Brand Management of Marks and Spencer: A Comprehensive Analysis

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Brand Management

Table of Contents
Introduction......................................................................................................................................1
Activity 1.........................................................................................................................................1
P1 An explanation of the importance of branding as a marketing tool, why and how it has
emerged in business practice.......................................................................................................1
M1 You will need to use examples and evaluate how brands are managed successfully over
time using appropriate theories, models and concepts................................................................2
P2 An analysis of the key components of a successful brand strategy for building and
managing brand equity................................................................................................................2
M2 providing appropriate and validated examples within an organizational context.................3
P3 An analysis of different strategies of portfolio management, brand hierarchy and brand
equity management......................................................................................................................3
M3 with a critical analysis of the portfolio management, brand hierarchies and brand equity
using appropriate theories, models and frameworks...................................................................4
Activity 2.........................................................................................................................................5
P4 An evaluation of how brands are managed collaboratively and in partnership both at a
domestic and global level............................................................................................................5
M4 you should aim to critically evaluate the use of different techniques used to leverage and
extend brands...............................................................................................................................5
P5 An evaluation of different types of techniques for measuring and managing brand value
using specific organizational examples.......................................................................................6
M5 Include a critical evaluation of the techniques for measuring and managing brand value in
relation to developing a strong and enduring brand....................................................................6

Activity 3.........................................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

LIST OF FIGURES
Figure 1: Components of brand strategy.........................................................................................4
Figure 2: Keller's brand equity model.............................................................................................6

Introduction
The concept of branding is regarded to be most important as it helps in differentiating one
specific firm from those of competitors in the market. Further, in the modern era the level of
competition is quite high in the market due to which it has become necessary for every firm to
indulge into the practice of developing effective brands (Abrahams, 2016). Effective brands
directly represent how efficient is firm in satisfying need of its target market along with meeting
the expectations of the customers also. In short, with successful brands it is very difficult for any
business to sustain in the market for longer time period.
The present study carried out is based on the organization selected Marks and Spencer (M&S)
that operates in the retail sector of UK. The company is well appraised in the market for wide
range of retail products that it offers to its target market. The report focuses on branding tactics
of Marks and Spencer, the tactics employed to manage brand, key components of successful
brand strategy etc.
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Activity 1
P1 An explanation of the importance of branding as a marketing tool, why and how it has
emerged in business practice
The concept of branding is regarded to be most significant as it reflects how business enterprise
is successfully operating in the market. Marks and Spencer conduct its business operations in the
market where level of competition is high and in this case the firm strictly focuses on managing
and developing its brand (Bellin, 2016). Branding is important as marketing tool as it helps in
enhancing the publicity level of the firm at global level and in turn large number of customers
can easily know about its products and services in the market. Further, branding generates new
customers where it is a well-known fact that strong brands directly helps a lot in attracting the
customers of the competitors and in turn it becomes one of the main reasons behind success of
the firm in the market. The company like Marks and Spencer has to apply lesser efforts in
marketing as its brand is well established and it helps a lot in customer engagement also.
The importance of branding has emerged in the business practice due to rising competition and
in turn the well-established retail brands such as Tesco, Marks and Spencer, Aldi, Lidl etc are
strongly focusing on building strong brands for their long-term survival and growth also. In past
when the level of competition was moderate and customers were less brand conscious then at
that time this concept was not highly developed (Bieger and Sonderegger, 2017). In the modern
era, every individual is brand conscious and they prefer to purchase products from the brand that
is superior and can provide them high experience also. Through effective branding practices only
the company like Marks and Spencer has managed to increase its market share, customer base
and in turn the firm is able to grab the opportunities present in the business environment.
Effective branding strategy has reflected the quality of the M&S products along with the
experience that the company can eaily provide to its target market. Along with this, branding has
also supported in effective promotion of the products. Therefore, the entire analysis represents
the importance of branding as marketing tool and the way in which it has emerged in the
business practice also.
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M1 You will need to use examples and evaluate how brands are managed successfully over time
using appropriate theories, models and concepts
Managing and maintaining brand for long time period is considered to be highly significant and
in turn it assists Marks and Spencer to manage its overall position in the market. In case of well-
established brand like Marks and Spencer the company manages its brand by knowing the
perception and attitude of its customers towards its brand in the market. For instance, if
customers are not satisfied with the product quality or other attributes then in such case the
company concentrates more on managing and developing its brand (Buil, et al. 2016). The
management focuses on delivering additional value to its customers along with obtaining their
response so as to know whether they are satisfied with the brand experience or not.
One of the best theories associated with brand management is value-based brand theory where in
accordance with this theory the value-based brands focuses on building the long term customer
value. The success of the particular brand depends on the overall value that it can deliver to its
target market. For instance, if Marks and Spencer focus on delivering high value to the
customers then in such case the level of brand loyalty will enhance and it will help in managing
brand properly.
P2 An analysis of the key components of a successful brand strategy for building and managing
brand equity
Different components of successful brand strategy are present that needs to be considered by the
firm so as to stay ahead of its competitors in the market. Further, brand promise is one of the
most crucial components that help in building and managing brand equity. This component
represents the promise made by the firm such as in case of M&S the promise is to deliver quality
products to the target market and meeting this promise is kept on priority basis. For instance, if
the organization is unable to focus on the brand promise then it leads to decline in the level of
customer satisfaction (Calantone and Nguyen, 2018).
The next crucial component is brand positioning where it represents how the company can
positioned itself in front of its target market. In case of Marks and Spencer the firm has
positioned itself on the basis of product attributes and quality. For building and managing brand
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equity the brand positioning is done in proper manner and it is altered timely so as to retain the
loyal customers of the firm. One of the main reasons behind effective positioning is that it
supports company in managing the level of competition prevailing in the market and assists in
becoming leader also.
Brand values is also another main component of successful brand strategy where it the key brand
values undertake trust, honesty, respect etc (Chernev, 2018). In case of Marks and Spencer also
the company has undertaken large number of values such as confidence, trust, respect,
understanding etc. By indulging into the right brand values the company has managed to meet
with the expectations of its target market and in turn building and managing brand equity has
also become easy for the firm in the market. Time to time new brand values is added by the firm
that reflects the efficiency of the firm to satisfy need of its target market in the best possible
manner. Hence, all these are the main components of successful brand strategy for managing and
building brand equity in the market (De Mooij, 2018).
Figure 1: Components of brand strategy
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Brand
values
Brand
positioning
Brand
voice
Target
audience

M2 providing appropriate and validated examples within an organizational context
Different components of successful brand strategy have been discussed below that helps a lot in
enhancing the brand equity level. For example, one of the main components is brand positioning
that represents the way through which the firm has positioned itself in front of its target market.
The company like Marks and Spencer has positioned itself on the basis of product attributes, the
experience that it can deliver to the target market etc. Another example is Tesco where brand
positioning is done on the basis of price of the products in the market. This reflects that brand
positioning of the firm is most crucial and it helps a lot in managing and enhancing the business
performance in the market where operations are being carried out (de Noronha, et al. 2017).
Brand perception is another crucial component for instance, the perception of M&S customers
towards its brand is positive and they prefer to recommend brand to others in the market.
Maintaining positive brand perception in the market is very important in the market and through
this business performance can be enhanced in the best possible manner. The example of another
component target audience is the customers of the firm like in case of M&S the customers of the
firm are households and other individuals.
P3 An analysis of different strategies of portfolio management, brand hierarchy and brand equity
management
Portfolio refers to the different sub brands that are managed by the firm in order to carry out all
its operations successfully. One of the main strategies that can be undertaken by Marks and
Spencer for portfolio management, brand hierarchy and brand equity is conducting external
analysis. With the help of external analysis, it is possible for the firm to know where its brand
stands in the market, customer perception towards its brand in the market and form of tactics that
plays crucial role in the brand management (Dessart, et al. 2015). Portfolio management is
possible by obtaining response of the customers in the market and in turn it can be known
whether customers are satisfied with the sub brands of the firm or not.
Another strategy for brand hierarchy management is monitoring and communicating with the
staff and other stakeholders. In case if the management properly communicates with all the
parties associated with the firm then in such case it will become easy to accomplish the goals
associated with portfolio management, brand equity and brand hierarchy. All these areas are
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quite important. Through proper communication it is possible for M&S to manage its portfolio
and in turn the brand equity management is also possible which is most important in case of the
firm (Drori, 2015).
Analyzing the market trends and knowing the customer satisfaction level. This strategy can also
work a lot and through this it will be possible to know whether the portfolio of the firm is
managed in the proper manner or not. Apart from this, in case when the organization does not
comply with the market trends then in such case managing brand equity and hierarchy will be
difficult for the enterprise (Erdem and Swait, 2016). Hence, this strategy can also work a lot for
the well-established brand like M&S in the market.
M3 with a critical analysis of the portfolio management, brand hierarchies and brand equity
using appropriate theories, models and frameworks
Selecting appropriate technique for managing portfolio, brand equity and hierarchy is very
important and in turn it can play crucial role for the firm. As per view of Ertimur and Coskuner-
Balli (2015) conducting external analysis helps a lot in knowing the actual position of the brand
in the market and the actions required for managing portfolio along with the brand equity also.
However Govers, et al. (2017) argued that sometime many companies do not focus on external
analysis and this is the reason due to which they have to face issues in managing portfolio along
with the brand equity also that is most important. The models of brand portfolio are effective
enough in understanding the real importance of this concept. The house of brands and branded
property are the key models. The house of brands model mainly indicates portfolio where the
brands have different names and the key advantage of this model is that failure of any one single
brand does not affects other. The second model of branded property highlights the use of one
single brand across all the category. In case of M&S, the firm operates with the help of single
brand. As per view of Heding, et al. (2015) the Keller’s model of brand equity is also effective
where it undertakes different stages such as identity, meaning, response and relationship.
Through this model it is possible for M&S to raise the overall value of its brand in the market
like the company can know present performance of its brand, brand meaning, how its brand is
responding and accordingly its brand can be managed easily.
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Figure 2: Keller's brand equity model
(Source: MindTools, 2017)
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Activity 2
P4 An evaluation of how brands are managed collaboratively and in partnership both at a
domestic and global level
Managing brands through joint collaboration is regarded to be most effective and significant
also. Further, in case of large and well-established brands operating in the market the brands are
managed through collaboration with other parties operating in the market. In case of Marks and
Spencer the firm conducts its operations worldwide and due to this reason, the firm has
collaboration with other parties that helps in brand management (Heine, et al. 2018). At global
level the different marketing and branding agencies provide assistance to the firm in terms of
managing brand in the different market. The key responsibility of such parties is to promote that
brand and developing awareness in the market. The company like M&S has obtained large
number of benefits through partnership and this is the main reason due to which the brand of
M&S is quite famous in every market where the operations are carried out. At domestic level
also i.e. within the market of UK partnership is done with the local agencies that assist M&S in
managing its brand and meeting with the expectations of its target market in the best possible
manner (Hill, et al. 2015). No doubt, the partnership agreement for managing brand is costly for
the firm but on long term basis it provides large number of benefits to the business in the market.
This is the main reason due to which M&S prefers to enter into partnership with different firms
or agencies that supports in brand management. In case if the other party that is managing brand
is not at all effective then in such case it can have negative impact on the overall brand image of
the business also. Hence, through this it can be evaluated that brands are managed in proper
manner in partnership.
M4 you should aim to critically evaluate the use of different techniques used to leverage and
extend brands
The concept of brand extension is all about developing the brand in the market for its overall
growth. Further, different techniques are present through which brand leverage and extension is
possible in every possible manner. Brand extension can be in the form of line or through brand
diversification also. In case if line extension is selected as one of the techniques then it will be
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