Brand Management and Equity Study

This assignment provides a detailed examination of brand management, including research theories and practices. It covers topics such as customer-based brand equity, line extension brands, and the interplay of innovation, brand, and marketing mix variables in line extensions. The study also discusses the relationship between gamification, brand engagement, and brand equity. Aaker's brand equity model and hierarchy management of Coca-Cola are highlighted. This assignment is suitable for students in marketing or business courses.

Assessment

Table of Content
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
TASK 1............................................................................................................................................2
Introduction............................................................................................................................2
Main Body..............................................................................................................................3
Conclusion..............................................................................................................................5
LO 2.................................................................................................................................................5
TASK 2............................................................................................................................................5
Brand Portfolio strategy of Coco-cola....................................................................................5
Hierarchy management of brands...........................................................................................6
Strategies used for managing the equity.................................................................................7
LO 3 ................................................................................................................................................7
TASK 3............................................................................................................................................7
Presenting difference between line extension and brand extension.......................................7
Strength and weaknesses of Coco-Cola.................................................................................8
Collaborative and Partnership agreements.............................................................................9
LO 4...............................................................................................................................................10
TASK 4..........................................................................................................................................10
Evaluating the techniques used by Coca- Cola for measuring and managing ....................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Brand management is the analysis and a planning tool through which the brand is
perceived in a market. The report is divided into two parts, in first part report provides an
overview of brand and brand equity of Diesel S.p.A. which is retailer firm who offers clothing,
footwear and accessories. Further this part also covers that how the firm can build successful
brand by using various stages and models.
In second part, the chosen company for this report is Coca-Cola which is one of the
largest and top leading alcoholic beverages firm and the report will describe its brand portfolio
strategy with its hierarchy management of brands. Further it describes the strength and
weaknesses of a firm and its collaborative and partnership agreements. Lastly, the report evaluate
various technique which is used by the quoted firm in order to measure the brand value,
awareness, market share and purchasing intent.
LO 1
1

TASK 1
“Brand is Power”
Introduction
Brand is the main key aspect of a company and a brand is a symbol, mark, logo and the name
which a company uses in order to differentiate the firm from other. Thus, a brand name can
create and stand for a loyalty, trust, faith that depends on how the brand is marketed, advertised
and promoted. In the similar way Diesel S.p.A. is a leading retailer firm that also launched a
marketing brochure names 'Brand is Power' that outlines equity stages of building successful
brand (Jugenheimer, Sheehan and Kelley, 2015).
Brand equity is a marketing term which describes the value of a brand such that the value is
determined through a consumer perception and the experience of a brand.
Benefits of a branding A strong branding helps to build a recognition and a customers' loyalty
which means that when a customer is shopping for a specific product then they feel comfortable
and also enjoy the best quality. Further it also helps to gain high competitive advantages that
leads towards a success. As it also build the financial value for a business and creates trust in the
mind's of customers of Diesel S.p.A. .
Stages of building a successful brand
As it is specified that the branding is the necessary aspect for every firm and by developing an
attractive logo and tag- line which reflect a product as a brand and then implement it by publish
it on website. Therefore, the quoted firm also develop brand using brand pyramid which
includes some stages such as technology of competitor, the company has to design its brand
accordingly to sustain in the market.
Its stages are, identify the target audience by creating the marketing objectives
, determine the tag line and a brand mission
, Creates the value proposition through a visual research or market communication
and then examine the sustainability of a brand and continuous monitoring is necessary.
The role of marketing department for creating brand equity:
In Diesel S.p.A. , the market department plays a crucial role in order to create brand equity such
that the department helps to promoting the defined goals as well as objectives with other
functional areas of a quoted firm (Rauschnabel and et.al., 2016). Therefore, the marketing
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communication is essential for establishing the level of similarity and difference with a
competition and to make good impression which helps to develop a strong consumer based
brand equity and long lasting relationship with the customers.
Main Body
Strategy for strengthen up brand equity
To strengthen the brand equity, the quoted firm should never let down the quality of the
products which they are offer and through visual research an organization should offer those
products which are in demand that helps to build loyal customers. Beside this, for strengthening,
the consistency is the foremost requirement for a firm.
Aaker's brand equity model
Diesel S.p.A. which is retailer firm who offers clothing, footwear and accessories, who operates
its unit at global level and this model is used to enhance the customer ability in order to interpret
and customer process information. It also improves the confidence in purchase decision of the
customers and creates good impression upon their mindset. In order to strengthen up brand
equity, Apple should understand and implement the Aaker's brand equity mode and it is also
known as five asset model and consist of 12 dimensions which are organized in 4 perspectives
and these are mentioned below:
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Illustration 1: Aaker's brand equity model
(Source: Aaker's brand equity model, 2017)

Brand Loyalty:
It is the first stage and it refers to a commitment of customers to re-purchase. Such that the
Brand loyalty of Diesel S.p.A. is strong because they reduce the market cost and also maintain
their services in consistent manner and always fulfil the demand of their customers in order to
maintain loyalty.
Brand Awareness:
It helps to enhance the brand equity and to attain the loyal customers and for Diesel S.p.A, this
can be achieved by attach association which further assist in influence the brand awareness.
Moreover, it can be increased by making the customer familiar about the brand.
Perceived Quality:
It is a perception through which the firm can also offer extra in its existing products in order to
gain loyal customers and to maintain the brand equity (Heding, Knudtzen and Bjerre, 2015). In
the same way, the cited firm also offer high quality of products with the level of differentiation
in its competitive market.
Brand Associations:
It is the concept which come in customer's mind when the brand is talked about. Therefore,
Diesel S.p.A. also advertise for many companies in order to make itself recognised in the
consumer's mind and its services are cost effective.
Other Proprietary Assets:
It includes assets such as copyright, trademark and patent to make it differentiate from other
company and in the same way Diesel S.p.A. also uses trademark and patent to strengthen up the
brand equity in order to attain the high competitive advantages.
Brand Extension
It is the marketing strategy which is used by the firm in order to increases the brand equity. As
Diesel S.p.A. uses it in order to compete in this competitive market and increases the profit by
providing the best quality of services at global level to reach large mass group.
Brand Reinforcement
It refers to the maintaining the brand equity in order to keep the brand alive for existing as well
as new customers. This is possible only by effective marketing strategy such as advertisement,
exhibition etc. Therefore, it is suggested a firm to use different modern tool of marketing in
order to make the brand more effective in this competitive world.
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Brand Revitalisation
It is a marketing strategy which is adopted when the product is reaches to a maturity stage but
the profit has fallen suddenly (Elliott and et.al., 2015). That is why it is suggested to determine
the marketing and managerial actions which revitalised the brand in the mind of customers.
Conclusion
Overall, it is clear that Branding is the marketing tool which deliver the exact message and
vision of Diesel S.p.A.is to build a brand image in market and to gain loyal customers. Further it
also confirms the brand's credibility in a marketplace that emotionally connect the target
customers with a particular product. Moreover, it also generates revenues and also increases the
market share which helps to raise the financial performance of the firm.
LO 2
TASK 2
Brand Portfolio strategy of Coco-cola
Brand portfolio is the collection of a brand or an umbrella under which all the brands
lines of a firm which serve the needs of different market segments. This strategy basically
provides how a firm uses different brands and branding element that helps to drive a business
towards a success (Gómez-Suárez, 2019). Further this strategy also helps to identify how to
develop the optimal brand structure and to use other elements such as endorser brand. As Coca-
Cola is one of the leading soft- drink company that provides the consumer variety of own brands
and the products which includes Juices, water and snacks. Apart from this, it also includes the
brand such as diet coke, Coca- Cola zero, Fanta and Sprite at global level. The quoted firm
operates in around 200 countries with 400 brands. Thus, the strategy allows it by creating the
visibility of a brand.
BCG Matrix of Coca-cola: This model helps to classify their business products into 4
categories such as:
 Dogs: In this, Diet Coke and Minute maid is situated at declining stage because it does
not bring enough cash for a firm.
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 Cash Cows: Coca-Cola is the cash cows because it generates more cash as required and
also have high market share.
 Star: Thumbs up, Maaza and Kinley are the rising stars for Coco-Cola because it helps to
lead a large amount of cash generation.
 Question mark: Fanta and Sprite are fall under this category because they are not
creating to generate good cash because of high competition.
Hierarchy management of brands
Illustration 2: Hierarchy management of Coca-Cola
(Source:Hierarchy management of Coca-Cola, 2018)
Houses of Brands:
This strategy is generally used when the brand structure is characterized through a unique
brand name and each brand have their own USP and the firm did not use make awareness by
using its patent name (Essamri, McKechnie and Winklhofer 2019). For example, the Coco-Cola
is House of Brand and it introduces different product line such as Sprite, fanta which are
marketed by Coco-Cola as their own identity.
Advantages: It gives an ability for each sub- brand by defining a unique target audience,
as Coca-Cola do.
Disadvantages: It becomes costly because of using variety of marketing strategy
(Houses of Board and branded board, 2018).
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Branded house:
It is another form of brand portfolio under which the company itself is a brand. Such as
Coco-Cola also uses this strategy and offer variety of its line extension like Coco-Cola Classic,
Vanilla etc.
Advantages: Helps to sustain in the competitive world through this strategy (Xi and
Hamari, 2019).
Disadvantages: It affects the parent brand when a single product goes through any crisis.
Strategies used for managing the equity
Brand equity is that commercial value that is derives from the consumer perception rather
than from the product itself. Coca-Cola is the brand itself which is recognized by overall and it
also have the positive brand equity which a company is charge more for a product with great deal
of brand equity (Halder, 2019). Customer based brand Equity model states that the power of
brand resides in the minds of people. There are about four steps in CBBE model which are as
mentioned below:
Brand identity: The quoted firm main aim is to generate brand awareness that is why it
also utilise the market segmentation as well as unique selling proposition in order to determine
which action is more useful for attaining the desired results.
Brand meaning: Coca-Cola keep trying and developing all strategies in order to
maintain the brand image in market. As a result, it easily attains the defined goals in prescribe
time.
Brand response: For getting high response from their customers, the firm has to focus
on its quality of products offered (Anwar, 2018).
Brand resonance: The firm also provide reward system to those customers who remain
loyal towards the firm and it making new strategy for gaining high loyalty.
LO 3
TASK 3
Presenting difference between line extension and brand extension
Brand leveraging Is the strategy that is used the power of existing brand name in order
to provide support to a firm for entering into new country or introduce new product. This
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strategy also helps to communicate important and valuable products information to their
customers about the new products (Ahmed and et.al., 2017).
Brand Extension is a market strategy that is used by the firm in order to introduce new
product category. It is one of beneficial strategy for the firm in order to extend the brand name
and there are two types of brand extensions which are as follows:
Line extension Brand extension
It refers to the expansion of an existing product
line in which the parent brand is basically used
in order to introduce a new product within new
market segment.
This is also used for expansion of a brand into
new market.
It means that the quoted firm is offering
different variety of services as well as goods
within the same product line.
Brand extension means that the brand itself
expanded their current existing business into
different product line (Sinapuelas, Wang and
Bohlmann, 2015).
For instance, Coca-Cola itself introduce its
new product such as diet and Cherry where the
base line is Coca-Cola.
For instance, Coca-Cola is also expose the line
of juice and its new mineral bottle such as
Fanta, Sprite and Kinely.
There are various techniques which can be used by Coca-Cola in order to extend and leverage
the brand, such as;
 Line extension strategy
 Brand extension strategy
 Stretching the brand vertically or horizontally
 Co-branding
Strength and weaknesses of Coco-Cola
Strength:
 The firm has its brand image in market and also have the largest market share at global
market (Keller, 2016).
 The firm also invest high amount in marketing as well as advertisement so that the people
will let know about the new products offered by the quoted firm. .
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 The firm have high company evaluation and extensive distribution network with strong
brand portfolio.
Weaknesses:
 The firm faces tough competition with the rival firms and it also affect the brand image as
well.
 Due to sudden fluctuation in currency, the brand image of Coca-Cola also get affected
 As the firm mainly deals with drink products and now people have become more
concerned with their health such that obesity and diabetes and as the firm itself is a major
carbonated drink manufacturer which contributed to the obesity epidemic (Shimizu,
2016).
Recommendations: It is to be recommended to Coca-Cola that to innovate some
marketing tactics and strategies such as bring new features related to their advertisement process,
firm should innovate new ideas to keep connecting to new customers so that it effectively
compete and be superior to its competition. Further, the firm may also bring some low
carbonated sugar free drink which can be considered as a smart move.
Collaborative and Partnership agreements
Collaborative and Partnership are those agreements which are made by willing
organizations in order to share resources in order to attain the defined goals of a firm. In the
same way Coca- Cola also do Collaborative and Partnership in the form of Co- branding, it is a
strategy in which two or more brands come together in order to deliver services through
collaboration with one audience. Some collaboration and partnership are as follows:
 The firm have collaborative agreement with McDonald's since last 1955 which is quite
beneficial for both the brands because their main aim is to expanding the business at
global level.
 Coca-cola also have different partnership with sports such as it sponsored English
Football League from 2004 and along with it, the firm also sponsored Coca-Cola Football
Camp, during 2010 FIFA World Cup (Punjaisri and Balmer, 2016).
 It also sponsored the popular Fox singing competition series American Idol from 2002 to
2014. Apart from this, Coca-Cola also take sponsorship of Theme parks with Walt
Disney park and resorts.
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LO 4
TASK 4
Evaluating the techniques used by Coca- Cola for measuring and managing
Brand value: It refers to the net present and future value of a cash flow that is
attributable for brand and it is also known as brand equity (Chung and et.al., 2017). It can be
measured by number of repeat purchase, customer loyalty towards a product, competitive
strength of a brand and the role of brand which influence purchase decision of their customers.
As Coca-Cola uses Differentiation and customer engagement in order to manage the brand value.
Brand awareness: It refers to that extent in which the customers are able to recall or
recognise that brand (Brand Awareness, 2018). As Coca-Cola is well known brand at global
level and it also uses social listening and survey n order to measure the brand awareness. Apart
from this, it has unique marketing strategy that helps to increase its brand awareness and even by
using innovation as another strategy which is helpful for generating more brand awareness.
Market share: Basically it is a percentage of an industry or a total market share that is
earned by a specific firm in a particular period. For Coca-Cola, it has a wide market share and by
using collaborative and maintaining good customer relationship, the firm will increases its
market share and not it occupies around 48 percent of the market share (Romaniuk, Dawes and
Nenycz-Thiel, 2018).
Consumer attitude: It is defined as a feeling of favourable and unfavourable which an
individual have towards a particular object. It is basically comprises a belief, feeling towards
and behavioural intentions towards a particular object. In the context of Coca-Cola, the firm used
research and social listening in order to analyse the customer attitude and further discount pricing
is another technique that influence customers to buy products from the quoted organization only.
Purchase Intent: It is the amount that a customer will buy a product and a service and
Coca-Cola uses customer survey technique in order to measure the purchase intention of
customers (Baker, Shin and Kim, 2016). The main goal of assessing the purchase intent is to
deliver the right message to right audience at correct time.
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CONCLUSION
By summing up above report, it has been concluded that for a particular organization
branding the essential key aspect that helps to sustain its brand image in market. As report
explained the brand and brand equity with its benefits for Coca-Cola. Further, it also concluded
company's brand portfolio and different strategies which are used for managing the equity of
brands or reinforcement strategies for the growth of a firm. It also critically evaluated the brand
extension and leverage by concluding company's strength, weaknesses and its collaborative and
partnership agreements. In order to sustain its brand image in market, report further concluded
different techniques which is used by Coca-Cola.
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