Building and Managing Brand Equity: A Case Study of Aldi Supermarket

Desklib provides past papers and solved assignments for students. This report analyzes Aldi's brand management strategies.

BRAND MANAGEMENT

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Activity 1.........................................................................................................................................2
P1 An explanation of the importance of branding as a marketing tool, why and how it has
emerged in business practice (M1)..............................................................................................2
P2 An analysis of the key components of a successful brand strategy for building and
managing brand equity (M2).......................................................................................................5
P3 an analysis of different strategies of portfolio management, brand hierarchy and brand
equity management (M3)............................................................................................................7
Activity 2.......................................................................................................................................10
P4 An evaluation of how brands are managed collaboratively and in partnership both at a
domestic and global level (M4).................................................................................................10
P5 An evaluation of different types of techniques for measuring and managing brand value
using specific organisational examples (M5)............................................................................12
Activity 3.......................................................................................................................................14
D1 critical evaluation that uses justified evidence to demonstrate a comprehensive
understanding of branding within the selected organisation.....................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

LIST OF FIGURES
Figure 1: Aldi leading brand of the UK...........................................................................................2
Figure 2: Brand Pyramid.................................................................................................................3
Figure 3: Keller's Brand equity Model............................................................................................5
Figure 4: Brand reinforcement.........................................................................................................6
Figure 5: House of brands related to Aldi.......................................................................................7

Introduction
The brand is mainly an identifying mark of any organization through which customers can
recognize them in the market among all other brands. On the other side, brand management is
one of the important responsibilities of the brand so that they can maintain their reputation in the
market. In this report, Beloved brands in London will hire Brand Management Analyst for brand
management of Aldi supermarket based in the UK. The report will cover various types of
strategies and methods through which Aldi can manage their brand name and equity in the
market. With the help of the below report, it will become easy for Aldi to manage their brand in
the market and increase customer base.
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Activity 1
P1 An explanation of the importance of branding as a marketing tool, why and how it has
emerged in business practice (M1)
In the current scenario, Beloved Brands hired Brand Management Analyst for managing the
brand of Aldi by forming the attractive brochure through which they can attract customers. In
this task, some ways are suggested to improve the marketing strategy within Aldi and focus on
satisfying the needs of their customers. The marketing unit role is important to improve the
position of Aldi brand in the market.
Overview of the brand and brand equity
The branding is the most important tool which offers unique slogan, design and tag line to
services of the organization through which they can attract customers towards their product and
services. They also improve services so that they can influence the choices of their customers.
On the other side, the brand equity is the negative or positive customer’s perception which may
affect the customer’s choices for buying that product next time, and that may also influence
organization decision for expanding their business in future (Keller, 2016). So it is essential for
Aldi to focus on their brand marketing through which they can spread the awareness of their
product and its innovation.
Figure 1: Aldi leading brand of the UK
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(Source: https://www.chambanamoms.com, 2019)
The development of the brand by using brand pyramid in the brand development
The Aldi is the retail sector industry which provides supermarket services to their customers by
offering various grocery items to them like- Frozen pizza, Honey, Sea salt & vinegar, Wine,
Furnace filters and tasty snack. The service quality needs to be improved by them so that some
positive influence on the customers can be created (Sasmita and Mohd Suki, 2015). This is also
important for Aldi to improve and strengthen their brand reputation by spreading awareness of
their products and services. The Aldi’s marketing department is responsible for implementing the
effective steps which support their offering of facilities. Following is the brand pyramid:
Figure 2: Brand Pyramid
(Source: https://knowledge.insead.edu, 2019)
Brand attributes and features: The services and products provided by Aldi cover all type of
grocery items that require in daily routine life of customers. This may deal with some
international brands so that various types of services can be provided to their customers. Aldi
Talk, Aldi Liquor and Diskont are the three brands covered under Aldi brand which attracts the
customers.
Functional benefits: The quality of products and services need to be optimised by the marketing
team of Aldi so that they can save the time, cost and efforts of their team. The service quality
will help the organisation to reduce the chances of compromise at their products and services
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cost. These benefits are mainly tangible which are provided by Aldi to their customers (Oliva,
2018).
Emotional benefit: These types of benefits cover some intangible benefits like- customer
satisfaction level, loyalty, trust and faith of customers on their industry. The Aldi manager needs
to conduct operation regularly so that they can collect some quality of feedbacks from their
customers according to customer expectation.
Core values: These types of the value of Aldi may depict their work quality along with its
environment. The Aldi mainly follow these types of strategies- teamwork, integrity and
leadership to improve their customer services (Saran, 2016).
Brand idea: the Brand idea is the last stage and that provide optimum customer satisfaction level
at affordable prices. Some variety of products and services can be offered at different rates which
develop the proper brand idea.
Marketing department role while creating brand equity
In the organisation, brand equity is the most important asset which improves the brand value of
Aldi in this competitive market. The Aldi need to resort their tactical planning and strategy
related to product marketing and spread the awareness of their product and services uniqueness
by using the attractive promotional and advertisement strategies. The Aldi marketing team needs
to apply some plans related to the product pricing and its distribution channels in the market
(Feng et al., 2015).
The marketing team of Aldi play an important role in brand equity development, and that can be
observed by the strategic process of decision making that is related to creating brand awareness
for influence products demand. The marketing team is also responsible for developing customer
loyalty by providing quality services and product. The marketing team also focus on product
innovation along with a pricing strategy which can be easily afforded by their customers.
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P2 An analysis of the key components of a successful brand strategy for building and managing
brand equity (M2)
Various strategies can be used to strengthen the brand equity so that brand can be developed with
the increased product demand: Keller’s model or theory used for brand equity and that support to
manage the Aldi brand equity. The Aldi manager needs to organise and conduct market research
for identifying their customer's demand and expectations.
With the below figure of Keller’s model, it states that Aldi needs to communicate information
about their performance in public by using some attractive images and videos so that public get
understand efforts putting by the team of Aldi (Keller, 2016). The Aldi also resort the
communication channels and also regularly research to bring some innovation in their product
and services. This Keller’s model mainly focuses on building the proper relationship between
Aldi and its customers by using attractive communication channels.
Figure 3: Keller's Brand Equity Model
(Source: Sara Chisholm, 2016)
Some strategies for the brand extension, revitalizing and reinforcing brands
Brand extension: The brand extension in the case of Aldi is considered as the product and
services diversify strategy which is done under the same brand through which customer base can
be increased by investing on brand name development. It is important for parent brand to launch
some new products with the name of the brand only and this method improve customer base
along with product range in the market (Ferguson et al., 2016). For instance, Aldi can provide
online delivery of their brands to their customers at an international level.
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Brand revitalisation: This strategy is conducted only for the product which generated high
revenue but currently failed to generate a high profit, so the strategy is used to improve the
performance of that product. Brand revitalisation step is taken to bring that product requirement
and importance in the market by changing the product packet design, tagline etc. They can also
add new innovative idea in that product to bring the improved sale of that product (Maehle and
Supphellen, 2015). After implementing the reinforcement strategy, it is important to focus on the
revitalising products because of external factor impact like- technology and competition.
Brand reinforcement: This step is mainly taken to allow the Aldi for bringing the uniqueness
and innovation in their products through which customer base can be improved. The Aldi needs
to create some innovation in their current product according to the new development and trends
in the market so that customers will get attracted towards their products. The brand
reinforcement can be implemented by using the advertisement methods like- event sponsorship
or campaigns.
Figure 4: Brand reinforcement
(Source: https://businessjargons.com/brand-reinforcement.html, 2019)
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P3 an analysis of different strategies of portfolio management, brand hierarchy and brand equity
management (M3)
The retail sector organisations the main objective is to meet their customers’ expectations by
providing quality and variety of products and services to them by implementing proper
management. The various brands under Aldi can improve their reputation in the market by using
effective management strategies.
Strategy for brand portfolio management
Branded House: Branded house strategy related to management of brand portfolio defined that
in this only one brand is renowned but provides various types of products and services in the
market. For example, Aldi is one brand, but they provide a variety of products like- Frozen pizza,
Honey, Sea salt & vinegar, Wine, Furnace filters and tasty snack which operates in this brand
only (Shah, 2015).
House of brands: The Aldi organization can develop a new brand for developing their subset
brand which can be handled and controlled by the parent brand only. The Aldi organization focus
on increasing their customer base for various locations and for this they need to launch some
subset brands. Aldi is the parent brand, but there are three subset brands of Aldi such as- Aldi
Talk, Aldi Liquor and Diskont.
Figure 5: House of brands related to Aldi
(Source: ANDY KRYZA, 2018)
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Strategy for brand hierarchy management
The brand hierarchy management can be done by developing the brand image and communicate
the changes with their members. The effective hierarchy management can be done by
differentiating their products and services with their competitive brands through which they can
increase their sales. Following are the branding levels covered under hierarchy management:
Endorsed branding strategy: Endorsed branding strategy cover establishment of the subset
brands which are not separated from parent brand and have their own individual existence. This
strategy will add the credibility to the Aldi. Endorsed branding method of the brand architecture
is quite costly because needed investment in brand name development and its promotion through
advertisements (Elliott et al, 2015).
Umbrella branding: Aldi deals in various types of products which are related to the grocery
items and that are sold by the single name of the brand. Umbrella branding strategy mainly refers
to the selling of various products under the parent brand name for developing a strong
relationship with stakeholder’s like- employees, customers and suppliers. This strategy will also
put a positive impact on the brand equity of Aldi.
Product branding: Product branding is quite similar to the endorsed branding in which subset
brands are operated individually and do not have any interference of parent brand. The Aldi have
three sub-brands that also provide a different segment of products in the market such as- Aldi
Talk, Diskont and Aldi Liquor (Brexendorf and Keller, 2017).
Strategy for brand equity management
Brand equity is mainly used in Aldi to differentiate their products from their competitors. Brand
equity mainly assists the spreading of brand awareness in the market and also tries to gain their
customer's loyalty. The Aldi supermarket organization focus on getting their customers loyalty
through monitoring and controlling all the activities related to payment and purchasing so that
feedbacks of customers can be taken to make some changes (Keller, 2016).
Brand association strategy can be used to manage the brand equity of Aldi in which customer
expectations and feelings about their brand are analyzed so that further improvement can be done
for Aldi growth. The Aldi organization needs to use product innovation and creative strategy to
manage their brand equity so that customer’s views on Aldi products can be changed. The team
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of Aldi also need to conduct market research on regular to understand the requirement of
customers and trends followed by them.
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