Importance of Branding and Successful Brand Strategy for Desklib

This report explains the importance of branding as a marketing tool and how it impacts the image of a company. It discusses the key components of a successful brand strategy, including portfolio management, brand hierarchy, and brand equity management. The report also explores how brands are managed collaboratively at domestic and global levels, as well as techniques for measuring and managing brand value. The case study focuses on TESCO, the largest retailer brand in the UK.

Brand Management

Table of Content
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Importance of branding and its emergence.............................................................................1
P2 Key components of successful brand strategy .......................................................................4
LO2..................................................................................................................................................6
P3 Analysis different strategies of portfolio management, brand hierarchy and brand
management.................................................................................................................................6
LO3..................................................................................................................................................8
PO 4 Brand managed collaboratively and in partnership at domestic and global level..............8
LO4................................................................................................................................................10
P5 Techniques for measuring and managing brand value.........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Branding can be understood as the marketing practise in which a company
creates a name, symbol or design for all products and services of company which is
easily identifiable by customers differentiating from other brands and companies. This
report explains the importance of branding as marketing tool and how it has an overall
impact on the image of company. A good strong brand image drive new business and
enhances the brand awareness among people. In this report TESCO has been taken as
the company which is the biggest retailer brand in UK, how branding has emerged as
business practise for the company. This report evaluates key components of successful
brand strategy for building the brand equity in company, along portfolio management,
brand hierarchies and brand equity management (Garg, Swami and Malhotra,2019).
This report also explains how brand are managed collaboratively in domestic and global
level and the different techniques used to leverage the brand. It also evaluates the
different techniques for measuring brand value in relation to develop a strong and
enduring brand image.
LO1
P1 Importance of branding and its emergence
Importance of branding as a crucial tool of company management can be
understood as it adds a set of personality traits to the company's product and positions
itself in the market and occupies a strong position in the minds of target customers.
TESCO brand represents the visions of the company and the strategies it has worked
on towards serving the customers, the committees by focusing on keeping the loyal and
committed colleagues satisfied with the brand performance (Hunt, 2019).
Branding increases the overall market value: The brand of company has its own
value as a separate asset which is termed as the brand equity. A strong brand equity
helps the company to retain loyalty and satisfaction of customers and attract the new
target customer segments. TESCO has a global recognition of strong brand image
which helps the company to increase the overall market value by focusing on expanding
the business on larger scale. It has emerged as a business practice as it enables the
company to enhance products and services of company.

Differentiates the product from other competitors : Branding helps the company to
differentiate its products from other competitors in the same industry as a strong brand
adds value and position itself as a distinct powerful image. Tesco aims to keep a strong
brand structure which enables the products of company to differentiate it from other
companies in industry, attracts new customers and enhances the satisfaction of
customers by good quality. It has emerged as a business structure as building a strong
brand value adds to trust of customers and has a powerful impact on leaving an
impression with the customers mind.
Branding creates trust : Branding has the power to create trust in customers for the
performance of company's products and services, as people are more likely to purchase
the brand of companies whose business value in the market share is polished and holds
a legitimate image (Kotabe and Helsen, 2020).Tesco has emerged branding as an
essential business practise as company works with mission to establish trust and
satisfaction for customers with the brand image and quality of products.
Branding builds financial value: A strong brand guarantees future business to the
company as it adds to the financial value in form of strong financial reports which
attracts large number of shareholders. Branding works as hard asset for companies.
Tesco has emerged branding as business practise because of the recognition, trust and
loyalty for products and services it inspires in the customers.
Branding builds operational excellence: A strong brand value enables the company
to improve operational excellence with low prices and good customer service to fit
comfortably with profitability margins. Tesco has emerged branding as an important
business practise as there is improved focus on distribution channels, high quality
products create customer satisfaction and generate future revenue in form of repeated
sales.
Branding prevents new competitors from entering into the market: A market
segment is always dominated by well-known brands of companies which have strong
brand value and large customer loyalty towards the products and services (Ledden,
Kalafatis and Protopapa,2019).It prevents new competitors from entering into the
market. Tesco has emerged branding as business practise as the retail market is highly
competitive having a strong brand value is of utmost important for the company. Tesco

works towards enhancing the brand value by working on various branding strategies to
keep the customers in retail market satisfied with the brand value.
Brand equity can be understood as the value of brand with a deeper evaluation
of what value it holds for customers as it holds the importance of high revenue return
and increase in the goodwill of company. It depends largely upon the customer
awareness and how they associate with the brand name and quality of product. It
serves as a parameter to evaluate the brand equity of a company and how it generates
the monitory value for company. The Akers brand equity model is controlled by five
components which explain the general picture of brand image for a company and how
they integrate with the brand value for TESCO. It explains the successful management
of brand image over time by companies and its importance in marketing the brand
value(Rowley and Hanna, 2019).
Brand loyalty: It explains to what level people are loyal to brand as it deciphers the
company products from other companies which has a strong in can influence on the
purchase choices. Tesco has created brand loyalty for the products and services among
customers with the wide range of products catering to large segments of customers.
Brand awareness: It explains the extent to which brand is known in public and how
much consumer awareness it has created in customers. Tesco has created large level
of brand awareness in public by marketing the brands on various online platforms.
Perceived quality: It explains the extent to which a brand is known to provide quality
products. Tesco has worked on delivering the quality products to its loyal customers by
enhancing the quality in services.
Brand associations: It explains the extent to which associations contribute to brand
differentiation, the extent to which it contributes to brand differentiation and creating a
positive impact on people mind while shopping(Conlon and Morris, 2019). Tesco has
large level associations which enables the company to reach large number of
customers by catering to various preferences.
Other prosperity assets: It explains the brands competitive edge a company gets by
having patents and intellectual property rights. Tesco focuses on accumulating large
number of proprietary assets, which adds to the strong brand value for company and it
contributes to the strong financial image of the performance levels in company.

P2 Key components of successful brand strategy
Brand strategy is formed by company to build strong brand image that helps in
increasing sales, profitability and market share of the company. Tesco company has
use various key elements to build successful brand strategy for building and managing
brand equity (Zinkan, 2018). Thus, company is able to effectively gain competitive
advantages in the market and expand its business worldwide. Various key element in
successful building of brand image of Tesco company are:
Target market: It refers to people in the society that are going to purchase product or
services of the company so company has to effectively identify needs of target
customers and develop such brand strategies that influences them to purchase
company products. Tesco has effectively identified needs of target customers, satisfied
in most effective manner by differentiating its product. Therefore, able to build strong
brand image of its product and services offered in the market and increase its market
share.
Transparent: It is the key to success as transparency in operation of business helps in
gaining customers satisfaction, maintaining loyalty of customers and adding new
prospective to the company (Steenkamp, 2017). Tesco company by providing clear and
transparent information about its various product and services to its customers is able to
gain customers trust and retain its customers in the company.
Immersive and personalized experience: Company by providing immersive and
personalised experience to its customers is able to gain maximum satisfaction of
consumers. By providing products and services as per individual needs able to cater
needs of target customers and thus help in building and maintaining brand equity.
Social media: Company can advertise its brand name by using social media such as
Instagram, Facebook and Snap-chat in order to create awareness among large number
of customers. Tesco company by posting short content about company image on its
website or page is able to attract younger generation and is able to build successful
brand image. By use of social media company is not only able to expand its business in
UK but helps in expansion in other countries as well.
Relationship with customers: Company should try to build strong and close
relationship to its customers to satisfy their need within time and to gain competitive

advantages in the market. For building strong relationship first company has to identify
its potential customers, then analysis social factor that will influences customers to buy
products. Tesco by offering its services online and taking quick response of customers
by using social sites is able to gain competitive advantages in the market.
Proprietary Brand Asset: Company proprietary asset is used to protect asset of the
company from competitors by using Patent, Trademarks. Thus, help in differentiating its
product and gaining competitive position in the market. Tesco by patent its technology
and using trademarks is able to gain customer trust and maintain loyalty of customers.
Thus, it helps in building and maintaining strong brand image in the market.
Differentiation: Company by continuous differentiating its product from other
competitors in the market is able to gain build strong brand image. Tesco in order to
differentiate its product from other competitors continuous analysis external
environmental factors and update to changes effectively. Thus, continuous innovation
and diversification has build and maintained strong brand image of the company thus
promote sales, profitability.
Better customers service: Company can effectively build strong brand image by
providing better customers care facilitates and addressing to their grievance quickly. It
also helps in effective marketing of products by mouth-to-mouth promotion as the
customers are more satisfied. Tesco focus is to provide quality services to its customers
thus it helps in retention and increasing loyalty among existing customers.
Brand reinforcement and Revitalization: Reinforcement is a process of making aware
of company products and service to its customers at regular interval as each product
has its life cycle. Tesco by continuous promoting its product through advertisement
publicity is bale to build and maintained strong brand image (Roncha and Montecchi,
2017). Whereas revitalization means product maturity stage has finished company has
to use innovative method to promote its products and services. Tesco company by
changing design and packaging of product is able to gain same demand as before.
Thus, it helps in increasing profitability and sales of company by adopting to various
changes as per requirements.

LO2
P3 Analysis different strategies of portfolio management, brand hierarchy and brand
management
Brand strategies is long termed plan of company to expand its market share and
profit margin by providing qualitative services to customers thereby building strong
brand image. Effectively brand strategies help Tesco company in expanding its
business in worldwide by offering quality product and services to the customers.
Portfolio Management strategies: This approach is used by company to generate the
highest possible returns at minimum or lower possible risk. Tesco company has used
this strategies model for effectively establishment of brand image in the market thus
helps in maximize of its sales and profitability (Fayvishenko, 2018). It is further divided
into Active portfolio and passive portfolio management strategy.
Active Portfolio Management strategy: This approach uses particular styles of
management to generate higher sales but involve high cost. It is implemented on the
advice of Tesco company manager thus help in taking advantages in case of market
inefficiencies.
Passive Portfolio management strategies: This approach is used when market is
efficient and cannot beat market returns regularly. This approach is used by Tesco as it
generate better returns at minimum cost and can be used for long term thus effectively
help in enhancement of brand image and profitability.
Tesco in order to maximum its brand equity adopt brand portfolios strategies model
thus able to build strong brand image and expand its market and gain competitive
advantages.
Hierarchy of Brand: It is useful strategies for building strong brand image of company
by showing nature and number of distinctive and common brand element across
company products. The level of brand hierarchy followed by Tesco company to build
strong brand image of the company in order to competitive advantages in the market.
Branded house: Company in order to increase sales of its product and market share
uses corporate brand name for all its products. Due to amortization, cost of marketing
and advertisement reduces thus help in creating brand awareness and knowledge
among the customers at minimum cost (Seymour, Flint and Chikurunhe, 2018). But at

the same time it includes reputation risk as negative of one product spoil entire brand
image of the company. It may also lead to diffusion if company deals in varieties of
product and services.
House of brands: It is more useful as different brand is created for different product or
individual brand for different products. Company help in increasing sell of individual
brand by using company brand image at the back of product or small logo.
Sub-branding: In it many products of the company have number of brand name it can
be two or more and it mostly occurs when a company pair parent brand with other
brand. This is done by company for effective communication and achievement of
common objectives of the company.
Tesco company uses House of Brands and sub-branding in its portfolios
management by assigning individual Brand named to different products of the company.
By using House of Brand model company is able to increase sell of individual brand at
the same time able to create awareness of its parent brand by using logo in the
packaging of the product. Sub branding is also used to stimulate sales of less
demanded product by paring it with main brand thus increasing sales and profitability of
the company.
Illustration 1: Branded house and Sub Brand
(Source: Walker R., 2018 )

Brand equity Management: It helps in providing value to company image, product and
services by using various elements such as brand awareness, loyalty and brand
association. There are two models for management of brand equity such as Keller and
Aaker's Brand Equity Model. Keller Brand Equity Model is used by Tesco company to
build strong brand image is as follows:
Keller Brand Equity Model: This model is based on customer's preference regarding
particular brand by whatever they have listened, felt and seen brand over time. Thus, it
is also known as Customers Based Brand Equity model and it includes four stages for
building strong brand image in the market (Chatzipanosand and Wu, 2018 ). Tesco
company by using Keller Brand Equity Model is able to effectively expand its market
share and satisfy the needs of customers in effective manner.
Brand identity: It means manner in which brand name of company is recognized by
consumers and the way it distinguishes with other competitors. It is most important
stage as it make aware of company brand image and its product to its customers. Tesco
company has effectively identified its brand name by differentiating in terms of colour,
design and use of logo in its product to differentiate from other competitors.
Brand Meaning: It is also a crucial part in building strong brand image as explains
meaning of brand and the way it satisfied social and phycological needs of the
customers (Fernández and Pinuer, 2016). Tesco company is effectively able to explains
it meaning that its focus it to provide quality products and services to its customers thus
raising their living standard.
Brand response: Company in order to build strong brand image has to cater response
form customers and thus making changes as per requirements. It can collect response
by consumer judgments such as quality and superiority and consumer feeling about
product such as excitement. Tesco company by taking continuous feedback for
customers by using social sites, its own webpage is able to quick response and better
customers care service also help company in gaining positive response.
Brand relationship: Tesco company has established strong relationship with its
customers by using social sites and by providing quality services tom its customers

(Huang, 2017). Thus, company is able to satisfy needs of existing customers thereby
maintaining loyalty and adding new customers to the company.
LO3
PO4 Brand managed collaboratively and in partnership at domestic and global level
Brand collaborate and form partnership with other companies in order to expand
its market share in global and domestic market. Tesco company by collaborating and
forming partnership with other companies in international market can effectively launch
its new product and earn large number of profit. Thus, by collaboration and partnership
both companies enjoy each other benefits, asset and effectively promote their product
and brand name in the markets.
Tesco partnership with Carrefour: Both company are benefited from alliance as they
are able to provide wide varieties of choice to its customers and improve their quality
thus help in gaining competitive position (Mühlbacher and et.al., 2016). Both company
by using each other strength can effectively avail opportunities in the market and
expand its market share. Both companies can easy build strong relationship with
supplier in global market. Strength of Tesco lies in its quality product and it is one of the
leading company in UK whereas Carrefour has 12300 stores in more than 30 countries.
Thus, by forming Tesco-Carrefour Alliance company is able to expand its business by
taking innovative move and enhancing customers satisfaction while boosting profits.
Partnership between two companies will create tough competition among local retailers
and thus helps in building strong brand image of the company.
Tesco partnership with Samsung: Tesco company is able to expand its market share
in South Korea by forming partnership with Samsung. As Samsung has well-
established, strong brand image in South Korea and was one of the finest exporter thus
it helps Tesco in effectively expansion of its business (Jeon 2017). Tesco by forming
partnership with Samsung able to known culture of new market and easily promote its
new product category of home and electronic in South Korea. Thus, partnership with
Samsung provide culture benefit to Tesco thus help in increasing sales and expansion
of business.
Joint venture between Tesco and Charoen Pokphand Group: Tesco company is
able to expand its business in Thailand by joint venture with Charoen Pokphand Group.

Company is known as Tesco lotus and operating its business since 1998 thus have
around 1092 stores in Thailand. Company is able to know about local people taste,
preference by forming partnership and gain strong and steady growth in Thailand. As
company offer dragon fruit and Guava its product range to existing customers thus
satisfying their needs effectively. So, partnership between both company help in
increasing and maintaining brand image in the market.
Different techniques used to leverage and extend brand
Brand extension is a strategy used in marketing of product by making use of
existing brand name to launch new product categories in the market. Thus, existing
Brand image help in effectively promotion of product and in enhancement of profitability.
Different techniques used by Tesco company to leverage and extend its brand image
are as follows:
Line Extension: Company use line extension to launch same product in different way
by changing in its variation, flavour, colours to attract existing and new prospect to
maker purchase. Tesco company has launch new product with usage of existing brand
name and by adding new varieties and changing packaging of existing product to attract
large number of customers.
Brand stretching or vertical extension: Company has an opportunity to cater needs
of premium segment market by extending its brand line by upscaling or downscaling
entire brand (Steenkamp, 2017). Tesco has launch new product by extending its brand
line downscaling thus offering product to premium segment. Thus, it helps in expansion
of market and profitability of company by stretching brand.
Product extension or brand extension: Company use it to launch new product
category in the market and to gain competitive advantages. Tesco company use its
brand name in order to promote sales and growth of new launch product. Thus, it
promotes and enhance sales of new product by use of existing brand image of the
company.
LO4
P5 Techniques for measuring and managing brand value
The various techniques to measure brand value and customers satisfaction of
the Tesco company are as follows:

Brand Awareness: Company can measure its brand value by collecting data related to
its awareness of products and services among customers (Roncha and Montecchi,
2017). Awareness means number of time customers think about products and services
or brand name of the company. Tesco can measure its Brand awareness among target
customers by conducting survey, web traffic, reviews of customers and volume of brand
and products.
Preference Metrics: It is importance for every company to identify preference of
customers as usually customer make purchase on the basis of their preferences. Tesco
company can effectively measure customers preference by using sales data and
surveys of target customers. It can also be measure by brand relevance which means
customers accept that your company provide differentiate and unique services to
customers. On the basis of accessibility company can find that brand is able to fulfil the
needs of customers in effective manner. It can also be measured by customer's
willingness to purchase company product.
Financial Metrics: There is effective tie between sales performance and brand equity
as increase in revenue means increase in company brand image (Fayvishenko, 2018).
Tesco can measure its brand equity by using financial matrix such as customer lifetime
value, rate of sustained growth and average transaction value.
Output metrics: It is essential for company to measure result of marketing effort in
order to ascertain brand value of the company. Output in relation to material and efforts
used in marketing and promotion of product should be measured by company. Tesco
company can measure its output by analysing sales on promoted products, loyalty
program and campaign of company.
Local marketer Perception metrics: Local customers as well as marketer experience
and view helps in effectively building and managing brand image of the company.
Company by continuous monitor on local marketer and customers is able to measure
brand image and thus improve or make changes as per requirements. Tesco can
measure Marketer preference by survey, campaign development rate and software
adoption rates.
Competitive Matrix: Competitors in the market directly affect company brand equity
trends by charging lower price and maintaining same quality of products (Ricca and

Robins, 2017). So, this metrics helps in identifying areas where company competitor
lacks such as poor customer experience. Tesco can use various techniques to measure
competitive matrix such as market share and customers acquisition rate.
CONCLUSION
From the above report it can be concluded that branding plays an important role
in marketing of product and services and expansion of business. Tesco has effectively
use various key components of successful brand strategy for building and managing
brand equity. Company has effectively use different strategies of portfolio management,
brand hierarchy and brand equity management for building strong brand image in the
market. Collaboration and partnership with other companies had helped Tesco in
expanding its market share in Domestic as well as in global market. Various techniques
are used by Tesco to promote its product in the market and gain competitive position.
By continuous measuring and managing brand value help company in expansion of its
business and increases its profit margin. Thus, it can be stated that branding plays an
important role in launch of new product, attracting existing and new prospective to
company thus enhance profitability.
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