The Core Concept of Brand Management
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Added on 2020-06-05
The Core Concept of Brand Management
Added on 2020-06-05
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Brand management
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Significance of branding a marketing tool ............................................................................1P2 Key components of successful brand strategy and managing brand equity..........................4TASK 2............................................................................................................................................6P3 Various strategies of brand hierarchy, portfolio management and brand equity management.....................................................................................................................................................6TASK 3............................................................................................................................................1P4 Brands are managed collaboratively and in partnership........................................................1TASK 4............................................................................................................................................3P5 Various kinds of methods and tools for evaluating and managing brand value....................3CONCLUSION................................................................................................................................5REFERENCES ...............................................................................................................................6
INTRODUCTIONA brand consists with name, design, term, symbol and other features which distinguish aproduct or an organisation from its competitors. Brands can be used in effective advertising andmarketing so as to attract and retain customers' interest for long time of span. It is essential forevery corporate association to manage their brand in order to accomplish better future outcomes.The core concept of brand management encompasses certain aspects, i.e. customer satisfaction,competition, cost and in-store presentation (Ashworth and Kavaratzis, 2010). It is one of theessential feature of marketing that aids company to reach large group of customers in a minimumtime frame. In this relation, business organisations have to focuses on improving their brand byadding values in products and services. The assignment is based upon Volkswagen AG; its amultinational automotive company which manufacture commercial vehicles, engines,motorcycles and other services. It is spread over 27 countries and the overall production outputof the company is 10.41 million. Apart from this, the report is going to be describe importance ofbranding for making successful business practices. There will be a discussion on variousstrategies of portfolio management. Management is required to utilise different strategies inorder to manage brand value of the organisation. TASK 1P1 Significance of branding a marketing tool In this ever changing environment, it is essential for every business unit to attain andretain numerous customers for long term period. For this purpose, it uses different marketingstrategies like – advertising, promotion, branding, public relation so as to gain high competitiveenvironment. Thus, it is necessary for multinational business units to create strong and positivebrand image among customers so as to accomplish high competitive edge. Products which areprovided by company should be able to capture consumers' eye and retaining their interest forlong term period. Building effectual image and appealing names is really fundamental for automobile sector (Bigné, Currás-Pérez and Aldás-Manzano, 2012). In addition, Volkswagen is oneof the greatest and leading brand in auto mobile industry; in 2016 it has become number one automaker in terms of sales by beating Toyota. Whereas Ford is also an international brand whichdeals in same industry; it owns sells luxury vehicles, automotive parts, commercial vehicles etc.The overall revenue of Ford is US$151.8 billion and its net income is US$4.596 billion. 1
Branding strategy of company: -Volkswagen has a positive image in terms of reliability.Its slogan, “from love to the car” intends the effective brand value of the company ininternational market. The upcoming brand strategy of Volkswagen is to make deals on cost cutsand investments agreed with labour representatives. By 2025, it wants to sell 1 million electricvehicles per year so as to become market leader at global level in electro-mobility. There is defined different types of brand, such as - Individual brand – It is the common type of brand which consists with tangible andindividual product, like cars. Individual brands can be very specific and involves avariety of products (Brodie and et. al., 2013). Service brand – Such brand develops when firms moves from manufacturing todelivering goods to its end users. In addition, service brands are characterised in order tocope a consistently higher level of delivering services. It includes, classic service brands,agents, retail brands etc. Organisation brand – It entails with companies and further units that supplies productsand services. Volkswagen has possessed with strong brand and associated with requiredqualities. Both organisations used and implement different strategies and tools so as to create abetter image of the company, like unique logo, packaging etc. therefore, it can said that the mainobjective of branding is to abolish a differentiate presence at marketplace which bring loyalcustomers. If a firm a large number of loyal buyers then it can easily achieve its goals andobjectives in a certain time period. Along with this, branding also helps in conveying business'aims to its target customers (Buil, De Chernatony and Martínez, 2013). For example-Volkswagen and Ford's aim is to quiet luxury. Hence brand management is a managementapproach because it is not only limited with customers interaction but also encompasses tomanage all operations in a systematic manner. Branding reinforces and raise customers'experience by communication company's promises to its target buyers. On the other hand,marketing is assistive in promoting goods of the firm so as to reach maximum customers. Importance of branding as an emergent business practices: - Building trusts – The main role of branding is to generate trust and faith amongcustomers as they can willing to products and services of the company. In this modern era,people only want to purchase qualitative and value added products and if they get the same this2
would really helpful in building trust towards the organisation and its products as well.Volkswagen always come up with unique designs and innovative ideas in market; it is trying tolaunch to electronic vehicle until 2025 so as give something new to customers. Thus, brandcreates a connection with clients which raised sales revenue and profitability of the firm. Inspire employees – Another role of branding is to inspire employees, as people feelconfident and pride if they work with a leading brand. In addition, staff members are the majorfactors who provides services and contribute in accomplishing organisational goals andobjectives (Christiaans, 2012). Human nature always need more than work that encourage themto attain and retain at workplace for long term period. Thus, management have to involveemployees in its decision making process as they can easily understand vision and mission of thecompany. Volkswagen is an effective brand that attracts workers to work here. Improves recognition – Brand logo is the essential element that helps in making specificjust because customers will know a products by its brand or fame. In this manner, it can be saidthat brand is like asset of the firm that differ its from other. Volkswagen has professional logothat always remain in shape of W in customers' mind. The prime aim of brand logo is to showthat what an organisation deliver to its clients. In customers' perspective, brand equity is basedon buyers' behaviour towards positive brand attributes. It also provides financial benefits to thecompany that allows organisations to make premium prices of its products. For instance –Volkswagen has a great brand equity that helps the firm to expand its product lines. It resultsenhancement in sales and profit revenues of the business organisation whereas in certain cases itreduces costs. Beside this, a brand is totally differ from product which can be defined with its tabularstatement: - Product Brand An item ready for sale and earning profits inmarket. Distinguish a product from its rivalsIt is what individual needIt is what customers want Can be copied or easily replaceable. It isproduced by manufactures.Cannot be copied or replaced and created bycustomers' mind. Product in tangible and perform specificbusiness functions. A brand is intangible and offer values to targetaudiences. 3
P2 Key components of successful brand strategy and managing brand equityThe term brand equity consists a set of brand asset and liabilities which are associatedwith brand name and add in the values of products and services of the company. In other words,its an intangible assets which depends on associations that are made by customers. Along withthis, a well establish brand can be used a platform to launch other products and services. Thus,advantages of brand extension are – leveraging of current brand awareness so as to reduce themarketing expenditures (Dempsey and Gruver, 2012). In order to manage its brand equity Volkswagen tries to scandal's its ethical issues. Asseveral customers are entitled to environmental friendly cars; it should be treated as majorrequirement for any auto mobile industry. In 2016, Volkswagen was faulted as most of its carswere affected but the firm offers an apology in front of all stakeholders. Then Volkswagen buyback all these cars and fix them to respond quickly to fulfil environmental needs. Furthermore,the auto mobile manufacturer also tend to connect with local customers. In order to maintainbrand equity, it is essential for Volkswagen to provide qualitative and value added products andservices to customers so as to enhance its credibility. But sometimes customers get misguideddue to the availability of different brand in market. 4
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