Importance of Branding as a Marketing Tool

This document discusses the importance of branding as a marketing tool and its impact on attracting customers, increasing sales, and building trust. It explores the key components of a successful brand strategy, including brand loyalty, brand awareness, perceived quality, and brand association. The document also covers different strategies of portfolio management, brand hierarchy, and brand equity management.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1 .................................................................................................................................................3
P1 Importance of branding as a marketing tool .........................................................................3
P2 Key components of successful brand strategy ......................................................................6
LO2 .................................................................................................................................................8
P3 Different strategies of portfolio management, brand hierarchy and brand equity
management. ..............................................................................................................................8
LO3................................................................................................................................................10
P4 Brands are managed collaboratively and in partnership both at domestic and global level.
...................................................................................................................................................10
LO4................................................................................................................................................12
P5 Different types of techniques to measure and manage brand value.....................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
A brand is basically the identifying symbol, name, word, logo, sentence or the design
which distinguishes an organization from the other organizations. In short, brand is a way in
which an organization or a company is perceived by the end users and hence distinguishes the
products and services of organizations. Brand management is predominately the process for
managing the reputation of brand as well as enhancing perception of audience towards that
brand. Brand management is the effective manner through which organizations evaluate their
brand and hence improves the perception of audience.
Procter &Gamble is basically the American consumer goods organization being
established in the year 1837 by William Procter and James Gamble and headquartered in United
States. This organization mainly deals in wide variety of the personal care as well as hygiene
products and thus includes health care, grooming, home care, family care, baby care products.
The main aim of this report is to study the branding strategies of one of the well-known brand of
Procter & Gamble which is Ariel and thus evaluate their brand management process. Ariel is
primarily product line of Procter & Gamble and thus is line of the laundry detergents. It was
established in the year 1976 and is renowned brand of the Procter & Gamble.
This report gives a brief about importance of branding, components of branding strategy
for building brand equity, strategies in portfolio management and brand equity management,
ways in which brands are controlled collaboratively and types of strategies and techniques for
measuring brand value.
LO1
P1 Importance of branding as a marketing tool
Branding is a tool that help companies to attract customers easily towards their business.
Develop a unique image in minds of customers to increase overall sales of business. It help to
increase overall customers attention and maintain effectiveness of products & services(Brooks
and Anumudu, 2016). Large number of competitors are available in market and branding help
company to sustain their business in market. Branding change people perception towards a
business and help to increase awareness in minds of customers. Important to develop a

recognition for business in market. Procter & Gamble is an American multinational company
provide consumer goods. Variety of products provided by company like health, personal care
and hygiene products. Ariel is one of the most effective product in P&G that help company to
grab a market share and maintain position in market. Whereas P&G brand name help Ariel to
establish in market and attract customers.
Create awareness
Branding is important for every business it help to develop a presence in market, create
recognition and make people aware about new product and service. Awareness in customers
mind help company to increase sales(Anselmsson, 2017). Logo of a brand is important to make
an impression on customers. Large number of companies concentrated towards developing an
memorable and easy logo to make their customer understand easily. In context of P&G large
number of strong brands are incorporated with company and effective distribution channel of
companies make them attract people easily. Multi national product line and their presence over
180 countries help company to get a fantastic outcome from customers. Effective marketing
strategies of company for their product Ariel help them to stand strong in market.
Build trust
Recognition in market for product & service help company to create trust. Customers
want to purchase product from company that have positive image in market. Companies are
providing quality and healthy product to develop trust of customers. In context of P&G
companies healthy and personal care product help them to develop an image in mind of
customers. Overall brand name of P&G and quality services provided by Ariel help them to gain
trust and develop and identity in customers mind.
Increase value
Branding help company to sustain in market and important for future development of
business. Brand work as an asset for a business. In context of P&G company has its own brand
value in market which help to increase value for their product because of their name(Veloutsou
and Delgado-Ballester, 2018). Companies overall presence and all over the world and variety of
product with different features and specification to fulfill customers need help company to
increase value in market.
Create loyalty

Branding help to create loyalty of customers towards business. Proper marketing of
product and different offers are provided by companies to increase loyalty of customers. In
context of P&G companies product help them to engage customers easily and develop loyalty
which help company to spread message for business at a wide scale and attract new customers.
Feature and quality provided by P&G product make their customers unable to shift towards
another brand.
Inspire employees
Development of image in market for a business help them to motivate their employees
easily. Working with well established organization help an employee to maintain status in
market. Brand awareness help companies to make employees feel proud to work with an
organization. Increase employee satisfaction and they enjoy working with company. In context
of P&G companies presence in market and customers positive perception towards their product
help them to motivate employees easily(Moretta Tartaglione and et.al.,2019). Stable market
share for companies product help to employees to work effectively for success of business.
Generate new customers
Strong brand image help to maintain position for business and attract customers easily.
Overall impression of companies product and services on customer help them to attract easily.
Well established brand in market is able to get attention of customers easily. In context of P&G
companies variety of product help them to satisfy need of different type of customers. Satisfied
customers spread awareness about companies product and service that help to engage new
customers easily. Strong brand presence all over the globe help company them to attract
customers from everywhere and having a leading detergent powder help to grab attention of an
individual.
Increase sales
Branding create sales and help to increase profitability for a business. Using a brand
name and presence in marketing strategies help companies to increase sales of their product. In
context of P&G companies leading product Ariel help to increase overall sales of business.
Brand equity of P&G play an important role in increasing their sales because it own valuable
brands like Gillette, Tide, Duracell, pampers, pantene all are famous brand and increasing sales
of their company.
Develop product identity

Branding play an important role while developing an identity for a product in market.
Branding make it easy to recognize a product and memorable for customers(Steenkamp, 2017).
In context of P&G companies name and value help them to increase sales of each and every
product and develop overall identity in market. Companies unique logo on their product Ariel
and changes in wrappers and packaging of their product develop an identity.
Help business to expand
Branding help companies to expand and make it easy for them to attract customers easily
in new market. In context of P&G companies image help company to establish their business
easily overall image of brand help them to launch new product for their customers.
P2 Key components of successful brand strategy
Branding help business to meet its goals and maintain sustainability in market. Long term
strategy for business help to develop a strong brand. Brand strategy is important to understand
customer need and develop presence of business(Guillén and Rubio, 2019). In context of P&G
overall brand name at a global level help company to expand at a large scale. To prepare strategy
of branding Aaker model help P&G to develop business are as follows.
Aaker model
Brand equity help to develop value for a brand. Equity help companies to increase their
revenue and develop a goodwill in market. Maintain financial performance of an organization.
Model shows brand equity is a set of brand assets and liabilities that help to develop an image in
market.
Components
Brand Loyalty
Brand loyalty shows how much customers are loyal to particular product and brand.
Increase in loyalty of customers towards brand help companies to reduce marketing costs. Loyal
customers help companies to increase their revenue and profitability in market. Loyal customers
help company to advertise their services to new customers and engage them easily towards
organization products. In context of P&G quality services provided by their product Ariel help
them to engage customers easily(Kasemsap, 2018). Ariel remove tough stains from clothes
which help to engage household customers and build trust for product. Strong customer base
help to attract new customers. Loyalty of customers help company to develop marketing strategy

for their business. Loyalty make customers stick to brand and Ariel able to prepare strategy
against competitors. Customers loyalty make Ariel a leading company in detergent category all
over the globe.
Brand awareness
Identity of brand in market and extent to which customers know the product. Awareness
help company to make a position in customers mind and help to get into consideration when
customer plan to purchase product. Unique brand name, logo help to develop awareness for a
firm. Positive attitude of customers help company to spread awareness in market. In context of
P&G global presence help company to make their customers aware about their product. Strong
loyal customer base help Ariel to spread awareness about services provided by them and grab
attention of people(Heine and et.al.,2018). Growth in detergent market in developing countries
help company to develop their presence make customers aware. Quality services of P&G product
and regular innovation in their product help them to engage customers. Commitment of loyal
customers towards Ariel help to increase their sales.
Perceived quality
Quality of product provided to customers play an important role in increasing sales of
business. Company's provide different features in their product to maintain quality. Overall
differentiation from customers play an important role in quality of product and availability of
product in market increase perception of customers to get higher quality. In context of P&G
company's provide variety of quality product for health and personal care of an individual.
Company's quality detergent powder Ariel help people to remove tough stains and able to
develop a strong position in mind of customer(Flint, Signori and Golicic, 2016). Large number
of customers perceive prices as a quality indicator and low priced product provide by P&G help
to attract those customers. Competitive advantage for Ariel in market affect perception of
customers towards quality of their product.
Brand association
It shows an extent to which company is able to reach to their customers. Advertisement
over social media and Television help companies to attract customers easily towards brand.
Advertising play an important role to develop a perception of customers to buy a product.
Company's aim to create a positive attitude of customers towards product. In context of P&G
companies effective marketing strategy for their product help to attract customers easily. Ariel

strategic partnership with suppliers, dealers, retailers help company to grow in market. Range of
product categories are available in P&G that help in increasing association of customers with
business. Strong presence on online platform help organization increase sales of products.
LO2
P3 Different strategies of portfolio management, brand hierarchy and brand equity management.
Portfolio management
Brand portfolio means when large number of brands are working under a name of single
company or brand(Kernstock, Brexendorf and Powell, 2017). All brands under a individual firm
work to fulfill needs of different group of people. Portfolio help company to develop business
into different market and able to attract different group of customers. It help companies to launch
a new product in market easily. In context of P&G developing their business at a leading level
and develop new product with help of proper research over customers needs. Large number of
brand are working under name of P&G are Ariel, Gillette, Olay, pantene, Head & shoulders,
pampers working all over the globe in large number of countries. P&G provide products for each
and every group of people in different economies.
Models of brand portfolio
Branded house
Branded house means when a individual brand works with multiple products. Company
provide all their product under name of single brand. Branded house help to develop business at
a large scale. In context of P&G company has large number of brands incorporated under their
name every brand fulfill requirement of different group of people's. Every brand operate in
different industry of products. For example P&G brand like Head & shoulders, Olay, Pantene,
Gillette works under beauty segment of company. Develop brand for home care segment like
Ariel, Tide, Duracell.
House of Brands
When a company owns large number of different brands in the same category. In context
of P&G all brands incorporated with company have their different name an image in market but
work at a different platform(Kasemsap, 2018). It help company to cover a large number of target
market. Working at different sector help company to reduce risk, and make it easy for them to

develop at a global level. Company is able to provide different offers and products to different
group of target customers.
House blend
Company develop sub brands with one name of a parent brand. In context of P&G
company started with launch soap for personal care segment and after that company develop
business in different segment like healthcare product, skin care, grooming etc.
Brand Hierarchy
Large number of companies use name of product as their brand name which help them to
attract customers easily towards brand. It is also a strategy to display different names and nature
of brand to attract customers easily. In context of P&G Company give unique name to their
every brand it help company to engage customers easily and earn an advantage over competitors
in market(Flostrand, Pitt and Kietzmann, 2019). It help company to provide clarity in their
offering to their customers and help them to engage easily and attract towards their product.
Different brand of P&G able to get attention of customers appropriately. It help company to
reduce competition between own brands. It also make customers confuse about new product and
offering.
Brand equity management
Brand equity management system help companies to get information on time that help to
take important decisions when required. Organizations need to maintain their brand equity for
their sustainability in market. In context of P&G company provide different offers in their
product that help them to create value in market. For example P&G has large number of products
but Ariel help them to develop their brand equity at a large scale. Variety of products for
different groups of people provided by company help them to attract customers easily.
Companies quality services help them to maintain their brand image in market. Overall presence
with their large number of products and services help to increase brand awareness in different
economies(Casado-Molina and et.al.,2019). Increasing loyalty of customers help P&G to achieve
their goals easily and develop new strategies for business. Companies consistency to develop
quality product help them to engage customers easily.

LO3
P4 Brands are managed collaboratively and in partnership both at domestic and global level.
It shows collaboration and partnership with different companies help brands to develop
their business at a global level. Partnership help large number of brands to achieve goals and
objectives easily and require to improve effectiveness of products and services. In context of
P&G company's success largely depends on their global partners. Company maintain better
connectivity with external partners to bring innovation in their product and services. Partnership
play an important role in sustainability of company in market. Partnership with companies help
company to meet demand of their customers easily and able to grab a market share for expansion
of business at a large scale. Company has around 75,000 suppliers and agencies which help them
to reach customers easily(John and Torelli, 2017). P&G also get Award for external business
partner of year. Some of the global partners of P&G are Firmenich, Logoplaste, Novozymes.
P&G also develop global partnership for development of Humanity like in Philippines company
built 5 homes , and provide educational booklet to habitat families. Global partnership with
companies help P&G to get knowledge about new market which help them to promote their
business easily. Company is able to make proper use of resources in new economy which help in
their overall development at a large scale.
Strength
Strong customers base
P&G is a leading company in market for providing consumer goods which help them to
attract customers easily towards their product and services. Strong brand image of their product
and services help them to attract customers easily and effectively. Strong customer base in large
number of countries make it easy for them to get partner at global market.
Brand quality
P&G provide quality products to their customers to fulfill their needs. Companies product
Ariel help to remove tough stains and help company to build customers trust for their product.
Quality help them to attract customers easily and develop their business at a large scale.
Market share
P&G grab a large number of market share in providing consumer goods. Ariel become a
leading brand in on detergent category at a global level which help company to increase their
sales easily.

Provide option
P&G have a variety of products under name of their brand which help in overall success
of business. Variety of innovative product help them to satisfy their customers and engage them
easily. Companies product Ariel become a first fragrant detergent powder in market.
Efficient distribution network
P&G is working over large number of economies and efficient distribution channel help
them to reach customers easily(Iglesias, Ind and Alfaro, 2017). Company is able to develop
positive relation with their suppliers which help them to increase sales of their product.
Weakness
Imitable product
P&G provide quality and innovative product to their customers but also it become easy
for their competitors to develop substitute for their product easily. It provide choice to their
customers which make them to choose from different available options.
Limited online presence
Increasing online presence of retailers and they are moving towards e commerce
websites. Limited presence of P&G on online market make them unable to gain competitive
advantage over their competitors.
Stagnant growth
P&G is not getting fast growth towards their success due to decline in sales in market and
increase in competition reduce overall growth of P&g.
Management problems
Management team is unable to cope up with changes and maintain effectiveness of P&G
products and services. Facing problems from management team make company unable to take
important decision.
Competition
Competition from big domestic players reduces overall effectiveness of P&g products
and services(Pecot and De Barnier, 2017). Company is unable to maintain effectiveness of their
products and services. Quality products are provided by competitors reduces overall loyalty of
customers.

LO4
P5 Different types of techniques to measure and manage brand value
Brand value is important for sustainability of business in market and to achieve goals and
objectives easily. Brand value shows customers perception to invest in products and services.
Brand value is important for success of organization at a large scale and require to innovate
product and services and to develop new plans and strategies for success of business at a large
scale.
Customers feedback
It is an information provided by a client after using product and services of an
organization. It shows satisfaction and dissatisfaction of customers with organizations product
and services. Customers feedback is opinion and review of client towards their need. Large
number of companies take customers feedback as importance for success of organization at a
large scale. In context of P&G customer feedback help them to know require changes in their
product and help them to get information about products abilities to develop value for
organization in market(Wang and et.al.,2019). It help P&G to improve their product & services
after analyzing customer need and it increases sales of their product and develop overall brand
value. It help company to measure customer satisfaction for product. Overall feedback help
company to take important decision in future and require to improve customer experience with
organizations product.
Key performance indicator
KPI help companies to analyze effectiveness of company to achieve their objectives. KPI
help organization to reach their target easily. Focus on overall performance of business and each
and every department that help business to grow at a large scale. In context of P&G KPI help
company to communicate with their employees to know importance of goals and objectives.
P&G is able to monitor performance of employees for success of organization. As employee is
most important factor that help organizations to achieve goals easily and require to innovate and
maintain success of organization. KPI help companies to earn a competitive advantage over their
competitors.
Analyze competitors price
Competitors affect overall success of business at a large scale. Competitors make an
organization in effective towards their goal. In context of P&G company analyze their

competitors product and services which help them to establish their business at a large scale.
Analysis of competitors price help P&G to set prices of their product according to requirement
which help to increase overall value for their brand.
Consumer buying behavior
Consumer are important for success of business and companies need to analyze their
behavior and preference while purchasing a product and service. Buying behavior of consumer
changes by time. In context of P&G company need to analyze consumer behavior and their
buying habits for their product Ariel which help them to develop plans to increase brand value.
Which is require for overall success of business.
Local market analysis
Company needs to analyze market where they are developing business. Market analysis
help them to engage customers easily and improve effectiveness of their product and services. In
context of P&G company need to analyze retail shops where they sell their product to know
customers buying habits and their preference to buy organizations product and services.
Strong relation with suppliers
Large number of companies aim to make their suppliers happy and maintain positive
relation with them help in success of organization at a large scale. In context of P&G companies
aim to increase their sales by providing timely support to their suppliers. Good relation with
suppliers help them to get information about market which help company to develop future plan
for their business. Overall relation with suppliers help company to increase value for their brand.

CONCLUSION
It has been summarized that branding plays an important role for each and every
organization and thus an effective branding helps to achieve competitive advantage. An effective
brand helps to take the brand message to wider audience and thus leaves a great impression
within their minds as well as hearts. In making the brand strategy successful, a well-known
model which is Aaker model serve as one of the most important framework whose components
like brand perception, brand awareness etc help to design a great branding strategy. A successful
branding strategy helps in increasing customer engagement and hence provides a comprehensive
position in the market. There are various strategies in brand portfolio management like
understanding the brand roles, thinking long term helps to create a treasure of different brand
which will not only attract the customers but will drive the future growth of business. Besides
this, various strategies in brand hierarchy helps to increase awareness among customers for
brand. In order to take the brand at global level, it is highly important to manage each and every
brand effectively by collaborating with different firms at both domestic and international level.
This collaboration helps the organizations to reach wider audience and hence advertise the brand
at large platform. At the end, there are various techniques which helps the organizations to
measure the brand value like measuring the brand equity, calculating brand valuation etc. These
all helps to know that whether the brand is providing required value to customers or not.

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