Brand Management Report: Strategies for Brand Equity Management

This report provides a detailed analysis of brand management, focusing on the automotive industry, specifically Volkswagen and Toyota. It begins with an introduction to brand management, emphasizing its importance as a marketing tool and its role in business practices. The report delves into the key components of a successful brand strategy, crucial for managing brand equity, including target audience, brand promise, perception, brand values, brand voice, and brand positioning. Section 1 explores the significance of branding, including how it improves recognition, builds trust, supports advertising, creates financial value, and attracts customers. It also differentiates between a product and a brand. Section 2 examines strategies for portfolio management, brand hierarchies, and brand equity management. It critically analyzes the use of different techniques for leveraging and extending brands, along with techniques for measuring and managing brand value. The report utilizes appropriate theories and models, providing critical evaluations and examples to support its findings, and concludes with a summary of key insights and recommendations for effective brand management within the automotive industry.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
P1 Importance of branding as a marketing tool and its management in business practices...1
P2 Key components for managing successful brand strategy for managing equity...............3
M1 Evaluation of management of brand successfully with appropriate theories and models7
M2 Application of appropriate and valid example.................................................................7
D1 Provide a critical evaluation for comprehensive understanding of branding with suitable
example...................................................................................................................................7
SECTION 2......................................................................................................................................8
P3 Strategies related to portfolio manageable, brand hierarchy and brand equity management 8
M3 Critically analyse portfolios management, brand hierarchies and brand equity ...........10
P4 Management of brand collaboratively and in partnership both at domestic and international
level......................................................................................................................................10
M4 Critically evaluation the use of different techniques use for leverage and extended brands
..............................................................................................................................................12
P5 Various techniques for measuring and managing brand values by applying suitable
example.................................................................................................................................12
M5 Critically evaluate application for managing and measuring brand value in relation to
developing a brand...............................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Brand management is a process through which business become able to supervising
image of a company in front of their customers (Vigneron and Johnson, 2017). It is essential to
maintain and manage brand value of a company by providing high quality standard products so
that better and effective gain could be estimated. This report signifies about Volkswagen and
Toyota Group whom are two best automotive companies in the world and have good market
share as well as growth. This assessment includes about prospect about brand establishment and
its management with a course of time so that effective return become possible. Along with this, it
is important to manage brand in portfolio as well so that effective outcome become possible in
framework. With changing course of action, appropriate strategy need to apply for managing
brand value of a company.
SECTION 1
P1 Importance of branding as a marketing tool and its management in business practices
Brand is considered as a symbol, sign or different image of organisation; therefore,
people will differentiate items and services of firm from any other enterprise. This will assist
them to take benefits from their competitors. By maintaining image at marketplace, association
will improve market share and revenues (Kapferer, 2017).
Main purpose of branding is that it helps to attract individuals towards their goods as well
as services. Volkswagen and Toyota, both are rivals of each other and develop best items.
Volkswagen is known for their luxurious brand as they produce quality goods in maximum
amount. Hence, their brand image will work as a marketing technique for them which pull
attention of numerous individuals. Rather than this, their fundamental aim is to accomplish needs
and wants of every segment of people. Branding is considered as a tool of marketing which assist
firm to improve sales and profits at marketplace. Moreover, it assists to cater positive effect on
business.
Therefore, there are certain significance of branding as a marketing tool, which are
described as beneath (6 Reasons Why a Strong Brand is Important for Your Small Business,
2018): Improve recognition: With assistance of an appropriate branding, an organisation will be
able to improve their production and sales (Rauschnabel and et. al., 2016). Thus, it is
must for them to concentrate on their symbol as well as logo. In context of Volkswagen,
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they are having distinctive design of logo which makes them unique. As a result, they
will easily manage entire sales of vehicles effectually. Branding creates trust: It is needed for company to develop loyalty and trust regarding
their products amongst clients. This aids firm to maintain customer base for longer period
of time. Volkswagen is considered as a luxurious brand which helps them to take benefits
from other organisations. Support in advertising: If an association wants to survive at marketplace for longer
duration then, it is must to gain competitive advantage. For above stated purpose, they
will utilise appropriate tools and methods of marketing. This will help them to develop
brand value at market (Abrahams, 2016). For instance, Volkswagen never does
advertisement of their products but, Toyota does this so that they will increase sales and
profits. Create financial values: With aid of an effective branding, association will develop their
financial value. If brand of firm is appropriate then, they will easily take loan from banks
or other institutions (Buil, Catalán and Martínez, 2016). As a result, they will be able to
arrange fund for business which help them to run operational activities in a proficient
manner. In context of Volkswagen and Toyota, they both are having good image which
assist them to develop financial value.
 Generate more customers: Each kind of affiliation wants to gain maximum clients and
for this, they need to provide qualitative items and services to them. This enables them to
maintain goodwill at marketplace. Hence, brand image of Volkswagen as well as Toyota
is much efficient which help to attract many clients towards them as a result, they will
take benefits from competitors at marketplace (DiMartino and Jessen, 2016).
Rather than this, there are certain differences amongst product and brand which is described as
beneath (Brand or Product – What Is the Difference?, 2018):
Product Brand
This is produced by firms and they sell it to
buyers with exchange of money.
This is basically developed by perceptions as
well as expectations of clients.
An item will easily get replaced and copied by
others.
With assistance of an effective brand, an
individual will easily recognise it.
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Demand of product will change as per period
of time.
Whereas, brand will not be easily forgettable
by people.
Brand equity is refer to as marketing term which signifies about value of a product or
services which offer at market place. It is important for an organisation to evaluate brand value
of a company properly so that chances of better and effective outcome become possible in frame.
Every business needs to grow and develop their brand with a course of time by using positioning
approach. Position of brand at market place needs to get evaluate with course of time so that
better and effective outcome could be accomplish.
For developing a brand over with time, it is important for an association to use and
measure 5 easy steps which define as follow in order to manage brand equity:
 The first step for grow brand with time is to introduce goods and services at keen
competitive world properly. It is important to execute this concern with appropriate frame
so that better results could be gain.
 Along with this, business need to monitor and trend and competitors of an organisation
properly. It is important to determine all major rivalry of an organisation properly for
managing and developing a brand over with time.
 Another thing which associated with business and its brand is to reinforce brand of a
company by taking and providing positive experience to customers. It is essential to
frame a positive mind set towards consumer so that brand could develop over with time.
 Consistency of brand messaging in which management have to deliver appropriate
message related with brand so that user become able to get know about product and
services and its value get enhance.
 Once all essential context get fulfil business need to gain consumer feedback and
responses. For managing brand over with time, it is important to take user feedback about
such aspect in order to enhance better and effective working.
Volkswagen and Toyota both need to manage their brand equity with a course of time so that
they become able to enhance sales and revenue. This will support them in better and effective
gain which contribute in overall enhancement of customers so that chances of suitable gain
become possible.
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P2 Key components for managing successful brand strategy for managing equity
To manage each thing in an appropriate manner, manager of organisation will prepare
some strategies. If brand image of association is effective then, they will be able to attain coveted
targets within limited period of time. Rather than this, it is essential for firm to know about needs
and wants of people so that they will accomplish it timely by completing operational activities.
There are some factors which need to be examined by superior; thus, they will manage
and implement successful strategy of brand. As a result, they will gain trust and loyalty of
customers which helps organisation to improve sales and revenues. These components are stated
as beneath (Brand Strategy: The 6 Key Elements, 2014): Target audience: They are considered as those individuals who are going to be targeted
by company. Each brand has a particular market segment which needs to be examined by
them effectually (Keller, 2017). Therefore, they will develop policies and strategies
accordingly. Volkswagen basically targets those people who are having high income. Brand promise: It is required for organisation to provide qualitative goods and services
to clients; thus, they will be able to retain them for a longer time duration. In context of
Volkswagen, they promise with customers that they always render the best items to them
which will satisfy their needs and demands effectually. Perception: This portrays about position as well as perception of brand at marketplace.
Manager of organisation needs to find out opinion regarding brand timely; therefore, they
will motivate staff members to manufacture items effectually. Rather than this, it is
needed for firm to know about the thoughts of people so that they will formulate
strategies and policies for business accordingly. Values associated with brand: There are certain values which are associated with brand
which help them to improve their revenues and goodwill at marketplace (Urde, 2016).
This enables Volkswagen to take advantages from competitors at marketplace. Brand voice: To attain coveted objectives and targets, it is essential for organisation to
set it. Therefore, they will be able to fulfil requirements of clients as per their demands.
Along with this, superior will easily manage entire activities in a corrective manner.
 Brand positioning: This is considered as a foremost element component which is
connected with firm. It is must for them to keep up goods as well as services in an
effective way. Management of association needs to formulate action plan; therefore, they
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will gain benefits from rivals at marketplace. This will assist them to improve their
position and goodwill (Balmer and Wang, 2016).
Henceforth, it is must for Volkswagen and Toyota to consider above mentioned components so
that they will manage strategies in an appropriate way. For above purpose, it is must for
administrative department of firm to examine brand equity as it is related with strategies.
Basically, brand equity defines brand value of association which will identify by perception as
well as experience of clients. It is must for manager of association to maintain it; thus, people
will recognise about goods of enterprise.
Henceforth, strategy needs to be analysed by Volkswagen and Toyota, in this context
there are some elements which are stated as below: Brand awareness: It is must for an organisation to develop awareness regarding their
brand amongst people as this enable them to attract people towards them (Tomczak,
Reinecke and Kuss, 2018). It defines that, employer has to provide necessary information
to customers related to goods so that they will take decision regarding its purchase. In
context of Volkswagen, whenever they launch new vehicle for individuals then, they give
proper info about it to them. Perceived quality: It is must for organisation to maintain quality of goods and services;
so that, they will able to take benefits from competitors at marketplace. Through this,
they will easily maintain their customer base which will help them in improvisation of
revenues. But, if quality is not much appropriate then, firm will not maintain their brand
image. Brand experience: It defines experience of customers regarding products and services
which is offered by company to fulfil their needs and wants. If they are having good
experience then, they will never switch to other brand. Henceforth, Volkswagen is
providing best quality of items to individuals which enable them to compete contenders
i.e. Toyota at marketplace (Buil, Martínez and Matute, 2016). Brand preference: This is a foremost component which is associated with brand equity.
An enterprise needs to provide qualitative items and services to people according to their
needs and wants. This enables them to improve production as well as sales. In relation to
Volkswagen, they provide luxurious items to persons which describes about their
effective strategy of market.
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 Brand loyalty: It is required for a firm to maintain trust and loyalty of goods amongst
people. This will help them to maintain their client base. As a result, company will able
to increase their sales and profits which assist them to improve market share.
Therefore, above mentioned factors associated with brand equity needs to combine with the
business strategies so that, association will obtain positive result (Merrilees, 2016).
It is important for an organisation to determine brand development stages through which
association become able to enhance their product with course of time. Mainly, business need to
evaluate all steps and stages properly so that they become able to develop product with
appropriate techniques and tools: Business strategy: First step is to frame suitable and appropriate business strategy which
enables in order to maintain effective and appropriate working. Overall business action
plan need to consider by management so that it will contribute in growth and
development. Target audience: Next step for branding is evaluate target audience on which business
lead to make their target. It is important to consider all target responses of an organisation
so that better and effective working get promoted. Research about group: Once business frame their target audience then they need to
organise appropriate study on them. It signifies that association need to evaluate all needs
and wants of their target audience so that better and appropriate quality lead to get render. Positioning with suitable message: Another function which need to perform with brand
strategy development is to determine position at keen competitive world and deliver
suitable message as well. This enables in target suitable number of customers so that
better working get promoted and encourage. Develop content marketing strategy: This section signifies about use and development of
brand through content marketing strategy as well as develop brand logo and other
associated material. This will contribute in over all development as well as brand get
easily recognise by their customers. Development of web site: Another stage of brand development is framing of web site.
Management need to develop and grow web site properly and effectively which attract
most number of users.
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 Implement and execution: The last step of brand development is implementation and
execution of all stages in an appropriate and suitable frame so that brand get develop over
with time in order to enhance better and effective working.
M1 Evaluation of management of brand successfully with appropriate theories and models
Brands need to get manage successfully with a course of time so that better and effective
results could be accomplish. There are various management strategies and Keller brand equity
model get evaluated by Toyota and Volkswagen which need to use in order to manage brands
successfully which are as follow:
 The first phase of a series is to determine and create a brand awareness of a product and
services so that customers get appropriate information regarding such fact.
 The next step of this phase is to maintain brand meaning for products and services.
Volkswagen and Toyota need to maintain an appropriate brand meaning of their products
and services
 Brand resonance states about providing appropriate information related with brands to
customers so that appropriate differentiation and quick recognition become possible.
 The last phase is to maintain and frame suitable relationship between customers and
company. Toyota and Volkswagen have to create such products which enables them in
maintain suitable relationship with their users.
M2 Application of appropriate and valid example
Volkswagen have one brand marketing strategy under which they deliver vast range of
products and services with one name. For this context, management first have to provide
appropriate details to each and every users about products and services and then deliver it to by
determine their needs and wants. Volkswagen already engage in a consent of global emission
scandal and to remove this tag, they launch and start producing environment friendly cars. Thus,
management start promoting goods and services with more new innovation in order to gain
suitable market share.
D1 Provide a critical evaluation for comprehensive understanding of branding with suitable
example
According to the Kapferer and Michaut-Denizeau (2017), branding is consider as
important consideration for business in order to manage their sales and keep sustain into market
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world for long term context. It is important to manage and frame effective branding strategies so
that better and suitable gains could be promoted.
Branding support in quick recognition of product as well as marketing of its services so
that better and suitable growth could be promoted in order to maximise efficiency. Although, this
will lead to maintain and support to generate more and more revenue for an association.
Volkswagen have good branding strategies which support them to maintain efficiency in
working for accomplishing targets.
SECTION 2
P3 Strategies related to portfolio manageable, brand hierarchy and brand equity management
Strategies are considered as an eminent part of firm; therefore, they will able to
accomplish their task in an appropriate manner. It is required for MNC to prepare effective plan
for their business so that they will increase production and profits. It is working as a guidelines
for them which help to fulfil coveted targets and goals within specific period of time.
Fundamentally, strategies related to portfolio management is affiliated with such
components which has to be utilize by company in an appropriate manner; thus, they will acquire
best return effectually. Following are two kinds which are associated with portfolio strategies
and these need to be comprehend by firm properly: Active portfolio management strategy: This attribute is connected with employers as
well as enterprises who takes risk so that to improve market share. This will assist them
to increase profits and sales. This sort of method is utilized by those brands whose market
share is already effective. Therefore, they will conduct market research to know about
needs and wants of clients. As a result, maximum return will be obtained by firm.
 Passive portfolio manageable strategy: It is basically related with minimum risk where
less forecasting has been done. Manager of firm needs to implement appropriate elements
into portfolio; thus, they will be able to acquire effective return. For example: mutual
fund. There are some organisations who does not stable at marketplace so that they will
consider passive portfolio management strategy (France, Merrilees and Miller, 2016).
Henceforth, above mentioned both methods are useful to manage portfolio effectually. In context
of Volkswagen, they are utilizing active portfolio management strategy as they are having an
adequate market share as comparison to Toyota. They will easily acquire opportunities which
will assist them into improvisation of profits and goodwill.
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Association is providing many kinds of items and services to people which assist clients
to accomplish needs and demands proficiently. They have to follow specific hierarchy which aid
them to attain desired targets and objectives within limited period of time (Zimbra, Ghiassi and
Lee, 2016). Therefore, there are some basic differences amongst hierarchy of Volkswagen and
Toyota which are discussed as beneath:
Basis Umbrella brand Products
Volkswagen It describes that association is selling
their items under a single name.
It helps to satisfy needs and wants of
clients in an effective manner. This will
differ from other brand, such as Ameo,
Polo, Vento and so on.
Toyota This aids to cater positive image at
marketplace.
There are many kinds of products are
providing by affiliation to their
customers, for instance: Etios. Fortuner,
Innova and many more.
Customers are considered as a end user of products and services; therefore, it is must for for
company to satisfy them. It is must for enterprise to keep up their goodwill as this assists to
capture attention of numerous people. Hence, firm will utilize Keller Brand Equity Model which
is also known as CBBE framework. It is must for Volkswagen to manage their brand equity
because this enables them to compete rivals at marketplace. There are some steps which are
comprise into this, are mentioned as below (Keller's Brand Equity Model, 2018): Identification of brand: This is considered as a first step connected with CBBE
framework. It describes that to fulfil equity, it is must to identify brand at marketplace.
As a result, they will fulfil needs of people as per their demand to acquire positive
outcome. Meaning associated with brand: It is much associated with experience of a client in
relation of products as well as services. Organisation has to provide goods to buyers
according to their expectations because it aids them to retain loyal for brand for
maximum period of time. Therefore, it is must for Volkswagen to present themselves at
market appropriately. As a result, they will improve value of items easily and proficiently
(Kaufmann, Loureiro and Manarioti, 2016).
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 Responses towards brand: Manager of firm needs to identify feeling as well as decision
of customers regarding goods and services. It is needed for them to cater best qualitative
items to individuals so that they will be able to improve revenues and market share. By
analysing response of clients, manager of Volkswagen will formulate strategies as well as
policies for business effectually.
 Brand resonance: This is not easy task for each and every brand and this term has to be
comprehend by superior of firm. It is the final step which has to be understand by
employer.
Henceforth, all these are much useful to compete competitors at marketplace so that they
will able to survive at market for longer period of time.
M3 Critically analyse portfolios management, brand hierarchies and brand equity
As per the view point of Baalbaki and Guzmán (2016), brand equity and portfolios
management is consider as essential part for a company to get sustain into world and manage
sales as well. For this context, business managers can use active portfolio management and
passive portfolio management strategies so that better and effective gain could be promoted. By
applying suitable strategy to appropriate work, maximum gain could be accomplish by fulfil all
targets and goals properly.
P4 Management of brand collaboratively and in partnership both at domestic and international
level
Brand extension is prominent as it provides support to business into their growth; this
will also help to gain trust and loyalty of individual. There are some approaches which are
related to this, discussed as beneath: Line extension: It means company wants to target new market so that they will improve
client base. For this, they provide existing items to them; as a result, they will able to
expand market share to gain maximum profits. This sort of tool will be utilized by
Volkswagen; thus, they will easily enlarge their business effectually and improve brand
image as well.
 Category extension: It is much associated with expansion of goods as well as services.
Company will use this kind of strategy to enter into new marketplace through maximum
items (Vigneron and Johnson, 2017). In context of Volkswagen, they have an effective
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