Brand Management Report: Huawei, Apple and Brand Portfolio Strategies

This report, prepared for Optimum Impression Ltd., examines brand management principles, focusing on the "Brand is Power" concept. It analyzes the strategies employed by Huawei and Apple in building brand equity and managing their brand portfolios. The report delves into the steps involved in building a brand, including defining the target audience, formulating a brand mission, conducting market research, and outlining brand qualities. It highlights Huawei's successful strategies, such as investing in R&D and marketing, and Apple's use of Aaker's Brand Equity Model. The report also discusses the advantages and disadvantages of Aaker's model and explores brand portfolio management, emphasizing Huawei's globalization and customer-centric approach. The conclusion stresses the importance of branding for firms, advocating the use of marketing tools to effectively communicate with consumers and build brand loyalty.

Brand Management

Table of Contents
Introduction......................................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................7
Brand portfolio and hierarchy Management...............................................................................7
TASK 3..........................................................................................................................................11
Domestic and international partnership of the company...........................................................13
Disadvantages of the collaboration and partnership:................................................................14
TASK 4..........................................................................................................................................14
Measuring and managing brand value......................................................................................14
Conclusion.....................................................................................................................................16
References......................................................................................................................................18

Introduction
Brand management comes through the word brand which means developing a promise in
the eyes of its customers. It means defining the position of the brand and developing its market
hold over its competitors. In sense of marketing brand management means using various
techniques so as to increase the perceived value of a product or service. Effective brand
management builds loyal customers through positive brand association and has a positive effect
on the product portfolio. This report is based on Optimum Impression Ltd. Which is a
advertising organisation and wants to compose an article in companies marketing brochure with
the headline “Brand is Power”. It also shows how a brand is built and how a brand are organised
in portfolios. Also how brand are leveraged and various techniques for measuring and managing
brand value over time is analysed.
TASK 1
“Brand is Power”
Introduction
Optimum Impression Ltd. Is an advertising agency which is having its functions to
advertise the brands of different companies. The company is into this line of advertising the
product portfolio for many years. The companies marketing and advertising strategies includes
different prospects through which they make the brand of a particular company approachable to
the customers. Since Huawei has reached the company to advertise its brand in the western
market various approaches and the ways through which the brand can be advertised are
discussed below.
Brand is an identity symbol, mark, logo, name or a tag line of companies which is used
to distinguish their product from others. It can be defined as company promise to provide
consistently unique set of advantages, characteristic and service to its consumers. Brand equity
is a value and strength of a brand that is used to decide its quality. In other words, it can be said
that brand equity refers to an economic value that a company generates from a product with a
recognizable name when compared to general recognition. Company can create brand equity of
their products by making them memorable and easy to recognise and superior in quality from
their competitors (Annie Jin, 2012). Brand building is a most significant process which helps in
making of overall business strategy. This would help the brand to outshine and stand apart from
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the competition and to play a crucial role creating loyal customers so that objective of higher
sales and profits are achieved. Various steps are included in building a brand which includes:
Defining the target audience: For a brand it is important to figure out and define the
target audience. A brand should determine the nature of offerings which should be according to
the taste and preference of their target customers. They should identify the problems faced by
the target audience so that the offering could be made as per the requirements.
Work on brand mission: Companies managers, promoters and other internal members
should work together and make a mission statement defining the objective to create a brand
position. They should define that where they want to see the brand reach from the current
position. The company should embrace all the departments and use different promotional tools
and tactics so that they can make customers aware about their portfolio.
Conduct market research and study: This is one of the main steps that is included in
creating a brand image. This steps includes a market research that is to be done so as to build a
perfect brand for their competitors. This step helps in making a differentiation factor among its
rivals and it will further help in convincing the customers on how the brand is better than others
in the market and what value it will provide through its products and services offered to them.
Outline the qualities and formulate the brand voice: As the above study is
completed, the managers should outline the qualities and the benefits that the brand offers to the
customers as compared to the competitors by gaining competitive advantages. Also the brand
voice through professional, informal, technical promotion should be raised for achieving the
goals in Optimum impression Ltd.
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Main body
In the recent time frame it is very important for companies to apply different strategies
so that they are able to strengthen their brand equity. As in the world of technology it is seen
that there are various companies who have applied this brand equity strategy so that they are
able to achieve the target objectives on time (Asmussen, et. al., 2013). For example, the
company that has used this strategy to become one of the best player in electronic and
telecommunication industry is Huawei. This company is outperforming its business in context
of smartphone world. The company has obtained the 2nd position beating apple in the context of
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Illustration 1: Stages to build a Brand

global market share. The company has gained market share of 15.9% beating 12% worldwide of
Apple Inc. the company has used various strategies so as to enhance the brand equity.
The company has invested a huge amount in innovating and research they have invested
around 10% of its revenue on R&D activities which has helped them in gaining first mover
advantage over other companies. The company is consistent in empowering the customers who
have different prospective and requirements. They are innovating things with keeping in mind
customers view point. As it can be seen that Huawie has set up world’s first 5G phone network
in the year 2014. however there is risk involved in this strategy as if they fails to fulfil the
demands of the customers then the huge cost that is expended would impact them at most.
Another strategy of the company that has helped them in gaining the brand equity is
investment in marketing and communication. This strategy has paid them off in short run. In the
year 2017 because of its regorus marketing strategy they were able to break top 100 global
brand consultancy inter brand's. This was achieved by them continuous investment in improved
brand management.
The company has used different strategies so as to become best brand in the world. A
business organisation can use different models so as to improve their brand equity. Models such
as Aaker's Brand equity can be used to enhance the brand image. For this the company that has
used this Aaker's brand equity involves Apple Inc. This is the worlds most reputed brand in the
world in telecommunication and electronic industries (Balmer, 2012.). The company is
operating its business worldwide and has customer base who are in the elite class. The model
was developed by David Aaker and explained that brand equity can be seen as the quality of the
product that has been perceived and brand awareness which is considered as successful brand
strategy as per the model. There are four major elements in brand identity which are discussed
below:
Brand as product: This element consists of product scope, its attributes, quality of the
product and its uses. This helps the company in getting the attention of the customer through
providing the best brand which is most impactful in nature and is appealing to customers.
Brand as an Organisation: This consist of how the organisation works. Whether it works
in local environment or in global environment. This helps the brand to grow as this would help
them to grow its market share through working in a local or global sense.
Brand as a person: It specifies brand personality and relationship between its consumers.
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This makes the brand more personal and appealing to the customers. This also helps in
promoting the brand among the customers.
Brand as Symbol: This element specifies audio and metaphorical symbols and the
heritage of the brand that appeals to the customers more. This makes a brand as a symbol
among the people and through which they gets to know about companies portfolio.
The Aaker's model of brand equity has various advantages and disadvantages which are
discussed as below:
Advantages
 This helps in improving the perception of the product and its performance in the market
among the customers.
 This model helps in increasing the loyalty of the customers which would make the
customers satisfied.
 This model can be used as a leverage which would help the company to gain
competitive advantage over others.
 This model also helps company to differentiate their products from other competitors.
Disadvantages
 If in a market a competitor comes then it would become difficult for the company to
promote their product according to this model as their could be decline in the market
share.
 Due to more competition this model can relate to reduction in brand equity.
Conclusion
Branding of the product is most important factors for the firms like Huawie and Apple.
For their customer to recognise them they should brand their products and use different
marketing tools. Using marketing tool, it would be easy for them to effectively send the
message to the consumers that firm is innovating things for fulfilment of the demand of
customer's. This would help in creating customer’s loyalty and would also encourage
motivation among the customers. Hence branding is crucial for the firm and would help in
building a better brand image.
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TASK 2
Brand portfolio and hierarchy Management
It is a term under which all brands and brand lines of a particular company functions to
serve the wants of different customers. In other words, brand portfolios encompasses all the
brands that is offered by a single company under its name. This is generally formed as each
company has certain limitations beyond which they cannot operate and fulfil the needs of
different market segmentations. The advantage of having the brand portfolio is that management
can check on all the brands as a whole and can frame the policies with broader perspective.
Huawie is a renowned brand with vast portfolios of products from smartphones to the computer
hardware that they produce (Braun, Kavaratzis and Zenker 2013). In the present scenario Huawie
is leading and is considered as the fastest growing brand in the sector of telecommunication.
Hence it is important to identify and analyse the strategies that are used by the company to raise
their product and brand portfolio at a higher level. Different brand portfolio strategy of Huawei
that they take so as to make their products better is discussed below:
 Globalisation of brand: The company used the strategy of globalisation so that they will
be able to capture the international market. They used the strategy to enter into the
different markets through mergers and partnerships. The choice of entry into the market
was influenced through the future vision, capacity of the company and market conditions.
While simply focusing on cut price undifferentiated offerings they deployed cost
advantage and deliver advanced technology and customisation at minimum price. They
captured the market with innovative products at a lower rate and provide the products
with value for money.
 Consideration of consumer’s perspectives: Huawie main focus is always its customers
they always build their product keeping in mind the prospective of its customer
requirements. This has made their brand portfolio more diverse and large with giving the
customers variety of choice to select the product according to their preference. To build a
strong brand image company is taking feedback from its customers and their reviews so
that they can implement it in their future products.
Huawie should mitigate their policies so that they are able to effectively make their brand
more compatible with any type of risk that associates them. Also there are some issues which are
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associated with these strategies and should be considered so as to make an effective portfolio
management strategies. These issues involve the following:
 As the company is applying its long term thinking they would not be able to check their
future demand and changing business environment. As they will focus on future demands
of the company more they might not be able to fulfil the current demands. As in the case
of current business environment the companies such as LG, Samsung and Apple are more
focused on establishing the current demand for their products and as well as focusing on
the future innovations.
 As in the today's world consumer preference are incredibly changing and are influenced
by various factors. These changing factors would be risky for Huawie. As the company
will focus on changing the future strategies it will be beneficial for the customer's but not
from the companies point of view.
House of brands: This includes the company which is having a range of separate brand
names under a particular house. These brands are independent of one another with having
different audience, marketing and look and feel. A House of brands works well for many large
consumer companies.
Branded house: It is branded house that is most common form. This technique of the
company covers numerous benefits to the company as they would be able to make their brand
efficient, also confusion and competition are avoided through this type of branded house
approach and it also opens a greater success for the future offerings and new products of the
company.
Hybrid (or mixed) brands strategy: Hybrid is more than likely an ad-hoc plan of action
indicant rather than a pro-active strategical branding choice. This helps the company to use
different brand so that they are able to achieve the objective of increased sales and maximising
the profit of the company.
Brand Hierarchy
It is the process of summarizing the branding strategy by showcasing the number and
nature of common brand elements across the company’s variety of products. It is a useful means
of graphically portraying a company’s branding strategy (Du Preez, and Bendixen, 2015). It is
based on a simple sense that product can be branded in various ways depending upon how many
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existing and new brand elements are used and the ways in which they are combined for branding
one product. Huawie has different product lines with vague relationships which are associated
with each other which requires them to develop brand hierarchy strategies.
Huawei is serving its clients with various brands across the world and fulfilling different
needs of the customers with their different products. It is a difficult task for the company to
manage these wide varieties effectively so as to enhance brand equity and to provide a better
brand portfolio. For the company to develop and manage the brand hierarchy they should focus
on strategies such as:
 Audit of Brand Hierarchy: it is important for a company to determine their current status
in the global market. Audit of the brand is not dependent upon the size and the structure
of the company. The brand audit checks that how a business is performing, this is done
through assessment of various brands within the company. They should check their
present as well as future contributions. Also brand structure is a key criteria that should
be focused upon as this involves different touchpoints through which customer interacts
with the companies brand. This involves the logos, advertising websites and the customer
support service centre that must be always ready to help customers as and when needed.
 Principles of Brand hierarchy: it can be achieved through determining the principles.
These principles would help in setting the foundation for the brand. Some of the
principles in the brand hierarchy involves:
 They should identify the products and the brands in which the money must be
invested so as to achieve the objectives of the company. For example Huawie
HiSilicon, Honor etc.
 Company should focus on developing a new brand only if new product is desired
to be built. The desire should be proven and should contain essential element
which if not done would result into huge brand loss.
This would help the company to better implant its brand in the market and would also
help in achieving the desired results (Ertimur and Coskuner-Balli, 2015). This can be done if the
company is consistently investing in the innovation techniques as the industry is dynamic in
nature.
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Illustration 3: World wide quarterly data
(So
urce: IDC worldwide quarterly mobile phone tracker, 2018)
Brand equity management
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Illustration 2: Huawei Brand Hierarchy

Huawie is the second largest smartphone seller in the world and is renowned brand that is
serving in the different countries across world. Managing the brand is important as it is directly
linked with the sales and profitability of company. Different types of techniques which could be
use by company is given below,
 Advertising: Main moto of advertising is to create the brand awareness of product in the
market so that potential customers would get attracted. Unique and attractive advertising
should be done by Huawie so that people will recognise their products.
 Corporate social responsibility: Company should do their part towards society and
environment as they are using natural resources to earn profit from their working
operations. Huawei should constantly donate some amount of money to various needy
organisation like schools or orphanage so that they can also live healthy life. It assists
company to improve their goodwill and brand equity in the mind of customers.
TASK 3
Brand Leveraging is a strategy that is used as power of an existing brand name to assist a
company’s entry into a new but related product category. It is an essential form of introducing
new product in the market. It broadens the company’s product range by introducing additional
types of products and services. It is important for the organisation because :-
 It provides customers with a sense of familiarity by carrying positive brand image and
attitude.
 To avoid disappointment among the customers and to maintain the quality.
 More product portfolio means more offerings to the customers which will increase
turnover of the company.
Huawei could use effective methods for Brand Leveraging and Extension which are
discussed below:
Line Extension
This strategy is important if the firm wishes to introduce new variants like new or
updated models or development in products, etc. within the similar category under the brand
name (Gatti, Caruana, and Snehota, 2012). Basically, this is a multi branding strategy in which
firm markets one or more new products under an already constituted brand. For instance, the
mate series of Huawei where the firm introduces new products which focuses on pixels and
processors and tends to be ahead in comparison to other phones.
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It is beneficial for Huawei as this will help in cutting down and minimising the cost of
production and helps in retaining the existing customers and attracting new as well. As it will
result in intra firm competition between various different departments of the company which will
lead to the conflict.
Vertical Extension
it is a technique that is used by the company to extend the brand ahead into more superior
market segments or down into more valuable segments which are the common means of
attracting new customers. This will help them to operate by upmarket and downmarket. The
benefit of using this method is that, it assist the firm in contributing the premium variant of their
present brands to consumers of upper class segments or those who are choice conscious. This
technique involves the risk as customers might reject the extension and from this the parent
brand image will suffer. For prestige brands, firm often maintain a balance between availability
and scarcity of products so that people always aspire to be the customer and does not feel
neglected.
Huawei must proceed in Line Extension as it already has multiple segments of their
products and line extensions would help the firm in extending their market to their customers
worldwide. The company has various products that helps them to achieve the success in the
market through segmentation. The company follows the line extension policy which increases
the companies market approach to its customers.
Weakness of brand leveraging
Brand leveraging plays an important part in the success of organisation as if the parent
company has high brand awareness in the market then it will make a positive impact on the
brand which company is launching in near future and vice versa. There are various disadvantages
of leveraging which is given below,
 Poor consumer awareness: Strong brand name enjoys a high level of consumer
awareness and receive a high level of attention from the customers. Huawie use simple
name to distinguish their products from those of others. If the company experiences poor
customer’s awareness due to weaker brand name then rebranding of the product is
targeted (Hanna, and Rowley, 2013). They should use different version of abbreviation
so that the products that they are selling become easily known to the consumers.
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 Limits Expansion: The brands which holds a command on the consumer base can expand
their products portfolios. With new brand that is targeted in the market it enjoys the
brand royalty that it already has. If a brand that lacks the holding in the minds of the
consumers cannot lend strengths to new product so as to achieve the targeted market
segmentation.
So the company should focus on its leverages such that they are able to generate new
products as desired by the consumers and would be able to capture the market. The company has
partnership weakness that has to be aggressively checked and corrected so that they are able to
achieve the success in the market where its entry has yet not been made.
Collaborative and Partnership agreements
A most significant way that would help the company in achieving the target of
globalisation and maximum sales is entering into collaborative and partnership agreements in the
country where they want to expand its business. It is made by those companies who agree on
mutual consent to use the resources that are available with them. Huawie should have used this
practice with the firms which works in different field so as to diversify their product portfolio.
This would help them to ensure sustainability and growth in future also the company has
partnered with the manufacturing firms in the different countries where the quality is maintained
by Huawie. They have also partnered with the distribution channels which makes the company to
increase the sales turnover and to position the brand in the current market where they desire to
enter.
Domestic and international partnership of the company
Huawie has entered into the partnership with various companies in world so as to
promote their brand and achieve the objective of making the brand recognisable in global
competitive market. This way they have achieved the objective of making brand competitive
with other brands in world. Various partnership includes partnership with
 Bell Canada
 BT
 Clear wire
 Cox Communication
 Motorola
 Orange
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 PLDT
 Portugal Telecom
 PTCL
 T-Mobile
 Talk Talk
 Vodafone.
Disadvantages of the collaboration and partnership:
There are some disadvantages that are related to the collaborations and partnership which
are discussed as below:
 There exist a conflicts in the working style of the business that would make the company
more complicated to work.
 As there may be the conflict in the working styles of the people and the employees of the
company.
 Also the disadvantages to the timing may occur to the company which may make the
decision making of the company time consuming and the the pop up decision making
would be hampered.
Brand extension in the global market
As it is seen that Huawei is already branded in the market with a pre-defined image and
by using same brand name to market a different product category will help them to achieve the
objective. By using the new product category linked with the existing brand name, the market
reach of the new product can be made easy. This would help the company to make the brand
globally accepted which would also increase its market share in the world.
TASK 4
Measuring and managing brand value
Brand Value is the financial value or can be termed as monetary value of the brand and
considered as an asset to be disclosed in balance sheet. Business organisations works year by
year and satisfy their consumers by quality products at reasonable price. This continues work by
organisation helps to make a positive image in the market (Heding, and et. al., 2015). Positive
image of business brings a competitive advantage as trust of target consumer on the name of
company is high. This image of company have some monitory value and termed as value of
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brand. Brand value is considered as asset and shown in balance sheet of Huawei. This is the only
Chinese company to feature in the annual ranking of the world's most valuable brands 2018
compiled by Forbes. Huawei is ranked at 79th in the world for its brand value of US$8.4 billion.
Where as brand value of Samsung is US$203.4 billion and ranked at 7th position in worlds most
valuable brand.
Brand Awareness is the degree of consumer knowingness of a brand and its related
products is brand awareness. It is considered as a key step in promoting and marketing a product.
This is termed a most important part of launching a new product or service. It is the degree to
which consumers are associated with brand and its products. Vodafone has largest
telecommunication network in UK and its unique promotional technique grab attention of
millions of individuals. For promotions Vodafone brings Zoo Zoo in advertisements and posters
and share a small story that becomes a unique feature of company. This helps company to spread
awareness about brand name and also to recognise and recall brand name. O2 is a
telecommunication service provider also launches mobile phone with a unique feature. This
feature of O2 phones creates more security to data that is recorded in the phones. This features
help to protect valuable information from hacking. This unique feature of phones helps in
promotion and brand awareness gets spread all over the country.
Market share is the percentage of an industry or total market sales that is earned by a
particular company over a specific period of time. Market share is used as a measure of a
company's market leadership and their success in comparison to its competitors. This is used to
calculate size of the business in relation to size of industry. To calculate market share total sales
in terms of volume or in terms of value is taken as base. High percentage of market share reflects
companies dominance over other competitor. When comparison between market share of Apple
and Samsung is done. It represents that Apple possess largest market share in UK with 51.46% in
the year 2018. Whereas, Samsung has 28.86% market share and becomes second largest brand in
UK. Companies aim to attain large market share as it is connected with high profits. However,
having large market share involves increased risk as small change in business environment will
have huge impact on business.
Consumer Attitudes is a composition of beliefs, feelings and behavioural intentions of an
individual in context of marketing, usually for brand or retail store. Consumers attitude towards a
company or brand have a huge impact on success and failure of business. Consumers attitude
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towards a product is developed through advertisements, reviews, personal experience. Consumer
attitude differs as one consumer may find coffee testy or for other it is not good for health. To
attract more consumers towards a particular brand it is important to create a positive image that
attracts more and more consumer (Iglesias, and Bonet, 2012). The affect of beliefs that are made
on the mind of consumer is seen as they hold certain feeling towards brands or other objects. The
technique that is used for consumer attitudes includes:
Customer surveys:
This is done so that they are able to identify the level of satisfaction that is dertived in
the customers in belief of the product that they are offering to them. They can check the level of
satisfaction through customer surveys and the feedbacks that they give. A non satisfied customer
will lead to impact the business of the company in a negative way. The changes should be made
according to the desire of the customers (Kapferer, 2012). This will finally help in managing and
valuing the products of the company. As most of the consumers do not like to complete the
survey and most of them give non factual feedback's. There are certain disadvantages to this
approach as some times the customer may not give true feedback about the product or as there
are many customers it will not be easy for them to understand the requirements because every
customer will give different feedback.
Purchasing intent is the willingness of the consumer to purchase the product. It is
considered as the main task which will help the company in making the positive impact on the
desire of the customers. It can be predicted through different sources such as:
The funnel model:
It is the model that helps in identifying the purchasing thought of the buyer. This also
helps in determining whether there exist a relationship between the product design and its price.
This is the best way that helps Huawie in designing the strategy which would increase the sales
of the company. In this the survey is conducted through which the consumers are asked of which
brand that they consider to buy. There are certain disadvantages with this model is that as the
buying process is no longer linear so this doesn't helps in achieving the target. Also as it is seen
that this model is dependent on purchasing thought of buyer which is different and changes very
significantly due to this they would not be able to achieve the success.
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Conclusion
It is concluded that brand management is crucial form of strategy that is used by the
companies so that they are able to achieve the brand image in the market. It is important for the
company so that they are able to manage the brand equity for overall success in the market. The
model that include Aaker's brand equity model is an effective tool that helps in managing the
brand equity. Brand leveraging is very important for the companies who wish to enter into the
new market so that they are able to able to achieve the target of maximising the profits. At the
last techniques must be so as to measure value for the brand, market share and customer
attributes.
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IDC worldwide quarterly mobile phone tracker, 2018 2018. [Online] Available through:
<https://www.macrumors.com/2018/07/31/huawei-surpasses-apple-smartphone-
shipments-q2-2018/>.
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