Importance of Branding and Key Components of Successful Brand Strategy

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