Marks and Spencer Brand Management - Assignment

Brand Management

INTRODUCTION
Brand management is defined as function of marketing in which various techniques are
used to increase perceived value of brand. Brand management is very effective and helpful for
enabling prices of products to rise and develop customers and clients. It is important for all
brands to develop effective strategies for increasing brand equity and brand value. This helps in
knowing understanding brand, overall target market and vision of company (Arai, Ko, and Ross,
2014). Brands have great influence on customer engagement and competition in market. A
strong brand present in marketplace differs product of company from it's competitors and
develops brand affinity. The company considered in this report is Marks and Spencer. This is a
British retailer located in Westminster, London. This company was started by Michael marks and
Thomas Spencer in the year 1884. The following report is on a case of M&S where company had
to close 100 of it's stores. There is discussion on maintaining brand value and brand equity. Also,
there is explanation on different types of strategies of brand hierarchy, portfolio management
and brand equity management. Brand leverage is explained in context of M&S. There is
discussion on techniques used for managing and measuring Brand value, awareness of Brand
Consumer attitudes & Purchasing intent.
TASK 1
Explain the importance of branding for an organisation
Branding is defined as practise of marketing in which an organisation creates a symbol,
name and design which belongs to company. This is helpful in identification of product ,
separating it from other services and products. Branding is important as it is a long term
impression on customers and allows them to know about what they can expect from the
company. Companies can easily distinguish themselves from competitors as brand is a
representation of company as a business. Branding is essential for business and branding can
totally change the way people perceive product or service. It takes years for a brand to establish
but when it is finally done, there is need of maintaining brand through regular innovations and
creativity. There are notable brands which have established themselves as leaders have to work
hard everyday for maintaining value and reputation of their brand. This also increases brand
awareness. Some of the factors which tells importance of branding in context of Marks and
Spencer are mentioned below -

Branding gets recognition – Main reason of branding to be important is how can a
company get recognition and it becomes known for their consumers. Logo of company is
important thing as it is regarded as face of company. The design of logo of Marks and Spencer is
powerful and at same time is memorable. This is making a good impression on customers at first
glance.
Branding increases business value - Branding is very important as it helps in generating
future business. Marks and Spencer is a well established brand and hence it can increase overall
value of business by giving leverage to company in the industry. This is a good opportunity for
investment as it has been established in marketplace effectively.
Branding generates new customers – A strong branding means that there is positive
impression of company in front of customers. This reflects that company wants to do business
with you because of dependability and familiarity (Buil, De Chernatony, and Martinez, 2013).
Marks and Spencer is a well established brand and hence word of mouth can be the most
effective technique for adverting.
Improves employee pride and satisfaction – If an individual is working in a reputed firm
then this can be a reason for increasing the satisfaction level of employees. Marks and Spencer is
a reputed company and it makes employees feel more enjoyable and happy in working within
company.
Creates Trust within marketplace – Marks and Spencer is using a professional
appearance and well strategised branding and this helps it in building trusts with consumers,
customers and potential clients. Individuals do business with companies which have a polished
and professional portrayal. Marks and Spencer is putting efforts to perform well and becoming
expert in industry. This makes customers to trust the company and buy it's services and
products.
How do organisations develop brand equity
Brand equity is defined as value premium which is generated by an organisation from a
product in a recognisable name when compared to generic products. Organisations can create a
equity for brands and its products and services by making them remember and high reliability
and quality. Mass campaigns of marketing helps Marks and Spencer developing brand equity.
The following steps are followed by Marks and Spencer to build strong brand equity -

Introduce a quality product into marketplace – It is essential for companies to deliver
product or service which leads to positive reaction from the clients and consumers. This is done
by Marks and Spencer by delivering, labelling and packaging and values offers to customers.
Monitoring Trends and Competitors - As Marks and Spencer is a big brand and so it has
the capacity to adapt new changes taking place in marketplace for staying relevant. The
marketers of this company are monitoring new trends and market conditions. The marketing
department of M&S conducts market research for analysing new trends and choices within
customers.
Build a consistent brand image – This is important for reinforcing the brand by
providing a positive experience to customers. Marks and Spencer is putting efforts for creating a
good image in front of customers. There are various campaigns and modelling shows presented
by M&S for providing good mindset among customers.
Consistency of Brand messaging – It is important for every company to create brand
messaging (Chauhan, and Pillai, 2013). This ensures that it is easy to remind customers about
qualities and characteristics required by customers and clients.
Capture customer feedback – Customer feedback is most important thing while doing
business. This helps in knowing about perception of products and service towards the company.
Any changes or new trends added to products offered by M&S must be so good that all
customers provide a positive feedback.
Provide suggestions of how M&S brand can be extended, reinforced and revitalised
Brand extension is defined as use of established brand name in development new product
. The new category to which brand can be extended can be related & unrelated to the present
products offered by this company. Marks and Spencer is dealing with providing quality and great
value food, clothing and housewares to thousands of people around the world. This company
provides financial services and insurance to people and it also deals in providing energy. There
are various other fields in which this company can expand it's business. A brand extension
strategy used by Marks and Spencer includes using the existing brand reputation for promoting a
new product or service. It is recommended for Marks and Spencer to work more on it's fashion
clothing. They can update the styles in clothes they are offering. M&S can use product extension
and according to this a new product can be introduced in market. Brand reinforcement is defined

as reassuring the current beliefs and attitude towards a brand. M&S can do this by knowing it's
customers more and providing products on basis of actual needs & demands. Brand revitalisation
is defined as the strategy adopted by companies when product reaches at maturity stage of
product life cycle. When new products are introduced by M&S then continuous development is
done to ensure that customers are satisfied.
TASK 2
Analyse different strategies of portfolio management, brand hierarchy and brand equity
management
Portfolio Management: strategies of Portfolio management basically refers to
approaches which companies apply to efficiently manage portfolio to generate higher returns
with minimum risks. There are two common approaches to it passive portfolio management and
Active portfolio management.
Active portfolio management strategy: This strategy that one style is necessary to generate
higher returns in market (Da Silveira, Lages, and Simões, 2013). There are higher cost and
advantage of inefficiencies of market are taken in this approach. Managers and analysts evaluate
market and then this approach is applied.
Top down approach: In this approach managers makes efforts to observe whole market,
industries, all sectors and according to that they perform and make strategies. Selection of sectors
are done in this approach and then specific stocks selected by manager. On basis of these
selected stocks companies perform.
Bottom up: In this overall market conditions and future trends of market are not taken
into consideration instead evaluations are done on basis strength of company's product, financial
statements of company and other criteria. This approach is based on view that companies having
strong base perform well no matter what are prevailing economic situation in country.
Passive portfolio strategy: This strategy relies on a fact where markets are very efficient in
present scenario. It is very difficult to beat market and generate returns can be done only if there
are investments on low cost in market for a long term basis. There are following types of
approaches of portfolio management:

Efficient market theory: This theory based on fact that information affects market and is
processed by various investors of company. This information is very important from market
point of view as it helps in analysing market prices.
Indexing: In this funds are mostly used for extracting benefits efficient market theory and a
portfolio is created that helps in creating a index. These funds can provide various benefits as
they have lower transaction cost.
Aggressive Portfolio: In this portfolio investments are done in those stocks which can provide
adequate returns with higher risks. This forms collection of stocks of those companies which are
having high growth and are expected to increase profits in future.
Conservative portfolio: This basically deals in collection of those stocks which have been part of
portfolio after proper observation of returns of market and dividend history.
In context of Marks and Spencer they use Passive portfolio management theory which is
based on present context of market. They believe that market is at growth phase and they need to
generate higher returns to achieve growth.
Brand hierarchy: It means summarizing overall strategy of branding which is used to
display distinctive elements of a brand across different products of firm and reveal explicit
ordering of different elements of a brand. After establishing branding relationships between
different products being sold buy a brand (Dessart, Veloutsou, and Morgan-Thomas, 2015).
Brand hierarchy is based on that a product can be branded in many different ways which depends
upon existing and new elements of a brand. Also, it can be inferred that many elements together
form a brand. A hierarchy is constructed to show how various products are combined with other
products because of some common elements. Hierarchy includes corporate brand, Individual
brand, Range brand and modifier. Individual brand refers to a brand that is being restricted to one
product, though it is sometimes used for other products which fall in that category. Modifier
refers to a specific or a particular type of product.
At higher level of hierarchy of brand it involves mostly one brand that is corporate. This
is mostly represented on package of product and can be easily identified. It is also a known fact
that Marks and Spencer have successfully established a brand image in mind of its customer's
such that people buy a product based on brand name of Marks and Spencer. This denotes that
this is first priority of customers as they focus on brand name and they have a tendency that

M&S products are very high in quality. Each level of hierarchy is very important for maintaining
brand image in market.
Brand Equity Management: It basically refers to strength of brand which decides it
worth. It means impact of knowledge related to brand on consumers, Brand equity is there when
consumer is able to distinguish its product as compared to other brands dealing in same category
of products. This concept is based on when a consumer is aware of brand and has some positive
image of brand in their memory. Various parameters are decided of a brand based on its brand
equity.
In Marks and Spencer, is a known brand for its apparels. They are successfully able to
fulfil needs of both upper and middle class of society. They have been successful in establishing
a brand equity as its consumer always perceive its value to be greater than what they are okaying
for it. Their products have been famous among its customers because of best quality which they
offer and price ranges between medium and high. They have always focussed on a adopting a
competitive pricing policy. Which means that they provide very strong competition to other
competitors in market. Apart from being very competitive they also have a dynamic pricing
policy where they provide lot of discounts during off season, attractive offers in festive times and
special occasions. This helps company in two ways as they are able to create large sales and at
same time they are able to force their customers to switch to their brand in comparison with their
competitors (Dinnie, 2015). All these factors have helped Marks and Spencer in successfully
manage their brand equity.
TASK 3
Explain the meaning of brand leverage
British retails have always supported the brands which have always given exquisite and
exceptional lining of clothes and other departments such as marks and Spencer. Its an well
known brand which was developed and created in the early 1800. since a hundred years it has
changed people perspective of dressing and changed the mode of dressing in every era. This
company trades in country with more than 300 outlets. It has realised the need of changing
mindset of society and has adapted their needs. Accordingly every change has provided mark
and Spencer different mode of work line which has created difference in perspective of society.
Lets look upon current slogan to market and branding its called it “spend it well” to show that

they are connecting towards the needs and wants of the target market audience. It shows an
rational department strategies which have been adopted by M&S.
Evaluate some options for collaborations and partnership to help grow the M&S brand local and
international
Partnership is always a great option for companies to make more profits. This is possible
when organisations tend to share profits and working with other firms. Marks and Spencer's
managers are understanding knowledge and expertise for knowing changes required in
environment and what is the best method for achieving it (Gundala, and Khawaja, 2014). There
are some partnerships which lasts for longer period and others are formed to address particular
issues.
Commitments and targets of Marks &Spencer
The aim of M&S is to work in partnership for achieving objectives and goals. This will help in
benefiting economic, environmental and social outcomes. This company is committed to sharing
and articulating benefits that results from partnerships. According to M&S, building partnerships
is a way of working that cuts across business.
Approach
Marks and Spencer builds it's strong partnership with other firms on a one to one basis. This is
structured by specific area of delivery. M&S is an organisation that is constructively and openly
working with different business partners. The principle followed by M&S while doing business
in partnership is given below -

There are various partnerships which enables M&S in helping to know what are the
factors which a customers cares about. The greatest partnership of M&S are Macmillan cancer
support, Royal British Legion(RBL) and Breast Cancer Now (Hanna, and Rowley, 2013). These
are best examples which reflects this company has made a difference by mobilising financial
support to cancer research. There are some partnership which emphasise on sharing expertise and
insights on specific areas. WWF has worked with Marks and Spencer on cotton, sustainable
fishing and water risk mapping. The contribution of WWF in leading scientific knowledge has
allowed this company to source more sustainably and make supply chains more resilient. This
company is also working with different universities for harnessing academic research and
thought leadership for innovation and product sustainability. M&S has taken an initiative with
partnership with OXFAM which aims in collecting unwanted clothes form customers.
Il
lustration 1: Marks and Sopenser partnership, 2019

TASK 4
Techniques used for measuring and managing the following -
Brand value
M&S is an organisation which has been working effectively since five years. This has
been placing strong base in line with long term plan. They have introduced various new products
as well as services in the core products General merchandise and food. This company has
broadened multi channel offer and expanded international presence (Heding, Knudtzen, and
Bjerre, 2015). They have also improved property portfolio. This company has perfectly managed
costs & done their investments in overall system and supply chain in order to improve efficiency
and productivity. It has been serving customers since 125 years and creating value, service,
innovation, trust and quality.
Brand awareness
M&S is providing products and services to customers according to their needs and
demands. This company is effectively building more channels in market. It has organised new
programs every quarter in order to make people aware about new trends and styles offered by
this retailing brand. It has international portfolio which helps in growing customer base (Hutter,
and et. al., 2013). It has also worked upon reinvigorating the brand communications.
Consumer attitudes
For knowing about consumer attitude, Marks and Spencer regularly does an effective
market research. This helps it in knowing what are the actual needs and demands of customers.
Moreover this helps in analysing basic attitude of prospective or existing customers. These
attitudes depends upon information that respondents are having, perception of customers, their
past experience and feelings. Surveys and feedbacks are two major things that help in knowing
customer attitude.
Purchasing intent
This is the probability which tells that a consumer will buy a product or not. For
evaluating purchase intent, marketers of M&S use predictive modelling. This helps in identifying
the possibility of future results which are based on historical data. This modelling uses set of
variables like website engagement, demographics, past purchase and interaction with messages

of marketing. The intent data analysis helps in revealing when a customer has strong
predisposition (Hwang, and Kandampully, 2012). The evaluation intent of purchase consists of
putting data together from different sources. This helps in understanding the factor which has
maximum impact. This data knowledge is used for driving marketing strategies and refining
messaging in different communication channel as well as marketing channels.
CONCLUSION
Fromabove discussion, it is concluded brand management includes managing activities in
order to maintain value of brand. This is required for keeping importance of brand in market for
longer period. It is seen that every brand which regularly keeps updating it's products is said to
make more profits than those which do not. The most important thing to be considered while
managing brand is knowing perception of consumers. Branding is defined as most important
practise that helps in creating brand value. As a big brand, it is of great importance for M&S to
maintain overall brand value in order to hold potential customers. If an organisation fails to
manage it's brands, it results in decline of customers. Also it is essential to bring continuous
innovation in products and services in order to attract increased number of customers.

REFERENCES
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Heding, T., Knudtzen, C. F. and Bjerre, M., 2015. Brand management: Research, theory and
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Hutter, K. and et. al., 2013. The impact of user interactions in social media on brand awareness
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Online
M&S, 2019. [Online]. Available through
<https://corporate.marksandspencer.com/sustainability/delivering-plan-a/leading-with-others-to-
accelerate-change/building-partnerships>