Effective Brand Management Techniques: A Case Study of Virgin Group

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BRAND MANAGEMENT

TABLE OF CONTENTS
Introduction..................................................................................................................................................1
LO 1.............................................................................................................................................................2
P1 Explain the importance of branding as a marketing tool and why and how it has emerged in
business practice......................................................................................................................................2
M1 Evaluate how brands are managed successfully over time using application of appropriate
theories, models and concepts.................................................................................................................3
P2 Key components of a successful brand strategy to build and manage brand equity..........................5
M2 Apply appropriate and validated examples within an organizational context..................................6
LO 2.............................................................................................................................................................7
P3 Different strategies of portfolio, brand equity and brand hierarchy management.............................7
M3 Critically analyze portfolio management, brand hierarchies and brand equity using appropriate
theories, models and frameworks............................................................................................................8
LO 3.............................................................................................................................................................9
P4 how brands are managed collaboratively and in partnership both at global and domestic level.......9
M4 critically evaluates the use of different techniques used to leverage and extend brands................10
LO4............................................................................................................................................................12
P5 Evaluate different types of techniques for measuring and managing brand value...........................12
M5 critically evaluate application of techniques for measuring and managing brand value in relation
to developing a strong and enduring brand............................................................................................13
D1 Provide a critical evaluation that is supported by justified evidence demonstrating a
comprehensive understanding of branding within an organizational context.......................................13
Conclusion.................................................................................................................................................15
References..................................................................................................................................................16

LIST OF FIGURES
Figure 1: Keller’s Brand Equity Model.......................................................................................................4
Figure 2: Brand hierarchy of needs............................................................................................................8
Figure 3: Kwality Walls ice-creams..........................................................................................................10
Figure 4: Vertical extension of Unilever products....................................................................................11

Introduction
In marketing and business context, brand management can be referred as the examination of brand in the
market perseverance. It is significant to create the useful relationship with the targeted audience for
brand management. The study will include branding importance as the tool of marketing and how it has
involved in practices of business involving the main elements of brand equity and brand strategy. It will
also illustrate various portfolio strategies, brand hierarchy, brand equity approaches and partnership
collaboration at global and local level. At the end, the report will highlight the several techniques of
brand management for measuring and managing the value of brand.
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LO 1
P1 Explain the importance of branding as a marketing tool and why and how it has emerged in business
practice
Branding can be referred as the designing, naming or symbolizing that supports in determining the
services and products offered by the organization in the eyes of the customers. It also assists the
organization to develop the distinction between the goods and services given through them and
intermediaries etc (Borel and Christodoulides, 2016). Branding gives the advantage to the firm that their
products are chosen first in comparison with the competitor’s products and it is due to the better quality
products offerings at reasonable pricing.
Branding importance
It can be referred that brand can be very much supportive for the organization Virgin in respect of
making the differentiation with the services and products provided in the market over other which
supports in making the contrast for the customer to select their products as per their needs. The branding
also assists to enhance the image of the Virgin so as to increase the sales, productivity and profits
through the customers. Through this operations can be raised appropriately and essentially and business
expansion can take place (Chiambaretto et.al. 2016).
Increase customer loyalty: Branding supports in offering quality goods and services to the consumer and
they buy frequently. It is been analyzed that the customer that are happy will tell to the other people also
for their satisfaction and experience that develops brand relationship.
Remembrance: Branding supports customer to address and has remembrance in the mind. This supports
in product remembrance also so that they can determine the further purchases by identifying it.
Reputation increment: The reputation of the business arises by offering services and product through
quality initiatives for the purchaser. In this manner, customer will also say to the other for the quality
and product effectiveness that raises reputation.
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Differentiation: Branding gives the comparison of virgin products with the other products and services
and supports in giving the brand differentiation in the market. Through this brand identification can also
be conducted.
Emotional connection: Emotional links shall be made with stronger efforts that help the Virgin
organization to take suitable decisions for the business. The emotional links also supports in identifying
the consumer target segment.
Meaning development: Branding supports the Virgin group to show their objectives, efforts and meaning
for the customers in the market parlance. It is connected with various mediums through advertising and
reaching the information to their end (Martin, 2015).
The major approach of brand management is to refer the mission, values, vision, position and
characteristics of the business in respect of communicating its strengths and consistency. The business
model of brand also includes limitations and supports in maximizing the brand potentiality. For brand
differentiation, consistency is also major element for the organization. Relevancy and transparency
supports in adopting the changes as per the conditions of the market. The clerical strategies are
developed so as to communicate the right products and information to the targeted audience. It will
support to increase profits and growth of the business to meet expected objectives and purposes.
M1 Evaluate how brands are managed successfully over time using application of appropriate theories,
models and concepts
Keller brand equity model is also referred as customer based equity approach which is supportive in
creating and bringing improvement through giving powerful strategies by means of developing the
brand management hierarchy. For managing and controlling the brand equity it is important to develop
the strategies accordingly.
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Figure 1: Keller’s Brand Equity Model
(Source: Brand Management, 2019)
Identification of brand: The brand recognition can be referred as indication that supports the customers
to identify the services and goods provided by Virgin group in market parlance. It spreads the awareness
and develops brand equity for current and new customers. It also supports in knowing the customer
preferences over the competitors products also (Çifci et.al. 2016).
Meaning of brand: There are two factors that supports in sharing the objectives of the organization that
are imagination and performance for developing the brand meaning. As per this, suitable experience
shall be given for the services and products given by them.
Brand responsiveness: It refers to give the feedback by the customers after the products have been used
by them. This will support in meeting the brand equity which is categorized into two elements feelings
and judgments shown by the customers.
Brand resonance: It is the complex state and comes at the higher level in brand equity model. It is
significant for the Virgin Group as it supports in meeting the psychological bonding and customers
feeling (Ekinci, 2018). The repetitive purchases from the buyer show the love, loyalty and active
involvement by reflecting brand efficiency.
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For increasing branding and customer satisfaction the use of brand equity model can be used as the
strategy. It also support in meeting the useful brand measurement from customer view point that results
into high profits and growth. This approach is also supportive on consumer preferences that manages
and controls the brand equity effectiveness.
P2 Key components of a successful brand strategy to build and manage brand equity
Brand strategy importance
The branding strategy is significant for the Virgin group as it supports to examine and identifying the
customer requirements and demand in market. It supports in making the important modification in
operational areas to develop products accordingly (Neuvonen, 2016). Branding approaches also
supports in identifying the customer perspectives to give the reliable delivery services in market area.
Over the time brand management
Brand management can be said as the procedure in which value and brand equity can be managed for
longer time with respect to the customer products. There are various techniques offered to the business
with respect of competing with others through brand management essentially. The management requires
assuring the product life cycle procedure and brand management shall be end with the useful way for
getting brand value and equity (Veloutsou and Guzman, 2017). Few of the challenges that affect the
brand development are:-
Brand as asset: The firm has been pressuring of making the short term objectives in respect of
developing the values and activities in financial terms. The branding acts as the business asset.
Vision compelling: The organization shall have vision to be compelled for focusing on products and
services differentiation given in the market for other branding. It supports in managing the brand
effectiveness over others.
Sub categories: There are various businesses who offer same products and services during the product
life cycle procedure. For this purpose, it is important to create the sub categories that are sometimes very
difficult.
IMC: It stands for integrated marketing communication which is significant for the enterprises to choose
the best platform like advertisement, social websites for vision communication (Luxton et.al. 2015).
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Strategy development: In respect of managing value and brand equity, it is significant to create the
strategy. At few times, management addresses the issues related to strategies development that are
appropriate in rising the branding.
Brand equity: Brand equity management is significant for the organization to increase sales and profits
which can be conducted through quality and useful products and services for customers in market. On
this concern, the products shall be identifiable, reliable and superior quality to increase sales and brand
equity.
Brand promises: Through the branding the products and services commitment can be analyzed by the
customers. It involves description of goods which is significant to meet the customer perception. It also
helps in meeting the demand and customer expectations as well (Iglesias et.al. 2017).
Targeting: It is done to ensure that the services and products will be sold in this targeted area surely. It
supports to share the information through branding along with influencing the new customers also for
buying the products. It supports in managing the firm profits and productivity usefully.
M2 Apply appropriate and validated examples within an organizational context
With the objective of making the study to be easy, it is important to do the comparison and assessment.
It is because of the multinational organization that influences the Virgin group services. The Keller’s
equity model can result into various results that are represented below:-
 The customer loyal base supports the Virgin business to carry out the consistent feedbacks so as
to have regular updates for achieving customer demand.
 The market base expansion can be raised through enhancement in brand awareness (Ekinci,
2018).
 The customer loyalty can be achieved through meeting the customer trust that can be beneficial
to the business.
 The wants of the market and customer preferences are consistently developing and due to this
innovation is necessary to be taken.
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LO 2
P3 Different strategies of portfolio, brand equity and brand hierarchy management
Brand portfolio of the organization supports in defining and understanding the roles, relationships and
scope along with the brand structure of portfolio.
Brand roles: For the marketing of the services and products, it is important to determine the roles in
respecting of making the approaches effective and suitable. It will support in meeting the perception of
the customers and offer strength to the product portfolio included (Burmann et.al. 2017). Virgin
organization employees shall be aware for their roles and duties for managing the portfolio
appropriately. Brand roles will support in managing the various situations
Long term thinking: It is important that thinking should be on longer term in respect of managing and
controlling the resources offered in firm for the management of portfolio. It will assist the businesses to
create the approaches in considering the future conditions accordingly and offers strengths for managing
the brand portfolio.
Business strategy: The management shall target on strategy of the business so that portfolio management
can be done in respect of determining the market as they are linked with propositions and values.
Approaches will support the management to develop several plans for brand portfolio management.
Perspective of consumers: Brand management portfolio not only supports in taking the decisions in
relation to operational and financial but also takes into accounts the customer demands and taste (Keller
and Brexendorf, 2016). The quantitative and qualitative strategy is given to the management in respect
of meeting the research for portfolio management.
The various relationship and roles supports in creating the better family that can generate with the
support of developing the differentiation and meeting the leverage, clarity and synergy for useful brand
portfolio management, hierarchy and equity.
Brand hierarchy
It can be referred as short conclusion of approaches for managing the brand. It also supports in
explaining the common popular characteristics of Virgin group. It can be referred that brand hierarchy is
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relied on the realization where the organization enables to regenerate their products and services. It also
works from top to lower level in hierarchy that involves every succession level suitably (Wijaya, 2015).
Figure 2: Brand hierarchy of needs
(Source: Brand hierarchy of needs, 2010)
M3 Critically analyze portfolio management, brand hierarchies and brand equity using appropriate
theories, models and frameworks
The branding is the effective solution and is also considered as the foremost strategies of marketing.
Integrating the creditability of the brand, the business can generate more customer base and identifies
the needs and perspectives. The strong objective of brand management is market expansion. One of the
major justifications for brand development and usefulness is differentiation of products. The main
industries carry out their functioning in monopoly and oligopoly market structure that reflects that the
firm offers same services and products (Herrero et.al. 2017).
Furthermore, for getting the greater share in market through competitors the service marketing should be
in such way that reflects they varies from the competitors. Virgin organization is offering various
services and has approaches for surviving in market. The approaches are brand portfolio and brand
equity. Virgin group needs to target on innovative facilities in their business development. Hence, the
organization has involved by important facilities to give the best products to the end of customers.
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LO 3
P4 how brands are managed collaboratively and in partnership both at global and domestic level
The partnership contract is the significant approach that can be taken by the firm to lower down the
burden of the employees and does functions management in the organization. The procedure of
collaboration is combining of local businesses for meeting the objectives of the business. For instance:
The two firm’s collaboration will involve into the partnership contract so that business competencies can
be met. Each firm has its own target area and functioning that can be conducted through partnership and
sharing the profits (Walker, 2017). In either manner, the strategies of marketing are centre of customer
and focuses on increment of market share at costs involved in merger.
The promotional activities help the business to strengthen the capturing of market for understanding the
facilities at several levels. There is little variation in partnership and merger and the reason is confidence
and trust level especially in context with top level of management. The firm can enter in collaboration
agreement in several steps:-
Philanthropic step: It is the foremost step where the firm helps the non profitable organization in
operation of market.
Transactional step: In this, two firms entering into the contract for money exchange called transactional
step. Majorly division and distribution of resources is to be conducted.
Integrative step: In this resource division is also done but with that sharing of goal contract of the
business will be conducted and further, the trust level is very high (Parkin et.al. 2017). There are some
benefits that are interrelated such as sharing of knowledge, human resource pooling, and big funds
outcome into expansion of business, covering market base widely and expanding internationally.
Challenges of collaboration and partnerships
There are several problems for the firm in partnership like sharing the profit as large firms collaborates
more assets and resources and sharing equal profits can be regarded the unfair mean. Resource
manipulation in the market can raise the liability of the business as well. It carries out the
interdependency that can develop the shareholders grievances.
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