Brand Management

BRAND MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1 ................................................................................................................................................1
P 1 Importance of branding as a marketing tool..........................................................................1
P 2 key components of a successful brand strategy for building and managing brand equity...3
LO 2.................................................................................................................................................5
P 3 Strategies of portfolio management, brand hierarchy and brand equity management..........5
LO 3.................................................................................................................................................7
P 4 How brands are managed collaboratively and in partnership both at a domestic and global
level..............................................................................................................................................7
LO 4 ................................................................................................................................................8
P 5 different types of techniques for measuring and managing brand value..............................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Brand management is basically the most important function of the marketing which
utilizes techniques for increasing perceived value of product line as well as bend over
the time. In shorty, brand management is predominately analysis as well as planning of
how brand is being perceived within market. The brand management plays an important
role in building the loyal customer base and for promoting the products as well as
services on the large platform (Urde and Greyser, 2016).
Cadbury is the renowned multinational confectionery organization being
established in 1824 by John Cadbury and headquartered in United Kingdom. It occupies
second position in terms of the confectionery industry after Mars. It currently operates in
more than 45 countries and thus have its presence across the whole world. Cadbury
dairy milk is basically the brand of the milk chocolate which is being established in the
year 1905 and was manufactured by the well-known brand Cadbury. This was initially
introduced in UK in the year 1905 and have diversified its product line to a great extent.
The major aim of this report is to study the most renowned and highly known
brand of Cadbury which is Cadbury dairy milk and how the various tools and
approaches helps this brand to effectively build the customer base and brand equity.
This report gives a brief overview of importance of the branding as marketing
tool, essential components of brand strategy in managing successful brand, strategies
of portfolio management, brand equity and brand hierarchy, partnership of brands,
various techniques for measuring brand value (Asgari, Roshan and Kayed Abbasi,
2016).
LO 1
P 1 Importance of branding as a marketing tool
Branding is necessary for the company as it impacts the overall factors of business. It
helps to position and create a different image in the eyes of business. Also it will help to
increase the awareness of brand.
Branding gets Recognition
It helps brand such as dairy milk gain recognition in the market in order to
increase the sales and generate more revenue. Logo of the brand is the most important
factor to create an image in the minds of people. As logo is considered as the face of
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the brand. It will help the company specially when they have to change the image of the
brand and gain recognition. In order to spread awareness the brand must design their
logo in such a way which is easily remembered by the people by making the first
impression as best as possible. Some of the companies use the strategy of printed
promotional products (Rauschnabel et.al., 2016).
Branding increases value of business-
Branding is necessary as it helps dairy milk to get more customers for future.
Stronger the level of branding stronger it will leave the impression in the mind of people.
It will help to establish the brand in a better way and focus on increasing the value by
working on gaining the leverage over their competitors. This will give the brand the
benefit of more appeal in their products such as dairy milk (Hepola, Karjaluoto and
Hintikka, 2017).
Branding helps in generating new customers-
If the company has worked up on creating a good image of the brand then they
will have no trouble in getting more references. Dairy Milk is a strong brand which is the
reason why they have a positive impression in the eyes of their target audience.
Consumers of the brand buys the product because of the trust they have over the brand
and they believe that they can rely on them because they have been familiar with the
brand for a long period of time. Today the brand Dairy Milk is so strong that even the
word of mouth is enough to advertise the product (So et.al., 2018).
Improves pride and satisfaction among employees-
When employee is working for the brand which has a strong presence in the
market they will work with a sense of pride which will keep them motivated enough to
work well and put more efforts in their working so that company can achieve their goals
and objectives. Employees of Cadbury believes that they work for a brand which has
goodwill in the market and which makes them feel fulfilled and gives them a sense of
completing the work with enjoyment as it gives them satisfaction to work for the brand
and be a part of that team (Chapleo and Clark, 2016).
Creates Trust in the Market-
Strategies of branding and the way that the brand appears itself in the eyes of
their consumers so that they can build trust in the market and with their consumers.
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People do business with Dairy milk because they have portrayed their brand in a well
professional manner. Brands such as Dairy Milk is a proper brand which is the reason
behind the trust of people and this is the reason why investors are ready to invest
money in the market (Veloutsou and Guzman, 2017).
Branding supports Advertising-
Another component of branding is advertising and the strategies which are used
in advertising reflects the power and position of the brand in the market. Techniques of
advertising which are used to promote the products which is also termed as outstanding
branding helps the company such as Cadbury to appeal and position their brand with
effective tools so that they can achieve the goals of branding (Lohneiss and et.al.,
2017).
P 2 key components of a successful brand strategy for building and managing brand
equity
Marketing has evolved which has also changed the focus of companies and that is to
satisfy the consumers. More satisfied customers mean more profit. In order to generate
more profits companies such as Cadbury realized they need to take their level up and
move from just satisfying the consumers and build a relationship with them. Keller
Model of Brand Equity helps the company to move towards new ventures with a higher
approach (van der Westhuizen, 2018).
Level 1 Brand Identity (who are you?)
This stage states that how customers of Dairy Milk looks at themselves and
differentiate their brand from other brands. It is considered as the most important stage
as if this stage is not strongly formed or established it won't be able to support the rest
of the stages. Identity of the brand builds when the customers of the brand is aware of
the product and values of the brand. Only this way brands such as Dairy Milk can attract
the audience. Companies also conduct campaigns to promote the product and increase
the level of awareness (Penumaka et.al., 2017).
Level 2 Meaning if the Brand (what are you?)
When the company increases the awareness of brand and it reaches to
consumers then they will have a curiosity to know more about the details of the brand.
In case of Dairy milk it will be it will be the ingredients used in the product, quality of the
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product, reliability of the product, is it good for health and how is the customer service of
the brand, is the product that the brand offers is value for money. This aspect is divided
into two parts-
Brand Performance-
This aspect states that when a brand of the company does what they promised
and bring improvement in their performance over time then they will be able to gain trust
in the eyes of people (Schmidt and Redler, 2018).
Brand Imagery-
This aspect is concerned with the appearance of the brand such as does it
appears rugged or soft. For instance Dairy Milk appears as soft as it is given or eaten
out at the moment of celebration. This is because they have made their strategy of
marketing in such way (Piehler, Grace and Burmann, 2018).
Level 3 Brand Response (what are the feelings for the brand?)
This aspect states that if or not the product meets the hype or expectation of
consumers after buying it. If they appreciate the product they will spread a positive word
of mouth among their belongings or they may share it on social media. This in turn will
make the consumers advocate of the brand. If they are not satisfied with the purchase
of product then company may loose a loyal customer other then that they will also loose
the benefit of word of mouth (Veloutsou and Delgado-Ballester, 2018).
Level 4 Brand Resonance (that strong relationship)
When the company gains a customer who loves them that much that he or she
won't buy another product over their preference. For instance person who buys dairy
milk won't prefer any other chocolate over it. Marketers of the company works hard and
recognize the opportunity where they can capitalize their consumers in both positive
and negative manner. This model helps the marketers of the company to understand
the needs and wants of consumers before they even make a purchase as they divide
the model into four steps which guides them (Brexendorf and Keller, 2017).
Dairy Milk has high level of brand equity in market which means to maintain the
equity of the brand in the market. They have many options to do that such as offer value
in their offering. For instance Cadbury is known for dairy milk but they also offers them
the product such as Hot chocolate, Cadbury spread, Cadbury celebrations and all of
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them has gained value in the market. Apart from that to maintain it they also cope up
with the need of bringing continuous differentiation by offering range of different Dairy
Milks such as silk, crack n nut, oreo and red velvet. So that they can target different
range of consumers who prefers and offer them the products according to their buying
pattern.
LO 2
P 3 Strategies of portfolio management, brand hierarchy and brand equity management.
Passive Marketing-
This aspect reaches the customer through service by positioning in a
smart way. When marketing is done before the development of need without any kind of
special event before joining the customer. This aspects implement the strategy of
planning through a practical approach. It is anticipatory and thoughtful which helps them
to meet expected results (Osuna Ramírez, Veloutsou and Morgan-Thomas, 2019).
Active Marketing-
This helps the brand to collaborate with others and enter into a different network
with other brands in the market. This style of marketing is purposeful and requires a lot
of efforts. It is also concerned with meeting the clients and arranging sales by making
cold calls. This type of marketing requires employees who possess skills (Pappu and
Christodoulides, 2017).
Branded House-
This is considered as a architecture of brand which is common. Major brands
such as Cadbury use this style of model. The company has many brands performing
under their name but all of the sub brands are promoted through the name of the parent
company. For instance at the time of festive season people give someone a pack of
celebrations and at the time of birthdays or special occasions people give gifts of silk or
Oreo. All of the products performs under one parent company. They never try to
compete with the parent company and they do not have a right to maintain their
operations in an independent manner. There are many companies who follows this
approach of branding (Ofek and Schwalb, 2018).
Benefits-
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Efficient- one strategy of marketing can be used to cover almost every product of the
company (Johansen, 2018).
Ease- it helps to reduce the level of competition among their own brands and also
decreases the confusion among each other.
Evolution- When a brand has a strong presence in market such as Cadbury then it can
lead them to success for their upcoming products. There is a reason behind this
consumers believes in change which is brought by their preferred companies.
Losses-
Reputation- Perception of people is tied to products and services of the brand as it
works on the approach of take all or nothing.
Limitations- If the parent company is weak or not able to meet their goals and objectives
then they won't be able to guarantee success to the brands who are performing under
them.
Ambiguity- This aspect is concerned with the confusion of working of brand (Casado-
Molina et.al., 2019).
House of Brands-
This aspect is considered as exactly opposite of the former one. Focus of
branded house is on maintaining the brand which has a good reputation, which is single
and consistently perform their operations. The thing with house of brands is that all the
brands which comes under this aspect is not home to one single brand instead they are
home to many brands. They target different audience as they are not dependent on
them and make the product in a different way. This type of branding works for
companies which deals in consumer goods but the style of this brand limits to the
suitability of the nature they deal in. for instance Unilever is one of those brands which
comes under this aspect (Nguyen, Melewar and Hemsley-Brown, 2019).
Benefits-
Reach- This style of branding helps the company to define the audience which are
unique to them so that they can reach them in more numbers.
Safety Net- It states that company has the power to take more risk as they know they
have other brands which will cover the loss for them.
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Shield- In order to keep the reputation of the company secure individual brand can take
the heat of market.
Limitations-
Maintaining reputation of one brand is not easy which states that there are many
difficulties to maintain the operations of many brands (M'zungu, Merrilees and Miller,
2019).
Overwhelming- It is necessary to create and implicate the strategies of marketing with a
multiple approach but operating them incurs a lot of budget which is difficult for many
companies.
Isolation- Parent company has no power behind as they depend on other brands which
means they cannot depend on the reputation of individual brands.
Image- It also creates confusion among the parent company. For instance which brands
do the company represent (Lee, O’Cass and Sok, 2017).
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LO 3
P 4 How brands are managed collaboratively and in partnership both at a domestic and
global level
Line extension takes place when new range of products in the same category of
products is introduced which is also known as additional items. For instance new
flavours in chocolate, new form of packaging of chocolate, new ingredients or changes
in size. On the other hand brand extension takes place when a totally new product in a
new category is introduced (Kapferer et.al., 2017).
Strength of Cadbury-
Cadbury is considered as leader of market in dealing chocolates. The company
is known for their wide level of distribution and marketing. Company serves in more than
160 countries. Portfolio of the company is very strong as they have products such as
Bournvita, Dairy Milk, Oreo etc. Products which are offered by the company is of high
quality. Products which the company has a high level of brand loyalty in market. This is
the reason why Dairy Milk charges a high amount of prices for their product. They have
positioned their brand in a way which is used for giving gifts at the time of celebrations
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or festivals which has kept themselves different from their competitors. The promotion
strategies which are used by the company are considered as strongest in the industry of
confectionery items. This has helped them to gain excellent amount of recall for the
brand. Company has a very wide level of channel of distribution. Strategy which is used
by the company is breaking the bulk. They deliver their products in 200 countries which
includes more than 40 varieties of products (Du Preez, Bendixen and Abratt, 2017).
Weakness of Cadbury-
Company does not have many weaknesses but the one that they have leaves
out a whole big share in market. Company has not been able to capture the market in
rural areas as the prices of products are bit high for them which is not affordable by
them. Apart from that there have been some real incidents which has accused on the
quality of product and the stages of manufacturing. People have found out insects in the
chocolate which has affected the image of the brand in the market. This factor needs to
be rectified so that the company can gain back the trust and share in the market. The
chocolates they deliver was infected which left a impression that whole batch may be
affected. In order to do that company needs to keep cleanliness and more focus at the
stages of manufacturing and packaging so that they can improve this factor (Hegner,
Fenko and Teravest, 2017).
Cadbury has combined Oreo and Dairy Milk to introduce new Dairy milk so that they
can add something new to their portfolio and meet up with the current demand of people
(Chernev, 2018). Apart from this company has collaborated with cornetto to intoduce a
ice cream cone together. They have also tied up their hands with Mondelez so that they
can bring innovation in this segment together and stay ahead of the competition they
are facing in the market. All of the products that the company has launched in the
market has reached success and made the name in the market for the company. Both
Mondelez and Cadbury has come up with an innovation in the market that is they have
introduced a spready which is 30 per cent less in sugar. They have also come up with
two more new products that is Cadbury Dark Milk and red velvet. The daek milk
chocolate they have introduced comes out to be 40 per cent dark and 60 per cent
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chocolate. After the collaboration both the companies have been trying out new ways of
acquiring share in the market by bringing innovation on their products together (Piehler,
Schade and Burmann, 2017).
LO 4
P 5 different types of techniques for measuring and managing brand value
Brand Value-
Branding has turned into a corporate strategy. All the companies dealing in
different sectors has build their identity with this method. Branding is also termed as
marketing. Still it is believed that to build a brand a lot of money is invested which is far
more than what is invested in the marketing of the brand. The strategy of branding is
implemented by the senior level of management of Cadbury. Marketers of the company
has realized the power of brands as it has helped to grow because of the image in
market. Every brand has their own unique value. This is the reason why Cadbury
focuses on increasing the power and value of their brand so that they can increase the
profits and plan their goals on the long term basis by planning strategically and the
leadership of the company. Cadbury is a global brand which states that company is
brand oriented. Cadbury uses all the strategies so that they can add more strength to
the value of the brand. Apart from that marketing team of the company needs to focus
on other aspects such as packaging and design of the brand in order to influence the
consumers as company has to take decisions according to changing times (Calantone
and Nguyen, 2018).
Brand Awareness-
It refers to the ability of people to remember a brand. Awareness of brand is also
related to behaviour of consumers and management of advertising with the
development of using different strategies. The ability of the consumer to remember a
brand is based on purchasing the product of the company. In order to get repeated
purchase companies need to increase the level of awareness. The level of awareness is
determined by the category of the same products. For instance Dairy Milk is a product
which has many categories such as silk, red velvet, Oreo etc. Awareness of a brand
states that consumer must be able to relate with the features of the brand and
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differentiate them with others. There are different types of brand awareness which are
known as recall and recognition of brand (Kasemsap, 2018). It states that different types
of awareness have different functions and works in different manner. Awareness of
brand is considered as an indicator of performance on the basis of competition
(Burmann et.al., 2017).
Market Share-
Share of Cadbury in UK is 34.1 per cent in the segment of chocolate market
which makes them the largest player. Market share helps to determine the value of the
company or its volume. Value share of market equates that share of the company out of
the total no of sales where as volume helps to derive actual no of products sold in
market by the company. Value share is high as compared to share of volume. Cadbury
has high share of market which states that they sold their products in huge amounts.
Share of market is calculated on the total of 100 per cent (Atwal and Williams, 2017).
Consumer Attitude-
Attitudes of consumer includes three elements that is cognitive, affective and
information on the basis of past and future intentions. Attitude states feelings, beliefs
and behaviour towards a product. The major thing that affects the company is attitude of
consumers changes with time or trends as they buy those products which is best for
them according to time. For instance people who are old or who are suffering from
diabetes won't prefer Cadbury. Companies such as Cadbury need to work on changing
on regular basis as they deal in confectionery items which requires change to survive in
market. This is the reason why Cadbury has positioned themselves in a way which
connects to the emotional state of humans (Arvidsson and Giordano, 2018).
Purchase Intent-
This aspect is concerned with the will of people into buying a product or service.
In order to get repeated purchases from consumers company evaluate and predict the
outcomes of future according to their past stored data and behaviour of people. This
allows the company to update their product on the basis of current demands and trend
of market. In order to get repeated sales Cadbury focuses on this aspect so that they
can acquire more share in market by satisfying the needs and wants of people
(Abrahams, 2016).
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CONCLUSION
It has been summarized that branding plays an important role in helping the
organization to build the effective customer base and for taking their brand message to
wider audience. Branding impacts the overall functioning of organization and thus helps
them to create value through increasing the brand recognition. Besides this, it also
helps the organizations to attain competitive advantage and establish the position in
market. There are various key components which assist organizations in managing their
brand equity like digital marketing, social media. These tools mainly helps the
organizations to increase brand equity and hence make people aware of its presence.
The portfolio management, brand equity and brand hierarchy plays an important role
within organization and thus helps to build the brand effectively. These three aspects
are the one which organizations considers while taking its brand to the wider audience.
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