Brand Management of McDonald: Assignment

BRAND
MANGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Brand power...........................................................................................................................3
TASK 2............................................................................................................................................7
P3 Different strategies of portfolio management, brand hierarchy and brand equity
management............................................................................................................................7
TASK 3..........................................................................................................................................10
P4Evaluation of how brand are managed collaboratively and in partnership both at global and
at domestic level...................................................................................................................10
TASK 4..........................................................................................................................................12
P5Evaluation of the different types of techniques for measuring and managing brand value12
CONCLUSIONS............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Brand management is all about the process of planning and analysing of ways through
which brand can be treated in the marketplace. In addition to this brand management includes the
management of tangible and intangible characteristics of brand and the ultimate aim of brand is
to develop good relations with the target market (Alfes, and et. al., 2013). This assignment is
divided into four main task. In task 1 description about brand power is being explained. In task 2
analysis of different stages of portfolio management, brand hierarchy and brand equity
management is being done. Whereas in task 3 McDonald favourite brand Mc Cafe is being
considered in order to evaluate about how brand are managed collaboratively and in partnership
both at global and at domestic level. Lastly, in task 4 McDonald itself is being considered as an
organisation in order to evaluate of the different types of techniques for measuring and managing
brand value.
TASK 1
Brand power
Introduction
Branding: It is all about establishing the image of an organisation in the eyes of the customers,
or it can be said it is termed as a marketing practice of creating a name, design , symbol which
helps in differentiating products from other products in marketplace.
Brand equity is one of the marketing term which helps in estimating the value and economic
worth of a brand and the value is determined by the perceptions of the potential customers that
they receive from products (Armstrong and Taylor, 2014).
Benefits of branding for organisation: Branding is beneficial for an organisation in every way
as having a strong brand in itself helps in building customer recognition. In addition to this, it
also helps in achieving competitive edge in market as well as help in making easy introduction
of new products in marketplace which result in enhancing the credibility and ease of purchase.
Stages of building brand: In order to build strong brand in market place optimum impression
limited needs to follow certain steps which are mentioned below:
 In the first step they must first determine the target audience so as to identify those
customer who actually render their interest in purchasing of products.
 In the second stage management of optimum impression limited need to determine the

brand mission so as to define their ideology.
 In the third stage, management of optimum impression limited need to determine their
competitors so as to analyse the difference between their policies and strategies with its
competitors (Bakker and Demerouti, 2014).
 After competitors analysis they need to create value propositions so as to make their
product unique from others in terms of value and benefits of products and services.
 In this stage management of optimum impression limited need to determine their brand
guidelines by undertaking the strategy of their brand.
 In this last stage brand is finally marketed in the market and its the marketing
department who plays this role and side by side acquire feedback from customers too so
as to strengthen their opportunity for brand equity.
Role of marketing department in creating brand equity:
Main role of marketing department is to analyse the changes taking place in the taste and
preferences of customer so that the department can ask the production department to produce
products accordingly which will helps in increasing the customer satisfaction level and will
also result in strengthening the brand equity.
Main body
Brand in itself is defined as a logo, name or symbol on the behalf of which product is
differentiated from other products and services. For example McDonald can be term as one of
the successful brand in food sector as it process its impulsive brand for the purpose of
solidifying their customer base (Bratton and Gold, 2017)Therefore long term success of any
specific brand depends upon its brand equity, as it helps in determining the perception level of
the customers towards their products and brands. For example:McDonald McDonald takes into
consideration several strategies in order to build brand equity like proper communication with
customers is one of the strategy used by McDonald so as to influence more number of
customers. Moreover brand awareness strategy can also be adopted by McDonald in order to
keep customer aware about the brand products they are offering. For example in order to create
brand awareness McDonald uses social media marketing strategy in order to make large number
of customer aware about the product and services they are offering. Other stragey like brand
extension and and brand revitalisation with the help of which product can be marketed in
market. For example:McDonald McDonald has added some other flavour in its product name

Mc Aloo with its Mexican flavour which helps in creating Aloo naan. Thus, it is the process of
brand extension with the help of which McDonald is planning to attract and retain customers for
long period of time. Whereas brand revitalisation is another strategy which can be adopted by
the McDonald when the product need some kind of modification or improvements in order to
enhance its profit and sale (Briscoe, Tarique and Schuler, 2012). .
Keller brand equity model can also be considered in order to determine the consumers
behaviours so that accordingly suitable strategies can be implemented. This model is explained
with the helps of pyramid structure and its comes up with four different levels which are
explained below:
Illustration 1: CBBE Model for Brand Equity
Source : CBBE Model for Brand Equity,(2010).
First level of this model is about brand identity with the help of which McDonald can easily
identify potential customers and the techniques with the help of which they can differentiate
their brand from others (Buller and McEvoy, 2012). For example in order to build brand
identity in market McDonald uses social media platforms as its the site where large number of
people remain connected and which will help them to attract and influence more number of
customers .
The second level of this model is about brand meaning which is divided into two main factors
and they are namely brand performance and brand imagery. At this level customer wants to
know more about the brand because they term to already familiar with brand name. Bran
imagery helps in stating about whether the brand has performed well in meeting the demands of

customers physiological and social needs (Campbell, Coff and Kryscynski, 2012). For example:
McDonald is rendering some features to their products in the form of durability, serviceability,
reliability etc. so as to provide brand meaning to their products. Whereas brand performance
helps in determining the level of customer satisfaction which is rendered by the McDonald and
its brand.
Next level comes of brand response which states that when the customers starts purchasing the
specific products of any brand then their expectations towards the brand increases. If the
expectation of the customers are met with the increase in the value of the products then it result
in rendering positive response of brand and vice versa. Thus, if the brand response terms to be
positive then it will helps in advertising of product via word of mouth to their families and
friends which will result in creating positive mindset in the perception of the customers.
The last stage comes of brand resonance, which is refers to the relationship which the
customers has established with the products and how well he/she can relate it. Resonance is all
about the customer psychological connection with the brand and only few of the brand reaches
at this level as this level of model is term to be highest level of pyramid. Factors such as
behaviour, engagement and values of customers are included at this level. For example at this
level McDonald provide gifts on products, loyalty programs to customers etc.
As there exist large number of products in the market which tends to be similar in nature and
which result in creating confusion the mindset of customers, thus in order to eliminate this
confusion level branding is term to be suitable as it helps in creating the specific recognition of
the brand in the mindset of customers (Chelladurai and Kerwin, 2017).
Suggestions for reinforcing brand
Here is one of the suggestion for McDonald which can be used in order to extend and reinforce
its brand name and it is that the management of McDonald can come up with new product
taking into consideration that the product must be health conscious. It will also be beneficial for
the firm in targeting some new customers who terms to be health conscious, thus it will result in
increase in the profitability ratio of an organisation as well.
Conclusion:Branding is term to be quite effective for the organisation like McDonald as it can
term as effective tool in order to enhance brand equity in marketplace. Thus, as a marketing tool
branding would be beneficial in case of delivering the messages to its customers regarding the
new product development and the about the services they are planning to render. Additionally it

helps in creating loyalty in the mindset of the customers which result in achieving strong brand
image in the mindset of customers as well as in achieving competitive edge in marketplace.
TASK 2
P3 Different strategies of portfolio management, brand hierarchy and brand equity management
PORTFOLIO MANAGEMENT
Brand portfolio refers to collection of brand under organisation's control. In case of small
business, there is one brand image while large organisation has significant brand image which is
relevant to market products in industry (Clark and et. al., 2016). When there is improvement in
brand image of McDonald in industry then there is requirement of change in working style to
maintain same brand image in industry. With brand portfolio, there are less possibilities of
confusion among different brands to consumers who prefers specific brands. In order to get
success in industry, managers of McDonald have to consider some strategies which helps to
make them different from others.
Some strategies are discussed as under-
House of brands- McDonald is the organisation which serves different products such as
French Fries, Mc Muffin, Baked apple Pie, Happy Meal, etc. Hence managers of McDonald use
different marketing strategies to create awareness among people. Hence this creates more
awareness among consumers as compared to company. People are aware about price, price of
products and advertisement made them to differentiate on this basis. With the help of house of
brands, it is easy to create awareness about products and services with tag line or logo of
products.
Endorsed branding- Endorsed branding refers the strategy in which name of McDonald
is used to market product which result in creating awareness among consumers that McDonald
has launched the product (Daley, 2012). In case of McDonald, Apple Pie is known by the name
of McDonald. So this product is famous because of brand value of McDonald. This strategy
provides satisfaction to consumers because of quality conscious factor.

Branded House: By making use of this strategy, an organisation becomes capable of
making the brand strong and will also ensure higher return on investments made by the company.
Also, the brand becomes easily memorable and recognizable.
Mixed brand strategy- As per this strategy, there is use of different strategy in improving
brand image of McDonald. There are some changes which is relevant and significant to get
positive impact on brand of association which helps in improving profits and revenues of
organisation.
The company can implement mixed brand strategy for making an improvement in the
brand image. Branding of product and services can be done in two ways i.e. breadth and depth
extension. Thee are the which includes improvement in quality and range of product of
McDonald. McDonald is fast food restaurant and there are many competitors such as KFC,
Dominos, Burger farm, etc. Hence brand extension is important to maintain good brand image in
industry (Jackson, Schuler and Jiang, 2014).
Depth extension- In this extension, mangers of McDonald launch same kind of product
with some new variety. This includes launch of different types of burger such as corn burger, etc.
hence this is known as depth extension of product.
Breadth extension- Breadth extension refers to launching different variety of products
and services which is not existing in industry. In this case of McDonald launch of Mc Muffins is
different type of product as compared to burger, Apple pie, etc.
BRAND HIERARCHY
Brand hierarchy refers to the pictorial diagram of different products under an name.
There are many brands under the name of McDonald such as Double cheese burger, Premium
salad, chicken McNuggets, etc. Hence these have different brand value in eyes of consumers
with the help of different marketing strategies. Brand hierarchy of McDonald is discussed as
under-
Corporate brand- This is level in which name of McDonald is at high and its products
are bifurcated in their own identity. When consumer is brand conscious, then they only analyse
the name of McDonald to avail it.
Family brand- as per this strategy, consumers have knowledge about product but they are
not aware about company associated with it. In case of McDonald, Mc Fries, Mc Cafe, etc. are

the product which are known by their own name apart from McDonald. This covers under family
brand (Jiang and et. al., 2012).
Individual brand- There are some brands of McDonald which makes it different from
others. As per this model, there is unique values of French Fries which is makes it different from
others. Hence these are the products which improves brand image of McDonald in industry.
Modifiers- There is difference in demand of consumers, so in order to provide
satisfaction to consumers, there is requirement of some changes in feature of product and
services. In case of McDonald, there is Mc Muffins but as per demand there is Big Mac, so
managers of McDonald launch to provide satisfaction to consumers.
Product descriptor- As per this hierarchy, there are some unique feature in product and
services which makes them different from others. In case of McDonald, there are many products
which has some different taste such as Double cheese burger is different from Aloo Tikki
Burger, so this is relevant example of product descriptor.
MANAGING BRAND EQUITY
Brand equity refers to value in the eyes of consumers of particular product and services
as compared to other association's. As there are many brands which compete with McDonald, so
it is responsibility of managers to make strategies through which they can make their brand
unique from others. Some strategies formed by McDonald are discussed as under-
Building brand awareness- Managers has to plan policies to create brand awareness
among consumer. There are many changes which are taking place in external environment such
as marketing techniques, etc. Hence in this case, managers of McDonald has to market them with
different techniques such as social media platform, television advertisement, hoardings, etc. With
communicating knowledge about different McDonald product and services, then this is relevant
and significant for getting positive impact on sales and revenues. There is improvement in brand
image of McDonald among different brands (Jiang and et. al., 2012).
Continuous differentiation- These days, there is requirement of change in product and
services on regular basis because consumers prefer to avail new services. There are many
organisation which are competing with McDonald, so it is important to make changes in features
and taste of product. For instance: there are different types of burgers offered by McDonald, this
is relevant example of continuous differentiation. This helps to keep consumer satisfied and
maintain long term relationship with them (Renwick, Redman and Maguire, 2013).

Aaker's Model of Brand Equity: The following model was propounded by David A. Aaker who
was a marketing professor. This model is defines brand equity as a set of brand assets and brand
liabilities. This model focuses on the five components for valuing the brand equity. These are
explained as under:
Brand Loyalty: It can be defined as the loyalty or devotion of the customers towards the product
of McDonald. With the help of this component it will be easy for the company to identify the
brand value.
Brand Awareness: It refers to the extent to which the people are aware of the products of a
company in the market. This component also helps in measuring the brand value.
Perceived Quality: It can be said as the additional features or quality provided to the brand by the
company that from of others such as giving extra edge over the actual product features.
Brand Associations: It can be defined as something which is deep seated in the mindset of the
customers. It also helps in the measurement of the brand value as the company can find out the
role of these associations in buying process.
Other Proprietary Assets: These are the other assets which helps in the measurement of the brand
value of a company such as the patents, copyrights, trademarks, etc.
TASK 3
P4 Evaluation of how brand are managed collaboratively and in partnership both at global and at
domestic level.
Brand leveraging is the strategy which can be used by organisations with the help of
existing power in the form of brand name so as to enter into new market related product category
by communication valuable information about the products to the potential customers. Whereas
brand extension is a another marketing strategy which is used to market the new product with
same brand name.Additionally McCafe which is one of the brand of McDonald can take into
consideration effective techniques for brand extension and for brand leveraging which are
explained below:
Line extension:
If McCafe wants to introduce a new variant like Organic McCoffee within the same
brand name and within same category then this strategy term to be best useful (Wright, 2018). In

addition to this under this strategy single product is being modified in order to adopt the current
market and customer requirements by segregating then into sub-species.
It would prove to be advantages and a major strength for McCafe because it would helps
the organisation in cutting down its cost of production . Whereas it weakness is that it may result
in creating product cannibalisation.
Vertical extension:
This strategy can be adopted by the McCafe in case if the company wants to grab some
opportunity apart from existing market. Additionally it is the process of stretching the brand
name in new fields by upscaling or by downscaling.
The major strength of using this strategy is that it will help in offering premium version
to those customers who are term to be conscious about quality. Whereas the weakness of this
method is that pricing strategy can be termed as unjustified and which could result in creating
poor brand image in mindset of customers (Johnson, Schnatterly and Hill, 2013).
Thus, out of this both the strategy McCafe can take into consideration line extension
strategy as the firm already has multiple segment of products so it will be beneficial for the firm
in extending their market all over the worldwide. Thus, it will result in increase in market share
for the firm.
McDonald possess multiple brand and among those brand the Mc Cafe is term to be the
crucial brand which the firm could leverage, as this brand posses huge number product lines and
which has certain weakness and strength that are specified below:
Strengths of the brand that can be leveraged:
The major strength of Mc Cafe is that it helps in building clear anticipation of customers,
as it sets of offerings and design is based on preferences of customers. This clear idea of what the
customer demand and prefer term to be the core strength of Mc Cafe. Additionally it render price
advantage too as compared to its competitors like Starbucks. Thus, this strength can be used by
McCafe as a advantage in promoting there new product in market. (Purce, 2014).
Weaknesses of brand that can be leveraged:
Whereas the weakness of this brand is that it doesn't possess independent existence in
marketplace and because of which it is unable to carve a niche market for itself. Thus, Mc Cafe
should consider this weakness and should make strategies to capture niche market as well in
order to make it as a strength for an organisation.
Collaboration and partnership agreements:

This is term to be another method with the help of which McDonald brand McCafe could
leverage its brand name in marketplace. Such agreements is done with the prior consent of
person who want to share resources like knowledge, finance, people etc. Thus, it would helps in
enhancing it market share at global level by achieving its competitive advantage in marketplace.
For example if the MC cafe product appeals to an age group of between 16-25 but they want to
reach a target audience at international level till age group of 35 in all over the world so as to
develop longer cycle of repeat sales then they can go for collaboration and partnership
agreements which will result in gaining credibility with more target audience (Kehoe and
Wright, 2013).
McCafe entered in partnership with Kraft foods in 2015 at domestic level and the benefits
it received from this collaboration is that it has started selling its coffee fro home-brewing in
supermarkets across united states. This has also helped in achieving the target of attracting and
influencing large number of customers, as the customers started enjoying the McCafe
experiences at home with convenience, quality and value etc. which has helped in increasing the
profitability margin as well.
TASK 4
P5Evaluation of the different types of techniques for measuring and managing brand value
In order to measure and manage their brand value several techniques are used by
McDonald and such techniques are discussed below:
Brand value is term to be the financial value of having consumers who will make
payment for a specific brand. In addition to this it is amount which the McDonald acquire from
products due to its recognisable name in marketplace. There are basically two types of approach
to measure brand value and they are namely cost based and market based approach. Under Cost
based approach method current value of an organisation to other similar business is being looked
upon the trade multiples and its lack behind the measurement of the value of new product.
Whereas market base approach evaluation of maximum prices is being done so as to sell the
goods at the price which is affordable by the customers.
Thus, in order to measure brand value McDonald can take into consideration cost based
approach. With the help of this approach brand value is formed taking into consideration
replacement and production cost.

McDonald can also take into consideration continuous innovation method in order to
manage brand value because taste and preferences of the customers keeps on changing. So it is
very essential for the firm to analyse on a continuous basis and innovate product taking into
consideration preferences of customers (Pieper, 2012).
Brand awareness is the level in which the customer terms to be aware about the product
and services rendered by the firm. In addition to this it can be defined as the level or the extent
up to which consumer knows about the product details its quality, its benefits etc. There are
basically two types of measure which can be used to measure brand awareness and they are
namely survey and social media approach. Surveys through e-mails, by meeting customers
personally can be done so as to known the extent upto which customer are aware about its
products. Whereas through social medial also company can determine its brand awareness by
looking at likes, comments etc.
So, in order to measure brand awareness McDonald takes into consideration Surveys
approach. As with the help of this approach by approaching individual to each customers
through em-mail and Instagram and via Facebook so as to ensure up to which extent customers
are term to be aware about the products and services that the McDonald is rendering. Whereas in
order to manage brand awareness management of McDonald can used sponsorship method like
by sponsoring some kind of events, sports etc. which will help in maintaining and creating
awareness about the product and services rendered by customers.
Market Share: Market share refers to the total share of KFC in food industry. Market
share is defined as portion in total market of restaurant industry. There are different techniques
which are required to measure market share of organisation. KFC can use total sales method and
total revenue method. As per total sales method, it can be calculated by dividing total sales of
industry with total sales of organisation.
In case of KFC total revenue method is used. As per this method, there is measuring of
total revenue of organisation which helps to analyse total revenue which can compared with total
revenue of restaurant industry. This helps to analyse in percentage also.
In order to manage market share, KFC use innovation technique which makes it different
from others. When some innovation takes place in product and services, then this is significant
for analyse market share of KFC in industry (Kim, 2012).

Customer Attitudes: Customer attitude refers to changes which are taking in perception
of consumers of Starbucks. Consumers are the asset which intents to make changes in product
and services. There are some techniques which are required to measure customer attitude.
Starbucks can use customer satisfaction survey and market analysis. As per market analysis,
there is regular check of trend prevailing in market which helps organisation in altering products
and services.
In order to measure customer attitude customer satisfaction survey is used by Starbucks.
This is the method which is used to analyse customer perception and this is significant for
working according to change in products and services.
In order to manage customer attitude, identification of customer perception. This helps to
get knowledge about change in features of products which is significant for getting success in
market.
Purchasing Intent: It refers to possibilities of purchase made by consumers. This
provides knowledge about sales of products serve by Burger King. Purchase intent can be done
by Burger King with theory of planned behaviour and funnel method. As per planned behaviour,
there is impact of one's behaviour on other. Hence attitude, behaviour shows intention and
perception of consumers.
For measuring the purchase intent, Burger King use Funnel Method. The main focus in
this method is on purchasing behaviour of consumers and the price in which they buy products.
For managing the purchase intent, Burger King use customer Interaction among Social
Media. In this method, consumers share their views on social media to analyse their views and
then changes are made in product and services offered (Vaiman, Scullion and Collings, 2012).
CONCLUSIONS
From the above project overall, it can be concluded that brand equity and brand
awareness is term to be an essential aspect for every organisation as without it company cannot
exist for long period of time in marketplace. Therefore suitable methods and techniques must be
adopted by the organisation so as to maintain and to measure brand awareness, equity and brand
image in marketplace. In addition to this it can also be summarized that evaluation of the
different measure were also done so as to measure brand value like through survey, social
media, cost based approach etc. Moreover different strategies of portfolio management, brand

hierarchy and brand equity management like house of brand , mixed brand strategy, corporative
brand, continuous differentiation etc. were also explained in this above report.

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