Brand Management and Brand Equity Models

The provided assignment is a comprehensive report on brand management, covering its significance, components, and tools for building brand equity. It explores different models of portfolio management and methods for measuring brand value. The report also touches upon the challenges of macro-environment factors in developing a brand, as well as extension approaches and strategies. It concludes by emphasizing the importance of brand management and its application in real-world scenarios.

BRAND MANAGEMENT

Table of Contents
INTRODUCTION..........................................................................................................................1
Section1............................................................................................................................................1
P1 Importance of branding as a marketing tool..........................................................................1
D1 Understanding of branding within an organisational context...............................................3
P2 The key components of a successful brand strategy for building and managing brand
equity...........................................................................................................................................3
M2 Applying appropriate example ............................................................................................4
Section 2...........................................................................................................................................5
P3 Different strategies of portfolio management, brand hierarchy and brand equity ................5
M3 Analysis of portfolio management and brand equity with the using of theories and
models : ......................................................................................................................................6
P4 Brands are managed in partnership both at a domestic and global level...............................6
M4 critically evaluation of techniques used in leverages and extend brands ............................7
P5 Different types of techniques used in measuring the brand equity .......................................8
M5 Critically evaluation of techniques used in brand valuation : .............................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Maintain good relationship with the targeted market and analysis and proper planning of
the brand which will be perceived in that market is called Brand Management. There are two
things related with branding i.e. tangible and intangible factors. Branding is done for the
customer satisfaction, to maintain reputation in the market, for competition and for positive
results. A brand should remain favourable to the customers and correct branding gives more
sales. It is the responsibility of marketing manager to uphold the brand of the company. This
report is based on the brand management of two retail companies H.M. And Zara.
Section1
P1 Importance of branding as a marketing tool
A brand is a strong marketing tool of a company and is different from services, products
and other related concepts. It takes trademark from an licensed agency. It is a process of creating
an identity of a product in the minds of people. It is important because branding of any product
makes mark or position in the marketplace and leaves an impression on the customers. It differs
the product from other similar products standing in the market or can be said that products
complete clarification of products is done through branding. It helps in establishing the business
in a very strong and powerful manner(Heding T. Knudtzen C. and Bjerre M. 2015). Through
branding only H.M. And Zara have grown so vastly. All employee who work in the company
with the respected brand help employees to boost up in their satisfaction and pride. Other than
this H.M and Zara have built up strong trust through branding. Brand is also considered as an
asset of the company. It is as important as sales and revenue are important. Brand helps in
creating referrals. People listen brands, eat brands and wear brands and continuously they
promote brand whatever they like. Marketing elements, company's staff members all comes in
brand as they make promise to the customers and represents company. It helps in generating
clarity and centred(Jugenheimer D. . Sheehan K. and Kelley L.D. 2015). The are six factors that
H.M. And Zara follows to maintain perfect branding. Person is the targeted audience in B2C
which takes interest in purchasing product while in B2B buyer is the targeted audience. Keeping
promise for the brand is very important as it fulfils the expectations of the customers. Brand
perception is another which decides what kind of brand has to be launched in the future.
Perception clears the type of branding the customers are looking for. It can the new market with
1

the low price for the products or may be the market has to move on completely. Brand has its
own personality and the type of customers engaged with it. It can be said that brand “speaks” on
its own. Lastly Brand positioning is there which can be described as the place a brand holds in
the mind of the customers. It tells how strong the brand uphold the position in the market and
gives a challenge to its competitors. It includes brand equity, packaging , logos. Brand value
describes the band equity of a product which is a marketing term. It is related with the
experiences and perception of the brand. Brand perception is developed in the market which is
called brand management. Brand management includes flexibility in empowering the work,
consistency, and a complete brand model which is prepared within different marketing
strategies. Commercial messages are are thrown to consumers everyday and main focus on
investment is also done. Brand Valuation shows the effectiveness in the form of customer
reaction. Sometimes readjustment is also done for the better profit and sales and good margins
can be attained by reducing overhead expenses. Brand strategy thinking is another way of brand
management which means to focus on the ideas applied instead of applying the new ideas.
Companies cooperate with the brand community through crowd beginning such as selling
metrics, availability of products, pricing strategy and product designing. H.M. And Zara have
faced many challenges n branding. Some organisations neglect the main focus on branding as
brand should always be treated as an asset. Brand should motivate employees, go with
customers, and campaign related to brand building should be conducted. New subcategories with
essential innovation and an ability to manage that subcategory should be there. More
breakthrough ideas from more sources, evaluation of that ideas and putting them into market in a
very quick manner. A special mindset is required for this dynamic, complex era. A brand should
be extended into a product class and should enhance itself through new contents. So keeping a
powerful vision, building digital strategy, creation of new subcategories are some challenges
faced in branding.
M1 Brands are managed successfully over time using application of appropriate theories, models
and concepts.
Strengthening brand equity is a way of managing brand management over time.
Marketing programs which are used for developing brand knowledge are organised. . Brand
association and various aspects of brand values brings brand knowledge. Every brand faces some
2

challenges during its promotion. Focus on brand awareness should be there and brand
positioning should be there. Enhancement in the brand logos, symbols should be there. Strategies
regarding brand management should go for the sustainability of the companies for a long run.
CBBE model also plays role in the brand management by knowing what are the expectations of
the customers.
D1 Understanding of branding within an organisational context.
In organisation branding is an important element which decides the profit and sales of the
product. It comes under marketing section and helps in the price product to rise up in the market.
It reflects the main value of the brand and that can be any brand like service, product, corporate
etc.
P2 The key components of a successful brand strategy for building and managing brand equity.
For the successful branding and to achieve higher goals, brand strategy can be defined as
a long term goal which is executed through all prospects in business and is directly connected to
the customer. There are tangible and intangible things involved in branding like fonts, colours
and logo etc. and the image of the company and the feelings of the customers and the brand's
reputation are manageable. This branding is done by doing things hard and with perfect brand
strategies. Before developing a brand how, what and who of a business should be known. Most
customers mind goes on visual branding of the products like on its logo and the way it is
designed. But the other elements are built strong brand strategy. Firstly brand positioning comes
which is an important to consider out. A company always get its return on the ideas and the time
it has spent on its branding. Positioning of the brand means the place placement of the brand in
the marketplace. Promising the value of brand is another core factor of the brand strategy. It
shows the relationship between the customers and their expectations related to different kinds of
brands. Primal human wants are satisfied through the expression of branding. Zara and H.M.
made the promise of bringing innovation in the products. Brands are have their own value and
are unique which differentiates them from their competitors. A brand should always speaks to its
customer needs. A brand should serve the untouched population and stand out in the competitive
market. Creating strong brand personality is very important. It includes photo styles, fonts, voice
tons, identity of brand and if once it is developed then it helps in achieving profit and sales at
3

higher level. Zara and H.M. Are brand personalities whose products are empowering , robust and
real. Authenticity is required in the management of branding. Customer should be aware of what
that brand is for and the work position of the brand. It is the way of touching the lives of people
in actual ways. It is a meaningful story which combines of promises, differentiators and
personality. A brand story is way of how the people who bring new ideas in the company joins
with the gathering or customers individually. Brand equity can be managed in various methods
but it very difficult to measure. If the perception and acknowledgement level of the branding is
is faster and higher then the brand equity will be high. This perception has greater effect on
brand equity. Low acknowledgement level does not lower down brand equity. For successful
brand equity there should be understanding of the brand in the minds of customers. It is not easy
to measure quantitative aspects of brand equity. The question always arises on what kind of
brand we are managing and what the company has to manage. The brand managers should know
that if their brand has a monopoly in the market than what it is providing and if not then what the
competitor's brand are providing so that company's brand can take the stand in the market. There
is no big level of effect of on present state of brand equity as in what the brand is standing for
and what the brand should be. There should be authenticity in the branding of the products. For
the development of brand equity and its management level the current state act provides an
important guideline. There are many worldwide organizations which practising research and
managing brand equity. In these research campaigns the main goal is to supervise, explore and
measure the standing's of the brand based on the parameters of its placements in the marketplace.
Positive development of the company is purely based on the brand performance of the product.
Creating fresh platforms for present and future strategy, refreshing placement in identity of
brand and emphasizing on acquisitions and mergers helps in exploring and understanding brand
management.
M2 Applying appropriate example
There are main four types of key components such as competitive analysis, promise,
customer persona and timeline. Company which use these key components will definetly
achieve the success. This company is using timeline and road map(Jugenheimer, Sheehan, and
Kelley, 2015). What type of questions included in this strategy are as follows :
 Has the company identified the customer for its product ?
 What type of facilities can be provided by company ?
4

 What to provide for unique point of difference ?
 How to identify the targeted customers.
 What type of offer provide to its targeted customers ?
Section 2
P3 Different strategies of portfolio management, brand hierarchy and brand equity
Building a brand portfolio strategy is a very tough challenge for the business executives.
It is very often that the brands creates the common problems like inefficiencies, lack the
opportunities, confusion among the customer, and various other things Brand portfolio Strategy
has to go through some clear and effective guidelines. Every brand is set for the group of
products, so the company should ensure that each and every brand has it own role to play and
has to be contributed in the marketplace. Precisely, resources used for brand building his must
allocated based on their roles and profit and sales should not be preferred. Purchasing decisions
are effected when the name of band comes. A brand which takes up the charge against
competitors and sum up the declarations has a driver role. Future success depends on the
strategic brand. When new brand is launched in the marketplace then there has to be a
compelling reason to generate(Jugenheimer, Sheehan, and Kelley, 2015). The question also
arises shall there be any enhancement through existing to a new brand. There is always a
distance between the sub brand and the master brand. The directions of the product market are
related to the brand portfolio strategy which signifies the connected brand propositions. There
has to be proper brand positioning to evaluate business strategy. In markets quality and visibility
are provided by the brand to the new contents. Properly management of brand features, services,
technologies, ingredients generates effect on branded contents in the product market. More
energy can be used by all brands. Some detectable brands can be tired and bland. It has its own
solution to generate branded energizers, promotion, program, symbol or other identity and can
energize a targeted brand. This energizer can be controlled by a firm. associations, energy,
visibility, better communication effeciencies can be provided by the extension and can enhance
the brand to grow in arenas. Opportunities regarding fit the value of the brand and customer base
gets cleared out.
5

M3 Analysis of portfolio management and brand equity with the using of theories and models :
While there has been different types of researches done on the brand equity regarding to
the current trends. This presentation reviews the brand equity. There are different methods exists
for brand equity analysis. Portfolio management include these areas which are influenced such
as resources, efficiency, leverage and clarity. Portfolio roles are silver bulets, cash cow brands,
linchpin brands and strategic brands. It also includes the portfolio graphics such as logo and
visual presentation. Structure of the portfolio involves brand groupings, brand images and brand
groupings.
P4 Brands are managed in partnership both at a domestic and global level.
After globalisation, Brands have crossed international borders through internet, brands
are forming and capturing the global market. Companies like H.M and ZARA have acquired
market globally. Flexible execution, cultures, preferences of cultures, consumer's insight, habits
are responsible for brand's global success. Product's positioning leads to rise in costs and
generate operational problems. Adaptation and aggregation both refers to positioning of the the
brand. Earlier a strong corporate culture was required for global branding. Local markets used to
maintain and create their own strategies but now a rigid, consistent and strong brand culture is
required to make customers familiar with the branding because is single view is required to a
brand and not many philosophies. Brand emphasis from structure to culture has been shifted dur
to rise in digital channels(Qian Y. 2014). Viral marketing and social media has played a vital
role in this context. Companies are promoting their brands wildly on social media like Facebook,
Instagram and customers are increasing their purchasing power. They have also stopped
different brands on
what so ever they used to do and promote their brand in a controllable manner. It should be
understood by the company that company's brand should not promote any type of guideline but
should go for culture as globalisation has taken place(Rosenbaum-Elliott R. Percy L. and Pervan
S. 2015). Those brands who has strong cultural base has reached high and has done very well in
promoting their products. Every country has competition at an intense level and more domestic
brands are gaining market share. As companies are crossing borders to promote its brands
through mergers, acquisitions and collaborations so language has also become an important
element for strong brand culture. A brand should never be compromised in a world that result in
6

disastrous consequences. Brand manager has to think 'Glocal' i.e. 'Think global act local'.
Organizations are following different brand strategies for different countries. Now the process of
doing global campaigns needs to get changed because digitally there are no borders and
company's are promoting and updating their brands internationally on social media. Brand
stories are changing and crossing on social media internationally. Global Brand policy is also
maintained through local perspectives, nuances and behaviours. New and fresh global brands are
clear, rigid and have a formal structure. The main aim of growing the brand lies in promoting the
business all the time and should grow all the time
but it has to be sure that the customer should remain satisfied and at any moment customer
should not be left behind. To increase more value ,more capitalization is on global things are
done which includes global sponsorship and brand consistency. A product can work for
consumers in another market if its already working in one market. For building brand
internationally, a surety of market should be there. Existence of the market should be there. If
the company is getting success with the present audience doesn't means that it will also go in the
same way with the new customers. New market brings a lot of new questions with it. Delivery of
the manufactured products from one country to another is a tough job. Import /export laws are
different from country to country which helps in building an international brand. Products shouls
be consistently available to the new targeted market. Understanding customs and packaging
requirements helps in selling of products(Rosenbaum-Elliott R. Percy L. and Pervan S. 2015). A
new market follows the pattern of domain names and trademarks. Nowadays products are
available on the websites which is the name of the company. When businesses expand
worldwide the objectives of the organization doesn't change.
Brands are creating their strong presence in the world by adapting social strategies and cultural
strategies like adopting different languages and adjusting the brands with these strategies among
the people. Many companies refer to social and global campaigns and perform random acts of
hospitality using their logos to attract their customers worldwide. So now global approach is no
longer a reserved brand.
M4 critically evaluation of techniques used in leverages and extend brands
There are different types of techniques used in extension of brands and leverages. Such
as distinctive flavor, feature owned, expertise, companion products, vertical extensions, same
7

potential customer base, designer brand and so on. These all techniques are used in brand
extension research. Leveraging can be classified in different parts such as line extension,
stretching the brand line, co branding and so on. Stretching can be classified into two types such
as stretching up and stretching down. Brand extension can be classified in two parts such as ad-
hoc extension and creating a range brand.
P5 Different types of techniques used in measuring the brand equity
There are different methods which are used by company to measure the brand. The best
methods to measure is brand valuation. It is the process to calculate the value of brand. Different
analysis are done in the brand valuation such as legal analysis, behavioral analysis and financial
analysis(Çifci S. Ekinci, Y. Whyatt G. Japutra A. Molinillo S. and Siala H. 2016). Different
techniques of measuring the brand equity are : cost based method, market based method, income
based method and formulator method. Cost based method include :
 historical cost method
 replacement cost method
 conversion model
market based method include :
 comparable approach
 equity evaluation method
 residual method
income based method include :
 royalty relief
 price premium
 discounted cash flow
 return on assets
formulary method include :
 inter brand
 finance world
 brand equity
Legal analysis is a technique to draw a relationship between trademarks and the brand. After the
consideration of all the aspects of assets such as tangible or intangible, the next step is to assess
the legal protection afforded to the brand. Behavioral analysis includes the behavior of
8

stakeholders specifically to the product or service and the geographical area where the brand is
launched. Furthermore, financial analysis is one of the most frequently used technique in brand
valuation. Financial analysis includes cost, economic and market approaches. In this analysis
internal and external researches are also included. Because these both factors are connected to
the organization as directly or indirectly. Then there are different approaches based on cost and
market or income and so on(Qian, 2014). The usage of these methods varied upon the structure
of the organization. Historical method include the historical cost of creating the brand. It did not
include actual brand value which the limitation of this approach. Because just including the
historical value is not enough in competitive market. It is generally used in initial stage.
Replacement method includes the expenditures occurs in replacing the brand with a new one. It
is simple method to calculate the brand valuation. Conversion model includes the estimate
amount of brand which is needed in generate awareness of the product. Market based approach
is based on the amount of brand on which it has been sold in the market. It is related to the
highest value which is determined by willing buyer ans willing seller. Apart from these, income
based approaches are also known as economic approach. Royalty relief method is the best
technique of income based approach to calculate the brand value. In prior approach, there are
only two areas are concerned such as marketing measurement and financial measurement.
Income based and cost based approaches are not included in the prior approach. But with the
using of prior approaches, organization has been faced many problems. For the relief from these
issues and complexities, there has been done some changes in the approaches like adding income
based and cost based approaches in the brand valuation.
M5 Critically evaluation of techniques used in brand valuation :
From the above mentioned information, it is clear that the process of brand valuation is
essential for marketing objectives. However, there are different techniques available to evaluate
the brand valuation. By measuring the brand value, company can get benefits from its competitor
exist in the market. There has been lot of changes done in the brand valuation and the scope of
valuation is also broad(Christodoulides G. Cadogan J.W. and Veloutsou C. 2015). The best
technique in brand valuation is market based approach because it includes the market value of a
brand. Including just cost of a brand is not enough for a company to grow its position in
competitive market and gain the success. Market value is depended on the marketing price as per
9

the prices given by the competitors. Income based and cost based approaches are also useful in
valuation of brand and these are the simple techniques but in now days, these approaches are not
in using by the organizations.
CONCLUSION
From the above report it can be concluded that, brand management is very important
process in every organization(Qian, 2014). How a brand is built and manage is described in this
presentation. There are different importance of branding in marketing such as it helps in
identifying the company name. There are different components to make brand strategy and build
brand equity. Furthermore, there are different models in portfolio management which are
described in this report. There are different types of methods which can be used to measure the
brand value and managing the brand value. Apart from this, here is described what is a brand
and how it is build, what are the tools and components of brand equity, key elements of strong
brand. Company has to face different types of challenges of macro environment factors while
developing the brand. Extension approaches and strategies are also described.
10

REFERENCES
Heding, T., Knudtzen, C. . and Bjerre, M., 2015. Brand management: Research, theory and
practice. Routledge.
Jugenheimer, D. ., Sheehan, K. and Kelley, L.D., 2015. Advertising media planning: a brand
management approach. Routledge.
Qian, Y., 2014. Brand management and strategies against counterfeits. Journal of Economics &
Management Strategy, 23(2), pp.317-343.
Rosenbaum-Elliott, R., Percy, L. and Pervan, S., 2015. Strategic brand management. Oxford
University Press, USA.
Keller, K.L., 2016. Reflections on customer-based brand equity: perspectives, progress, and
priorities. AMS review, 6(1-2), pp.1-16.
Çifci, S., Ekinci, Y., Whyatt, G., Japutra, A., Molinillo, S. and Siala, H., 2016. A cross
validation of Consumer-Based Brand Equity models: Driving customer equity in retail
brands. Journal of Business Research, 69(9), pp.3740-3747.
Christodoulides, G., Cadogan, J.W. and Veloutsou, C., 2015. Consumer-based brand equity
measurement: lessons learned from an international study. International Marketing
Review, 32(3/4), pp.307-328.
Davcik, N.S., Vinhas da Silva, R. and Hair, J.F., 2015. Towards a unified theory of brand
equity: conceptualizations, taxonomy and avenues for future research. Journal of Product
& Brand Management, 24(1), pp.3-17.
11

.
12