Analysis of Brand Management Strategies: A Case Study of Sony

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BRAND MANAGEMENT
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Contents
INTRODUCTION............................................................................................................................. 3
LO 1................................................................................................................................................ 4
P1 IMPORTANCE OF BRANDING AS A MARKETING TOOL..........................................................4
P2 BRAND STRATEGY FOR BUILDING AND MANAGING BRAND EQUITY....................................6
M1 AND M2 THEORIES AND MODELS FOR SUCCESSFUL CREATION OF BRANDS ALONG WITH
EXAMPLES.................................................................................................................................. 9
LO 2.............................................................................................................................................. 11
P3 STRATEGIES OF PORTFOLIO MANAGEMENT, BRAND HIERARCHY AND BRAND EQUITY
MANAGEMENT........................................................................................................................ 11
P4 STRENGTHS AND WEAKNESSES OF SONY...........................................................................14
M4............................................................................................................................................15
LO 4.............................................................................................................................................. 17
P5 AND M5 TECHNIQUES FOR MEASURING AND MANAGING BRAND VALUE.........................17
CONCLUSION............................................................................................................................... 18
REFERENCES.................................................................................................................................20
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INTRODUCTION
The aim of this study is to explain the importance of branding as a marketing tool and how it
elevates the marketing and image of the company. The key components of a successful brand
strategy are analysed to see the impact of a successful brand strategy on brand development.
The different stages and practices of portfolio management are studied along with an
understanding of the topic of brand hierarchy and brand equity management. A critical analysis
of portfolio management is also done of the brand by understanding their brand equity using
appropriate theories and models. The strategies used for brand extension are also covered in
the study. Lastly, different techniques of measuring brand value are also discussed by
considering various examples (Keler et al., 2011).
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LO 1
As a Marketing Manager for Optimum Impressions Ltd., it is been asked to write an article for
the company on the importance of brand.
P1 IMPORTANCE OF BRANDING AS A MARKETING TOOL
‘Brand is Power’
INTRODUCTION
A brand is An identifying symbol that is associated with a particular company that is identified
from the rest of the others with the symbol, logo or name that it goes by (Kapferer, 2012). A
combination of a symbol or name can be used by companies to create a brand identity that
makes the brand stand out among the rest. A brand is a company’s most powerful asset as it
brings in revenue and markets the company well. The brand is the face of the company and the
public associates’ brand name with quality and trust. The company logo often holds the values
it stands for and represents the motto of the company. If the brand has been able to generate a
positive outlook from the audience, it is said to have developed brand equity. Some prominent
examples of successful brands are Coca-Cola, Microsoft, Nestle, Gucci and many others (Elliott
et al., 2015).
BODY
A brand is the product, service or image that is made for the public to get their attention to the
company. A brand is used for distinguishing the company from the rest in the market making
the same kind of goods and services. Branding involves creating and developing the brand
image with time and can be applied to the entire company or for its certain products or services
the company offers (Heding et al., 2015).
Since the brand is such a valuable asset to the company, its protection is also equally important.
Brands are protected from manipulation by others with the help of a trademark or acquiring a
patent right. This is obtained usually from an authorized government agency and is often a
tedious process. Before applying for a trademark for your brand, it is important to do some
researching to see if someone else does not hold that brand name, symbol or logo (Rouse,
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2019).
BRAND EQUITY
Brand equity is the term that describes the brand’s value in the market. Higher the brand equity
more is the popularity and demand of the brand and vice versa. Brand equity is dependent on
consumer’s perception and acceptance. If a brand has a high level of brand equity, the brand
can even charge more from the consumers. Also, a brand that enjoys high brand equity can also
benefit from other products in the line which carry the brand equity in brand leveraging. High
brand equity also increases the brand’s stock value in the market (Barrow and Mosley, 2011).
BRAND BUILDING PROCESS
There are the following steps involved in building a successful brand. The steps are as follows-
1. Determine the Target Audience- The brand that you plan to make should have a target
audience for whom the products or services are made. Identifying the target audience is
important as the advertising and marketing is done accordingly (Elliott et al., 2015).
Understanding the target audience tells more about the need and expectations they
have for a certain brand. Hence it also gives insight to the brand to utilise those factors
so that maximum consumer satisfaction can be attained from the product the brand
sells (Hanna and Rowley, 2011).
2. Establish a Brand Mission- A mission is the goal of the company or the business
objectives that it wants to achieve. Based on the likes and preferences of the audience
and the capabilities of the company, an effective and crisp brand mission must be set
which should act as the driving force for the company (Keler et al., 2011).
3. Research Brands within the Industry- If you are making a fashion brand then research
other fashion brands that have been successful. Understand their decision-making
policies, leadership styles and products so made to understand the fashion industry
better. Also, analyse the setbacks they faced to learn from their mistakes.
4. Key Qualities of your Brand- After doing an analysis of the other brands in the market, it
is important to analyse own brand and see the assets of the brand that can sell well.
Distinguish your brand from others by highlighting and focussing on any one aspect that
makes your brand stand out.
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5. Brand Logo and Tagline- This is the most important part of brand creation. The brand
logo must be effective and impactful and the tagline must encapsulate the value of the
brand and what it stands for. It will be what your brand will be identified with and
recognized in the market (Heding et al., 2015).
6. Brand Message- What message you want to deliver to the audience is framed at this
step. It includes a small introduction about the brand as to who you are, what you offer
and for whom do you offer. It also includes the qualities of the brand so as to convince
the audience to buy your product. The language should be easily understandable and
make the company’s objective clear to one and all.
7. Stay Consistent- When the brand has been created successfully, it is important to keep it
consistent all the time and everywhere the brand has a presence. The customer care
you provide should be consistent and the quality of the product should also not change.
If you are venturing in the food business then the taste and flavour of the food items
should also match up to the customer's likeliness and remain consistent (Kapferer,
2012).
8. Spread the Word- After successful completion of the steps above, it is important to
market the brand well. Advertising plays a big role in the popularity and success of the
brand. Advertising media are many and brand can be promoted on a number of
platforms like TV, radio, print media and social media. Word of mouth is also a great
publicity generator in the masses (Gregory, 2019).
These are the steps of building a successful brand. The brand has to be created after due
consideration and sufficient research to understand the trend of the market (Buil et al., 2013).
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P2 BRAND STRATEGY FOR BUILDING AND MANAGING BRAND EQUITY
HOW TO DEVELOP BRAND EQUITY
There are multiple ways to develop brand equity for a company which will reap high profits in
the future. The ways to develop positive brand equity are as follows-
 Awareness- Creating awareness of the brand is the number one way of developing
brand equity for the company. Advertising the brand on popular channels like TV, radio,
print media and social media are best platforms to get the brand noticed by the masses
 Recognition- Customers after seeing the brand on various marketing platforms become
familiar with the brand and can recognize it elsewhere. They now know what the brand
sells and the brand becomes recognizable to the public (Keler et al., 2011).
 Trial- Once the brand becomes recognizable, the customers try to give it a shot and
experience the brand. If the brand lives up to the customer’s expectations and they
have a good experience with the brand, they use it again.
 Preference- When the consumers develop likeliness for the brand for its quality,
durability or designs, it becomes a preferred choice for the consumers and they prefer
the brand over others (Elliott et al., 2015).
 Loyalty- The consumer becomes a loyal customer in the long run and does not choose
any other brand. The consumers think highly of the brand and also suggest others to use
the brand also. The become indirect marketing channels of the brand and this develops
and boosts brand equity (Barrow and Mosley, 2011)
These are the stages of brand equity development for a brand. All these are vital for developing
brand equity that benefits the brand in the long run.
HOW TO MANAGE BRAND EQUITY
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HOW TO MANAGE BRAND EQUITY
Fig. 1- Managing Brand equity
Source- (Hanna and Rowley, 2011)
Brand equity can be managed by following the given recommendations-
i. Continuous Differentiation- The brand must be differentiated continuously to
incorporate changes and the latest features in the brand. Updating the brand
with the latest times is also important to avoid from being left out. Companies
update their products and also diversify them to attract a range of customers
(Kim and Ko, 2012).
ii. Business Expansion- This is the expansion of business where when the business
becomes successful, it expands and diversifies to cover more areas where the
product can sell well and also to leverage the brand further to cater to a larger
audience (Heding et al., 2015).
iii. Brand Awareness- The awareness of the brand must be created to propagate the
idea on a larger and wider scale. The brand awareness can be created by
marketing the product and brand well on all advertising channels and digital
media for maximum consumer coverage (Kapferer, 2012).
iv. Involve Customers- Involving customers in the brand progressing is also a great
idea so that they can give the guidelines and suggestions as to what do they
expect in the product. For example, Domino’s included customers in updating
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and improving their pizzas. The updated pizzas had more toppings, more cheese
and were made spicier. The strategy to include consumers in the decision-
making process goes a long way in the success of the brand (Hanna and Rowley,
2011).
v. Trends and Preferences- The prevailing trends in the market must be utilized well
and the brand should use marketing strategies as well to highlight and promote
the products made according to consumer's choices and preferences. For
example, Starbucks writes the name of the consumer on their coffee to add a
personal touch and customize the coffee for the consumer (Bhasin, 2018).
These are some of the ways of managing brand equity in the long run. Through these steps,
brand equity can be improved for getting maximum consumer coverage for the brand.
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M1 AND M2 THEORIES AND MODELS FOR SUCCESSFUL CREATION OF BRANDS
ALONG WITH EXAMPLES
KELLER’S BRAND EQUITY MODEL
Fig. 2- Keller’s CBBE Model
Source- (Keler et al., 2011)
Keller's Brand Equity Model or also known as the Customer-Based Brand Equity (CBBE) Model
was developed by Kevin Lane Keller which was used as a model to develop a strong brand and
understanding the consumer's perceptions about the brand. Building the right experience
about the brand is important to appeal to the customers and to attract them to the brand. The
customers who have positive thoughts about the product tend to be loyal to the brand and
remain its active customers throughout (Elliott et al., 2015).
There are 4 steps of the pyramid of Keller’s CBBE Model-
Step 1- Brand Identity- Who are you?
This is the foundation of the pyramid and has to be strongly established. This is the identity of
your brand that tells who you are and what you sell. You should understand the consumer’s
needs and address them through your products. This step also involves communicating with the
audience to tell them how their needs are fulfilled with the help of the products the brand is
selling (Barrow and Mosley, 2011).
Example- Apple is a tech-giant which is a successful company for the clear identity it showcases
in the market. Its smartphones and tablets are successful for the ease of use and the durability
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of Apple products. This is the identity of Apple which clearly shows its goals and objectives
(Annie Jin, 2012).
Step 2- Brand Meaning- What are you?
This step involves the explanation of the brand, what does it stand for, its core values and so
on. This part consists of Performance and Imagery which are further divided into Product
reliability, Durability, Service effectiveness, Efficiency and Empathy. The product that the brand
is selling must follow up with these points to build a stronger connection with the audience and
the probable customers (Heding et al., 2015).
Example- An example can be Patagonia which makes high-quality outdoor wear which is
manufactured from recycled goods. The products are durable and have an environmental
concern attached which makes it easy to connect with the audience (Kapferer, 2012).
Step 3- Brand Response- What About You?
The response received by the brand falls in this category. The response is depended on the
judgements and feelings the consumers associate with your brand (MacInnis et al., 2014). The
judgements regarding the brand will be dependent on the quality of the product, the credibility
of the product and the services, relevance and superiority among other competitors. If all these
have been positive after the consumer’s experience with the brand then the brand response is
successful and brand is passed by the audience (Hanna and Rowley, 2011).
Example- An example can be Pizza Hut which sells top-quality pizzas. Consumer’s feelings and
judgements regarding the quality and taste of pizzas is asked in the form of a feedback form
given to consumers after they have had their meal. This lets the company know how the
product is perceived by the audience.
Step 4- Brand Resonance- What about You and Me?
This is the most difficult level of the pyramid and the most desirable by the brands. How much
of a connection is the consumer able to establish with the product or brand? This is termed as
Resonance with the brand which is determined by the behavioural loyalty to the brand,
attachment, community formation with other brand users and active engagement with the
brand like campaigning or following the brand on social media (Valette-Florence et al., 2011).
Example- Nestle is a powerful brand that makes food items and dairy products and has earned
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quite a name for itself. Customers are able to associate well with the brand and have developed
trust with the brand in the long run. Its products like Maggi and Kit Kat chocolate are world
famous and in demand always (Elliott et al., 2015).
These are the steps of Keller’s Brand Equity Model which includes important steps in the
pyramid. The steps are attained one by one and it is a gradual process that reaps benefits.
CONCLUSION
It can be concluded that a brand is an important tool that markets the company and also sells
for itself. The brand is a great way to associate with the company for the consumers as brand
gives them a sense of attachment and quality assurance for the consumer. The steps of building
a successful brand and brand equity are discussed which show that brand can be very
rewarding and profit-yielding for the company. The steps to manage brand equity are also
discussed in Learning Objective 1 that highlights the importance of managing equity over time
(Keler et al., 2011).
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