Brand Management: Building, Leveraging, and Merging Brands

This document provides an overview of brand management, including the process of building a successful brand, brand portfolio and hierarchy management, and the techniques of brand leveraging and merging. It discusses the importance of branding as a marketing tool and the role of marketing in creating brand equity. The document also includes a case study on Nestle, a Swiss food and drinks company.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1...................................................................................................................................1
Understanding that how a brand is build...............................................................................1
TASK 2............................................................................................................................................5
Brand portfolio and hierarchy management...........................................................................5
TASK 3............................................................................................................................................6
Evaluation that how brands are merged collaboratively........................................................6
TASK 4............................................................................................................................................8
Evaluation of different type of techniques of measuring.......................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Brand management refers to the technique for managing, supervising and improvising the
products or brands reputation for creating the positive perception, brand value, brand positioning
in the mind of target market. NESTLE is a Swiss international food and drink processing firm.
The company has its headquarters in Vevey, Vaud, Switzerland. It was established in 1866 and
the founder of the company was Henri Nestle. The company sells the products like coffee, milk
products, ice creams. It has around 91.43 billion of its revenue and 3,08,000 employees. Firstly
the report will give brief regarding the Optimum Impression Limited which is an advertising
company and furthermore it will include the understanding regarding the brand management by
explaining the significance of branding as a tool of marketing and its growth in business
practice. This study will also contain the successful strategy for managing the brand equity as
well as assessing the strategies for managing portfolio and brand hierarchy. This report will state
the way in which brands are investing and extending domestically and globally over time as well
as evaluated different types of techniques used for managing brand value with the help of
specific examples.
TASK 1
Understanding that how a brand is build
Introduction
Brand is referred as the concept in which a product or service that can be differentiated through
the symbol, designs as well as sign by the customers from other products in the market, through
using effective brand strategy Optimum impression limited can get unique image in the
competitive markets.
MAIN BODY
Brand is power
Preview on Brand , Brand equity
Brand equity referred as the value that Optimum impression limited can earn by having
recognised logo, design and name in the competitive market. The value of the product is earned
when it is used by the customers to compute the worth. Brand equity of the company can be
build by providing quality services, free trials and providing products or services as per the
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needs and requirements of the customers(Steenkamp, 2017).
There are different stages that can make the company the successful brand in the competitive
market.
The Stages of building a successful brand
The process of building the flourishing brand can result in creating loyalty among
customers as well as uniqueness among the competitors. In order to get successful in the cut-
throat market Optimum impression limited need to make the strong relation with customers this
will result to increase in sales. The stages are as follows:-
 Identify the target audience:- The first step that Optimum impression limited company
should keep in mind for building the brand is to target the customers. To identify the
needs of the customers the company should organise the campaigns for making the
brand successful. Decide the best way of communicating the message to the target
customers. The company should target the customers according to the demographic,
psychographic and geographic segments(Rosenbaum-Elliott, Percy and Pervan, 2015).
 Describe the brand mission:- Second step the company should do is to describe the
values that the company wants to gain from the targeted customers. The company’s
vision as well as mission will decide the purpose of the survival for the long run,
Optimum Impression limited is required to present the unique image that the company
wants.
 Analysing competitors:- The another step to identify as well as to analyse the
competitors and wants of their customers. Optimum impression limited should think in
which aspect the company is unique and better from others. To achieve the wide number
of competitors the company can modify the branding process and with effective
communication strategy.
 Generate value prepositions:- Optimum impression limited should generate some
values that are governing which makes the company distinctive and valuable in order to
make the brand successful(Penumakaand et.al, 2017).
 Define the brand guidelines:- At this stage the Optimum impression limited company
should set the policies and guidelines in order to build a successful brand.
 Market your brand:- The last stage the company need to do is to brand the market by
applying proper marketing strategy like on packaging, labelling as well as to build the
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new ways to promote the brand that will result to build the brand successfully from the
competitors.
The role of marketing department in creating brand equity
Marketing sector is very essential for Optimum Impression limited to create the brand equity
The marketing system is related to the distribution channels, product as well as price as
marketing system plays an essential role in building the brand and its awareness. This is done
through marketing communication like advertising.
Marketing communication is very important for Optimum Impression limited, it not
only will build brand equity of the company at the same time it will help the company
distinguishing the product from the competitors as well as to develop a strong relationship with
customers and to make positive image in the mind of the targeted consumers for the long term.
For analysing successful strategies for building and strengthening the brand equity as
well as for extending the brand, reinforcing the brand, Optimum impression limited can
overcome the problems regarding the brand by applying the Aaker's brand equity model
In the Brand Equity model David A. Aaker have explained regarding the five important
parts that are:-
 Brand loyalty:- In ordeer to increase the brand loyalty Aaker stated that Optimum
impression limited should firstly reduce the marketing cost, attract the new customers
with help of the existing customers as well as to timely respond to the threats that
occurrs by the competitors. If the customers are loyal to a brand this will result to
strenghthen the value of the brand as well for extending the brand in the competitive
market(Lee, O’Cass. and Sok, 2017).
 Brand awareness:- Aaker's model stated that in order to strenghthen and increase the
brand awareness Optimum impression limited should firstly create the positive
impression in the mind of the consumers regarding the brand as well as brand should be
considered during the process of purchasing that will help the company in extending the
brand.
 Perceived quality:- Aaker's model explained that in order to increase the brand equity
and to provide good quality products the company should measure the distictiveness
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from other brands, price, the channel that company is using. This will result to
strengthen the brand as well as equity.
4. Brand association:- In order to strengthen brand equity Aaker’s brand equity model states
that Optimum impression limited can associate the brand with the help of advertising to find in
what way customer relate his thinking regarding the brand. The brand can be easily correlated
by the uniqueness with other competitors. This can result to company’s brand extension as well
as customer satisfaction.
5. Other proprietary assets:- According to Aaker’s model the proprietary assets refers to the
patents, operating partners, copyrights, personal property rights etc. Aaker defines that their is
significant interrelation among the components of brand equity that is increasing brand loyalty,
perceived quality as well as brand association that will result in boosting and strengthening the
brand in the competitive market(Kelley, Sheehanand Jugenheimer, 2015).
Conclusion
From the above task it is concluded that marketing of the brand plays a very important role in
the competitive market as well as Aaker’s model of brand equity is very essential strategy that
is used to strengthen the brand equity, brand extension at the same revitalising the brand. At last
it is very important for Optimum impression limited to know the significance of branding as a
marketing tool.
Importance
1. Branding helps the company to get recognised- It is the most important basis for
Optimum impression limited because it will help to create perception in the minds of the
consumer regarding the brand as well it can easily recognised this will result to increase
in business value.
2. Branding generates new customers:- A strong branding will help the company in
generating the impression in the minds of the existing customers and will bring new
customers as well because of the strong word of mouth as a effective promotion tool.
3. Branding improves employee satisfaction:- when the Optimum Impression limited
have a stron brand name then the employee working in that organisation feel very proud
and will be highly satisfied with their work which makes the employees to build the
brand easily in the market.
4. Branding creates trust in the marketplace:- If Optimum impression limited have the
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well defined strategy of branding as well as the appearence of the company that will
help to build trust among the customers and employees.
5. Branding supports advertising:- Another important component of branding is
advertising(Heding, Knudtzen and Bjerre, 2015). If Optimum impression limited has
good advertising strategies then it eill reflect directly with the brand of the company.
The techniques of advertising like promoting of the products from the reputed and
trusted companies will help the company to increase the brand equity, brand loyalty as
well as brand name in order to successfuly achieve the business objectives in the
competitive market.
TASK 2
Brand portfolio and hierarchy management.
Brand portfolio Strategy: brand portfolio are known as the strategy where the all the brand of
the organization cover in a portfolio. In normal words we can say that the brand portfolio is the
collection of the all brands of the organisation which they offered to the customer. Brand
portfolio have two types.
Active portfolio strategy: In this strategy company gives the all effect to engage with others
business and customers. Companies following this strategy can change if they analyze market
can go down. They can make defensive decisions to minimize risk if any case like the market
falls. This is considered as effective strategy that encourages on maximizing brand value. In this
strategy company invest amount in those products which are highly demanded and preferable by
consumers. By investing in such products company will have high earnings on their investments.
Passive portfolio Strategy: in this type of strategy company use less money in every thing.
They start to less invest in the branding of the product. Low operational cost help the company in
the tax saving and it is a one time of invest of the company. This help the firm in the decision
making. It is a customer oriented approach.
Top down approach
In this approach company focus on analyzing external environment and ensures threat for
future. If problems of political and economic situation occur, then company will face problems
and it can no longer survive in market(Ertimur and Coskuner-Balli, 2015).
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Bottom up approach
In this approach company focus more on internal environment which can directly affect
portfolio and brand image. It develops methods in which company can strength the internal
position which help in sustaining for a longer time.
Hierarchy management of brands: brand hierarchy is knowns the summarized of the brand
strategy and displays in the form of numbers. This is the two type of the of hierarchy
management.
House of brand: in the house of brand there is many sub brand of the company but they all are
known form their firm name and it creates a very strong brand between the product which mean
they all known by the brand. For example google is a big brand and it has various sub brand like
google drive. Translate and gmail. These all known by the name of google. Example- Apple, Fed
Ex.
Brand of house: in the brand of house there are many sub brands of company and they all are
known as the separately. The all sub brand are promoted separately and they are not related to
each other. P&G, Unilever, coca cola, Pepsico etc. these all brands have many sub brands and
they all are known by the own image and promoted or selling by their own sub brand name
rather than the Main brand name(Chernev, 2018).
Company use these strategies for maintaining the equity of the brands and follow those
steps for the maintaining the brand value.
TASK 3
Evaluation that how brands are merged collaboratively
Brand leveraging: brand leveraging is a technique which is used to promote the new product
with the help of the existing brand where power of existing brand name used and company enter
in new product category by introducing it to customer by providing valuable information about
product(Ertimur and Coskuner-Balli, 2015). Brand leveraging is important for introduction of
new product because it provides familiarity and positive attitude and brand characteristics to
consumers And help the new product to grow in the market with the help of the old product
which is already popular in the market. Company need to decide which product to be leveraged
and maintain the quality of product under the brand. It is an indirect approach of building brand
equity. It is also called umbrella or family branding where a product is introduced in under an
existing brand name.
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Nestle is a Swiss food and drinks company which have founded by henry nestle in 1905.
It operates in the 189 country with the help of 339,000 employee and also have 447 factories for
the production of the products. Company have more than 2000 brands and over 8000 products in
the market. It provides the provide almost all over the world.
Strengths of Nestle:
 Reputed brand name: Nestle is most known brand of the world and also nestle has
invested a lot in the customer market and researchers. Nestle has around 2000 sub brand
and 8000 products in the worldwide. This benefits company in identifying the customers
need and opportunities to innovate the product and provide the quality and value for
money product. Reputed brand name help the company to launch anew product without
the too many promotions and it builds the good relation with the customer(Atwal and
Williams, 2017).
 Globally recognised brand: Nestle is the globally recognised brand. Almost in every
country Nestler sell their product on there. It creates the good advertising and branding
strategies for the company. It helps the company to promote the new product in the
market.
 High diversified company: Nestle send their product on the around 189 countries it
includes the big Market countries like china, France, India and Brazil. It is the most
popular brand of the world. It helps the company to sell the product in the world level
market.
 Popular brand product: Nestle has some sub brand which are more popular than the
others like Nescafe, meggi, kit-kat etc. these sub brand have more popular than the main
brand. It covers a big market for the company. Which help them to gain the good profit
for the company and also make the popular brand of the company(Steenkamp, 2017).
 Large distribution system: Nestle have good and a very large Distribution system.
Company have many products so they need a large Distribution system. Which help the
to grow fast and make more profit from the business and also provides the product in all
over the world.
Weakness of Nestle:
 Fake product sold: Nestle is a big brand and the demand of the product is increasing day
by day So Company has faces various issues regarding selling of fake products which has
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affected its sale, goodwill, lost customer base, decrease in revenue. It effects on the Brand
value of the Company in the international market.
 Strong competition: Nestle facing Strong competition in the market like P&G, M&S etc.
which cause as the loss of the customer and also less sell of the product. From this kind
of competition the growth of company effectuating(Rosenbaum-Elliott, Percy and
Pervan, 2015).
 Span of control: span of control is known as the structure of the organization. Nestle use
the Matrix structure which mean the all brand are under the single set. It is very
complicated to manage the big network of the brand.
Recommendations: nestle is a big brand It needs to overcome the weakness with the help of the
strategies. Company facing the issue in the Structure of the organisation. To overcome this
Weakness company should apply a new structure like functional structure which help them to
mange thee all sub brand in easy way. Company also facing the Strong Competition in the
market to resolve this company gives some offers on the product which help them to gain the
customers and also give the different from its competitor.
Collaborations and partnership: Collaboration and Partnership is technique where two or more
company work together for the same goal. Nestle will collaborate with the weal-mart which help
them to sell their products on the Weal-mart store and help the weal-mart to increase the
customer base with the help of Nestle.
TASK 4
Evaluation of different type of techniques of measuring
Brand value: brand value is known as the worth of the brand. It shows the power of the brand d
and level of the brand in the market. Positive brand value shows the loyalty of the customer to
the brand. Nestle is well known brand in the world and also the leading brand in this sector.
Nestle maintain the brand value by taken the regular feedback and also provide the quick
solution of the problem of the customers(Ertimur and Coskuner-Balli, 2015).
Brand awareness: brand awareness means that how brand recognize their product in the market.
It helps the company to increase the trust of the consumer. Pepsico is the leading brand and for
the brand awareness it gives the sponsorship in the world level tournament and also organize the
event for this purpose. It gives the regular advertisement for it. It gives the biggest advantage for
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the Pepsico and also help the company to increase the revenue of the company at the global
level.
Market share: market Share is the term which represent the sell of the particular product of the
brand or total sell of the company. It helps the company to know their position in the market and
how to improve it. Nike is the leading sports brand in the world. It provides the best quality and
option in the shoes segment from the other brands. Nike always introduce the new series in the
market.
Consumer attitude: customer attitude measure by the company by checking the response of the
costumer in particular product. P &G measure the costumer attitude by checking the response of
the customer or taking the feedback. It helps the company to understand the problems and also
create the trust in the costumers mind. It has helped firm in growing and retain the
customer'sKapferer, 2017).
Purchasing intent: intent is probability that measures that consume buy the product and service
from the company or not. To evaluate the intent company use the model. For example puma
makes use of the lead's generation techniques which mean that they measure that how many
time's customer visit the site for the company it helps the to know about the interest on the
product of the customer from this company will promote the sell of the particular
productRosenbaum-Elliott, Percy and Pervan, 2015).
CONCLUSION
From the above study it can be summarized that the importance of the brand management and
marketing tools of the brand. This also summarized that the key components of the successful
brand strategy fir the brand and also managing the brand equity in this report also discuss about
different strategies of the portfolio management and brand equity management. This report also
summarized the different type of techniques for measuring the brand value with the specific
example of organisation. It also includes the brand management collaborate and partnership of
the both global and domestic level.
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REFERENCES
Books and Journals
Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!. In
Advances in luxury brand management (pp. 43-57). Palgrave Macmillan, Cham.
Chernev, A., 2018. Strategic brand management. Cerebellum Press.
Du Preez, R. and Bendixen, M.T., 2015. The impact of internal brand management on employee
job satisfaction, brand commitment and intention to stay. International Journal of Bank
Marketing, 33(1). pp.78-91.
Ertimur, B. and Coskuner-Balli, G., 2015. Navigating the institutional logics of markets:
Implications for strategic brand management. Journal of Marketing. 79(2). pp.40-61.
Heding, T., Knudtzen, C.F. and Bjerre, M., 2015. Brand management: Research, theory and
practice. Routledge.
Kapferer, J.N., 2017. Advances in Luxury Brand Management. Springer.
Kelley, L., Sheehan, K. and Jugenheimer, D.W., 2015. Advertising media planning: a brand
management approach. Routledge.
Lee, W.J., O’Cass, A. and Sok, P., 2017. Unpacking brand management superiority: Examining
the interplay of brand management capability, brand orientation and formalisation. European
Journal of Marketing. 51(1). pp.177-199.
Penumaka, S. and et.al, 2017. System and method for brand management using social networks.
U.S. Patent 9,747,609.
Rosenbaum-Elliott, R., Percy, L. and Pervan, S., 2015. Strategic brand management. Oxford
University Press, USA.
Steenkamp, J.B., 2017. Global Brand Management. In Global Brand Strategy (pp. 181-208).
Palgrave Macmillan, London.
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