Analyzing Brand Equity through Keller's Model

This assignment focuses on understanding and applying Keller's Brand Equity Model. Students are required to analyze academic papers, including Vomberg et al.'s 'Talented people and strong brands', Su & Tong's 'Brand personality and brand equity', and Gürhan-Canli et al.'s 'Customer-based brand equity'. Additionally, consider Hollebeek et al.'s 'Consumer brand engagement' and Keller's model itself. The task involves evaluating the provided sources, understanding their implications on branding strategies, and applying these concepts to a case study.

Principles and Practice of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
Question 1........................................................................................................................................2
Examine and effectiveness of the organization with current branding strategy.........................2
Question – 2 : Compare standardization and adaptation models to the international marketing
mix of your brand.......................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Principles & Practices of Marketing means to understand how to interact or communicate
with customers with the activities of serving product and services to customers. It is the most
critical function of a business to find the profit and loss of the business. In this current
assessment there will be discussion on H&M Group stating the brand equity models and current
branding strategies of H&M and by applying Glocal theory to the international marketing
strategies in the organisation.
Hennes & Mauritz (H&M) group is a Swedish multinational company. Is is one of the
world's largest clothing company, it is mainly a retail company known for its latest trends, fast
fashion for men, women, youngsters and kids. The headquarters are located in Stockholm &
Sweden. It is famous for its brands- H&M, H&M Home, COS and other stories, ARKET,
Weekday Cheap Monday , Monki, all these brands have their unique identity. All the brands of
H&M group is famous for its fashion and quality. There are over 4500 stores and operation in
about 62 countries. H&M is providing employment around 132000 people and it create about 1.6
millions jobs in textile industry. The position of H&M is second rank in the world and it has 36th
rank in the Forbes Magazines. The online shopping is available in 33 countries, it has its
significance in internet, having 44 online markets. H&M group sales including VAT is 232
billion in 2017.
Marketing Strategies
Segmentation, Targeting and Positioning is the main keys of marketing strategies of
H&M. Demographic, psycho-graphic & geographic divisions are the various accessories of
industry. The age of customer, income, gender, attributes, religion, personality, and brand loyalty
is the main variables of H&M.
H&M is operating with different sub brands and it concentration is on each brands by
using targeting strategies made by the management of the group. The strategies are made to
achieve the targeted goals of the organisation and H&M marketing coverage is adorable only
because of technical strategies.
H&M has its best visionary outlook, it posses the ability to have a clear idea about what
should happen in future and what to do in future. H&M has powerful imagination capability. It
has creative ability to change in future according to the demands of customer in market. It has its
positioned itself by its new fashion trends, style and quality at best price.
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H&M has competitive analysis strategies also, company is facing highest competitions in
the market. It has to work more on quality of the clothing as there are competitors sitting on the
head of the company. The competition in clothing industry is much fastest compare to other
industry. H&M is fighting competition with many brands and its ability of fastest visionary
outlook is proving the company the best in the market.
H&M is customer oriented company, as the main analysis, strategies are only made to
read the mind of customers and to know the needs of customers. H&M is leading in wide and
varied range of customers as in men, women, youngsters and children's but still company is
dressing their customer in sustainable way.
Brand is a name, deign, symbols or other features that distinguish the organization or
organization from its product rivals in the eyes of the customer. The foundation of brand is the
logo of the organization. Brand is a marketing practise of creating symbol that desigh determine
a product from other product. Effectiveness in brand strategies gives a major edge in incresing
cometetion in the market. Brand is not onlt the symbol or name it is exactly a promise to the
customer. H&M is a Swedish Multinational Company in clothing. H&M company is taken in
this assesment because it is a company which have highest brand positioning in fashion trends. It
is highly reputed company which have large number of customer and adorable market place in
the world. The assesment is about the introduction is about the H&M company is H&M is a
customer oriented company, as the main analysis, strategies are only made to read the mind of
customers and to know the needs of customers. H&M is leading in wide and varied range of
customers as in men, women, youngsters and children's but still company is dressing their
customer in sustainable way. H&M has competitive analysis strategies also, company is facing
highest competitions in the market. It has to work more on quality of the clothing as there are
competitors sitting on the head of the company. The competition in clothing industry is much
fastest compare to other industry. H&M is fighting competition with many brands and its ability
of fastest visionary outlook is proving the company the best in the market. The assesment is
introducing the KELLER's Brand Equity Model which is based on Customer-based Euity Model.
Is is the model in which customer is main focus. To sustain the market share, H&M is using
Keller model to improve and manage the market share in optimistic form in the organisation.
This model is in positive form by which company get helps in many ways. H&M is alos using
this model for satisfing its customer about the barnd quality. The report makes understand the
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brand recognisation, brand identity, brand positioning, brand personality and brand affinity of
H&M group. The report is critically analysisng the standardisation and adaptation of KELLER
Model, and how to apply these mode and report is involving tha standardisation and adaptation
to price, productys, promotion and place in the internationla marketplace.
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Question 1
Examine and effectiveness of the organisation with current branding strategy
Customer relationship management defines as the technology for managing relationship
and interaction with customers and potential candidates as well. With this consideration, there
are several practices, strategies and technologies which manage and analysis customer
interaction(Vomberg, Homburg and Bornemann, 2015). customer relationship management is
linked with the marketing functions. Therefore, it is important for every business to make
systematic work performances. Additional functions are also implemented by H&M to
implement systematic activities. In the marketing communication, it is important to focus on the
changes that are made enormously which has been taken on the basis of technology and internet.
Within the H&M, marketing priority exist to implement little consequences with modern
interactive marketplace. Traditional approach of branding put maximum emphasis on the mass
media technique in the marketplace (Gürhan-Canli, Hayran and Sarial-Abi, 2016). Role of
branding develop in the wide range activities which determines in the following manner:
 Improve perception of product performances
 Greater customer loyalty
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Illustration 1: Keller Model
[Source: Keller's Brand Equity Model, 2018]

 Great trade and cooperation
However, recently marketing communication environment change that attempt to inform,
persuade and remind customers towards the products and services of H&M. Brand build
relationship with the different consumers so that it helps to perform different functions and
operations. According to the model of Keller, it can determine that marketing communication
build brand equity. Marketers are employed with different activities that assists to understand
role of different communication in branding. Comprehensive and cohesive model of branding
assists to understand thought, feelings, perception, etc. As per the opinion of Professor K L,
Keller and Professor D, Aaker customer based brand equity model is extended to develop
effectiveness and consider consumer knowledge structure. With considering CBBE model, views
of brand building so that customers steps taken on the basis of different steps that are as follows:
 Ensure identifications of the brand with customers for specific product class and
customer needs
 Firmly, it establishes brand meaning in customer mind to link intangible and tangible
brand association.
 Eliciting responses of customers with brand judgement and feelings (Vomberg, Homburg
and Bornemann, 2015).
 Converting responses to create intense, active loyalty and relationship as well with brand.
As per this model, enacting four steps carried pyramid of 6 building blocks which are
related with the brand. Furthermore, it consists rationale route which exist in right hand side.
Creation of significant brand equity determines to reach with top resonance. Following are 6
elements consider in the figure:
 Brand salience is considered that how easily customers think towards the brand in
different purchase and consumption situation.
 Further, brand performances is well towards product, services to meet with customers
functional requirements.
 In H&M brand imagery describes extrinsic properties towards the products and services
which includes ways to meet with customers demand and complete their psychological
needs.
 Brand judgement focus on the customers with opinion and evaluation (Gürhan-Canli,
Hayran and Sarial-Abi, 2016).
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 Feelings of them consist with the emotional responses and reactions with respect to the
brand.
 Last is brand resonance which defines nature of relationship which possess by customers
with effective brand.
Resonance reflects on the intensity which consider depth of psychological bonding among the
customers with brand. Furthermore, it also develops level of activity that engendered by the
loyalty of customers.
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Certain products and services of H&M categories potentially which allow implement
high level of interest and activities. There are several brands which have high resonance apart
from H&M. Brand resonance of chosen business has around 4 dimensions which defines as
follows: Behavioural loyalty: In respect to determines behavioural loyalty repeat purchase and
amount categories with volume attributed in the brand. Hence, H&M need to identify that
which brand prefer by customers. Furthermore, they are requires concentrate on the
quantity that purchase by customers. Attitudinal attachment: When customer consider views towards the brand in special
context, the chosen business need to consider love towards it. In this regard, customer
need to describe brand with favourite possession. Little pressure need to implement to
look forward towards the brand (Hollebeek, Glynn and Brodie, 2014). Sense of community: When customers feel affiliation and kinship, other people are
associated with the brand. In addition to this, it is essential to identify that customers
interact with brand users in the H&M. With this regard, customer interaction needed with
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Illustration 2: Sub dimensions of brand building blocks
Source: (Building strong brands in a modern marketing communications
environment, 2018)

representatives of the enterprise. It is the best way to attain and fellow brand users
representatives in the company (Gürhan-Canli, Hayran and Sarial-Abi, 2016).
 Active engagement: In this regard, it is important to identify that personal resources are
properly used or not in the selected business such as time, energy, money, etc. These are
beyond with those resources that expanding with effective consumption of the particular
brand. When customers are receive updates, exchange, correspondence, formal and
informal representatives define in the business. With visiting customer brand, it can be
stated that different activities helps to make creative results (Su and Tong, 2015).
Marketing act, it is important to focus on the changes that are made enormously which
has been taken on the basis of practical application and computer network. Within the
H&M, marketing priority exist to instrumentation little consequences with contemporary
interactive mercantile establishment.
Marketing communication effects on brand equity
In respect to look upon the customer based brand equity perspective, marketing
communication activities contributes in equity and drive with sales in different aspects. In order
to create awareness of the brand, right association link could be develops to create brand image
among consumer memory. Therefore, it assists to look on the eliciting positive brand judgement
and feelings which create strong connection. Different types of brand association formed with
equally strong and favourable outcomes that attract young generation of people. For example,
social media, printing media, etc. (Vomberg, Homburg and Bornemann, 2015). These kinds of
marketing communication activities helps to integrated and deliver consistent message to
accomplish strategic positioning. Starting point of the planning develop marketing
communication with potential interaction that helps to target customers. In H&M, experience and
impression highly influence at the stage of buying process. This could be understand that it helps
to allocate communication dollars in more efficient and effective ways. Design also implement
with right communication program that assists marketers to implement build brand equity. In
order to maintain and strengthening, position of the chosen business encourages consumers
towards the products (Liu and Chou, 2016).
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Question – 2 : Compare standardisation and adaptation models to the international marketing
mix of your brand
There are some new marketing strategies must be used to improve internal and external
working environment. In addition, promotion techniques is help to increase number of customer
or improve profit rate. With the help of some new promotional material mix techniques are
improved current market (Sneath, 2015.). There are some new models has work for future
improvement in overall market sector. On the other hand, promotion mix are as follows :-
 Advertisement :- In this context, more and more advertisement is assistance to alteration
level of customer in market place. On the other side, advertisement is used to indefinite
quantity client level (Goldman, 2016). It is a way of aggregate communication. It is the
least popular and widely foreseen tool of market publicity. Major part of message budget
is used up for ad alone. Assorted advertising media – telecasting, radio, paper, magazines,
out-of-door means and so forth – are used for advertisement the production.
 Personal selling :- In personal selling is to be give the right way or right time or right
person. It is to be called as the door to door selling. The purpose of selling will be or to be
involve the person le selling.
 Sales promotion :- In sale promotion covers those commerce activities other than
advertisement, content material, and personal selling that stimulate consumer buying and
trader effective. Sales promotional material mainly regard short-term and non-routine
incentives, offered to dealers as well go through (Kitchen, 2016). There are some work
are is based on the marketing activity to improve overall conditions. It is to be consist the
short term period and non involve short term selling efforts.
 Publicity :- In this stage, publicity is more important part also way of mass
communication. It is traditional form the public copulation conducting seminar,
charitable donation and mass media (Kitchen, 2016). This is help to improve market
research is help to find out the new things to change capacity building or increase profit
rate.
 Public relation :- In Public relation is maintained the relationship with not only one
customer, middleman but large number of customer is help to improve productivity and
profit will be managed. It is part of publicity.
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There is all the techniques is to be used in promotion mix strategies or improve the level of
customer in market place. In H&M, experience and belief highly causing at the stage of buying
activity. This could be realize that it assistance to allocate communicating dollars in much
efficient and effective ways (Goldman, 2016). Design also implement with right human action
system of rules that assists marketplace to instrumentality build brand assets. In order to hold and
strengthening, position of the selected concern encourages devour towards the merchandise.
In addition, public relation is cover the number of people and increase overall working
work outside the organisation. There are five stellar elements or content mix. Each tool/part has
its point, limitations, and inapplicability. Bet upon company’s internal and extraneous ascertain,
one or more creature are used. Mostly, companionship encouragement course of study pertain
more weather, each component lissom another. The work is to be depend on the over the period
and increase productivity and profit will be managed. On the other hand, there are model of mix
marketing is to be used in international level and manage work inside as well outside the
organisation (Sneath, 2015.). Some changes will be made with the help of communication,
promotion techniques will be managed external work or handle number of different type of
customer.
Hence, H&M need to denote that which name prefer by bespoke. Moreover, they are
definite quantity food product on the quantity that leverage by made-to-order. In addition, profit
and growth will be depend upon only promotional and cost will be changes at the establishes
trade name meaning in customer head to link intangible and touchable brand organization.
CONCLUSION
Form the above report is based on H&M Group stating the brand equity models and
current branding strategies of H&M and by applying Glocal theory to the international marketing
strategies in the organisation. As per the above report is focus on strategies are made to achieve
the targeted goals of the organisation and H&M marketing coverage is adorable only because of
technical strategies. In this report is supported on resources that expanding with effective
consumption of the particular brand. When customers are receive updates, exchange,
correspondence, formal and informal representatives define in the business. Form the above
report is based on H&M brand imagery describes extrinsic properties towards the products and
services which includes ways to meet with customers demand and complete their psychological
needs. In this report use more and more marketing activity to cover cost and increase number of
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customer. In this report is focus on marketing communication, it is important to focus on the
changes that are made enormously which has been taken on the basis of technology and internet.
Within the H&M, marketing priority exist to implement little consequences with modern
interactive marketplace.
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REFERENCES
Books and Journals
Liu, C.H.S. and Chou, S.F., 2016. Tourism strategy development and facilitation of integrative
processes among brand equity, marketing and motivation. Tourism Management, 54,
pp.298-308.
Vomberg, A., Homburg, C. and Bornemann, T., 2015. Talented people and strong brands: The
contribution of human capital and brand equity to firm value. Strategic Management
Journal, 36(13), pp.2122-2131.
Su, J. and Tong, X., 2015. Brand personality and brand equity: evidence from the sportswear
industry. Journal of Product & Brand Management, 24(2), pp.124-133.
Gürhan-Canli, Z., Hayran, C. and Sarial-Abi, G., 2016. Customer-based brand equity in a
technologically fast-paced, connected, and constrained environment. AMS review, 6(1-
2), pp.23-32.
Hollebeek, L.D., Glynn, M.S. and Brodie, R.J., 2014. Consumer brand engagement in social
media: Conceptualization, scale development and validation. Journal of interactive
marketing, 28(2), pp.149-165.
Jobber, D. and Ellis-Chadwick, F., 2012. Principles and practice of marketing (No. 7th).
McGraw-Hill Higher Education.Keller's Brand Equity Model
Blythe, J., 2006. Principles & practice of marketing. Cengage Learning EMEA.
Donovan, R.J. and Henley, N., 2003. Social marketing: Principles and practice. Melbourne: IP
communications.
Cannon, T., 2016. Basic marketing: principles and practice. Thomson Learning.
Palmer, A., 2018. Services marketing: Principles and practice. Simon & Schuster Books For
Young Readers.
Kitchen, P.J., 2016. Marketing communications: Principles and practice. Cengage Learning
EMEA.
Goldman, A.E 2016. The group depth interview: Principles and practice.
Sneath, P.H 2015. Numerical taxonomy. The principles and practice of numerical classification.
Online
Building strong brands in a modern marketing communications
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environment, 2018. [Online] Available through:
<https://pdfs.semanticscholar.org/f180/3ea131a96817d142900777cc1c73b41ee6c4.pdf>
.
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