Brand Architecture and its Impact

This assignment delves into the concept of brand architecture, examining various models like Branded House, House of Brands, and endorsed brands. It analyzes the implementation strategies employed by renowned companies like Starbucks and Nestle, highlighting the advantages and disadvantages of each approach. The assignment also discusses the Customer-Based Brand Equity (CBBE) model and its relevance to brand architecture.

Brand Management
corporate centric branding of
Starbucks

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
P1 Explain the importance of branding as a marketing tool and how they help to emerge
business practice. ........................................................................................................................1
P2 Analyse the key components for successful brand strategy for building and managing
brand equity.................................................................................................................................3
SECTION 2......................................................................................................................................6
P3 Analyse different strategies of portfolio management, brand hierarchy, brand equity
management................................................................................................................................6
P4 Evaluate the brands are collaboratively and in partnership both at a domestic and global
level.............................................................................................................................................9
P5 Evaluate the different types of techniques for measuring brand value using specific
organisation...............................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Brand management is the brand perception among the buyers in the market. The main
objective of brand management is to gain customer trust and faith by establishing an emotional
relationship with the customer. There are different methods through which company improves
the brand image of a product. Present report is based on brand management of Starbucks Coffee
shop. In this report, it will discuss on Starbucks brand image and its importance. Furthermore, it
will discuss about the brand equity and brand portfolio. Adding to that, it will discuss about their
different new techniques with the help of Starbucks Coffee shop manage their brand image in
long time. Brand image is very essential element to retain the potential customers. This increases
the company value in the long time. It is a coffee shop so that it is very important for the
company to maintain brand image in competitive market. Starbucks brand management is very
much stable and huge. Starbucks provides different flavours and different types of coffees such
as Espresso, cafe latte, leaf teas, Teavana tea, Frappuccino, and many other beverages. This
increases the market share in the coffee shop. Starbucks itself is very big brand. On the other
side, Starbucks should adopt the latest and new technologies to make their business expansion
across the world. Furthermore, second most popular brand in coffee shop is Nestle it is another
most popular brand of multinational Chocolate company in Switzerland. It provides different
coffee shop services along with some exciting offers to attract the customers.
SECTION 1
P1 Explain the importance of branding as a marketing tool and how they help to emerge business
practice.
Brand is considered as products of services of particular firm that makes it differed from
other firms. Unique designing, symbol make it a unique name in the market (DeFillippi and
Roser, 2014). It explains the product and services of related organisation. Brand is used in
marketing, advertising and in business to promote the product and services. Starbucks Coffee
shop is one of the popular brand in coffee industries. Its brand value increases their market and
profit revenue. Brand is the tool which differentiate the products with other companies. It helps
to measure the quality of services. In terms of customers, if they plan for a holiday and think
about their coffee shop they visit Starbucks because of their quality of services coffee shop
facilities. Branding of the product is very important to increase the sales (Guo, 2013). It is the
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tool of marketing management which increases the awareness about new product and services.
On the other side brand is popular by the prime services otherwise if quality and services is not
according to the customers. Brand will not get profitable. Starbucks Coffee shop furnish many
product services on the basis of needs and requirement of the guests. This increase the faith and
trust among guests. This happen to enhance the brand image. Adding to that, branding is
important to promote the new services in the market through which more customers get attracted
towards them.
Logo and brand both are the different aspects of the company. Logo defines the brand of
the company. Every customer recognize company brand from its logo. For that company should
design attractive brand logo to attract customer attraction.
Along with that, there is a term which is called Brand Equity which is a tool of brand
which describes a brand value. Value is determined on the basis of customer satisfaction. It is
also analysed by the customer experiences with the brand. Buyers prefer Starbucks services
because of their unique services and coffee shop facilities it makes brand equity higher in the
market. If organisation fails to deliver goods and services consistently, brand equity will get
affected negatively (Hays, Page and Buhalis, 2013). However, in coffee shop, Coffee shop
Starbucks got the first rank. In US, most of the visitors prefer Starbucks for their coffee shop.
Starbucks is the first choice of customers. This increases the performance level of brand
management. Positive brand equity helps organisation to grow more. It increases the overall
sales revenue as well. According the facts, Starbucks is nearly 100 years old and the most
profitable organisation. Also, Starbucks is the most mature company in the Beverage industry.
Starbucks itself is the owner of 4,041 Coffee shops which includes in 90 countries. This is a
result of positive brand equity. Starbucks Coffee shops got first rank in Coffee shop brand equity
in 2010. Its services and products are very different and unique which attracts large number of
customer. Brand equity helps company to invent more new services according to the current
needs and wants of the visitor. Starbucks provides coffee shop, transportation and food services
to their customers additional, they provide party services, business conferences in the coffee
shop etc. They also provide the best quality of services to attract the national and international
visitors (Huang and Sarigöllü, 2014). These all factors help to increase the brand equity by
which organisation achieve their business practices. The reason of the success is good
management work, skill-full employees, best services and Big Brand value.
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There are many key elements of a strong brand which helps to enhance the Starbucks
Brand image. It helps to deal with the future challenges adding to that, this help to manage the
work in the organisation. There are some key elements of a strong brand listed below:
 Brand Promise
 Brand Perception
 Target group of audience
 Brand values
 Brand Positioning
 Brand Image
These are the elements which help to maintain the brand value in the industry. It also
supports to make brand awareness across the worlds (Jugend and da Silva, 2014). On the other
side, it is essential for the organisation to maintain its position in the future times. Company has
to make their business plans and strategies for future, because of new challenges and high
competitions. Organisation has to understand the needs and requirements of the customers for
maintaining consumer based brand equity. This is called brand management over time. It means
strengthening brand equity by introducing new business plans and strategies, which gives brand
knowledge to the customers and get satisfied with the company. Starbucks needs to adopt new
marketing programs to make them aware about new product and services, In this way, they
maintain their brand equity in the market. It is important for the company to run their campaign
and advertisements regularly to grab the buyers' attraction. This helps in reducing the future
uncertainties that are being faced by the companies. In branding, there are many challenges faced
by the organisations, which affects brand image (Kavoura and Stavrianea, 2014). During making
brand image, Starbucks might have faced many of the challenges like stress of creating new
products and services, stress of maintaining the brand positioning, choosing market tools as
which tool is more benefited, maintaining the brand relevance, creating brand portfolio strategy
and so on. These are the challenges that gives high tension to the organisation, which also affects
brand image of Starbucks.
Managing brand overtime time, as per the company it is highly dynamic in nature.
Company should need to adopt new changes to sustain the time management and get better
results. There has to be constant changes in technologies, regulatory framework according to the
customer needs and wants. Companies has to maintain the balance of brand management. The
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best way to control brand management over time is to develop brand equity and marketing
programmes.
Brand knowledge measure the actual demanding of the company. Customer should have
the knowledge of its favourite brand, for that company needs to promote their product and
services into large extent to grab the customer attraction. The main role of branding is to
enhance the company market value and share value Which helps company in future expansion.
Branding process is the most essential element for the Starbucks and Nestle to attract customer
reach.
P2 Analyse the key components for successful brand strategy for building and managing brand
equity.
Brand equity plays a very important role to maintain the brand positioning in the market.
Brand equity explains the actual position of the organisation. It is an intangible asset of the
organisation. Brand equity of the company depends on many factors, it explains the importance
and value of the firm. Adding to that Brand Equity includes brand quality, awareness, brand
association and brand loyalty(Keller, 2017). Brand strategy is a plan that specify company
objectives, brand strategy is essential factor to maintain the goodwill in front of the customers.
Manager of the organisation should consider key components which helps to make brand
strategy. It helps to accomplish the objectives in effective manner. On the other side, Brand
equity is the result of a new creation and unique distinct brand image. To achieve the successful
brand image Starbucks needs to adopt some key components to accomplish the target, and
sustain their brand image in long time(Kent and et. al., 2018).
 Public Relation: Strong relationship with the customers may lead to enhance the
company customer satisfaction and reputation. Public relation plays a very important role
to exist in the market in long time. Starbucks needs to adopt healthy relationship with the
customers by providing quality of services and benefits. Establishing a business goal,
Company clearly defined their target audience and then make public relations strategy.
Furthermore, to attract customers organisation make marketing and promotional
strategies to make customer aware about the product and services. It helps to build brand
image and brand equity as well (Klingebiel and Rammer, 2014).
 Brand Positioning: it is the most key component of Brand strategies which helps to
enhance the brand image. In this key component Starbucks Need to shuffle brand
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positioning strategy. These components describe what your organisation does, whom they
target, and what are the unique values of the Starbucks. This makes brand position in the
market. This helps company to sustain in the long run. Starbucks Brand positioning is on
the top of the list in the coffee shop. Starbucks provides unique market strategies,
advertising and public relations, strategic partnership and brand promotions. On the other
side it has unique online websites which grab the attraction of customers. Brand
positioning attracts new visitors.
 Brand Promise: its is the another key component of brand strategy. It relates company to
the clients. Brand promise is the emotional attachment which attract clients towards the
organisation services (Lilleker, 2015). Brand Promise of the company is to satisfy their
customers by providing them the best quality of product and services. Starbucks Coffee
shop brand promise is to take care of customer needs and full fill their all requirements
with best services. On the other side Nestle which is a multinational diversified Beverage
organisation. These two brands main focus is on clients demands. These elements
increase the brand equity and helps to enhance the brand strategies to maintain the market
value. Brand promise identified on the basis of customer, employees and your key
partners, what they expect from you. Every Promise of the Starbucks and Nestle to be
sure that it justifies the organisation motive (Napoli and et. al., 2014).
 Brand difference: Brand Difference is the another key components which helps to build
organisation brand image. It explains the unique services which is different from other
organisation. Brand differentiators are the things that make your product and services
unique (Peppard and Ward, 2016 ). Brand differentiate helps customer to choose best
services. It is called unique selling propositions(USP). Starbucks needs to make new
product and plans through which they make their brand different from other
organisations. This component helps to make brand strategy which assist to enhance the
company profit revenue. Starbucks organisation make good and healthy relationship with
the clients on the other side Nestle gives new discounts offers and services to attract the
clients. These are the strategies which makes different from others. These unique quality
helps to enhance the brand value. Clients wants new quality of services during their
holidays, according to that Starbucks needs to measure those factors and then develop
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their strategic plans. Furthermore, standing out in the competitive market is not that easy
task. It needs proper research on customer needs and market perceptive to compete with
the competitors. To justify this sentence Starbucks provides many unique and quality of
services which makes them different. This USP helps to accomplish the brand strategy
(Talay, Townsend and Yeniyurt, 2015).
 Brand Personality: Brand personality is the effective tool, which develop negative or
positive perception in the customer minds, It depends on the services of the firm. In terms
of coffee shop Customers identify brand identity in terms of quality of services, company
website, offers, price, and their brand popularity. Starbucks and Nestle have high brand
personality in their customers mind, because of their quality of services coffee shop and
food facilities. To sustain its position, organisation needs to modify their brand strategy
to attract more new customers.
 Brand Story: It is the another key component of brand strategy which helps to make
competitive brand image in the market. Organisation story explains about their efforts
and initial planning to enhance the business growth. It also explains that for which
purpose company for. Like the story of Starbucks, it opened the first Coffee shop in US.
its main aimed to operate the best services and Coffee shop in Texas. As according to the
commitments, innovation, creativity, today Starbucks is one of the most popular brand in
the world. These brand story create positive image in the minds of customers. It attracts
customers towards the popular brand. It also increases the talented employees which
works to enhance the services of the organisations (Vigneron and Johnson, 2017).
These are some components which helps to build brand strategy and image to
enhance the quality of organisation. It also helps to take innovative and creative ideas to make
their brand more powerful. Adding to that Brand strategy is very essential for the Starbucks to
enhance customers attraction. This increases the brand equity and give positive results to the
company (Wiedinmyer, Yokelson and Gullett, 2014). There are some strategies which helps
company to make its brand more attractive.
Brand Reinforcement strategy: This brand reinforcement strategy focus is on
maintaining the brand equity. It helps company to make its customers more happy and satisfied.
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Brand Revitalisation Strategy: Brand revitalisation strategy is another effective strategy
when a brand has reached at maturity level and profit begins to down. This strategy defines that
company needs to adopt product expansion, business expansion and brand repositioning.
Overall Starbucks and Nestle both need to adopt new repositioning brand strategies to
retain their existing customers. Along with that company also needs to face many challenges
during developing a brand. There are some challenges are.
 Expensive
 Barriers to entry
 Winning Consumer Loyalty
 Brand Awareness
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Illustration 1: CBBE Pyramid
Source: CBBE Model.2017

SECTION 2
P3 Analyse different strategies of portfolio management, brand hierarchy, brand equity
management
Portfolio management strategies refers to the approaches, which helps to implement
effective portfolio management in the organisation. Its focus is on effective return at lowest
possible risk. Brand Portfolio management it contains the brand objectives, structure, roles and
interrelationship. The main purpose of brand portfolio management is to create synergy,
leverage, relevant, differentiated and innovative brands. This portfolio management helps
Starbucks to make new brand strategies, and attract more new potential customers. On the basis
of Beverage industry, Innovative and creative strategies is one of the challenging task. Brand
portfolio strategies helps to invent new attractive services by which customers get attract towards
the company services (Winit and et. al., 2014). There are some portfolio strategies for brand
which helps to make new attractive plans for Starbucks.
Portfolio Strategies: Portfolio strategies means in which company make their brand
management and invest huge amount on promotional activities to getting customer attraction.
Starbucks Portfolio strategy is to make quality of services infrastructure and high prime coffee
shop facilities. On the other side Nestle Brand portfolio strategy is to provide coffee shop
facilities on the basis of client needs. They mainly focus on customer services and their
comfortless.
Brand Architecture: It is the another strategy of brand is brand architecture. It is the structure
of brands within the organisation entity. That is different from each other.
Brand architecture model is the business strategy through which entity can easily market
its products. Different models of brand architecture are as following:
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Branded house
Most of the popular big organization use this model for brand strategy. In this products
of the firm are considered as primary brand rather than company itself. Nestle is follows house
of brand strategy, its master brand products are strong and sub [products get benefit of this.
Master or primary products give strength to its sub products. This strategy helps in cross selling
of all items and enhancing revenues of business unit.
House of Brand
It is another strategy in which sunset brands are being focused by firm. Primary products
do not get much attention but sub products are very popular in the market. Starbucks follows
branded house model. It has tendency to expand the business
 Passive Portfolio management strategy: Passive Portfolio means in which Manager of
the Starbucks selects portfolio based on customer. Passive portfolio plans is relies on the
fact that market is more competitive and challenging. It is not possible for the company to
beat the needs of customers at low cost investments. The passive management strategy of
portfolio involves the following styles mention below:
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Illustration 2: brand architecture model
Source: (Branded House or House of Brands?, 2016)

Efficient market theory: According to this theory Starbucks needs to evaluate market changes
which is required in the organisation.
Indexing: According to this theory, this theory helps to used for taking advantages of efficient
market theory. It helps to create perfect brand portfolio strategies.
 Active Portfolio management strategy: According to this strategy it is based on that
analysis helps to generate returns that beat the market challenges and helps to give high
brand image to the Starbucks (Zhou and Wang, 2014).
Top down approach: In this given approach, Manager of the Starbucks observe the market
environment and make new strategies to enhance the brand image of the organisation. It is the
top down approach which helps Starbucks to maintain its brand image.
Bottom up Approach: According to this approach, Market trends and requirement is ignored by
the company. In this approach company focus on its financial statements, On their product and
services or any other criteria. In this approach Manager focus on its internal environment and
make new effective strategies to make strong working environment.
On the basis of above explanation, it mentioned the Starbucks brand portfolio strategies. Now it
heads to move on their Brand Hierarchy, it means summarizing the brand strategy by showing
different brand elements across the firm Products. On the other side it explains the different more
product which is sold by the company. Brand hierarchy is very crucial element in the
organisation it shows different more products provided by the organisation(Kent and et. al.,
2018). Starbucks Coffee shop brand hierarchy is very large and attractive. Starbucks family is
very large and broad, it has big chain which includes several locations and coffee shops in across
the world, Starbucks provides their services at all over the world.
Starbucks is the five star quality of services Coffee shops to meet the needs of potential
customers. It provides Various expensive services to their customer. Like top most drinks with
high prime quality of ingredients.
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Starbucks
Applicable: Starbucks is the most popular brand in Beverage sector. It has always on first choice
of customers. With the help of strong brand image in the market they easily get introduce new
brands or products.
Products: Products of Starbucks are greatly influenced by main core brand which is coffee their
products are similar in nature.
Pros and Cons: A big advantage for the company when its master product is very much popular
in the market. It provides strength to the sub products. It helps to reduce the funds in extra
promotional activities and on the other side disadvantage is that it is not necessary that sub brand
is get popular as like core product.
Brand Hierarchy of Nestle
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Illustration 3: Starbucks Brand Hierarchy
Source: (Brand Builder. 2011)

It provides generally for those visitors who want to stay for long time, for travelling
business peoples (Klingebiel and Rammer, 2014). They require large tables and rooms, Wi-Fi,
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Illustration 4: Brand Hierarchy of Nestle
Source: (Brand Hierarchy.2016)

communal work spaces, monitors. This provides comfortable zone to the clients and full fill all
necessary requirement. So that they feel relaxed at the time when they visit Starbucks or Nestle.
This is the another brand of the Starbucks which main aim is “Make yourself at home”.
The main purpose of this brand is to make feel customer relax like it was in Home. This provides
prime services and quality of coffee beans in order to get customer satisfaction.
Starbucks Coffee shop have big chained of group which contains many groups and their quality
of services. This is the brand hierarchy of Starbucks Coffee shop. Starbucks Brand equity is very
higher and impressive. Starbucks itself is a big brand which provides n number of services
according to the choices of the customers. To maintain its reputation remain same it needs to
develop their business plans according to the customer needs(Zhu, and Chung, 2014).
On the basis of different brand hierarchy Starbucks may collaborate with the Nestle Coffee shop
to enhance their opportunities and growth. It helps organisation to expand their business globally
and domestically. Both the companies attract their own customers internationally and make
happy to domestic clients.
Ways of brand reinforced and revitalised
Brand reinforcement is all about maintaining the brand equity. It is the process to
aware the customers frequently, so that they know about the brand and their services. For that
Starbucks and Nestle both the organisation need to adopt good marketing strategies. Some times
due to having big challenges comp[any fails to adopt new technologies and trend. There is some
revitalization strategies which helps to both the organisation to maintain its position in the
market. These are the extension strategies for both the brands.
Distribution new changes: this is the strategy through which Starbucks and Nestle can
maintain its powerful position in the market. It needs new product and services according to the
current needs. Like Starbucks Provides several types of beverages with different tasty flavours
which helps to attract more new customers. This new change attract more new customers
towards the organisation.
Innovation: through partnership both Starbucks and Nestle Coffee shop make innovative
services to their visitors, by adopting new techniques, infrastructure or they may increase their
customer relationship.
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Segmentation: It is the another reinforced strategy through which both the brands make
new ideas of production is made. It gives new business expansion, and helps to attract national or
international customers.
360 Degree Communication: This is the most effective strategy through which
company enhance their brand equity. In this strategy both the companies make use of all
marketing tools together.
These strategies help both the brands to attract their customers together. The main benefit
of the collaboration is to collect high level of customers. Both the customers of Starbucks and
Nestle get together and give high number of profit.
P4 Evaluate the brands are collaboratively and in partnership both at a domestic and global level.
Partnership is the tool through which two or more than two companies expand their business.
Starbucks and Nestle two are the most popular brand in the world. If these two companies merge
or collaborate. It gives many other new services and benefits to their customers, and create
competitive environment in the coffee shop. Internally employees of both company get merged
and accomplish the organisation objective. There are many benefits through which both the
organisation can achieve the future expectations of the customers.
Ways to manage Collaboration of both the brand
Collaboration is the big process, it is difficult to manage for both the brands. Brands
Collaboration of both the firm gives higher level of customer attraction. Starbucks and Nestle
both the brands have large number of customers. After the collaboration clients of the both
brands get together, it gives huge amount of profit to Nestle and Starbucks. Customers of both
the brands are very prime customers who want quality of services amenities. For that they pay
high amount of money as well (Jugend and da Silva, 2014). On the other side they face many
problems and difficulties to manage the changes. They may face problem regarding resources,
clients, customers and communication. Companies may face the problem regarding resources
they need to arrange resources for domestic company as well as international. On the other side
they may face problem in communication level. They need to manage proper communication
regarding new strategies plans so they follow the same. Communication between the company is
very important to accomplish the target but due to lack of coordination this collaboration is not
manageable. On the other side employees, it is the main key element of the organisation to
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manage the employees' training and management. Adding to that employee gives many benefits
and advantages to give better customer satisfaction(Huang and Sarigöllü, 2014). After the merger
of both brands all employees are together work for the same motive, that is profit maximisation.
Employees of both the brand will get together and make new ideas and strategies to maintain the
brand image. Employees are the main essential part of the organisation it creates value for the
organisation as well. By the collaboration company gives new better services and training
facilities. Collaboration of both the company have to manage the collaboration process
effectively. After that Starbucks and Nestle needs to combined there business plans and policies,
it may give many issues and challenges during the collaboration of policies and plans at globally
and internationally.
Advantages: Advantages of collaboration is very much effective and useful to enhance the
company organisation profit and brand value. It also provides some additional benefits and
strategies of two organisation together.
Disadvantages: Disadvantage of these techniques is that due to having lots of pressure and
management changes it gives high burden and create confusion among employees and
management
P5 Evaluate the different types of techniques for measuring brand value using specific
organisation.
Brand equity is measure concern of the organisation. To improve the brand image
company needs to develop new plans and strategies, so that they can easily manage the
organisation properly (DeFillippi and Roser, 2014). There are many techniques by which
Starbucks can measure their brand value.
 Number of Customer: This is the first technique through which company measure the
brand image. Number of customers of the Starbucks show their brand image and brand
equity. Starbucks have huge number of customers, because of their quality of services.
This the tool by which company can easily measure their own performance of brand
image.
 Low Employee retrenchment: Every people want to work with well known brand
Starbucks and Nestle itself is a big brand. Number of talented employees get attract from
big brands. Talented employees helps to enhance the performance level of the
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organisation. This the technique through which company measure their brand that.
Employees prefer Starbucks and Nestle for their careers.
 Quality of services: this is the another technique through which company measure the
brand image (Klingebiel and Rammer, 2014). Brand image increases through quality of
services which helps to measure the brand equity Starbucks and Nestle are the two big
brand images, Because of their quality of services it attracts large customers towards the
company. It increases the brand image.
 Surveys: In order to know about your brand awareness its one of the most effective
method the firm can conduct a survey online, through website or by direct contacting
people and asking whether they are aware of the brand the firm can know about their
Brand image. If the number of people are higher than it means that company has achieved
its goal in making it one of the leading firm.
 Website traffic: It's another way through which brand measurement can be done for
instance the firm can track the people who has typed the URL in the gmail address. The
firm can browser bookmark or offline document so that they can know about no. of
people that are visiting the firm.
CONCLUSION
From the above explanation it was concludes that brand management is the most essential
key factors through which company maintain its brand image in the competitive market. It
concludes that brand is the important marketing tool. This increases the customer attraction
towards the company. In this present report discussed about the brand image of Starbucks Coffee
shop and Nestle. These two are most populated and knowing brands. They both need to
collaborate their business together to expand their business at global and domestic level. It also
concludes the different measurement techniques for both the brands. Outcomes from this report
is Brand equity gives success to the organisation, So that company mange their business plans
properly.
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