Brand Management Strategies and Techniques

Explore the strategies and techniques used by leading organizations like Apple Inc. and Nike in brand management. Learn about brand building, brand hierarchy, brand equity management, and more.

Brand Management
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Table of contents
Introduction......................................................................................................................................3
Section 1..........................................................................................................................................4
LO1 Demonstrate an understanding of how a brand is built and managed over time.....................4
P1 Explain the importance of branding as a marketing tool and why and how it has emerged in
business practice..............................................................................................................................4
P2 Analyze the key components of a successful brand strategy for building and managing brand
equity...............................................................................................................................................7
Section 2..........................................................................................................................................9
LO2 Analyze how brands are organized in portfolios; how brand hierarchies are built and
managed...........................................................................................................................................9
P3 Analyze different strategies of portfolio management, brand hierarchy and brand equity
management.....................................................................................................................................9
LO3 Evaluate how brands are leveraged/extended over time domestically and internationally...15
P4 Evaluate how brands are managed collaboratively and in partnership both at a domestic and
global level.....................................................................................................................................15
LO4 Evaluate techniques for measuring and managing brand value over time............................18
P5 Evaluate different types of techniques for measuring and managing brand value using specific
organizational examples................................................................................................................18
Conclusion.....................................................................................................................................20
Reference List................................................................................................................................21
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Introduction
As industries continue to expand and focus more on their sales growth, there has been a huge
uproar in various fields regarding making one’s organization futureproof. Although such an idea
prompts companies to undertake aggressive measures, from a business point of view it seems
absolutely critical. With the increase in industry rivalry at almost all levels of businesses,
companies now look to manage their brands with the ulterior objective of protecting it from
disarray. In doing so, they make use of various theoretical as well as practical methods so that
they can ensure the company’s longevity.
In a highly competitive environment, brand management has become increasingly important. It is
defined as the process of maintaining and upholding one’s brand so that consumers are always
confident of the various products and services that an organization might be offering. There are a
number of important factors to keep in mind when managing a brand. Aspects such as cost,
customer satisfaction, etc., come into play with proper brand management. This study will look
at the various factors related to proper implementation of various brand management techniques
and theories.The two brands that have been selected for use as reference are Apple Inc. and Nike.
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Section 1
LO1 Demonstrate an understanding of how a brand is built and managed over time
P1 Explain the importance of branding as a marketing tool and why and how it has
emerged in business practice.
Branding has emerged as one of the most essential aspects of the business strategy. This
marketing process is often considered to be merely a promotional function. Managers involved
within a successful marketing firm should understand branding is about publicity of products’
image, a supplementary process, which could be isolated from the core business of product
management. In this case, branding strategies and management of Dove will be analyzed. All the
specifications are analyzed in detail below,
Importance of branding as a marketing tool
According to McDonald and Wilson(2016), various marketing strategies commence with the
value proposition, the different kinds as well as amounts of value that an organization wants
consumers to receive form the market offering. This value proposition also addresses vale as
considered by the organization as well as seeking to create into the service they offer
(testconso.typepad.com, 2018). With development in branding concept, it becomes an important
tool for organizations to convey their core messages and motives. Through the brand dynamics
pyramid importance of branding as a marketing technology could be assumed. The brand
dynamics pyramid is listed below,
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Figure 1: The brand dynamics pyramid
(Source: Vasileva, 2016)
According to this above-mentioned pyramid, it could be perceived that customers are the integral
part of branding as a marketing tool. In the first phrase an emotional and rational attachments to
one brand becomes prominent with the consumers in exclusion of other competitive brands. In
the advantage phrase, customers felt to have a rational bonding with a particular brand.
Performance stage indicates to the fact that acceptable service or product performance is
appropriate to achieve customer attentions (Vasileva, 2016). Relevance indicates that all the
services and efforts are projecting customers’ needs. Presence stage indicates to the fact that
there is an active familiarity regarding their upcoming brand and product established by the
organization. All the levels involved in the brand dynamics pyramid reflects that branding as a
marketing tool is important for establishing customer relationship from weak relationship to the
level of strong relationship.
Emergence of branding concept in business practices
Emergence of branding concept along with strategies in business practices has two major part
namely, past and contemporary situation in branding. Details of each stage is attached below,
Formatting and past stage of branding
Batey (2015) has mentioned the fact that Branding, as any type of concept, has developed over
time: from the time when a sheep of one group initiated to be branded to differentiate them from
other group in order to enter in the contemporary era, when each thing from food to flower, is
branded. The formatting stage is concisely divided in to stage namely “Branding before the
1970s”,“Branding in the 1970s and 1980s”, and “Branding in the 1990s”. In the first stage,
three core branding concepts and theories has evolved despite the resistance of consumer
movement as well as Clayton Act. These theories are segmentation strategy, brand loyalty and
lifestyle concept of branding. According to Moriarty et al., (2014), segmentation concept reveals
that in a particular area there are different types of customers with their various demands over
products. On the other hand, brand loyalty though a debatable issue reflects the fact that
consumers are loyal to the brands related to household products around 90%. The lifestyle
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branding concept is reflective of customers’ lifestyle in services and products (Hampf and
Lindberg-Repo, 2011).
Next stage in emergence of branding states that against the topical issue of branding in the prior
era, this time branding correspondences immaterial value of services and products in comparison
of market competitors’ products. The macro marketing concept has become prominent in this
stage, which involves product positioning concept in branding. The last stage in this era unfolds
mathematically representation of brand equity(Hampf and Lindberg-Repo, 2011).
Current branding situation within business practices
The current era in branding states concepts of brand identity, corporate social responsibility and
Country-of-Origin (COO). The brand identity, Wheeler(2017) stated by provides guidelines to
what parts of a particular brand must be kept the same and which elements should be modified to
better. On the other hand, Powers and Greenwell (2017) have states that celebrity endorsement is
one of the remarkable concept of branding in this era. The above-mentioned organization (Dove)
also involves this kind of celebrity endorsement in their product branding strategy. The other two
strategies are reflecting the sustainability as well as consumer protection policies in
organizations.
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P2 Analyze the key components of a successful brand strategy for building and managing
brand equity.
According to Keller's Brand Equity Model, there are four key elements of a successful brand
strategy for managing and building effective brand equity. These elements are listed below,
 Brand identity
In this stage, organizations are need to set goal regarding creating “brand salience” or
awareness. On the other hand, the marketing team in this stage requires ensuring that the
nominated brand stands out as well as that their consumers identify it and are fully aware of
all the specifications (Keller, 2016). The perceptions about products are correct at the main
stages of purchasing process.
 Brand meaning
In the second stage of successful branding strategy, the organizational management requires
to recognize and communicate what the individual brand means as well as what it stands for.
Two key building blocks in this stage are imagery and performance. The former criteria
suggest efforts of organizations to meet with consumer requirements in a psychological and
social level (Keller, 2016). On the other hand, performance of a product has five distinctive
categories such as durability, service effectiveness, product reliability, style, design and price
and others.
 Brand responses
Brand responses indicate to customers’ responses as well as judgements regarding the brands
they are trying to purchase. Customers’ judgements fall under four categories namely quality,
credibility, consideration and superiority. Keller(2016) has identified the fact that consumers’
also respond to the brand according to how brands makes them feel. According to (), there is
six effective feelings that is connected to customers’ responses namely warmth, excitement,
security, fun, self-respect and social approval.
 Brand relationships
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According to Smilansky(2017), brand “resonance” positioned at the top of the pyramid of brand
equity as this is one of the most difficult and significant part of creating a successful brand
equality. The brand resonance is divided in to four sub-sections, which are listed below,
Behavioral loyalty:This category unfolds a regular practice and repeat purchase.
Active engagement:The organizational management needs to engage their consumers in a
strategic and innovative way.
Attitudinal attachment: This section reflects attachment of the customers with the brand and
organization also needs to formulate strategies for retaining this (Keller, 2016).
Sense of community:The organizational management needs to create an environment which will
reflect a sense of communication and relationship of customers with organizational
representatives and other consumers (Keller, 2016).
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Section 2
LO2 Analyze how brands are organized in portfolios; how brand hierarchies are built and
managed
P3 Analyze different strategies of portfolio management, brand hierarchy and brand
equity management.
Portfolio Management: For decades now,
portfolio management has been defined in
various ways. However, in basic terms
managing a portfolio encompasses various
operational functions such as making
decisions about investments, aligning
investments with objectives as well as
looking after allocation of resources for
individuals as well as departments. In the
words of Kaiser et al., (2015), Portfolio
management is an art as well as a science.
This study will now focus on how portfolio
management is done at the two different
brands that have been chosen. Initially the
study shall focus on Apple Inc. and then
move onto Nike. This approach shall help
the readers understand the aspect of
portfolio management better because it will
also act as a comparison between the chosen
brands.
Apple Inc.
Apple Inc is one of the strongest and most
valued brands in the world. With a great
barnd awareness and image, there are many
things that new companies can learn from
them. In the world of technology, Apple Inc.
is one of the few companies which not only
focuses on meeting cutomer requiremnets
but hasa very strong marketing department
as well. According to Apple, good protfolio
management is only possible if a company
has products at all stages of the product life
cycle; Risk, Revenue and Maximization
being the most important (Klingebiel and
Rammer, 2014). However, the way Apple
places its products in Revenue Smoothing
and Competition blocking is also very
commendable.
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Figure 1: Apple Company Reports
(Source: AboveAvalon.com, 2017)
However, over the past few years, iPad and
iPhone sales have been decreasing (Stettina
and Hörz, 2015). At the same time, the
shrinking in sales of the MacBook has also
become quite visible. Therefore, the
company has sought to make a few changes
in their portfolio management. The two
strategies that Apple has made use of to
increase their efforts in the sector of
Portfolio management are:
 The design and implementation of a
multiple product line: This has been
done after extensive SWOT analyses
and the company has focused to
predetermine any market risks that
might arise in the future. Apple Inc.,
through this strategy, has looked to
minimize their chances of failure in
an extremely competitive market
(Kocket al., 2015). Backup plans for
all of their product lines have been
formulated so that all situations of
crisis can be averted.
 Interrelating products in different
product lines: Apple Inc. have
highly integrated all their products so
that sales of one can enhance sales of
the other as well. However, this
strategy will only be implemented
once the products in one product line
reach saturation in terms of sales.
The problem with Apple’s existing
strategies however, is the fact that it
somewhat contradicts the very notions that it
had functioned on for so long. Apple Inc.
was initially known to implement a
contingency form of approach to their
portfolio management which enabled them
to meet changes as and when they occurred.
Following a pre-determined path might
cause problems in the company’s longevity
because the needs of this particular market is
always changing (Picard, 2014). Adapting to
such changes might be a challenge with
these new portfolio management strategies.
Nike
Whilst most people think of the “swoosh”
when talking about Nike, global managers
from a worldwide basis have always
speculated the different strategies that Nike
makes use of to manage their portfolio with
such excellence. Nike’s portfolio
management has somewhat been simple and
easy to implement. The factor that has made
it easy to implement is Nike’s worldwide
presence. The three most used strategies by
Nike regarding management of their
portfolio are:
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 Subsidiaries: Nike has never been
shy of acquiring domestic and
international companies to extend
their reach (Routledge.Keller,
2014). By doing so, Nike have
offered these companies to function
independently but under the
implementation of Nike strategies.
Experts see this move as
revolutionary because most
acquisitions kill the innovative
approaches of the host companies
(Brexendorfet al., 2017).
 Designing product lines in
alignment to a particular set of
consumers: Nike have been known
to design their products with a
particular set of consumers in mind.
They have products for the average
person as well as sports celebrities.
Such an approach enables the
company to cater to a variety of
consumers and thus make sure that
the organization never runs out of
business (Huang and Sarigöllü,
2014.).
 Correct allocation of resources to
the most immediate aspects of
business: Nike has expertly
determined which departments need
funding and have always come up
with a way to provide the same.
Having such an approach has
enabled the company to focus on the
issues that require their immediate
intervention.
However, Nike’s approach to portfolio
management is more of a monetary process
which sees a lot of capital being spent so
that successful implementation of all the
above strategies take place (Wheeler, 2017).
Based on how Nike fare in the years to
come, their portfolio management could see
huge changes.
Brand Hierarchy:This term is basically
used to summarize the branding strategy
developed by organizations. It displays the
number and nature of distinctive and
common brand elements which helps the
consumer in identifying the ordering of the
brand elements (Keller, 2016). As in the
case of any hierarchy, there are more entries
in a structure as and when it moves down
from a top-down hierarchal structure. Whilst
many companies use a corporate brand
hierarchy, some companies have been
known to use a mix of various other factors
as well.
Apple Inc.
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Apple Inc. is generally recognized by the by
their parent brand name- Apple. Be it their
consumer electronics or their ventures into
the music world, Apple Inc. has always
worked towards adopting a “monolithic”
branding architecture (Vomberget al., 2015).
Along with its iTunes, Apple sought to
create a market for its brand, irrespective of
whether or not the music industry gained
from it.
In terms of brand hierarchy, Apple Inc. is
defined as a strict corporate brand that
promotes its parent organization through all
of their products. Since Apple Inc. were able
to develop their own operating system to go
along with their electronics, they have not
had to use the brand hierarchies such as
family or endorsed sub brands (Luo et al.,
2015). However, many experts are of the
view that since Apple Inc. is most well
known for their cell phone devices under the
name of iPhone; Apple Inc. might also be
implementing a product hierarchal branding
structure without letting their consumers
know about the same.
Nike
As has been mentioned above, Nike have
never been shy of promoting the many
acquisitions of different companies. Nike
lets them function independently whilst
maintaining knowledge of their functioning.
The various brands that Nike owns under
their brand name are allowed individual
recognition. Such a strategy, although
difficult to handle, works wonders for a
brand’s image in a highly competitive
market.
Nike caters to the fashion needs of both the
ordinary as well as the athletes. Since the
products made by them severely fall under
the “athlete” name, Nike makes use of their
owned brands to cater to the needs of the
general public. In terms of brand hierarchy
therefore, Nike is a mix of corporate, family
and sub endorsed brands. Nike promotes the
brands it owns not under their parent name
but with the brand’s original identity itself.
Their connection to Converse, Cole Haan,
Umbro Ltd. etc. is well known although
Nike does not promote the said brands as
their subsidiaries. Therefore, there is also a
pertinent case of shadow endorsing in
Nike’s brand hierarchy.
Brand Equity Management:Brand equity
management is the process that enables a
company to generate revenues from a
product with a well-known and easily
recognizable name. It also enables a
company to compare their revenues along
with a similar brand (Wang et al., 2017). To
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analyze BEM for Apple Inc. and Nike, the
CBBE model has been used.
Developed by Kevin Lane Keller, a
marketing professor at the Tuck School of
Business at Dartmouth College; this model
mainly focuses on the consumeristic
approaches of brand equity management.
Figure 2: The Customer Based Brand
Equity Model
(Source: Hein and Bode, 2015)
Apple Inc.
Salience:In terms of brand equity, Apple
Inc. is the world’s second strongest
company. Apple Inc. recognizability is
amongst the best in the world.
Imagery and performance: Apple has the
best brand image and awareness in the
whole world. Among tech enthusiast, this
company is number 1 not just due to the
quality of its product but because of the way
their products fare in their day to day lives.
Most recently, Apple Inc. launched the
world’s thinnest laptop. Innovation of the
highest order is what prompts Apple Inc. to
hold such a strong position.
Judgements and feelings:The factor that
provides for such a high brand equity
however, is not tangible and something that
Apple consumers feel. According to Apple
users, the company has never fallen short on
quality, which is the main reason of such an
intimate relation amongst Apple and its
employees.
Resonance:As has been mentioned above,
Apple has the strongest of relationships with
their consumers. From time to time Apple
has shown their consumers that the products
this company develops are the most suitable
in their lives. They have never tried to prove
what makes them better; they have let the
consumers do that for them. A high
adaptability the constantly changing needs
of the tech savvy, has given Apple a very
consumer integrated image.
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Nike
Salience: Nike is considered to be one the
most well-known brands in the world. By
focusing their capital to increase the
knowledge about their brand, Nike has been
able to have a worldwide reach. Such a huge
consumer base has helped Nike in achieving
its current position.
Imagery and performance:Nike is not
considered just to be a sports brand but a
brand that inculcates the spirit of sports and
athleticism. Nike has always made use of
their brand image to endorse the value that
sports has in an individual’s life. Names like
Michael Jordan, Cristiano Ronaldo have
been associated with the brand which has
given it a huge boost in sales.
Judgements and feelings:By providing
customers value for money products which
have the utmost qualities, Nike establishes a
sense of loyalty amongst its consumers.
Future buying prospects are fanned by the
other two strategies. Nike users are known
to be one of the most loyal consumer bases
in the whole world.
Resonance: A high regard for their
consumers has always prompted Nike to
undertake only the highest forms of
innovation to deliver world class products.
As has been mentioned above, high
customer loyalty helps Nike maintain
competitive advantage. Apart from their
business aspects, Nike tries to focus heavily
on several CSR duties to make a better
environment for the future generations.
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LO3 Evaluate how brands are leveraged/extended over time domestically and
internationally
P4 Evaluate how brands are managed collaboratively and in partnership both at a
domestic and global level.
Extension Approaches and Strategies
Apple Inc.
1. Apple is known to create products that deliver an unmatched experienced. In managing
their domestic and international brands, Apple always justifies the general expensiveness
of their products through their benefits and features.
2. Apple never uses terms too difficult to understand for their domestic as well as their
international customers. Terms like display resolution are replaced with LED
backlighting and edge to edge glass (Shao et al., 2015).
3. In managing their brands, both collaboratively as well as partnerships, Apple has been
able to create one of the largest fan bases worldwide.
Nike
1. Nike is one of the largest brands that functions on an international basis. The most
important strategy that Nike have used to extend their brand is the theory of
communication. By improving their online presence as well as being very active on
different social media websites, Nike has created a “tribe” of their own.
2. Nike reaches out to its domestic and international communities through means of
enjoyable and fun advertisements. One of their YouTube series, Margot Vs Lily got more
than 80 million views worldwide (Grant, 2016).
3. Nike is a firm believer in selling an aspiration and not just a product. This enables them
to inspire people into buying the products of the various brands that they incorporate.
Reinforcement and Revitalization
Apple Inc.
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Apple Inc.’s strategy for reinforcing and revitalizing their brand has been simple and has laid
great emphasis on the company’s strengths. From time to time, Apple Inc has been known to
take the help of their lengthy product lines to reach out to a larger consumer base (Khan et al.,
2015). For example, when Apple newly launched their iPod, it increased the number of
subscriptions to iTunes as well. At the same time, the successive launches of the iPhone and the
iPad complemented the sales of each other.
Apart from this, Apple Inc is known to heavily rely on the word of mouth to emphasize their
brand’s strengths. A predetermined focus on R&D, along with a hugely successful marketing
department has helped Apple Inc. to stay in business when other similar companies have gone
bankrupt.
Nike
Unlike Apple Inc., Nike uses the medium of endorsements and connectivity to various major
sports events to reinforce their brand in the hugely competitive market. Sponsorships of large
football clubs such as Barcelona, Chelsea etc. enable Nike to uphold their brand to the entire
world (Adams, 2016).
At the same time, revitalizing their brand through innovative development is quite common to
Nike. For example, the introduction of the Fly Knit technology is considered to be revolutionary
in the field of sportswear. It uses 80% less water and is completely made out of recycled
materials; decreasing the pollution by almost 98% (Keller, 2016).
Apart from this, the most used strategy to reinforce their brand is the large number of
endorsements that Nike is prone to. They target the largest names in the field of athletics and
sports, which is essential in shaping consumer preferences.
Collaboration and Partnerships
Apple Inc.
As has been mentioned earlier, Apple Inc uses a corporate form of brand hierarchy. This means
that all their products promote the parent brand, i.e. Apple. However, in international measures,
Apple is known to acquire already functioning stores and convert them to premium outlets. As in
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the view of many experts, Apple’s form of collaboration is completely authoritative and does not
encompass any partnerships at all. Collaborating with their international outlets is not much of a
challenge because they always have some employees from the headquarters supervising and
maintaining records of all sales (Çifciet al., 2016).
Nike
Nike follows a corporate as well as family brand hierarchy. Collaborating with their overseas as
well as domestic partners is of utmost importance if Nike wishes to maintain strong relationships
with the same.
In terms of partnerships, Nike allows all its subsidiaries to function under independent names.
This allows Nike to be free of headaches from their day to day functioning (Hague, 2017).
However, this does not mean that Nike do not concern themselves with the profit margins of
these subsidiaries. In Nike’s view, their collaborations help consumers get their hands on a
number of products that would not have been possible if they only bought from Nike. At the
same time, Nike uses the theory of customer satisfaction when handling these partnerships. All
the brands under Nike are given access to the technology that the parent company uses.
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LO4 Evaluate techniques for measuring and managing brand value over time
P5 Evaluate different types of techniques for measuring and managing brand value using
specific organizational examples.
Cost based brand valuation:
This method of measuring a brand value takes into consideration the various costs incurred on
the company to promote and uphold their brands on a global basis. This method will take into
consideration all historical expenses as well and then determining their present value
(Borkovskyet al., 2017).
For both Apple Inc. and Nike, the cost based brand valuation is a significant tool for assessing
their brand’s worth. Both these brands have been known to advertise and endorse their products
on a global level. At the same time, since these two companies came into existence at almost the
financial situations, this method would also develop a clear relationship amongst the two.
Market based brand valuation:
This technique of measuring a brand’s value takes into consideration other similar companies
that have functioned in the same industry over the years. Doing so establishes a clear-cut
connection as to how the company has fared over the years as well as point out the main reasons
for success (Zenker, 2014).
Although Apple Inc. has developed quite a name for themselves, their industry is highly
competitive; just like in the case of Nike. In terms of competitors, Apple and Nike almost face
similar numbers and opposing force. Apple has left behind all of its competitors and now sits at
the top of the chain. However, Nike has started facing sterner competition from brands such as
Adidas, Puma, FILA, etc. Thus, using the technique of market based brand valuation, both these
companies can make out not only the strengths of their brand but their weaknesses as well.
Brand Equity Audit:
There are seven steps that are followed to implement a brand equity audit. They are:
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1. Creating a framework: Apple Inc. and Nike have to identify their consumers as well as
potential consumers in this step.
2. Customer feedback: Consumers are directly questioned so that authentic feedback
regarding their satisfaction levels can be obtained.
3. Web analytics Review: Both the companies have access to big data from their online
presence. Apple Inc. and Nike particularly lay great emphasis on its evaluation.
4. Social data review: Companies get a lot of feedbacks on various social media platforms.
Reviewing them is essential for customer integrated companies such as Apple Inc. and
Nike.
5. Review of sales data: Apart from implementation of strategies, sales is the only major
factor that determines a company’s success. Evaluating and understanding potential
patterns is of utmost importance.
6. Being well aware of competition: Nike and Apple Inc. are both lenders in their domains.
However, both these companies function with a high regard for their competitors which is
increasing by the day.
7. Implementing theories: Formulating theories is very important. However, to maintain
competitive advantages as well as sales growth will only happen if a company focuses on
implementing those theories. In the case of Apple Inc. and Nike, both of these companies
have done so very efficiently.
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Conclusion
This study has shed light on the various aspects of brand management, with primary emphasis on
the strategies and techniques used by two leading organizations of the world; Apple Inc. and
Nike. The study shall also act as a comparison amongst these two companies and help the reader
distinguish between them. This study has shown that investing on building one’s brand can be a
very beneficial process in the long-run, which will not only ensure sales growth but protect the
company from situations of crisis as well. The sources used to complete this study are highly
credible and 100% authentic. Any suggestions aimed at increasing the credibility of this study
are welcome.
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