Brand Management: Building and Managing Brands Over Time

This document provides an overview of brand management, including how brands are built and managed over time. It covers key components of successful brand strategy, brand hierarchies, and portfolio management. The case study focuses on Cadbury, a renowned brand known for its high-quality and reasonably priced offerings.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Demonstrate how a brand is build as well as managed over time.........................................1
M1: Evaluate how brands are managed successfully over time using application of appropriate
theories, models and concepts......................................................................................................3
P2&M2: Key component of the successful brand strategy and their examples for building and
managing brand equity.................................................................................................................3
TASK 2............................................................................................................................................5
P3 & M3: Brands are organised in portfolios how brand hierarchies are built and managed.....5
TASK 3............................................................................................................................................7
P4: Elaboration of the way in which brand are managed collaboratively and in partnership
both at a domestic and global level..............................................................................................7
M4: Critical evaluation of the techniques which are used to leverage and extend brand............8
TASK 4............................................................................................................................................8
P5: Evaluate different types of techniques for measuring and managing brand value using
specific organisational examples.................................................................................................8
M5: Critically evaluate application of techniques for measuring and managing brand value.....9
D1: Provide a critical evaluation that is supported by justified evidence demonstrating a
comprehensive understanding of branding within an organisational context..............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Brand management can be defined as a marketing function which is focused by large as
well as small companies for the purpose of increasing perceived value of their brand so that
customer loyalty could be build. With the help of it an enterprise can enhance global recognition
of its products and services (Balmer and Chen, 2017). If an entity is not bale to manage brand
properly then it may result in bad market image and decreased market share. The organisation
which is selected for this report is Cadbury. It was founded by John Cadbury in year 1824 in
Birmingham, England. Its headquarter is in Uxbridge, London, England. This assignment covers
various topics such as understanding of the way in which brand is built and managed overtime,
organised in portfolios and brand hierarchy are built and managed. Along with this, the process
of brand leveraging domestically and internationally, techniques used to manage and measure
brand value are also covered in this project.
TASK 1
P1: Demonstrate how a brand is build as well as managed over time
The term branding is an effective marketing tool that help to present the suitable image
of the particular company's product in the mind of customer. This takes place by creating the
unique design, symbol, sign or name which customers can easily identify, recognise and make
suitable choices accordingly. Such memorable impression allow the customer to make certain
expectation from company based on their brand promise. True representation led the company
to differentiate its attributes or USP (Unique Selling Proposition) from its rivalries that are into
similar industry. In context to the Cadbury company which is the one of the most renowned
brand known worldwide due to its strong brand such as high quality and reasonably priced
offering that lead to the brand equity. Therefore, this globally appealed the interest of wider
range of customers.
Importance of branding as a marketing tool
Brand recognition: Branding simply leads to the brand recognition as customer start
gaining information related to its existence (Balmer, 2017). This led the company to build strong
professional logo that leaves the remarkable image within the society. Most of the people of
different age group recognises the Cadbury brand due to its intensive investment in the
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advertisement technique. This leads the company to gain the trust of customers and successfully
converted first time buyer into loyal customers.
Survive in temporary crises: Certain brand which has the genuine quality can handle
the crises as well as re-establish the trust over customers. As business function within dynamic
environment so unfavourable condition can led to the destructive condition. Herein, Cadbury has
even faced huge crises such as its 'Worm controversy' that sharply led down the sales of
Cadbury. But the representative of company came forward and explained that the existence of
worm is not due to the manufacturing process but because of poor storage condition within retail
store. Hence, it changed it packaging and run various advertisement campaign which
successfully help company to regain its market share.
Maintain the pride of employees over brand: The company can only attain its
objective with the significant efforts of the employee. If the personnel works for the recognised
brand like Cadbury then it automatically develop the job satisfaction as well as pride to be the
part of specific brand. This led the workforce to participate in the functioning of business with
the motive to gain the better position. Group of such competitive members led down the issues
like high turnover rate, even they openly participate in the change management process.
Enhances the brand value: Branding is vital to generate present as well as future
business. If the brand is strongly established then it enhances the value and leverage supreme
level of options that is gained by customer from the company (Chinomona, 2016). This is the
appealing strategy that motivate the firm to attract the customers and deliver value which finally
connect the customers with the company. Herein, respected company remain more concern in
order to maintain the expectation of customer. So being customer oriented it has the wider edge
of the customer that does nor prefer switching to the other product.
Emergence of branding in business practice
With the increase in competition and globalisation has lead the awareness in all the
organisation whether large or small to focuses on the branding. As this is what can distinguish
the offering of one company with the other. Cadbury was founded in the year 1824 and has
strong global presence all around the world that has successfully helped the company to gain the
huge customer base. Along with that the emergence of branding is due to the efforts of top
executives that made enormous effort to build the strong image of company and collectively
attain the goal and objective of an organisation. This is the current stage has enhance the value of
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brand by motivating the employee to perform all the roles and responsibility in the right
direction. They exclusively used both traditional and digital media to appeal the interest of
customer via innovative advertisement. Hence, the company constantly launched various variants
and created powerful message to retain the interest of existing and new customers.
M1: Evaluate how brands are managed successfully over time using application of appropriate
theories, models and concepts
It is vital for the Cadbury to manage their brand over a period of time in order to remain
ahead of their competitors for which Keller's brand equity model can be used. This model
helps to implement the effective strategy so that the strong connection or link can be maintained
between the brand as well as customers (Christodoulides, Cadogan and Veloutsou, 2015). It
basically include four level which has its own significance, firsts level is brand identity or who
are you which take place to generate the awareness and attract the customer. Brand meaning or
what are you is the second level under which company understand their target market and offer
them the reliable customer service to maintain their interest. Further, Brand response or feelings
for brand is the third stage that determine the pre and post feelings of the customer derived from
market information and usage. Lastly, Brand resonance or strong relation firsts level is build with
strong brand equity that does not lead customer to switch other brand. Thus, the company need to
maintain each and every stage effectively. Along with that PASP (Purpose, Ambition,
Strategy, proposition) model is used that help to manage the certain brand over the period of
time by classifying the main brand as well as sub brand effectively. This helps to position the
product by modulating effective efforts used to match the requirement of customer. Thus, it offer
the spectrum of options to the customer and manage the operations effectively.
In case of evaluation Cadbury's operation was started by John Cadbury started his
business by selling the cocoa or the chocolate by opening shop in Birmingham. The profit
generated from the shop was invested to successfully expand the company and become one of
the leading brand. The company expanded as well as managed their brand over the period of
time by understanding the perspective of people and bring on certain changes in the existing
product of company. Like, it has become one of the biggest confectionery company that has
strong network and cover the large market effectively. This lead company to gain sustainable
advantage.
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P2 & M2: Key component of the successful brand strategy and their examples for building and
managing brand equity
Brand equity is the core marketing term that help to generate the brand loyalty by
enhancing the experience as well as perception of customer. If the Cadbury company
consistently fulfil the expectation of customer then it leads to positive brand equity due to which
they recommend other as well to be the part of an organisation. Simply the past experience as
well as quality services delivered to the customer leads to the brand equity that satisfy to avail
the offering from particular brand. Thus, the wider options and strong brand equity encourages
the customer to remain the part of highly trusted brand (Dwivedi, Johnson and McDonald, 2015).
Component of brand strategy that help to build brand equity
Brand strategy comprises of the significant processes or procedure that help to effectively
evolve the successful brand and accomplish the specific objective. This even assist the business
to articulate the solution in order to overcome business problem. The explanation of these
components in order to maintain the brand equity are explained below:
Reputation: Brand reputation refers to the goodwill of company that help to maintain
positive responses and carry out the dealings of company effectively. In the competitive
environment it is tough for the business manager to sustain as well as enhance the reputation of
company. There are various external factors that can affect the business performance so the
manager of Cadbury company need to make the strategy based on changing trend. This leads to
the smooth performance that motivate the external shareholders to maintain the brand reputation.
Collaboration: Collaboration as well as teamwork strategies greatly help an organisation
to get the leverage of high brand equity. It is basically the driving force that encourages people
from diverse areas to retain the long term trust over the particular brand (Kaufmann, Loureiro
and Manarioti, 2016). For instance, as Cadbury keeps on launching different variants to give
wider choices to customer so it has collaborated with different products like Oreo. This was
preferred by the large audience and develop the brand successfully.
Competitive awareness: The strategy of business remains incomplete until and unless
they generate the knowledge about the competitive rivalries that are into same business. The
manager of Cadbury has the objective to gain global dominance due to which it gather the data
via market research team and google analytics. Such data is converted into the relevant
information based on which the company determine the viable strategy which can be inculcate in
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order to gain core competency. Further, it is the potential effort top take the steps and prepare
strategy with the objective to success and gain the loyalty from existing as well as new
customers.
Effective communication: It is the again the prominent strategy that help to establish the
brand equity. With the immense diversity the content or the message need to be culturally
sensitive and favourably designed because it is the main source that attract the potential customer
effectively. Like, Cadbury majorly communicate regarding the new product via advertisement
that help to emotionally appeal the interest of customer. Due to this strategy they seek the
required information and leads to the strong connection between company as well as customers.
Nurture customer loyalty: The whole process of brand strategy is formulated with the
aim gain the loyalty of specially existing customer that are the part of an organisation. As it
profitable stage for company not only in terms to generate loyalty but also assist them to gain
long term sustainable development. So the company uses celebrity endorsement, offer loyal
rewards and focuses to keep on launching new variant (Lilleker and Jackson, 2014). This
generate the curiosity among people to try the new product and gain high profitability by
maintaining the brand equity effectively.
TASK 2
P3 & M3: Brands are organised in portfolios how brand hierarchies are built and managed
Brand portfolio is the umbrella that comprises of various product line that are suitably
designed in order to cater different needs of the market effectively. These product help to
effectively fulfil the need of diverse group effectively. The main benefit that the company derive
from the brand management is that they can overview the functioning of different products and
frame the suitable policies accordingly. Also it leads to the optimum utilisation of resources to
carry out different business functioning. Within, London Cadbury company has the second
largest confectionery that deals in wide range of products like chocolates, biscuit, ice cream,
beverages and so on. The company mainly rely on the market research so they matches with the
need of the customers and effectively work to gain huge recognition global;ly.
Strategies of portfolio management
Brand house strategy: As the organisation consist of main brand as well as sub brand, so
within this strategy all the sub brands area sold out with the name of company itself. This is
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either used by the large organisation that have stable position or by those companies that cannot
invest much time or costs to decide the name of different sub brands. For instance, Apple which
is the prestigious brand uses this strategy to gain the loyalty of customer for its different
offerings like laptop, iPod, smartwatch and so on. This can be more convenient for the Cadbury
to use if they deal in single product line.
House of brands: This is just opposite of brand house strategy as within this stage the
company set the distinct image of its sub brand (Nyadzayo, Matanda and Ewing, 2015). Here the
customer recognises product with the name of its sub brand rather than company's name. The
most common examples of the company using this type of strategy is Unilever as well as P&G.
This strategy can be possibly adopted by Cadbury company to develop the unique image of all its
products. Further this is useful for the business as even if any product faces the problem then it
will not affect the position of other brand.
Hybrid strategy: This strategy is used by the company to manage the master brand as
well as sub brand of company. This led the company to extend the brand and offer diverse
product or services to the customer by using both main brand as well as products name. For
instance, Microsoft Project, Microsoft Internet explorer as well as Microsoft Health. This
strategy can be adopted by the Cadbury company in order to manage and promote the different
range of offerings successfully.
Thus, among different types of strategies Cadbury actually adopts the hybrid strategy.
This assist company to categorise different product range and uses different strategies in order to
flourish the business and grab the attention of customer suitably.
Brand hierarchy: It is the process that help the company to summarises the brand and
prepare strategy in order to maintain the distinctive image of the different firms product. The
company that deals in more than one brand need to use brand hierarchy or architecture in order
to manage the master brand and sub brand that help to segregate different offerings effectively. It
is basically the responsibility of the manager of Cadbury to formulate the effective strategy and
present the unique image of company.
Brand equity management: The consistent effort of the company leads to brand equity
which comprises of the brand recognition and loyalty. This help the firm to gain long term
implication in order to enhance market share and sales. It is the vital aspect that encourages the
company to deliver the value to customer which finally recognises by the company and they
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prefer to be the part of specific brand (Pecot and De Barnier, 2017). The manager of Cadbury
suitably focuses in the management of brand equity due to which it uses innovative technique
and provide different range of items. This lead different customer to get the product based on
their preferences that develop the strong brand equity in comparison to the other rivalries.
On the basis of above analysis it has been critically analysed that the terms brand
portfolio management, brand hierarchy as well as brand equity management are the
effective part of an organisation that systemically manges company's offering. They are basically
associated to manage the different offering of company and position it effectively by maintaining
the brand promise. The positive impact of the portfolio management and brand hierarchy is to
manage the different offering of the company. So that it become convenience for the internal
manager to decide required modification they can make on different items in order to appeal the
interest of customer. Whereas, even if organisation focuses on different strategy to manage its
offering but dissonance of customer affect the sales of different products. In terms of brand
equity the company gets the privilege to set the high prices in comparison to the other substitutes
because they have the huge base of loyal customers. On contrary, constant innovation and threat
of rivalry does nor guarantee long term sustainable development to the company.
TASK 3
P4: Elaboration of the way in which brand are managed collaboratively and in partnership both
at a domestic and global level
Currently the concept of globalisation is growing massively which is facilitating business
entities to develop their business in multiple level. For this purpose organisations are required to
manage their brand in systematic manner at global and domestic level in partnership and
collaboratively.
When organisations come in partnership then an agreement is signed by them in which
they agree to cooperate to advance the mutual interest. In such types of businesses the both the
partners have right to take decision for betterment of firm and profit is shared by them on a
predetermined rate or ratio (Phillips, McQuarrie and Griffin, 2014). Best partnership example is
GoPro and Red Bull, both are lifestyle brands which cam in to an agreement to become partners
so that their sales can be enhanced. Both of them are having different things in common such as
extreme, fearless, action packed and fearless. The companies have managed themselves properly
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at domestic and global level by formulating effective strategies. They have done various projects
together in partnership for the development of business. While operating business at domestic
level both of them make sure that proper contribution is made by them for promotions. When
they plan to market the products in multiple countries then the main factor which is focused by
them is making sure to deliver right message to clients so that revenues of both of them get
enhanced.
The organisation which is executed with the collaboration of two companies is known as
collaborative business. Currently Cadbury is in a collaboration with Oreo as it is using the
biscuits to make its new chocolates Dairy Milk Oreo. Both the organisations have collaborated
for the purpose of increment in sales so that profits could be maximised. These companies
manage their brand value collaboratively at global and domestic level. While maintain it in
multiple countries the management of both the enterprises focus on latest trends in the market
and then formulate decisions for future. In order to manage brand value in domestic countries
both the entities try to get expertise so that higher level of competitive advantage could be
acquired that will help to enhance brand value in the market (Riley, Singh and Blankson, 2016).
From the above discussion it has been analysed that all the organisations whether these
are partnership firms or collaborative businesses manage their brand value in systematic manner
at global and domestic level by paying attention towards promotional activities and events.
Along with this, enterprises such as Cadbury, Oreo, GoPro etc. are also paying attention towards
the market trends so that they can manage the brand value at global and domestic level properly.
M4: Critical evaluation of the techniques which are used to leverage and extend brand
There are various types of techniques which could be used by organisations such as
Cadbury for the purpose of leveraging and extending brand. These are running operations
collaboratively or in partnership. With the help of both the approaches, companies can take
advantage of reaching maximum number of individuals and increasing their sales. There are
various disadvantages of these techniques because for small firms it is not possible to implement
them because the cost of them is very high (Sarin, 2015). Along with this, the major drawback of
the techniques for large organisations is sharing of power because management have to ask from
the other parties involved in agreement or collaboration before taking any decision.
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TASK 4
P5: Evaluate different types of techniques for measuring and managing brand value using
specific organisational examples
Brand value is represented in the numerical data as it state financial worth of the
particular product that is offered by the particular brand on the basis of its significance within
market. If the customer find that the quality of product is worth buying then it leads to the
positive brand value. So if the firm consistently fulfil the basic requirement of customer then it
may leads to the high brand equity and remain useful to reach out diverse market. Some of the
technique that can be used by the Cadbury in order to attract the potential customers are defined
below
Cost approach: Cost approach signifies that the prices paid by customer for particular
product is equivalent with the overall cost incurred by company to transform raw material into
final product (Seimiene and Kamarauskaite, 2014). This involve two different categories, one is
replacement cost method and other is historical cost method. Based on historical cost, it is vital
for the company to state actual cost which mean price at which assets were purchased rather
than current market prices. Further, replacement cost method is used by firm while replacing the
current asset which are obsolete for the firm. So Cadbury need to manage as well as update the
expenditure of company in order to determine the suitable value.
Market approach: It can be defined as the process which is used by organisations for
the purpose of analysing the value of an asset which is based upon the selling price of same
assets. With the help of it management can make proper and elective decisions for the purpose of
making adjustments in the similar assets.
Therefore, amongst these approaches Cadbury can adopt the cost approach as it is the
effective method to construct the true evaluation of the asset based on which it can set the
desirable prices. This prices is suitable not only from the form's point of view but also from
customers perspective (Urde and Koch, 2014).
M5: Critically evaluate application of techniques for measuring and managing brand value
Thus, it has been critically analysed that there are various approaches such as cost
approach and market approach based on which company can set the value. Each process has its
positive as well as negative influence due to which different firm rely on such technique for
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adequate business functioning (Wang, He and Barnes, 2017). While using cost approach, the
company can incur the true valuation of their assets but simultaneously firm cannot totally
depend upon this approach as it is based on certain assumption which make it slight doubtful.
Similarly, market approach involve easier calculation but it is tough to compare transaction
incurred within similar type of company.
D1: Provide a critical evaluation that is supported by justified evidence demonstrating a
comprehensive understanding of branding within an organisational context.
Brand management is the technique that enable the company to manage the diverse
product line of the firm. The effective brand management led the firm to enhance the price of
product in comparison to competitor but does not led the customers to break the loyalty and
switch to other brand (Williams Jr and Omar, 2014). In context to Cadbury build the strategic
plan for the comprehensive market where it understand the perception of customer and help to
fulfil the need of target audience. Therefore, here the focus is given to both tangible and non
tangible aspect in order to reach out the audience and gain sustainable development.
CONCLUSION
From the above project report it has been concluded that brand management is the
process of formulating decisions to manage the image of a brand in the market so that customer
base could be strengthen. Branding is an important marketing tool because with the help of it
large number of clients could be attracted by an organisation. Reputation, collaboration,
competitive awareness, effective communication and nurture customer loyalty are the key
components of a successful brand strategy. There are various strategies of portfolio management,
brand hierarchy and equity management which could be adopted by enterprises according to
their requirements. These are branded house strategy, house of brand and hybrid strategy. When
an organisation is in a partnership agreement or collaboration the brand value is required to be
managed properly at domestic and global level.
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Collaboration of Cadbury. 2019. [Online]. Available through:
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