Effective Brand Management Strategies: A Report on Coca-Cola

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Brand Management
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Table of Contents
Introduction:................................................................................................................ 3
Task 1 – Building and managing brand over time (LO1).............................................4
Task 2 – Brand portfolio and hierarchy management (LO2).......................................8
Task 3 – Brand extension and leverage (LO3)..........................................................13
Task 4 – Measuring and managing brand value (LO4).............................................15
Conclusion................................................................................................................ 18
References................................................................................................................19
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Introduction:
Brand management is actually the thorough knowledge of the brand. From
developing a promise to implementation as well as maintain the promise is brand
management (Heding et al., 2015). In this assignment, to understand the brand
management and to know what actually brand management do is elaborated. This
will explore the range of tools as well as the techniques that can maximise the brand
value. The real examples will give vast knowledge of the brand management and
how effective is brand management for any industry. From the introduction of brand
equity to all the strategies, using for the brand management is analyzed. How
organisation’s brand portfolio works and how the brand extension helps the company
to get higher reputation and brand value measuring as well as strength and
weakness of any brands, all the thing are elaborated. In this case, Coca Cola
Company has taken as main example. Brand management of Coca Cola are nicely
analyzed.
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Task 1 – Building and managing brand over time (LO1)
“Brand Is Power”
Introduction:
A brand is a unique design, sign,
symbol, words, or combinations of
these that identifies a product and
differentiate it from their competitor.
Legal name of a brand is always a
trademark for them when it defines a
firm; it is called a brand name (Stobart,
P. ed., 2016). Brand management is a
process of maintaining, improving, and
development of the brand with the help
of associates for the positive results.
As brand name is trademark, branding
is the enhancement and development
of products and services with the
power of the brand. Brand
management built for the development
of the products. This branding not only
helps to achieve high results of the
sale but also it helps to other products
associated with the brand. For
example, if a customer loves any
product of any company then the same
will purchase other products of that
company. Optimum Impression Ltd.
has same branding process and as a
manager this article defining the
process of branding and maintaining
the process (Naeini, et al., 2015).
Main Body:
Organisations always differs them from
other competitor by their brand name.
Branding enhance the organisation by
the services. Benefit for any brand are
reflected by the consumers thinking
level, their feeling about the brand, and
the act presents on respect to the
brand. Brand can be distinguished by
their logos and people sometimes
remember these brands by their logos.
Optimum Impression Ltd also uses
their logo to differentiate them in this
dynamic market. Brand is important
for any business to start as it defines
the organisation. Brand knowledge can
be defines as thoughts, beliefs,
feelings, Images, experience. Strong
brands always have improved qualities
and services for every product.
Optimum Impression Ltd improved
their quality of services to cope up with
market. Loyalty level of customers will
be high, as they only preferred them
as their first preference. Strong brand
do not have that much tension about
their competitor as their vulnerability
level is low and their suppliers are
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always available as well as their
consumers are always there, so they
do not have any crisis for this.
Optimum Impression Ltd always uses
different strategies for their suppliers
and the consumers. These different
strategies help them to get more
benefits. Consumer response is also
good. Consumers are also gives a
good response to any strong brand.
Trade operation of any strong brand is
always high and that helps them to get
a good market communications are
very effective. Licensing possibilities
will be higher for the organisations
when the brand value is high as it is a
strong brand. Trade operation of
Optimum Impression Ltd is high as this
brand name is strong, so that the
investors and partner are getting more
involved for the business. For
example, Brand promise is that where
the market visions optimised clearly by
the organisation. Optimising the vision
will help the organisation to analyze
what actually demanded by the
consumers. Organisation need to
focus on the brand promise that
describes what to do for the
consumers.
Brand equity models are describes
as some particular models. Those are,
Brand Asset Valuator, Aaker Model,
BRANDZ, Brand Resonance (Shuv-
Ami, A., 2016).
BAV having some components that
describes all in BAV. Those are
differentiation, energy, relevance,
esteem, Knowledge (simplynotes,
2019).
Differentiation measure the
uniqueness of the brand. This implies
the attention of the brand to the
customers. It indicates that the brand
is more attracted to the customers
than competitor is. Optimum
Impression Ltd uses the same
differentiation technique for their
customers. This implies that the
customers are coming to particular
brand when they recognise the brand
(Chen et al., 2017).
Brand relevance measures the breadth
of brand appeal that means is our
brand is appropriate for the customers
or the product or services proving by
the organisation is affordable for the
customers or is it fulfilling their needs
or not. Brand relevance will be
observes when we ask any consumer
how they like to buy a product or
service although they did not
purchased anything before. Optimum
Impression Ltd helps their customers
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to get superior services for their future
outcome from the business.
Esteem measures the brand respect
and brand regard. When it will be
asked to the consumer that how
innovative the brand is and how
reliable, helpful the brand is.
Knowledge measures the familiarity
and intimation of the customer with the
brand. How the consumers know our
brand and what they think about our
brand is important because that
implies the knowledge of the brand
(Hemsley-Brown et al., 2016).
Brand dynamic pyramid have two main
points. One is weak relationship and
another one is strong relationship.
Weak relationship can be strong
relationship if the consumers having
the knowledge about the company.
Presence, relevance, performance,
advantages, bonding, all are important
to make a strong relationship (Angeli,
F. and Jaiswal, A.K., 2015).
Aaker model have four main
elements. Those are Brand identity,
extended identity elements, core
identity elements, brand essence.
These four points actually defines as
the brand loyalty, brand awareness,
perceived quality, brand associations.
Higher loyalty reduces the marketing
cost of the organisation. Loyalty
cannot be reduces in one night as it
takes time to gain. We will get some
time to respond the consumers before
going to the competitors
(marketinglessons, 2019).
Brand awareness is the first point that
any organisation need to care about.
After the brand awareness other
parameters come. Consideration will
take places when brand awareness is
good. Brand association help brand to
extend the information to the
consumers from advertisement. Brand
association extend to which brand is
create the positive attitude or feelings.
When the number of brand extended
in the market, it increases the
opportunity to add brand associations.
Patents, trademarks, channel
relationships are also key factors. As
per Aaker’s Model, four elements of
Optimum Impression Ltd is also brand
equity, extended identity elements,
core identity elements and brand
essence. Brand loyalty of Optimum
Impression Ltd is counted by
examining these four elements. These
four elements higher the loyalty of
Optimum Impression Ltd and this
helps to reduce the marketing costs.
Sometimes consideration is also takes
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place because of the brand name of Optimum Impression Ltd as there is
positive attitude present.
Figure 1: Aaker’s Model
(Source: Created by the learner)
There are 12 dimensions, which are
organised in 4 perspectives in the
Aaker’s Model (Çifci et al., 2016).
Those are Brand-as-product, brand-
as-organisation, Brand-as-person,
Brand-as-symbol, Product scope,
product attributes, quality, uses, users,
country of origin is in the Brand as
product. Organisational attributes,
local versus global is in the brand as
organisation. Brand personality, brand
customer relationship is in the brand
as person. Visual imagery, brand
heritage is in the brand as symbol.
Perceived quality gives an extra
benefit although perceptions have no
work before the long term uses. When
a brand name is strong in spite of
upgrade or innovation it will run for a
long time.
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BrandIdentitySystemBrandasproductBrandasorganizationBrandasPersonBrandassymbol

Conclusions:
This article has revealed that brand
can be defines as the process of
maintaining and creating a positive
corporate reputation using the brand
power. It will return the brand
positioning that will be a result of brand
value, brand personality, brand value
disciplines. The value of any brand will
decrease when there is no value
addition presents. In any competitive
advantage, this is very crucial for the
brand. As a manager of the company,
Optimum Impression Ltd, need to go
beyond of the measuring and
leveraging value of the brand to add
some effective value continuously.
Sometimes differentiation is higher
than relevance. When any brand is
different but consumer need to know
something new about the company
then they will be confused. This will
attract the consumers and this will help
to get a strong brand value but if
opposite is there then the brand is no
longer interesting. This implies
consumer will only buy the products
based on the price or convenience. If
esteem is higher than knowledge,
consumer will be eager to purchase
the product to know the loyalty of the
company but if it is opposite then
consumer will only learn about our
competition not about us because they
will judge our brand rather than
knowing about it.
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Task 2 – Brand portfolio and hierarchy management (LO2)
Management of a brand portfolio is not easy without knowing all the brands and sub-
brands attached to any product market offering with other brands. The relationship
between all sub-brands and their strategic importance should have to know for
effective investments. “Lack of focus means that energy and resources are
dissipated. Focus, in contrast, ensures that people and resources are concentrated
where they can add greatest value.” Here the brand portfolio strategy and hierarchy
management of Coca Cola will be discussed to analyze their strategies used for the
equity of the brands. Coca Cola is world’s largest soft drink maker and their work
area is more than 200 countries. This brand is from United States but their 60% of
revenue and 80% of profit comes from outside of US. Survey says that total 94%
people across the world knows about Coca Cola. Coca Cola invested their 40%
equity in Chi Ltd (Nigeria based Dairy and Juice Company) that implies, they are
going to be 100% owner of that company within next three years. This brand’s
hierarchy management is a tool, which is a influences for the consumer perceptions
(coca-colacompany.com, 2019).
The portfolio and hierarchy management of Coca Cola within organisations
portfolio:
Brand hierarchy is an approach that summaries the brand strategy with the brand
elements to reveals the explicit ordering of the brand elements but brand portfolio
created to know the certain boundary which cannot fulfil the demands of market
segments. Managing the brand’s meaning and optimizing the brand’s design to
develop and to get profit is brand portfolio strategy. Hierarchy management is
actually a pyramid structure where higher-level controls lower-level (Tan et al.,
2016). Segmentation, targeting and positioning of Coca Cola is really developed.
Segmentation is for appropriate products for some particular customers. Coca Cola
do not have a particular type of target segment. They have nice strategy to get all the
segments. They have the entire product for every age group. They develop new
products if there is nothing for any segments. Their marketing strategy is niche type
as they sometimes target some particular segments. They have diet coke for those
who are diet conscious. It implies that they are aware about the problems. Coca Cola
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sell and distributes non-alcoholic drinks that include some world’s best selling
products. Coca Cola distributes a unique brand portfolio with some different variants
that offering right mix of packs as well as calorie content to meet consumer
demands. Coca Cola have developed some new thing in Greece that includes Amita,
Amita Motion, Amita Proino, Frulite and AVRA natural mineral water. Coca Cola
distributes other products like Tsakiris snacks, monster energy drinks and Lavazza
coffee in some particular region (Aaron, D.G. and Siegel, M.B., 2017).
All brands always start with small beginnings. Now brands are concerned about the
brand portfolio strategy because this strategy gives organisation structure as well as
discipline which gives a successful business strategy. If there is no portfolio strategy
then the business strategy will be doomed. The objective of the investors will be
always realized to achieve organisational vitality; they need growth of the
organisation. Tools and method should have to develop and support the strategy.
There is always a challenge to create brand and fit that brand into the market. In this
dynamic market a brand need to stay relevant so that the sub-brands can reduce the
risk. As there are already strong brands, which forces Coca Cola to make some
tough decisions (Henfrey et al., 2018).
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Does it offer
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Can it offer
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Nothing else
beats it ?
Can it
deliver?
Do you know
about it?

Figure 2: Brands Model
(Source: Created by the learner)
Brands have some equity because if there is no equity then it cannot call as a brand.
When consumers got tangible or intangible benefits from any product, it becomes a
brand. Tangibility of brand equity are differs by many components. Those are Shape,
Size, Colour, Models, Price, Features, Benefits and Grades. Intangibility of brand
equity includes company name, brand name, slogan and its underlying associations,
perceived quality, brand awareness, customer based, trademarks and patents,
channel relationship, customer loyalty, customer confidence, competitive advantage
(Cohen, M.A., 2018). For building a brand, value proposition, which differentiate
products from the market competition and brand advertisements, is very important.
In case of Coca Cola, the brand advertisement is too good and their product have
competition but they have different types of product, so they feel less competition
from the market segments. Difference between brand and product is too much. A
product is that which comes from factory but the brand is what customers purchase
and product can be outdated but brand cannot be outdated. There are four main
pillars for the brand equity model. Those are energized differentiation, relevance,
esteem and knowledge.
Brand salience is how the consumers easily remember the brand when they have
many competitors. Brand performance is, when any customer thinks that their needs
are fulfil by the brand. Brand imagery is that think where the brand trying to fulfil the
consumers demands by some particular way. Brand judgement is the brand took
personal opinion of the customers. When brand take care about the personal feeling
of the customers is brand feelings. Nature of the relationship between brand and
customer is brand resonance. For building effective brand equity, three factors are
very important. In Coca Cola, there are three factors helps them to get an efficient
brand equity model. There are three key factors in the drivers of equity. Those
factors are Brand elements, marketing activities, meaning transference. In brand
elements, there is brand name, URLs, slogans, logos, symbols, characters. In brand
element, we have some choice factors. Those choice factors are memorable,
meaningful, likeability, transferable, adaptable, and protectable. Coca Cola having
same as above brand equity model.
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Brand equity measured by three factors. Those are the factors help Coca Cola to
measure the brand equity. Brand audits help to improve the health of the
organisation and it suggest the way by which can be improved (Liu et al., 2015).
Brand taking audits help organisation to measure the working consistence and
baseline information of the consumers. This helps them to understand how they are
reacting about the brand as well as organisation. Brand valuation is the total value of
the brand. Five key divisions divide general hierarchy of Coca Cola after manager.
Finance has the work of finance management. Human capital hires the employees
for different work structures. Sales and marketing department see the work of the
marketing and sales to enhance the profit. Production department has total
responsibilities of production. Industrial relationship department has the work of
customer relationship and customer’s benefits as well as employee benefits and all
the feedback taking work.
Other than this hierarchy, there is another hierarchy structure, which includes the
global structure of the company. Starting from the President of the company, until the
sub divisions there are another five-zoned divisions. Those divisions are based on
the consumer demand. Pacific, North America, Eurasia and Africa, South America
and Europe are main divisions. In these divisions, there are many sub-divisions also
available.
Figure 3: Hierarchy of Coca Cola
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