Brand Management Strategies of Mark & Spencer: A Critical Analysis

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Brand Management
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Table of Contents
Introduction...................................................................................................................... 3
Activity 1...........................................................................................................................4
P1 Explain the importance of branding as a marketing tool and why and how it has
emerged in business practice....................................................................................... 4
M1 Evaluate how brands are managed successfully over time using application of
appropriate theories, models and concepts..................................................................4
P2 Analyze the critical components of a successful brand strategy for building and
managing brand equity..................................................................................................5
M2 Apply appropriate and validated examples within an organisational context..........5
P3 Analyze different strategies of portfolio management, brand hierarchy and brand
equity management.......................................................................................................6
M3 Critically analyse portfolio management, brand hierarchies and brand equity using
appropriate theories, models and framework................................................................6
Activity 2...........................................................................................................................8
P4 Evaluate how brands are managed collaboratively and in partnership both at a
domestic and global level..............................................................................................8
M4. Critically evaluate the use of different techniques used to leverage and extend
brands........................................................................................................................... 8
P5 Evaluate different types of techniques for measuring and managing brand value
using specific organisational examples.........................................................................9
M5. Critically evaluate the application of techniques for measuring and managing
brand value concerning developing a strong and enduring brand...............................10
Activity 3.........................................................................................................................11
Conclusion..................................................................................................................... 12
Reference list................................................................................................................. 13
Appendices.................................................................................................................... 14
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Introduction
In this jeopardised business environment, the organisations are continually struggling to
stabilise their market stability through the support of both profitabilities as well as the
productive tagline. Here Brand management is referred to an essential function, which
can be used in the organisation for increasing the product value in front of their
customers. As the recent customers are mostly brand conscious, the organisation has
to take significant stapes towards the branding. Therefore, the strategic initiatives are
required on the brand equity for the brand management support. The current report will
emphasise the case scenario of Mark & Spencer’s from the eye of a business analyst of
a London based consultancy firm named Beloved brands. Support and pieces of
evidence will be provided to understand the concept as well as the application of
specific branding strategies.
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Activity 1
The current activity is dealing with the branding as an essential tool for accelerating
business operation within the organisation like M&S in the UK. As per the case
scenario, Mark and Spencer’s is one of the largest retailers. Their stores are including a
wide variety of products such as clothing accessories for both men and women. Home
furnishing items, foot wares and the gift items are also a significant part of their product
(marksandspencer.com, 2018). As per the buzz scorecard report, M&S has rated 10.2
in 2017 and 2018; they are rated as 7.5 in regards to branding. Through this top rank
status of the organisation can be understood. Based on the outcome this activity will
evaluate the branding and its key components.
P1 Explain the importance of branding as a marketing tool and why and how it
has emerged in business practice.
The brand is primarily referred to as a simple term about the specific product of the
company. Through this symbolic term and concept, the company and its products can
reach to the mind of customers. In the case of M&S, branding is an essential tool for
sketching and applying the effective marketing strategy. Morgan et al., (2017) as
commented by Branding improves the recognition by creating an impression on the
mind of the customers. The branding of the Mark &Spencer's can be specified through
the application of the logo. The logo has relevance impression, and it can make the
market identity of M&S. Nandan and Dickinson (2015) also commented that it is a
marketing tool as the branding of the M&S has created trust, which can be understood
from the attractive market share in the UK market. For instance, the native organisation
place is not the part of this tool, but the logo of the M&S is known to the global
consumers and the competitors. Therefore, the logo and the quality can create trust
among the customers. Rosenbaum-Elliott et al., (2015) argued that marketing does not
only refer to the selling of products to customers. In this case, employees are also
responsible for maintaining the market reputation. In the socio-cultural scenario, while
the employees can feel like part of a renowned brand, they can feel proud to be a part
of it. This vibe can also motivate them to deliver better service.
M1 Evaluate how brands are managed successfully over time using application of
appropriate theories, models and concepts
Through the correct applicable tools, an organisation can manage their brands
successfully in both national and international market. The organisational brand of the
M&S can be managed through the implementation of the brand equity model. As per the
viewpoint of Scott and Walker (2017), brand equity can be derived from the perception
of the consumer regarding the product values. In the case of brand equity, there are two
models of brand equity, which has been adopted by the M&S. These models are
Akers’s model and Keller’s brand equity model.
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Figure 1: Theoretical application
(Created by the learner)
The first model is related to the five aspects of the brand such as brand associations,
quality, loyalty, awareness, and propriety. In the case of M&S this model supports the
customers to perceive the product value as well as service effectiveness. In addition to
this Keller's model is sufficient to control and monitor the consumer's perception.
Through the application of this M&S can sell more products with the support of strong
brand equity.
P2 Analyze the critical components of a successful brand strategy for building
and managing brand equity
There are various approaches, which have been used by the M&S to build as well as
manage their brand equity. It can be said that such a strategy will help to shape the
responsibilities of branding. The critical components of their successful brand strategies
are objectives, employee involvement, positioning, identity, promise, personality,
messaging, as well as communication. As commented by Allman et al., (2016),
employees are the main backbone of the organisation. The employees of the M&S are
competent and also can apply specific strategy towards the branding. Objectives are
goals of the M&S, and the employees have a proper idea regarding the job role, which
will be a contributive factor towards the organisational development. The mission and
vision statement of the M&S is to deliver the best outcome to their customers. Through
creating a positive impression among the customers the organisation development
growth can be achieved. In this case, communication and massaging is an essential
factor of branding to deliver the core message in the global platform.
M2 Apply appropriate and validated examples within an organisational context
It is evident that the organisations are primarily adopting specific brand management
strategy for ensuring the development and the growth of the brand. M&S has adopted a
brand strategy to connect the customers emotionally. They have developed this strategy
by pointing out the battle points between them and the other competitors in both the
national and international market. For instance, Tesco and Sainsbury is the major
competitor, where M&S has reached to the heart of every customer through a marketing
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plan, promotional activities and other resources. Their branding management strategy is
logical and practical, which can be helpful for companies to attain growth as a
sustainable level. Other competitors like Tesco has taken an effective pricing strategy to
make their brand more acceptable, the M7S has this strategy but often failed due to
high spending cost. Therefore, still, improvement is required in the overall branding
strategy. They have to see different aspects of the branding.
P3 Analyze different strategies of portfolio management, brand hierarchy and
brand equity management.
As per the viewpoint of Liu et al., (2014), brand portfolio management is related to the
effective, coordinated process, which has helped the organisation to avoid confusion
with regards to potential customers. In the case of M&S, the organisations were
overlapping and investing in the productivity growth and the marketing effort as well as
development through brand multiplication. Novenkova and Kalenskaya (2015)
commented that investment and overall management process could be achieved
through the support of this structured portfolio. In the case of the Mark & Spencer's, the
following strategies are adapted to ensure effective relationships within the market.
Branded House: It has been visualised that this is a cost-effective strategy in the retail
industry. It has been adopted in the market for building a clear brand image. The M&S
has shown that the adoption of this strategy is focused on both brands and sub-brands
it can make the name more recognisable within the competitive market.
House of Brands: In case of branding, this strategy is referred to the promotion of sub-
brands of the parent company rather than promoting the corporate brand. However, this
strategy required a sufficient amount of investment to facilitate proper functionality
employing messaging and brand elements.
On the other hand, brand management hierarchy is related to the brand name as assets
of the organisation. The hierarchy is categorised on three levels such as individual
branding, family branding, and the Modifier level. As per the opinion of Roll (2015), the
individual branding strategy is to provide unique products as a part of the portfolio. It is
evident that the brand ensures useful customisation, which can support the marketing
strategy. The last strategic available portfolio is brand equity such as Akers equity
model and Keller's model. Through the application of the M&S can create independency
on perceived quality, brand loyalty and associates.
M3 Critically analyse portfolio management, brand hierarchies and brand equity
using appropriate theories, models and framework
It is evident that portfolio management can be applied as an essential technique for
aligning the effective brand recognition and strategic goals. From the managerial
perspective of M&S, structural alignments are referred to specific theories, which can be
integrated with the implementation. In the portfolio management, resource allocation is
aligned with innovative performance, which can increase the product sales.
In the brand hierarchy, AIDA model can be applied. Todor (2014) commented that it is
related to the attention, interest, desire as well as action, which can create a positive
relation towards the advertising strategies of the M&S. On the other hand, brand equity
is related to the brand image scales. These scale items are cognitive, sensory and
another effective dimension. In the business process of M&S, CBBE model or cross-
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validation of all Consumer-based brand equity is applied to drive the customer equity
towards the retail brand.
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Activity 2
This activity deals with the final report after the conceptual understanding of brand
management principles as well as theories. In the current report, further evaluation will
be introduced towards the branding strategy.
P4 Evaluate how brands are managed collaboratively and in partnership both at a
domestic and global level
Brand extension can be leveraged in both domestically and internationally. As per the
viewpoint of Davin (2017), customers are accepting the extension if the M&S can
ensure the values and aspiration. The methodological approaches are as follows.
 Economic approach
As per the viewpoint of Elliott et al., (2015), this approach is related to the
organisation, which can control and manage the brand within 4Ps determination
such as price, Promotion, place and the products. This can be taken as the chief
mechanism for creating the brand equity.
 Consumer-based approach
For the retail and another industrial sector, the customer-based approach can
determine the assumption, where the brand can be stable in the customer’s
mind. This branding approach is entirely based on the changed perception of
current customers.
 Identity approach
To manage the behavioural and unified identity, visual perception of the
customers is important. It is supportive for them to increase corporate branding
with the available theoretical domain in brad management.
 Community approach
This approach is also a significant factor for analysing the brand from a cultural
context. The iconic brand can be created effectively through this approach,
where the global market has a significant impact.
M4. Critically evaluate the use of different techniques used to leverage and
extend brands
In the previous section, the discussions have been given on the brand strategy of Mark
&Spencer’s. However, still, the lack of understanding has been reported on the plan an
extension of the brand. There are effective techniques for using the brand extension as
well as leverages. This evaluation is as follows:-
 Self Service
It is evident that organisations have to pay attention to their products for building
brand value. Therefore, the product should fulfil the desired quality and the
product supply. Cho et al., (2015) commented that third-party organisation
support need to be minimised for the cut of the terms of supply and production.
Therefore, a large amount of money can be saved.
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Figure 1: Leveraging Strategy
(Source: Trigeorgis and Baldi, 2016)
 Companion product
In case of M&S, the idea of selling a companion product can be effective. The
organisation has to take an effective step in both manufacturing and selling as
per consumer usage.
 Exploring different market
M&S has taken a significant approach towards the branding, but the foreign
market may create a negative impact on the organisation. For instance, In China,
the M&S brand is not well, and that is the major cause of market failure.
Therefore, branding value has not been properly created. To extend the brand,
the organisation has to explore the status of other markets before expanding
strategies over there.
Therefore, the used approaches to brand value will be effective here to eradicate
marketing issues. The techniques can represent the process of line extension, co-
branding, and brand stretching and multi-brand strategy. The line extension is targeting
the consumer subsets. Çifci et al., (2016) commented that it could securely satisfy the
customers. A multi-branding strategy is effective here to deal with distinct market
segments.
P5 Evaluate different types of techniques for measuring and managing brand
value using specific organisational examples.
In the current business environment, the retail marketers are utilising a different type of
technologies for the measurement of the brand values, which is required to develop the
business as per consumer perception. The following are the main as well as different
techniques to manage the brand value for Mark & Spencer's.
Brand management techniques
 Surveys
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This management technique is most effective to understand brand value as well
as recognition. It is related to the individual perceives among the organisation. In
the case of M&S, the survey is effective, and it ensures the brief knowledge,
where the company can be well recognised among the consumers. Therefore, a
certain change in the custome4r perception can be easily evaluated through this
technique.
 Social media
In the retail marketing process, social media plays a significant role in measuring
the brand values of the company. In the current environment, the customers
have the significant tendency to use the social media platform. Therefore, from
this platform, customers can share their view and provide feedback. It can
support the organisation to shape their branding tactics.
 Strategic analysis
In this technique, M&S can get awareness regarding the brand strength and
weakness. This supports the organisation to develop a specific strategy, which
will be effective for market success.
 Industry analysis
It is also required for the organisation to measure the overall brand value. In this
case, M&S can analyse other existing brands such as the status of Tesco and
Sainsbury. It will be effective for the organisation to pursue competitive
advantage.
Approaches towards the brand value
In this case, three types of approaches are linked with each other such as the market
approach, cost approach as well as income approach. According to d'Amato (2015), the
income approach is related to the ensuing method of economic life, where the brand
can be measured. Through the estimation of the income can be reflected upon the
discount rate. This can be utilised by the company to ascertain both current and future
brand value. In the case of M&S, managers are providing multiple products to the
customers. Their branding strategy is linked with the brand extension, vertical extension
as well as a line extension. The giant organisation like M&S may invest more money for
the business stocks. The extension is helpful here for the organisation to explore new
possibilities.
M5. Critically evaluate the application of techniques for measuring and managing
brand value concerning developing a strong and enduring brand.
It can be said that the income approach can be categorised as proposed valuation
techniques, which have shown the capability to recognise the gap in both brand practice
and market cycle. As per the opinion of Iglesias et al., (2017), the market approach has
included patience towards the patent portfolio valuation. In the case of the M&S, three
significant ways are economic model valuation, comparable transaction valuation, and
valuation determination. In addition to this concept, the cost approach can be effective
towards valuing productivity loss. It ensures the M&S to improve the alternatives for
human capital. Therefore, this activity emphasised that the basic valuation method can
include both income approach as well as comparison.
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Activity 3
This activity is dealing with the critical evaluation, which uses the justified evidence for
demonstrating the comprehensive understanding. For the M&S this strategy can reflect
the degree of recommendation. The strongest report of the M&S is based on the
strategy to provide benefit to the customers. To provide the beneficial outcome, M&S
status can be reported in on the high rank. They have taken digital technology support,
which is positive for online marketing. However, it has been visualised that strategic
positioning is the weakest report. It has been visualised that service, quality and
affordability of M&S is under the influence of competitors. The current strategy of the
M&S is effective but not well suitable in comparison to the other competitors. The
organisation has to come up with new products in the areas of food, cloth and the
services. They have to obtain the consumer feedback for preceding the market
expansion effectively. From the failure in the Chinese market, they have to understand
the perception of customers before penetrating a new market. The organisation has to
do the overall advertising and marketing innovatively. Through this brand value can be
created effectively with the support of the technological approach and the evaluative
application.
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