capture a large market share from its rivals. Basically, it is one
of the significant activities for business organization to effectively manage their products brand
in order to attain competitive advantage in market. Effective brand image of company helps in
increasing their sale and profitability in appropriate time period (Santos-Vijande and et. al.,
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2013). One of the main aims of branding is to establish specific differentiate presence that
directly aid in attaining large number of loyal customers. Basically, it is a marketing strategy
which is used by company to differentiate their products form competitors in order to maintain
their reputation at market place (Som and Blanckaert, 2015). In this context there are importance
of branding as a marketing tools which are as follows: Branding enhances recognition: Brand logo is one of the important components which
helps in inviting as well as attracting more buyers which directly contribute in increasing
the overall sale of company. In this Coca-Cola follow their one brand strategy to enhance
their profitability level. Under this implement new innovation in their product line to
maintain their market growth. In this they include classic, diet coke and so on. For
influence customers buying activity they promote their products with more effective
characteristics. With the help of this, they can easily capture a large market share. Brands provide a stable asset: In organization, various changes take place which reduce
the product’s sale but if company has its strong brand image in market then they easily
implement all the alteration effectively and get positive results. In this Coca-Cola serve
their customers from 19th century which is very long as compare to its competitors. Its
brand image is strong in which they easily satisfy their customers by delivering their
services to their target customers. Branding generate new customers: Coca-Cola easily attracts new and number of buyers
by offering their services. In this context, they launched their Zero-Sugar products in all
over the world which helped in increasing its sale up-to 35%. Strong brand image is more
effective for the business organization to capture larger market share by enhancing
profitability of the firm. By this, Coca-Cola increased their customer base in an effective
way which leads in attaining higher success at market place.
 Brand sets expectation: In today's competitive market all the customers satisfy their
needs as per their expectations. It assist in enhancing prospect of the buyer towards the
company products. In context of Coca-Cola, no sugar no calorie products helps in making
the customers base within the organization. In this company provide quality services as
per customers’ needs in order to get their higher satisfaction level (Wallace, Buil and de
Chernatony, 2014).
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Along with this, there are number of changes in which customers get confused about
company products and its brand. But both terms are totally different from each other (Zaglia,
2013). In this differentiate between products and brand are as follows in below mention:
Brand Product
Brand is unique term which defines their
specific nature in market.
Products are copyrights which is produce in an
industry for selling purpose.
Brand is made by customers taste which can
not copied by another.
Products can be copied by another company
and competitors.
Brand is a distinguish which build customers
perceptions.
Products are tangible and intangible by nature.
Hence, branding is a key element which contributes in the overall success of company. It
defines better connection among the audience and also get their trust towards products which
leads in enhancing profitability of company in market. With the help of this, company easily
attains competitive advantage at market place and also gain higher success at global level.
Along with this, there are difference between strong and weak brand are as follows:
Strong brand Weak brand
Strong brand helps in increasing profitability
level of the company.
In this weak brand negative impact on
company image.
With the help of this company easily expand its
business activities.
If company having weak image at market place
then they can not able to increase their
operational activities in new areas.
One of the main advantage of strong brand
image for company is to increase overall sale
of the company.
Weak brand reduce the customers base because
no one purchase its products which directly
reduce company sale at market place.
P2 Key components of a successful brand strategy for building and managing brand equity
Brand equity define value of the brand which is evaluated by experience and perception
of customers in market place. In this positive thinking of the people towards the brand image of
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the company leads in generating strong brand equity at market place (Ashworth and Kavaratzis,
2010). On other side, if products are under-delivers which create negative brand equity that
reduce company image at market place. So that tit is more important for multinational companies
to produce new and innovative products in order to invite larger customers base within an
enterprise that it directly helps in maintaining strong brand equity. In this context Coca-Cola
have larger number of customers experience which is possible by strong brand equity at market
place.
Positive brand equity has value:
 Higher brand equity increase cost of the products of the company at market.
 Brand equity helps in transferring product line extensions which aid in generating higher
return in most systematic manner.
 Strong brand equity helps in boosting the market share as compare to its competitors.
Along with this there are some effective elements which helps in making string brand
equity at market place are as follows:
Brand awareness:
It is one of the effective constitute which relate with the brand in order to attract as well
as influence the buyer to buy the products and services of the company. In Coca-Cola context, it
is famous as well as popular company which covers all the location over the world and every one
well knows about its brad effectively (Brodie and et. al., 2013). It define their product portfolio
over the various brands. In this it considered authenticity, self belief of customers and many
more which helps in taking competitive place at market place and also develop their brad image
in customers mind.
Perceived quality:
It defines customers taste and perception about quality products of the company which
relate with the deliberative purpose. Basically it shows customers opinion as well as views
towards the products and services which were offer by the company in market. In market place
number of customers use Coca-Cola products in their regular life activities. It hugely impact in
customers purchasing power which leads in enhancing positive brand image at market place.
Brand association:
Brand association is a symbols and image of the brand which helps in setting the
customers mind towards the products. It assist in evaluating the positive image at market and
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individuals mind also. Basically it defines various aspects such as public relation, quality, price,
advertisement and many more which helps in enhancing the brand image and also develop
customers awareness towards the products and services.
Brand loyalty:
Coca-Cola has number of brand loyalty customers which make them successful at market
place. In this company make various changes in their cans design a and also change their brand
logo in past year. Due to this, still customers never loose their trust towards the brand and loyal
with the company and its products. But in competitive time Coca-Cola face various challenges in
managing their brand in market. Globalisation and Emerging market is a big reason in many
another companies entered in same line industry which affect the performance of Coca-Cola in
negative manner. In this various challenges are define in below which is faced by the company at
the time of managing their brand at market place are as follows:
 Low-calorie cola performance:
In today's modern era, government and media are concern towards the sugar content in
their production process of soft drinks which helps in increasing the scrutiny (Buil, De
Chernatony and Martínez, 2013). In this context, Coca-Cola make calorie drinks which leads in
enhancing the brand image and involve in top ranked list of brands. On the other hand some time
company produce high calorie products sure to various dynamics which directly impact on brand
image in negative manner. By this they reduce their market share and also fails in inviting larger
customers base.
 Building brand internally:
Without workforce as well as staff members, it is more complex for the organization to
attain integrated communication of marketing because employees are effectively know about
company vision so that they work accordingly. With the help of this company easily attain
competitive advantage in most effective manner.
 Emerging market performance:
Coca-Cola prevails in emerging market in which competition level is increased. In this
Pepsi Co. is big rivals of Coca-Cola in which they tries to diversify their product range in same
lime. In this it is complicated for the firm to maintain their performance at market place due to
new entrants within emerging market place. Along with this, In today's competitive market new
competitors are tries to use new tools and techniques in production process to offer quality
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services at lowest rate so that they easily retain large number of customers within their
organization for long time period.
 Health and wellness trends:
Coca-Cola define their wide range of brands in which they introduce juice and drinking
beverages which helps in providing them winning place at market place. In which it is more
important for the company to maintain health and wellness at the time of offering quality
services to their customers. In this context UK government also regulate trends to met all the
angles to improve overall performance at market place.
Challenges faced by organization at the time of developing brand or new products: Finance: Funds are important for company at the time of developing brand at market
place. With the help of this company execute various activities such as promotional
activities, packaging, raw materials and many more. So finance is core need of the
company if they no keep enough finance then they fails in developing their brand.
 Production: It is one of the important for business organization to serve quality services
which helps in satisfying customers demand as per their requirements. For providing
them same company use new and innovative technologies for their production process. If
company will not use advanced technologies then they reduce their customers base which
negatively affect sale of the company.
TASK 2
P3 Different strategies of portfolio management, brand hierarchy and brand equity management
Brand management is one of the effective planning process to evaluate that how brand
take place in market and customers mind. It is also responsible for developing string relationship
with consumers and market (Christiaans, 2012). String brand management helps in building the
positive image and enhance the customers awareness towards the products and its brad which
leads in increasing the overall profitability of the company. Basically it is a top growth field in
which firm easily maintain their product performance and also get favourable results. It include
tag line, logo, price, packaging and many more that describe actual quality of the products at
market place.
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Along with this brand equity management is an appropriate concept which helps in
creating relationship among firm and customers (Dempsey and Gruver, 2012). It also helps in
building customers loyalty towards the products of the company.
One of the important benefit of Brand equity management is to enhance overall brand
loyalty and position at market place which totally differ for its competitors.
Brand Portfolio Strategy:
It is an effective procedures which helps in operating more than one brands products and
service in market place. In this company offer various products in single firm such as Coca-Cola
define their sub brands like Maaza, Thumps Up and many more. In this context company use
best strategies of the business are as follows:
 Driving Revenue and Profit Growth: In this, it is important for the company to make their
product effective and affordable. With the help of this company build their image at
target market. Along with this, company easily reach their customers and provide them
better service as per their requirements. By this, firm gain more profitability level at
market place.
 Investment in Brand and Business: It is more important for the organization to invest they
fund in making strong brand at market place in which they include advertisement and
many more which helps in crating strong brand image at market place. Along with this,
management of the company also invest more funds in their brand in order to make their
strong image at market place.
 More efficiency: In this companies put their efforts to improve standard of the quality and
also enhance their efficiency towards the products price as compare to its competitors.
Management hierarchy
Coca cola:
 Umbrella Brand: It is called as a family branding in which Diet Coke and Coca cola is
comes under the umbrella brand. It define their single name and logo in order to define
better image at market. It also include name of original firm also.
 Products: In this company offer various products such as Sprite, ThumsUp, Maaza and so
on. All are serve in target market by using specific as well as separate strategy of
branding in order to create more customers base (Esch and et. al., 2014).
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 Endorsed Sub Brands: In this company associate with celebrity to create brand image at
market place in order to enhance the brand image at market.
Pepsi Co:
 Umbrella Branding: Pepsi considered umbrella branding in this product line in which
Pepsi its main product that help in attaining success at market.
 Products: Pepsi offer various products segments such as Tropicans, Lay's Chips,
Mountain Dew soft drink and many more.
 Endorsed Brands: It define as well as create value that show the reliability of the brand
like Britney Spears endorsed Pepsi pink drink (Gratwohl and et. al., 2011).
Brand Equity: It determine the promises which relate with brand that aid in creating brand
value in market place.
Consumer Based Brand Equity (CBBE model)
It is one of the effective model which helps in managing brand equity of the company. It
is define by a marketing professor Kevin Lane Keller. He determine that brand define the
customers perception and feeling so that it is significant to set appropriate shape about the
customers experience and taste before starting the brand management company in market place.
With the help of this customers give positive response towards the brand and products.
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(Source: Duran 2018)
Applying CBBE Model
Step: 1 Brand Identity: It is one of the important aspect which define specific identity
which is totally differ from competitors. In this company tries to specify their unique brand in
front of customers by providing their quality services which is not introduce by any one.
Step: 2 Brand Meaning: It define clear meaning of the brand which helps in reducing
confusion in customers mind. It define brand goals and objectives in most effective manner.
Along with this, firm also tries to define their real meaning in front of customers which leads in
understanding their brand.
Step: 3 Brand Response: It define customers response towards the company product
which leads in increasing overall purchase of the company.
Step: 4 Brand Resonance: The main function of this step is to build image of the
products and services as compare to competitors which leads in increasing the customers loyalty
(Hanna and Rowley, 2011). With the help of this company attain positive and competitive image
at market place.
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Illustration 1: CBBE Model

TASK 3
P4 How brands are managed collaboratively and in partnership both at a domestic and global
level
It is one of the important aspect for the company to manager their organization brand at
both global and domestic level. With the help of this company easily attain their goals and
objectives in appropriate time period (Hollebeek, 2011). In this context, Coca-Cola and Pepsi
Co. both are used various and best techniques to improve their overall performance level at
market place and also develop their customers base.
Brand extensions:
To enhance brand equity, it is more important as well as popular strategy which is used
by the company in which they easily identify the new branded products to increase their
customers base which leads in attaining better results. The best example of brand extensions is
that the Coca-Cola sell their products by McDonald's in which both companies get positive
response of the customers. It is because that buyer are well know about the brand.
Along with this, both companies are leading brad at market place in which Coca-Cola
collaborated with McDonald's in order to enhance brand image and equity as well in front of
larger customers. In this aspect the Coca-Cola sell their coke to McDonald's and they service
with their burger service in front of customers. Both companies maintain their strong relationship
and offer their quality products as per customers requirement in order to get their satisfaction.
On the other hand, both branded companies use Ansoff Matrix to manage their brand
image at international and domestic level which leads in attaining positive results. Classification
of this matrix are as follows: Market penetration: It is one of the effective and safest phase as compare to another
three aspects. The main function of this process is to increase overall sale by offering
existing products in new market. In this Coca-Cola use this strategy in order to increase
overall sale of the company by offering quality services to their customers in significant
manner. Market development: This phase define new market place for existing products in order
to maintain their profitability in effective manner. In context of Coca-Cola, they has
introduce Coke Zero in 2005 which is more effective for the company (Hwang and
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Kandampully, 2012). In this they attain effective results which capture larger market
share. Diversification: It define new market to sell new products of the company. In this Coca-
Cola invested approx $4.1 billion to considered Glaceau. They also include healthy
drinks as well as water in which they face decline phase in their soft drinks sales in
market.
 Product development: It is also an effective prospectus which introduce new and
innovative products in existing markets. In which company easily meet their customers
needs and demand in most effective manner. In Coca-Cola context, they launch Cherry
Coke in 1985 which was first expansing in market place. In this company use effective
strategy to add Cherry flavoured syrup in this product line.
TASK 4
P5 Different types of techniques for measuring and managing brand value
In today's world companies face a lot of changes in marketing environment where it is necessary
for them to keep or maintain the interest of customers in their products for a long period of time.
For companies like Pepsi Co. and Coca-cola brand is taken or assumed as an important asset and
this can become a profitable factor for both of the companies. These enterprises needs to
calculate their brand value from time to time so that they can run business in an increasing
situational manner and this can also give competition to the companies which have same entity
goods or services.
There are some required reasons where companies has to measure the brand value:
 Financial report of the organisation
 Impairment
 For security purpose
 In process of purchasing price
 Intangible sales
Companies needs to find the reason and analyse it that why the valuation is being done (Jiang
and Iles, 2011). Valuing of specific brand is not a part of overall brand value when it comes on
comparing with other companies which deals in same brand of products or services in the market
and it can be expressed under:
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Orienting: Strategies of Coca-cola and Pepsi Co. are:-
Coca-cola Pepsi Co
 Coca cola whole and solely believes in
fun and happiness where they tries to
think global and act like local.
 Company tries to run one brand all
around the world with same marketing
approach.
 Pepsi tries to make there products are
light as they know it that customers
have different tastes so they try to make
there products very light which can be
used by any person like old age,
children etc.
 Catchy slogan of this company are :-
“Any whether is a Pepsi whether”
Separately from this Pepsi Co. aims to keep there products as light as they can as a refreshment
which can be easily seen in the advertisements and promotions (Kavaratzis, Warnaby and
Ashworth, 2014).
SWOT analysis of Coca-cola:
Strength: Coca-cola holds large market in refreshment drink category. They have high
profit margins as they have short response time in suppliers and manufacturing process.
Organisation is running its business in more than 200 countries and rapidly trying to increase
there business in other countries as well.
Weaknesses: Recently a quality check was done by government where they found some
harmful pesticides in the product which caused a huge loss in business and pushed down image
of brand of company in the global market.
Opportunities: They try to implement new techniques and technologies that cut downs
the wastage at the time of manufacturing. Differentiate the products and enter into snacks
industry to give competition to other companies.
Threats: Rapidly increasing competition in market all around the globe can be a threat as
people try to bring there products with some innovations which attracts the customer so here also
company needs to change or modify their products according to the competition in the market.
Organisation also needs to keep their eye on consumers demand as now they are thoroughly
moving towards healthy beverages.
Apart from this both the companies Pepsi Co. and Coca-cola uses different approaches
which helps them in doing business and these are follows:
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Financial approach: This is a kind of approach where enterprises focuses on replacing
of old products or modifying them which defines brand as a useful life (Li and Kambele, 2012).
It also refers to brand name passes to commodity life cycle. There are three type of financial
approaches:
 Approach based on market- This approach is based on solid facts and figures of present
market situations where companies targets the market values. Approach based on Income- Analysis of over all under this approach relies on the future
profit estimation which generates desirable benefit of the owner of the company.
Different approaches under this are Cash flow method and Estimation of earnings
method. Approach based on cost- Over here this approach analyses the records of past which
helps in cost developing with taking assumption of brand. Cost based formulation is
suitable for valuation of assets which can be replaced.
Customer based approach: Customer's are the creators of brand value of an enterprise. If
customers bound themselves or gets addicted to the product because of the quality of cause of
any reason then this situation determines the earning level in future.
Targeting and dividing- Pepsi divides the market into three stages:
 Customers with favourable opinion towards the Pepsi and brand and stays loyal to coke.
 Consumers with positive attitude to Coke brand and stays loyal to coke only.
 End users have positive cognition to both Coke and Pepsi, with faithfulness in both of
brands, but changes the purchases depending on the mood time to time in between these
two brands (Morgan, Pritchard and Pride, 2011).
Coca-cola divides its market in three categories:
 Demographically- Customers Gender, age, income and size of their family.
 Geographically- State wise and climate wise.
 Psycho graphically- Based on consumers social class and their lifestyle.
CONCLUSION
From the above mentioned report, it clearly shows that the brand management is widely
used by enterprises in today's competitive world. Now, every company tries to concentrate in
development of brand more effectively and in modern ways to attract consumers. To stay in
market or to keep the brand value running in the market Coca-cola uses different strategies. In
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developing a successful brand strategy there are some key elements that a company uses and
those are – digital marketing, search engine improvement and positive and healthy customer
relation. In addition of long term customer a healthy and positive public relation is necessary.
Along with this, to keep the brand name in the target market managers and leaders uses social
media channels to reach to the maximal number of purchasers. Managers also needs to look at
the management cycle for full possible returns with less risks. And in the last, there are some
methods which assists in measurement of brand equity and those are:- quantitative, qualitative
and comparative methods in addition to full competitors edge in a short time.
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REFERENCES
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Online
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Brand Management - Meaning and Important Concepts. 2017. [Online]. Available
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