Brand Management: Importance, Tactics, and Collaborative Practices

This document discusses the importance of branding in business practice, tactics for developing and managing brand equity, portfolio management strategies, and collaborative practices in brand management at national and international levels. It also explores different models, theories, and concepts used to manage brands effectively over time.

UNIT 41: BRAND MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Significance of branding and it’s emerge in business practice...............................................3
Important elements of successful brand tactic for developing and managing brand equity. .4
Ways through which brands can manage productively over duration using application of
models, theories and concepts................................................................................................5
LO 2.................................................................................................................................................7
Varied tactics of portfolio management, brand equity, hierarchy and equity management...7
Critical analysis based on brand hierarchies, equity and portfolio management by utilizing
concepts, frameworks and models..........................................................................................8
LO 3.................................................................................................................................................8
Brands are managed in partnership and collaboratively at national & international level.....8
Techniques utilized to extend and leverage brands................................................................9
LO 4...............................................................................................................................................10
Different forms of approaches in context of managing and measuring brand value............10
Critical evaluation based on application of methods for measuring & managing brand value in
relation to enduring and developing a powerful brand.........................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
Brand management can be defined as set of techniques that has been used by many
companies while operate in specific sector in order to increase perceived values of services and
goods. It can consider as marketing function for which different methods could use to perceived
importance of a brand over duration. This study will be based on Nestle UK, which falls under
list of leading health, nutrition and wellness companies in the world. This assignment will
explain branding importance as marketing tool and its emerge in venture practices. It will define
components of brand strategy for building & managing brand equity and will also describe
models use to manage brands. Furthermore, this report will justify different strategies in context
of brand equity, hierarchy and portfolio management. It clarifies collaborative and partnership
practice of chosen company at domestic and international level. This assignment will also
explain different sorts of approaches for measuring and then managing brand value.
LO 1
Significance of branding and it’s emerge in business practice
Branding is the procedure of communicating a different selling proposition that sets a
service or good apart from intense competition (Escalada, 2019). It can be considered as
marketing practice or function in which Nestle created a symbol, name or design that is
effectively identifiable as belonging to venture. Marketing team is accountable for branding
process as it assists to determine products and distinguish it from other items offer by another
brand while being operate in similar sector. This term is quite beneficial and useful for chosen
company because it helps to actively shape its brand image in market even better than other
firms.
Importance-
Branding is essential and valuable asset for Nestle because it makes memorable and
excellent impression on target market and allows them to know what to except from chosen
brand. It is one of the most effective ways that help to distinguish company from its business
rivals and clarify what firm is offer to customers that makes their best choice (Koporcic, 2020).
Branding is important because it supports to create buyers preference for service or item behind
Nestle. In additional, this marketing tool is valuable as it assist to generate increase market share
and revenue as well.
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Branding is important for company in several terms for example it helps in term of
permitting firm to survive in temporary crises. It is essential to venture because it put overall
impact on sales and productivity. It could change how customers perceive firm, it can drive new
venture and increase brand awareness. It can be analysed that branding increase brand values and
generates new consumers even better than last few months or years.
Emergence of branding in business practices-
There are several reasons behind branding emergence accessible in the business world,
for example it was emerged in order to improve brand recognition and creates trust between
service or product user and provider like Nestle. It has emerged in business practices by claiming
products or services. It has evolved over years from farmers claiming credit for their work and
goods were improved than others
Important elements of successful brand tactic for developing and managing brand equity
Brand equity is marketing concept that defines a brand value which can determine by
customers experienced and perception with Nestle (Ganushchak-Efimenko, Shcherbak and
Nifatova, 2018). It describes degree of sway company name has in minds of target market and
value to having venture that is recognizable and well thought of. There are different components
available in world of business that uses for building & managing brand equity.
Understanding consumers-
This element help to develop and then maintain brand equity in regards to Nestle, as it
can help to determine and understand target market and their needs as well which strength
company to manufacture goods accordingly. It develop brand equity in form of gaining attention
of new buyers and perceiving firm as the best food products manufacturers in the world
(Dörnyei, 2020). Organization can use this component by manufacturing quality products for
customers which in return allow them to measure repeatable act conduct by target market in
context of specific product like Kit Kat. Loyal consumer base allow firm to develop brand equity
in form of promotion and it maintain effectively by determining experience of each customer.
Brand Voice-
A successful Brand strategy comprise of key elements among which the current one helps
in building as well as managing brand equity. For example, Brand voice as element of brand
tactic refers to emotion and personality infused into Nestle communication. Company can build
its brand voice that develop and maintain brand equity by creating effective marketing content
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that can use in form of business voice in order to promote its products and venture at national as
well as international level.
Brand promise-
Successful business or brand strategy comprises this element which brings a lot of
benefits for Nestle in form of increasing and maintaining brand equity. It is everything that buyer
could expect from dealing with firm goods (Piehler, 2018). For example, Nestle promise to
produce and market its products in such a manner so as to create value that could be sustained
over long time for customers, workers and its business partners who has operated their ventures
at global level. Firm by fulfilling this promise through their work and goods successfully develop
brand equity and maintain it in term of increasing perceived value for customers.
Brand positioning –
By this element of brand strategy, Nestle should be capable to commit to specific
statement like its aims and mission that could help to strengthen its image in market and allow
them to reach at top position (Koch and Gyrd-Jones, 2019). It is one of the best actions that can
take at culmination of everything else in brand tactic. Brand positioning help in developing and
maintain brand equity concept by setting strong image in and influencing customer’s mind,
which is quite beneficial in form of increasing customer base even better.
Brand values-
Effectively communicating an excellent set of principle can widely beneficial to how
customers perceive Nestle. Values of company guide its workers to act ethically and
systematically that can help to achieve mission, vision and objectives of business which turn into
high customer satisfaction after providing quality products. It help to develop brand equity in
term of developing believes of each buyer that he or she is receiving excellent value added
services or goods which is worth it and valuable for them.
Ways through which brands can manage productively over duration using application of models,
theories and concepts
There are different models, concepts and elements are accessible that has been used by
companies in order to managed their brands in effective and systematic manner, which is really
very essential do to. Keller’s brand equity is one of the most appropriate models that assist
Nestle and its marketing team to systematically manage its image and brand name in market for
longer period of time (Narteh, 2018). It comprises four key stages that are mentioned below;
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Brand identity-
Nestle and other companies can manage its brands by developing and using
advertisement campaigns as it help to show identity of organizations in front of target market and
assist to gain attention of new customers. Campaigns are the best idea in form of providing
information about business and its products.
Brand meaning-
When buyer becomes aware of brands like Nestle through considering its marketing
campaigns, they want to know more about it and use techniques or technologies to get
information about its goods. if companies perform according to its commitment and work
effectively over time, it leads to build trust between buyers and brands which help to manage
ventures successfully either in domestic or global level.
Figure 1: Keller's Brand Equity Concept
(Source: Keller’s Brand Equity Model, 2018)
Brand response-
According to this stage, brands management should address decisions and build positive
feeling among customers by providing appropriate response about products and its business as it
help to increase consumer expectations and feeling which he or she can share with friends and
family members.
Brand relationships-
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In order to manage brands successfully and effectively, management must build strong
relation with their customers, by providing new and existing offers to them in form of discounts,
coupons etc. which allow people to love a brand so much and influence their decision making
that permit to no consider purchasing products to another one.
LO 2
Varied tactics of portfolio management, brand equity, hierarchy and equity management
Strategy of Portfolio management-
It can define as selection, prioritization and management of Nestle project and operations,
in way with its strategic aims and objectives and ability to deliver ranges of products. House of
brands is one of the best strategies that chosen brand can use in order to manage its portfolio in
systematic and effective manner (Yu, 2020). It is usually applied key strengths and infrastructure
of parent business to different of markets through one or more standalone house companies. This
model refers to portfolio where company have variety names across categories for example,
Nestle is known as the best food provides brands in the world. It is exact opposite of branded
house, as house of brand maintain concentrate on individual and consistent brand which improve
and manage its products portfolio effectively. In recent time, most of main consumer products
organizations utilize this concept to manage portfolio in systematic manner which is really very
essential.
Tactic of Brand hierarchy-
Brand hierarch is appropriate and systematic branching format of company distinctive
components for its sub items. When Nestle begin to diversify its goods, with new items and
different positioning plans, it can graph brand hierarchy to assist with determination of its items.
Hybrid Brand tactic is appropriate for brand hierarchy management, it purpose is to incorporate
components of branded house and house of brands concepts to give Nestle and other brands as
well maximum benefits, either via independence or endorsement (Ottovordemgentschenfelde,
2017). Brand hierarchy of chosen firm can define by its ranges of products names lie milk
products, nestle milk made creations, milk coffee, my first cup, sunrise premium, etc.
Furthermore, company has different goods forms in chocolate like dark chocolates, dry fruits,
fudges, fine chocolates and more. With this strategy, organization can manage its brand
hierarchy in effective and systematic manner by conducting endorsement practices, which help
to gain several benefits in term of increasing sales.
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Tactic of Brand equity management-
Brand equity term comprise key dimensions such as brand loyalty, awareness, association
and perceived quality, which offer value Nestle in varied manners. Branded house along with
above two approaches plays vital role in context of managing brand equity in excellent manner.
As it also called one firm brand tactic, Nestle has a single brand, marketplace positioning, logo
mark and messaging. In simple words, the image of a brand in market find as business branding
method appealing which help to gain attention of new buyers towards purchase and also assist to
retain existing one for longer period of time that in return help to manage brand equity
successfully and gain benefits for company in form of gaining competitive advantages and
generating more revenues. Google and Apple is the most appropriate examples of branded house
because Apple is one of the primary brands that has comes many subset companies like iTunes,
Mac and iPhone.
Critical analysis based on brand hierarchies, equity and portfolio management by utilizing
concepts, frameworks and models
As discussed above hybrid, branded house and house of brands are three different tactics
that has been utilized in order to manage portfolio, brand hierarchies and equity as well in
context of Nestle in systematic manner, which is actually very essential to do.
It can be analysed that house of brand tactic is beneficial for company because it offer
venture with a different of offerings flexibility and freedom to flesh out each operations or
brands. It helps to reach at excellent capability to define unique target consumers and create a
item that broaden firm demographic reach. On the other hand, when firm chose this tactic it
requires to spend more money to manage differentiated brand which is quite expensive act.
The best thing about hybrid brand tactic is that it helps spread awareness and increase
market penetration that can leads to smaller acquisition and new off short or outlet. While it
impact negatively upon Nestle, in form of increasing costs and consuming management time for
managing wider portfolio of products or hierarchy of brand.
Branded House strategy provide benefits to brand in form of offering different goods
under one branded entity including one brand code. On the other side, it still has number of
potential problems like its limitations could not allow obtaining great success when parent brand
is underperforming or weak.
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LO 3
Brands are managed in partnership and collaboratively at national & international level
In recent times, each brand conduct collaborative and partnership business practices in
order to reach at global level and increase profitability even better than other brands that has
established its ventures in similar industry and has operated from years ago. Brands like Nestle
manage collaboratively at domestic and international level by conducting legal and ethical
practices in form of making legal agreement with other brand who has strong brand image in
marketplace (Lannon and Walsh, 2019). It is a procedure of conducting practices together in
which two different companies concentrate on achieving a common aim and objective and
reaching a mutually acceptable decision.
Furthermore, brands can manage partnership form of brand management at global and
national level by making a legal partnership with other company and sharing similar values in
effective manner. It can be analysed that partnership at both levels can successfully manage by
following terms and conditions of contract made between Nestle and other brands such as
Starbucks, which also falls under category of leading coffee houses brands in the world.
Collaborative practices and partnership agreement can effectively and efficiently manage by a
brand like Nestle by clearly defining each roles and accountabilities to partner firm which is
really very important and helpful in term of managing overall operational and functional units
and increasing operational efficiencies that help to serve quality products.
Effective collaboration between Nestle and Starbucks bring a lot of benefits when it
manage successfully by conducting ethical practice and acts in form of sharing information and
values without making unethical activities. Both brands needs to be honest with each other which
is actually quite important to do as it help to keep partnership relation forever and assist to drive
it towards obtaining further opportunities at international level in term of building brand position
at top level and at domestic level as well in form of gaining competitive edge.
Techniques utilized to extend and leverage brands
Brand leverage is one of the best tactics which utilize power of an existing company
name to help a business entry into a new but related item category by communicating valuable
goods data to customers. In context of this term, line extension technique is appropriate because
it is useful to reach out to new target market or segmentation who seeks new features, benefits
not being provided by company in category. This approach help to establish loyal customer base
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and strong relationship with retailers within profitable market while operate business in either
domestic or international level. Furthermore, when firm use this technique for brand leverages it
provides benefits in different terms that discuss above, but also provide negative aspects because
it has some drawbacks. For example, line extension can act as serious drain on firm resources.
Brand extension can define as act when a organization utilize one of it’s establish brand
names on a innovative and totally new items. It is also known as brand stretching that use firm’s
already develop name or equity to assist it launch its newest item. Fit & leverage is the best
technique that can use for brand extension tactic as it allow Nestle to measure its customer
purchase intent before making investment in brand extension process. This approach gives
company a wide benefit overall firms who simply put same logo on varied item each year. On
the other side, when firm does not fit well in category with this technique it can leads to decrease
sales and profitability.
LO 4
Different forms of approaches in context of managing and measuring brand value
Brand value refers to replacement or sale value of a brand like Nestle, it can recognize as
financial significance that company carriers. In order to measure and manage this concept,
management could use appropriate and relevant techniques that are mention below in context of
chosen brand.
Brand value-
By using this technique Nestle can measure its brand value by calculating further net
profits that could attributed directly to its brand to identify its recent value. After that process,
firm can manage it effectively by taking right action and using brand values approaches
accessible in corporate world. It can be measure by considering amount on balance sheet.
Brand awareness-
Along with above technique, Nestle can utilize brand awareness as key element for
managing brand value as it build brand equity. Furthermore, by using effective and smart
advertisement tools, marketing team can generate brand awareness that help managing brand
value in systematic and excellent manner. It is degree to which target customers are capable to
recognize or recall Nestle.
Market share-
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It is one of the most common techniques that management within different brands use to
measure its brand value within marketplace as it help to define percent of total sales in sector that
assist to known how many consumers like and purchase its products. By considering gap
between earlier and current market share ration, manager could determine its brand value.
Consumer attitudes-
It composite of buyer’s belief, feeling and behavioural intensions towards some object
within marketing context usually Nestle. Customers attitude define as feeling of favourableness
and unfavourable that individual buyer has toward chosen company products. Firm by
considering reviews of its target market on social media pages or accounts, management can
measure brand value in this form.
Purchasing intent-
It is probability that buyer could buy products of Nestle. In order to measure this element,
organization marketing team can use predictive modelling that help identify possibility of further
outcomes based on historical info. Marketing department through finding and searching
consumers visiting number at local supermarket or stores where organization products has been
sold.
Cost based-
It is the best method that Nestle Company can use to manage brand value by setting
prices of each item according to buyer needs and target segment. Firm with this approach can
add a fair rate of return to compensate for its risks and attempts. Cost based approach works
effectively in term of increasing customer base.
Market based-
This approach can engage low or middle income customers and supply products to them
which he or she can afford and under their pocket. It can use for managing brand value in form
of allow consumers to purchase items according to their needs without thinking too much
because of prices or costs.
Financial based-
It is one of the best brand valuation techniques that marketing and operations team can
use which is quite beneficial in form of generate brand awareness and increasing profitability. It
can be analysed that value of Nestle is dictated by further expect cash flows that can be
attributable to firm itself.
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Critical evaluation based on application of methods for measuring & managing brand value in
relation to enduring and developing a powerful brand
It has been analysed that cash based approach help to estimate cost of recreating Nestle in
recent time. It provides benefit in term of increasing value and boosting brand image within
market place. On the other hand, it has disadvantage in regard to chosen brand in term of
decreasing market shares and profitability.
Furthermore, brand awareness is other technique that use to measure and manage brand
value in relation to creating and enduring strong brand. It bring a lot of benefits in term of
increasing customer base and generate revenue, while consumer a lot of time and efforts of
marketing team during using advanced technologies.
CONCLUSION
By summing up above discussion, it has been summarized that Nestle by using branding
marketing tool has generated its brand awareness at all over the world; it has gained attention of
new customers and business investors towards venture. By using brand positioning, brand
promise and values as key elements, organization has developed and managed brand equity in
effective manner, which is quite beneficial for its image within marketplace. Furthermore, from
above analysis it has been identified that by using branded property, house of brands and hybrid
strategies firm has successfully managed its portfolio management and brand equity as well. By
making legal agreement, brands have successfully managed its partnership and conducted
collaborative practices at national & global level effectively, which in returned increased its
brand image in extreme extent. Moreover, Nestle by using appropriate methods and techniques
has measured its brand value and managed it efficiently.
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REFERENCES
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Online
Keller’s Brand Equity Model. 2018. [Online]. Available through:<http://www.free-management-
ebooks.com/news/kellers-brand-equity-model/ >
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