Comprehensive Analysis of Brand Management for Audi and Hyundai

This report provides a comprehensive analysis of brand management strategies, focusing on the automotive industry with case studies of Audi and Hyundai. It delves into the significance of branding as a marketing tool, exploring how brands establish themselves and maintain a strong presence in the market. The report outlines key components of successful brand strategies, including brand reinforcement and revitalization, as well as portfolio management techniques. It further examines brand hierarchy and brand equity management, offering insights into how companies like Audi and Hyundai manage their brand value and navigate collaborations and partnerships at both global and domestic levels. Finally, the report discusses various techniques for managing and measuring brand value, offering a holistic view of brand management in the competitive automotive landscape. The report highlights the importance of creating a positive brand image, building customer loyalty, and adapting to dynamic market changes to sustain business growth and market share.

Brand Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
P1. Significance of branding as a marketing tool and the way it emerged in a company
practice...................................................................................................................................1
P2. Key components of a successful brand strategy...............................................................5
SECTION 2......................................................................................................................................9
P3. Different strategies of portfolio management, brand hierarchy and brand equity
management of Hyundai and Audi ........................................................................................9
P4. Management of collaboration and partnerships of brands at global and domestic levels11
P5. Different techniques for managing and measuring the brand value ..............................12
CONCLUSION..............................................................................................................................14
REFRENCES.................................................................................................................................15

INTRODUCTION
A brand can be defined as a term, design, symbol and logo which distinguishes the
product of company from other competitors in the eyes of customers. Basically, it is a way in
which company promotes their products so that customers will know the availability of
organisational products and services. Main objective behind it is to strengthen the position of
company in market and increase the goodwill and market share in external market. In most of the
cases, it has been seen that marketing team uses branding as a mechanism on the basis of which
promotion tools are utilized for enhancing the sales and profits of company. In this report, two
companies are preferred i.e. Audi and Hyundai one of the top most brand in auto-mobile sector
describes branding plays vital role in the growth and sustainability of business. Therefore
strategic management formulate strategies which provide edge over competitors (Kelley,
Sheehan and Jugenheimer, 2015). The report gives details about the importance of branding as
marketing tool, component of successful brand strategy, different strategies of portfolio
management and techniques used in adding brand value.
SECTION 1
P1. Significance of branding as a marketing tool and the way it emerged in a company practice
BRAND
In simple words, brand can be defined as power which makes the organisational products
unique in the eyes of customers or in other words, a symbol, logo, design and features which
distinguish the products and services of particular company from other rivalry. It is a good way
of making the products in standard quality which also helps in charging premium prices from
target audience (Spence and Hamzaoui Essoussi, 2010).
It is right to say that if a brand is having a positive image in the market then it is easy to
gather high customer base. Further, better positioning in market establishes trust and loyalty of
customers towards company’s products. Branding strategy used as a safeguard mechanism in
order to increase sales volume as well as for satisfying the needs and wants of customers.
In this context, it is good to say Audi and Hyundai are the top most auto-mobile
companies that create trust and loyalty as well as serving their customers since many years. Their
products are available at standard quality having the latest features that give utmost comforts to
their customers. This is the basic reason why people like these brands a lot. Audi has strategic

alliance with Volkswagen which is a famous brand in all over the world. Initially, Audi wants to
establish its position in market so they joined hand with Volkswagen company but later on due to
innovative techniques and unique designing of cars in market emerged company into new era
where this brand become the first priority of top class people (McDowell , 2011).
Differentiate brand from product/logo
Brand
 It helps in beating down a consumer
enemy by providing standard quality of
products.
 Consumer have emotional connection
with particular brand. For example: rich
class people always give Audi as first
priority.
 Brand is considered as life experienced
of individuals.
 In case of brand obsessive people it
become life's favourite ritual which
they want in order to gain joy and
happiness.
 Brands are legally protected because of
using unique logo and symbol which
cannot be used by any other company.
Product
 It is something which solves a
consumer’s problems by satisfying their
needs and wants.
 Under this, rational connection is
established. For example: people who
think rationally at the time of buying a
car which provides luxury comfort
along with affordable price choose
Hyundai cars which give varieties of
cars according to costumer demand.
 It is generally consumed by people
because of just satisfying their needs.
 Basic necessities which built into
routine.
 Easily copied design and always in
intangible form.
Importance of branding

It is very important for company to properly maintain the brand of company which can be
secured by registering trademarks for same so that no one can take unfair advantage of it. There
are numerous benefits that particular company gained from brands. They are stated as below:
 Company having brand value enjoyed the benefits of premium price charged from
customers. The main things under it that all the individuals happily pay the price of goods
because they are highly satisfied with quality.
 Once the brand liked by customers then they expect the same product quality from other
companies also which they not met within specified time which establishes loyalty and
trust factors towards that organisation.
 In dynamic external environment, changes are coming frequently because of the
development of innovative techniques in auto mobile sector. In Hyundai, the USP of
company is that management always come with some new innovation in particular car in
different series for example: Hyundai i20 come in distinct categories which liked by
customers every time.
 The customers will also prefer and believe the new products launched under the same
brand which they trust. For example: Audi comes with new series of cars that need not to
give advertisements because of huge popularity in all over the world (Perkowski and et.
al., 2010).
Building good impression
If brands wants to create good image and high market share in external market they are
required to manufacture goods and services according to customers demand. This process
continues till company sets permanent image in the minds of target audience. Systematic
adaptation of techniques and mechanism helps in making great icon in the minds of customers.
The long lasting impression not only helps in building brand equity but also enhances market
share successfully.
Purpose/Role of branding as a marketing tool Establish consumer loyalty: A good brand always come with variety of products which
enhance the market share as well as increase sale of products and services. The main
objective behind it is to create loyalty factor which leads to more profits.

 Generate sales/profits: It is common to say that branded products need not to spend
money on advertisement and publicity because of already popularity gained from target
audience. All such perceptions and thinking help in increasing the sales and profits of
organisation (Smith, Smith and Wang, 2010). Secure premium price: It has been generally seen that company is having good
reputation in the market charges premium price from customers. They are not needed to
put efforts in selling products. So, they believe in pull strategy in which customers are
already impressed with that brand because of standard quality of goods.
 Build awareness: Through marketing tactics, branded companies are able to create
awareness regarding their products. The whole marketing team is organising campaign,
roadshows and exhibitions where they provide information related to price, quality and
benefits of goods (Balmer, 2011).
Brand Equity
It means business value that is derived from customer perceptions of the brand name
related to particular products or services company provided. In other words, establishing loyalty
and trust factor in costumer minds which stop them to think about different company products.
Moreover it is possible because of large recognition, customer loyalty and market share of brand
in the external world.
From marketer’s point of view, it is the source of increasing financial performance of
company which also maintains balance sheet and solvency position I.e. ability to pay all
liabilities of company.
Source of brand equity: Different sources of brand equity are as follows: Brand Awareness- If any company is coming in new market in order to set a good
position, it is important for the marketing team to formulate plans and strategies from
which they can make the audience aware about availability of product. Different methods
used to create awareness are like roadshows, publicity and sponsorship (Balmer, 2012). Brand Associations- It is something with the help of which customers relate to its brand
which is in form of language, voice and experience.
 Perceived Quality: It is a way through which quality of branded products are compared
with competitor's goods which allow company to gain market share.

Elements of a strong brand Design and build: The design or logo of branded company help in recognising the image
in the minds of customers which makes that brand strong in market. Logo: It is the prime method of establishing a strong brand image under which logo of
company is enough in order to get the benefits of market opportunities. For example:
logo of Audi is enough in order to recognise the Audi products
 Quality: Another way of establishing strong image is maintaining quality standards
which are the common mechanism that satisfy customer for longer period.
P2. Key components of a successful brand strategy
How are brands developed and manage over time
In dynamic external environment, competitors are increasing day by day in auto-mobile
sector which creates a negative impact on large scale companies. One of the major issues faced
by Audi and Hyundai or any other company need to update their brand up-to date and as per
current trends that are going on in the market. For this, managers of department need to research
about market trends or in other word detail regarding what going in market. Team has to closely
watch regarding competitor’s strategies or what news they are coming in market. In case of
Audi, managers spend a lot on research development process where they designed innovative
series of cars which was never seen before. The main motive behind it is to maintain dominant
position in market. So, in order to managing brand companies strategic level has to develop and
implement various types of marketing programmes which make possible for branded company to
face challenges in an effective manner (Braun, Kavaratzis and Zenker, 2013).
Brand reinforcement
It can be defined as a process in which all the activities associated with getting those
consumers who have tried a particular brand in order to attract new users along with existing
purchasers.. The main objective behind it is to strengthen product life cycle of company. Its main
aim is to deal with two kinds of issues which are:
 What the product is actually representing and what are the core benefits of the products
they are supplying?
 Other issue related to the question that how to make the brand superior in the market and
make it according to consumer demand.

 The last issue related to how to make innovative goods and services that provide
competitive edge over competitors.
Brand reinforcement strategy
There are various types of strategies that are used by the brand managers so as to
reinforce the brand in market are: Brand awareness: In this, company is trying to make consumers aware about the kinds
of products they are offering to brands. This is the strategy which is used to create special
place in the minds of target audience. In context of Audi and Hyundai which enjoy high
market share and already have good brand image need not focus on brand awareness in
the eye of consumers (Gatti, Caruana and Snehota, 2012).
 Brand image: It means creating specific position in the minds of customers regarding
their products. This is achieved by organisation by giving effective services continuously
to the customers that helps in generating trust and belief for company.
Brand revitalisation strategy
It has been seen that brand that has good market position is suddenly performing bad in
market. All this done with the objectives of removing the image of product from the mind of
costumers. The factors which are changing like logo, symbol, packaging, slogan and jingles. The
various strategies that are used by companies in order to revitalise their brand are: Become customer centric: It is very important for company to manufacture their
products according to the wants of customers. All this helps in enhancing the growth and
make it successful in market.
 Renaming the brand: It is one of the common strategies for revitalising the brand.

 Amplifying the brand story: To make the brand successful, it is important for company
to do something new that attracts customers and increase sales.
Figure: Brand revitalisation strategy Source: [revitalizing the brand2018]
Main challenges developing a brand
Developing brand value is an important factor that helps in generating a lot of money,
time and energy. In case if Audi and Hyundai try to develop their brand in market then types of
challenges faced by company are: Expensive: In order to generate the brand value, it is mandatory for company to spend a
large amount of funds in order to establish reputed position but company must ensure that
investment are done according to the budget of company.

 Barrier to entry: It is also seen that companies are not allowed to do their business in a
particular country due to many reasons. Therefore, it is important to make stable plans so
that they can face challenges easily.
The stages of brand development
Following are the stages for brand development, which is given by Keller's brand equity model is
stated below:
CBBE model: It is the most common model for consumer based brand equity. Here
Keller has put whole level in four pyramid. The main objectives behind it to build strong brand
image that is based on consumers which increase the sale of their products. The steps involved in
this model are: Brand Identity: In this, the brand managers of companies use market partition and USP
tools in order to aware the customers about the products and also identify in market. Brand Meaning: Main aim of brand manager is to identify and communicate the identity
of product means and what it stands for. Brand Response: This is a feedback process in which marketer wants to know the
response of customers towards brand.
 Brand Resonance: - It is a way of establishing good relations with customers through
their brand by providing quality products.

Figure: Brand pyramid Figure:[Brand Resonance2018]
SECTION 2
P3. Different strategies of portfolio management, brand hierarchy and brand equity management
of Hyundai and Audi
A brand portfolio of a company is consist of the various products that the company
produces. If all the products that a company is offering in the market are written down on a piece
of paper such document will be called product portfolio of the company. The prerequisite to have
a portfolio of products is that the company should be making different kinds of products
operating in different segments of the market (Hanna and Rowley, 2011). Portfolio management
is necessary for companies because it allows them to scrutinize each and every product and it is
easy to make necessary changes within product features and specifications if the data regarding
product demand are available. The benefits of a portfolio management are:
 Maximizes the return on Product R&D investments
 Efficient and effective allocation of the scarce resources of the company
 Communication priorities.
 Helps in achieving focus.
The various strategies that are applied by Hyundai and Audi to manage their product
portfolio are as follows: Active portfolio management strategy: This is an aggressive way of venturing into the
market. The company analyses its product portfolio and decisions are taken with regards
to investing or divesting in various products, it also involves divesting from those
markets which are not turning profitable for the company. Under active portfolio
management theory the company will have a close eye on the product portfolio of
company and are actively managed extensive research is made to improvise in current
product lines and get effective and efficient results.
 Passive portfolio management theory: In this theory, a constant growth and not rapid
growth are looked into by company. This theory are used by companies who are not
willing to take much risk and do not want to adventure in the market. Under this theory
the company tries to get returns according to the growth in the market instead of

outperforming it. This kind of strategy keeps the company on safe side as risk taken is
minimum and company tries to leverage on market growth.
Brand architecture of Audi and Hyundai
A brand architecture is a structure of various brands within a company. It is a way of
analysing the relation of various brands with each other to determine how much they are similar
or different from each other. The different models of Brand portfolio are: Branded House: In this Strategy the company uses a primary brand and all other
products of the company are sold under the name of that primary brand. Hyundai is a
well-known brand in automotive market. It sells its various products only in the name of
the company itself. Audi is also a good example of Branded house as it carries an
umbrella brand which contains lot of products in it. It takes a considerable time for
companies to become a branded house and such position is achieved after extensive
spending on marketing, advertising and promotions for years (Hatch and Schultz, 2010).
 House of Brands: in this, various brands of a company have their own existence in the
market and have a separate identity from its company. It is one of the most powerful
model of brand portfolio.
Both the companies come under House of brands category as they have different products
which are being sold in the market with their separate existence:
Basis Primary Brand Products
AUDI The primary brand name used
by organisation is 'Audi'. It is
an umbrella brand under which
company sells its different
products.
The various products the
company offers under its brand
name are A3,A4,A6,A7 in
sedan segment and Q5,Q7 etc.
in SUV'S and Crossover
segment.
Hyundai 'Hyundai' is the primary brand
under which the company sells
its various products. It is a
well-known brand in
affordable auto mobile
Various products offered by
the company under the brand
name Hyundai are i10, i20,
Eon in Hatchback segment and
xcent, Camrey in sedan

segment. segment along with Creta in
SUV segment.
P4. Management of collaboration and partnerships of brands at global and domestic levels
Every company wants to expand its brand reputation and recognition globally. For this
the company follows various strategies to attract customers and attain a higher growth in the
concerned market. The effectiveness of a brand increases only if more and more customers will
know about it. There are various strategies which can be followed by companies to expand the
reach of their brand and it will help in creating an image of the product and company on a global
level. Penetration in new domestic markets: in this strategy company tries to penetrate into
new domestic markets through extensive marketing and advertising of its products to gain
customer attention. New audience are targeted for products and their needs and wants are
taken care of. Export of Product: Products can be exported into various other countries, this also leads
to brand expansion as people will come to know about the brand this will result in higher
brand value for the company. Major multinational companies first try to capture the
market by exporting their products to different countries, after exporting products for a
particular time, the company analyses which country has strong demand for its products.
The company may think of installing a plant in that country itself to full fill the excess
demand available.
 Demographic Expansion: Company should look for demographic extension for
expansion of the brand. It basically means the company should continuously analyse its
external environment to check the tastes, preferences, age, sex, of the market and among
which are the product is more popular and whether products are more popular in males or
females etc. and how company can come up with extra features in its products for more
popularity and recognition of the brand.
Approaches of Brand expansion

 Line Extension: In this approach when a company launches a new product which is
targeted for a new market segment usually it is promoted under the parent brand. It
increases the varieties of the products which are being offered by the company.
 Category Extension: In this, firm enters into a completely unrelated market segment with
the same brand name. The company tries to leverage on the brand equity and success of
existing brands to introduce new products in the market (Helm and Jones, 2010). By this
way company can enter into new segment without having to spend much on the branding
of its new products. The company reaps the fruits of having a well reputed brand and
recognition in the marketplace. Audi has a reputed brand name in the market it now has
the advantage to enter into a new market which can lead to a better market share and
results.
These two strategies can be considered by Audi and Hyundai to strengthen its position in
the market place and it will result in maximization of revenue for both the firms. Audi has a
completely different brand image it is seen in the market as a luxurious brands catering to
customers having expectations of high and luxury lifestyle. It is also known for its state of the art
technological features and design techniques. Hyundai, on the other hand is a company which
caters to middle class and it manufactures cars which are easily affordable to them. Hyundai
should enter into luxury car segment as well in order to capitalize on the brand name that it is
carrying. The company should also focus in venturing into sports cars market. So in order to get
maximum possible benefit of the brand image that both companies are carrying they should
come together and join hands to become a leading car manufacturer which will manufacture cars
of best quality at least possible cost for customers (Iglesias, Singh and Batista-Foguet , 2011).
P5. Different techniques for managing and measuring the brand value
In today's era the brand value of various companies are increasing. It is showing growth
because of higher demand in the market for the products and services. But due to increase in
brand value and reputation of companies there is a need for measurement of such brand value in
order to reflect the correct value of company in financial statements and also to manage them in
a way so as to increase the growth and profitability of company for a longer period of time. The
competition is quite high in auto mobile sector because of various multinational giants already
exists in market these are Toyota, Honda and BMW, etc.

Methods of measuring brand value of company
Cost based Brand valuation:
In this method the brand is valued using the sum of all the costs that the company has
incurred for building a brand and its reputation in the market. The elements of such costs are
advertising, promotional expenditures, the cost of campaign, registration and license costs. The
only drawback of this method is it does not reflect the current market price of the brand value
instead it is based on collection and adding of all the historical cost that has occurred.
Market based brand valuation:
This method concerns with valuing similar brands existing in the market to arrive at the
valuation of own brand value. Transactions in the market are analysed like specific sale of a
brand, comparable company transactions, Quotations of stock market for measuring brand value.
Income approach brand valuation:
In this method the valuation of the brand value is arrived at by estimating the future net
earnings that can be directly attributable to the brand. Brand Equity no doubt can be considered
as an asset in the business world which provides a competitive edge to the company against other
brands and competitors.
Managing Brand Value of the company
Brand value can be built by creating an image of the brand among consumers that only a
particular brand can satisfy their needs and demands because of the quality that the product
offers to customers. A relationship should be formed with the consumer for developing and
enhancing the existing brand image. It can be done with various methods like line extension and
category extension, etc. Customer Loyalty has been a key aspect in Brand valuation management
a company can follow a more liberal pricing policy for its products if it believes that consumer
would not go anywhere leaving the brand if there will be even a slight increase in the prices.
Brands means Product quality and reliability. It is not necessary that only reputed and well-
established companies enjoy brand values even new start-ups with extensive marketing can gain
ground very rapidly (Keller, Parameswaran and Jacob, 2011).
Different approaches of Brand Management Financial Approach: In this approach the main of company is to continuously innovate
and change current products and services in the market so as to sustain in the market for a

longer period of time and grow. Company usually follows this approach because this
method forces companies not to remain dependent on customer loyalty towards the brand
or product and continuously bring products with new features and services.
 Customer Based Approach: In this kind of approach the management shows faith on its
customers and keep a view point that their loyal customers won’t go anywhere despite
following any pricing strategy.
In this case, Audi follows customer based approach as it has faith on its consumers that
they will prefer to purchase their cars despite stiff competition from other auto manufacturers in
the same segment. Hyundai, on the other hand follows the concept of financial approach where it
aims at improving its existing products and brands regularly so as to remain competitive and try
to be a market leader. In a nutshell, if companies wants to measure and manage its brand value
there are various methods and techniques are available for the same. Brand valuation and
management is going to be a very crucial topic for all the firms going forward be it well
established firms or new start-ups (Keller, Parameswaran and Jacob, 2011).
CONCLUSION
It can be concluded from whole project that branding helps in creating a positive image
of products in the mind of customers. Organisation uses various marketing techniques in order to
create awareness regarding products in the minds of target audience. Different elements of brand
strategy are used in order to maintain the brand equity of respective product such as social
networking, public relations and publicity which are common mechanism for sustaining in the
competitive market. In context of Audi and Hyundai which is top most brand in auto-mobile
sector are already establish brand image in the mind of customers because of providing standard
quality of products and services which leads to high market share and growth of company.

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Online
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