Brand Management Report: Coca-Cola's Strategies in the UK Market

This report provides a comprehensive analysis of brand management, focusing on Coca-Cola as a case study. It begins with an introduction to brand management and its significance as a marketing tool, emphasizing the importance of building customer loyalty and a positive brand image. The report then delves into the key components of a successful brand strategy, including brand awareness, perceived quality, brand association, and brand loyalty, and discusses how these elements contribute to brand equity. The report also examines different strategies for portfolio management, brand hierarchy, and brand equity management. Furthermore, it explores how to manage a brand at both domestic and global levels, and various techniques for measuring brand value, concluding with a discussion of the challenges Coca-Cola faces in maintaining its brand image in the UK and global markets.

Brand management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Significance of branding as a marketing tool .......................................................................1
P2 Key components of a successful brand strategy and managing brand equity........................3
TASK 2............................................................................................................................................5
P3 Analyse different strategies of portfolio management, brand hierarchy and brand equity
management. ..............................................................................................................................5
TASK 3............................................................................................................................................9
P4 How to manage brand at domestic and global level .............................................................9
TASK 4..........................................................................................................................................11
P5 Different types of techniques to manage brand value..........................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................14

INTRODUCTION
Brand management is a process of managing, improving as well as upholding a brand so
as to attract maximum number of customers. In this over dynamic environment, it is fundamental
for every business organisation to manage its product or brand so as to obtain high competitive
edge. Brand management works marketing foundation which helps in raising sales and
profitability of the firm in a certain time period. It is all about capturing the niche market through
providing qualitative products and building trust among customers (Keller, Parameswaran and
Jacob, 2011). Branding helps in gaining customers' perceptions and mind set about goodies
which are offered by company. The present report is based upon Coca-cola it was founded in
1886. The firm has covered 40% market share in UK soft drinks industry. The vision statement
of Coca-cola is to bring to the world a portfolio of quality beverage brands which anticipate and
satisfy people's needs and desires. Apart from the report will be described the significance of
branding as a marketing tool. There will be discussion on key components which are liable for
successful brand strategy. Furthermore, managers have to use different strategies and policies for
brand equity management. Readers will also come to know about various techniques for
measuring brand value of the company.
TASK 1
P1 Significance of branding as a marketing tool
Before understanding the concept of brands, readers have to know about the core concept
of brand. A brand is more distinctive than a product; it is a set of added values which offers
functional as well as psychological benefits to company. For example- Coco-cola is most popular
brand in UK soft drink market. If the company lost every thing except the formula” and its
“Brand name” it could walk into any bank over the world and get $100 billion loan to start from
the scratch. Therefore, brand name also helps an organisation to over come from all future risks
and uncertainties (Kapferer, 2012). Apart from this, a brand also represents total of individuals'
perception towards company's services, advertising, reputation etc. When all these aspects will
together then any business entity can easily achieve its goals and objectives in an effective
manner.
A product is totally different from a brand, this differentiation can be seen through this
table: -
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Product Brand
Product is made in a factory A brand is bought by customer
A product can be copied A brand name is unique
A product can be quickly outdated, i.e. Mellow A successful brand is timeless, i.e. Coke Dite
Branding – Branding plays an important role in building customers' loyalty and creates a
positive image of business organisation. Coco-cola has an effective brand image in national as
well as international market, i.e. this is the main reason that this organisation has large number of
loyal customers. Beyond just a memorable logo, strong branding can raised the value of a
company; it renders motivation and direction to employees and acquiring new customers. On the
other hand the term brand management relates with designing, marketing, placement, advertising
and distribution which can foster a developing brand personality. “Brand management is a
complete management approach”. In other words, it is not only relates with customers
engagement but also managing all activities of a business organisation. Therefore, branding
implements, reinforces and increases experience of customers; it communicate firm's promises to
intended audiences (Hanna and Rowley, 2011). Beside this, marketing is used to promote a
brand's products. Basically, it is the way of reaching numerous customers. There is close relation
between marketing and branding because branding reinforces and marketing promotes.
Although, effective branding helps in managing healthy and positive relations with customers.
There are different types of brand: - Product and services – A tangible product and service is the most common thing which
is linked with a brand. More than one products are involved in a brand, an integrative
attribute will be present. For example- Coke is a brand but different Coca-cola beverages
is also a constitute brand. On the other hand, different services can also be a brand, i.e.
delivery of solutions in order to meet buyers needs. Individual person – People also can be brand on the basis of their personality, position,
charisma, influence etc. An individual's brand is also an expression of their natural
attributes; it can be an image that has deliberately created by him or her (Vigneron and
Johnson, 2017).
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 Organisation – A corporate association which provides differentiate products and
services can also be a brand. Along with this, employees' skills and qualities can also
develop brand image of the company. For example – Pepsi is the major rival of Coca-cola
and it has effective workforce, i.e. it is the main reason that Pepsi has strong brand image
in overall soft drink market of UK.
Importance of branding in emerged business practices: -
Although, branding plays a vital role in emerging business practices and helps company
to achieve its goals and objectives in an effective manner. Below mentioned the significance of
attractive branding for Coca-cola, such as-
Deliver messages clearly – The major benefit of branding as it aids in delivering correct
message of the company to its target and potential customers (Annie Jin, 2012). It acts as a
communication channel for company, because without expensive advertising managers cannot
deliver their message and could not build up a well designed brand.
Increases business credibility – Regular associated brand with effective quality products
put a huge impact on customers' mind set. If people will get attractive quality of products and
services then it improves firm's credibility overnight. In this perspective, business organisations
have to try to improve their brand and generate new and innovative products. Thus, it can be said
that branding is accessible in connecting customers to products which enhances sales and
profitability in a certain time period. Strong branding put a huge impact of customers' purchasing
power because they trusted on that particular brand or service.
Inspire employees – Sometimes staff members needs more than money which motivates
them to work in an organisation. If they work with a strong brand like Coca-cola; it inspire or
encourage them to retain for long term period within a company. It also helps people to
accomplish their career goals and objectives and they feel proud on themselves (Santos-Vijande
and et. al., 2013).
P2 Key components of a successful brand strategy and managing brand equity
The core concept of brand equity defines as brand value and this value is identify through
customer' perception as well as experience. If people have positive thinking about about a brand
then it generate strong brand equity. On the other hand, if a product disappoints or under-delivers
at the points where people ignores then it create negative brand equity. In order to maintain
higher brand equity it is essential for multinational companies improve the quality of their trades
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and produce something innovative which is able to bring more and more customers from target
market. Therefore, brand equity can be grow if business organisations, like Coca-cola have huge
customers' experiences.
Positive brand equity has value:
 Business entities can increase cost of a product with higher dealings of brand equity.
 Brand equity can transfer to product line extensions so that firms can make get higher
returns upon their brand (Gatti, Caruana and Snehota, 2012).
 It can also boost up a firm's stock prices.
There are describe several elements which are involved in brand equity, such as-
Brand awareness – It extent with a brand that is constituted as well as it is associated
with potential buyers. For instance- Coca-cola is the famous brand that is known by every one
across the world. The firm is located in almost countries except north Korea and Cuba, Coca; it
has product portfolio over 3600 brands. It also involves authenticity, customers' self belief and
consistent identity helps companies to achieve great position in target market.
Perceived quality – It can be defined with customers' perception towards the superiority
or quality of a product in respect of its deliberative purpose (Iglesias, Singh and Batista-Foguet,
2011). Coca-cola's brand personality impact on its market positioning. There are several people
who uses Coca-cola in their daily life. It is known as similarity between consumer and brand that
leads to a high degree of loyalty; it also put a huge impact of customers' purchasing power.
Brand association – Generally, brand associations are not benefited but these are images
and symbols which are linked with a brand. In addition, brand associations is anything which
sets in customers' mind towards a brand; it is something which generates positive image in
individual's mind. Along with this, brand associations are definite on the basis of these aspects,
such as- public relations, advertisements, publicity through word of mouth, quality, prices etc.
Brand loyalty – Coca-cola has strong brand loyalty. Coke has been never shy to make
changes and sometimes firm also reformed the designs of its cans. Even though, its logo has been
changing since past years, buts buyers are still loyal with Coca-cola.
But in this competitive era, there are several challenges that are being faced by Coca-cola
to manage its brand (Braun, Kavaratzis and Zenker, 2013). Due to globalisation and emerging
markets, many other coke companies has been entered in soft drinks which also affect the overall
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market share of Coca-cola. Below described different challenges which have faced by the
organisation to manage its brand, such are as follow: -
Low-calorie cola performance
Now these days, government and media over the world have concerns about obesity and
sugar content in soft drinks; it increases scrutiny. Although Coca-cola has produced calorie
drinks which are involved as top ranked brands. But sometimes, due to certain dynamics the firm
was forced to generate high calorie products, it put negative impact on brand image of the
company.
Building brand internally –
It is difficult for business organisations to achieve integrated marketing communications
or take a break from marketing without staff members because they known firm's vision and
care for it. The brand vision that lacks a higher purpose will find the inspiration challenge almost
impossible.
Emerging market performance
While Coca-cola prevails in emerging markets, there has increased market competition
from local as well as foreign rivals like Pepsi Co. is also trying to diversify and grow in same
regions. Therefore, it is hard to business organisation maintain their brand performance in
emerging market due to new entrants (Hanna and Rowley, 2013). In this competitive era, new
entrants are using new and innovative tools of production as well as marketing; they also
provides low cost products to customers so as to attain and retain them, for long term period.
Health and wellness trends
Coca-Cola has wide range of juice brands and drinking beverages which could be
winners in international market. But, it is essential for them to maintain health and wellness
trends while producing any product and service. These trends should be met with those angles
which are regulated by UK government.
TASK 2
P3 Strategies of portfolio management, brand hierarchy and brand equity management.
Brand Management is analysis and planning of how brand to be positioned in the market
or how is to be perceived in customer's mind. Brand Management depends upon various tangible
points which helps in creating brand image in eyes of target market that are price, packaging,
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logo of company tag line and how it looks itself. It is also includes some intangible points that
are experience of customer means what is feedback of customer negative, positive or highly
positive, and other one how much strong relationship brand created with its target segments.
According to Temporal, (2011) Brand equity management is a process of creation of
relationship between firm's product and emotional quotient of customer for making segregation
from competitors and to build loyalty among customers.
According to Sola, (2012) Brand equity management is maintaining enterprise's image,
brand loyalty, and a specific and recognizing position in market place which differentiates firm
from its competitors.
Brand Portfolio Strategy - When big business houses operates more than one brands,
products and services and its operations under one umbrella i.e. called Brand Portfolio. Brand
Portfolio means various brands offerings by single parent company for e.g. Coca cola. Coca cola
is a parent company and its sub-brands are Diet Coke, Maaza, ThumpsUp, Sprite, Minute Maid
juice etc. in soft drink, water bottle Kinley. Coca cola follows its very successful business
strategies that are as follows:
Driving Revenue and Profit Growth: main activity under this is to make product
affordable, increasing volumes and strengthen future success of specific brand for
accomplishment of this employee's tasks are clearly defined in which their incentives depend and
that should help in image building of business house.
Investment in Brand and Business: This association make their investments in brand
building by investing in advertisement, growth of branding, investment in fulfilling the
responsibilities associated with brands (Kunerth and Mosley, 2011).
More efficiency: Company is trying to create its servings more efficiently by improving
quality standards, price efficiency, cleanliness that attracts consumers more than its competitors.
Simplification of Company: Make sure to grab future opportunities coca coal simplifies
its operation and reshaped management by becoming more focused on better employees
experience, smoother functions of management, with brighter career options with lots of
learning, motivation and inspiration.
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Refocused on core business model: Coca cola shifted its focus toward its core business
model just to show that we are still on the concept which we deriving from starting or to
maintain Brand equity.
Illustration 1: Coca cola brand portfolio
(Source: Coca-Cola’s 20 Billion-Dollar Brands And Future Growth, 2017)
Management hierarchy
Coca cola:
 Umbrella Brand: it is also known as Family Branding. For selected company Coca cola
and Diet Coke is the Umbrella Brands which uses single name, logo and same pattern for
its marketing. They have no other variation in packaging apart from their taste and name.
 Products : analysing organization serves more than 100 brands approximately that are
Maaza, Powerade, Sprite, ThumsUp etc. packaged drinking water named Kinley. They all
are serving in the target market with their separate branding strategy and name of parent
company is written somewhere on its packages.
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 Endorsed Sub Brands: it means association of celebrities with brand to create brand value
or endorsing high profile events to make brand popular. For e.g. company have no
endorsement in UK.
PepsiCo:
 Umbrella Branding: Pepsi uses umbrella branding for its first drink named as
Pepsi itself. It is main product of Pepsico group which showed success to company. This
also named as Family Branding which is started initially in past time.
 Products: Pepsi serves in many different segments like in packaged drinking water it is
Aquafina, in juices range it is Tropicana, in Chips it is Lay's, Uncle Chips and in soft
drinks it is offering several products like Mountain Dew, Mirinda Diet Pepsi etc. and
Quaker Foods.
 Endorsed Brands: it is as to be understand that to create value or showing reliability of
brand equity for e.g. Britney Spears has been endorsed Pepsi's pink drink.
Brand Equity - It means responsibilities and promises associated with brands which
builds perception and creates brand value.
Consumer Based Brand Equity (CBBE model)
It is a model of managing brand equity propounded by Kevin Lane Keller, a marketing
professor. He entails that brand is all about how its customers feels and what are their perception
associated with brand. So before starting proper brand management company should shape the
concept how consumer feels and experience about product so that customers can make positive
thoughts, beliefs, opinions and perceptions (Asmussen and et. al., 2013).
Applying CBBE Model
Step: 1 Brand Identity: Make your brand different from competitors or generates its
identification.
Step2: Brand Meaning : It includes the concept that meaning of brand should be clearly
understandable and should not create any confusion in consumer's mind. It must be define brand
goal.
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Step3: Brand Response : How much customer taking your brand seriously and he shows
it by his thoughts, perceptions which results into purchases and more purchases means high
brand response.
Step 4: Brand Resonance - Meaning of this term is building image who stands product
apart from the competitive offerings and polishing brand which is able in creation or customer
loyalty.
TASK 3
P4 How to manage brand at domestic and global level
It is essential for every business organisation to manage their brand in an effective
manner at domestic as well as global level. The process helps them to achieve their goals and
objectives in a certain time scale. In order to manage its brand, Coca-cola and Pepsi Co. has used
several tools and techniques.
Brand extensions : It is one the popular strategy for leveraging brand equity. In this
context, companies can introduce their new products under famous brand name. For example-
Coca-cola sells its products through McDonald's. In this, companies assumes positive respond of
buyers because of the familiarity with that particular brand (Fayrene and Lee 2011).
(Source: COCA-COLA AND MCDONALD’S, 2017)
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Illustration 2: Collaboration of Coca-cola & McDonald's

Apart from this, Coca-cola has been collaborated with McDonald's. Both these are
leading brand and growing together since 1955; this collaboration helps each other in improving
their brand image and brand equity. Coca-cola sells its coke to McDonald's and it serve Coke
with burgers. Coca-Cola's relationship with McDonald's since 60 years with a common goal to
serve people highest quality products which they desire. However, it is a transactional
relationship - “we do so much more than just sell beverages to McDonald's”. Along with this,
both brand works together in several aspects to running a business activities, like marketing,
advertising, innovation, sustainability, operations, inclusion, diversity and so on. Both brands are
focus on well-being and happiness of consumers.
In order to manage their brand at international and domestic level, Coca cola and
McDonald's uses Ansoff Matrix, in order to gain high competitive edge. The matrix is classified
into four categories, such as - Market penetration – It is the safest quadrants among all these four. The major goal of
market penetration is to increase sales through existing products in current market. Coca-
cola company is utilised market penetration on an annual basis by building an association
among Christmas and Coca-cola, i.e. infamous Coca-cola Christmas advert. It helps
company in improving its sales during festival seasons. Market development – It entails determine a new group of customers for selling existing
products (Herstein and Zvilling, 2011). For example- in 2005 the company has launch
Coke Zero- the core concept was being identical towards Diet coke. It means to getting
greatest taste of Coca-cola with low calories and zero % sugar. Diversification – It relates to sell new products in new market. In 2007, Coca-cola
invested $4.1 billion in order to acquire Glaceau, it also involves health drink brand
Vitaminwater. Due to this new product, there was decline in sales of soft drinks.
 Product development – It includes generate new products for existing markets so as to
meet customers needs and wants more closely. For instance – in 1985, the firm was
launched Cherry Coke; it was the first expansion beyond its original recipe. Afterwards,
the strategy was prompted by small scale competitors to add Cherry flavoured syrup with
Coca-cola.
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