Brand Management Report: Analyzing Audi and Hyundai's Strategies

This report provides a comprehensive analysis of brand management, focusing on the automotive industry with Audi and Hyundai as case studies. It begins by defining brand management and its significance as a marketing tool, differentiating between brands and products, and emphasizing the importance of branding in building customer loyalty, generating sales, and securing premium pricing. The report then explores brand equity, its sources, and the key elements of a strong brand. It delves into how brands are developed and managed over time, discussing brand reinforcement and revitalization strategies, along with the main challenges in brand development. The CBBE model (Brand Resonance Pyramid) is used to illustrate the phases of brand development. Finally, the report examines different strategies of portfolio management, brand hierarchy, and equity management, providing a holistic view of brand management practices.

BRAND
MANAGEMENT

INTRODUCTION
Brand-management is characterized as a process where analysis is done about how
brand is perceived in the market. One of the main factor that is considered while managing brand
is to develop relationship with customers in an effective manner. Various tangible as well as
intangible objects are being covered in this so that this process is done in an effective manner.
The factors that are included in tangible elements are appearance, packaging and price whereas
in tangible factor customer's experience is counted(Kapferer, 2017). If companies will be able to
manage their brand effectively in the market then it will hep the in gaining large amount of
market share which will help them in increasing the profits of the company as well. In this,
various types of tools and techniques are being used by the marketing managers so as to place
the product of company in the minds of the customer. The organisations which is referred here is
Audi and Hyundai. These companies are very famous in automotive sector and is having a good
brand image as well. This report will discuss about various elements that are required to prepare
a successful brand along with schemes of managing portfolio. It will also discuss about
techniques that are used by companies for popularising themselves in the market.
SECTION 1
P1. Significance of branding as a marketing tool and the way it emerged in
a business practice
BRAND :
Explanation of brand- Brand can be stated as a concept or a figure which is
being provided to the certain products and services so that identification
can be created. This can be in the form of design, symbol, features, term
and many more. The main motive behind this kind of concept is to given
unique place within market (Allman and et. al., 2016).
Number of customers are being attracted if the image of the brand is
effective and appealing. There are some certain strategies which are being
formulated and being used by the company in order to enhance the sales
along with maximum satisfaction of customers.
Two companies like Audi and Hyundai mainly deals in automotive
sectors since many years. Audi which is the part of Volkswagen company is
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highly famous across the world. At initial stages Audi gained the market
share and made its own image through quality goods and services.
Differentiate between brand and product/logo :
Brand Product
 This is something which is being
utilised to differentiate one product
from another.
 Due to possession of unique features, it
becomes difficult to copy them.
 This is creation of customers
 Two types which are Tangible and
Intangible form.
 This can be stated as which is already
present within the market for selling up
the purpose.
 This is highly copied.
 Creation of Manufactures.
 Intangible asset.
Importance of branding : It is highly essential for every kind of company to have the products
branding in order to avail the benefits. They are like:
 There is perception of customers that new products which are being launched within the
same brand like if Audi who are coming with the new series of car and they do not need
any kind of advertisement.
 This will provide assistance in building up the loyalty among the customers and will
create long term relations (Annie Jin, 2012).
 Helps in creating up of image of the products within the market.
ROLE OF BRANDING AS A MARKETING TOOL
 Build consumer loyalty: If the institution has effective and appealing brand image, it
will create loyal customers and thus will improve profit ratios.
 Generate sales/profit : With the help of branding within the companies for gaining more
market share for selling out goods and services. This in turn will help in creating moreb
amount of profits.
 Secure premium pricing : The products which are being sold along with branding
comes along with high level of prices. This is done due to high quality products and cost
of the brand value.
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 Build awareness : Creating awareness among the customers by the help of branding
regarding the goods and services which are being provided. This is being executed by the
marketing team of the company. This is all done to enhance the services for making the
products sell.
BRAND EQUITY: This can be stated as entire worth of the brand as a abstracted assets. This is
being traced from the fidelity of customers, large recognisance along with the market share of the
brand (Balmer, Liao and Wang, 2010). From the point of view of marketers, it can b stated as
one of the essential elements which highly aid in accelerative the worth of the company within
the market. There are number of factors which are being utilised for evaluation of brand equity
like Acknowledgement of logo by the consumers, changing market share, margin of profits of
the company and many more.
SOURCES OF BRAND EQUITY : Brand Consciousness: This is being done as the initial step for structuring up the equity
process. By this, consumers are being made alert about the products which is highly exist
in the market. Brand Associations: This is something which the consumers think and thus associate it
with the brand. This may be in the form of voice, language, experience and many more.
 Perceived Quality: As compared to the competitor's goods and services, if the quality is
high in nature, then it will help in gaining much more market.
ELEMENTS OF A STRONG BRAND : DESIGN AND BUILD: The designing of the company logo is to provide assistance to the
customers for recalling the brand and if the positive image is being established then more
amount of customers can be added (Baumgarth, 2010). LOGO: This can be stated as effective symbol of determination which is highly present in
every brand and through that they will be recognised within the marketplace. RECOGNISED: Brand image can be determined by its popularity among the customers
and marketplace along with the sales ratio.
 QUALITY: In order to raise the goodwill bar, high quality products and services should
be provided to the customers in order to give out the maximum satisfaction.
P2 Key components of successful brand strategy
HOW ARE BRANDS DEVELOPED AND MANAGE OVER TIME:
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This can be stated as one of the issues which are being faced by the managers of Audi
and Hyundai in order to keep up the brand image according to the current trends which are
taking place within the market. There is high need of conduction of research so that the actual
position and demand of the market (Bergkvist and Bech-Larsen, 2010). In the case of Audi, main
focus should be on adopting the latest technology by the managers so that customers can have
positive mindset for the company and that too for long period of time. Therefore, it is highly
essential for the companies to have the brand management over the time so that various kinds of
marketing programmes by which they can expand the brand knowledge for not getting confused
among the brands.
BRAND REINFORCEMENT: This may be called as unitary method of the process which is
being conducted by the companies who have utilised by the services for making customers come
and visit again. The main aim of the this kind of issues and they are:
 Purpose of Product, its core benefits which are being provided. Dealing with the issues for making the brand superior within the market and thus
devising it more strong and approving.
BRAND REINFORCEMENT STRATEGY: There are number of strategies which are being
utilised by the brand managers and they are described below:
 BRAND AWARENESS: In this type of factor, the main focus of the company is on
making customers get attract towards the product and services. This kind of strategy is
being utilised by the Audi and Hyundai which have the better and appealing market
quality so they do not have much need of creating the brand awareness as the customers
know about it already. BRAND IMAGE : This is a concept which is being created within the market along with
the mind set of customers (Braun, Kavaratzis and Zenker, 2013). This is being attained
by the company for giving out the services in order to generate the loyalty factors for the
company.
BRAND REVITALISATION STRATEGY :
There are number of factors which are being involved along with several strategies which
are being highly utilised by the company in order to revitalise the brand and they are described
below:
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 Becoming Customer centric– It is highly essential for the institutions to experience the
actual necessity of the consumers as they are the main reason due to which company
obtain growth and success (Burmann and König, 2011).
 Renaming the Brand- This one can be utilised by the company in order to revitalise
regarding the brand. By this company can have a new start.
 Amplifying the Brand Story- There is high need of connecting with the customers and
bringing innovation within the products and services in order to make the customer
connect with the brand.
Illustration 1: Brand Revitalisation Strategy
(Source: Brand Revitalization strategy,2018)
MAIN CHALLENGES DEVELOPING A BRAND: It is highly essential to conduct the process
of developing the brand but this process mainly involves time, high amount of fund and energy.
There are number of challenges which are being by the companies like Audi and Hyundai and
some of them are described below: EXPENSIVE- This is kind of costly process due to the process conduction along with the
activities and thus it is needed to have sufficient funds for making the investment. BARRIERS TO ENTRY- In this kind of challenge, sometimes there is situation where
the company is not being allowed to make business in another countries due to some of
the reasons which are being considered to enter into face any kind of situation (Freling
and Forbes, 2013).
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 WINNING CONSUMER LOYALTY– This is one of the most essential one and difficult
one as well. This is hard due to the many brands and its products and services which are
being provided by them within the marketplace (Gatti, Caruana and Snehota, 2012).
THE PHASE OF BRAND DEVELOPMENT
In order to approach the changes within the phases if brand development, Keller's brand equity is
being utilised.
 CBBE MODEL ( BRAND RESONANCE PYRAMID ): It is the most generally utilized
framework for Shopper based brand value. In this , Keller has pose the entire model in a
four level pyramid. The primary point behind making this model is to just form a solid
brand that depends on customers with the goal that they should a greater amount of that
item and furthermore acquaint it with their kindred individuals too. The means that are
engaged with this model are :
◦ Brand Identity - Brand managers of the company mainly uses market segmentation
and unique selling preposition tools in order to create the awareness regarding the
product and making it famous in market (Gyrd-Jones, Helm and Munk, 2013).
◦ Brand Meaning – The focus of the marketers is on determining and transmit what
the brand is in actual and what its importance.
◦ Brand Response – By this, merchandising team tries to know about the views and
what the customers feels regarding the brand.
◦ Brand Resonance – By this, company adopt various tools and techniques for making
the customers connect with customers for making the bond grow stronger.
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Illustration 2: Brand Resonance Pyramid
(Source: Brand Resonance Pyramid,2018)
SECTION 2
P3 Different strategies of portfolio management, brand hierarchy and equity management
PORTFOLIO SCHEMES:
This kind of concept can be stated as process in which every brand and brand lines are
being focused on conducting the dealings in order to attain the aims and goals of the institution.
In simple words, brand portfolio can be stated as document in which placing of all the products is
being done at single place (Huili and et. al., 2016). Portfolio can be made by the companies for
producing the various kinds of goods and services.
Designed is being made by the companies for brand portfolio strategy in order to make
the utilisation of various brands for obtaining the profit within the marketplace. By this,
institution tries to reply the following questions:
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 Can addition of new product is possible in Portfolio?
 Is there any need of prioritising the brand?
 Should company get rid of any of its brand?
By the help of these kind of strategies, whole brand structure is being developed by the
companies by utilisation of factors like sub brands, endorser brands, branded components.
PORTFOLIO MANAGEMENT STRATEGIES FOR AUDI & HYUNDAI: There are various
schemes which are being implemented by Audi and Hyundai for managing the portfolio:
 Active Portfolio Management strategy: This kind of scheme is being needed by the
companies and its managers who have the potential for taking the risks. In addition,
another essential element which is being needed to attain better and appropriate outcomes
within the market (Qian, 2014). Therefore, indication is being done by the portfolio
management strategy for conducting the deep research for having better outcomes and
maximum amount of funds and best suited frame.
 Passive Portfolio management strategy: Most of the companies uses this kind of
strategy as they are not ready for taking big risks within market but want to attain growth
and success. This is considered as one of the essential factor for the business for
implementing the appropriate elements for expected outcomes and returns.
BRAND ARCHITECTURE OF AUDI & HYUNDAI
Brand architecture means various types of brand in industry. There are various types of
brands hence company has its portfolio with consist of related or unrelated with each other.
Brand architecture can also be defined as building brands by creating connection between
different brand options (Smith, Smith and Wang, 2010). Brand portfolio brands are as under- House of brands- This is powerful brand model in portfolio. This will help in increasing
sales of organisation. In this brand are not related and there is no linkage between various
types of brands. Under this model there are various types of products and services under
same concept.
 Branded house- Under this model manger of company uses single name for all products
and services. This will help to focus on single brand and there is increase in sales.
Company Umbrella brand Products
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Hyundai Hyundai delivers good quality
cars in market under one
umbrella, this will help to
increase sales of organisation.
Top level management has to
keep factors in mind which
help to achieve their goals and
targets effectively with proper
satisfaction to consumer.
Audi Audi is a brand name and there
are different products of this
brand such as A4, A6,etc.
Products are the thing which
satisfaction the demand of
consumer. While brand is
associated with product which
helps to raise living of standard
of consumer.
P4 Management of brands in business organization both at National and International Level
To make their brand successful in market is the dream of all the companies and for this
they have they have to make sure that they are famous enough so that customers can reach them.
They are also required to ensure that their product is able to satisfy the needs and wants of the
customers because then only it will be able to modify its share in market. Same thing is required
to be done by Audi and Hyundai because if they will not know that what is the requirements of
the customers then they will not be able to produce products that will match with the needs of the
customers .
Brand extensions:
It is a very common method that has been used by many big companies for bringing trust
and loyalty from customers. This also gives an opportunity to the clients and customers to design
the products as per their needs and wants. In this process, companies mainly aims to add
something to their brand so that they can compete strongly in the industry (Iglesias, Singh and
Batista-Foguet, 2011).
Audi and Hyundai both are international brands and is also having a very strong market
image as well but if they will also not introduce any kind of changes in the product then they
might also loose their market share as there are so much of competition present in the market
(Keller, Parameswaran and Jacob, 2011). It is very important for them to know the modifications
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that a customer requires in his/her cars so that all these changes can be introduced. The extension
approaches can be described as :-
 LINE EXTENSION – In this type of extension, company is planning to enter a whole
new market segment where there will be new customer base which can be easily targeted
by the company. Through this companies can easily increase their market area which
will lead to increase in profits as well. Both Hyundai and Audi are having their
showrooms in various parts of the world so that they can target those areas now where
they are not available right now so that new customer base can be gained.
 CATAGORY AUGMENTATION – In this type of extension, companies are
increasing the categories of their brand so that they can produce the products as per the
needs and demands of the customers. In this, the marketing managers makes use of
parent brand so as to enter into a new market place along with the new products . This
opportunity can be utilised by Audi so as to increase market part.
Therefore these are the schemes that can be applied by Audi and Hyundai for increasing
their market share as well as revenue of the company. Through this they will also be able to
make effective brand image of company in market.
Difference in line extension and brand extension
Line Extension Brand Extension
In this expansion there is increase in variety of
same product.
Brand extension is launching new and
unrelated product by existing company.
This expansion is done to provide more
satisfaction to customer and this helps in
improving image of company in market.
Brand extension is done to improve and
increase sales of company.
This extension is done after analysing
customer need and there are profits out of it.
It is not necessary that consumer prefer to use
new product range of existing company.
E.g. Energy drink are available in different
flavours.
E.g. TATA company mainly deals in cars
segments, but there clothing segment is known
as brand extension.
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