Brand Equity and Advertising Strategies

The provided document is an academic assignment that delves into the realm of brand management, focusing on brand equity, advertising strategies, and related concepts. It appears to be a collection of references and sources on the topic, with a mix of theoretical and practical aspects. The assignment likely requires students to analyze and apply the concepts discussed in the references to real-world scenarios or case studies, demonstrating their understanding of brand management principles. This document is likely intended for students in marketing or business-related programs.

BRAND
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
“BRAND IS POWER” ..........................................................................................................3
TASK 2............................................................................................................................................6
1. Organization's brand portfolio strtategy.............................................................................6
2. Illustration of hierarchy management of brands within organization's portfolio...............8
3. Strategies used for managing the equity of brand within the organization's portfolio.......9
TASK 3 .........................................................................................................................................10
1. Strengths of leveraged brand............................................................................................11
2. Weaknesses with possible suggestions to remove them...................................................11
3. Collaboration and partnership agreements.......................................................................12
TASK 4..........................................................................................................................................12
Various techniques for measuring and managing brand value.............................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
A brand refers to a name or identity of an entity that it uses to distinguish itself from
other companies. It is valuable for an organization as it has a specific price and has a major
contribution in revenue generation. Brand give identity to an entire corporate as well as to
individual product and service (Batey, 2015). These are protected from misuse by registering
them with government agency. Brand management is the process of managing tangible features
such as product itself, price, packaging etc. and intangible characteristics such as emotional
connections of customers with product/service. It is an activity of marketing in which various
techniques are used to increase perceived value of product line or brand over a span of time. The
chosen companies are Coco Cola and ZARA having their headquarters at United States and
Spain, respectively. The file covers importance of brand, brand portfolio strategy, evaluation of
strengths and weaknesses of a particular brand and evaluation of techniques used for measuring
and managing brand value.
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TASK 1
2

“BRAND IS POWER”
Introduction:
Brand is a logo, symbol, mark, name, word or graphic representations that companies
use to distinguish their product or service from others. According to Keller, a brand is “a name,
term, sign, symbol, or design, or a combination of them, intended to identify the goods and
services of seller or group of sellers and to differentiate them from those of competition.
Technically, whenever a marketer creates a new name, logo, or symbol for a new product, he or
she created a brand”.
Brand Equity is the total additional value a product gains from a recognised brand or
high level of brand awareness (Heding and et. al., 2015). The difference in price paid by a
consumer for a known brand over a generic version of same product is treated as brand equity.
Some of the benefits of branding are as follows:
 Recognition by customers.
 Customers remain loyal to brand along with shared values.
 Increase credibility.
 New talents get attracted to work in the company.
 Competitive advantage in the marketplace.
Stages of building a successful brand are as follows:
 Define target audience: The foremost step is to analyse and define the customers that
are to targeted for selling the products and services.
 Brand mission: The management of the company shall prepare a mission statement for
short- term and long-term goals.
 Market research and study: Company conduct market research to know about the
existing competition, strengths and values of their brand and target customers.
 Create value proposition: A company should provide products that are unique and
distinct in nature from offerings of the rivals together with the fact about the choices of
customers.
 Brand guidelines: It will be an integration of various brand strategies, visual elements
etc. of the brand (Aaker and Biel, 2013).
 Creation of brand logo: In this stage, entity create a logo, tagline, mascot, fonts etc. in
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way that will attract customers.
 Formulation of brand's voice: The tone of the voice will be decided in this stage
which can be friendly, authoritative, technical, service-oriented, promotional,
informative etc.
 Market the brand: After following and completing all the above steps, the brand
manager will participate in various promotional and marketing events to aware the
customers about product/service.
ROLE OF MARKETING DEPARTMENT :
Marketing department has a vital role to play in promoting the brand to huge number of
public. The advertising activities done by it increases the brand awareness which impact the
company operations and sales in a positive way. The role of marketing in creating brand equity
are as follows:
 Defining and managing the brand.
 Management of conducting various marketing initiatives.
 Development of marketing and promotional plan.
 Monitoring the whole process and taking corrective steps to improve the results.
 Managing internal communications of employees.
 Conducting customer and market research.
 Maintaining cordial relationship with vendors and agencies.
Main Body:
Cadbury is a British confectionery company operating in multiple countries owned by
Mondelez International. The headquarters of it is located in Uxbridge, London, England. It has
been stable even in cut throat competition. People have claimed to found worms in Cadbury's
chocolates (Keller and Brexendorf, 2017). It was found that these all happened due to poor
storage facilities at the stores. However, it raised questioned about the packaging because a
worm can not get into the package unless and until it has been packed properly.This is still
discussed by the people. The outcome of this has destroyed its huge brand image which affected
its sales in a very negative way.
Strengthening brand equity: Brand equity is the financial benefits that a company gets
by charging premium prices for its products on the basis of its brand image. Company can
implement various strategies to strengthen its brand such as loyal to the extreme possible extent
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to provide products that have been mentioned in brand statement, by maintaining consistency in
the work which shows the dedication of delivering the needs of the customers (Dolbec and
Chebat, 2013).
Brand extension refers to using an already famous or established name in new product
line. It is not compulsory that expansion will be of same products, it can have different products
as well. It is assumed that new products will improve brand image by lowering the risks and
providing category opportunities. To restore the lost brand name, Cadbury introduced many
new items in its existing product lines of chocolates such as Cadbury selection box and & teas
towel, easter egg, Cadbury Bournville, drinking chocolate, biscuits, jelly candies, wine gums,
toffees and many more. One of the reason for brand extension is to shift the attention of public
from the incident that destroyed it brand position in the market.
Brand reinforcement is an activity to maintain brand equity by making the customers
buy products of a particular brand on a repetitive basis together with attracting new consumer. It
is an effort to keep the existing brand alive in the market. The hot selling product of Cadbury is
chocolate. These are purchased on a repetitive basis due to authentic taste and quality it
provides.
Brand revitalisation is a strategy of marketing department to bring back the brand
equity of that product whose brand image has been ruined. Customers are made aware about the
product with improved quality and added benefits. To gain the lost brand image, Cadbury
launched Public Relations program with an initiative towards education (Carah, 2014).
Together with this, it upgraded its packaging to double layer along with heat-sealed covered
aluminium foil.
Conclusion:
Brand and brand equity are two important things that an entity should work towards to
retain its position in the market and customers. It increases goodwill and market share if used as
a marketing tool. Branding when used as a marketing tool has the following importance:
 Customer's preferences for a particular product is increased.
 Increases revenues and market share.
 Company can sustain its position during crisis.
 Number of competition is reduced.
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 Increase employee productivity through good performance.
 Negotiation power with suppliers is increased.
 Decline in employee turnover.
Moreover a company can use Aaker Brand Equity Model to increase brand value. It
includes:
 Brand Loyalty: Cadbury always had a strong brand position in market. When this
accident happened, the brand position was affected but the impact did not last for a long
time. Hence, it took initiative to attract more customers (Buil and et. al., 2013).
 Brand Awareness: To reduce the negative effect caused to its brand, it conducted
customer relationship programs.
 Perceived Quality: After this incident, Cadbury have started selling chocolates packed
in aluminium to provide double protection. Also, it introduced chocolates having
almonds and raisins as its ingredients.
 Brand Associations: Cadbury used TV advertisement as a way to give information
about new features that it had added.
 Other proprietary: Cadbury patented its authentic taste along with new taste in used in
different flavours.
These all contributes to create value for both corporate and consumers. These have their
individual advantage and add in overall image of a company which helps it in achieving its
objectives.
TASK 2
1. Organization's brand portfolio strtategy
Brand portfolio refers to a collection of many brands under which all the brands or
brand line are controlled by a company. These contain products that will fulfil customer's
different needs. In nutshell, a brand portfolio has all the brands offered by a single entity to meet
different demands of group of people.
Brand Portfolio strategy is a framework for a company to use all its different brands
and branding to increase profitability along with sustainability. This help companies to
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understand and prepare optimal brand structure by categorising sub-brands, endorser brands and
branded services or ingredients (Keller, 2014).
There are various models which can be used by Coca Cola, which are as follows:
 House of brands: Under this model, a company gives individual brand name to different
products in the category. For example soft drinks of Coca Cola have been given name as
Coke, Zero-sugar Coke, Diet Coke etc.
 Branded House: In this model, firm has only one brand name for all products. For
example, all the brands of Coco Cola have name of the corporate i.e. Coca Cola.
 House of blend: Under this, a firm introduces sub-brands with added features in the
existing main brand. For example, Coca Cola introduced flavoured juice, vitamin water,
minute maid etc.
To analyse brand portfolio strategy, Coca Cola has been chosen. Coca Cola is an
American company providing carbonated soft drink. The headquarters are located in United
States. Brand portfolio strategy of Coca Cola are as follows:
 It has introduced Zero-sugar soft drink in 20 markets by revamping its packaging. This
showed positive results in terms of revenue growth. Along with this, it introduced ready-
to-drink-tea and coffee by looking at organic demand of customers.
 The launch of ready-to-drink tea at global level has increased its growth, at a steady rate
in all European counties.
 Further, it has introduced Ginger Lime, Feisty Cherry, Zesty Blood orange and Twisted
Mango by keeping millennial generation in mind. This shown positive results and have
been liked by majority of customers.
 Diet drinks have also been added with a view to capture the market of people who are
conscious for their health. However, company did not change the authentic taste of Coca
Cola, but just reduced the quantity of sugar.
2. Illustration of hierarchy management of brands within organization's portfolio
Brand hierarchy is an approach where branding strategy are portrayed in a graphical way
showing all the common and distinctive brand elements across firm's products (Brand portfolio
strategy and brand architecture, 2018.). In other context, it means that a product can be branded
in a totally new and different way. Brand hierarchy of Coco Cola is mentioned below:
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Corporate Brand: Under this, all the products have the name of the company or its
subsidiary. It is mentioned on the packaging or product. Soft drinks such as Fanta, Sprite, Del
Vella, Diet Coke ets. All have the name Coco Cola mentioned on their packaging.
Family brand: A brand may represent more than one product in the category and people
recognize the goods from their individual name instead of the company manufacturing them.
Coco Cola have many products which are sold such as lemonmaid, chips etc (Herrero and et. al.,
2017).
Individual brand: It is defined as a brand that has limited to one product line or category
although it may be used for several different product types within the category. For instance,
Coco Cola has many products to offer such as chips, flavoured drink which are sold under their
separate and individual name. It makes it easy for company to aware customer about each brand.
Modifier: These have products which will fulfil each and every consumer's demand.
Since, demands and needs of each individual is different, and a company like Coco Cola can not
afford to lose its customers. Coco Cola has launched diet coke and zero sugar drink by
considering growing demand of healthy food and drinks.
Product Descriptor: More than one product may be sold under same brand name but has
composition of elements that are different ingredients. A detail description of all those elements
are mentioned on the label and customer can read and decide to buy the item or not. This
provides a solid base to fight the cut-throat competition by being specific in order to meet
customer's requirement. Coca Cola has introduced zero sugar diet in order to sell it to more and
more customers to retain it position.
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Figure: 1 Brand Hierarchy of Coca Cola
3. Strategies used for managing the equity of brand within the organization's portfolio
Brand equity of a company should be managed in according to change the direction of
portfolio. Managing brand equity means formulating and implementing various strategies for
maintaining brand image in the market (Keller, 2012). A company should change its brand
according to the need and business environment to sustain competitiveness. Coco Cola has many
competitors such as Pepsi co, Gatorade, Dr. Pepper etc., therefore, these companies implement
policies and strategies to maintain their brand equity. The strategies that a company can follow:
Continuous Differentiation: Under this, the foundation of brands should be modified on
a continuous basis in order to keep the product alive and sustain in tough business changing
scenario. This is done to increase customer's satisfaction. Coca Cola introduced Fanta, Sprite etc.
to meet demand for children and recently, it has started manufacturing diet coke to fulfil
requirements of customers who wants to switch to more healthy option.
Continuous Expansion: A brand should be expanded. It may be by adding more items in
a particular product line or expansion can be done geographically. This increases the number of
customers as, they prefer variety that company which provides variety of products in a single
category. Coco Cola has expanded its in many major countries to increase its presence and
dominate in soft drink industry.
Building Brand Awareness: A company like Coco Cola thrive to retain its position in
the market by launching new products to attract large number of customers. So, to achieve this
objective, it is necessary to conduct initiatives and advertises new product and make the brand
famous. This helps in maintaining brand equity for a very long time. Coco Cola invest huge
money of awareness advertisement (Shah, 2015). Also, many actress and actors endorse its
products, as it a basic perception that customers buy more products when they see their favourite
ones using it.
Coca Cola can use Keller's Model to manage the equity of brands and increase its value.
The model has been discussed below:
 Identity: Coca Cola produces products that can be sold to all category of people. So, it
sells products that is affordable.
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 Meaning: It uses a taste that is liked by its customers, thus, its increases customer
satisfaction. Also, the shape of bottle has been changed over the years to make it
attractive.
 Response: It has maintained its quality by using ingredients that are less harmful for
human body.
 Resonance: Coca Cola make sure that all its products are purchased by customers.
TASK 3
Brand leverage is a procedure, approach or strategy through which an entity utilises
power of an already established brand name to support a company's entry into a new but related
product line or category. Information about the newly launched product is communicated to
consumer. It increases customer's satisfaction along with more sales. Furthermore, it is useful for
those companies who have plans to remain in the industry for long span of time. Coco Cola is a
famous and strong brand name in the industry so a company uses this name whenever it launches
a product in the market (Hsu and et. al., 2013). This has a positive impact on overall sales and
profitability.
Brand leverage offers many benefits to an organization such as strong brand leverage
provides instant recognition to the brand, competitive advantage, more opportunities for sales,
reduction is cost, improved efficiency in manufacturing services and facilities, positive brand
impact on new product category etc (Abrahams, 2016). If Coco Cola uses brand leverage as a
strategy then it can increase its sales and profits. It can be done in two ways which have been
discussed below:
Line Extension Brand Extension
Line extension means using the name of a
successful product brand name for launching a
new item in same product category. Coco Cola
launched Diet Coke and Zero Sugar Coke
under its brand name is an example of this
strategy.
Brand extension is a strategy to introduce an
entirely different and new product by linking
its name with existing brand name. It speed up
the expansion of a business. Coco Cola have
chips, and other drink such as fanta, sprite etc.
Under this, variety of products are launched
with added features in existing and same
A company expand its business by adding new
products in order to capture more market share.
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category of products. These are to fulfil the
different demands of consumers and to
increase customer satisfaction.
It is for long term existence and remain
competitive advantage.
The level of risks is lower and also cost
involved in lower as compared to brand
extension. The reason being, only certain new
features are added in order to create a new
unique item.
This involves production of completely new
and different product. Due to which the risk of
failure and costs is high.
The brand that is liked by everyone and is one of the favourite brand is Diet Coke. Its
strengths and weaknesses are as follows:
1. Strengths of leveraged brand
 Coco Cola has launched Diet Coke in order to meet demands and requirements customers
who are looking for authentic taste of Coca Cola but with less harmful elements.
Increased customer satisfaction is provided by the organization.
 It uses no sugar, hence, safe for diabetic and health conscious people.
 The distribution of this brand is smooth due to which it is easily available in all the stores.
2. Weaknesses with possible suggestions to remove them
 Since diet coke is an aerated drink, people who are health conscious will prefer other
drink of rival brands of Coca Cola.
The suggestions that could be followed and implemented in order to overcome the above
specified weaknesses are as follows:
 A wide market research should be conducted to get the precise knowledge about demands
and requirements of people across UK.
 Price should be which the majority of customers are willing to pay.
 Coco Cola should implement strategies that attracts customers to buy Diet Coke.
3. Collaboration and partnership agreements
Collaboration agreements are entered between two researchers engaged in research and
technical nature work. On the other hand, partnership agreements are entered between partners
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who have mutual interests to carry business and make profits (Balmer, 2012). Coca Cola has
collaborated with Stussy, New Era, Bounty Hunter and with other brands to make t shirts having
Coca Cola bottles image on t-shirts, hats, cushion and outerwear.
These are important for a business as it provides ocean of opportunities which can
provide desired positive results. Coco Cola may enter into these agreements with companies that
will help it creating synergy. For instance, Coco Cola may enter into an collaboration agreement
with a company who conduct research for new innovation that may benefit it. Further,
partnership agreements can be entered by Coco Cola with its competitors or emerging company
in order to have more market share and increase number of customers. Since, these are directed
towards making the brand image of Coco Cola strong. Before, entering into such agreements, it
should conduct a diligence examination in order to ascertain the viability of such agreements.
TASK 4
Various techniques for measuring and managing brand value
Brand value: It is refers to net present value of estimated future cash flows that a
company earns from its brand. It is an intangible asset and represent the goodwill and reputation
of an entity. It is crucial for the success of a company. A corporate with high brand value is often
considered to competitive which is necessary to survive with changes in external environment.
The chosen company for this is ZARA. Brand value affect the sales and probability. It can
impact both in negative and positive ways. It is calculated through the customer loyalty and
employee turnover. ZARA is a huge brand to make products which will provide satisfaction to
customers, but it should also need to analyse and make changes to retain the brand image and
market position. ZARA provides quality goods which have prices higher than other apparel
brands. It is because of its brand value and customers prefer its products because not everyone
can buy it and is considered a status symbol for consumers.
Brand awareness: It shows degree that shows awareness of a brand and sub-branded
products in the minds of consumers (Dessart and et. al., 2015). Marketing department takes
initiatives to make customers familiar with new products to increase sales and profits. It allows
an organization to compete its competitors and differentiate itself from other products that are
being offered by entities operating in the same industry. ZARA is famous for offering products
that are made of supreme quality. ZARA targets people belonging to upper and high class and
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thereby, set the price which these people are willing to pay. It operates in multiple countries to
meet diverse customers' demands (Qian, 2014). Every economy has different forces operating in
external as well as internal environment. Therefore, ZARA has to make modification in its
policies and strategies to remain a leading company in globalised context. To maintain the strong
brand image, it should do more and more advertisement by using various modes such as digital,
social media, bill boards, hoarding etc.
Market share: Entity's percentage in respect to industry's total sales. It is calculated as
the product of the firm's sales over the industry's sales for a specified period. Sales and profits
greatly depend on market share (Hutter and et. al., 2013). A company with huge market share is
considered to a financially sound company also its brand image is strong in the market, it is
operating. ZARA has huge market share as compared to any other brand in UK. It can use its
brand name to introduce a new product and it will easy for people to recognize the brand due to
this factor. Along with this, ZARA should analyse the market share of its competitors to
implement approaches and strategies for increasing customer satisfaction. This will help it gain a
competitive advantage which ultimately increase its sales and profits.
Consumer attitude: These refers to the inner feeling of a customer which has formed
for a product and it may be both positive or negative. The opinions formed towards a particular
brand affects the business of a company greatly. These are very important and should be
considered for making the products better and increase customer satisfaction. ZARA is
recognised for the quality it provides in clothes. The consumer's attitude is based on this only.
ZARA should maintain the consistency to increase satisfaction of customer. However, a
consumer when paying for ZARA's product expect apparel to be comfortable, good, and value
for money. Hence, it should make alterations to improve its product quality. If ZARA fails to
stand the expectation people, then it will leave a negative impact on its brand image and there
will be a shift in consumer's behaviour and attitude. Hence, managers of ZARA should make
strategies that creating a strong brand image which will make it competitive.
Purchasing intent: It refers to the chances about the customer will buy a product.
Companies use various models to analyse and identify future outcomes on the basis of historical
data. Organization extract information from different sources and combine all of them to
evaluate purchase intention. This also, states the effectiveness of various initiatives and strategies
adopted by company. The scale at which ZARA is operating is huge and is therefore, important
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for to analyse purchasing intention on a regular basis. ZARA is not much into advertising but its
uses selected magazines to make people aware about its products. The reason is that, it target
people belonging to upper class and the people of this category read such magazines. ZARA can
use new methods to improve its quality product (Rageh Ismail and Spinelli, 2012). Further, it
should conduct online feedback for all those who are visiting its sites to know their opinions and
comments about the apparel it is selling. This will provide it a clear way to manufacture products
according to needs and demands. This will save the costs that is attributed to production as
wastage. Also, it will affect the sales in positive way since sales returns will be low.
ZARA can measured and managed each techniques in the following way:
Brand value: The chosen company for this is ZARA. Brand value affect the sales and
probability. It can impact both in negative and positive ways. It is calculated through the
customer loyalty and employee turnover. ZARA is a huge brand to make products which will
provide satisfaction to customers, but it should also need to analyse and make changes to retain
the brand image and market position. ZARA provides quality goods which have prices higher
than other apparel brands. It is because of its brand value and customers prefer its products
because not everyone can buy it and is considered a status symbol for consumers.
Brand Awareness: ZARA is famous for offering products that are made of supreme
quality. ZARA targets people belonging to upper and high class and thereby, set the price which
these people are willing to pay. It operates in multiple countries to meet diverse customers'
demands (Qian, 2014). Every economy has different forces operating in external as well as
internal environment. Therefore, ZARA has to make modification in its policies and strategies to
remain a leading company in globalised context. To maintain the strong brand image, it should
do more and more advertisement by using various modes such as digital, social media, bill
boards, hoarding etc.
Market Share: ZARA has huge market share as compared to any other brand in UK. It
can use its brand name to introduce a new product and it will easy for people to recognize the
brand due to this factor. Along with this, ZARA should analyse the market share of its
competitors to implement approaches and strategies for increasing customer satisfaction. This
will help it gain a competitive advantage which ultimately increase its sales and profits.
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Customer Attitude: ZARA is recognised for the quality it provides in clothes. The
consumer's attitude is based on this only. ZARA should maintain the consistency to increase
satisfaction of customer. However, a consumer when paying for ZARA's product expect apparel
to be comfortable, good, and value for money. Hence, it should make alterations to improve its
product quality. If ZARA fails to stand the expectation people, then it will leave a negative
impact on its brand image and there will be a shift in consumer's behaviour and attitude. Hence,
managers of ZARA should make strategies that creating a strong brand image which will make it
competitive.
Purchasing intent: The scale at which ZARA is operating is huge and is therefore,
important for to analyse purchasing intention on a regular basis. ZARA is not much into
advertising but its uses selected magazines to make people aware about its products. The reason
is that, it target people belonging to upper class and the people of this category read such
magazines. ZARA can use new methods to improve its quality product (Rageh Ismail and
Spinelli, 2012). Further, it should conduct online feedback for all those who are visiting its sites
to know their opinions and comments about the apparel it is selling. This will provide it a clear
way to manufacture products according to needs and demands. This will save the costs that is
attributed to production as wastage. Also, it will affect the sales in positive way since sales
returns will be low.
CONCLUSION
From the above report, it has been concluded that brand is very crucial to the success of
an organization. It is a valuable assets which intangible in nature but there is a value of it.
Entities should implement strategies to improve its brand image and equity. Further, there are
various theories that can be used to such as Aeker brand equity model to increase its value.
Further, marketing department has a very important role to play for increasing brand awareness
and image. Companies should analyse and understand portfolio and brand hierarchy before
introducing a new product. Further, brand leverage should be made strong and company should
understand behaviour of customers and their choices. This will have positive impact on its profits
and sales.
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Online:
Brand portfolio strategy and brand architecture. 2018. [Online]. Available through:
<https://www.tandfonline.com/doi/full/10.1080/23311975.2018.1483465>.
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