Importance of Brand Portfolio Management, Brand Hierarchy and Brand Management

This article discusses the importance of brand portfolio management, brand hierarchy, and brand management in expanding business and satisfying customer needs. It explores the significance of branding as a marketing tool and the key components of a successful brand strategy. The article also analyzes different strategies of portfolio management, brand hierarchy, and brand management used by Samsung.

BRAND MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Significance of branding.........................................................................................................3
Level 1- brand identity.....................................................................................................................5
P2, M2 Key components of brand strategy .................................................................................7
TASK 2............................................................................................................................................9
Analysis different strategies of portfolio management, brand hierarchy and brand management
......................................................................................................................................................9
TASK 3..........................................................................................................................................13
P4 Collaboration and partnership of Samsung with others........................................................13
Task 4.............................................................................................................................................15
P5, M5 critically evaluates differents types of techniques for measuring and managing brand
value...........................................................................................................................................15
CONCLUSION .............................................................................................................................17
REFERENCES..............................................................................................................................19

INTRODUCTION
Brand management can be defined as functions of marketing which are used as
tools for enhancing core value of products line. In simple word, brand management is
the procedure of building, maintaining and developing a brand. It is important tool of the
marketing because it initially analyses positioning of the brand in the market. It
introduces plans for improving brand value. If brand already possess an objective, in
that state management organized plan and introduces various strategies continuously,
so that brand achieves own objective. There is an example of the Samsung Company
which uses brand management as marketing tool. It is South Korean multinational
conglomerate company which is headquartered in Samsung Town, Seoul. This
organization offers worldwide services to customers. Samsung offers wide variety
products i.e. apparel, automotive, electronics, medical components etc. and services i.e.
advertisement, construction, medical care, communicational technology etc. The net
income of the organization is US$37.1 billion while revenue approximately US$208.5
billion (Samsung Electronics' revenue by quarter from 2011 to 2019 (in trillion KRW /
billion U.S. Dollars)*, 2019). This report covers significance of branding as marketing
tool. It includes key components of successful brand strategy for building and managing
brand equity.
TASK 1
P1 Significance of branding
Importance of the branding
Branding refers as marketing practices that company uses for creating a name,
logo which can determine as belonging of the business. It supports to recognize
products and services and differentiates products from other competitive products and
services. It is crucial not only for influencing brand value but also permits customers for
expecting advance quality in the brand from the organization.
Branding as marketing tool
It is an effective way of differentiating brand name from other competitive brand
and helps organization by offering effective strategy which makes brand best in global
market. Branding plays vital role in the business because it guides organization how to

get identification and becomes popular for the consumers. Here, logo is essential factor
of branding because it gives shape of the company.
Advantage: Marketing tool helps brand to emerge into business practices
because it generates future business and builds brand name. That improves
commercial value by offering more leverage to organization in the industry. Therefore,
branding is important for the business growth.
Bonding: Initially branding builds brand name and establishes brand value.
When brand name is established well-formed and becomes familiar for each customer,
in that state branding generates new customers.
Presence: Strong branding of company boosts employee confidence and
improves their pride as result comes satisfaction from the job and company (Piehler,
Grace and Burmann, 2018). High standard strategic branding supports organization for
building trust among customers and to reach potential customers and client which can
give sustainable growth in the business. In simple term it supports to create trust on the
company within market.
Relevance: Advertisement an important part of the branding because
commercialism techniques gives reflect to brand and express desirable portrait in the
market. Commercialism techniques like promotion techniques which promotes product
or company popularity. These techniques create trust on brand and attracts different
type of customers for purchasing products or services.
Performance: Branding techniques provides impression of the company or
products expertness and makes customer feel as they can belief on the organization,
products. Product services which offers by organization in this way that handles own
business position in competitive market. Thus, marketing tools are emerged in business
practices.
M1 Brand Management Model
Keller's model can use for understanding that how brands are managed
successfully over the time. Keller's model also known as Keller's brand equity model. It
supports Samsung to build image of brands in customer minds and helps to implement
strategies for continuous alleviating business over the time. The main goal of model to
build team which enhance brand equity of a company. Samsung applies this model for

managing brand equity over the time. This model is elaborated into brand equity
pyramid which is classified into four levels such as-
Level 1- brand identity
Brand identity can be defined as visual element of the brand i.e. colour, design,
logo, packaging which is identity of brand and differentiates the brand in the mind of
customers. In simple words, brand identity is well-defined image of the brand. To make
brand familiar of customer requires building brand identity. Brand identity is the primary
step in Keller's model which is most important step because it prepares platform of the
brand. Brand identity assists company to influence brand awareness in customers and
distinguish product from other products. To introduce new brand in market, Samsung
uses slogan or message for influencing brand awareness.
Level-2 Brand Meaning
It is second step of the Keller's brand equity model which gives carve to brand
and defines meaning of the brand as result for building brand loyalty within public.
Brand meaning not only express brand quality, price which is offered by the company
but also leads brand establishment within market (Borkovsky and et.al., 2017).
Organization builds meaning of the brand by number of different things such as giving
loyalty, claiming of 100% guarantee for product quality and commitment for audience
services. The main goal of the brand meaning to provide reason of the public of their
purchasing so that they come to visit again. Samsung company claims about electronic
quality which differentiate company from other. Thus brand meaning leads brand
performance and brand image in market which pulls customer towards company for
buying products.
Level-3 Brand Response
When products are purchased by the customers, they build their expectation with
the company for the brand so that they get reason to come back again for the products.
For example, if organization meets their expectation and offers highly featured product
to customers that means customer is totally attached with the company and
organization gets opportunity to grow business and gets success. On the other hand, if
organization unable to meet their expectation that leads negative response of the
customers i.e. doesn't purchase products and break trust on brand. Due to bad

response organization unable to recover brand image over extend period. Samsung
focuses on customer demands which meets organization from their objectives. That's
why organization requires building positive response, so which creates opportunity for
the organization to get their objectives.
Level-4 Brand resonance
It is fourth stage of the Keller's brand equity pyramid which is main foundation for
the brand equity. Brand resonance refers as relationship which is most important for the
organization because it creates community across the ownership of their branded
products Ofek and Schwalb, 2018). In simple word purchaser of the products feels
connection to each other because they dedicate for the same brand. Samsung offers
wide variety products to customers and meets their objectives by offering desirable
products. To establishes good relation Samsung offers website and customer care
services where customers can contact directly to seller about brand issues. While seller
resolves their issues and make them happy. Samsung influences brand value which
improves purchasing behaviour of the customers. To establishes good relation with
community organization offers them feedback facilities for raising their engagement in
the brand. Company offers them customer care services where customer can share
their issues relevant to brand quality or services. On other hand organization resolves
their issues which establishes good relation with them and creates brand loyalty. Thus,
Keller's model helps brand to get own aim over the time in industry.
Brand management model helps Samsung to influence brand name well-formed
in global market. Samsung company concluded various level in the brand management
model i.e. brand identity, brand meaning, brand response and brand resonance. These
levels improve brand power and supports to give brand equity in competition market.
Brand revitalization: It is used by marketer of Samsung company to maintain sales
and profit of the company. Samsung was specialized in semiconductor but in few years
expanded its business in home entertainment equipment and mobile phones. It is able
to retain customers and enhance sales by investment in advertisement and sponsoring
events such as Olympics games.

Brand reinforcement: Samsung company is able to create reinforcement of its product
by creating awareness among people about the performance of brand, its benefits and
develop new innovate products to satisfy needs of customers.
P2, M2 Key components of brand strategy
Brand strategy mentions long-term program which is used for improving brand
success in term of meeting specified objectives. Brand strategy helps company to
understand customer needs and builds good relation by fulfil their requirements. It also
assists organization to take competitive advantage from competition market. It has goal
to lead brand positioning in high scale as result generates sustainable growth in the
company. Brand strategies are the actions which company takes to distinguish product
from other brands (Du Preez, Bendixen and Abratt, 2017). Samsung is multinational
company which offers wide variety products to customers but it is famous for the
electronic products. Company applies brand pyramid model strategy for building and
managing brand equity across the world. Brand strategy helps organization to enhance
brand loyalty on specified brand. Customers loyalty directly generates high revenue of
the company. There are various components of a successful brand strategy-
Illustration 1: Keller's Brand Equity Model
Source: (Keller’s Brand equity Model – CBBE Model by Keller, 2019))

Idea: It refers as brand creativity which drives any company or modify brand
positioning which differentiate brand from others. Samsung has goal to create brand
equity across the world which leads sustainable growth in the company. To manage
brand equity organization, execute sustainable products which enhances brand power.
Target audience: Samsung uses market segmentation strategy where
organization categorizes customers in order to age, gender, occupation, income and
perceptions. To manage brand equity, organization targeted people from age 15-45
because they follow the latest technology. Based on the customer segment,
organization offers various products such as electronics item, telecommunication
equipment, medical components, apparels etc. along with wide variety services i.e.
financial services, entertainment, hospitality services. Organization attracts customers
by offering product line on different prices that manage brand equity. Thus, organization
uses customer segment strategy for focusing particular audience.
Brand promise: it is type of message which uses for target audience. Even it
also express customers that what expectation should keep from the purchasing of the
products (Rauschnabel and et.al., 2016). Samsung is the most trustable brand in the
global market due to brand promise. Samsung has aim to make organization as world
leading company and selects best team of HR and technology for organizing advance
products and service. Such kind brand promise of the Samsung helps organization to
enhance brand existence in market. By the help of experts, organization fulfil customers’
demands, therefore organization enables to focus all products of Samsung on same
platform.
Brand perception: It is third component of the brand strategy which is utilized by
the Samsung. Organization analyses market to know about brand positioning and
customer’s reviews about products quality. Brand perception strategy aware about
market competition and potential customer which can lead sustainable growth in the
company. Customers perception about brand helps Samsung to understand their needs
and expectations. Eve company get what product of company can lead profitability in
the company. That's why organization offers wide varieties products on different prices.
Brand value: Brand value guides organization to take appropriate decision which
improves brand power. To enhance brand value organization, invest high funds on the

R&D department which gives high standard quality products (Keller, 2017). Currently
organization launches Samsung Galaxy 10e model which possess various advance
features rather than previous Samsung galaxy models. Electronics products also
launches by the Samsung. Thus, organization improves brand value by introducing
standard quality products along with affordable price.
Brand Voice: Samsung has aim to become world leading company, that's why
organization focuses on brand price and varieties, so that each type of customers
enables to buy products. To influence brand voice between audience, organization
offers chat-box, own website services to customers where they can direct communicate
with the seller and can inquiry about products. Customer demands about Samsung
products improves working efficiency of the employees in the company. To manage
brand demand organization launches different products like home applications, medical
equipment etc. Thus, Samsung establishes good relation with them and raises brand
equity between public.
Brand positioning: it refers as the position which brand keeps in the customer’s
mind. In simple term strength and weakness of the company which they can use to
promote specific area and take competitive advantage from the competitors. This
component guides organization that how to keep brand on higher position, so each
product of the Samsung comes in single platform. Generally, Samsung applies
positioning strategy for promoting brand position in higher scale. Thus, this component
manages brand equity.
TASK 2
Analysis different strategies of portfolio management, brand hierarchy and brand
management
Brand portfolios defines as collection of different brand of company under single
brand that is used by it to satisfied needs of different people of the society. Brand
strategies includes plans and action, activities of company that need to be performed for
achievement of predetermine organisational goals. Effectively brand strategies is
important as it helps Samsung in expanding its business across various nation by
offering quality product and services to its customers.
Importance of brand portfolio

It is important because it helps in creating awareness among customers and catering
needs of different customers.
Company can easily expand its share in different market segment and also helps in
enhancing credibility of newer brand by associating with parent brand.
Portfolio Management strategies: It includes decision-making about
investment mix and allocation of resource to maximize return on investment (Ansoff and
et.al, 2019). Thus, it means investment in assets should be such a way that maximize
return and minimize risk. Portfolios management is further divided into active and
passive portfolio's management strategy.
Active Portfolio Management strategy: It is investment strategy that maximize
portfolio values as manager and investor both use various techniques to evaluate
financial securities (Pappu and Christodoulides, 2017). By evaluating various financial
securities manager and investor are able to choose the best portfolio's that yield greater
returns (Figueroa and et.al, 2019). Samsung manager and investor continuous evaluate
financial securities to get maximum return on its investment.
Passive Portfolio management strategies: It is also known as index fund
management as manager analysis and track return of particular market in order to get
maximum return on its investment. Samsung has also use passive portfolio's in order to
grow and survive in unstable market and to maintain and increase its profitability.
Both passive and active portfolio management strategies helps Samsung
company in getting advantages in stable as well as unstable environment.
Brand hierarchy: It is summary of brand strategies by explaining number and
nature of brand across various products in order to differentiate on the basis of brand
elements.
Branded house: It is most common and basic brand architecture that is used by
mostly company to promote its product under name of parent company. It helps in
increasing sales of new launch product due to well- established brand image of the
company in the market (Carolino Sousa Santos Junior, 2018). Each product brand
cannot not operate independently and are known by parent company name. Parent
company name is identified by using logo at back of the product or at its packaging.
Reputation risk is involved as if some product does not meet customers expectancy

than whole brand image will be negatively impacted as they will start associating with
new products,
House of brands: On the other hand, house of brand differ from branded house
as it provide single brand name in order to maintain consistent brand. Company has
various brand name and each operating independently with one another. Thus, each
brand name different look and feel to different customers. This strategy is used by
companies that wants specific brand name for different products of the company. It
requires more capital and resources to be invested as each brand has its specific
marketing strategies and identity.
Hybrid branding: Whereas hybrid branding is a mixture of two or more brand
architecture it is used when the company is merging with another company. It is done
by company to preserve old brand name in order to make customers happy and
satisfied and used for future offers. Try to avoid hybrid brand strategy as they are
compromise and are useful in certain specific situation where business case require
mix.
Comparison of hybrid branding and branded house: Samsung company has use
branded house and it better than hybrid branding because it reduces confusion as every
offering is under parent brand name rather than mix branding of various products.
Comparison of house of brand and branded house : Samsung brand strategic is
effective as it uses branded house in which one marketing strategy and one code are
used to cater needs of different individual. It also better Samsung has well- established
brand image in the market that helps in increasing sales of new products by using
parent brand.

Strategy used by company Samsung has use branded house in its brand
hierarchy as it promotes its product by using parent brand name. It aware consumer
about brand name of company by writing Samsung at the back of the mobile phone
(Balmer and et.al., 2017). Thus, it helps in maintaining and developing customer’s
loyalty and satisfaction for achievement of company goals.
Brand equity management model: This model is used to develop strong brand
image of company in order to maintain and retain customer’s satisfaction. Keller Brand
equity management model is followed by Samsung:
Brand identify: Company has effectively identified brand image by creating
awareness about Samsung product and services it offers to customers. It has aware
about the brand image of company by using Samsung word at the back of mobile
(Calantone and Nguyen, 2018). Thus, by using Samsung word it is able to effectively
promote various product and services and enhance its sales.
Brand meaning: Company has explained its meaning to customers by providing
and maintaining quality of services in order to retain customer’s loyalty. Customers are
fully aware that Samsung provide creative and innovative product.
Brand response: Samsung has continuous conduct research related to
customer’s preference in order to gain competitive position and thus innovate its product
continuous (Veloutsou and Guzman, 2017). Customers response on Samsung is that it
Illustration 2: Branded house
(Source: Brand Architecture: Eliminating Confusion. Providing
Structure. 2019)

provides quality, innovate and credible product that satisfy their needs beyond their
expectancy.
Brand resonance: Samsung by continuous innovating its product and services
is able to retain customer’s loyalty. Samsung by building strong relation and satisfying
needs of customers beyond their expectancy is able to expand its market share. It helps
in repeated sales and promote growth and sustainability of business in long run.
Thus, Samsung company by effective using brand strategies is able to grow and
expand its business in long run and able to attract large number of customers.
TASK 3
P4 Collaboration and partnership of Samsung with others
Collaboration refers as the procedure of cooperation in which two or more people
or organizations works together for accomplishing aim. While partnership can be
defined as formal arrangement where two or more parties collaborates for managing
and operating an individual business and shares their profit together. To understand this
concept better Samsung electronics is a brand under Samsung which is selected in
present context. Samsung launches electronic products, therefore organization
collaborates with other brands which helps organization to improve product equality.
Samsung has goal to improve brand equity and value, therefore organization
collaborates with other brands and comes in partnerships such as-
Partnership b/w Samsung and Microsoft
Microsoft is famous for the software and also has brand value but lesser from the
Samsung. Microsoft and Samsung keeps closer partnership for android mobile app.
Microsoft company updates new software apps i.e. android text message, notification
and large screen to Window 10 PC in Galaxy S 10e. Thus, Microsoft gives new features
in the latest mobile, Samsung builds OneDrive Sync support which is directly attached
into gallery android app. Through the OneDrive Sync support app, photos can see
directly by the cloud storage services. On other hand Microsoft gets permission from
Samsung for selling the Galaxy Note 10 from own stores. This partnership helps
Samsung company to cover domestic level.
Partnership b/w Samsung and Apple

Currently Samsung collaborates with the apple company for covering global
market. The main goal of the partnership to improve brand power and market share by
the help of Apple company. Apple announces that it offers iTunes film and TV shows on
Samsung television sets (Atwal and Williams, 2017). As same Samsung helps apple to
introduces apple products on low prices. Both partnership Samsung and Apple
improves brands value of the Samsung because they able to retail their products across
the world.
Partnership b/w Samsung and google
Partnership between Samsung and google helps company to alleviate brand
positioning in both level domestic and global market. Samsung and google announces
that they work together and offers high quality smartphones messaging experience and
offers rich communication services in the Samsung mobile. Thus organization gets
advance facilities in mobile services.
Partnership between various companies at national, international has adversely
impact on Samsung as it has to share its resources and its specialisation with other
companies to achieve objectives. It is not known as independent brand thus it means
brand name can be used by companies such as google, apple and Microsoft to attract
customers. Sumsung phone can be sold by Microsoft also thus authority is shared
among both the companies.
M4 different techniques for the leverage and extend brands
Line Extension
It is an approach for developing new products for current customers. Samsung
uses this strategy for introducing additional features in the same product category which
is undertaken by the same brand. Samsung Galaxy S 10e is the latest products of the
Samsung in which offers various advance features i.e. large screen, long battery life,
new apps feature, high storage like iPhone etc. This latest mobile is more advanced
from previous galaxy mobile. Thus, organization applies product line strategy for
extension brand popularity in the global market. It has drawback because line extension
leads complexity in brand equity managing because to keep all products in same
position, doesn't possible for the company.
Brand stretching

It is another technique for influencing brand leverage. Brand stretching refers as
the procedure of using popularized own brands name and launches different products
which is unrelated to product category. Samsung uses brand stretching strategy where
offers varieties of products like Samsung TV, Samsung Galaxy Mobile, medical
equipment, Samsung laptop, Home application equipment etc. to customers. The main
goal of the brand stretching influences brand positioning in customer's mind. Brand
stretching strategy helps organization to cover domestic market and influences
purchasing behaviour of each type customers in the market (So, Wu, L., Xiong, L. and
King, 2018). Disadvantage of brand stretching to company is that it has to keep
varieties of products which lead to high maintenance. Even it requires high funds in
R&D department for introducing different category products. Thus increases production
cost and impact adversely on profitability of company.
Uniqueness in priorities
Organization uses this strategy to differentiate brand from other brands that why
organization focuses on customer’s demands and their expectation. To fulfil their
demands organization offers standard quality products along with affordable prices so
that each customers gets enables to buy products. Currently organization offers
Samsung Galaxy 10e model which is similar to iPhone n term of features. Even
organization offers this latest mobile on lees price rater than iPhone. Therefore,
customers prefer to buy Samsung galaxy mobile rather than iPhone. It keeps some
drawbacks for example organization have to invest more funds on R&D department
because to keep brand priority in global market doesn't easy. It requires expert team for
changing in their products.
Task 4
P5, M5 critically evaluates differents types of techniques for measuring and managing
brand value
Samsung is multinational company which offers worldwide services to each type
of customers. Organization uses various techniques to influence brand value across the
world. Company has goal to maintain brand recognition in the world which leads
sustainable growth in competitive market.

Customer awareness: Samsung use this technique for measuring and
managing brand value. To influences brand awareness in customer’s mind.
Organization focuses on customer’s demand by the customers' segmentation strategy.
To aware customer’s organization offers online advertisement strategy where they alert
customers about new products so that customers attracts. Through the market analysis,
organization enable to measure brand demands. Based on the demand organization
manages brand value in both level global and domestic (Leijerholt, Chapleo and
O’Sullivan, 2019) level. This technique possesses negative impact because
organization focuses to customer’s demands and expectation, that's why organization
have to change their products continuously as result organization unable to brand equity
of the products in the market.
Preference metrics: it is powerful factor and essential for the analysing the brand
value and equity. Customer preferences measures through targeted group, sales data,
accessibility of products and their services. Organization uses this technique for
focusing on accessibility of various products and achieving targeted customers.
Financial matrices: it is also played significant role for measuring brand value.
Samsung uses this strategy to measure sales performance of products. Based on the
selling scale organization launches other products which influences purchasing
behaviour of the customers.
Brand tracking technique: Samsung works effectively for holding the strong brand
position (Lee, O'Cass and Sok, 2017). This technique can be differentiated into two
forms quantitative and qualitative. Quantitative refers analysis of IDIS and focus on
targeted group which helps organization to understand consumer purchasing behaviour
while qualitative techniques helps to measure satisfactory and loyalty of the customer
on the brand. Thus, organization uses this technique for managing brand equity in the
global market. This technique requires experts for measuring and managing brand
value which is the main drawback of the company.
Brand awareness: Organization uses various technique to measure brand awareness
i.e. survey , website traffic etc. are the best source to measure brand awareness.
Organization survey by the email, own website that express customer's craziness about
brand. Thus, company can measure brand awareness. To measure brand popularity,

organization applies brand awareness technique which helps company to know about
brand popularity in the public. This technique doesn't more effective because it diverts
mind of the employees to improve selling behaviour. Second organization doesn't get
appropriate statistics for estimating brand awareness in global market.
Market share: To determine market share company can take helps of mathematical
formula as technique. In which total sale is divided by company's total sales over the
business period. Thus, this technique gives the idea about company size. Market share
is effective technique which helps organization to measure brand value. Statistic data of
market share gives estimation about organization contribution in the market share. Due
to market share techniques organization have to face competitors like Apple Inc.
Cost based: It is most of the easiest approach as in it brand value of conmpany is
calculated by identifying cost incurred by company to build and maintain brand image in
the market. Advantage of it is that it can be easily calculated by adding total cost of R&D
department, promotion of product and market testing. It is disadvantage is that it use
concrete cost to estimate brand value.
Market based: In it values of similar brand is used that is sold or purchase in the market
to calculate brand value of company. Thus, it is not the best method for everyone as
both brand value differ as per quality product and services given by company. But at the
same time easy method to get rough idea of value of brand.
Finance Based: In it cost incurred in raising fund, various source of fund raise are used
to evaluate bran vale of company which is not appropriate.
Brand value of Samsung company is high as it is sixth most valuable global
brand this year approx $61.1 billion thus increase Up to 2%. It has been listed among
100 best global brands in inter brand and brand value surpassed $50 billion in 2016.
CONCLUSION
It can be concluded importance of branding as marketing tool in the report. Key
components of successful brand strategy for building and managing brand equity has
been concluded. Different strategies of the portfolio management, brand hierarchies and
brand equity management can be summarized in the report. It can be concluded
different techniques which is used to leverage and external brands. Different type of
techniques which is used for managing brand value for developing strong brand.

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