Luxury Brand Management

This assignment delves into the unique challenges and strategies involved in managing luxury brands. It analyzes various aspects like social media marketing's impact on brand loyalty, the role of user interactions in shaping brand awareness, and the importance of building a strong brand image that resonates with target audiences at both national and international levels. The assignment draws upon relevant academic literature to provide insights into effective luxury brand management.

BRAND-MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 State the importance of Branding as marketing tool.........................................................1
P2 Determine the key elements of successful brand strategy for managing brand equity.....3
TASK 2............................................................................................................................................5
P3 Evaluate different strategies related with portfolio management and brand equity..........5
TASK 3 ...........................................................................................................................................7
P4 Determine how brands are managed collectively and in partnership................................7
TASK 4 .........................................................................................................................................10
P5 Evaluate different techniques for measuring brand value...............................................10
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Branding refers to the process of creating and maintaining image of company's product in
the eyes of customer. Branding connects the company with its target audience in an effective
way. With the help of Branding, Company can increase its sales and revenues in an effective
manner (Annie Jin, 2012). Basically the term branding depicts the perception of target audience
regarding the company's product or services. This report is based on Coco-Cola which is world
largest provider of Soft drink. This report mainly states the importance of branding as marketing
tool and also differentiate among the product and brand. This report also talks about various
strategies used by brand-management in order to gain higher competitive advantage.
P1 State the importance of Branding as marketing tool
In simple words, Branding means establishing or creating an image of firm in the eye's of
consumer. It is mainly done via advertisement campaign, publicity, sponsorship etc. with a
rational theme. With the help of Branding, Company can differentiated themselves among their
competitors. According to American Marketing Association, brand can be described as a name,
logo, picture, design that creates an image of the company distinct from those its rivals. Branding
connects target audience with the business enterprise. It mainly represents the consumer
perception about the company. Coco-Cola has been serving their buyers for more than 132 years,
this makes them unique and differentiated from their competitors. The referred firm applies “One
Brand Strategy” to its business enterprise. Following are the importance of Branding as
marketing tool:
1. Branding encourages recognition: People often purchase products or services from the
entity who possess strong goodwill in the marketplace. Company's are require to make
their branding consistent which ultimately help the buyers to purchase more products and
services. Coco-Cola is satisfying their buyers from the past 132 years which makes them
familiar with their target audience.
2. Branding promotes competitive advantage: In the modern scenario, it becomes important
for a firm to hold strong position which makes them apart from competitors (Asmussen
and et. al., 2013). Coco-Cola is facing tough competition from its rival firm such as
Pepsi, Nestle. Branding gives them the advantage of higher competitiveness level.
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3. Brands provides stable asset: Sometimes, there are situations where new product fails,
technology becomes outdates but brand is the one thing that never becomes perish. If the
business organisation is having strong brand image, then they can easily pass through all
such hurdles (Braun and et. al., 2015). Coco-Cola is holding strong market share from
past 132 years which is too long as compared to its rivals who eventually exist from last
20-30 years.
4. Brands set expectation: In the present world, everything is based on expectation.
Restaurant promises to provide good food, Teacher promises to give education etc.
Increased expectation of buyers makes firm liable to produce goods or services according
to their needs and wants. For instance, Coco-Cola no calorie product makes clients
believes that this product is sugar and calorie free. Different expectation of consumers
makes Coco-Cola liable to manufacture product or services according to their choices.
5. Brand creates new customer: In 2014, Coco-Cola has launched its new range for the
customer who all are fitness freak. This has often increased their market share up-to 30%.
Coco-Cola majorly gets their business via referral. Customer often share their reviews
about the product with peers, family, friends, colleagues which ultimately stimulates
them to buy that particular product. And as a result Coco-Cola generates new buyers via
word-of-mouth method. For instance, a person who is fitness freak will definitely share
their experience about the product with their other fitness or gym friends which results in
building more clients for Coco-Cola .
People often get confused between two words one is brand and other is product. Both are
different but still buyers considers them the same. Described below depicts the difference
between brand and product:
Product Brand
 Product is made by Company.
 It can be copied by rivalry firms.
 Product becomes obsolete with the
passage of time.
 Product may be tangible or intangible.
 Brand is made by consumers.
 Brand is unique.
 Brands becomes timeless over time.
 Brand is mainly intangible.
Branding was first used by civilization of pre-historic times and they often start with
branding of farm animals (Kavaratzis and Zenker, 2013). With the passage of time, archaeologist
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invented different grounds of branding in art craft and antiquity. Further the use of Branding
mostly obtain by the people of 19th century which gives them the advantage of higher
competitiveness level from it rivals. In today's world the success of any company depends upon
its branding (Erdoğmuş and Cicek, 2012). With the help of branding, firm can connect with its
target audience in an effective manner. It further assist in maximizing the profitability of the
company and increase market share. Coco-Cola earns majority of its revenue by strong branding.
They follow their own unique branding strategy which distinct them from its competitors.
P2 Determine the key elements of successful brand strategy for managing brand equity
Brand Equity can be defined as a marketing term that depicts brand's value of the
company which is mainly determined by an experience and perception of target audience with
the brand itself. Business Enterprise develop brand equity for their services or products offered
to large number customer by making them superior in terms of reliability & quality, memorable,
easily identifiable among rivals etc. It is mainly emphasise on three main component which are
client perception, positive and negative effect and the value related to outcomes or results. It
normally takes place when buyers makes choices among the product or services in order to
satisfying their needs which keeps on changing with time frame. When consumer continuously
thinks of a brand, it creates positive brand equity and when client is highly dissatisfied with the
brand of product, it develops negative brand equity. The objective of company's is to generate
positive brand equity which helps in attaining their goals in a structure manner. Following are the
importance of positive brand equity:
 With strong brand image and equity, an entity can ask more price from customer for
particular product or services.
 It often increase the stock price of company.
 Brand equity helps in generating more revenues or profit for the firm.
Coco-Cola is recognized by almost every single person around the world. They have created its
unique image in the market place which gives them the advantage of higher competitiveness
level. They put strong efforts towards marketing their products which makes them distinct from
its rivals. According to the survey, it has been analysed that people often consume Coco-Cola on
frequent basis (Hutter and et. al., 2013). With its authenticity and self-belief, referred firm is
liable to capture great market share in the marketplace. Following are the elements of successful
brand that collectively used together in order to increase its profitability are as follows:
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1. Public Relation: It mainly defines the relationship of company with its target audience.
The first and the foremost step of building public relation is to develop company's goal,
define its potential buyers and develop performance metrics. Coco-Cola has used various
celebrities who assist in promoting their brand via advertisement such as Taylor Swift.
Recently the company has launched is “Coming Together Campaign” which is based on
the concept “all calories are countable”. This concept influence their audience to track the
intake of calories as compared to total calories burn (Kapferer, 2012). In-Fact the
company has invited people through different channels of communication such as direct
mail, announcement, leaflets etc.
2. Social Media: This platform generates the value for product or services among the eyes
of customer. It helps in attracting large number of person simultaneously. Coco-Cola has
used different social media platform such as facebook, instagram, YouTube via which
they are targeting to attract customer on vast level. Coco-Cola keeps on updating about
its new product on social networking sites. They even update about the review of general
public regarding their product. Also they uploads videos of Celebrities in which they are
drinking Coke and reviewing about that.
3. Digital Marketing: Digital Marketing help Coco-Cola to promote their public relation
and brand strategy. It mainly include content marketing which they make it downloadable
for its buyers. Pay per click are one of its way via which they are attracting customers on
vast level.
In this competitive world, it becomes important for a firm to satisfy the needs and demands of
their customer which is changing on frequent basis. Therefore, it becomes necessary for Coco-
Cola also to produce that product or services which highly in demand and fulfils the consumer
requirement in an efficient way. Coco-Cola has launched green coke for the fitness freak people.
They have made this product keeping in view the demand of drink which can be easily consume
by the person who are going to gym as they are conscious about their health and calories(Wilson,
2017).
Apart from this, Coco-Cola has also faced several challenges in the form of :
 Strong Competition level among rivals.
 False Expectation
 Dynamic needs and expectation of customer.
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 Lack of consistency
 Being reactive over proactive.
TASK 2
P3 Evaluate different strategies related with portfolio management and brand equity
Brand Management can be define as an art of developing and sustaining image of
company in the eyes of customer (Kelley and et. al., 2015). It mainly focuses on retaining
consumer for longer period. The objective of branding is to establish strong connection between
company and buyer. With the help of branding, company's can identify the perception of buyers
among their product.
Portfolio Management: This approach focuses on capturing higher return for the company in
terms of revenue and profits at minimal risk. Two types of strategies involved in this one is
active and the other is passive.
 Active Portfolio Management Strategy: This strategy is based on the fact that company
can yield higher market share with its particular style. Coco-Cola is following its own
brand strategy which gives them the advantage of higher competitiveness level. Even
Pepsi is also following the strategy of active portfolio management that enables them to
gain the benefit of higher productivity and sales.
 Passive Portfolio Management Strategy: This strategy focuses on effective decision
making by the investors. It does not include any forecasting of product or services. Coco-
Cola is mainly emphasize on marketing part as they consider marketing as most effective
medium via which they can establish and maintain good relationship with its target
audience. Pepsi focuses on promoting healthy working environment by taking the
contribution of their employees in decision making process and enabling them to feel
motivated and supportive that becomes the major reason for increased retention rate.
Following are the strategies used by Coco-Cola in order to gain capture higher market share and
profits are as follows:
1. Aims at driving more revenue and growth: Coco-Cola aims at maintaining balance
relationship with volume and pricing. They focuses on different choices of customers and
tries to fulfil it in an effective way. For instance, their new product range which includes
diet free, zero calorie, no sugar no calorie has increased their market share up-to 30%.
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Even Pepsi is offering product as per the requirement and demand of target customer. For
instance they are providing Lays in different flavours which usually depicts the culture of
any particular country.
2. Aims at investing in Branding: Initially Coco-Cola distributed free samples among
customer for developing image and making their product popular in the market and
among potential buyers (Sheehan and Jugenheimer, 2012). In fact they earn a good
portion of market share via word of mouth. They associate themselves with various
events which in return promotes their brand among public on vast level.
3. More efficiency: With the help of greater marketing platform, Coco-Cola can increased
their efficiency and productivity which help them in yielding higher market share which
further becomes the reason for its success and survival.
Management Hierarchy:
Coca cola:
 Umbrella Brand: This is also known as Family Branding. It mainly involves sale of two
or more product under one brand (Rosenbaum-Elliott, 2016). For example: Diet Coke and
Zero Sugar Coke falls under umbrella brand who have same logo, design for its
marketing. Apart from its taste, there is no difference between them.
 Products : Its product range mainly includes Maaza, Thums Up, Kinley, Nestea, Diet
Coke, Zero Sugar Coke, Coco-Cola with lemon and many more. They modify their
product range as per the clients demands.
 Endorsed Sub Brands: It means association of Celebrities with brand in order to take the
advantage of higher market share and revenues. Coco-Cola is using the face of Taylor
Swift in attracting more customer.
Pepsi Co:
 Umbrella Branding: Pepsi Co sells different product under their name. They focuses on
capturing large market share and higher profitability.
 Products: Its product line mainly includes Mountain Dew, Quaker Food, Mirinda,
Cheetos, Tropicana, 7UPs, Lipton Tea etc. They also make product as per customer
choices.
 Endorsed Brands: Pepsi Co has used the face of Britney Spears in promoting their brand
among customer on vast level.
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TASK 3
P4 Determine how brands are managed collectively and in partnership
The chosen brand in this project is Coco-Coal and Pepsi Co. Both the companies are
popular all over the world (Santos-Vijande and et. al., 2013). They are maintaining its business
operation on both international and national market. Described are the key elements which
enable both companies to establish and operate their operations on international level.
Approaches and strategies of brand extension:
Brand Extension: It means when a firm uses the same brand for the promotion of multiple of
products. Coco-Cola is fulfilling the demands and needs of customer for more than 132 years.
They mainly emphasize producing that product or services which effectively meet the consumer
requirement. On the other hand, Pepsi Co is serving their customer for more than 115 years
which makes the biggest competitor of Coco-Cola. Both the companies aims at producing that
product or services that satisfies the needs of their target customer.
Line Extension: In this, the organisation target new customer segment by measuring a new world
with the help of parent brand serve. With the help of this, market area of particular product
enhanced and thus bringing development and growth to the company. Coco-Cola can make
effective use of line extension.
Category Argumentation: In this, company increases the category of product range which gives
wider choice to customer. Marketer can make the use of parent brand as well so as to enter into
new product line in an effective manner. Coco-Cola is entering into the new market of selling or
offering low calorie products that seize the attention of fitness freak customers.
 Market Penetration: Under this company tries to maximise its market share either by
producing more products or modifying existing product. This can mainly be done via
various communication channel and promotion mix.
 Product Development: In this competitive world, where needs and demands of customer
is changing so rapidly, both companies are require to make product as per the changing
needs of customers. For instance, Coco-Cola has introduced diet coke for fitness freak
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people and whereas Pepsi Co has produced diet coke for the one who is conscious about
their health.
 Market Development: Both companies are require to capture the market share of more
countries. They are require to hit the rural areas which gives them the benefit to capture
both areas of rural and urban (Spear and Roper, 2013). Both Coco-Cola and Pepsi are
focusing on capturing the market of international and domestic market.
 Diversification: It involves how company manufacture the product as per the dynamic
changes which gives them the advantage to higher competitiveness level.
Illustration 1: Ansoff's Growth share matrix
(Source: Ansoff's Growth share matrix of Coca-Cola, 2017)
Pepsi Co and Starbucks Partnership: In the year 1994, in order to launch Frappuccino product,
Starbucks has entered into a partnership with Pepsi Co. This partnership comes out as a great
success for Starbuck's new venture. It has been figured out that Pepsi Co possess great
experience in extensive sales, product development and strong distribution channel in retail
industry. Both companies are good at some extent and both are trying to benefit each other with
their existing services. For instance, Starbucks offer PepsiCo a first foothold in the sector of
growing non-carbonated soft drink market, with its brand name and owns experience in
processing quality coffee.
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Starbucks has great knowledge on coffee whereas Pepsi Co possess effective capabilities for
bottled beverages and developing canned. Such dependency in product development generates a
notoriously vague and sensitive situation in exchange between companies. The result of their
50/50 joint venture was in the form of North America Coffee Partnership. Pepsi Co has come
into an agreement with National Basketball Association and has become its official food and
beverage partner. This partnership proves out as major success for Pepsi as it often result in
increasing their sales by 30%. Pepsi's co-product Mountain Dew has replaced Coco-Cola and
become the sponsor of Slam Dunk Contest. Meanwhile Coco-Cola has entered into new
agreement with Major League Soccer and they have become the global partner of FIFA World
Cup.
In addition to that both companies are performing their business operation well on global
level as both are operating in an average more than 150 countries which gives them high
competitive advantage over their rivals. In-fact for taking the advantage of high market share,
companies have collaborated with other firms of different countries as well.
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Brand Collaboration and Partnership: Coco-Cola is collaborated with Kith which gives them the
advantage of high market share and more profitability. Also the referred firm collaborated with
Normal Rockwell is making the part of pop culture. Both Coco-Cola and Pepsi have collaborated
with other companies so to attract more consumers.
TASK 4
P5 Evaluate different techniques for measuring brand value
Brand is important for the success of business enterprise as it help in maintaining
effective relationship between buyers and sellers (Vigneron and Johnson, 2017). Branding
attracts the large number of customer which help in capturing large market share. Referred firm
uses following process in order to manage the brand are as follows:
 Clarify brand value perspectives.
 Determine Brand goals.
 Understanding the buyer's perception.
 Evaluate different components of brand.
 Evolute perceived brand differentiation.
 Taking the help of both qualitative and quantitative measure.
Brand Awareness: It depicts how much the brand is popular among target audience or it defines
the extent to which potential buyers are familiar with the image and qualities of particular
product.
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Illustration 2: Pepsi Logo Evaluation
(Source: Pepsi Logo Evaluation, 2018)
Illustration 3: Coco-Cola logo evaluation
(Source: Coco-Cola logo evaluation, 2018 )
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Market share: Coco-Cola controls 42% of total carbonated soft drink market whereas Pepsi holds
30% market share for the same according to Beverage Digest.
Consumer Based Brand Equity: This model was popularised by Kevin Keller who suggests that
branding includes the perception of customers about particular brand (Percy and Pervan, 2015).
Company's are require to critically taken into consideration, the experience and perception of
customers.
 Step 1 Brand Identity: It differentiate the brand with their competitors. Brand helps
creating image of the company in the eyes of customer.
 Step 2 Brand Meaning: It means establishing good connection between buyers and
sellers. It creates values of product.
 Step 3 Brand Response: This shows the response of buyers about particular product. It
also emphasize on perception, thinking and experience of target audience.
 Step 4: Brand Resonance: It means building image that gives competitive advantage
against their rivals.
SWOT Analysis of Coco-Cola:
Strength
 Brand equity: Inter brand in 2011 and
awarded highest brand equity award
and having a vast global presence and
known for unique brand identity is one
of the costlier brands with highest
brand equity
 Company valuation: Coca cola is
valued around 79.2 billion dollars and
successful in achieving high profits and
cost effective.
Weakness
 Coca cola is one of the prominent brand
but still face huge competition with
Pepsi covers vast market share in this
sector.
 Lack in product diversification as
compare to Pepsi.
Opportunities
 Diversification in the health and food
sector will improve the offerings of
Threats
 Water is only threat to Coca cola
because of suspected use of pesticides
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Coca Cola to their costumers.
 Although Coca cola is successful is
making her presence in developed
countries but due to inclination towards
soft drinks it makes his presence in
developing country also.
or vast consumption of water.
For investigating out and maintaining company's brand, utilisation of resources is being done by
different techniques which are discussed below below:
Quantitative tools: It is very essential technique which is utilised for measuring brand value in
comparison to other companies. This is highly essential for organising up the business and
determine the actual needs and wants of customers.
Quantitative tools: With the help of this kind of tool, there are some questions which are being
asked or formulated by business manager detailing facilities, products, and other services.
Comparative tool: This tools is used to identify the user behaviour and reaction which is very
essential for maintaining brand and its image for long period of time. This in turn helps out in
attaining aims and objectives of the firm.
Brand Audit: It refers to the thorough or deep analysis of brand's current market position as
compared to its rivals so as to measure their effectiveness over them. It also assist in determining
the strength, weakness and opportunities for given brand. The main purpose of brand audit is to
understand the current position of brand in the market place. Talking about Pepsi and Coco-Cola
both are doing great at their own perspective and holds strong brand image in the eyes of
customer.
Comparison between Pepsi and Coco-Cola :
Pepsi Coco-Cola
 Pepsi keep on changing their price
frequently as per the current market
trend or scenario.
 Focused on creating brand image
 Coco-Cola mainly focuses on
advertising and promoting its product.
They rarely change their price.
 Its brand image is refreshing and
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among public that is sporty and Youth
centric.
 They keep on changing their logos
frequently.
 Pepsi is connected with innovative
youngster, adventurous persons.
friendly.
 They often change their slogans.
 Coco-Cola uplifts and enhance the
everyday moment of joy and happiness.
Brand valuation methods
 Income based brand valuation methods
This method provide relief from royalty because it uses discounted cash flow analysis at the time
provide licensed to third party for use.
It provide premium benefits through capitalisation of future profits through premium price
methods (Stroke, 2015).
It is calculated through excess earning methods under which estimated rate of return based on
current value of the assets employed so more profits is earned to attracts the investors.
Markets based brand valuations methods
Brand can be valued through multiple the brand profits by multiple derived from similar
transactions of profits to price paid based methods.
It is calculated through turnover multiples methods under which brand's turnover is multiplied to
derived similar transactions.
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Cost based brand valuations method:-
It is helpful in cost creation through amount invested.
It is helpful in building brand through investments with a similar market position and share.
Challenges faced by Coco-Cola:
 Awareness may reduce demand of coke
 Increase in competition
 Water scarcity and poor quality
Challenges faced by Pepsico:
 Change in non alcoholic beverages business environment
 Increasing in cost of energy
 Weather condition
CONCLUSION
As per the above report it can be concluded that branding plays an important role towards
the organizational success and growth. It mainly depicts the image of company in the eyes of
consumer. In order to attract pool of customer, company has uses different tools and techniques
which help in capturing large market share and earn profitability. Also the company focuses on
maintaining balance relationship between national and international level. Business Entity aims
at focusing building strong brand image which lasts great impression on its target audience.
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REFERENCES
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Erdoğmuş, İ. E. and Cicek, M., 2012. The impact of social media marketing on brand loyalty.
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