Brand Management: Strategies for Building and Managing Brand Equity
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This document discusses the importance of branding as a marketing tool and the key components of a successful brand strategy. It also analyzes different strategies of portfolio management, brand hierarchy, and brand equity management. The case study focuses on Marks & Spencer, a multinational retailing venture.
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Brand Management
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Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1. Define the significance of branding as a marketing tool and why it had emerged in business practice..........................................................................................................................1 P2. Determine the key components of a successful brand strategy for buildingand managing brand equity.................................................................................................................................3 TASK 2............................................................................................................................................4 P3. Analyse different strategies of portfolio management, brand hierarchy and brand equity management.................................................................................................................................4 TASK 3............................................................................................................................................6 P4. Assess how brands are managed collaboratively and in partnership both at a domestic and global level...................................................................................................................................6 TASK 4............................................................................................................................................9 P5. Assess different kinds of tools for measuring and administrating brand value.....................9 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................11
INTRODUCTION Brandmanagementrefersactivitiesthatareconductedbybusinessenterprisefor appropriately manage brand. There are several techniques and tools which are implemented by organisation for managing brand and getting attention wide range of target audiences. Along with this, it is most essential to retain loyal consumer for long term (Rambocas, Kirpalani and Simms, 2018). For the completion of this assessment, Marks and Spencer is taken in to consideration. This business venture was incorporated in 1884 by Michael Marks and Thomas Spencer. They centre on offering products and services crosswise the world. This written document will discuss about the importance of branding as a tool of marketing. The key factor of managing strategies for successful brand is managing or handling brand equity in an effective form. In this assignment, there are different plan of action that are utilised for portfolio management, brand equity management as well as brand hierarchy is considered. It also considers assessment to how brand is managed collobarively at both domestic and global scale. Along with this, there are different tools that are utilised for measuring and handling values of brand which is define within this document. TASK 1 P1. Define the significance of branding as a marketing tool and why it had emerged in business practice Branding denotes actions that are taken by business organisation for endorsement of products and services associated to brand. It is significant for Marks & Spencer to execute effective activities associated to branding that provide several benefits during specific phase of time frame (Rather and Camilleri, 2019). Along with this, branding plays an important function in making that helps in getting attention large number of user in respect of business that develops sales of establishment. Marks & Spencer centres on developing their brand image by provide higher quality products and services to its consumers and fulfilling their require.Along with this, branding is analysed as an effective plan of organisation that is useful for developing sales in upcoming time. The importance of branding as a tool of marketing that is going to be defined as under: The brand offer competitive benefits brand is very important because it helps organisation in accomplishing rivalry benefits over competitors at market place. By utilising higher brand image, 1
the Marks and Spencer is capable to accomplish competitive benefits over rival organisations at market and also it is utilised in performing different activities of company. There are different techniques of company. Brand is important activities that offer support to establishment in developing market share of firm. Attract customers- The brand is crucial for getting attention large number of user in context of organisation. The brand image associated to Marks & Spencer is able to getting attention of range of consumer and develops sales of firm (Anees-ur-Rehman and et. al., 2018). Thus, the brand image of company to be importance because it attracts a number of customers with the aim of developing brand image. This strong branding that is efficient for developing positive impact of brand among consumers. Increase profitability-Maximisation in profitability margin of the firm is the key objective of firm and it crucial for respective firm to develop higher brand image for increasing revenue and income. Branding is analysed as a significant segment of firm as it supports in maximising activities of marketing of firm. It is crucial as branding will aids supports in making business value that will be crucial for efficiently execute activities of business enterprise. Enhance customer loyalty- By utilising strong brand in the company, they will be able to maximise satisfaction degree of user. Branding is important marketing tool and it is crucial for developing loyalty of consumer and for developing its brand image. It is crucial for Marks & Spencer to analyse effective activities associated to branding with aim of accomplishing aim as well as objective in timely form. Thus, it is needed to develop loyalty of consumer in context of maximise consumer base and build optimistic image of position in the market place. Along with this, branding is analysed a important segment of company as it will lead to develop activities associated to branding for getting attention of large number of user in respect of company. Branding actions and procedures posses direct impact on functions of company and it is important for selected firm to consider efficient activity to execute successful branding. This string branding poses optimistic influence on company and they are able to execute task of firm in successful way (Goggins and et. al., 2020). The specific firm centres on executing different activities of branding with aim of developing profit margin upcoming time duration. In Marks & Spencer, branding activities aids support in developing different task and activities ineffective manner. As per the particular firm, they accept several kinds of marketing tools for getting attention of number of consumers with increasing revenue or income of the company. 2
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Branding has emerged inside the commercial enterprise practices in following methods ï‚·Branding allows in producing the future business and properly installed brand can help increasing the commercial enterprise cost. ï‚·It has developed the sense of professionalism a few of the personnel of Marks and Spencer and employees also sense proud and satisfied while running in the corporation. ï‚·A well mounted branding techniques has helped the corporation in constructing the agree with its clients, customers and also with its consumers. ï‚·Branding could have the impact at the long time increase and profitability of the business. ï‚·Brand building allows a brand to come to be a worldwide emblem via splendid branding and its implementation. P2. Determine the key components of a successful brand strategy for buildingand managing brand equity Brand strategy refers the long term planning associated to brand for accomplishing aim and goals of the firm. It is important for Marks & Spencer to effectively utilise brand strategy for developing brand equity. There are different aspects that are crucial for developing higher brand equity. There are diverse aspects that are crucial for developing higher brand equity. Along with this, brand equity refers to commercial value associated to company from the perspective of user in context of brand image of company (Zameer, Wang and Yasmeen, 2019). It will consider perception of consumer towards products and facilities which is offered by company that support in developing a brand image and reputation of firm in front of user at marketplace. It also refers values that are accepted by company in its same kind of commodities under particular brand name. It is crucial for making higher brand in comparison to other competitive firm. The action plan that is accepted by Marks & Spencer to develop brand value that is defined as under: Brand awareness- For creating awareness regarding products and services, the selected organisation focuses on including different approaches in effective manner. It is effective tool for developing awareness towards services and offering different goods to its user. Brand loyalty- In Marks & Spencer, the management of the company is needed to offer effective services along with higher quality of commodities for developing brand loyalty and trust of user in context of company. Along with this, it is effective tool which is crucial for maximising brand reputation of firm by satisfying demand of its user. 3
Apple is the fine instance of brand equity. Although all made from this brand has similar functions, the loyalty, demand and fee top rate is higher than different similar brands. Many different social networking web sites came and gone; however, Facebook is pretty steady. Facebook has managed to achieve logo unswerving customers that most of its users do not even examine different social media platforms. Examples of Negative Brand Equity Goldman Sachs an funding bank and financial carrier agency misplaced its brand fee while humans found out its function within the 2008 financial crisis and took 10 years to get better its popularity. From 2009 to 2011 Toyota recalled almost nine million motors due to unintentional acceleration and anti-lock brake software program issues. Oil and gasoline logo Shell Oil spilled in the Nigeria delta damaged its brand fairness. TASK 2 P3. Analyse different strategies of portfolio management, brand hierarchy and brand equity management The portfolio management acquire selection and effective controlling or monitoring of program of business organisation for accomplishing or gaining positive outcomes associated to facilities. The key purpose of portfolio management is to administrate performance of changes for accomplishing favourable outcome in future time frame. As per Marks & Spencer, it is analysed as a famous multinational retailing venture because they acquire diverse sort of portfolio managementplan that iscrucialfor managingposition at rivalrymarket place (Iorgulescu and Marcu, 2019). It denotes several plans of actions and plans of portfolio management which help in offering guidance in order to managing or handling products and facilities of firm. Passive managementaccording to this strategy, the company centres on accomplishing and attaining aims of business firm for gaining competitive benefits over rivalries at marketplace. As the establishment can concentrate on organising their actions in effective manner that is defined as beneath: Indulginginlongtermtrading-Herein,thefocusisonmaximisingportfolio management where organisation performs their trading to develop or enhance scope associated to portfolio. 5
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Investment in index funds- This situation arises, when company centres on having wider portfolio that define Marks & Spencer is facing or confronting several type of issues in the market (Majerova and Kubjatkova, 2020). Active managementit is important strategy that is essential to utilised by the firm that is associated to data determination of specific organisation portfolio as organisation centres on perform their task or project in diverse form that is going to be defined under: By using quantitative analysis- Company must consider offering arithmetic comparison in order to assess growth of portfolio strategy in a effective form. Diversification factor- As per the particular venture like Marks & Spencer needed to have different portfolio to develop the scope associated to development and progress in the market. From above defined discussion of several plan or strategy associated to portfolio management, the venture like Marks & Spencer must analyse or include active administration as they utilise diversification strategy. Brandhierarchy:Itreferstowardsseriesofcommoditiesthatmanufacturesand marketing under name of organisation or its brand. There are diverse kinds of commodities and services provided by Marks & Spencer like clothing, home appliances and many more that is produced in manufacturing house for marketing purposes. It refers different plans and strategies which are defined as under: Branded house- As per this strategy, the company and establishment assess brand as well as sub brand in of venture that is not related with primal brand (Lesmana, Widodo and Sunardi, 2020). It supports venture to become stronger in compare to its rival firm during the given time frame. House of brand- According to this approach, sub brand is included as a different from company because they centre on promoting sub brand for maximising experience and level of knowledge of user during specific time period. Along with this, Marks & Spencer centre on promoting its brand in context of getting attention of large number of target audiences at the market place. On the defined description regarding brand hierarchy, there are diverse plans that are measured by selected firms like brand, clothing home appliances, electronic appliances and many more in context of retaining consumer for long term (Joshi and Yadav, 2018). It is analysed that 6
a flexible business venture diversified and differentiated their goods from its competitor ventures in context of attain and accomplish rivalry benefits from the market place. Brand equity management- It refers ad denotes to the system associated to process of research that centres on optimum use of information in context of attain and accomplish objective of the business organisation. In Marks & Spencer, the management of the firm accepts brand equity management which is mentioned as under: Salience-Itistheprimarylevelwhichsupportincreatingawarenessaboutthe commodities and services of the company at market place. Customer focus- It on satisfying demand of its user or target audiences by using several endorsement channels and tools. Promotion- Within this, there is two need of company perspective to manage relationship with its user. It is also crucial in retaining target audiences for a long term period. Judgement- As per this phase, goods and services is launched and introduced s per to the consumers perspectives. Resonance- It is analysed as a highest process where establishment centres on analysing model of consumer physiology in order to satisfaction level of its user. Brand portfolio is one the most vital part of an business enterprise. Brand portfolio method enables in proper renovation of the brand in relation with various factors such as charge and high-quality of products, customers desire and so on. The exceptional of the brand have to be precise and they ought to in step with the needs of the purchaser. Portfolios assist the business enterprise through providing a proper enterprise shape and subject which is wanted for imparting aid and successful implementation of plans of the organisation. Brand portfolio is came about whilst a unmarried organization is working in the market with multiple emblem (Robertson, 2018). ï‚·Brand fairness helps in improving the exceptional leading to fulfillment of the business enterprise. The diverse strategies that can be used by Optimum Impression Ltd are as follows: ï‚·Forecast of the demands need to be made. This will help the logo to understand about the tendencies. With forecasting the call for the emblem can help the brand in noticing he trend and offer product and offerings in keeping with that. 7
ï‚·Developing a really perfect advertising and marketing method is likewise very helpful. It enables the enterprise to know the desires of the customers, and their interest. A perfect advertising method may be evolved simplest after the method of call for forecasting. ï‚·A proper product control is necessary which enables in doing away with any form of uncertain situations all through the advertising and marketing. Every product must be recorded and traced. Predefined policies need to be set to dispose of uncertainties. This includes every step from use of uncooked materials to marketing the product. ï‚·The logo have to consciousness on enjoyable the orders on time. This could build client believe and emblem picture. ï‚·A true fine of product and provider should be supplied to the clients for the charge offered. ï‚·The emblem ought to keep away from right and state-of-the-art generation for staying up to date with the changing generation. ï‚·For being modern and imparting verities to the clients, the emblem have to produce unique products and services with exceptional fee degrees. TASK 3 P4. Assess how brands are managed collaboratively and in partnership both at a domestic and global level In context of business enterprise, the management of brand is crucial for business firms as brand shows mindset of customers for administrating long term relations with target audiences of the business enterprise (Erkmen and Hancer, 2019). Thus, Marks & Spencer is considered as retail Sector Company which provides its goods and services at global level. The brand management is determined as a crucial and significant as well as important aspect for all ventures that supports in gaining competitive advantages that exist in the market place. In addition to this, operation connected to organisation in addition with small venture is determined as a primal method for investigating worth in the market. Brand extension- It is the use of a well established brand name in new product categories. Therefore, new segment to which the brand is extended can be connected and unrelated to the existing product classes. A successful brand supports a company to launch goods in new segments in easier form. Brand extension is included as a basic one which aids supports in 8
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managing with rivalry benefits (Rambocas, Kirpalani and Simms, 2018). It is important in administratingappropriaterelationwithcustomerbyofferingthemproductaspertheir requirements and needs. With the support of it, brand extension highlighted on utilising higher quality of goods and services by making change in current goods and facilities in mind set of customer at the market place. In order to consider brand extension, Marks & Spencer can have several advantages like it develops and improves brand image of the business enterprise and reduce the risk that is perceived by customers. In addition to this, the efficiency and productivity of promotional expenses increases and costs of advertisement, selling and promotion are reduced. Line extension- It is method and technique that can be adopted by the company in context of making focus on the expansion of an existing product segment. It occurs when the company introduces additional commodities in the same product line under the same brand. In Marks & Spencer, the management can earn diverse and numerous advantages in context of accepting this strategy and plan like established loyal customer base, low cost of manufacturing, low cost of development and goods supply or retailer relationships as well as able to meet diverse need of target audiences. Strategies of brand extension- There are numerous kinds of companies that emphasise on dealing in different commodities and facilities in compare to its rivals. In context of this, it is important for company to design and formulate plans and strategies for performing diverse acts and task in more developed manner (Rather and Camilleri, 2019). Therefore, the business goals and objectives of the company are same as they highlight on attracting number of target individual within a particular time period. The company emphasise on gaining or earning high level of profits and income then they highlight on developing and enhancing the faithfulness or loyalty of its target people. In addition to this, the business firm can include diverse kind of marketing techniques and channels such as social media, advertisement, TV, commercial ads and others in context of promoting and advertising its products and facilities in the market place. The descriptions of some of them are as below in context of Marks and Spencer: Brand imagination- Itisincludedasa brandthatisfollowedbyeachformfor development and progress of organisation and also support in administrating the relation with the consumers. 9
Innovation- It is determined as technique and tool that is crucial to execute task along with some creative offering in the market place (Anees-ur-Rehman and et. al., 2018). It will offer support in improving and enhancing profit margins and income of the company. Strengths of Marks & Spencer Company Effective operating strategy:Marks & Spencer centre on administrating its effective operational plan in context of compete its competitors. The business venture has also introduced technology in it supply chain in order to sustain efficiency and productiveness. Lower prices:Marks & Spencer provides discount prices to its consumer. It supports in getting attention of number of target audiences. The main focus of the company is on the user’s satisfaction. In addition to this, the company has launched private label brands. Weaknesses of Marks & Spencer Company Inability to penetrate in foreign markets:Marks & Spencer has limited operations in some areas like USA, Europe, UK India and others. Due to which, the organisation has limited reach to its potential customers. Ethical issues:The organisation has involved in several controversies like spying in the employees of their organisation (Goggins and et. al., 2020). It has resulted in leaving a bad impression of their establishment that have reduced their market share. Collaborative and partnership agreements The collaborative and partnership agreements on context of Marks & Spencer are as below: In 2014, Marks & Spencer make partnership with Consumer Goods Forum to support industry efforts as well as making current focus on sustainable and healthy lives. CGF is a industry association and Marks & Spencer status in this partnership is as a participating firm,memberoftheboard,previousCo-chairoftheRetailerCollegeandthe Sustainability Steering Committee. In 2013, the management of respective firm made partnership with World Cocoa Foundation to promote sustainable cocoa economies. World Cocoa Foundation is Multi Stakeholder Initiative and Marks & Spencer participating company as well as first retail member. There are different tool included to extend brand is brand awareness that is considered as a marketing term which determine level of consciousness of product by name. In addition to this, 10
the organisation focus on creating and increasing awareness for promoting goods and services that supports in rivalry benefits over rival ventures in the market (Zameer, Wang and Yasmeen, 2019). Marks & Spencer n choose partnership agreements to leverage and extend their brand in the best possible form and in those markets that are effective for the company. The partnership agreements enable the company with other benefits like enjoying the brand value of their partner and make sure of increasing their efficiency with extension. The partnership agreements also offers the company with other expansion and extension opportunity where the entity will be introduced with new assets to make their move in to diverse area of work and making sure the impose of the best activities to the better in the market. After a proper evaluation it is located that there are numerous techniques which might be used for logo leverage and growth. With the help of brand leverage, the employer can make bigger their services and products. With proper logo leverage the brand can easily perform and establish in new marketplace and extend in present market. The brand price can also be extended with the use of diverse techniques (Santana and Tauber, 2011). The techniques that can be used to leverage and increase manufacturers are as follows: ï‚·The brand should cognizance on increasing logo focus. The greater clients are aware of the call and products of the band and its first-class the more it'll assist in expansion of the business. ï‚·The logo need to consciousness on marketplace proportion. It should cognizance at the location of pinnacle percentage of the market and at the identical time should also cognizance on improvement within the location of less marketplace shares. ï‚·Effective management of services and products with affordable expenses need to be there to attract extra clients and boom the income. ï‚·Good first-rate of after sales services need to be furnished. ï‚·The costs of the goods should be set as a consequence to make its attain to every quarter of the financial system. ï‚·Use of higher era and improving the pleasant of the products will help in gaining consumer pride and agree with. 11
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Marks & Spencer have included diverse plans in context of development of range of customers. All the business activities that are utilised by particular business venture are in favour of one higher agenda of manage their brand on top and remaining its popularity with effective procedure and business activities (Iorgulescu and Marcu, 2019). While doing so there are range of aspects, nations, models and structures are engaged by the company starting from the branding tactics, to create brand awareness and brand value techniques then the brand extension and leveraging aspect is described within the establishment made use of partnership agreement. Branding performs a vital function in the business enterprise who results in development. After, examine all the element of emblem control. It is an vital idea for the corporation having a loyal emblem. In this human beings generates their personal belief in step with their final revel in with the equal logo. It improves their logo photograph by their advantageous emblem fairness. The Marks & Spencer is a multinational employer who manufacture fashion product. It determines the emblem equity whose advantage is to boom the product sale. It is also a massive aid to the customer, it attracts them and other investors draws by means of the equal great. It is the responsibility of the business enterprise to preserve their emblem fairness. The advantage of ascertaining the ideal logo fee will make sure that assets are accurately channeled to in which they'll deliver the best price to the organization, specially in optimising a logo portfolio. Decisions concerning the proper degree of advertising spend, the evaluation of brand manager overall performance, and the preliminary selection whether or not to build a strong brand may be simplified.Another capability use is making sure that the correct price is decided for mergers and acquisition purposes. It is time for advertising as a profession to undertake commonplace requirements similar to the accounting career has followed standards of practice in their discipline.Furthermore, an correct brand equity valuation ensures that brand-licensing fees efficaciously replicate the blessings obtained (Keller 1998).The goals of this newsletter are: to identify and overview the numerous tactics and methods used to fee brand equity and to talk about the problems managers need to take into account while comparing valuation methods. The foremost contribution of this article is that it gives managers with hints on what to search for while going via an emblem fairness valuation procedure. The valuation measured and managing techniques will be easily assessed based on the following methods. 13
Market based brand evaluation- This method is completely market based as it supports to understand the current market value of the company between its rivals so far. The more the organisation understands the value of the firm, brand, stocks and other related things, the more it will be crucial to administrate the market needs of the firm as well. Assets perspective evaluation- Each venture has some tangible and tactical assets and in order to calculate the brand value of the firm, the brand must calculate and consider the value of its assets when it comes to the assessment of the resources so far (Brand management. 2020). It will be beneficial to the band to get the exact calculation of the brand value which would be considered as an easy method and support to male effective plan to maximise the brand value. CONCLUSION From the above mentioned content, this has been concluded that brand management is an application that includes different techniques and methods associated to goods and services. It is aneffectivestrategywhichconsistdesigningandperformanceofdifferentmarketing programmes and actions with the utilisation of which a business venture can able to make and manage brand equity. Branding is a significant marketing tool with the support of which company can launch and introduce their products and services in different market with the help of product differentiation strategy. It is crucial to sustain faithful customer for a long term. In this consideration, there are several plans and strategies adopted for portfolio management, brand equity administration and measure brand hierarchy. It includes analysis that how brand managed collaboratively in both local and global level. Also, there are several kinds of technique which adopted for assessing worth related to connected to brand that is going to be explained in this document. REFERENCES Books & Journals Rambocas, M., Kirpalani, V.M. and Simms, E., 2018. Brand equity and customer behavioral intentions: a mediated moderated model.International Journal of Bank Marketing. 14
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