Importance of Branding as a Marketing Tool and Brand Strategy for Building and Managing Brand Equity

This report discusses the importance of branding as a marketing tool and evaluates the main components of a successful brand strategy for building and managing brand equity. It also assesses various strategies of portfolio management, brand hierarchy, and brand equity management. The case study focuses on Samsung, a global electronic company.

UNIT 41-BRAND
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAINBODY ...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Discuss the importance of branding as a marketing tool as well as why and how it has
emerged in business practices.....................................................................................................3
P2 Evaluate the main components of a successful brand strategy for building and managing
brand equity.................................................................................................................................4
TASK 2............................................................................................................................................5
P3 Assess various strategies of portfolio management, brand hierarchy and brand equity
management................................................................................................................................5
TASK 3............................................................................................................................................8
P4 Critically analysed the brand which managed collaboratively and partnership both at
domestic and global level. ..........................................................................................................8
TASK 4..........................................................................................................................................11
P5 Analyse the different kinds of techniques for calculating and managing the brand values.11
CONCLUSION .............................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
Brand management is an activity that is used by the management team of marketing
which uses various tool and approaches to enhances values & image of product at marketplace
with the aim of increasing sale and profit margin of company. It is a procedure used by company
for maintaining, holding and improving the brand values of product which includes cost,
customer satisfaction, etc. (Greco and Polli, 2020). The present report is based on Samsung
company of electronic industry, founded by Lee Byung-Chul in 1938. It is a south Korean
company which operates its business across globally. In this current assignment the discussion
about the importance of branding as a marketing tool is carried out as well as about main
components of successful branding strategy for creating and managing the brand equity. Various
strategies of portfolio management, hierarchy and brand equity management are demonstrated
along with it, how brand manges collaboratively is explained. At the end evaluation of several
techniques are used by Firm to measure and mange the value of brand.
MAINBODY
TASK 1
P1 Discuss the importance of branding as a marketing tool as well as why and how it has
emerged in business practices.
Branding is defined as an effective business practices which provides benefits to produce
a good image. The major main of branding is to analyse the quality of products which is an
essential aspects in order to hold the valuable clients for longer period (Melewar and Skinner,
2018). This is basically used to check the taste and preferences of consumer.
In context of Samsung their main aim of branding is to establish differentiation in
products on the basis of quality in order to grab or attract more people towards their products. In
the aspects of earning more reputation at market place , there is some importance of branding as
a marking tool and which is described as below:
Branding enhances recognition: The most key elements for a company is brand logo
which helps company to attract huge number of people towards their product so that people will
get influence towards their product or service. This will provides benefits to them in enhancing
the sales and profit of company. In context of Samsung they adopted innovation and creation into

their products as well as produces good quality product and give them a brand in order to make
different from others products.
Branding generate new consumers: Strong image of brand leads to the successful
execution of company strategies and that aid company to capture large market shares by
increasing the sell of companies product. In relevance to Samsung, they are well known at
marketplace for their brand (Beverland, 2018). This is because they offers variety of products
which posses different quality to other brand and that provides opportunity to Samsung group to
generate new customers.
Improves employee pride and satisfaction: when workers carry out function in a strong
branded company and truly stands behind the brand then they receives a huge amount of
satisfaction while working in a company for instance the employees of Samsung feels proud that
they are the employees of a well images and branded company.
Creates trust within marketplace: A well strategies and professional appearance aids
company to build trust among their potential consumers and clients. All these more likely to
perform with reputed company.
Additionally, there are certain variation by which consumer get confused about their
products offered by company and its brand. Product and brand both are the distinct term which is
explained below:
Brand Product
Brand is different term that explain the
nature and quality of goods at marketplace.
Products are fundamentally copyrights in
industry with the aim of selling.
Brand is designed on the basis of
preferences and trends of consumer and that
cannot be copies by any others.
The products of any firm can be copied
easily by other players at marketplace.
Brand is totally different terminology that
creates the perception of consumers.
Product can be tangible or intangible in
nature.
Therefore it can be said that branding is the main component of firm which creates
several benefits for company in order to gain success and growth in business unit. It aids
company to establish a strong connection to their valuable customers by gaining their trust

towards service or products. Which leads towards maximization of profitability of company as
well as company can achieve its financial goal too at global scale.
P2 Evaluate the main components of a successful brand strategy for building and managing
brand equity.
The terminology brand equity refers to the value of brand at marketplace. It can be
measured by the perception and experienced of customers in market. If the perception of
consumer about product is positive then it will aids company for making strong brand image
about product at marketplace (Mills and Robson, 2019). In which the positive brand equity
consist many values like it maximizes the cost of product, boosting higher market shares
compared to other rivalries etc. in context of chosen firm some key components are explained
below for successful brand strategy.
Brand awareness : This is the vital factor which is linked with branding for attracting
potential buyers. In context of selected firm they are well known for their brand across globally.
According to this factor, company can gain competitive advantage at marketplace by the self
beliefs of clients which establish a brand image in mind of consumers.
Perceived quality : It considered the taste and preference factors related with the quality
of goods that is offered to consumers for full filling their needs. It discusses the opinion of
consumers towards quality of products. In any consumer made any perception about purchasing
the product of Samsung then it is only because of quality.
Brand association : It is an action that is seated in depth in consumer mind about brand.
Association are the reason to purchase product/ service that is related with quality and benefits of
brand. For instance Lux a FMCG product that creates a positive image of mind of consumer
(Baumgarth, 2018).
Brand loyalty: It refers to behaviour of consumers where they are committed with brand
and do purchasing again and again the same brand products. It acts as a currency and something
for brand that cannot be copied by any other players. In context of Samsung if consumer buy
their products every time when they needed then it will be termed out as brand loyalty of
consumer for Samsung.
Brand assets: It is the consistent communication that makes easiness to consumer for
recognizing and identifying the brand and its product. In which it included various aspects such

as brand name, logo, slogan celebrities endorsing etc. For example William Macy and Wesley
Snips advertisements for Samsung products (Lim, Jee and De Run, 2020).
TASK 2
P3 Assess various strategies of portfolio management, brand hierarchy and brand equity
management.
Brand portfolio can be defied as the collection of brand which are commanded by
organisation. In context of large business unit, as they operates their bushiness at global level,
and possess several brands, services companies and in order to maintain all these, they uses
brand portfolio.
Portfolio management:
It is a process that are useful for the measurements of strength, weakness, opportunity and
threat of company for performing various activities at a time (Nguyen, Melewar and Hemsley-
Brown, 2019). In relevance to chosen firm, it refers to managing the cash outflows in terms of
Bonds, cash mutual funds shares etc. it tends to management of money of an individual within
the guidance of Portfolios mangers. In order to engage the portfolio management, company
assign their funds by considering all brand and its role in order to support all brands by vertical
and horizontal expansion.
In addition this this company can use various strategies for brand expansion and brand
equity such as by using distinctive component, by adding new features, attributes or by
introducing a similar product in a different way that can be differ from the parent product. For
this there are two types of portfolio strategies and models that can be used by enterprise and both
of these are explained below:
Brand of House-In this strategies, the company acts as main brand and any other brand
cannot be detect the main brand. This strategies aids company in making string brand which can
be easily recognises and memorised by anyone. In context of selected firm, they produces many
electronic products like mobile, TV, AC, laptop, and many more. For this company uses various
strategies so that it will become easy for consumers to become familiars with all theses products.
They keep their logo of company on its products for the brand awareness. It become the most
powerful brand strategy as it creates a good impression in front of buyers.

House of brand- This is totally contrasting to brand of house. In this sub brands are
promoted instead of main brand i.e. company. In which various house of brand business are the
products of buyers and companies which get brand of large and international equity (Piehler,
Schade and Burmann, 2019). For instance Samsung Galaxy series in which they manufactures
certain products line like Galaxy S, Galaxy S2 till Galaxy S5.
From above discussed two strategies it has been found that Samsung could use house of
Brand in order to launch new products such as Samsung Galaxy Note series.
Brand Hierarchy
It refers to summering of brand strategies by simulating the products of company on the
basis of similarities and variation. It is crucial for a firm to make difference in products so that
consumer will recognise easily.
Corporate brand – The top level of brand hierarchy is the corporate brand which is the
main brand. The mobile phone of Samsung are the part of Samsung brand.
Family brand- The next lower level of hierarchy is family brand and it can be said as
rage brand or umbrella brand (Iyer, Davari and Paswan, 2018). The reason behind the name of
family brand is it may posses various products under it. In context of Samsung, their products
like TV, Mobile are the part of Samsung brand.
Individual brand- Individual brand are connected with only one category of product. It
does not mean that it posses only one product, it may have multiple products differ in version,
colour, model etc. For example the mobile products of Samsung like Samsung Galaxy Note,
Note2, and so on.
Modifier-This is the lower level of brand hierarchy. It aids consumer to identify various
products under the individual brand. For example Samsung produces various models of products
like Samsung LED TV, LCD TV and their versions. Al these makes something different
specification in order to help consumers.
Strategies of brand management equity:
Brand equity is a phrase of maketi8ng that describes that brand values and the importance
of products. This term reflects the detected value known name, symbol, logo and other identity.
This is the value of brand that is detached by the customers over other product or service. For
this company use logo, symbol brand name etc. so that consumer get awareness about product, or

brand. It is crucial for company as if the brand has positive equity, then it will be more known by
the loyal consumers and other players of market.
In order to build strong image of brand, a consumer based equity model is there which is
given by the Kevin lane Keller to built a strong value that supplies a structure how consumer
think and feel about services or product which is offered by company (Abrahams, 2016). It
consist four steps that can be used by Samsung company.
Brand identity: It refers to info or message that a consumer receives about product or
service. In context of Samsung, they creates logo, symbol tag-lines, social media content in order
to provide awareness about product to consumers so that they will feel familiar towards products
and get influence to buy that.
Brand meaning: This is related with the aim or reason on that consumer feel satisfies and
product after purchasing. If the consumer will get satisfaction they will buy theta product again
and this will leads towards enhancement of sale and profit of company. This step is further
divided into two steps i.e. performance and imaginary. If the quality and price of goods are
excellent then the performance of product will be goods and that creates a good image at
marketplace if this will happen then consumer will buy that product again and again. In context
of Samsung they have potential to provides a fantasy to their consumers about products as they
are well known at market for their brand (Couto and Ferreira, 2017).
Brand response: In relevance to Samsung it is connected with the quality of products, for
example if they offers good quality product at reasonable cost then consumer will feel happy and
satisfied after purchasing their brand products. If customer feels positive then their response will
also be positive which is beneficial for company in terms of loyalty.
Brand resonance: In context of Samsung it is related with the loyalty of consumers as
the rate of competition at market is very high as well as there are various substitutes products
present in market that can influence loyal consumers for switching. The chosen brand wants to
maintain its position at market place then they have to manufacture good quality products at
affordable price.
Communication: Brand equity cannot be achieved without powerful communication
strategies. In which it would be multilingual culturally sensitive, online and mobile. Marketing
communication is necessary to make sure accurate and professional communications across
markets.

Awareness: A brand offers strategic competitive advantage and considerer unmet needs
but unless marketing research represents strong sales projections, non of that matters if
customers are not aware of it. Brand awareness means consumers remembers about brand. With
the help of social media, promotions, brand managers brand awareness can be created.
TASK 3
P4 Critically analysed the brand which managed collaboratively and partnership both at domestic
and global level.
Brand leverages
There are ample number of brand strategy which utilised by company in order to attract
more customer and achieved goal of the organisation. It is strategy which effectively adapting by
company in order to power of an existing brand name easily converted and made new but they
come under as related product category (Chernev, 2020). For example, Samsung is one of the
leading company and they have diversified business so well known about mobiles phones and
also manufacturing other items like laptop, Tablets and many more which come under as
different category. It involves strong correlated with other items so that brand name set image in
the mind of customer. It is important concept because company launched any new products so it
is great impact on customer and fulfil needs and wants of customer. They provide product details
in order to create positive image, traits and features of brand as well as enhancing goodwill of
firm.
In relevance of Samsung, it launches new product so customer easily accept due to familiar with
its product quality and brand name along with its viable brand so customer have more trust.
These strategies frequently utilized by company because they incurred very less cost due to
product introduced in the market and company have not huge investing amount on promoting
and advertising of products and services. The organisation easily reached to target audience for
new product categories.
Line extension Brand extension
 It refers to it is process when company
launches new item in its same product
category under the same brand name.
 It is another strategy which
organisation utilize in effective way in
order to promotes product and services

Organisation presenting product in
front of customer with added new
flavour, colour, packaging, size and
many more. When company
developing new products under same
brand name so it knows as line
extension and slightly differences
between existing product line.
 Organisation utilize these strategies
because they identify the needs and
demands of customer in order to
modify products which related to
flavour, colour and other (Powell,
2017).
 In context of Samsung deliver wide
range of product and services for
example, it makes line extension in
order to launches new product under
similar product category. For example,
Samsung galaxy note, Galaxy S Series
Galaxy note series, Galaxy note 7 &
Samsung Galaxy 8 and many other
model which manufacturing by
company slightly changes in features,
technologies and price.
under same brand name but in different
product category.
 The main purpose of company to
developing product with same brand
name but different product category
because it attracts more customer,
increasing customer interest and brand
visibility.
 There are so many example of
Samsung such as TV, Tablets, Phones
and many more. Company conducting
market research because know about
customer taste, preferences and market
trends.
Strength of Brand leverage
Brand leverage is important tool which organisation effectively applied in order to
company manufacturing new product and it is known as line extension and brand extension. The
main aim of these strategy company not incurred cost in promotion activity due to company are
well aware about brands and launches under same brand name. In relevance of Samsung, utilise

various strategy in order to enhancing customer base & providing good quality of products. It is
iconic brand so customer like these brand so it is one the strength of Samsung as well as good
brand image at marketplace so it is strength when it developing line extension.
Weakness of Brand leverage and suggestion to improve them
There are various weak factors related to brand leverage which are evaluated below as:
 The price strategy is the main weak factor as the time when Samsung was planning to
launch their new product the price was very high according to expectations of clients.
The firm was focusing on enhancing profitability scale (Chen and Luo, 2019).
 If there was no brand extension over the brands in competition, then it results in failure.
As Samsung had to provide goods with extra features in order to achieve competitive
advantage.
Suggestions for improvement
In order to overcome the weak factors firm had to use effective pricing strategy which are
useful for both the consumer and company. This can be achieved by executing marketing
research in order to identify needs so that products can be offered to them according to their
needs. Another aspect can be Samsung had to execute marketing research in relation to
innovative technology and features build with kind of product demanded by client. In order to
satisfy all their potential client there can be innovation done in their current products which they
are offering to customers thus new product can be developed with additional cost. In order to
attract client, they can use various methods for advertising such as billboard, blog etc.
Collaborative and partnership agreements
This kind of agreements is done by making the relationship between two and more
company, this method is use for the enlargement of businesses of an organization, in the case of
brand development on different country, for spreading of businesses throughout the world. Any
company and industry can use this collaborative and partnership agreements when they want to
spread their businesses on different nation but not having the required assets and resource there
so by the help of this process organisation can make partnership agreements with the company of
that country who can provide them all required resources, agreement involve the sharing of all
essential assets for the businesses project it’s a kind of promise between two organisation for the
fulfilment of all resources (Merrilees, 2016). For example, red-mi is planning for the

implantation of their businesses in other country and for that they need all businesses assets there
so that they have to make partnership agreements with one of the best company of that country,
which can provide all the important resources required by Redmi, and this can be beneficial for
Redmi, as the organisation of that country is already knows about every steps and techniques
have to done for the establishment of businesses in lesser time. The partner organisation of
Redmi of that nation is already have their brand image so it can be effective and helpful for the
Redmi promotion and development on that country.
TASK 4
P5 Analyse the different kinds of techniques for calculating and managing the brand values.
Brand values refers to the image of product at marketplace. It is important for a company
to increase the image of product as it directly affects the sales of firm. In order to maintain the
position of brand value at marketplace, and evaluation need to be carried on the basis of previous
year review or values of consumers. In which there are certain kinds of models and approaches
that is used by the chosen firm in order to evaluate the value of product for their brand and that is
discussed below:
Brand value
The brand value is an element of brand management and that is need to be managed by
company in order to increase the profit and sale of firm. In context of Samsung it has been
analysed that they posses a premium brand image which is supplying the household products at
higher values to their target segment of consumers. With the help of new technologies and
functional aspects of company, the chosen firm Samsung maintain its position at marketplace
and by manufacturing the good quality premium appliances in order to compete with the other
player of marketplace.
Survey- the company can carry out survey process through their consumers in order to
measure the brand values, is consumer get full satisfaction then they will buy that product again
and aids company to enhance the image of product. For instance Samsung is a mobile comp-any
organisation and posses a good brand value in market.
Brand awareness:
The term brand awareness means creation of awareness about the image of product or
brand of firm and this is the techniques that assist company to do the same with the help of using

effective method that can be advertisement channels, brand logo, picture and many more (Popoli,
2017). In context of chosen firm, the logo of company is located behind its all product for the
promotion or awareness of product. For this company can use social media, SEO, and other
techniques to measure the brand awareness.
Social media-With the help of social media company can aware people and carry out
their promotional activities for brand awareness. In relevance to chosen firm they use various
platforms and modes of promotion like Instagram, Facebook, Twitter, Snapchat and many more.
Consumer attitude:
consumer are the key components for a company in order to increase the sales and profit
of company. It includes the beliefs, lifestyle, purchasing decision, behaviour etc. the attitude of
consumer can be positive or negative as it depends on perception, demands or needs of buyers.
For this there are various approaches to analyse the attitude of consumer i.e. market research,
survey etc.
Market research: With the help of market measure Samsung can analyse the needs of
consumers like trends, preferences as well as what kind of products consumer are preferring
more.
Market share:
it shows the margin of total profit that is earned by firm over a specific period of time.
The term market shares means the shares of a specific company at market. In context of chosen
firm they increase their shares by adopting innovation for their products. This is because
competitive edge at marketplace such as Apple Inc. and many more that can acts as barrier for
company. In order to overcome or element all these barriers Samsung provides good quality
product ton their consumers in order to full fill their needs. For this enterprise use co many
approaches such as key performance objectives, innovation etc.
Innovation- By adopting innovation Samsung have an opportunity to increase it market
shares. By introducing changes in their products according to the needs and demands of
consumers they will receive satisfaction (Zumitzavan, 2020).
Purchasing intent
It tends to the willingness and potentiality of buyer towards products or service. For
examine the purchasing intent, firm use predictive modelling in order to determine the results of

future which is bases on Histogram data. Samsung use this techniques for finding the future
customers. Through Purchase Funnel Intent, company can manage its purchasing intent.
The main brand valuation approaches
Market based- this refers to an approach which investigates the values of brand on the
basis of transaction values of assets of company. Their valuation is costly based to the
transaction of third party. Therefore it is characterise by high objectives and particularly when a
case of intellectual property right is there. The similar transaction with the similar awareness,
strength or economic along with legal situation will do not exist and their adoption becomes
difficult. In this it includes various other methods and that are discussed below:
P/E ratio method: In this entities of company will able to analyse the loss and profit
situation by which it become easy for them to assess the brand values as brand valuation method
multiples the brand profit by a multiples derived from similar transactions of profit to price paid
according to value of reported brand.
Turn over ratio: In this approach the entities of company multiplies the turnover of brand
with multiple derivatives from the similar transactions.
Cost based brand valuation methods: In this methods the value of brand is valued by
aggregation of all historic coasts that is incurred or replacement coasts and required I order to
being the brand to their current position. It refer to sum of all cost such as development coasts,
marketing costs, advertising cost, other communication cost and many more other costs.
Sometimes this approach might got fail as in this there is no direct correlation between financial
investment made and the valued addition in brand.
Creation cost method: This method of brand valuation measures the amount that has been
invested in developing brand.
Replacement value method: In this approach the entities of company estimates the
investment required to build a brand with the similar market position along with shares.
Income based brand valuation methods- This is considered as the most commonly used
approach in order to measures the value of brand. This method mainly focuses on present value
of the economic benefits that brand could developed in future. This methods generally evaluates
the profit margin of future that is actually utilizing the brand name but it is accompanied by the
uncertainties of future forecasts.

Relief from loyalty method: Such type of brand valuation methods relies on how much the
brand owner would have to pay in order to utilise their brand. If it is licensed the brand from
third party then use discount cash flow analysis( DCF) for capitalising the future branded cash
flow.
Excess earning method: This brand valuation method calculate the earnings over profit
that is required to influence an investors that uses the estimated rates of return based on current
values of assets employees. These large amount will be considered to be attributable to
intellectual property or brand.
Price premium method: This method is based on capitalisation of future profit stream
premium attributes for a business brand over the revenue of generic business instead of brand.
Capitalisation of historic profits methods: Such type of brand valuation method focus on
capitalisation of profit that is earned by the brand.
Research based approach: There are several research based approach in order to
measure the value of brand. In which the most commonly used is consumer behaviour and their
attributes that have an impact on economic performance of brand value. All of them seeks to
explain, interpret and measures the consumers perceptions that changes their purchasing
behaviour. They includes a large range of measurement tools like level of awareness, knowledge,
familiarity, relevance, specific image, purchase consideration, references, satisfactions as well as
recommendation. All these are assigned several brand equity scores as the sum of these points
are assigned to different attributes provides the overall brand score. A changes in one or
combination represents expected to influence consumers purchasing behaviour and that will
affects the financial values of brand in question.
Inter brand brand approach

Inter brand approach and Millward brown brand evaluations:

CONCLUSION
From above discussed report it has been analyse that there are several function that is
carried out by the organisation in order to mange the image or brand value of product. In which it
includes various action related to function that are used by company with the aim of conducting
an appropriate structure for the accomplishment of organisational goal. It is also found that
using successful brand strategies is an essential part for the Samsung firm at current period of
competitive edge in order to attain the objective of company. For this the senior authorities of
company uses various tools and techniques to measure and manage the brand values so that it
will become easy for them to achieve predetermined goal within stipulated time.

REFERENCE
Books & Journal
Abrahams, D., 2016. Brand risk: adding risk literacy to brand management. CRC Press.
Baumgarth, C., 2018. Brand management and the world of the arts: collaboration, co-operation,
co-creation, and inspiration. Journal of Product & Brand Management.
Beverland, M., 2018. Brand management: Co-creating meaningful brands. Sage.
Chen, C. and Luo, R., 2019. Executive marketing background, corporate trademark and brand
management. Journal of Contemporary Marketing Science.
Chernev, A., 2020. Strategic brand management. Cerebellum Press.
Couto, M. and Ferreira, J. J., 2017. Brand management as an internationalization strategy for
SME: A multiple case study. Journal of Global Marketing. 30(3). pp.192-206.
Greco, F. and Polli, A., 2020. Emotional Text Mining: Customer profiling in brand
management. International Journal of Information Management. 51. p.101934.
Iyer, P., Davari, A. and Paswan, A., 2018. Determinants of brand performance: the role of
internal branding. Journal of brand Management. 25(3). pp.202-216.
Lim, W. M., Jee, T. W. and De Run, E. C., 2020. Strategic brand management for higher
education institutions with graduate degree programs: empirical insights from the higher
education marketing mix. Journal of Strategic Marketing. 28(3). pp.225-245.
Melewar, T. C. and Skinner, H., 2018. Territorial brand management: Beer, authenticity, and
sense of place. Journal of Business Research.
Merrilees, B., 2016. Interactive brand experience pathways to customer-brand engagement and
value co-creation. Journal of Product & Brand Management.
Mills, A. J. and Robson, K., 2019. Brand management in the era of fake news: narrative
response as a strategy to insulate brand value. Journal of Product & Brand Management
Nguyen, B., Melewar, T. C. and Hemsley-Brown, J. eds., 2019. Strategic brand management in
higher education. Routledge.
Piehler, R., Schade, M. and Burmann, C., 2019. Employees as a second audience: the effect of
external communication on internal brand management outcomes. Journal of Brand
Management. 26(4). pp.445-460.
Popoli, P., 2017. Advancing Insights on Brand Management.
Powell, S.M., 2017. Journal of Brand Management: year end review 2017. Journal of Brand
Management. 24(6). pp.509-515.
Zumitzavan, V., 2020. Learning preferences and brand management in the Thai housing estate
industry. International Journal of Management and Enterprise Development. 19(1). pp.42-
57.