Luxury Brand Management Strategies

This assignment delves into the intricacies of luxury brand management. It requires an analysis of key strategies employed by luxury brands to establish and enhance their brand equity. The discussion encompasses consumer perceptions of luxury, the role of experience in shaping brand value, and the challenges faced by luxury brands in today's marketplace. Students are expected to demonstrate a comprehensive understanding of theoretical frameworks and practical applications in the realm of luxury branding.

BRAND
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1 .....................................................................................................................................1
P1. Importance of branding and its management in the business practice.............................1
P2. Key elements of beneficial brand strategy for making brand equity...............................3
SECTION 2......................................................................................................................................5
P3. Different strategies related to portfolio management, brand hierarchy and equity
management............................................................................................................................5
P4 Management of brand collaboratively and in partnership.................................................8
P5. Various types of techniques for measuring and managing brand value...........................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Brand management can be defined as a procedure which helps in generating link between
the products and emotional perception of consumers. This will facilitate the reason creating
segregation in front of competitors as well as it helps in building loyal factor amongst customers.
This term refers to the role of promotional activities which can adopt unique tools for improving
sales and profit of particular company. This factor plays an important function to enable the price
of goods or services to grow and make loyal clients of brand. Brand management basically
facilitates constant strong position of particular brand in trends of market scenarios. There are
several aspects such as marketing, designing, planning, advertisements, etc. which may be
included in brand management (Ashworth and Kavaratzis, 2010.). This report is based on Pepsi
which is a carbonated soft drink manufactured by PepsiCo and originated in United States. It was
found in the year 1893 by Caleb Bradham and launched as Brad's drink which was renamed as
Pepsi-cola in 1898. Finally, in 1961, it was named as Pepsi. In this assignment, brand
management will discussed comparatively with examples of Pepsi and Coca-Cola including
importance of branding to increase productivity and profitability. Use of key elements for
making effective brand strategy and maintaining portfolio, brand hierarchy, brand equity like
various aspects by applying unique or innovative methods. Collaborations of brand is one of the
effective methods for calculating and managing brand values.
SECTION 1
P1. Importance of branding and its management in the business practice
Brand is not just a name but it is an identity of an organisation having unique logo, design
or snazzy strap-line which considers everything to help in creating its originality different from
others. This term can be generated through several aspects such as visual identity with logos or
websites, advertising or communication, goods and its packaging style, pricing, sponsorships,
partnerships, etc. It is necessary to manage a strong brand image because it impacts on all kinds
of products or services which are affiliated with the same brand. All loyal customers of particular
brand will automatically prefer new or current goods of the same. It will be benefited to
organisation whenever they need to introduce some new product in market then it will become
easy to grab market position for that in respect of brand image (Balmer, 2011).

Pepsi and Coca-Cola are the organisations which are manufacturing soft drinks from a
long time (Vigneron, and Johnson, 2017). Both these companies are competitors of each other as
they have to implement new ideas and thoughts for maintaining their brand image stronger. This
results in attracting new customers and retaining current ones. In today's scenario of market, it is
trendy or flexible that means tastes or preferences may change after short period of time. People
want themselves up to date regarding their life styles so that enterprises have to work on trends
to make their goods or services according to current fashion. Because brand image or goodwill
plays an important role to boost up sales and profitability of an organisation.
Improving recognition: - The organisation have to build their strong identity of brand
for retaining their clients for a long time through unique slogans, symbols, logos etc. They need
to maintain a connective association with their customers and that will results in increasing value
of the particular brand. Pepsi and coca cola may use this factor to manage its brand image in
market trends (Barrow and Mosley, 2011).
Branding creates trust factor: - Various enterprises have to put their efforts to build
assurance and belief for brand amongst customers which results in improving profitability and
productivity. Because if people trusts the brand then it will become quite easy for launching new
products and it can grab market very soon with reference of brand value. Pepsi and Coca-Cola
can also work on this aspect to maintain their goodwill to gain more profits. As both of the
companies attain good brand image and reputation in competitive market world with the help of
which they can easily influence the interest and behaviour of targeted customers.
Support on advertisement: - Generally, several organisations prefer the factor of
promotional activities or advertisements to conduct for creating a strong brand image in front of
customers. Pepsi and coca cola may apply this factor to improve their sales or profits
successfully. Following various promotional strategies such as TV ads, online advertisement etc.
help company in grabbing attention of customers towards their product. Hiring models,
Bollywood actresses for promoting their brand easily get attention of public.
Creates financial value: - Besides building brand image from beginning, it is necessary
to maintain the value of brand by applying certain techniques to retain goodwill or improve it to
gain effective or efficient position in front of competitors in market trends. Pepsi and Coca-Cola
have to implement this factor to boost up its market value amongst customers (Chauhan, and
Pillai, 2013).

This is essential to do branding of an organisation for differentiation of different goods or
services which help to generate a unique and better value of brand in front of clients. Difference
between brand and product is given as below:
Product Brand
 The product is an item which is ready
to sale to earn money.
 The brand distinguishes a product from
others in marketplace.
 It seems to be a need for a customer.  It seems to be a want or demand of a
client.
 It may be easily copied and produced
by manufacturers by their efforts of
working.
 It cannot be copied and produced by
customers by their faith or trust.
Hence, there is importance of branding by implementation of several useful factors which
can be applied by Pepsi and Coca-Cola to expand its brand value in the market.
P2. Key elements of beneficial brand strategy for making brand equity
Brand equity may be referred as the marketing component which determines value of
brand in market. This term generally depends on the perception of clients in respect of
experience of using particular brand goods or services. If there is high demand of a brand then it
is called as positive brand equity but if it will results in decreasing preferences of clients then it is
known as negative brand equity of particular organisation in marketplace. To build an effective
brand equity, it is mandatory to implement innovative strategies to fulfil the objectives (Du Preez
and Bendixen, 2015). Some of these aspects are as follows:
Target audience: - The products or services should be manufactured according to tastes
or preferences of consumers with respect to target audience. It is also needed to take care of
pricing strategies regarding budgets of target clients so that they will be able to afford the
products and purchase then easily. Pepsi and coca cola may work on this criteria for building its
brand equity successful in the market scenario. Therefore the customers who prefer to consume
cold drinks products are mostly targeted by company and in order to attract them the company
introduces new product to grab an attention of buyer towards their new product.

Brand promise: - The organisation always prefer promotional activities or
advertisements and making commitments of fulfilling various aspects regarding product though
them. So that it will become mandatory to provide all these features in goods as per
commitments in advertisements. Because it results in both negative and positive impacts on
goodwill of brand which confirms that Pepsi and Coca-Cola have to kept in mind this factor. The
company having good brand value ensures the customers to providie optimum quality products
which maximises the level of satisfaction of customers. (Song, Hur and Kim,2012).
Perception: - Enterprises need to monitor the views or thoughts of customers regarding
use of products of a particular brand. It helps them to about those factors on which they have put
efforts to boost up them as well. Sometimes, they can ask for suggestions to improve the features
or characteristics of goods and services provided to customers. Therefore the company first
analyse the perception and buying behaviour of targeted customers and accordingly implement
an effective and corrective actions in order to fulfil their actual requirements which also
maximises their level of satisfaction.
Brand positioning: - The organisation has to implement innovative strategies or policies
to make the brand image stronger which facilitates to attract target clients. Pepsi and coca cola
have to work on this aspect to maintain goodwill of its brand in market place (Gatti, Caruana and
Snehota, 2012).
Now, talking about useful elements of brand equity are given below:
 Brand awareness:- The organisations have to provide appropriate knowledge
about the products or services so that people can easily make decision of
purchasing. It will helps in making brand equity more effectively and efficiently.
 Perceived quality:- Both the enterprises need to put efforts for making better
quality of goods regarding wants or demands of target clients. This criteria will
facilitate improving of business value of organisations which may generate
beneficial or effective image in front of customers.
 Brand experience:- Pepsi and Coca-Cola have to observe and analyse views or
thoughts regarding satisfaction of products. They have to work on these aspects to
make the goods or services better to satisfy customers properly and effectively.
 Brand loyalty:- This term helps to cope up flexible trends of market as well as
features of new entrants. Because the loyal clients will always prefer their own

brand to purchase anything and they did not get affected by new introducing
products of various brands (Gromark and Melin, 2011).
SECTION 2
P3. Different strategies related to portfolio management, brand hierarchy and equity management
In an organisation, it is mandatory to work with several effective strategies to conduct all
the procedures in correct sequence. There are various kind of techniques which can be used by
organisations to maintain their portfolio more efficiently (Qian, 2014). Because it facilitates to
attain better profits and benefits. Strategies of portfolio management for making it more effective
are as follows:
Active portfolio strategy:- This kind of strategy is more beneficial as well as it bears high
levelled risk so that to grab or expand market share for a particular brand, these strategies are
applicable. And high risk will results to provide huge amount of profit as return of investment.
This will improve position of brand more strong in front of competitors at market situation
(Herstein and Zvilling, 2011).
Passive portfolio strategy:- This kind of techniques are having less risk factor as it is
obvious that it will results in limited benefits or profits for a particular brand as well. It seems to
be helpful for small enterprises according to their risk bearing efficiency. So that, they can
implement short term benefited policies to improve their brand by making small step towards
success of business. Large scale companies are not prefer this kind of methods generally.
Conclusively, Pepsi have well grabbed market and it can considers as larger scale firm so
that it can implement an active portfolio strategy to improve its market position. At the other
hand, Coca-cola have to prefer passive portfolio technique by making small profits step by step
by applying limited criteria according to its risk bearing capacity.
Brand hierarchy: Brand hierarchy helps to facilitates differentiation between their
products. It seems to be more necessary for Pepsi and coca-cola to do management of brand
hierarchy in proper way. So that managers and superiors can easily maintain brands more
effectively or efficiently.
Basis Pepsi-co Coca-cola
Corporate  This firm is providing  Similarly coca-cola is

soft-drinks with its
same name of product
and brand.
also provides soft
drinks same as Pepsi.
Umbrella  This refers to when a
firm is selling others
products without
highlighting their brand
name like Tropicana
juices.
 Similarly, this
enterprise is also
provides products same
as Tropicana.
Family  Several products which
are having different
brands include in
particular brand like P
& G products.
 This brand is also have
strategy of family
branding same as Pepsi.
Sub brand  Different Products of
same brand can be
included in sub
branding like
complimentary goods.
 Coca-cola is also
proving complimentary
to goods of its brand in
market.
Brand equity management: This term can be defines as positive aspect which can build
through attractive logos, slogans, trademarks etc. to boost up brand value. Brand equity may
helps in increasing profitability and productivity of organisation by making high reputation of
the company (Kam Fung and King, 2010). CBBE model is one of the beneficial brand equity
hypothesis which facilitates better expanding brand image in market amongst competitors. This
model is proposed by a thinker named Keller so that it may also known as Keller's brand equity
model and CBBE stands for ''Customer Based Equity Model''. It includes 6 stages for better
management of brand equity which should be implemented by Pepsi and coca-cola which are
given below:

(Source: Keller's Brand Equity Model, 2013)
 Salience:- It is important to provide information about products or services of both
organisations for people so that it facilitates awareness amongst customers. This factor
can be fulfilled easily by several methods of promotional activities and advertisements
through social websites etc. Performance:- Pepsi and coca-cola have to implement various innovative or unique
techniques or features in the enterprises to attract new clients and retain current
consumers as well (Kapferer, 2012). Imagery:- This refers to intangible assets of product affiliated with brand value in market
in front of customers and strong position amongst competitors. It can works as beneficial
factor results in attaining better profits. Judgement:- organisations have to work on view or perceptions of their clients about
goods or services provided in market. This helps in building positive perception and they
can easily retain their consumers. Pepsi and coca-cola have to work on this to gain more
profits and gain strong brand image. Feelings:- the firms need to take care of in tangible feelings or emotions of clients related
with products. This will helps in making decision easy to purchase anything for people.
 Resonance:- After making a very good image or value of a particular brand brand, it is
mandatory to maintain that by applying innovative strategies or policies.
Illustration 1: Keller's brand equity model

P4 Management of brand collaboratively and in partnership
In order to manage brand, it is necessary that consumers are aware from it. In order to ensure
sustainability in market, it is essential for the company to expand its product line and develop
products and services as per the needs and demands of customer in order to satisfy them. There
are various brands available in the market among which Coca Cola and Pepsi are well known
brands (Wallace, Buil and de Chernatony, 2014). They constantly add value in their products so
that customers are more attracted towards the brand.
Brand extension:
In order to bring trust and loyalty, big organisations use this strategy. This administers
chance to customers to get goods according to their needs. Generally, brand extensions are done
by firms for adding new feature in their brand and to compete in the market. It is important to
add something new in products on regular basis so that position of the company is maintained in
the market.
Both the brands, Coca Cola and Pepsi are well known by customers so, companies need
to formulate strategies according to the consumer culture. Both the firms are multinational and
offer its products worldwide. So, company needs to formulate strategies according to the needs
of customers. Pepsi and Coca Cola formulate strategies in order to get into new market and
maintain its position. Matrix are defined as follows:
Market development: In this strategy, firm try to capture untouched section of society.
Here, organisation try to gain opportunity and develop new goods and services for this section.
Market analysis is done in order to identify needs of customers. Proper analysis of market lowers
down the risk of product failure.
Diversification: This strategy is adopted by the firm in order to diversify its range of
products. There are various methods that can be adopted by firm in order to determine the next
added feature of product. Appropriate skills and enough funds are required in order to diversify
products (Zarantonello and Schmitt, , 2010).
Market penetration: It refers to successful selling of goods and services in a particular
market. It involves all those activities that utilized in order to increase market share of a specific
product. This can be done by comparing total sale of organisation to product sale. It assists in
generating higher sales of the company. Strategies are formulated in order to improve brand
image.

Product development: Introduction of new product into market with different features
that provides additional benefits to consumers. It may includes modification in existing product
or creation of entirely new product or service that satisfy needs and demands of customers. This
requires time as well as cost. It is necessary for the firm to develop products and services as per
the preferences and taste of consumers. Providing different flavour of cold drink product will
increase the number of buyers to purchase their product which generated huge sales revenue for
them. This help company in achieving growth and success for a longer period of time.
These strategies assists in growth and sustainability of the company. Above mentioned
strategies are used by both the organisations in order to determine market trends. This is assistive
in growth and expansion of the business concern and assists in increasing productivity and
profitability of the organisation (Keller's Brand Equity Model, 2013).
P5. Various types of techniques for measuring and managing brand value
In this era of competition there is an ever increasing race to gain and capture market
share. The companies have came up with various techniques and tools to measure their brand
value and also various ways to manage them. It has become necessary to cater to demands and
needs of consumers in order to gain their loyalty which will increase their brand value overtime.
There are various techniques and strategies which help company in gaining competitive
advantage Both coca cola and Pepsi are a well known brand in the beverage and food market and
it is very crucial for them to analyse and measure their brand values in order to efficiently
manage them (Kapferer, 2017).
Requirement for measuring brand value arises when :
 Brand value is quoted in financial statement of the company to catch investors it also
increases its reputation among its competitors and general people. It gives information to the company where it stands and how much it has to grow to
achieve their targeted sales or profitability. Brand value in the market is a key indicator of
the financial health of the company.
Evaluation of various methods used by coca cola and Pepsi are -:
There are various methods through which Coca-cola and Pepsi measures their brand
value in the market. Some of these techniques are discussed as follows :-
Qualitative technique : In this method instead of looking at quantitative figures the
quality of the product in the market and how it differs from its competitors, what are different

features it offers to the consumer and and consumer's loyalty towards that particular brand and
product are considered. It consist of experimental,Projective, Free association etc. The main
focus of company is to enhance quality of product in order to maximise the level of satisfaction
of customers.
Quantitative Technique : Under this, The brand is tested on the basis of numbers which
includes no. of units sold, revenue generated through that brand etc. (Keller, 2017). Various
kinds of scales used and are presented in the form of numerical presentation and the results are
measured in terms of numeric. This technique is concerned with quantitative value of the brand.
The company is more interested in knowing the amount of the brand value rather than the
qualitative characteristics.
Comparative technique : This method tries to analyse the effect of consumer perception
towards brand and their marketing programs. These methods measures outcome of company's
brand equity. This method also measures brand awareness and acceptability of the brand among
people. Companies uses such technique to frame policies for enhancement of its brand value.
The company can adopt various techniques which help them in gaining competitive advantage in
competitive market world. This will also help in attaining largest market share in competitive
environment.
For Coca-cola For Pepsi
The company has attained good brand image
and goodwill through which they can attain
large number of loyal customers. There are
various marketing strategies which need to be
adopted by company in order to capture largest
market share in competitive environment.
The methods which should be adopted by
Coca-cola are as follows:
Brand awareness: It includes qualitative
research process which help company in attain
good brand image and reputation in their
targeted customer's mind which directly help in
influencing the interest and buying behaviour
Pepsi is also one of the tough competitor of
Coca-cola who also engaged in offering cold
drinks to large n umber of customers. For the
last so many decades they are successfully
achieved trust of loyal customers. Through
their marketing strategies and plans they give
tough competition to their rivals and attain
huge market share.
The company also uses various techniques with
a motive of achieving competitive advantage.
Such techniques includes:
Brand Based Comparative approach:

of targeted customers to purchase their
company's product.
Using this approach, the company can able to
clearly analyse the interest and behaviour of
targeted customers towards the new product. It
guide and motivates company in developing
new ideas in introducing new product into
market in order to attract large number of
customers. For example Pepsi have offered so
many products of beverage such as 7UP,
Tropicana etc. by which they offered different
flavours to the customers.
Tracking Techniques and Brand Equity Audit:
Brand Audit is essentially required to be done by company in order to get their actual
brand image and goodwill in competitive market world. Therefore the company must required in
conducting Brand audit so that they can put their maximum efforts in gaining competitive
advantage and attain largest market share in competitive market world (Kunerth and Mosley,
2011).
Market context: With the help of this, both company such as Coca-cola and Pepsi are
able to identify the factors and components which influences and affect their brand image wither
in negative manner or positive manner. This help manager in implementing corrective actions
and measures to overcome such affected factors in order to maintain their reputed image in
competitive environment.
Strengths and weaknesses: Through this, companies can identify the market share they
captured in competitive market world. This will help manager in formulating an effective and
competitive strategy that help them in attaining brand image than their competitors.
Brand equity description: Through this, the companies determine the perception of
customers relating to their brand image and their expectations from them.
Competitive tactics and Strategies: Through this, the companies is required to conduct
audit which provides the clear views of Coca-cola and Pepsi company's tactics and strategies
related to gaining competitive advantage.

Brand Tracking: It is useful in measuring the brand development on the basis of attitude,
preferences, perceptions etc. of targeted customers. This will help company in identifying the
customer's requirements and buying behaviour so that they can put their efforts in maximising
their level of satisfaction (McDowell, 2011).
CONCLUSION
It has been concluded from the above report that the company should focus on building
their brand image and goodwill which help them in attracting large number of customers. For
company, it is essentially required to adopt various marketing strategies in order to achieve
growth and success for longer period of time. It is important for company to adopt various types
of techniques for managing and measuring brand value through which they identify their actual
position in competitive market. Brand extension strategies are also required for company to
follow in order to gain competitive advantage and capture largest market share in competitive
world.

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Online
Keller's Brand Equity Model. 2013. [Online]. Available Through:
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