Strategic Brand Management and Measurement

This assignment covers various aspects of strategic brand management, including the role of collaboration and partnership agreements in expanding brands, techniques for measuring and managing brand value over time, and the ingredients of branding management that help organizations spread awareness of products and achieve their goals within a specified timeframe. It also references relevant books and journals on the topic.

BRAND
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Importance of branding as a market tool and its emergence in business practice.................1
P2 Key components for a successful brand strategy and managing brand equity......................3
TASK 2............................................................................................................................................5
P3 Different strategies associated with brand hierarchy, portfolio management and equity
management ...............................................................................................................................5
TASK 3............................................................................................................................................7
P4 Evaluate how brands are managed collaboratively and in partnership both at a domestic
and global level...........................................................................................................................7
TASK 4............................................................................................................................................9
P5 Different types of techniques for measuring and managing brand value using specific
organisational examples..............................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Brand management is considered as the analysis and planning to popularize the brand
within market. For appropriately managing brand, it is must for the company to develop a good
relation with the targeted market. Tangible aspects related with brand management is price, look
and packaging of the product. Intangible elements are concerned with the experience of clients
while using brand (Bhushan, 2012). A brand can either be a product, service, person or
corporate. This present report is based on Apple which is an America based MNC, headquartered
in California. Company is Pioneer in designing, developing and selling computer software,
electronics and online services. This assignment undertakes importance of branding as a tool in
marketing along with building and managing brand equity. Also, different tactics associated with
brand hierarchy, equity management and portfolio management is discussed. At last, different
ways to manage and measure the value of brand is specified.
TASK 1
P1 Importance of branding as a market tool and its emergence in business practice
Branding is a market tactics that helps a company in creating name, design and symbol
which allows an individual to easily identify that company. This helps in distinguishing products
of a company from other services and goods. Branding creates a memorable impression on the
minds of consumers and acknowledge them about the delivering potential of the company.
Apple use branding as a tool to distinguish itself from other competitors and rival companies.
Apple manages and develop its brand through promotional merchandise, logo, reputation,
customer service and advertisement (Hosaini, Rooshani and Fathi, 2012). All these aspects
groups together to develop a unique and attention grabbing product. Basically, a brand is made
of some important building blocks which are specified below:
 Name of the brand, Logo i.e. brand icon and colors associated with brand
 Brand messaging and slogan
 Brand's position and overall look within market
 Packaging of brand and aspects related with brand experience
Branding is critical to a company as it has overall impact on the revenue and profit generation.
Branding can change the perception of people about products offered by Apple. It will increase
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brand awareness and acknowledge Apple to incorporate new concepts which results in increased
satisfaction level of clients. Merits of branding are specified below:
 Improve company's recognition: It is hard for people to remember a firm with its
generic name. An important element of a brand is its logo which acts as the face of a
business. This logo helps people in instantly recognizing the company. Apple has a
simple logo design which is easy to memorize but their logo provide desired impression
about company and the products they offers.
 Builds trust within marketplace: Multiple choices and substitutes in every category
results in uncertainty and confusion. To avoid this, consumers prefer gravitating towards
those brands which are known and trustworthy (Liberatore and Miller, 2016). Due to
appropriate branding, Apple is emerged as a well known brand and people feels secure
while purchasing products because of the standardized and quality services and products.
 Increases market shares and revenue: Branding plays a vital role when a company
plans to expand its business. A powerful and strongly established brand can enhance
market shares and revenues of Apple by providing more leverage within marketplace.
This results as an appealing investment opportunity for the company.
 Convert masses into new customers: Effective brand image results in creating a
positive impression of company in the minds of customers. This results in the increment
of clients base, because of familiarity and trustworthiness of product. Commodities
offered by Apple such as mobile phones and laptops offer services in accordance with
the expectation of clients, due to this existing masses and new customers are interested in
purchasing products from them which results in increased market value of apple.
Difference between a brand and a product
Brand Product
 Brand is an entity which involves logo,
symbol or name of a firm to contrast
products of different companies. For
example, Apple has a logo which is
identifiable to masses globally.
 These are specific commodities which a
company sells with the purpose of
generating profit. In case of Apple
products are Mobile phones, iPad,
Laptops etc.
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 Brand stays in the minds of people for a
long time.
 Time horizon of a product is limited.
Usually, Products get replaced after a
specific time.
 It is not possible to copy or reproduce a
brand as its is a legal trademark. This
means no other company can copy
design and logo of Apple.
 Products are easily copied by the rival
and competitor firms. Rival firms like
Samsung, Oppo tries to produce similar
products as Apple to enhance their
market value and clients base.
Therefore, Apple is incorporating new concepts to improve their tactics and brand
image in marketplace. Also, they are adopting CSR activities that increases the value and image
of their products continuously. These aspects supports Apple in gaining competitive advantage
against their competitors within market place.
P2 Key components for a successful brand strategy and managing brand equity
Brand equity is defined as a marketing term which describes the value of a brand. This
value is measured in accordance with the perception of the customers and their experience about
product. If customers thinks positive about a brand, it has high brand equity and vice-versa. In
case of Apple which is a worldwide renowned brand has a positive brand equity as people are
highly satisfied with the services and products company is offering (Muchina and Okello, 2016).
Merits of positive brand equity to Apple:
 Apple can charge high for their products as people are willing to pay more because of
standardized services.
 Along with existing products, new concepts and commodities introduced by Apple will
gain wide attention within market due to positive brand image.
 It will helps in enhancing the stock price of Apple along with market value and profit
margins.
Distinction between a strong and weak brand:
Strong brand Weak brand
A strong brand possess high awareness and Weak brand has low awareness and company
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they have clear vision regarding their targeted
audience. An example in this context is Apple
as they target high class population.
struggles while connecting with targeted
customers. For ex., Spice
Companies having strong brand image
formulate those strategies which reflects their
vision and culture properly.
Strategies are usually mismatched and brand
fails to align with culture and value of
company.
customers are loyal and acknowledged about
the services and products offered by firm.
Customers faces difficulty in understanding
the services and products offered by company
due to this they are not loyal to brand.
Strong brands have a memorable and unique
logo that helps customers in identifying them
easily.
Weak brands are easily confused with other
brands.
Strong brands are not focused on all sections within society, they target specific segments
and then consider the needs and demands of people which are part of those segment. This helps
them to innovate new concepts and ideas in accordance with the expectation of their customers.
In case of Apple, Company offers uniqueness and standardized products to their targeted
customers which makes them a strong brand. The services and products offered by Apple stands
out in terms of durability, packaging and performance. Apple posses a distinctive position within
marketplace which maintains their relevancy with masses. Clients of Apple remain loyal to the
brand due to distinctive and appreciable customer experience. Apple has a high emotional
commitment and positive reputation which differentiates it from rival companies and
competitors.
Stages of brand development are mentioned below:
Brand equity modal given by Keller is also known as CBBE model. CBBE stands for
customer based brand equity. In marketing world, customer is treated as a main aspect. To gain
profit, it is must for a company to carter the needs and demands of their customers. This model is
also known as Brand equity pyramid which denotes the stages to develop image of a brand. By
using this model, Apple will be able to identify the strategies which are needed to grab attention
from customers. Brand equity pyramid is divided into four parts which are specified beneath:
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 Level 1- Brand salience: It means identifying the ways by which customer will
differentiate one brand from other (Pfisterer, 2017). Brand identity will benefit Apple in
attracting clients. It is the primary and most essential aspect in this model. It is created by
targeting a specific section of people which are capable to purchase products offered by
company. Strong brand identity will results in high revenue for Apple.
 Level 2 – Brand meaning: It includes communication and interaction with customers
regarding the products and services they offer. This level is bifurcates into tow steps
which are performance and imaginary. Performance means the ability of product to
satisfy and carter the requirements of clients. Imagery means satisfying customers at
psychological and social level.
 Level 3 – Brand response: In this company focus on acknowledging the opinion, feelings
and judgments of clients regarding product. Customer judges Apple products in
accordance with credibility, consideration, superiority and quality.
 Level 4 – Brand resonance: It is the most desirable and difficult level to reach. It is
achieved when customers share a deep and psychological bond with products offered by
Apple.
The importance associated with this modal is the guidance it provides to Apple
for brand building. It helps Apple in assessing their progress within marketplace.
Brand reinforcement: It focus on maintaining brand equity by popularizing brand among new
and existing customer base (Schott and et. al., 2017). Apple can maintain it by acknowledging
customer about their products and benefits associated with them.
Brand revitalization: It is adopted when product reaches at final stage of product life cycle.
Apple can adopt it to bring their goods back in market and increase their profit margins.
TASK 2
P3 Different strategies associated with brand hierarchy, portfolio management and equity
management
MNCs such as Apple needs to evaluate brand value within market. This process can
includes aspect such as standardized products etc., Brand value also helps in achieving goals and
aims of firm. It also helps in gaining attention form wide customer base which benefits in
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increasing volume of sales. Apple is capturing attention worldwide because of their standardized
services.
Portfolio management strategies: These are those approaches which are applied to
manage portfolio of a company appropriately. This helps the company in receiving highest
possible returns in low possible risks. Apple use this strategy to increase their profit revenue and
market shares by elimination risky situations. For example, in case of Apple , company reduce
their maintenance and cost by receiving resources like metals, silicon and glass from Asian
continents which have abundance of these materials.. Another case is Motorola which hire cheap
workforce and labors that helps in managing their costs. Two portfolio managements are
mentioned beneath:
 Active portfolio management strategy: It relies on the aspect which defines that a
particular style of management is capable to generate results which can beat rival
companies. For example, Apple believes in high cost investment and takes advantage of
market inefficiencies which is suggested by managers and analysts that evaluates the
market. It involves top-down and bottom-up approach (Wirtz, and et. al., 2018).
 Passive portfolio management strategies: It states that market is efficient and best results
are achieved from low cost investments which are kept for long term. One example of
this type is Motorola which follow this style of portfolio management.
Brand hierarchy: This is a process which enhance goodwill of brand in market. In
context of Apple, this involves three stages:
Leverage: it includes a graph that creates a brand image at both horizontal and vertical axis.
Clarity: Companies like Apple have formulated strategies that clearly defines their goals and
targets.
Synergy: By providing quality products to clients, Apple maintain its brand image
Importance of brand hierarchy:
 It aligns and order brand so that future strategies and planing will not get
disrupted.
 It helps in training employees so that they will be able to deliver products as per
the demands of consumers.
Types of brand hierarchy:
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Brand
Hierarchy
Apple
Corporate
branding
In this company sells product under their name. For example, companies such
as Apple sale their products with brand-name Apple.
Umbrella
branding
It products are popular then a company doesn't ned to popularise their product
with main brand name. For Example- products like Ipad, Ipod are well
established in market, they does not require the label of main brand Apple
which acts as an umbrella in this case.
Endorsed
branding
It is the case when a company establish their brand while promoting products
of other brands. Apple is not an example for this
Family
branding
When products of a firm are sold under parent company. All the commodities
offered by Apple such as iPhone, iPad, iPod and laptops came under the same
family.
Brand hierarchy involves a list of brands in accordance with clients need. For example, in
early days mobile phones were more in demand. Later own demand shifts to desktop, laptops
and i Pads.
TASK 3
P4 Evaluate how brands are managed collaboratively and in partnership both at a domestic and
global level
Brand leveraging is the method of supporting brand name and company's entry into a
new but related product. This is done by proving valuable information about the product to its
consumers (Balmer, 2012). It helps organisation to carry positive brand attitudes and
characteristics into new product category. This concept helps the manager of Apple to create
strong brand leveraging by maintaining quality of products. In this, they have to decide which
product should be leveraged under brand.
Line extension and brand extension
Basis Line extension brand extension
Meaning It refers to the concept in It refers to expanding the
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which the company introduces
new items in similar product
category under same brand
name. It includes, new
flavours, colours, designs,
packaging, sizes, etc.
brand into new markets and
territories. This helps
customers to try new products.
It is also known as brand
stretching which is a
marketing strategy to promote
products by developing brand
image.
Benefits It is beneficial for Apple in
promoting their products by
spreading awareness which
leads to enhance higher profits
and drawing new customers.
It is also beneficial for
company as it allows
manufacturers to enter into
new markets and increase their
profits.
Examples In context of Apple, the
company is famous for its
iPhones and iPads, etc. but
now organisation has
introduced new computers and
laptops under the same
category and brand name.
The company also expanding
its market of computers and
laptops through out the world.
Ways of leveraging brands i.e., collaboration and partnership agreements
Collaboration: It refers to the process in which two or more people working together to achieve
a common goal and objective (Barrow and Mosley, 2011). Teams that works collaboratively
results in better outcomes, greater resources, etc. The company also offers them incentive and
rewards according to their performance. This helps them to get motivated and encouraged
towards accomplishing goals. In context of Apple, the company also considers teams who works
together to reach common targets in allotted time frame. This assist company in increasing their
sales and revenues and gaining competitive advantage at market place. It includes various ways
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such as cloud collaboration, contextual collaboration. By this, partners can deal which their
problems at domestic and global levels.
Cloud collaboration allows workers of company to work together on a common data and
documents that are stored outside and inside company firewall. It process enables two or more
employees work together on a common project or tasks.
Contextual collaboration involves applications such as word processors, instant
messaging, shared calenders, etc. These applications helps employees to communicate with each
other effectively and to share information easily (Hanna and Rowley, 2011). The main purpose
of contextual collaboration is to make online collaboration which helps them to work with
people who are in other places.
Partnership agreements: It refers to to the method in which company partners uses marketing
strategies to develop multiple associated brands. In partnership agreements, partners shares costs
and profits in percentage they have decided. This is a beneficial technique which helps partners
to transfer success form one brand to their partnered brand. In case of Apple, it is helps partners
of organisation to extent their business at market place. This is also known as co-branding in
which partners can also combine their separate brands to create a new and unique product. This
helps to build business , boost awareness into new market. By this, company has an opportunity
tom launch new product by diving costs between both the partners. This is also beneficial for
customers as they can trust other products of company as well at all levels of domestic and
globally. Lastly, with the helps of this, company can serve their products internationally and at
domestic levels.
TASK 4
P5 Different types of techniques for measuring and managing brand value using specific
organisational examples
In this competitive market, it is essential for every organisation to measure and manage
its brand value among customers at market place (Hanna and Rowley, 2013). This will help
company to know its level in comparison to their rivals. In this, the company uses various
techniques or strategies to measure and manage their brand value. In context of Apple, the
manager of company also uses some techniques to measure and manage their brand value which
are as follows:
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Techniques of measuring brand value
1. Cost-based method: It refers to the method in which the authority of company sum up
all costs that occurred during their brand establishment. It involves costs such as,
development, marketing, advertising, etc. It is the concept pricing method which helps
company to determine its selling price of a product. This method is also considered by the
manager of Apple which helps them to measure their brand value. It is straight forward
and simple concept. It also assists company to ensure all production and overhead costs
before calculating their profits.
2. Income approach method: This method is also considered by business enterprise to
calculate brand value. It is also known as “in-use” approach. It ensures valuation of future
net earnings which assists company to determine its brand value currently. It is also
considered by the manager of Apple to know its worth at market place. It is the current
value of income statement, cash flows or costs savings (Iglesias, Singh and Batista-
Foguet, 2011). Basically, to use this method correctly it is essential for enterprise to
identify its objectives and to use appropriate methods and assumptions to analyse fair
value. Thus, by this company can able to know its value with help of this method.
3. Licensing method: The another useful method for measuring brand value is licensing
method. This concept also assist organisation to determine or measure their brand value.
Brand license is important for every company to carry out their operations effectively. By
this, brand value can be determined through licensing fee achieved by company. The
licensing of brand includes contracting which is concerned by quality, raw materials,
designs, packaging, marketing support, etc.
4. Price-premium method: This method is also used to measure brand value in which sale
of products are calculated by multiplying differences between branded and non-branded
products with a number of products sold (Kapferer, 2012). It considers the profits which
is earned by brands. It is a additional profits which is earned by selling of branded
products in comparison to goods with no-names. This method also helps Apple to analyse
their value and to achieve competitive advantage at market place.
5. Market-value method: According to this method, it is the value or price which is paid
for brand. This concept is considered according to the costs of similar brand transaction
done in market. In context of Apple, the manager of company can also use this technique
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to measure their brand worth. This technique helps company to carry out their operation
in a systematic manner and to gain competitive advantage at market place.
6. CBBE approach: This is one of an important approach which helps company to measure
their brand value. It is essential for every management to be considered as it provides
unique point of view about how to built and manage brand appropriately. This is also
used by Apple which reflects costumers perception and mindset towards their knowledge
and brand awareness.
Techniques for managing brand value
 Brand awareness: It refers to the method which creates awareness of products of
company among customers. The company also set-ups various campaign programs to
advertise or spread awareness of brand at market place (Keller, Parameswaran and Jacob,
2011). This technique is also considered by Apple which assists them to promote their
brand value attract so many customers towards them.
 Consumer attitude: The another basic strategy of managing brand value is consumers
attitude towards company. It is also essential for organisation to focus on what perception
and attitudes buyers have towards their product. This helps them to manage their goods
and do improvements if required. In context of renowned brand Apple, company also
focus on attitude of their services users which helps them to manage their products
quality and tom gain competitive advantage at market place.
CONCLUSION
From the above report it has been concluded that branding is important for company as it
is a marketing tool which helps to introducing new products at market place. It is also essential
for company to manage its brand over time. In this context, there are also some strategies of
portfolio management, brand hierarchy and brand equity management which id discussed in the
above report. Along with this, it is also important for company to expand or leverage brands
domestically and internationally. This leads to increase their sales and profitability margins. In
the collaboration and partnership agreements plays an important role in expanding brands which
are evaluated in above assignment. Additionally, there are some techniques which helps
company to measure and manage brand value over time. Lastly, the report covers all the
ingredients of branding management which is beneficial for organisation to spread awareness of
products and achieve their goals in allotted time frame.
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