Brand Management Strategies and Brand Equity Analysis: Hyundai & Honda

This report delves into the realm of brand management, analyzing the strategies employed by Hyundai and Honda, two prominent automotive industry players. The report begins by emphasizing the importance of branding as a critical marketing tool, highlighting key components of successful brand equity strategies, such as brand recognition, customer loyalty, and the establishment of clear expectations. It then proceeds to explore different portfolio management strategies, brand hierarchy, and equity management models, including the Consumer-Based Brand Equity (CBBE) model. Furthermore, the report examines how brands are collaboratively managed at both domestic and global levels, along with various techniques for measuring and managing brand value. The analysis encompasses crucial aspects like differentiation, knowledge, relevance, and emotional capital, alongside the significance of effective communication channels. The report concludes by synthesizing these elements to provide a comprehensive understanding of how Hyundai and Honda build and sustain their brand equity in the competitive automotive market.

BRAND
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
P1 Importance of branding as a marketing tool..........................................................................1
P2 Key components of a successful strategy for building brand equity.....................................3
SECTION 2......................................................................................................................................5
P 3. Different strategies of portfolio management, brand hierarchy and equity management ...5
P4 How brands are managed collaboratively and in partnership both at a domestic & global
level.............................................................................................................................................7
P5 Different sort of techniques for measuring and managing brand value.................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Brand management is an activity that is done to analyse way in which a brand is to be
perceived in customer's mind. It is compulsory to have a strong bond with consumers that will
enhance business growth and success. Brand includes various aspects like looks, price,
packaging etc. and it is an essential task that a manager has to do that are assigned to a brand.
Hyundai and Honda both are multinational corporations that is working in an auto-mobile
industry. These organizations are having a prominent market share in UK. In this assignment
several branding strategies are recognized that is to be managed in marketplace (Rosenbaum-
Elliott, Percy and Pervan, 2015).
SECTION 1
P1 Importance of branding as a marketing tool
Nowadays branding is a important tool that helps managers to create their product as a
prominent brand in market that stands them apart from their rivals. Branding started in the era of
“Mad Man” in 1960. that was time when consumer started to distinguish between average and
supreme quality. In earlier times company produced a single product with good quality but after
sometime they felt that it is not enough for growth of their business and they come up with
modern era of marketing (Vigneron and Johnson, 2017).
In recent times branding is an important technique to enhance image of a product. There
are different marketing tool that is necessary for branding are stated below:
Recognition as a brand: When a firm pays attention on that how there product must be
recognised by their buyers, it takes so many actions like n of logo that is like window of product
that comes in eyes of consumer easily. That creates face of product. This tool is used to enhance
recognition of an item. This done to ensure growth of company in industry. Hyundai always try
to formulate best strategies that is helpful in brand creation.
Brand generates new customers: Hyundai is serving their clients with those cars that
actually fulfils desire of their consumers. They are also launched new and improved vehicles that
are very competent in current market. They are very efficient in capturing larger market along
with attracting new customers.
Brand provides a stable asset: If Hyundai faces any problem related to sale but on the
other hand they are having a strong brand image and this will generates a positive return to
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company. Hyundai established their operations in 1967. and till now they have made a lot of
variations in their products and services according to changing scenario. It is a most trustworthy
brand in market (Kelley, Sheehan and Jugenheimer, 2015).
Brands set expectation: Desires of consumers depends upon image of a product. If
brand image is strong then expectations are higher and if company has low face then consumers
have limited desire from that firm. This expectation reveals how strongly corporation is working
in industry.
Other than this there are wide number of clients of association who sell same products
that create confusion among customers that which firm's product to but or which is not to
purchase.
There are various advantages that is beneficial for organisation. Customer as well as
suppliers. These advantages are stated as beneath:
Benefits Organization Customer Supplier
Recognition & Loyalty With help of branding
customer recognises
companies and makes
purchases from that.
It is helpful in
identifying those firms
that are providing
quality services and
products.
Supplier play a vital
role in brand creation.
Image of Size By assistance of this
corporation can make
aware their clients
they are operating
large scale services in
good manner.
When customer takes
products as a status
symbol this is very
useful in telling them
which enterprise can
fulfil their want.
It is very useful for
suppliers in making
aware them that which
company can provide
them best outcome
opportunities.
Image of Quality With assistance of
branding organization
make aware there
future and current
clients that they
producing high quality
Consumers can
recognise which
association is best for
them in serving good
quality services.
Supplier work for
those firms that are
providing quality
services because this
make company &
supplier relationship
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goods & services. strong.
Image of Experience
& Reliability
Customer feels that if
brand is strong then
company is serving in
high quality manner
and clients experience
will be good. This will
ensure growth.
Branding creates an
expectation of
customers gets high.
With high experience
customer repeats their
purchases and this
action increases
opportunities for
suppliers.
Multiple Products With multiple
branding company can
attract various
customers.
Customer can get
various items at a
single platform.
Increases work for
them and revenue gets
increased.
P2 Key components of a successful strategy for building brand equity
Brand equity is a value premium that a firm gets from a recognised product and along
with this product has some liability that has to be fulfilled by them. BE for both is important as it
involves interest of both parties one is organisation and other one is clients. Generally brand
equity is associated with high revenue companies. Quality and reliability are main component of
brand equity. BE is which encourages consumers to purchase that particular products (Kapferer,
2017).
Development of brand equity is a set of task that is done by marketing manager ODF
company. There are some steps which is to be involve in development of Brand Equity are
described as below:
1. Introduction – Launching of a product by using branding strategy as a stage on which
introduction of future products is based. It means when a product is evaluating an item by
its quality.
2. Elaboration – In this section company make its product with high quality with association
of services develops brand image that includes some liability towards customers. This
action ensures repetitive purchase by clients. It includes brand attitude, which is
memorable or not (Dinnie, 2015).
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3. Fortification – It is a responsibility of a brand that it should carry an image with time and
develop a special kind of bond with their consumers. Brand extension fortifies a product
into brand but only few products are capable in creation of brand equity.
There are some components that are available in successful strategies of brand equity and these
are stated below: Differentiation – All brands have some liability towards their customers. Uniqueness of
brand depends which kind of promises firm made to their clients. Promises must be
different from rivals (Ertimur and Coskuner-Balli, 2015). Knowledge – Consumer refuse to buy an item from Hyundai if they are not aware about
their products and services and they still did not recognised it as a brand. Brand equity
can be made by applying several tools. Relevance – Brands necessarily point out needs and wants of their customers.
 Esteem – It means how a product is getting respect in market. Esteem can be create by
developing quality services and products, customer care services etc.
A brand equity can be create with help of successful strategy formulation. This tactic has several
components that is responsible for its success and elaboration of these are stated as beneath: Collaboration – Success and growth of a brand depends upon collaboration of different
functional areas like marketing, sales, HR etc. This connection generates benefits of
internal and external stakeholders that ultimately create brand equity (Du Preez and
Bendixen, 2015). Value – When company is articulating a different and significant value than its business
enemies, this kind of their behaviour generates strong and powerful brand image that
consist brand equity with it. Emotional Capital – This kind of capital a firm gains when it connects its product with
emotional quotient of their client. With assistance of this consumer feel emotional while
making purchase and it generates positive impact on firm's growth.
 Communication – There are several ways by which connection between company and
client can be improved these are as below:
◦ Brand awareness – Organisation communicates with its buyers by influencing
their current and potential buyers by providing worlds class products and services.
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◦ Perceived products quality – Factor decides that how an item or corporation's
serving to be perceived in marketplace. There are large no of person whom are
driving cars of Hyundai which is a proof that clients are taking company's product
seriously (Rauschnabel and et. al., 2016).
There are several ways which are to be contained in communication by which association can
establish relationship with its consumers.
Online – In this venture contacts with their clients through internet which includes social
networking sites etc. and by making website of business.
Offline – In this section enterprise interacts with customers by making face to face
interactions. For e.g. through meetings or store visiting.
Electronic – This media includes communication through TV, radio, e-mails etc. Some
of these are one way communication tools and another is both ways.
SECTION 2
P 3. Different strategies of portfolio management, brand hierarchy and equity management
Brand management benefit firm to establish and sustain interest of customers towards
their product and services for longer duration. This help firm to enhance their sales and
profitability through which they are able to increase their market share. Executives require to
manage their brand equity by delivering items according to people requirements (Abrahams,
2016).
Brand portfolio strategy
Corporate brand: Company provide items with their company name.
Umbrella brand: In this tactic firm offers similar and related products under single brand and
includes family brand.
Endorsed Sub brand: In this items are offered with separate brand name provided under parent
brand.
Product: When firms sell their items without any brand name.
Management hierarchy of Hyundai:
Umbrella brand : Firm uses single brand name to offer two or more related items and therefore
it is not similar to brand extension . Hyundai is able to increase their brand equity by offering
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choices to customers.
Products : Hyundai company provides various types of cars such as Creta, Verna, Santro, Eon
and so on. They have frame different schemes for each vehicle so that they are able to cater
large number of customers.
Honda :
Umbrella branding : Superior of honda uses this strategy to provide different variety of cars
under their brand.
Products : S-cross, Honda city, Amaze are various type of cars offered by them to customers.
Brand equity : Companies are able to increase their market reputation by fulfilling their
commitment they have made with their customers by inserting appropriate features in their
vehicles.
CBBE model (Consumer based brand equity)
CBBE model was developed by Kevin Lane Keller which helps organisation to regulate brand
equity in better way. According to him, companies promote their product to inform customers
about their product and services. With time they are able to establish their image in market by
providing quality offerings to people. Therefore, they are able to establish brand which is
formed on basis of users perception and pleasure which they get after using items (Dessart,
Veloutsou and Morgan-Thomas, 2015).
Advantages of CBBE model
Brand identity : This is refer to as customers ability to figure out certain product in relation to
other firms offering.
Brand meaning : This model states that brand name helps companies to eliminate
misinterpretation of users and thereby accomplish targets in better way.
Brand response : Firms are able to generate good amount of revenue if customers are aware
about features and benefits of product.
Brand resonance : This enhance companies image in respect to rival brand (DiMartino and
Jessen, 2016).
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P4 How brands are managed collaboratively and in partnership both at a domestic & global level
Success of a brand depends upon popularity and its servings should be good. To make
recognition of product and services company need to increase production level to make supply
on all demands (Buil, Catalán and Martínez, 2016).
Brand Extension
This tool is utilized by very large scale firms that have high revenue. Extension means
enhancement of products categories that address various kind of needs and wants of customer.
It is a variation in existing product and services that is made to point out different kind of
desires of consumers. Hyundai launched variations in their vehicles on regular basis that meets
requirements of their clients.
Hyundai and Honda both are multinational corporations that are conducting their
business operations in international level and are very known in their respective industry. As
per tradition and culture of consumer whom belongs to different countries association need to
design their plan of action. There are distinct type of vehicles and their associated services that
are Hyundai is providing in several nations like India (Brooks and Anumudu, 2016). Matrix
that is very useful in this context are stated as beneath: Ansoff's Growth Matrix
Current Products New Products
Current Market Market Penetration Product
Development
Strategy
New Market Market
Development
Strategy
Diversification
strategy
Market Development: When corporation has new market to launch their existing
vehicles that are already reached on maturity in product life cycle. In this case company tries to
discover new places and potential buyer for their over successful transports.
Market Penetration: Means when an association is introducing in their current
market a new and improved product to get diversify for fulfilling client's desires. It is done for
retaining customers for longer period of time.
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Diversification Strategy: Corporation is using new markets for launching their
new product that is launched to serve for specific type of consumers whom are more in number.
Diversification means variation in existing working and it done to create a fresh and powerful
brand image among customers (Som and Blanckaert, 2015).
Product Development: A corporation is said to be develop its product when it
launches new product in an existing market. When an enterprise recognises need of their
consumers and work according to them, then it creates a new and upgraded vehicles that meets
desires.
Brand fit extension – A product can be extended when consumer see that it is a logical fit and
brand conveys some profits wanted in new category. Some brands can not have potential to be
extended but in case of Hyundai and Honda, they are having a calibre of categorised their
product in various innovations.
P5 Different sort of techniques for measuring and managing brand value
Every corporation that is running their business in competitive world are facing a lot of
challenges. Their essential task is that they must consider all desires and requirements of new
and existing customers. This action will make customers satisfy and with high satisfaction they
purchase corporation's offerings again and again. Hyundai is an auto-mobile organisation that is
being loved highly in nowadays. They are increasing their market share on regular basis in these
days. Need of brand measurement arises when below stated two aspects are present in industry
(Liu and et. al., 2015).
Evaluation of different techniques used by Hyundai
Brand Management Techniques – To identify place of brand company uses various tools and
techniques that accurately measures position of products and services in industry as well as in
marketplace. Thus, managing brand equity and image helps manager to make some important
permutations in response to wants of consumers. Quantitative techniques – This tool contains numerical and statistical representation of
data that helps in creating proper summary of vehicles to be made in firm. Sub tools and
methodologies that is used in this are as follows: brand image and awareness.
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 Qualitative Techniques – It is an unstructured approach that helps management on
approaching new clients (Urde, 2016Shah, 2015). Decisions are made after scanning all
preferences and response of consumers.
 Comparative Techniques – This section includes study of consumer behaviours and
reaction about association's offerings. This kind of scanning increases gain and interest
of corporation that ensures success and growth of firm.
Brand equity audit and Tracking Techniques-
With assistance of brand audit an organisation will evaluate their existing place at market. Thus,
it is required for each company to conduct it effectually. there are some factors which will
comprise into this:
Strengths and Weaknesses: Under this, both firm's market share need to be described.
Market context: It is must to find out those components which will provide wide affect on
association either in an positive or negative manner (Bell and et. al., 2015Bell).
Brand equity description: Under this, it is must to examine feelings of customers which is
connected with brand.
Competitive tactics and strategies: It is required for organisation to make appropriate strategies
and policies so that they will be able to take benefits from rivals at competitive world.
Brand tracking: This is associated with various variables, such as preferences, attitude, usage,
considerations and so on. This will help to know about the satisfaction of clients.
CONCLUSION
Brand management is a major thing for business in which various consents and thing get
included. From this project, management of brand techniques get evaluated for a business so that
association become able to sustain into keen world properly. A brand get managed through
appropriate and optimum utilisation of resources and with appropriate brand equity technique. It
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