Brand Management Report: Branding Strategies for Next Plc

This report provides a comprehensive analysis of brand management, using Next Plc as a case study to illustrate key concepts and strategies. It begins with an introduction to brand management, emphasizing its importance as a marketing tool and examining the components of a successful brand str...Read More

Brand
Management
1

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Importance of branding as a marketing tool, analysing components that helps to have
successful brand strategy, evaluating how brand is managed successfully over time using
theories and models................................................................................................................3
TASK 2 .........................................................................................................................................8
Critically analyse brand portfolio management and brand portfolio management illustrating
brand hierarchy of brand using appropriate theories, models and frameworks.....................8
TASK 3..........................................................................................................................................10
Critically evaluate different techniques of brand extension and brand leverage to expand brand
over time in both domestic and international market and evaluate collaborative partnership10
TASK 4 .......................................................................................................................................12
Critically evaluate techniques to measure brand value, brand awareness, market share,
consumer attitudes and purchasing intent. Evaluate brand equity and audit and brand tracking
techniques.............................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................15
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INTRODUCTION
Brand management is considered as a process which is used by a company in order to
identify core value of a particular brand as well as reflecting that among the targeted audiences.
In this brand can be identified as a person, product, corporate and service. It is also defined as
analysing and planning related to perceived value of brand at potential and targeted marketplace.
For developing as well as maintaining effective brand management company need to create
proper relationship with potential and targeted customers so that they get attracted to products as
well as get encouraged to buy it (Balmer and Chen, 2017). There are several elements of brands
such as packaging, prices, logo, designing and many more.
Organisation selected for respective report is Next Plc, whose founder is Joseph
Hepworth and he found it in 1864. The head office of respective firm is located at England,
United Kingdom. They are operating in retail sector with more than 500 store around the world.
The main aim of developing this report is to understand about significance of branding method
as a marketing technique with its several components that may used for managing and
developing effective brand equity. Moreover, report will also include several strategies related to
management of equity, portfolios as well as brand hierarchy. It will also determined different
national and international partnership and collaboration of respective form as well as it will also
include techniques that are used to measures and manage company's brand value.
TASK 1
Importance of branding as a marketing tool, analysing components that helps to have successful
brand strategy, evaluating how brand is managed successfully over time using theories and
models
Brand
Brand is considered as term, design, name, logo, image and several other features that
help a person in identifying seller's or specific company's products and services (So and et. al.,
2018). Brand is used for various activities related to marketing, business recognition and
advertisement.
Importance of Branding
There are several benefits gain by a company if they develop as well as maintain
effective branding activities. In respect of Next Plc, importance that they gain through branding
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are it increase business identity, develop value of customers, enhance sales, create brand
differentiation. Along with this it will also help respective retail company in developing
awareness about their products among potential as well as targeted customers.
Brand Equity
Brand equity is considered as commercial value in respect of potential customers
perception that related to particular brand name of a specific products or services (Zhang, 2015).
This is generally used in marketing industry in order to describe value of well known brand.
Their is specific stage which a company may adopt in order to develop and grow brand equity,
explanation of those stages in respect of Next Plc are given below:- Outlined how you want to be detected- According to this company need to develop
products and services according to requirement, preference, experience and taste of
customers. In respect of Next Plc they need to understand likeness of customers and then
design products accordingly. Organise business based on promise- According to this stage company management
need to develop their brand accordingly which they shown or promise to market. In
respect of Next Plc they promise to deliver quality and stylish fashion wear, so they need
to develop products accordingly. Communicate promise- At this phase company need to develop strategies in order to
fulfil promise of customers (Abrahams, 2016). In respect of Next Plc, they need to come
up with stylish and fashionable products in order fulfil promise which they communicate.
 Be consistent- In respect of this stage, company need to develop products and services
according to need and demand of targeted and potential users. In respect of respective
clothing retail store they need to design more attractive, fashionable and stylish clothings
in order to build brand image as well as value at marketplace.
Role of Marketing Department
At every company marketing department is essential because they play numbers of
important role through that firm can develop brand image in the mind of targeted and potential
customers. In respect of Next Plc, there are several role are played by marketing department that
help in creating brand equity, from which are some role are mentioned below:- Awareness- Through marketing department, Next Plc able to develop awareness in the
mind of customers related to their products in effective and successful manner. In order
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to conduct this, respective department adopt numbers of promotional channels such as
social media, digital media etc. Differentiation- Next Plc is operating in clothing retail market and for them it is
necessary to differentiate their products or offering from their competitors. In this respect
marketing department must conduct evaluation of market and then develop products
accordingly which are different or unique from other competitors. Value- Marketing department plays an essential role in creating value of products and
services so that customers will pay high price for that (Batey, 2015). In respect of Next
Plc marketing department conduct several practices in order to develop or create value of
brand in the mind of customers.
 Accessibility- In order to increase sales, it is essential to available products every timer so
that it will create image in customer's mind. In respect of marketing department of
respective company they conduct practices for creating awareness about existing as well
as new products.
There are several strategies which are used by Next Plc in order to improve or strengthen
their brand equity, reinforcing, brand extensions and revitalising brand by adopting innovation,
these factors are mentioned below:-
Brand Equity Strategy
In order to strengthen or improve brand equity, Next Plc may adopt a model i.e. The
Keller Customers Based Equity (CBBE), this model is design in pyramid structure which include
four steps, explanation of which are given below:- Brand Identity- It is considered as factor which help in comparing with the competitors
on the basis of feature and offerings. In respect of Next Plc they need to adopt innovation
as well as creativity on regular basis in order to increase their brand identity. Brand Meaning- Next stage is related with developing imagery through the performance
in the mind of customers (Borkovsky and et. al., 2017). In respect of Next Plc, it is
essential for them to develop those offerings which help them in creating meaning at the
marketplace in successful manner. Brand Response- This stage show feeling of customers in respect of brand and their
offerings. This will also consider feeling as well as judgement of end users which help in
creating brand value at high level which can be possible by providing quality customers
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experience. For which respective company need to offer quality fashionable and stylish
products or clothings.
 Brand Relationship- It is the last phase of CBBE model at which relationship of
customers and company will be determined in order to get positive result or outcome.
Brand Extension Strategy
There are numbers of ways through which Next Plc can strengthen or improve their brand
extensions, from which some main strategies are given below:- Measurement of Brand Equity- It is considered as strategy through which respective
company can measure their brand equity for identifying its impact on future time. Measurement of Potential Risk- In order to adopt brand extension, it is essential to
identify its positive as well as negative impact so that decision can be developed
accordingly (Buil, Catalán and Martínez, 2016). In respect of Next Plc, they must use this
method for analysing all risk associated with extensions in successful way.
 Leverage from business core competency- According to this it is essential for firm to
analyse their core competency in order to understand their skills and effectiveness. In
respect of Next Plc, by leveraging their core competency in order to create competitive
advantages at marketplace.
Brand Reinforcement Strategy
Brand reinforcement is considered as procedures of developing brand equity by abidance
brand for the existing as well as new customers. This can be possible by several ways such as
introducing new products with unique features, develop products according to requirement of
customers and many more (Buil, Martínez and Matute, 2016). The Next Plc can adopt brand
awareness as well as brand image in order to develop brand reinforcement strategy, which are
describe below:- Brand Awareness- Next Plc may adopt numbers of channels in order to promote as well
as aware customers in successful manner which lead to increase in sales and market
value.
 Brand Image- This factor show the difference one core brand from its competitors as
well as it aid in creating uniqueness in the mind of potential customers. In respect of Next
Plc they need to offer quality and unique products as that will help in creating strong
brand image in customer's mind.
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Brand revitalization Strategy
Brand revitalization is considered as strategy which is generally adopted by a company
when they are at high stage of maturity or there is decline in profit. This strategy also help firm
in bringing back product at market through additional innovative and creative features in that.
There are several strategies which Next Plc may adopt from that some are mentioned below:- Rename brand- At this stage respective firm will change the name of product or brand
which is declining (Cooper, Merrilees and Miller, 2015). Then they will come up with
new name and offerings in effective way.
 Reaching Out to Community- Next Plc need to based their brand on the basis of
community as that will help them in revitalise their image as well as it will also reviving
lagging sales or revenue in successfully manner.
There are also several method or strategies which can be adopted by Next Plc in order to
over come from Brand crisis:- Planning- According to this Next Plc need to plan each and every activities in effective
manner for minimising crisis. Acknowledge with problem/issue and apologise- In respect of this stage firm need to
deal with issues as well as apologise for reducing crisis situation effectively. Getting outside help- Next Plc may also take outside help in order to make more
effective decision related to issues or situation. Informing- According to this stage, it is essential for respective company to
communicate every situation to high authority in order to develop decision for achieving
set objectives (Di Martino and Jessen, 2016).
 Monitoring then responding- It is the last stage at which manager will monitor that all
the activities are performed properly in order to get positive outcome successfully.
Moreover, it is essential for Next Plc to interact with their customers as that will aid them
in attaining their predetermined goal as well as objective. For this, respective firm may adopt
numbers of technology such as social media, online awareness or feedback, digital media and so
on.
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TASK 2
Critically analyse brand portfolio management and brand portfolio management illustrating
brand hierarchy of brand using appropriate theories, models and frameworks
Portfolio Management
Portfolios Management is determined as science and art of formulating decision related to
several aspects such as investment policy, assets allocation for individual and entities, investment
goal, risk and many more. Brand management is considered as marketing function that utilises
few techniques or strategies in order to increase brand over a specific period of time or product
line value.
Brand Portfolio Strategy
It is also known as Umbrella where all brand line are incorporated along with specific
entity which serve numbers of market segment. In this every single brand conduct their own
business activities according to industry (Du Preez and Bendixen, 2015). There are numbers of
advantages gain by a company through this strategy as they able to utilise their resources
properly in order to improve their brand image at the marketplace. In respect of Next Plc they
may conduct trademarks of their products in order to improve image at the competitive
marketplace properly. For which they may opt some methods or strategies, which are mentioned
below:- Active portfolio management- It is considered as strategies which are generally utilised
by manager and other entities who can generally bear risk at marketplace as that help in
gaining effective result. This strategies is normally adopted by well known brand which
have huge shares at marketplace. So, Next Plc can adopt this strategy in order to beat
competition at market and increase shares.
 Passive portfolio strategy- It is considered as those entities of company who are not
interested in taking risk but they want to adopt development for improvement (Heding,
Knudtzen and Bjerre, 2015). In respect of Next Plc, respective strategy is not suitable as
it not provide much advantages to them for leading or improving brand at marketplace.
Hierarchy Management of Brands
It is also known as brand architecture which considered as brand framework with entities.
Through this firm can explain the ways or strategies through which one company can be separate
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from competitive one. In order to this Next Plc may adopt brand portfolios model which is
describe below:- Branded properties- According to this brand manager will use only brand for the all
categories of products and services. Through this respective company able to concentrate
on all brand as well as it will also increase scale.
 House of brand strategy- In respect of this strategy company need to promote their
brands separately in market (Javid, Monfared and Aghamoosa, 2016). For this firm need
wide range of financial sources so that they can conduct individually branding. In context
of Next Plc, their manager can adopt respective method as they have several brands such
as next retail Ltd., next distribution Ltd. Lipsy London etc. for increasing their sales and
market value.
In order to develop hierarchies Next Plc may adopt several strategies, from which some are
mentioned below:- Corporate branding- It is considered as marketing practices which is adopted by a
company in order to promote one entity which is well known at marketplace. Through
this a company can enhance their performance as well as it will also help in enhancing
sales and profitability ratio.
 Umbrella branding- It is also know as family branding, which is a marketing practices
which include usage of specific brand name in order to sale two or more connected
products. Next Plc can adopt this method through affirmative brand equity for example
Next retail Ltd., Lipsy London and many others.
Strategies for Developing Brand Equity
There are numbers of methods or strategies which Next Plc may adopt in order to manage
brand equity, from which some strategies are given below:- Holding up brand image- The respective strategy can be adopted by Next Plc manager in
order to maintain their brand equity in proper manner (Kelley, Sheehan and Jugenheimer,
2015). This can be possible by providing appropriate good and services to customers as
that will help in building effective brand loyalty among clients.
 Innovation- For Next Plc it is difficult to perform different strategies during launching of
new product at marketplace. This will help in boosting brand value at market by
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influencing customers through new innovative products as well as it also help in gaining
competitive advantages.
Market research is considered as process which include accumulation, examination and
interpretation of data that are related to good and services of company. In respect of Next Plc
they can adopt this strategy in order to improve their brand image and name at the competitive
marketplace successfully.
TASK 3
Critically evaluate different techniques of brand extension and brand leverage to expand brand
over time in both domestic and international market and evaluate collaborative partnership
Brand Extension
It is considered as marketing strategy which is used for brand starching. Respective
method is generally used in understanding popularity and brand reputation in order to increase
demand of products and services successfully and effectively (Neudecker, Barczewski and
Schuster, 2015). For a firm it is necessary to create their brand value so that customers get
attracted toward it and purchase their products or services. In order to this, Next Plc may adopt
numbers of strategies, from which some are mentioned below:- Re-positioning same product in a different form- According to this approach, a
company may reposition their existing products in order to do brand extension at the
marketplace. This is so because that will help them in attracting large numbers customers
in effective manner. For example- Cadbury- They reposition their chocolates and other
offerings according to special occasion Christmas eve, Valentine Week, New Year etc.. Re-positioning different product in the same form- According to this approach Next Plc
can conduct repositioning of their offering in same form in order to attract customers
(Pecot and De Barnier, 2017). For example retail clothing industry they reposition their
offering in same categories i.e. women, men, kids, western, traditional and fusion. New distributor, franchise or relationships- In respect of this method respective
company may choose new distributor or adopt franchise method in order to conduct
brand extension. Through this firm can enhance market shares as well as brand value for
getting competitive advantage.
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 Brand name or design change- In respect of respective company brand extension it is
essential to develop and design brand name as that will aid in attracting huge numbers of
customers successfully. Through this firm also able to increase their profit related to their
offerings.
Fit and Leverage Brand Extensions
In respect of brand extension, fit and leverage allow a company to measure their
customer purchase intent before investing for brand extension (Rauschnabel and et. al., 2016).
Through this method firm also able to get huge advantage as they can keep their same logo on
the numbers of products over several years in successful as well as effective manner.
Brand collaboration and partnership
There are several collaboration and partnership of Next Plc with several other companies which
are mention below along with ways they may adopt:-
 Next Plc conduct partnership with Marie Claire so that they can fulfil their potential
customers demand and expectation more successfully.
 Next Plc has introduced more than 100 brands across the world with different beauty
categories.
 Marie Claire impacted beauty industry in order to remain in-comparable with other
companies.
 Through partnership Next Plc able to create USP property exclusive bespoken by Fabled
by Marie Claire editorial team through experiencing world of beauty.
Global branding and positioning
In order to conduct branding and positioning at global level, Next Plc need to adopt
numbers of channels because through that they able to create awareness among the customers
related to their products (Rosenbaum-Elliott, Percy and Pervan, 2015). For this, respective
company need to provide high quality and innovative products to customers as that will help in
satisfying customers and attracting them towards purchasing offering. This will also lead to
development of effective image in the mind of customers.
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TASK 4
Critically evaluate techniques to measure brand value, brand awareness, market share, consumer
attitudes and purchasing intent. Evaluate brand equity and audit and brand tracking
techniques
There are various brand management techniques which Next Plc may adopt in order to
measure market share, brand awareness, purchasing intent and consumer attitudes, which are
mentioned below:-
Brand Awareness
It is considered as method used for creating awareness among the customers about the
brand through several channels, some are explain below which Next Plc may adopt:- Survey- It is considered as simple method which a company may adopt in order to create
brand awareness among customers. This method is qualitative in nature and have limited
sample size (Schivinski and Dabrowski, 2015). So Next Plc may adopt respective
techniques in order to create brand awareness among customers as well as it will also
assist customers to take right decision related to clothing.
 Social Media Engagement- In today's time, almost every company is using social media
for attracting more and more customers. In respect of Next Plc they can also promote
their clothing and other products through different social media as that increase their
brand awareness and customers ratio.
Market Shared
Market shares is considered as percentage of total sales at a particular marketplace which
is gain by a company in specific period of time. There are several techniques which Next Plc
may adopt in order to measure market shares, from which some are mentioned below:- Market Share Building – The respective technique can be implemented by the help of
market innovation and segmentation of products, services, distribution channel and
promotion (Veloutsou and Guzman, 2017). Through this respective company can grow
their value and market shares for earning sustainability as well as profitability
successfully.
 Market Share Reduction- Respective techniques can be adopted by Next Plc on
temporarily as well as permanent basis as that will also help them in reducing price of
their offerings for gaining sustainability, increasing profitability and growth business.
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Consumer Attitudes
Consumer attitude is considered as feeling, behavioural properties and belief of
customers on specific things at the retail store. At store customers posses several attitudes related
to products and services as will show influence level of customers toward specific products or
services (Pecot and De Barnier, 2017). Techniques which can be adopted by Next Plc in order to
manage and measure customers attitudes are given below:- Customer Satisfaction- According to this, Next Plc must provide quality, fashionable and
stylish clothing for their potential customers as that will help them in surviving at the
marketplace by understand customers attitude. Non-Structured Methods- It is considered as method which is informal in nature,
through this method respective firm can know its potential customers attitude towards
their offerings.
 Structured Methods- It is a formal and systematic method that is categories into two
form i.e. disguised as well as non disguised. This can be adopted by Next Plc in order to
know their customers attitudes in effective manner.
Purchasing Intent
It is considered as method through which a company can identify probability of whether
customer will purchase goods and services or not. There are several methods which can be
adopted by Next Plc, from which some are mentioned below:- Offers- Respective company may provide offers to their customers as that will help in
attracting customers (Rauschnabel and et. al., 2016). In respect of offers they may
provide discount, buy one get one and many more. This will also help Next Plc in
increasing their customers and profitability ratio.
 Affordable price- Next Plc may change their price to affordable price of their products so
that customers can afford their cloths in wide ratio. This will effective for company as
they will able to attract more customers segment which increase sales and profit.
Relationship between branding and finance
Branding and finance are interrelated with each other as for conducting branding
company need to arrange funds or financial resources. In respect of Next Plc, when every they
need to conduct practices related to branding they consult to financial department in order to
know their budget so that management can develop strategies accordingly.
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Brand Value
This is considered as popularity of a company at its potential marketplace. It is also refers
to brand equity that depend on features of products and services, purpose of calculating brand
value of a company is to know value pain for a specific brand. For a company it is essential to
increase their brand value and for that they may adopt various practices such as increase
goodwill, offer quality products and so on (Rosenbaum-Elliott, Percy and Pervan, 2015). There
are some approaches of brand value which can be adopted by Next Plc such as Cost Method as
well as Market Based. Through these method respective company can effectively understand
their brand value at the potential marketplace successfully and effectively.
CONCLUSION
From above discussed point it can be summarise, in order to succession a business
branding activities is essential as that help in generating awareness which directly linked with
increasing in profitability. For this a firm may adopt number of branding tools which create
awareness among customers and aid in attaining desire goal. It is also necessary to manage as
well as build brand equity which lead to success of business at the competitive marketplace. A
company also need to adopt innovation in order to reinforce and revitalised their brand. Along
with this, hierarchy building and portfolios strategies are essential for a company as that help in
creating brand awareness effectively. For a company it is also important to conduct brand
extension of products and services as that help in retaining at market for long time in order to this
they may conduct partnership as well as collaboration. It is necessary for firm to measure their
brand awareness, purchasing intent, market shares and consumer attitudes.
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REFERENCES
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Veloutsou, C. and Guzman, F., 2017. The evolution of brand management thinking over the last
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