Brand Management: Building, Managing, and Measuring Brand Value

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Brand Management

Table of Contents
Table of Contents....................................................................................................1
Introduction................................................................................................................. 2
LO1............................................................................................................................. 3
Demonstrate an Understanding of How a Brand Is Built and Managed Over Time....3
P1............................................................................................................................ 3
The Importance of Branding As a Marketing Tool and Its Emergence in Business
Practice....................................................................................................................3
M1............................................................................................................................5
Evaluation of Successful Brand Management Using Keller's Brand Equity Model. .5
P2 and M2...............................................................................................................8
The Key Components of a Brand Strategy for Building and Managing Brand Equity
with Organisational Examples.................................................................................8
LO2........................................................................................................................... 11
Analysis of the Methodology of Organising Brands in Portfolios and Building and
Managing Brand Hierarchies.....................................................................................11
P3.......................................................................................................................... 11
Analysis of Portfolio Management, Brand Hierarchy, and Brand Equity
Management Strategies........................................................................................ 11
M3..........................................................................................................................13
Critical analysis of portfolio management, brand hierarchy and brand equity.......13
LO3........................................................................................................................... 16
Brand Leveraging and Extension..............................................................................16
P4.......................................................................................................................... 16
Evaluate How Brands Are Managed Collaboratively and In Partnership Both At a
Domestic and Global Level....................................................................................16
M4..........................................................................................................................17
Critically Evaluate the Use of Different Techniques Used To Leverage and Extend
Brands................................................................................................................... 17
LO4........................................................................................................................... 19
Evaluate Techniques for Measuring and Managing Brand Value over Time............19
P5 & M5.................................................................................................................19
Conclusion................................................................................................................ 21
Reference List...........................................................................................................22

Introduction
Brand building and brand management are an important and critical part of today’s
business environment. The brand not only facilitates a company’s business but also
brings down cost associated with different components such as marketing and
entering new markets. The brands provide the organisations the edge they need to
succeed and survive in the fierce competition oriented market place. The brands
ensure market presence and market shares. Successful brands like Nivea add up to
the company’s financial net worth. The brands also facilitate the establishment of
new brands and the growth of other associated products. A single successful brand
can give rise to a large portfolio. In fact some of the companies design their portfolio
around one master brand such as Apple.

LO1
Demonstrate an Understanding of How a Brand Is Built and Managed
Over Time
P1
The Importance of Branding As a Marketing Tool and Its Emergence in
Business Practice
A Brand can be defined as a logo (symbol), design, or name that’s associated to a
Company, a product range, or a service offered by a Company and differentiates that
particular Company, product range, or service from other Companies, product
ranges, or services (Wheeler, 2017). A brand is used to create a perception in the
customer's mind according to the Company’s wishes. It’s built to represent the
uniqueness of the Company, a particular product range, or service in front of the
customers. A brand is created to connect emotionally with the customer. It facilitates
a customer’s understanding of the company, product range, or service it represents,
its relevance to the customer, and similarity or difference from others (Wheeler,
2017).
Source: Some Famous Brands
Branding as a Marketing Tool

Branding can be defined as a marketing tool that involves creating and establishing a
logo (symbol), design, or name to a Company or a product range or service offered
by a Company. It involves handling both perceptible and imperceptible
characteristics of a brand (Wheeler, 2017).
The emergence of Brands was due to the following reasons
 A customer has an abundance of choices and a limited decision-making time.
 The complexity of markets has increased manifold, allowing the availability of
multiple product ranges and services of similar features and qualities.
 Trust is often the base of a customer’s buying choice.
The products and services became similar not only in appearance but also in a
number of aspects such as reliability, quality, assurances, etc. The Brands allowed
the addition of trust, uniqueness, and emotions that simplified the choosing process.
This facilitated a relationship between the brands and customers and helped in
ensuring customer loyalty. A brand signifies a lifestyle that allows the customer to
feel a part of that lifestyle. This aspect can be extended to other service and product
categories of a company. This helps the Company save money while entering new
markets. A company also earns money by charging a premium on its products by
virtue of the relationships, emotions, and lifestyle denoted by their brand. All these
factors led to the emergence of Brand as a marketing practice (Wheeler, 2017).
Branding is an important marketing tool due to the following reasons (Wheeler, 2017)
 It enhances credibility – Branding improves the perception of the company,
product, or service represented by the brand leading to enhanced credibility
and trust.
 It improves the market share and revenue – Branding helps in increasing
the market share and revenues allowing the company to co-brand and enter
new markets.
 It helps in overcoming a crisis - A good brand allows a company to
overcome a temporary crisis and re-establish itself. For example, Toyota
suffered some quality issues in 2009 but its reputation for quality associated
with its brand allowed it to overcome the crisis and re-establish its reputation
and trust.
 It enhances the market value of brand owner – The financial or commercial
value of a brand known as Brand equity adds up with the market value of the
company.
 It facilitates premium pricing - Customers are willing to pay extra for a
branded product or service allowing the company to charge premium prices
for its brands.
In addition to the above factors, branding helps in discouraging new competitors,
makes employees more productive while minimising employee turnover, and
facilitates the reduction of marketing costs. All these factors help to brand to
strengthen and facilitate the marketing strategies of the company and make branding
an important part of the marketing efforts of the company (Wheeler, 2017).

M1
Evaluation of Successful Brand Management Using Keller's Brand Equity
Model
Brand Management can be defined as the process of successfully creating,
developing, and sustaining a brand. The brand management process involves
different stages. The first stage is identifying and then establishing the Brand value
and Brand Positioning. Brand Value can be defined as the financial significance of a
brand while Brand Positioning involves the targeted brand image of the brand in front
of the customers. The second stage is devising the method to achieve the targets of
the first stage. It involves creating and planning the marketing and advertising
programs to market the brand (Anselmsson et al., 2014).
Source: Brand Management Process
The third stage of brand management involves the evaluation of brand performance
after the completion of the marketing activities. It also involves considering whether
the marketing program was successful in achieving the targets of the first stage. At
the end of this stage, the brand gains a financial aspect in terms of its recognition in
front of the customers (Anselmsson et al., 2014). The last stage involves sustaining
and improving the brand equity associated with the brand. There are various theories
and models that are used in the brand management process. The most popularly
used brand management model is Keller's Brand Equity Model (Jara and Cliquet,
2012).
Keller's Brand Equity Model
It's also known as Customer-Based Brand Equity Model or CBBE Model. The
customers and their thought process are an important constituent of every
Brand Positioning and
Values
Identification and
Establishment
Brand Marketing
Planning and
Implementation
Brand Performance
Measure and Interpret
Brand Equity
Enhance and Sustain

companies brand strategies. In this fiercely competitive business world, it becomes
critical to mould a customer’s feelings and thought process favourably (Jara and
Cliquet, 2012). This is the basic aspect of brand building and management that's
addressed by the CBBE Model. It focuses on the creation of experiences associated
with the brand that evokes positive feelings, perception, opinions, and thoughts
regarding the brand. This facilitates the creation and strengthening of the brand
equity that helps improve the sales of the products associated with a brand through
brand loyalty and the creation of new customers by existing ones (Jara and Cliquet,
2012).
The CBBE Model is a brand equity triangle or pyramid that's divided into four basic
parts and two of these are further divided into two more parts. All these six parts
together constitute the CBBE model.
The Four primary and four secondary parts are as follows
Brand identity - These are the symbols, words, or any other brandings and marks
associated with a brand. These define a brand and the commitments or benefits
associated with it. The customers visualise and perceive the brand through brand
identity. The brand identity is built at the start and its strength defines the strength of
the brand (Jara and Cliquet, 2012).
Brand meaning - The brand meaning comes after the establishment of brand
identity. This provides the customer with a reason to buy the brand. This level has
two parts and they are performance and imagery. The brand performance includes
aspects of the brand like reliability, customer service, features, design, style, and
pricing. The brand imagery is how the customer perceives a brand (Buil et al., 2013).
Brand response - This level involves handling the customer's response to the brand
associated products. It’s further divided into two parts judgments and feelings. The
Res
ona
nce
Judgements
Feelings
Brand
response
Performance
ImageryBrand meaning
Brand Identity

judgments and feelings can be both positive and negative depending upon the
customer's expectation and product performance. The positive response enhances
the brand while the negative ones damage it (Buil et al., 2013).
Resonance or Relationships - This level of Keller's model is attained by a limited
few brands. The brands at this level enjoy a strong psychological and social
connection with the customer. The customers of a brand at this level constitute a
community that's extremely devoted and loyal to the brand. The participants of this
community feel interconnected through the brand (Buil et al., 2013).
In addition to building and managing brand equity, other aspects of managing a
brand are brand reinforcing and brand revitalising. Brand reinforcement includes
activities like maintaining the consistency of the brand, protecting the brand equity
sources, continuous analysis and improvement of the marketing program, etc. Brand
revitalising involves redirecting the old brands to revive it and expand their life (Buil
et al., 2013). It includes finding new markets and new uses, extending the brand,
strengthening the existing products or services, scraping the obsolete products
associated with the brand, etc.

P2 and M2
The Key Components of a Brand Strategy for Building and Managing Brand
Equity with Organisational Examples
Brand management process involves employing a number of different theories,
concepts, and models that help in establishing and maintaining different aspects of a
brand. Management of Brand Equity is an integral part of Brand Management. It’s
critical for establishing a brand and improving upon the existing brand value (Aaker
and Joachimsthaler, 2012). The brand equity can be understood as the financial
value of a brand accrued over time as its recognition grows. One of the models that
deal with determining brand equity is Aaker's Brand Equity Model. This model states
that the determination of brand equity is dependent on the following factors (Aaker
and Joachimsthaler, 2012)
 Brand Awareness
 Brand Associations
 Brand Loyalty
 Perceived Quality
 Other Proprietary

Source: Aaker's Brand Equity Model
David Aaker considers the above five factors as liabilities and assets associated with
a brand that either increase or decrease the value of the brand. We will be
considering Nivea, a century-old skincare brand with an international presence and
that’s owned by a German Company’ Beiersdorf’ (Su and Tong, 2015).
Brand Associations
The information associated with a brand retained by a customer and that helps them
recall a brand on coming across the brand name. An example of this can be the
information included in TV commercials that stays back in the customer's mind. It
allows the brand to differentiate itself from its competition. It's directly related to
brand equity and it helps strengthen brand equity. It facilitates the buying process by
creating positivity regarding the brand. The brand associations of the skincare brand
Nivea can be listed as smoothness, mildness, heritage, luxury, blue tin, white logo,
consistency in high quality, unisex, global presence, special range for both men and
women, and a complete skin care brand (Su and Tong, 2015).
Perceived quality
This is the customer's perception of the brands quality and it constitutes the reason
for buying the brand. The perceived quality is independent of the actual brand
quality. It helps in the positioning and differentiation of the brand in terms of its
competition. This perceived quality can be due to a number of factors such as its
price, availability, and number of brand extensions. The customers perceive Nivea to
be a trusted skin care brand that's luxurious and endorsed by celebrities. Nivea
products are always expected to be high quality and ability to deliver the
commitments (Su and Tong, 2015).
Brand awareness
This is the familiarity of the brand among the customers. It depends on the recall
value of the brand in the customer's mind during the buying process, its likability
among the customer, and the number of brand associations. The extent of the brand
awareness of the brand, Nivea can be understood by the fact that it has a global
presence in over 170 countries and it’s considered to be one of the largest skin care
brands of the world (Su and Tong, 2015).
Brand loyalty
This refers to the dedication and willingness of the customer to purchase repeatedly
a product or service of the same brand over time and exhibits a level of commitment
towards the brand. It generates brand equity through the reduction of marketing
costs and trade leverage. Retention of existing customers is cheaper than attracting
new ones while existing customers bring in new ones by their own efforts. Brand
loyalty gives a company time to plan its response to competition. The branding

strategy of Nivea allows it to connect emotionally with the customers. It has a
reputation of a family skincare brand that's safe and high quality. All these qualities
along with its heritage make it a trusted brand with a loyal customer base (Su and
Tong, 2015).
Other Proprietary
Proprietary rights such as intellectual property rights and patents help the brand in
gaining a competitive edge. The numbers of these proprietary rights contribute in
deciding the strength of the competitive edge. Nivea holds a number of patents and
other proprietary rights and spends a lot in research and development (Su and Tong,
2015).