Creating and Managing Brands

This document provides a comprehensive guide on creating and managing brands. It covers topics such as brand image, marketing strategy, target market, market segmentation, product positioning, marketing mix, and measuring brand equity. The content is relevant for students studying marketing or business courses.

Running head: CREATING AND MANAGING BRANDS 1
Creating and Managing Brands
Name
Institution

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Table of Content
Table of Contents
Creating and Managing Brands...................................................................................................3
Introduction................................................................................................................................3
Brand Image...............................................................................................................................5
Marketing Strategy....................................................................................................................5
Target Market........................................................................................................................6
Market Segmentation............................................................................................................6
Product Positioning...............................................................................................................8
Marketing Mix.......................................................................................................................8
Measuring Brand Equity......................................................................................................9

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Creating and Managing Brands
Introduction
Movies and TV series are growing popularity amid stiff competition. Games too are
gaining popularity with children as technology has revolutionized how they experience games.
At the same time, movie and games cafes are becoming a common trend in reaching out to the
market. Beside accessing movies online through TV boxes like Netflix, people buy DVDs and
visit cinema halls for thrill and classical experiences. An article by McDuling shows how
Australians love Netflix (McDuling, 2018). The graph below shows total international
subscribers estimates by 2022. The market growth in Netflix is a perfect replica of the increase in
the film industry. There are online sites where people access and buy movies and TV shows as
well as games on DVD and digital files. Thus, the initiative to have a movies and series outlet in
Sydney by Marvel Studios is a step towards reaching out to the broader market.

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However, over the last decade, Sydney has seen the closure of more than 200 DVD stores
as people shift to watching movies and TV shows online through iTunes and Netflix (Maddox,
2018). Also, most games are available online. The era of people renting movies has slowed to a
halt. It was after Civic Video closed its stores at Bondi beach and hence followed the suit of all
the Blockbuster, VideoEzy and other stores. Nevertheless, the market still exists and can be
accessed using creative strategies. In the internet era where movies are available online
production studios can open stores to act as their outlets. The approach is different from the
previous one, where entrepreneurs had stores to sell films and series from different producers.
On the other hand, the game market is making a tremendous growth from $134.9 billion
in 2017 to $135 billion in 2018 (Batchelor, 2018). More than 47 percent of revenue was derived
from mobile accounts with smartphones taking the most significant share of 14.2 percent and
tablets accounting for 7.8 percent. Personal computers accounted for 25 percent of the global
games market, which includes box, downloads, and browser games. It is, therefore, evident that
the availability of games online has reduced DVD renting. However, the use of virtual reality in
gaming has increased the demand for café that offers such services to children.
Marvel Studios is an American film studio and a subsidiary of Walt Disney Company.
The studio is famous for its production of Marvel films that scoop high returns in the global box
office. The company is also known for the production of X-Men, Spider-Man, Avengers, Iron
Man among others. Marvel studios are competing with Sony Pictures Motion Picture Group,
Universal Pictures, 20th Century and others. Besides, Marvel Games produce video games for
children. Some of the popular games include Marvel ultimate alliance 3, Marvel battle lines,
Marvel puzzle quest, and many others.

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Therefore, the establishment of Avenger café in Sydney that has the brand name of
Marvel Studios will be a revolutionary approach to movie and games stores. The Australian
market is large and home of movie stars. According to IBISWorld (2019), the cinema's industry
is growing to reach an annual $1.8 billion, which represents a growth of 0.4 percent. The
increase is despite the intense competition from another source of competition such as video
streaming and film piracy. Avenger café will be showing the latest productions from Marvel
Studios and will be available for purchase by customers, have a cinematic theater, and virtual
reality arena. In this context, this report will evaluate, analyze, and recommend the marketing
and brand strategies for Avenger café in Sydney.
Brand Image
The brand image that the company seeks to inspire is the thrill of entertainment and
proactive experience. A brand image is the perception of the brand in the mind of the consumers
(Pahwa, 2017). It constitutes the beliefs, ideas, and impressions that the brand has to the
customers. The entertainment aspect of the café will come from theater movies, arena games,
and purchases of company products. While the proactive experience will be found in virtual
reality games. The name “Avenger” is a film production series name by the Marvel studio’s
“Avenger: Endgame” 2019 series. The café will use themes for Avengers to identify it with the
Marvel studios. The strategy is to make the café memorable and feel part of the Marvel
community. Customers will see it not as a separate entity, but a subsidiary of the Marvel
company and hence will have its goodwill and reputation. Also, Avenger café will only deal with
movies and shows as well as games produced by Marvel Studios. People who identify with the
company products will have the opportunity to buy, watch, and play games at the café. The
primary goals of the café are to promote parent company products.

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Marketing Strategy
The game plan to reach out to the target customers and to create awareness of the existing
customers will be analyzed in this section (Chan, 2019). Thus, it is vital to develop a marketing
strategy for Avengers café. The analysis will ensure the products and services meet the needs of
the customers, which will result in long-term value creation. The marketing strategy needs to be
flexible enough to respond to market changes and customer perceptions. Hence, the market
strategy identifies and communicate value to the target market.
Target Market
Avenger café will operate in Sydney city and target all film and game lovers. Notably,
the virtual games target children who love virtual games. Sydney is Australia’s most populated
city in with a population of over 5 million people. Australian Bureau of Statistics (ABS)
predicted that the population in the city would soar to more than 5.73 million by June 2019
(Australian Bureau of Statistics, 2019). Avenger café is also aware of the occupations and
income of the population. According to ABS, the main occupations of the people in Sydney are
32.9 percent of professionals (ABS, 2019). Also, more than 31.6 percent of households in
Sydney City earn more than $2,500 per week in 2016. The income is a good predictor of
propensity to spend on entertainment. Thus, since most people in Sydney City earn a decent
income, can afford to pay on movies and games for their children’s entertainment.
Market Segmentation
The market segmentation is the research that determines how the company will divide its
customers into smaller groups based on demographics, needs, priorities, shared interests, and
other psychological or behavioral criteria (Markey, du Toit, & Allen, 2008). By understanding
the market segments, Avenger café will leverage the targeting in products, sales, and marketing
strategies. According to a study by Brain & Company, 81 percent of executives take keen
interests in segmentation as a fundamental element in revenue creation. Hence, if Avenger café

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has a great segmentation strategy, it will increase the profit by 10 percent. The first segmentation
will be geographic segmentation. Avenger café will operate within Sydney City. The population
in the city have higher propensity to spend on personal entertainment and their children. Urban
consumers are different from rural consumers in terms of needs, preferences, and interests that
are unique in all geographical regions. Sydney, as the location of interest, will determine that
approach of sales and advertisement.
On the other hand, the demographic segment of Avenger café will be young adults who
love movies and games as well as children. Young people mostly love videos, while children
most love games. The marketing strategies will target young people and children. Psychographic
segmentation will focus on consumer traits, values, attitudes, interests, and lifestyles. As such,
Avenger café must learn about young people and children behaviors. For instance, we will use
themes that are attractive and can trigger interest for them to enter the business premises.
Eventually, the company will not forget to consider the behavioral aspect of the target market,

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which includes decision-making patterns like lifestyle, consumption, purchase, and usage. For
instance, young people are likely to purchase games and movies since they are free. It will enable
the company to use more targeting approach.
Product Positioning
The positioning of Avenger café will take the form of marketing that will present the
benefit of the movies and games to the target group (Chen & Sheu, 2017). The company will use
market research and focus groups to determine how to reach the audience based on their
preference in the product. Notably, the company will use product positioning to learn how to best
communicate products’ attributes to young people and children through parents. Avenger café
will also consider the competitive pressures in deciding the positioning elements to use. As such,
Avenger café will use messages that are friendly to young and children consumers. For instance,
using cartoons and animations. Positioning will also determine the communication channels to
reach young people and children as well as their parents. For example, the company will use
social media and television adverts as young people are likely to use social media like Facebook
and WhatsApp and tend to follow television shows.
Marketing Mix
Avenger café has to harness the benefits of the marketing mix model. The model is used
to strategize the way to take the product to market. Marketing mix defines the marketing options
in terms of prices, product, promotion, and place regarding customer needs and demand (Datta,
Ailawadi & van Heerde, 2017). Lack of the right marketing mix results in a disoriented
marketing campaign.
The marketing mix is called the 4Ps of marketing. The Price refers to the value they
brought to the market. The value of the product depends on the cost of production, market
segment, market forces, and target group ability to pay. Avenger café will use cost and value-

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based pricing strategy. That is, games and movies will be priced depending on the cost of their
production and demand created by the company reputation. The Product refers to the item of the
goods sold. The performance of the product in the market is critical. Thus, Avenger café will
provide premium services and products to its customers. The Marvel games are quality and
available in virtual reality. The games are derived from previous movies that make it possible for
gamers to play a part and immerse in the real experience. The movies section of the café will not
only sell but market the Marvel Studio movies. The movies are of high resolution and will be
available in paid boxes for streaming and download.
Furthermore, the Place is the point of sales. Avenger will establish a point of sale at
Sydney City in Hawkesbury. Sydney is the place Avenger café will catch the attention of the
consumer and make it easy for them to access the company services and products. The location
is an essential element in successful businesses. The place should be strategic. Additionally,
Promotion includes all the activities that Avenger will undertake to create awareness to the
consumers. The company will use advertising and prizes as well as a mix of other strategies of
creating awareness about the company products and services. The main advertising media the
company will use is social media since the majority of young people use social media platforms
to communicate. For instance, Avenger café will create a Facebook, Twitter, and Instagram
pages through which it will communicate to its customers. The company will also make social
media advertising using movie trailers and ads in video clips.
Measuring Brand Equity
Brand equity is the commercial value derived from the perception of consumers to the
product but not the product itself (Keller & Brexendorf, 2017). The brand equity will be
measured using the reputation of Marvel Studios. Also, the Avengers café will use the parent
company branding, including colors, logo, and tagline. Avenger café’s name is borrowed from

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the movie “Avenger” which is a well-known movie series in Sydney. The café will use a theme
that resembles the “Avengers” in the film. Thus, using the name as the business name will help
create the perception of quality and customer loyalty.
Branding Theories
Branding theories are an important element in determining the perception to create to the
customers. The best branding theories are traced back in the classical sociology, which studies
consumer behavior in response to the brand. The models include functionalism, conflict theory,
and symbolic interactionism. Besides, other brand theories like double jeopardy effect and
duplication of purchase law are also used in creating consumer influence. However, the most
appropriate will be used.
In this context, the most applicable brand theory is functionalism theory, which is
applied in creating a brand that is playing the role of bringing the society together. The theory
posits that a brand can be seen as holding the society together through its value to the same
community. Avenger café is a multinational brand derived from Marvel Studios which has
produced films that depict various political, economic and cultural backgrounds. As such, using
multiple filming approach and experiences, the café provides a social identity across
communities in society. Moreover, the use of theater to display films and virtual games arena
brings people together. Hence, contributing to social cohesion and harmony.

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References
Australian Bureau of Statistics. (2019). Sydney population, 2019. Retrieved from
https://www.population.net.au/sydney-population/
Batchelor, J., (2018). Global games market value rising to $134.9bn in 2018. Retrieved from
https://www.gamesindustry.biz/articles/2018-12-18-global-games-market-value-rose-to-
usd134-9bn-in-2018
Cahn, J., (2019). No-plan = No customers: How to build a profitable marketing strategy.
Retrieved from https://foundr.com/marketing-strategy/
Chen, Y. J. & Sheu, J. B. (2017). Non-differentiated green product positioning: Roles of
uncertainty and rationality. Transportation Research Part E: Logistics and Transportation
Review, 103, 248-260.
Datta, H., Ailawadi, K. L., & van Heerde, H. J. (2017). How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response? Journal of
Marketing, 81(3), 1-20.
IBIWorld. (2019). Cinemas - Australia Market Research Report. Retrieved from
https://www.ibisworld.com.au/industry-trends/market-research-reports/information-
media-telecommunications/cinemas.html
Keller, K. L., & Brexendorf, T. O. (2017). Measuring brand equity. Handbuch Markenführung,
1-32.
McDuling, J., (2018). Australian loves Netflix. But does Netflix love Australian? Retrieved from
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a-cost-20180308-p4z3cm.html

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Maddox, G., (2018). How one of Sydney's last DVD stores has survived iTunes and Netflix.
Retrieved from https://www.smh.com.au/entertainment/movies/how-one-of-sydney-s-
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Markey, R. du Toit, G. & Allen, J. (2008). Find your sweet spot. Harvard Management update.
Retrieved from https://hbr.org/2008/02/find-your-sweet-spot-1.htmldem
Pahwa, A., (2017). What is the brand image? Explanation and examples. Retrieved from
https://www.feedough.com/brand-image-explanation-examples/