Brand Management: Building and Managing Brand Equity for Hilton Hotels

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Brand Management

TABLE OF CONTENTS
Introduction......................................................................................................................................1
LO1..................................................................................................................................................2
P1 Explain the importance of branding as a marketing tool and why and how it has emerged in
business practice..........................................................................................................................2
P2, M2 Analyse the key components of a successful brand strategy for building and managing
brand equity.................................................................................................................................3
M1 Evaluate how brands are managed successfully over time using application of appropriate
theories, models and concepts.....................................................................................................6
LO 2.................................................................................................................................................9
P3, M3 Analyse different strategies of portfolio management, brand hierarchy and brand
equity management......................................................................................................................9
LO 3...............................................................................................................................................13
P4 Evaluate how brands are managed collaboratively and in partnership both at a domestic and
global level.................................................................................................................................13
M4 Critically evaluate the use of different techniques used to leverage and extend brands.....13
LO 4...............................................................................................................................................15
P5, M5 Using specific organisational example, provide an evaluation of various techniques
used for measuring and managing.............................................................................................15
Conclusion.....................................................................................................................................18
References......................................................................................................................................19

LIST OF FIGURES
Figure 1: Brand reinforcement.........................................................................................................5
Figure 2: Brand Revitalization.........................................................................................................5
Figure 3: Keller’s Brand Equity Model...........................................................................................6
Figure 4: Branded house structure for Apple..................................................................................8
Figure 5: House of brands for Hilton...............................................................................................9
Figure 6: Individual Brand.............................................................................................................10
Figure 7: Brand Leveraging...........................................................................................................12

Introduction
Brand management is an important function of marketing that utilises various techniques so that
perceived value of the brand or product line can be increased. Appropriate brand management
support the business organization to raise the price of the product and also support building loyal
customers. In this context the report will focus on brand equity, as well as strategy for strengthen
brand equity, brand extension, reinforcing and revitalising of brands. It will illustrate the
example of Hilton brand with the help of Keller’s Customer-Based Brand Equity (CBBE) model.
Brand portfolio and hierarchy management are important in brand management and therefore the
report will analyse and illustrate various strategies for managing hierarchy and equity of brands.
It will further highlight the importance of Brand extension and leverage; as well as various
techniques for managing brand value.
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LO1
Introduction
Hilton Hotels operates as one of the well known organizations that operate within hospitality
industry. It is the flagship and popular brand of multinational hospitality organization ‘Hilton. It
owns 570 properties in 85 countries and six continents. Its properties are majorly owned,
franchised and maintained by Hilton in an independent manner. It runs number of other
hospitality organizations its own brand namely Conrad Hotels and Resorts, Homewood Suites
and many more.
P1 Explain the importance of branding as a marketing tool and why and how it has emerged in
business practice.
Role of marketing department in brand management
Brand Management is done by marketing department which has higher focus over creating brand
management strategies so that brand can be communicated to the target market appropriately
(Batey, 2015). Marketing department is responsible for making campaigns for increasing
awareness about the brand among customers. In addition to this, marketing research is also
undertaken by marketing department so that strategies related to distribution; pricing, etc can be
developed to stay ahead in the market.
Importance of branding as a marketing tool
Branding plays an important role as it supports the business organization to create value
proposition and customer preferences. Advanced marketing is beneficial for the business in
terms of generating profitability, revenue as well as market share. Branding also support the
organization to create awareness among customers in the market as well as to monitor and
manage the situations of difficulties while establishing the poor brand image as well as to
enhance the quality of degraded products and services.
Importance of branding in business practice
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Branding is not only beneficial in putting positive influence over consumer’s perception but it
also support consumers to identify what to expect from the specific business practice.
Appropriate branding is considered as the way of distinguishing business from existing
competitors in the market and makes the perception of consumers about their choices in terms of
better products and services. In addition to this, branding supports the business organizations like
Hilton hotels to grow their reputation. A strong as well as consistent brand image plays
important role while establishing the business. For an example, attractive logo will make correct
impression on targeted audience at immediate glance. Investment opportunity is another
advantage of the branding which in turn supports the organizations to generate future business.
Therefore it has been identified that branding plays important role in any aspects of the business
and can successfully differentiate itself from competitors in the market and can have better
marketing.
P2, M2 Analyse the key components of a successful brand strategy for building and managing
brand equity.
Overview of brand and Brand Equity
Brand can be defined as a concept or a service that distinguish products and services form other
products and services available in the market so that its value and benefits can be communicated
and marketed in an appropriate manner (Riley, 2016). Branding on the other hand is the process
of disseminating and creating the brand name. For an example, ‘Hilton’ is the one of the popular
brand in the hospitality sector that distinguishes it from other hospitality organizations in the
market. Brand equity on the other hand is the premium value gained by the organization with the
help of its reputed name in the market. Hilton has developed its band equity by providing quality
of products and services as well as continues expansion within the market. Appropriate
marketing campaigns are also helpful in creating brand equity.
Stages for building successful brand
Building successful brand is effective in creating customer loyalty and also supports meeting
competition. There is greater need of establishing a strong connection with customers and
therefore business organizations like Hotel Hilton follows below explained stages for building
brand:
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Identifying Target Audience: There is greater need of targeting audience based on their age,
demographics, interest, as well as their behaviour. Type of communication must be chosen
appropriately for delivering the message to the targeted audience. For an example, Hotel Hilton
targets higher business class segment for its premium type of accommodation services for
generating sales and revenue.
Defining mission of the brand: The stage will include everything from tagline to logo that
reflects the mission of the brand. Hotel Hilton’s mission is to provide best quality of products
and services which depicts higher customer satisfaction and therefore it supports gaining trust of
customers in the brand.
Identifying competition: The stage is effective in identifying the product and services offered by
its competitors so that customers in the market can be convinced on how services offered by
Hilton are distinct and better.
Developing value propositions: For building the successful brand, there is need of making brand
unique and valuable. For an example, added services such as Wi-Fi, focused customer services,
etc are some of the value proposition that are offered by Hilton that set it apart from its
competitors.
Brand marketing: Hilton is well known for its distinctive marketing strategies as it has higher
focus over identifying new channels such as affiliates, web, email, etc for promoting the brand.
Successful strategy for strengthen brand equity
Brand Equity can be strengthen by undertaking the strategies related to improvement in existing
quality of products and services, consistent brand image, as well as fulfilling the needs of
customers. Quality of products and services is one of the crucial elements for strengthening the
brand equity (Meyer, 2018). Considering the example of Nestle, the brand has successfully made
the customers to repeat their purchase because of their quality of milk products. Another crucial
strategy is to maintain the consistency of brand image and therefore there is greater need of
communicating customers on the regular basis. This can be better explained by considering the
example of Apple. The organization has maintained consistent brand image in the market while
providing smart phones in terms of its quality, marketing strategies, value propositions, etc and
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has successfully supported strengthening brand equity. Brand equity largely resides on mindset
of customers. For strengthening the brand, there is needed to provide products and services as per
the need of customers. Hotel Hilton has successfully strengthened its brand equity by ensuring
the appropriate channel so that customers can provide their feedback. This has helped the brand
to establish strategies for overcoming the weakness and also support gaining growth
opportunities.
Strategies for brand extension, reinforcing and revitalization of brand
Brand extension is defined as important marketing strategy that uses the similar brand with
recognizable name to exhibit new product and services in the market (Lee et.al.2015). The
strategy is helpful in recovering the lost image of the brand by switching it to another segment.
For an example, Unilever has extended its brand to other categories such as beauty brands
because of its declined growth in food sector. By using the brand extension strategies, Unilever
has successfully maintained and enhanced the existing customer base.
Brand reinforcement: This can be done by bringing innovation to existing design of the product,
manufacturing process, etc for seeking the continuous attention of customers. For an instance,
management of brand consistency along with preserving sources of brand equity are some of the
successful strategies for brand reinforcement (Business Jargons, 2019). In addition to this, brand
awareness and brand image are two important components of brand reinforcement.
Figure 1: Brand reinforcement
(Source: Business Jargons, 2019)
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Brand revitalization: This is the marketing strategy that can be adopted by the business
organization when the product offered by the brand is unable to gain profitability (Business
Jargons, 2019). The brand can be revitalize by encouraging customers to increase the use of
product, identifying needs of new market, re positioning of products as well as by getting
feedbacks from customers.
Figure 2: Brand Revitalization
(Source: Business Jargons, 2019)
M1 Evaluate how brands are managed successfully over time using application of appropriate
theories, models and concepts.
Keller’s Brand Equity Model
It supports identifying the customer demand so that appropriate strategies can be developed for
enhancing the overall satisfaction of customer as well as to stay competitive in the market.
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Figure 3: Keller’s Brand Equity Model
(Source: Hitesh Bhasin, 2018)
Brand Identity: The model at this stage highlights the perception of customers and the way on
how customers distinguish one brand from another. Number of organizations spend larger
amount of money on advertising so that customer awareness can be increased. Coco Cola has
successfully improved its brand identity with the help of its advertising techniques and tagline.
Brand Meaning: The stage is effective in explaining the overall performance and imagery in the
eyes of customers. Brand performance can be defined in the terms of reliability of product over
longer time period (Hitesh Bhasin, 2018). Apple and BMW are the examples of brand
performance that has successfully satisfied the needs of customers. Brand imagery on the other
hand is perception of customers. For an example, when customers in UK think of any
supermarket, they will surely prefer ASDA or ALDI because of its lower prices and higher
quality of products.
Brand Response: This shows overall experience of customers after using the product. For an
example, positive feedbacks of customers after the purchase will enhance the brand response and
can be understood by considering the example of Maggie. Negative reviews of customers for
Maggie have put negative influence on its brand response.
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Resonance: It explains the relationship of customers with the brand. For an example, Harley
Davidson can be considered at the stage of resonance as it develops strong relationship with its
customers who love bike rides by identifying their perception and their needs and implement in
its new vehicles.
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LO 2
P3, M3 Analyse different strategies of portfolio management, brand hierarchy and brand equity
management.
Analyze the organization’s brand portfolio strategy
Brand portfolio strategy focuses on managing large number of brands under the single umbrella
so that needs of customers must be fulfilled in an appropriate manner. It supports decision
making while introducing new or sub brand, extension of brand as well as brand positioning.
Hilton can use brand portfolio strategies for improving its brand equity in following manner.
Branded House: The strategy explains that organization itself is the brand and its associated
products and services are the subsets of the parent brand. Apple and Google are well known
examples are well known examples that uses braded house model. Subset brands of Apple are
Mac, iPhone, iTunes, etc. Considering the example of Hilton, it does not follow branded house
model (Koschmann and Sheth, 2015). The model is beneficial in enhancing the brand awareness
and it is also effective in minimising the overall advertising and marketing cost.
Figure 4: Branded house structure for Apple
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