Brand Management: Concepts and Importance

This assignment delves into the multifaceted realm of brand management. It examines fundamental concepts such as brand equity, customer brand engagement, and the role of emotional aspects in consumer-brand relationships. The assignment also explores the influence of employer branding, place branding, and luxury fashion brands on overall market dynamics. A comprehensive understanding of these concepts is crucial for effective brand development and management in today's competitive landscape.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Importance of branding as marketing tool and its emergence in business practice..............1
P2 Key components of successful brand strategy to build and manage brand equity................3
TASK 2............................................................................................................................................5
P3 Different strategies of portfolio management, brand hierarchy and brand equity
management................................................................................................................................5
TASK 3............................................................................................................................................7
P4 Management of brand at domestic and global level..............................................................7
P5 Different types of techniques for measuring and managing brand value..............................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Brand is any term, design, symbol or any other feature which creates difference in
between the organisation and products of competitors and makes their unique identity in the eyes
of customers. Branding of any product has huge impact regarding influencing the behaviour of
customer's to buy particular brand product. Branding also plays an important role in marketing
and advertising of the products in market and among consumers. Brand management is process
of managing successful brand and making product popular in the eyes of consumers. This
provides an opportunity regarding improvement of sales and profitability. Adidas is selected in
the present report which is a multinational organisation that deals in shoes, clothing, accessories,
etc.
In the present report, importance of branding as a marketing tool, key components of
successful brand strategy and managing brand equity, different strategies of portfolio
management, brand hierarchy and brand equity management will be explained. Also,
management of brand on domestic and global level as well as different types of techniques to
measure the brand value (Ashworth and Kavaratzis, 2010).
TASK 1
P1. Importance of branding as marketing tool and its emergence in business practice
Brand: It is called as a particular symbol or design which helps in identification of
product and creates difference among all the items of another organisation. Brand plays an
important role to make product and organisation popular in eyes of consumers. Branding helps
to create trust of consumers on the quality of their products and contributes to make a long term
relationship with them. Similarly, Adidas is a multinational brand and customers have trust upon
quality of products which are made under brand name of Adidas. So, brand name is also used as
a marketing and advertising tool simultaneously.
Brand-management: It is the process of analysis and planning of brand regarding their
growth in market. To effective management of brand required to make good relationship with
customers which belongs to target market. The two types of elements involved in managing
process of brand are tangible and intangible. Tangible elements which are included in the process
of management of brand are look, price and packaging etc. On the other hand, intangible
elements include experience of consumers with brand and influence of other brand on the
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behaviour of such existing consumers. Brand manager of Adidas has duty to manage the brand
effectively to build healthy relation with customers and achieve their targets of sales and
profitability.
Importance of branding as marketing tool
Adidas is a multinational company which provides their products in all over the world.
The growth of company only depends upon branding of their product because customers have
confidence upon quality of products made by Adidas. The management of company uses this
brand name as a marketing tool to influence customers to buy their products and improve their
profitability. Brand is considered as an important asset which helps to maintain the goodwill of
company in market. Some other importance of branding which are got by Adidas are mentioned
below:
 Competitive advantage: Branding is necessary for all organisations which provide their
products and services in market. Such branding helps the consumers in identification of
particular product easily. Adidas is a multinational brand which is famous in all over the
world for quality of their products. Brand works as a connecting factor with minds of
consumers to buy their products only. This helps in attraction of a large number of
customers and in making their competitors out of the market. Branding helps to make a
positive image in market and customers which helps to attain competitive advantages
(Brodie and et. al., 2013).
 Brand attract new customers: Branding plays an important role in connection with
customers emotionally and attaining the loyalty towards their brand. Adidas is one of the
popular brands which is famous for their clothing and shoes in youth. The management
of company focuses on fulfilling the needs of youth and make their products as per recent
trends. This plays an important role to attract new customers in the field of sports and
college students.
 Branding help to build organisation stable: The asset of organisation is divided into
parts generally tangible and intangible. Intangible assets the includes the part of goodwill
which is included in the value of asset helps to make improve the value of organisation.
There is huge role played by branding to improve the image in market and makes their
goodwill strong. This helps to make organisation stable in market and improve their
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sales and profitability. Similarly, branding makes Adidas more popular in all over world
and contributes in development of the economy of country.
 Branding fulfil expectations: Brands helps to connect with the minds and tastes of
consumer and provide products as per their preferences. Consumers have belief on
brands that they always provide good quality products. Similarly, Adidas always fulfil the
expectations of their consumers and never let them down. This provides an opportunity to
Adidas to become the leading brand in between youth and sports industry.
Brand Pyramid: This is considered as one of frameworks which is made with help of 5
components. Such components include features and attributes of product, functional benefits,
emotional benefits, brand persona and idea of brand. This contributes in the establishment of
brand in market.
P2 Key components of successful brand strategy to build and manage brand equity
Brand Equity: It is considered as the value of the brand in market which is calculated as
per the representation of brand by customers. Brand equity identifies strong, if the image of
brand is good in between customers and market and consumers having positive attributes
towards the quality of brand product. It is the duty of brand manager of every organisation to
maintain healthy relation with their customers and make changes in products as per their
preferences and satisfy demands. Such innovation contributes in the retention of customers for a
long period of time and improve their brand image in market. Large number of advantages are
achieved by all organisations having some brand image in market like customer's support,
increases sales and profitability, competitive advantage, etc. Adidas is big organisation which
provides diversified products in all over the world. In satisfaction of needs of customers of
different regions they have to face various problems which contributes to make their image and
brand more strong in all over the world (Buil, De Chernatony and Martínez, 2013).
Steps in development of Brand Equity
Development of brand equity is important for every organisation as it helps in
improvement in the value of goodwill and becomes strength in future. This provides opportunity
to attract customers towards their particular brand and accomplish their targets regarding capture
large market share.
Step 1- Building awareness: This is important step regarding promotion of their brand
in market between customers to make it popular.
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Step 2- Convey the meaning of brand: This step includes about the showing the
importance of brand like quality, trust, easy identification etc.
Step 3- Attain the feedbacks from customer's for brand: This step includes about
ascertainment of views of customer regarding quality and price of the product. This helps in
identification of the issues which are attached to their products and makes changes to make it
more better and innovative.
Step 4- Creation of relation with customers: It is one of the important part of branding
to make good relation with their customers. This helps to retain their customers for long period if
time.
Role of marketing to build brand equity and brand positioning
This includes providence of important methods which helps in making the brand more
strong are define below:
 Brand Consciousness: This includes about making the brand popular in market so,
customer's can easily identifies particular brand and makes difference from other brands.
Adidas is big organisation popular for their innovative shoes and clothing products in all
over the world. Adidas is one of the popular brand which has strong popularity between
youth regarding their shoes and clothes. Promotional and marketing tools plays an
important role to make the logo of Adidas popular in easy identification of their different
product by use of such branding symbol.
 Perceived quality: This includes the identification of feedbacks of customers regarding
their existing products and their current preferences. Adidas is strong brand image in
market requires determination of preferences of customers to attain sustainability in their
performance. Continuous approach of management in satisfaction of demand and make
innovation in their products as per current trends helps in maintenance of effective link
with their customers (Christiaans, 2012).
 Brand association: This includes the use of particular symbol and design which easily
recognise by customers in market. Such symbol helps to attach with the minds of
consumers and attract them towards their quality and performances. This contributes in
improvement of brand images.
Management of brand
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This includes about the challenges which are faced by organisation in development and
management of the brand in market to sustain their performance. Such challenges are mentioned
below:
 Competition: It is one of the biggest challenge which is faced by the management of
Adidas in development of the brand. Other companies like Nike also Haiphong good
image and market share becomes the greatest competitor and affects their performance.
 Digital technology: It one of the major factor which lowers down the profitability of
companies like Adidas. Due to digitisation many brands easily provides their products to
customers on discounts which reduces the popularity of the products of Adidas and
affects profitability (Dempsey, and Gruver, 2012).
TASK 2
P3 Different strategies of portfolio management, brand hierarchy and brand equity management
The management of Adidas adopts many strategies and policies which helps in portfolio
management, brand hierarchy and brand equity management.
Brand Portfolio strategy
This strategy helps in providence of more than one product under one brand name. This
strategy is very important in removal of confusion from the minds of customers and makes their
diversifies products popular in all over the world under single brand name. Adidas also provides
shoes, clothings and accessories under single brand. In management of brand the strategies adopt
by Adidas are define below:
 Driving revenue and profit Growth: As per this strategy, needs to provide their
products under the reach of end customers. This helps to acquire large market share and
gain large profits.
 Investment in brand and business: Under this strategy, required to invest sufficient
amount of funds in their brands to attain strong brand image. This can be achieved by
investing on advertising policies.
 Increasing efficiency: This strategy includes about making quality of their products
more better in efficient price to attain competitive advantage.
Management Hierarchy
Adidas
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The hierarchy of brand which is followed by Adidas is mentioned below:
 Umbrella brand: It is also called as family branding which includes all the products under
same brand. For Adidas like shoes, clothing and accessories.
 Endorsed Sub Brands: This includes about making the agreement with influential
celebrities to advertise their products and brand in between customer's. This helps to
make their brand more popular and attract large number of customers.
Nike
The brand hierarchy follows by the management of Nike is mentioned below:
 Umbrella brand: This includes all the products which are provide by Nike under same
brand name like shoes, clothes etc.
 Endorsed Sub Brands: This includes use of influential personality regarding creation of
value among customers. This helps to make their competitors out of market.
Consumer based brand equity (CBBE Model)
It is effective model which is used by organisations to control the brand in market. This
includes the process of branding on the basis of knowing preferences of consumers before
provide in market for use. This helps in identification of success of product in market or not.
Application of CBBE Model
Step 1- Brand Identity: This includes about the approach of organisation to provide
complete different product with unique specifications which is not yet available in market. This
helps to make unique identity of brand in market (Esch and et. al., 2014).
Step 2- Brand meaning: This includes about the approach of organisation to provide
information regarding importance of brand to consumers regarding their durability, quality, price
etc.
Step 3- Better response: This includes about identification of response of customers
regarding their particular brand and products. This provides opportunity regarding determination
of fast or slow rate of growth.
Step 4- Brand Resonance: This includes about the use of approach by organisation to
make their performance better from their competitors. This provides opportunity regarding
maintenance of sustainability and achieving large market share.
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TASK 3
P4 Management of brand at domestic and global level
Brand is considered as the important asset which is required to manage effectively to
achieve success in future. It is the duty of the organisation to maintain the same branding level at
domestic and global level. Adidas and Nike both are multinational organisation which provides
diversified products in all over the world. After having good profitability and net worth required
to adopt proper approaches and strategies which helps to maintain their brand image in market.
Brand extension and Leverage
This includes about launch of new product under different category under same brand
name. It is very risky and good approach depends upon the success and failure of particular
product. It becomes risky in the situation of failure of product in market then it also affects the
brand image of other products under same brand name. Adidas and Nike both organisation
provide large number of different products under same brand name.
Brand extension strategies
Ansoff's matrix is used by the organisation regarding management of brand at both
domestic and global level. The major steps are mentioned below:
 Market penetration: This includes the strategy of entering into the new market by
launching their product and attract large number of customers. This can be achieved by
increasing the number of diversified products and sales in particular areas (Gratwohl and
et. al., 2011).
 Market development: This includes providence of their old products which is popular in
some country to new country regarding development of their existing market and
profitability. This helps in expansion and growth of Adidas and Nike and capture large
market share.
 Diversification: This includes the process of diversification in new market due to having
restrictions on their operations in some country. Due to having strict political regulation
in UK, Adidas an Nike expand their business activities in Asia.
 Product development: This includes about providence of new products in existing
markets where Adidas and Nike having good market share. Such innovation and
uniqueness in their new products helps to increase their sales and profitability.
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P5 Different types of techniques for measuring and managing brand value
Large number of firms are operating their business activities and faces many difficulties
in achievement of success in their operations. Such organisation needs to focus on customer
demands and the forces which are present in market to maintain their brand equity which attract
customers towards their products. Adidas and Nike are global organisation and having good
brand equity. But after that they are facing many difficulties due to competition and digital
technology in accomplishment of their goals. So, it is important to measure brand value to
achieve their targets.
Necessity regarding measurement of brand value
 To provide assistance regarding preparation of balance sheet and financial statements
 To provide prices for their products
Analysis of different techniques use by Adidas and Nike
Different techniques which are used by both organisations regarding measurement of
brand are define below:
 Quantitative techniques: It involves the use of numerical methods which helps in
attainment of the results in numeric terms. Provide accurate brand value of Adidas and
Nike which is added to the value of organisation (Hanna and Rowley, 2011).
 Qualitative techniques: This includes about measurement of brand value in terms of
quality of their products. The methods which are used in such calculation are free
association, projective method etc.
 Comparative techniques: This helps in determination of customers view for brand to
understand about the advantages of strong consciousness of brand. The two comparative
approaches are present which are used by organisation like marketing based and
marketing based approach.
Adidas Nike
Adidas is global organisation which provides
diversified products world wide. Regarding
managing brand value, Brand-manager uses
qualitative approach regarding measurement of
the value of their existing brand. Use of such
Nike also one of the same sector company
which provides their products world wide. It is
considered the biggest competitor of Adidas.
Management of Nike needs to measure the
value of their brand which helps in preparation
of future strategies. Competitive approach is
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methods in calculation is define below:
 Free association: This includes about
determination of positive attitude of
customers while purchasing products of
their brand.
 Brand awareness: This includes about
creation of good image in minds of
customer's.
used by Nike in measurement of brand value
which is define below:
 Brand based comparative approach:
This includes about determination of
response of customers and their
preference to choose their product.
Following techniques and Brand Equity Audit
The main purpose of Brand Audit is determination of position of organisation in market.
This includes about audit of brand in effective manner. Steps of audit are define below:
 Market context: It includes about determination of such forces by bothy companies
which have adverse effect on their brand.
 Strength and weaknesses of brand equity: This includes determination of loyalty and
sensitivity towards brand.
 Brand equity description: It involves about revaluation of conceptualization and views
of customers towards brand (Hollebeek, 2011).
 Competitive tactics and strategies: This includes about designing of audit to provide
information regarding strategies of competitors and Adidas.
 Brand tracking: This helps in measurement of development in brand on continuous
basis to make improvements in future.
CONCLUSION
It has been concluded from the above report that, branding plays an important in the
success of organisation. Brands helps in creation of attachment with customers to buy their
particular brand products. By use of branding organisation are accomplish the target of large n
umber of sales and profitability. As the large number of advantages are achieved by organisation
like competitive advantage, large market share, attainment of customers support, build long term
relationship, improved goodwill etc. Adidas one of the popular brand adopts many strategies to
attain sustainability in their performance. Many challenges are also faced during such process
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like competition and digital technology. So, brand management is considered as an essential part
of organisation.
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REFERENCES
Books and Journals
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promotions in brand equity creation. Journal of Business Research. 66(1). pp.115-122.
Christiaans, L., 2012. International employer brand management: A multilevel analysis and
segmentation of students' preferences. Springer Science & Business Media.
Dempsey, J. M. and Gruver, E., 2012. “The Public Interest Must Dominate”: Herbert Hoover
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Esch, F. R., and et. al., 2014. Corporate Brand Management: Marken als Anker strategischer
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Kavaratzis, M., Warnaby, G. and Ashworth, G. eds., 2014. Rethinking place branding:
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Li, G., and Kambele, Z., 2012. Luxury fashion brand consumers in China: Perceived value,
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Zaglia, M. E., 2013. Brand communities embedded in social networks. Journal of business
research. 66(2). pp.216-223.
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Online
Brand Management - Meaning and Important Concepts. 2017. [Online]. Available
through.<http://www.managementstudyguide.com/brand-management.htm>.
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