Brand Management Techniques and Approaches

The provided project report delves into the world of brand management, focusing on the techniques and approaches utilized by Coca-Cola and Pepsi. The document examines various marketing methods, including free associations, brand awareness, comparative techniques, and research-based approaches. It also discusses the importance of identifying and managing factors that affect brand equity. By understanding these strategies, businesses can effectively manage their brands and reap associated benefits.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
P1 Importance of branding as a marketing tool and its emergence as a business practice.........1
P2 Key components of a successful brand strategy for building and managing brand equity....3
SECTION 2......................................................................................................................................5
P3 Various strategies of portfolio management, brand equity and brand hierarchy...................5
P4 Management of brands in partnership at global and domestic level......................................7
P5 Various techniques for measuring and managing brand value..............................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Process of maintaining, improving and upholding a brand so that is connected with
positive results is known as brand management. Various aspects such as customer satisfaction,
cost, competition and in store presentation involves in this (Spence and Hamzaoui Essoussi,
2010). This is known as a function of marketing department but the main aim of this remain on
the brand and to make it favourable to customers. One of the major benefit of brand
management is that it results in higher sales and not only of one product but of other products
also connected with that brand. Creating and maintaining good relations with customers is
known as one of the most important component of this concept. Coca-Cola, a multinational
beverage corporation is chosen in present study. The cited firm is one of the biggest
manufacturer and retailer of different type of non-alcoholic drinks. PepsiCo, a multinational
beverage corporation headquartered in New York is also taken under this report. Pepsi, Lipton,
mountain dew and tropicana are the most popular products of this firm.
In first section Coca-Cola is taken which contain information importance of branding for
enterprises as a tool of marketing is all detailed in this report. Key elements of an effective and
successful brand strategy for maintaining brand equity is all given in this. In second section
Coca-Cola and Pepsi are taken and many strategies of portfolio management, brand hierarchy
and brand equity management is also detailed in this. Along with this, different techniques for
management of brand in partnership and managing brand value is all described in this.
SECTION 1
P1 Importance of branding as a selling tool and its emergence as a business practice
Branding is known as the process under which firm do various efforts to create and
maintain a unique image in minds of target customers. Company achieve this with the help of
various promotional activities and use a mix of communication tools to communicate with
customers (Story and Hess, 2010). Main focus of organisation behind this is to create and
maintain a significant presence of a product or service in market. This help company in attracting
large number of customers and building a strong base of loyal consumers. Further, this aids
manager in identify and examine how a customer perceived about products and services of
company. This also helps customer in choosing the best product as per their needs and
requirements. In today's business environment, creating and maintaining a positive image of
brand is very necessary for every enterprise (Vigneron and Johnson, 2017). One of the most
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significant feature of branding is that it helps organisation to distinguish its goods from the
offering of its competitors. Effective branding support firm in building a strong base of
consumers and retaining them for a long time period. Importance of branding as a marketing tool
for companies is given below under the following points: Branding provide competitive advantage: To survive and complete all business
operations in an effective way, it is very necessary that a firm should have adequate
amount of funds and resources. It is very necessary that various elements which affect the
functioning of firm should be considered by manager at time of formulating business
strategies and plans (Zarantonello and Schmitt, 2010). Effective execution and
completion of business operations in time reflects strategic plan of company. Further, it
offer support in promote different key areas that ensure growth and success of
organisation. Brand offer stable assets: A brand is a factor which remains constant for long time
period and provide different advantages to company. This is main reason that branding is
known as very important for company. Products and services which company introduce
in market can fail but a brand cannot fail in market as this remains same for the years and
offers number of long term benefits to organisation. When this element aligns with
business strategy then it enhances the potency of decision making procedure. In context
of Coca-Cola, it is a very effective and popular brand around more than 120 years. Brand offer economic value: Tangible and intangible are the two factors in which value
of a company is divided. Brand is the element which comes under the intangible assets.
Coca-Cola as a brand has a value of $67 million that report approximately 54% over the
overall stock value of company. Effective brand management helps firm in attracting
large number of skilled and talented personnel. Further, brand supports firm in making
the customers aware about its products and cut the clutter from the market (Annie Jin,
2012). Along with this, it help it create and maintain good relations with customers which
help in achieve its set goals and objectives easily.
 Brands set expectations: Brand also indicate the promise that a business entity made to
its customers. This indicates that what the firm believes in and products or services
offered by it. Firm's ability to fulfil that promise decide the success and failure of that
brand. In case when firm fail to serve its customers as per the promise then it hamper the
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image of brand. Different goods of Coca-Cola such as no sugar and zero calorie support
in develop and maintain a large customer base. Delivery of featured and innovative
products enhance positive image of brand.
Large numbers of customers get confused with the two terms called product and brand.
There is a large differences between these two which can be understood by the following given
table:
Brand Product
Brand refer to specific name or term define its
unique nature in that sector.
Product is known as a mix of different features
(tangible and intangible) offer by firm to its
customers for satisfy fulfil their requirements.
This is intangible in nature and factors of it
help in affect perceptions of customers and
change their behaviour towards the brand.
These are tangible and these can be touched,
consumed and seen by people.
This is something which cannot be copied by
other firms.
This can be copied by other firms.
Overall, management of brand in a significant way is very important for organisations as
this not only attract large number of consumers but at the same time, offer various other long
term benefits.
P2 Key factors of brand strategy
Brand equity refers as the value of a brand which firm evaluate by examine the
perception and experiences of consumers. Good and positive experience of customers indicate
enhance brand's value and increase its equity (Balmer, Liao and Wang, 2010). For achieve this,
it is very essential for organisation to produce and serve featured products to target market.
Concept of innovation should be implement at workplace on continuous basis as this help in
retain customers for a long time period. In context of Coca-Cola, firm enjoys a strong and
positive brand image due to positive perception of its customers. Following are the major
benefits of brand equity:
 Strong and positive brand equity ensure expansion of business operations and also help in
extension of company's product line which increase profit of organisation.
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 Brand equity serve a competitive benefit to organisation and increase market share.
Strong brand equity help firm in create a strong customer base and help in gain their trust and
support (Baumgarth, 2010). Following are the steps which involve in develop and grow brand
equity: Step 1: Build awareness: This is the first step in which company formulate strategies and
implement the same to make the brand identifiable. Step 2: Communicate the meaning of brand: Under this step, different efforts are done
by management to make the customers inform about brand's meaning. How it execute
and various features of brand are communicate with target customers in this. Step 3: Collect customer's responses and opinions towards the brand: In this, manager
evaluate the opinions of individuals towards the brand, about is quality, credibility and
about v features. Overall manager examine that brand get success in satisfy the needs of
target market or not.
 Step 4: Create bond with customers: As the name indicate, different efforts are done by
management to make a relationship with customers to retain them for long time.
Major factors which helps an enterprise in form a brand equity is given under the
following points: Brand awareness: This is refer as one of the most significant element of a brand which
help firm in encourage various consumers towards its product. A brand can not achieve
success, if customers are not aware about it so it is very necessary for firm to make the
customers aware about existence of a brand in market (Bergkvist and Bech-Larsen,
2010). Coca-Cola is a well popular brand as this operate on a big scale. Different number
of product of good quality is one of the main reason that firm enjoys a positive image in
market. Further, this offer competitive advantage to enterprise. Perceived quality of products and services: This factor highlight about what the
customer feels about the goods and its quality. Today, various individuals purchase the
products of Coca-Cola because of its good quality. All this helps firm in develop and
keep a positive brand image and enhance loyalty of customers. Brand association: This aspect of brand indicate the design, symbols, signs and images
use by company to make the customers able to recognise its products easily. It is
necessary that brand should always associated with something positive (Braun,
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Kavaratzis and Zenker, 2013). This help in form a positive image. Further, brand
association indicate the features that comes in mind of customer when a brand is talked
about. Overall this is formed on various components such as price, quality and
promotional activities carry out by company. Brand loyalty: This refers to dedication and positive attitude of an individuals toward a
specific brand due to that he/she buy the same product again and again. Overall, when an
individual purchase a specific product from the same manufacturer again and again over
various other suppliers exist in marketplace is known as brand loyalty (Burmann and
König, 2011). As Coca-Cola offer number of drinks of good good quality to it customers
so due to this enterprise enjoys a strong and large customer base. As due to entry of large
new players in same industry firm also face various challenges. Major challenges face by
firm are given below: Low calorie cola performance: Government of every country formulate various and
regulations in order to encourage the production of healthy food and drinks in order to
maintain the safety of people. For this, government first check the quality of products and
after that give approval for its production. Due to this, Coca-Cola carry out the
production of drinks with zero sugar without calorie.
 Health and wellness trends: Coca-Cola provide different type of drinks to its consumers
and is operate on a global level. It is very significant for firm to use good quality raw
material for carry out production activity.
SECTION 2
Coca-Cola and Pepsi two most popular brands in beverage sector is taken under this section.
Coca-Cola
Coca-Cola is a American multinational beverage corporation manufacturer and retailer of
non-alcoholic beverages. Firm is popular for its product its main product which is Coca-Cola
invented in 1886.
Pepsi Co
This is an American multinational food, beverage and snack corporation. Firm has its
interests in manufacturing and marketing of food, beverages and other products.
P3 Different strategies of portfolio management
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Brand management is known as the procedure of create and keep a strong connection with
consumers. This enhance customers loyalty and offer different advantages to firm (Freling and
Forbes, 2013). One of the major benefit of brand management is that it help firm in make the
customers aware about its offerings which increase the number of its profits. Further, by add
more features of its products company can remain competitive in business environment.
Concept of brand equity is essential for enterprises as this help firm in get support of its
customers. Further, it help firm in capture a large market share.
Brand portfolio strategy: This is one of the most popular and effective strategy of
brand. This helps the organisation to manage two brands simultaneously in one single market.
Company offer large number of products by using their own name. For example, Coca-Cola
provides diversified drinks to its customers such as Fanta, Coca-Cola zero, Sprite and many
more. Firm use a alone and different scheme for all of its products which can be understood by
the following points: Driving revenues and profit growth: In this strategy, main objective is to bring new
features ad more and more features in its current product to attract more customers and
to earn large number of profits in comparison to their competitors (Gatti, Caruana and
Snehota, 2012). All this enhance loyalty of customers and add a positive note in brand
value.
 Investment in business activities: As the name indicates, in this strategy firm invest
more number of funds in its operations. Further, firm increase the number of its
promotional activities which help enterprise in serve more number of consumers.
Management and brand hierarchy of Coca-Cola and Pepsi are as follows:
Coca-Cola Pepsi Umbrella brand: In this strategy firm
sell two or more of its products under
one single brand. This strategy is use
by the enterprises that enjoys a positive
and strong brand equity in market such
as Coca-Cola. This strategy is very
effective and different from the strategy
 Umbrella branding: Pepsi Co use this
strategy to sell its different commodity
under a single brand name.
 Products: Most popular products of
Pepsi Co are mountain dew, Tropicana,
7Up, Mirinda and Lipton.
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of brand extension. Products: One of the main reason
behind larger market share of Coca-
Cola is that it offer different type of
products which attract large number of
customers form different areas. Maaza,
Sprite, Fanta, Coca-Cola are the most
popular drinks offer by the firm. As
company use a different strategy for
every product so this help organisation
to generate large number of profits.
Consumer based brand equity (CBBE model)
This is one of the more popular method use by large number of enterprise. Main
characteristic of this model is that it assist firm in manage the brand equity in right manner
(Iglesias, Singh and Batista-Foguet, 2011). This model by given by marketing professor Kevin
Lane Keller and defines that brand is important to define feeling and conceptualization of
customers. Further, this aid in give a form to company's offering and encourage single person to
buy products of enterprise.
Application of CBBE model Brand identity: This step consist identify features and quality of a specific brand which
helps customers in differentiate it form other products of market. Brand meaning: Firm do number of efforts under this to make large number of people
aware about the meaning of brand and remove confusion. It adds value and growth of
brand. Brand outcome: This aspect cover responses of consumers towards offering of
enterprise. Firm analyse customer's responses to increase the sale of its products.
 Brand resonance: This consist develop a positive and strong image in mind of
customers to attract them.
Brand Equity of Coca-Cola and Pepsi
Coca-Cola: Brand value of brand equity of Coca-Cola is projected $81.6 billion. This is four
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times more than the closest soft drink. Special taste of drink is one of the main reason behind
its success. It is not possible for individuals to duplicate the same taste at home. Duplication of
this drink is possible but produce the same is not possible. Major factors behind success of this
drink is its secret formula and long association. Due to some unhealthy ingredients firm face a
shift in its brand equity.
Pepsi: Pepsi Co always remain in front of the beverage sector. Pepsi is a 100 year old soft drink
and is loved by over 200 million individuals. Three products of Pepsi- Diet Pepsi, Pepsi and
Pepsi max generates more than one billion sales in a year.
P4 Management of brands in partnership at global and domestic level
To make brand popular for firm to make the customers aware about it. To achieve a effective
presence in market it is very necessary for firm to manufacture and offer products in market as
per the needs and requirements of customers.
Brand extensions: This technique is used by number of organisations to gain trust and
support of their customers and to build long term relation. Further, this helps customers in
choose the right products as per their needs and wants (Keller, Parameswaran and Jacob, 2011).
Mainly, this concept is use by firms for ass new and m,ore features in its brand so it can remain
competitive in business environment and can generate more number of profits as compare to its
competitors.
Brand leverage- It is a kind of plan of action which uses ability of present brand name
in order to help the entry of firm in to the new but related to the same product. It is helpful in
communicated information of valuable goods and services to customers regarding new
products.
Franchise extension: Coca Cola and Pepsi both are the famous brands and have nature of
well define things. They could provide their franchise to many individuals which facilitate and
enable them to gain profit margin as well as better assessment of working could be done. This
will enhance their ability to deal at diverse market area for better management of working.
Following are the some of the techniques through which business could gain growth at
market area as well as used to expand their working at domestic and market level. Such
consideration are helpful for them in deriving better suited growth and development at market
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world so that better profit could be generated:
BRAND REINFORCEMENT- It refers to activities as well as operations which are related
with getting those users which are using the specific brand. Its main focus on maintaining
effective brand equity with the help of keeping brand value. The way through which business
could reinforce their products and services is personal selling with new and exiting offers. This
will enable them in gain and analysing better market growth so that effective and suitable
outcome could be drawn which facilitate in managing and determine better market growth for
future aspects.
Brand revitalisation- It is a kind of marketing strategy which is employed when brand has
reached to the maturity stage and also profit stated to the decline stage. This strategy define at
such course when profit used to get start decline. Thus, management need to adopt and opt such
strategies where they could revitalisation their services. As per this, they could innovate their
products and services in better manner so that define profit could be estimated for long period
of course.
Such techniques enable them to remain competitive at market world so that their profit
could be estimated for long period of course. This will enable them in gain competitive edge
and advantage so that determine objectives could be accomplish. Hence, as a result better suited
growth could be underpin for long period of time.
Both Coca-Cola and Pepsi are well known brand on global level. Due to operate in
number of areas it is essential for both companies to design plans and formulate policies by
consider the tradition and culture of clients. Various products of Coca-Cola are there that are
very popular in abroad but are not well known in India. It is essential for firm to focus more on
develop strategies as per the needs and requirements of users living in specific area (Kapferer,
2017). For capture a larger and to generate more number of profits both firms require to
formulate better and effective schemes. Ansoff's matrix is a popular strategy applied by both
organisation in order to manage their brands on both global and domestic level. This matrix is
divided into four segments: Market development: In this strategy, firm do efforts to capture those areas that are not
covered yet. Firm carry out a research to identify and examine the needs of customers in
order to develop a new product or services to satisfy their needs. Effective examination
of needs of increase the chances of product success and growth. Coca-Cola launch a
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product called Coke Zero in 2005, concept of this product was similar to the Diet Coke.
This product provide the great taste of Coca-Cola with low calories and sugar. Diversification: This is another strategy, in this company identify the new features to
add in its current to make it more attractive so it can attract large number of customers.
For capture larger market share, firm focus to enhance the enhance the skills and
knowledge of workers (Kunerth and Mosley, 2011). When employees think creatively
then this help firm in serve its customers in new and better way. Overall this provide
various long term benefits to firm but at the same time this require huge amount of
funds. Coca-Cola spent 4 million on its health drink. After face a decline in sales of
carbonated drinks like Coca-Cola the firm involve in operation of manufacture less
sugar drinks. Market penetration: This is a process in which company identify how much sales has
been done by firm in a specific time period. Company can identify the same by carry out
comparison of its sales with overall sales. It provides the opportunity to accomplish
goals and increase the sale of its products. Further, firm can formulate strategies to offer
value to its customers as this add a positive note in image of brand. As Coca-Cola enjoys
a strong image in market, company is able to utilise the strategy of market penetration.
 Product development: In this strategy, firm do efforts to develop new products and offer
the same in its current market (M'zungu, Merrilees and Miller, 2010). Product extension
is comes under this. Main techniques of this are acquisitions of right prepare new
product with their permission, investment in activities of enquiry and improvement and
many more. Coca-cola launch a product called Cherry Coke in 1985. Company launch
new and flavoured products on timely basis in various ingredients such as lime, vanilla
and lemon.
Such are the major and impressive strategies of development. Pepsi and Coca-Cola both
use these plan of action to realize scope of industry. As both firm are operating on an global
level so various techniques are use by them to examine the market. It is essential for firms to
offer something different to their consumers to improve its market share and to remain
competitive.
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P5 Various techniques for measuring and managing brand value
Management of brand is not an easy task, firm do number of efforts to manager their brand and
its value in market. Further, organisation face number of issues and challenges during this and
overcome with those challenges in an effective way is very important to get the benefits of
brand management. Offer unique and featured products to customers on continuous basis is
very important for every business entity to maintain its market share and to retain its customers
for a long time period (McDowell, 2011). Pepsi and Coca-Cola both are well known and
popular brands due to this they enjoys a largest market share. Entry of new players in same
sector give rise to huge competition for both firms. For remain competitive, it is necessary for
company to evaluate brand value on regular basis because this help firm in identify about its
actual market perspective and also help in collect information about the actions of its rivals.
Main situation of measure value of a brand arise in following two cases:
 When company formulate its annual reports.
 When production manager carry the process which helps in determination of final price
Evaluation of different methods and tools use by Coca-Cola and Pepsi are as follows: Brand management techniques: It is very important for to standard the value of brand
and number of tool are there which can be use by company. Effective use of tools help
organisation in manage brand effectively (Qian, 2014). Both enterprises Coca-Cola and
Pepsi use various techniques for this and which can be understood by following points: Qualitative techniques: Under this, manager encourage and invite the feedback and
opinions of customers to ascertain the value of a brand. Major techniques which firm use
under this as free association, experimental methods and projective techniques. Quantitative techniques: Under this numerical terms and tools are use by firm to find
the value of brand in numerical value (Smith, Smith and Wang, 2010). Brand awareness
and image are the main techniques involve in this. Comparative techniques: In this technique, perception and responses of consumers
towards a specific brand is examined. This indicate all the benefits of a strong brand
awareness.
For Coca-Cola For Pepsi
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Main aim of Coca-Cola is to remain popular
and recognisable by large number of
customers. Various techniques of marketing
are use by firm to promote its products. Main
techniques use by firm are as follows:
Free associations: in this, firm examine the
brand associations running in mind of
customers at time of purchasing soft drinks.
Brand awareness: under this various efforts are
done by firm to build a positive image of brand
in customer's mind.
As number of rivals of Pepsi are there in
market so it is very important for firm to take
help of effective techniques to maintain its
market share. Major techniques used by Pepsi
are as follow:
Brand based comparative approach: This
approach is use by business entity to examine
customer's response towards a new offering of
same firm.
 Brand equity audit and tracking techniques: Brand audit helps firm in examine where
the brand is currently in market. Main steps include under this are as follows:
Market context: In this, Coca-Cola and Pepsi both brands do analysis to identify the
major factors that affect the brand equity.
Brand equity: A discussion of market share and brand sensitivity of both brand is take
place in this.
Brand equity description: Firm analyse for customers perceive the brand.
Competitive strategies: Communication tactics and strategies use by firm involve in
this.
Brand tracking: This consists the process of analyse the development of brands and
various factors such as attitudes, perception, awareness and presences of customers.
Approaches of valuing brands Research based approach: in this approach, enterprise carry out an analysis to evaluate
the brand performance of Coca-Cola and Pepsi in market. Financially driven approach: This approach is related with analyse the financial
performance of brands in market. This is further classified into following:
Cost based approach: In this approach, firm identify the value of brand by average all
the costs incur by company to bring the brand to its current state.
Comparable: Under this, enterprises identity the value of brand by examine the price of
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products offer by its rivals (Solomon, 2014).
From all these approaches of value brand, research and financially based approach is used by
Coca-Cola. Pepsi also use research based approach for value the brand.
CONCLUSION
From the given project report, it can be concluded that number of elements are there
which affect the process of brand management so all factors must be identify and examine by
firm. With this, firm can manage its brand in an effective manner and at the same time can get
various benefits of this.
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REFERENCES
Books and journals
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Online
Brand Management- Meaning and Important Concepts. 2017. [Online]. Available through:
<http://www.managementstudyguide.com/brand-management.htm>.
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