Importance of Branding and Key Components of Successful Brand Strategy

This report discusses the importance of branding as a marketing tool and explores the key components of a successful brand strategy. It also analyzes different strategies of portfolio management, brand hierarchy, and brand equity management. Additionally, it evaluates techniques for measuring and managing brand value.

Brand Management

TABLE OF CONTENTS
LO1.................................................................................................................................................................................3
P1 Importance of branding .......................................................................................................................................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. Brand managed collaboratively and in partnership at domestic and global level.............................................10
LO4...............................................................................................................................................................................12
P5. Evaluate different types of techniques for measuring and managing brand value using specific organisational
examples..................................................................................................................................................................12
CONCLUSION.............................................................................................................................................................15
REFERENCES..............................................................................................................................................................16

INTRODUCTION
Brand management refer to all such activities that increase sales of the product or it is
marketing techniques that induces customer to purchase over other competitor product. In this
report Apple Company has been taken that have strong brand image of iPhone in the market.
Apple Inc. is American Technology Company operating its business worldwide and it sells,
design and develop consumer electronic and computer software. This report explains the
importance of branding as a marketing tool and various model, theories and frameworks are used
in development and maintenance of successful brand image. It also discusses the key
components of successful brand strategy for building and managing brand equity in an
organization. The report analysis different strategies of portfolio management, brand hierarchy
and brand equity using theories, models and frameworks. This report also evaluates the way
brand is managed collaboratively and in partnership both at domestic and international level. At
last, this report evaluates different types of techniques for measuring and managing brand value
to build strong and enduring brand of the company.
MAIN BODY
LO1
P1 Importance of branding
Brand image change the way customer perceives the company thus impact the company
market position, its sales and profit margin of the company. Strong brand image help the
company in successful expansion of its business and in generation of new prospects or customer
(Pitt Napoli and Van Der Merwe, 2017). Thus, strong brand image plays an important role in
increasing its sales, profit margin and in gaining customer loyalty.
Increase value of Business: Strong brand image open many future opportunities for the
company to expand its business. Company can easily market its new product in the existing as
well as in new market with the use of company brand image. Thus, Brand helps in expansion and
growth of company by promotion of product in existing as well as in new market.
New customer: Strong brand image not only cater the needs of present customer but generate
future prospective or add new customer for the business (Åsberg, 2018). Apple is able to
effectively promote its product through strong brand image and customer satisfaction. Thus,

strong brand image is one of the effectively tool of marketing to increase sales of the company. It
helps in adding new customers to the company by satisfying the needs of present customers.
Increase employee satisfaction: Brand image play an important role in satisfying the needs of
employee as they are happy in working with such company that have strong brand image in the
market. It also increases the efficiency and loyalty of employee thus motivating and influencing
them to provide qualitative services to its customers. Thus, it also helps in promoting company
product by offering quality service and mouth-to-mouth publicity by satisfied employees of the
company.
Build trust: Strong brand of Apple plays an important role in marketing tool as it build trust
among the existing customers and future prospective. Strong brand image of the company
promote and maintain loyalty of customer's and also help in adding new prospective to the
business due to strong image of the company. It helps in adding new customers and retention of
existing customers of the company.
Help in advertisement: A well establish brand image effectively promote its product to its
customer and marketer can easily and effectively influence the customer to perceive company
product over other competitor product. Thus, strong brand image reduces the effort and cost of
marketing of product for achievement of organisational goals.
Apple is able to build strong image of iPhone by adapting to various changes,
maintaining the quality of its product and quality service to its customer service, innovative,
unique and update product to its customer (Sevel Abratt and Kleyn, 2018). There are many
reasons that have lead iPhone as a leading brand in domestic as well as in international market.
User experience is one of the reason. By using experience of customer is able to design product,
its feature and advertisement strategies and identify the needs of the customers thus satisfy in the
best possible manner. Customer loyalty is another reason as Apple company focus is to provide
qualitative product and service to its customers. Company by thinking differently and innovating
its product consistently is able to build strong brand image. Model, concept and theories used by
the company in management of brand successfully over time are Keller's and Aaker Customer-
Based Brand Equity Model.
Keller's Customer-Based Brand Equity Model: It is pyramid that has various stages of brand
equity which help in identify the stage of brand and what the company is need to do for more
enhance of its brand image (Keller, 2017).

Brand identity: It means the ways, customer perceive company and its product so it is the basic
and the most important stage on which all other stages depend. Apple is able to effectively
identify its apple brand to its customers or make aware of it brand.
Brand Meaning: When the customers are aware of the brand they need further details such as its
performance, quality of product. Customers are fully aware of the quality product and services
offered by Apple Company through its brand. Customers are aware of the product quality and
services offered by Apple.
Brand Response: It explains the experience that the customer gets after using company product
and services and thus customer is brand advocate of Apple. Apple has strong brand that helps in
attracting existing and potential customers in the market. Response to brand image of apple is
good and many people prefer it as compared to other brands.
Brand resonance: It the stage where the customer gets strongly connected with the company
and does not precise other's product. Apple is the one of the example of brand resonance as it has
built strong relationship with its customers.
Aaker Customer-Based Brand Equity Model: This model focus on recognition thus it is mix
of Brand association, Brand awareness and Brand equity (Laforet, 2017). Thus, this model helps
in creation of brand strategies to increase the value of the company, its products and to gain
competitive advantages. It consists of five components of controlling brand equity:
Brand awareness: Customer's in the market are fully aware about the product and services
offered by Apple Company.
Brand loyalty: Apple Company has maintained loyalty of customer by providing quality
product and services and thus increasing its market share.
Perceived Quality: Apple has a brand image of providing quality product with unique features
that differentiate it from another.
Brand association: Customers of Apple Company feel happy and satisfied when they make
purchase or see advertisement and feel contacted.
Patent, IP and trading partners: Apple Company have copyright its technology, products in
order to get competitive advantages (Mohan Voss Jiménez and Gammoh, 2018).
Apple is able to build strong image of iPhone by adapting to various changes,
maintaining the quality of its product and quality service to its customer service, innovative,
unique and update product to its customer (Sevel Abratt and Kleyn, 2018). There are many

reasons that have lead iPhone as a leading brand in domestic as well as in international market.
User experience is one of the reason as by using experience of customer is able to design
product, its feature and advertisement strategies and identify the needs of the customers thus
satisfy in the best possible manner. Customer loyalty is another reason as Apple company focus
is to provide qualitative product and service to its customers. Company by thinking differently
and innovating its product consistently is able to build strong brand image. Model, concept and
theories used by the company in management of brand successfully over time are Keller's and
Aaker Customer-Based Brand Equity Model.
P2 Key components of successful Brand Strategy
Brand strategy it is long termed planning to build strong brand image of the company for
achievement of desired goals. The key components of successful brand strategies for building
and managing brand equity are as follows:
Awareness: Company is able to effectively build equity brand image by creating awareness of
its product and services among its target customers. It includes the customer should be aware of
existence of brand and the categories in which the company deals (Patel, 2018). On the basis of
product categories, the customer first recall brand is said to have the highest awareness among
customers. Company has use various means to increase its brand image through events,
advertisement, mouth-to-mouth promotion and publicity. So, it can be stated that Apple
Company has strongly established its brand image in the market as the customer are well aware
of the brand and its products.
Brand association: The way company connect itself with the customers or stay in customer's
mind it is mainly done by building strong relationship with customers. Customers associated
themselves with the company on the basis of quality of product and services, brand
advertisement, price of product, product categories and interaction with employees (Borda, and
et.al., 2017). Apple company customers are associated with its brand effectively as it has use
effective means for interacting its brand with customers. Strong and positive Association with
customer has helped the Apple in induce brand purchase and thus help in generating good mouth
publicity. This has also helps the company in creating barrier for other competitors to enter the
market, provide trade leverage and thus leveraging the brand of the company.
Perceived Quality: It describes the expectancy or customer's preference about the quality of
product and service offered by the company. Customers assess and make rational judgement of

quality by considering various factor such as offering of competitors, performance of brand.
Company by providing quality services and products can charge competitive price for its
customer's and it is only the main reason the customer prefers a particular brand over other.
Apple Company differentiates its brand from other competitor in the market by providing
innovative and unique feature in its Phone. Thus, the company is also to charge high price from
customer and able to get competitive advantages in the market.
Brand Loyalty: Brand loyalty is made when the customer makes continuous and repeated
purchase of its products of particular brand. It is the one of the most important indicator of
building and managing brand equity because it indicates consistent purchase as the product have
been purchase before (Niculescu, and et.al., 2019). It will help the company in launching of new
product easily and effectively with minimum cost and efforts. Bargaining power of company is
also high when it has strong customer's loyalty as customers will purchase only their products.
Apple Company by providing quality product and services to its customers is able to expand its
market share and customer loyalty. Due to quality of its product the customers are ready to pay
high price then the competitor price. Thus, create barrier in new entry of competitor and protect
the company from various threats of competition.
Proprietary Brand Asset: Company should copyright its various technologies, process of
manufacturing product in order to get competitive advantages in the market. It includes Patent,
trademarks and channel relationship it is done in order to protect company from other
competitors, prevent erosion of customer’s loyalty and competitive advantages. Asset is the
valuable thing that needs to be protected to get competitive position through various patent and
trademarks. Apple has patent and copyright its technology and products in order to get
competitive advantages in the market and to increase loyalty of customer's.
Brand Extension: It is the techniques used by the company to provide benefit to new launch
product by using prevailing popular and reputation brand name of the company. This is done in
order to increase the sales and market share of the new launch product with the help of existing
brand image.
Brand reinforcement: Each product has its life cycle so in order to maintain customer's loyalty
and continuous purchase this strategy is followed by the company. Brand reinforcement helps in
maintaining and increasing loyalty of customers, adding new prospects in the business. Brand

reinforcement take place by making aware consumer about the prevailing brand and its benefit to
customer's through advertisement, publicity and by offering promotional discounts.
Brand revitalisation: This strategies is used by the company when the product has completed its
life cycle or have reached its maturity stage, the profit of the company has also gone down. Thus,
it is techniques to bring back the same demand of the product in the market and increase profit
margin of the company.
LO2
P3 Different strategies of portfolio management, brand hierarchy and brand equity management
Brand strategies are formed to enhance the market share, to increase sales and to gain
competitive advantages in the market. There are different Brand strategies followed by Apple to
increases its market share and gain competitive advantages are as follows:
Portfolio Management strategy: It refers to the strategy of the company to get maximum
benefit or highest return at lower risk and cost (Beck-Krala and Klimkiewicz, 2016). This
approach is applied mainly for efficient portfolio management and brand portfolio strategies
adopted by Apple to get maximum brand equity are as follows:
Branded House: The Company use corporate brand name for all of its product and services
offered by the company for increasing Brand awareness and knowledge. It helps company in
reducing various cost of advertisement and marketing due to amortization of brand portfolio. It
includes various risk such as reputation that means problem in one product can spoil image of all
products and dilution risk. This model is used by the company to increases it sells and to focus
on brand in order to get maximum share in the market.
House of Brands: It is the most common strategy used by Apple to build strong Brand image it
has different brand for different product. Packaging of product of Apple provides information
related to name of individual brand with their parent company name by using logo of Apple.
Apple has use this strategy to diversify its product range and to reduce the risk of dilution and
reputation. Thus, it is one of the strategies that are helpful in increasing brand image of the
company.
Sub-branding: In it many product use mixer brand name or have more than one brand name and
it mostly occurs at times form pair with other brand or parent brand (Keller and Brexendorf,
2017). Company use this model in order to be get benefit of established brand image and to be

more specialized in that particular brand.. Thus, it helps in catering the existing and prospect
customer in the market and thereby increasing its market share.
Hierarchy of brands: Apple Company in it brand strategies has follow house of branded
strategy it means the firm has use its parent name to sells its products. The company is able to
build strong brand image and increase its sales of product by not detract it from parental brand
(Zheng, 2017). Thus, it provides ease to company in recognition and keeping in minds of
customer's due to well-established brand image of the company. Company Apple offers various
products to its customer's such as iPhone, iPad and MacBook without differentiate it from main
brand. The company is able to use its main brand in all sub-product by using logo at its back side
of the product.
Corporate brand: The product and service are promoted on the basis of corporate brand name
and help the company in gaining competitive advantages.
Umbrella branding: In it the companies can use single brand name to promote sale of similar
product and service of the company.
Family branding: In it the companies uses same brand name to all of its product and service in
its product line so that they can be easily identified.
Individual Brand: In it the companies for every new product provide separate brand name and
that have no connection with existing brand thus each product is assign a unique brand name.
Apple Company follow corporate brand hierarchy as it promote its product and
services by the name of corporate name that help the company in increasing sales of various
products. Products of the apple company have logo on the back side that help it in creating
awareness of the brand and increasing customer's loyalty.
Brand equity management: It refers to effective management of brand to deliver the same
quality of services and products to the customer's. Thus, allowing company to attract existing
and potential customers for achieving organizational goals. Brand equity helps in creation of
difference in terms of customer's preference of company product over other competitive
products. CBBE Model of brand equity management is adopted by Apple Company that is as
follows:
Brand Identity: It explains the way customer perceives the company and help in distinguish the
company from other competitors. It is the basis and most important level that help in building
strong brand image of the company. Company has to use various attractive means to gain

attention of the customer's such ad campaigns. Apple company has effectively aware the
customers about the company and its brand image.
Brand meaning: When the customer became aware about the company brand they want further
detail such as the product quality, feature, durability and its value for money. In this stage
customers identify the reputation of the company by its brand performance and brand imagery.
Apple Company has successfully explained the meaning of its brand and the quality offered by
the company in its product and services.
Brand response: After the customers have experienced the company products they provide
judgement and feeling of customer's on the basis of product used. It differs from individual to
individual as some may have good experience while other might not have such experience.
Apple has get good response from customers as it have provided and maintained quality of
products.
Brand resonance: At last this model explains that the company should try to maintain loyalty of
customer's by being on its words and maintaining same quality. Apple Company is successful in
maintaining customer's loyalty as it provide quality product as well as continuous innovate its
products as per requirements of the market.
LO3
P4. Brand managed collaboratively and in partnership at domestic and global level
In international level it is somewhat difficult for company to collaborate and partnership
with other company as it does not have effectively brand image. Level of competition in
international market is also high so the company has to effectively build its brand image in minds
of customers. Whereas in domestic market many companies are interested to collaborate and
partnership with other apple company as it has well-established brand image in the domestic
market. Thus by forming partnership at domestic level it can expand it shares and profit margin
more effectively
Apple and Nike
Apple collaborates with Nike 10 years ago for introducing iPod to get running to beat and
it is used to measure pace and distance while running. Companies have again form partnership
for launch of special edition Apple watch that has additional and advance features such as 38 mm
and 44 mm size. This advance feature is especially for runner and athletes as by using smart
watch they would able to tract distance covered by them. Thus, collaboration has helped both

Apple and Nike in increasing its sales and profitability of the company.
Apple collaboration with Hermes: By collaborating with Hermes helps in taking competitive
advantage in the market because of their parallel thinking and shared value. Company is able to
launch wide range of new and current bands that have special combination of black. So, by
collaboration Apple watch Hermes ultimate tool for modern life and effectively helps in
achievement of company goals.
Samsung and iPhone
Samsung also possess high brand power in global market but less from iPhone. Samsung
gains loyalty of customer by offering honest product with various features in mobile. IPhone and
Samsung collaborate to each other and come in partnership so that both get advantage. Due to
partnership iPhone offers iTunes film and TV shows on Samsung LED. That means Samsung
television user doesn't have to buy Apple TV setup box. On other hand iPhone gets access to for
airplay where iPhone user can be able to stream video content from iPhone to Samsung TV.
Thus, iPhone gets profitability to influence brand popularity in domestic and global level.
Company build brand image for launching new product in its categories or to serve more
customers in same category or other category. Apple has use iPhone brand name in order to take
advantages of main brand name to introduction of Airpod and iPod in its business with minimum
expenditure and effort in marketing of product.
Brand Extension: Apple Company is able to effectively launch Ipod product with the help of
well-known brand image of the Iphone. Brand extension helps the apple in many ways thus
influence current and future prospective by using existing brand image of iPhone. Apple
company first started by making personal computers Mac then Iphone and recently it extends its
brand for launch of Ipad for customers that loves technical pinches. Company is also planning to
launch online store for sales of Mac apps. Thus, brand extension helps in enhacning sales of new
product and profitability of Apple.
Line Extension: Company can easily add new variants within same product category such as
change in its flavour, packaging, model or colours with the use of established brand image of the
company. It also helps in catering the needs of the customers that have different perception,
belief and value thus help in adding new customers (Foglieni and Holmlid, 2017). Thus, by little
modification and changes in product can increase the sales and customers of the company. For
example for product line extension of Apple is Airpods company by adding new features and

modifying look of iphone launch various models such as iPhone 4, iPhone 5, iPhone 6 and
iPhone 7. Thus, company is able to satisfy needs of customers by customization of its products
so that it suit every individual. Company by providing same colour of Airpods as per the latest
iphone so to induce customers to purchase Airpods that matches with iPhones. Thus, it can be
stated that line extension helps in enhancing sales of both products.
Brand stretching or vertical extension: The brand can be extended by targeting new customer
segment this is done by the company as the existing market has less opportunities, or more
opportunities are there in other market segment or chance of threats in existing market. Apple
has extended its brand with the help of mother brand the company introduced its sub-brand and
its sub-brand it uses logo of Apple. Thus, it helps the company in increasing sale of both mother
brand and sub-brand and achievement of organizational objectives.
Thus, by using various techniques to leveraging and extension of brand the company is
able to increase its market share, customers and profitability of the company. The company by
using various techniques is able to effectively operate is business in domestic as well as in
international. Thus, strong brand image is crucial for every organization to attract present and
future prospective of the company.
LO4
P5. Evaluate different types of techniques for measuring and managing brand value using
specific organisational examples.
Brands have significant level of implication over managing the different function along
with navigation and engagements. This helps company to have proper level of establishment in
communication. This helps in paying major level of emphasis over different business
engagements in more way to identify customer over significant level. Branding has basic level of
business assumptions in order to have carrying significant valuations. This is important to be
evaluated proper level of values of company in specific order. Branding all has the important
reconsideration in gaining the major impacts in business aspects which helps in gaining
competitive edge in market development.
Brand valuation is the process which is all about having proper level of calculation
regarding the value development along the specific amount of money which is having significant
level of more values at financial level rather than the willingness to pay. The brand valuation of

Apple is considered to have significant level of growth as on average of 16% and been claim to
be had 2nd place having the estimation of brand values of more than $280 billion (Jones, 2018).
The brand of apple is mostly being recognized with its logo on its different productivity. As the
product of apple, iPhone is to be considered as having about $200 billion value (Wittensteing,
2019). The company is having major level of driving the sales as per revenue which is more
about have the development in customer loyalty in significant way in more appropriate manner
(Dai Chan Lim and Zeng, 2019).
Brand awareness is considered to be the important aspects in order to have proper level of
evaluation with regard to important parts for brand equity. This turns out be major level of
leading indication with regard to consumer awareness in more way to have conservation of
share. There is implication is of various level of methodologies such as the implication of survey,
web traffic search volumes with regard to Apple brand and products. The firm can also use social
mention and reviews in significant way (Wegerer and Munro, 2018). The only disadvantage of
brand awareness for Apple Inc. is that with brand awareness there is increase in expectations
from the customer any default in the brand or a product could ruin its image on large.
Preferences matrices are all about consumers which are more to be powerful in way of
purchasing of regular level of decision. This helps in taking out significant level of consideration
which can be measured as brand relevance along with appropriates accessibility of products. The
company belief that customer has the existence if uniqueness in values regarding stability in
specific target market. Emotional connections with customers are key factor of loyalty and brand
values which is prevailing in product and services developments of apple.
Financial matrix is about evaluating the surrounding of brand equity which is directly having
the relationship about ales performances. The brand equity is having realization towards
financial aspects through price premium its respective composition with its average translational
value. The lifetime value of apple along with having growth at sustained rate is helping company
to have effective calculation of brand equity. The company apple has introduced iPads in the new
market of computers hardware which is not previously having its existence in such market. This
new launch tunes out to be huge opportunity contributing in company’s growth opportunities in
more effective and efficient manner. The company tends to have use of financial data as well as
the existence of market dynamics to have proper assessment of the brand towards incomer

generation and forecasting the risk and strength of firm at competitive level (Bonanno Russo and
Menapace, 2018).
Output matrices are all about having proper level of evaluation of material used in marketing.
This has significant measurement of brand images and product which is been actually offered in
market. Tracing of local activity gives a clear level of impacts over brand equity which has
determination over brand equity prevailing in market in significant manner. Goodwill is
considered to be taken as the mean values of loyalty with regard to firm customer development.
There is existence of strong linkage between branding and goodwill as there is involvement of
interesting concepts of loyalty is having significant component of branding for which customer is
paying premium for quality.
Finance Based
In finance based method brand is evaluated by way of adding brand value with the capital
which is required in brand production. It will also include the cost of intangible assets which are
being used by company while working in company. One of the challenge related to this method
is that any mismatch of figures could produce negative report for evaluating the brand.
Market Based
In market based method it will include amount of brand in market which is sold by
company. It is related to the highest value of willing buyer and seller which will buy these
products as an asset. The disadvantage related to this method is that decline sale of product in
single market but increase sale in other product may produce a contradictory results.
Cost Based
In cost based valuation is done by the company which will include worth and amount of
money which has taken by company for increasing the brand image. This method will include
the brand of cost which has been incurred by company in preparing these brand. Some the
valuation of the cost of company may not be produced with actual results like company brand
image would have increase over than that of been invested in the increasing the brand image of
the company.
Apple had market share of 48.5% which will include strategy analytics as well.
Consumers are attracted towards company by way of the brand image and it had increased brand
image of company.

These techniques will have impact on the brand value of company. Effective brand value
can create strong brand in market. These all strategies will have impact on the brand value of
company. These techniques will help organization to develop brand value and increase sales of
company along with productivity as well. Output matrix will be focusing on evaluation of
material and financial matrix is concentrating on brand equity of company. Brand awareness is
must for any type of organization for increasing productivity (Dolan and Goodman, 2017). There
are various techniques which will include brad rejection, brand recognition, brand loyalty and
brand preference as well.
CONCLUSION
From the above report it will be concluded that the branding is playing vital in
performance of product in market. Branding can be used as marketing tool for improving
business performance. Some key components of successful brand strategy are used by apple for
managing brand and equity. There are some different strategies which will be improving
performance of product in market. Strategies like portfolio management and brand hierarchy will
be used by company for branding of product in market. Brands are building image of company at
global level and national level. So, company has used different techniques to leverage brand and
extent brand. Report has included the different types of techniques for measuring brand value.
These strategies will include brand awareness, financial matrix and output matrix. Brand
awareness will also include awareness for the products and company. Output matrix will also
include proper level of evaluation of material for marketing of products. Financial matrix will be
including evaluation of brand equity which will have direct impact on performance. The report
will be providing knowledge regarding brand management and strategies which will increase
brand image of company in market.

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