Strategic Brand Management and Performance

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This assignment delves into the crucial aspects of strategic brand management and its influence on organizational performance. It examines factors such as perceived industry competitiveness, marketing capabilities, brand trust, and celebrity endorsements, analyzing their roles in shaping superior brand performance. The analysis draws upon academic research and real-world examples to provide insights into effective brand management practices.
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Individual Boardroom report
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1) Critically review a reputation driver in which one or more stakeholder Groups think the
brand underperforms....................................................................................................................4
2) Argue whether alternative perspectives could lead to advancements in current brand
management practices..................................................................................................................7
3) Recommendations for alternations to practice......................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Brand management plays a significant role in the organization this is because it
only bring reputation and goodwill to the company. Brand management defined as the
process of managing the promotion activities of the particular brand. The analysis and
planning of the brand which shows how it perceived in the market is known as brand
management. The tactile elements of brand management inculcates the product itself
such as its image, price, packaging etc. (Sheehan and Stabell, 2010). If the company is
carrying a strong brand image then it helps in differentiates of the products from the
competitors. The brand is associated with the reputation of the company. For
conducting the current research, InterContinental luxury hotels and resorts are been
chosen. The firm is known as the InterContinental hotels Group (IHG) and it is serving
60 countries globally. In this report, which is the representation of the boardroom report.
Moreover, it includes the research of the luxury's brand reputation. In which reputation
driver feel where the brand is lacking in performing. Furthermore, it includes the
alternative perspectives which helps in advancements in present brand management
practises in IHG. In addition to this, the recommendations are needed for the alterations
to practice in the organization.
Overview of the company
Intercontinental Hotels and Resorts has the business internationally and
operating from last 60 years. It is one of the world's major luxury hotel and resorts brand
in UK. The organization has changed different names of the hotel and resorts because
of the brand they wanted to build in the society. The business firm has many number of
the brands within the company. In 2014, the IHG hotel and resorts was won "The
World’s Leading Hotel Brand" in the continuing six year at The World Travel Awards
(The InterContinental Life, 2016). Despite of this, the chosen hotel and resorts also won
more than 40 accolades in this this as well as in other areas also. The company also
practices in the Corporate social responsibility that uses the IHG Green Engage system
which is an online sustainability management system which assist in checking the
performance of the hotel environment and further provides recommendations to
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improvise the same. To reduce the energy consumption, the hotel chain is using Green
engage tools. And there are some programs which are helping the employees to tackle
the problem in the time of crisis. There are other operation also which helps the
company to uplift their brand and to enhance their reputation.
1) Critically review a reputation driver in which one or more stakeholder Groups think
the brand underperforms
Corporate reputation defined as the understanding and perspective of the
stakeholders on the company or brand. Here, stakeholders are customers, employees,
shareholders, vendor, communities etc. Each stakeholders has different perspective
and knowledge of the particular brand. Reputation of the IHG build through innovative
and creative products and services, fair treatment to the employees and considering
environment impact on the organization. In hospitality segment, the brand, luxury
facilities, customer services helps in creating the reputation and goodwill of the
company. The corporate brand and its reputation are not interconnected to each other
(Dowling and Moran, 2012). This is because in reputation, stakeholder is thinking to
build a successful image of the organization. On the contrary to this, in brand, the
company has made the promises to their stakeholders and ensuring that able to meet
them on proper time. Brand shows the company overview to their customers whereas
reputation helps in to build that image tactful. The reputation assist in giving better
performance by the company to its stakeholders and the main is customers. This is
because they should be satisfied by their services due to which IHG can able to uplift
their brand in the market and in return, it provides positive reputation for the business
enterprise.
There are several factors which affects the company reputation in the negative
and positive way and they are as follows: Perception of the customers: The perspective of the customers also matter the
most because target market only helps in to build brand in the market. It also
ensure that the company try to fulfilled the needs and requirements of the
customers. The needs and requirements should be according the consumers'
tastes, preferences and lifestyles so that IHG can able to meet their expectations
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(Iglesias, Singh and Batista-Foguet, 2011). InterContinental hotels Group is
fulfilling the customers requirements by providing luxurious facilities in their hotel
and try to make them satisfied. This is the positive factors for the company
because customers are getting attracted to this hotel. Consistency: The services which are consistent in the hotel brings reputation as
well as profitability to the organization. This consistency can be bring from the
performance of the hotel in the marketplace. The second aspect can be
commitment to the stakeholders in which it includes consumers and employees
(The Reputation Challenge: Building Corporate Reputation to Drive Business
Performance, 2016). The organization should have proper commitment to their
employees regarding their salaries and other aspects. On the other hand,
commitment towards customers is also one of the important reputation drivers
which helps in building the goodwill and brand image in the minds of the target
market. Loyalty: This is also one of the important factors which helps in the building the
brand's value in the marketplace. The loyalty towards the customers is major
aspect for the InterContinental hotels Group because trust gives strength
between two parties and helps in enhancing the profitability of the organization
(Noone, McGuire and Rohlfs, 2011). On the contrary to this, the other factor is
customers should be also be loyal to the organization. This is important because
if consumers is blaming or bad mouthing about IHG then it is the bad for their
brand. They both that is customers and company should be loyal to each other
by performing well in the organization. Relationships with the stakeholders: The relations which companies has with
their different stakeholders also plays a important role. There are various
stakeholders through which organization performance are to be analysed. The
various kinds of stakeholders are employees, consumers, employees,
government communities and shareholders etc. (Balmer, 2012). The
InterContinental hotels Group has to co operate with the customers to enhance
their brand. Furthermore, it has also to follow the regulatory framework and
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legislation which is given by the government so that the organization can run
their business and factors ethically. The employees engagement is also one of
the aspect which company should have to consider to build their reputation.
Competitive Advantages: If the company has certain types of advantages
which is making them apart from others in this competitive market then it is the
competitive advantages for that hotel. As the company received many accolades
and different types of CSR activities in various sectors which is attracting the
customers to the hotel (Song, Hur and Kim, 2012). There are various types of
competitors in which it serves luxurious facilities to their customers. So it is hard
for the IHG to achieve a competitive advantages in the market where no one
has that advantages. So it is also helps in creating the reputation in the
organization.
By comparing every factors, there are one negative aspect which is not making
the InterContinental hotels Group underperforms in the market. As per the view of
Keller, Parameswaran and Jacob (2011) asserted that IHG has many driving factors
which helps the company to boost their brand image in the market (Keller,
Parameswaran and Jacob, 2011). This will helps in the performance of the company to
know its financial position as well as its goodwill. On the contrary to this, Kapferer
(2012) argued that consistency of the organization in the commitment aspects towards
the employees and consumers (Kapferer, 2012). The company is not giving the
employees better facilities as it is given in their contract. In this, salaries also matter the
most. This is because it helps in acting the motivators to the employees if the
employees are not motivates then this will in results in lessening the reputation of the
company. According to the view of Love and Singh (2011) stated that the consistence
performance of the company from past few years is helping the companies but it is in
consumers perspectives (Love and Singh, 2011). InterContinental hotels Group is
providing the customers better services and trying to meet their expectations through
which the reputation and brand image of the organization is increased and positive
impact. However, it can be critically assessed that the employees are treated not
properly in the organization. Through which they are getting demotivated and not able to
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give proper services to their employees. In addition to this, there are various terms and
conditions are there which are not fulfilling by the organization. Through which large
number of the employees are leaving the workplace. This is leading to negative image
to the society which can lose their brand reputation in the society. Laroche and et.al.
(2012) explained that customers are external stakeholders which are making the
company image high in the society (Laroche and et.al., 2012). But in other case,
employees are internal stakeholder which is making the organization worst by their
tactics that is not performing well in the organization. Rosenbaum-Elliott, Percy and
Pervan (2015) contended that the InterContinental hotels Group (IHG) is not performing
consistent in the market by giving the perfect standards which they have promise to the
organization (Rosenbaum-Elliott, Percy and Pervan, 2015). So to enhance the
profitability and reputation in the market, the company has to give better performance
with consistent to the market. For this, the InterContinental hotels Group has to meet up
the expectations of the consumer by the providing products and services according to
the tastes, preferences and lifestyles of the customers. Smith, Smith and Wang (2010)
concluded that the organisation should need support of both the aspect that is
employees and customers because through only this they can accomplished their brand
image and reputation (Smith, Smith and Wang, 2010).
2) Argue whether alternative perspectives could lead to advancements in current brand
management practices
In the contemporary scenario brand name and brand management has become
key success factor in the hospitality organization. As, building the brand name and
brand image among the customers support in enhancing the image of hospitality
organization in the global market that further attract the clients and visitors to visits their
hotel and use their luxurious and leisure services (Sola, 2012). The brand management
practices is consider as process of managing and amending the brand and image of the
hospitality organization in order to distinguish their luxurious services from their
competitors. IHG hotel and resorts brand is one of the leading global hospitality
organization that renders leisure and luxurious services to different segment customers
across the globe. Thus, for promoting and marketing different services of IHG hotel
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marketing manager must use effective brand management practices that would support
them in analysing and planning how IHG group perceive their different services in the
competitive market. For enabling brand management it is essential for the IHG group to
develop and build effective relationship among their target market customers
(Biedenbach and Marell, 2010). Thus, further results in enhancing loyalty among their
customers. The effective brand management not only results in increasing the sales of
their services but it also enhances the value of other services and products offered by
their other brands.
Thus, branding is consider as biggest tool that used in marketing and promoting
the IHG hotel and resort hotel in the domestic as well as international market. For IHG
group it support in creating the business firm identity among their rival hospitality
organization that is Hilton, Marriott International etc. in order to build the brand image of
IHG hotel currently the company focuses on using effectual promotional techniques that
is advertisement of their current product and services that they offer to visitors who
visits their hotel. According to Abratt and Kleyn (2012) advertisement tool support the
hospitality organization in generating awareness in the market regarding their services
and also assist in capturing the market share too (Abratt and Kleyn, 2012). With the
help of proper advertisement via print media or television advertisement they can easily
attract the domestic customers and visitors towards their hotel premises. Further, the
hospitality organization also focuses on using PR (Public Relations) techniques for
enhancing their brand management practices. For this marketing manager of IHG group
focuses on hiring the PR manager that build effective relationship among the hospitality
organization and their customers. As per the view of O'Cass and Weerawardena (2010)
PR manager also organize events and meeting for the target audiences to deliver the
information related with their leisure and luxurious services that they provide to their
different segment customers that outcome in maintaining positive image as well as it
also outcome in building strong relationship among their targeted audiences (O'Cass
and Weerawardena, 2010). As per the view of Sheehan and Stabell (2010) Public
relations used by IHG hotel is also cost effective as compare with the other tools and
techniques of the promotion (Sheehan and Stabell, 2010). As, with the effective PR
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tactics they can easily generate the positive image of hospitality organization that would
help them in the future in enhancing their market share. In addition to this, IHG hotel
also focuses on the marketing campaigns (Conferences, concerts) as their brand
management practices to enhances their reach among the large audiences. According
to Jurisic and Azevedo (2011) marketing manager of IHG hotel and resort brand must
focus on organizing marketing campaign like conferences as well as concerts to
increase their brand image in the competitive market (Jurisic and Azevedo, 2011).
In the progressive scenario, there are different alternative perspectives that could
results in advancement in the current brand management practices of IHG hotel and
resort brand that is engaging brand ambassadors for the hotel, advertisement through
using social media sites, leverage technology, managing other brand in the portfolio
over the time, re-branding etc. the key alternative perspective that can be used by IHG
hotel is engaging brand ambassador for marketing and promoting the leisure and
luxurious services of the global hospitality organization in the international market. As
per the view of Aaker (2012) engaging ambassador for promoting the brand is consider
as an effective tactic in the environment that support in managing the brand image of
the hotel (Aaker, 2012). While, endorsing the hospitality organization celebrity image get
stuck with the IHG hotel therefore, customers and visitors mainly visits the hotel due to
celebrity image is stuck with the services of hotel. Thus, celebrity endorsement or
engaging brand ambassador is consider as an effective tactic for the future scenario in
enhancing the brand image. On the other hand Dowling and Moran (2012) has stated
that engaging in the celebrity endorsement consider as costly practices or enhancing
the brand image of IHG hotel in the global market. As, celebrity charges very high
amount for endorsing the services of hospitality organization (Dowling and Moran,
2012).
In addition to this, another alternative perspective that could lead to advancement
in brand management practices is advertising and promoting the services of IHG hotel
through using online platform that is via social media sites, review blog sites etc.
according to Lindgreen Beverland and Farrelly (2010) with the help of social media sites
and other online platform IHG hotel must enhance the brand image of the hospitality
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organization within the environment (Lindgreen, Beverland and Farrelly, 2010). In the
contemporary scenario, advertisement through social media sites and other sites are
consider as an effective practices for brand management as the customers and other
stakeholder group constantly visits the social media sites for gaining and acquiring the
adequate information and knowledge regarding the services of organization. On the
contrary, Wirtz and et.al (2013) has also stated that using social media site as brand
management practice may results in affecting the image of IHG hotel (Wirtz and et.al.,
2013). As, on the social media sites reviews or comment posted by the client or other
stakeholder groups are visible to all the audiences. Thus, any negative comment posted
by customers or visitors may hamper the brand image of IHG hotel and resort.
Moreover, the social media tool is also used by competitors or rival hospitality
organization to diminish the image of hotel by posting negative image or review
regarding the services of organization (Asmussen and et.al., 2013).
Furthermore, with the constant up gradation in the technology marketing
manager of IHG hotel can leverage the technology within the hotel premises to enhance
their image of hotel in the hospitality industry. For example, IHG hotel has installed an
electronic system or tab within all their suite and rooms so that visitors or customers can
easily order the required menu. As, the electronic system will be directly connected to
food and beverage department (Groza, Cobbs and Schaefers, 2012). Thus, through
leveraging technology within the IHG hotel will results in meeting and satisfying the
requirement of their customers. Thus, it results in word of mouth publicity in the market
and enhances their brand image among the other customers. As per the view of Yang
(2012) the alternative perspective of brand management practice will negatively affect
the image of IHG hotel if the customers or visitors are unable to use the electronic
system that are installed within the rooms and suites of hotel (Yang, 2012).
Moreover, alternative perspective that is enabling re-branding could also lead to
the advancement in the current brand management practices. IHG hotel and resort
brand can engage in developing their hotel premises, enhancing their services by
adding new services to attract customers and visitors etc. As per the view of Nyadzayo
Matanda and Ewing (2011) with the re-branding tactics they can promote their brand
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and services in the new manner to attract different customers for instance, they can
modify their logo, tag-line as well as overall structure of the hotel premises to attract the
customers and enhancing the brand management (Nyadzayo, Matanda and Ewing,
2011). In the contemporary scenario, re-branding is consider as an effective tactic that
support in re-building the image of their hotel in the market through focusing on
modifying their services and layout of the hotel. Moreover while re-branding the IHG
hotel and resort brand must also focus on innovating their services that is the hotel must
introduce modified services related with destination wedding, business meeting etc. so
that they can attract the audiences towards their services. On the other hand, Shamoon
and Tehseen (2011) re-branding may not be consider as an effective practice of brand
management for IHG hotel as the hotel has presence in the global market (Shamoon
and Tehseen, 2011 ). Thus, it would be costly for the hotel to re-brand their hotel by
developing their structure of the hotel.
3) Recommendations for alternations to practice
From the above various alternative perspectives in the current brand
management strategies sit has been recommended that IHG hotel and resorts brand
must focus on different practices that will assist them in enhancing their brand image
among the rival companies (The Advantages and Disadvantages of Celebrity
Endorsements, 2013). As, it has been recommended that IHG hotel and resorts brand
must focus on-
1. Leveraging the technology within their hotel premises so that they can deliver
fast and quality services to their customers. With the help of implementing
technological advanced equipment and tools within the hotel premises they must
deliver quality hospitality services for their customers (The InterContinental Life,
2016). Moreover, this alternative for enhancing the brand management practice
is also feasible because the hospitality organization is financially sound enough
to implement the technological aid within their premises. Furthermore, the
advantage of levering technology within the premises will also satisfy the needs
and requirement of customers. In addition to this, it is also beneficial for the
hospitality organization in improving their services in the effective and efficient
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manner. As per the view of Sola (2012) leveraging technology will be also
beneficial for the IHG group in the future as it will results in delivering services in
the quicker manner (Sola, 2012).
2. Another recommendation for modifying the current brand management practices
is that engaging hospitality employees and staff so that they can render proper
role in delivering effective ideas and suggestions within the company that assist
in enhancing the brand recognition and image (Brand-Building best practices,
2016). Furthermore, with the employee engagement they can also get committed
towards the organization that results in rendering quality and proper services to
their customers that further enhances the overall performance of their
organization.
3. Last, recommendation for InterContinental Hotel group and resort brand in
enhancing their brand management practices include engaging the celebrity for
endorsing their services in the international platform. With the help of celebrity
endorsement IHG hotel can easily generate awareness regarding their leisure
and luxurious services to mass of audiences. As per the view of Yang (2012)
popular celebrity endorsing the services of IHG hotel will influence the customers
and visitors to use the services of hotel in order to meet their leisure requirement
and needs (Yang, 2012). Furthermore, advertisement or endorsing through
celebrity also results in building brand awareness within the hospitality industry
as the image of celebrity will get stuck with the IHG hotel and it persuade the
customers in purchasing their services.
CONCLUSION
In this report, it has been concluded that the IHG is one of the largest luxury
brand hotel which serves customers globally. The company has won many accolades in
performing better in serving their target markets. In first task, it all about critically review
of the various reputation driving factors such as perception of the customers,
consistency, loyalty, relationships with the stakeholders and competitive advantages. In
these factors, all aspects are fulfilled by the InterContinental hotels Group excluding the
consistency. In which organization is not performing well by not committing good with
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the employees. Furthermore, the second tasks is all about the alternate perspectives
which could lead to advancements in current brand Management practices. This
includes marketing campaign, advertisements and public relations that are currently
followed by the organization to enhance their brand. Moreover, the alternative
perspectives which can be introduced by the InterContinental hotels Group (IHG) are
celebrity endorsements, social media and through by new, advanced and innovative
technology etc. In addition to this, the last part comprises of more recommendations for
alterations which are taken by the business enterprise to practice in the future and
enhances their brand reputation and image through that they can enhance their goodwill
and profitability.
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REFERENCES
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