Brand Management and its Importance for Business Organizations

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BRAND MANAGEMENT
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INTRODUCTION
The assignment shows the understanding of brand management and importance brand for
the business organization. The brand is a very effective tool for the business organization
as it contributes in almost all the aspects of the business organization related to business
sales and marketing such as it helps effectively in business marketing, helps in attracting
customers, increase business sales and revenues, etc. Brand impacts on the decision
making of the customers buying behavior, as well as good and positive brand, significantly
create a positive image within the consumer's mind (Heding et al., 2015). The report shows
the various techniques and tool in order to construct and manage the brand of the P&G as
well as expands in the domestic and global level.
The Procter and Gamble Company is an American multinational company that deals in
consumer goods such as health and beauty products etc. the company is effective covers
the worldwide market share except for Cuba and North Korea. The company has over
95000 employees work for it.
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LO1
“BRAND IS POWER”
INTRODUCTION
BRAND: A brand can be a product, concept or a service which can be distinguished from
the others to ensure that it can be easily marketed and communicated. It is a name
provided to a specific product or service to ensure that it gains an identity (Heding et al.,
2015).
BRAND EQUITY: The value of the brand can be named as brand equity. The overall brand
value can be resolute by analyzing the customer experiences and also the insight of the
customers (Qiao and Wang, 2017). The brand equity defines the perceptions of the
customers which are linked with a particular brand.
IMPORTANCE OF BRAND: The success of the association can be determined by its brand.
Branding is a form of marketing tool, which is capable of attracting customers and thereby
enhancing the overall revenues. It enhances the image of the organization and attracts an
increased number of customers. Therefore, it can be said that branding is a advertising tool
which aids in establishing a strong market identity and also facilitates repurchasing.
However, huge costs are associated with advertising and other tools (Çifci et al., 2016).
STAGES OF BRAND BUILDING:
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Figure: Stages of Brand Building
Source: Parker et al., 2018
The steps for building a successful brand are:
1. Evaluating the brand
The market position of the brand and its potential customers are needed to be determined.
Competitor analysis should also be performed. The leader should focus on analyzing the
growth factors and the customer's perception.
2. Describing the brand
The branding can be made successful only by identifying the mission and vision statement
which would be helpful in ensuring the success of the business organization. The brand
value proposition should be communicated to the customers (Parker et al., 2018).
3. Brand positioning
The brand must be defined in terms of feel, looks, and others by making use of the
marketing channels such as websites, packaging, social media and advertisements amongst
others. The brand can be reflected by the logo, color, fonts, and styles.
4. Promoting the brand
Strategies must be implemented by the organizations for ensuring that brand awareness is
increased and also that the brand is strengthened. It must focus on implementing strategies
which would be helpful in building brand identity and making direct communication with
the customers (Gürhan-Canli et al., 2016).
5. Personalizing the brand
The brand should focus on developing a value for the customers. With the objective of
overcoming the competition, the organization should focus on analyzing the brand and also
ensuring that the promised aspects are being provided to the customers.
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ROLE OF MARKETING IN CREATION OF BRAND EQUITY
The responsibility of construction a brand rests with the promotion department of the
company. For this, marketing programs are being undertaken which are related to the
channels of distribution, products and the prices. The marketing activities are focused on
communication of the product to the customer and also promoting the brand for enhancing
brand awareness and increasing brand value (Kapferer, 2015). The brand equity is being
impacted either in a downward and the upward direction based on the marketing activities
undertaken by the organization. Therefore, it can be said that marketing activities are
aimed at informing and communicating brand capabilities.
BODY
CASE STUDY - OVERCOMING THE BRAND CRISIS
During the summer travel season of 2016, Southwest Airlines was facing trouble owing to
the failure in the adoption of wide-reaching technology. The website of the company along
with its key systems was not operational for more than 12 hours. This forced airlines to
cancel several flights. In a very short time frame, the airlines were successful in responding
to the customer complaints by adopting social media channels, which helped it in
overcoming the crisis. With the objective of responding through social media, Southwest
airlines made several apologies for the impacted customers (Britton, 2017).
STRATEGY FOR STRENGTHENING BRAND EQUITY
Aaker’s brand equity model
This model of brand equity takes into consideration five categories of assets and liabilities
which have an impact on the value of products and services. These are:
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Figure: Aaker’s brand equity model
Source: Eisingerich et al., 2016
BRAND LOYALTY
Under this model, brand loyalty has been defined as the currency of brand. The cost of
marketing is substantially reduced when brand loyalty is high. The organizations are being
provided with time to implement strategies which would be helpful in gaining competitive
advantage (Eisingerich et al., 2016).
BRAND AWARENESS
This is the most important stage of brand building as it helps the customers in making
decisions for the purchase of a particular product and also in assisting them in purchasing
the products.
PERCEIVED QUALITY
The perception of the products is highly beneficial in providing extra benefits as compared
to the actual features of the brand. However, the perceived quality of the brand is only
beneficial in a shorter period of time (Çifci et al., 2016).
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BRAND ASSOCIATIONS
The brand association is the capability of the brand in creating its image for the customers,
developing a positive attitude for a product and facilitating association for the customers. It
also helps extensively in enhancing the buying process and communicating the available
brand extensions within the market (Lloyd and Barber, 2016).
OTHER PROPRIETARY ASSETS
This comprises up of trademarks, channel relationships, and patents which are being
adopted by organizations for safeguarding and securing the brands.
REINFORCING AND REVITALIZING BRANDS
Brand revitalization can be defined as the strategy of recapturing the lost brand equity and
also in identifying and establishing the new sources of brand equity. The revitalization of
the brand comprises up of repositioning the brand and also modifying the products.
Making modifications in an existing brand is compared as a highly beneficial strategy as
compared to the launch of a new brand (Sinclair and Keller, 2017).
Figure: Brand Reinforcement Strategies
Source: Kapferer and Bastien, 2017
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This strategy can be seen in the example of Ford. The company has been successful in
determining that the use of an existing brand name would be highly beneficial as compared
to a new brand name. For this reason, ford has taken the decision of adopting the Tauras
Brand name, which has been highly beneficial in generating 90% of the brand recognition
and brand image (Qiao and Wang, 2017).
CONCLUSION
Branding is considered as an essential promotion tool which helps in increasing the sales of
the products and also in undertaking promotional activities. Strong brand image is capable
of persuading potential customers for making a purchase of their merchandises and
services. The brand has the potential of impacting the buying decisions of the customers by
educating them and also resolving the business problems (Qiao and Wang, 2017). Branding
helps in ensuring differentiation by communicating essential attributes such as mission
statement and value proposition. Branding is also highly beneficial in differentiating the
products from that of the competitors and in establishing a strong identity, which would
encourage them to make repetitive purchases of the products. Branding also helps in
increasing the overall sales and market share. It is also evident that branding is capable of
overcoming the temporary crisis of the company.
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LO2
Brand Portfolio Strategy
Brand portfolio refers to the collection of brands under a single company. Brand portfolio
can be of multiple types such as company can launch various products under the same
name or can launch with a different or new name of the product in the market (Keller,
2016). The study of brand management effectively helps in order to understand various
strategies for managing brands of business. Following are the brand portfolio strategy:
House of Brands
House of brands strategy is very risky but very effective brand portfolio strategy in which
business introduces many products with the different brand name but controls by a single
parent company. In this strategy, consumers know or aware of the products by the sub-
brand or the brand name through which the company launched its products. P&G adopted
house of brands portfolio strategy as it has many brands such as Pantene, Gillette, Pampers,
etc. through the house of brands portfolio strategy business can promote its different
brands and increase sales of the parent company (Hayran et al., 2016).
Figure: P&G brand portfolio “House of Brands”
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Source: Hayran et al., 2016
Advantage: It is a very effective strategy in which a company can launch different products
under different names and target customers of that particular segment. It is also effective in
expanding business coverage through various multiple brands.
Disadvantage: This strategy is very risky as customer usually aware of the parent
company but not its sub-brand which may reduce the business of the company. Also,
managing all brands is very tough and challenging.
Branded House
Branded house is very simple and basic brand portfolio strategy which adopted by the
many business organizations. Usually, the company having very strong brand image
adopted this brand portfolio as the brand already known by the most part of the world and
launching products under the same name avoid confusion for the customers which
ultimately increase business sales (Heding et al., 2015). The best example of branded house
brand portfolio is Google Company which launches every product or services through the
same name such as Google duo, Google image, Google lens, Google Pixel, etc. because of
having a very strong brand image.
Figure: Brand Portfolio Google
Source: Heding et al., 2015
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Advantage: As the brand is already been popular among the people company won’t have to
spend additional money on advertisement. Managing all the brands is easy as well as have
less risk.
Disadvantage: Product launched under a single brand so if the main brand image got
negative reviews that leads to destroying the image of all the products of the same brand.
Above are the two brand portfolio strategy adopted by the business organizations, each has
some positive and negative which should be considered before adopting as choosing good
brand portfolio strategy is very crucial for the business organization.
Illustration of the Hierarchy
The company deals in many categories such as from beauty and care to health products.
The company's all the products have their own brands which are managed by the P&G
(Kapferer, 2015). P&G refers to a master brand of all the brands that are launched by the
business.
Figure: Brand Architecture of P&G
Source: Kapferer, 2015
As shown in the above figure P&G launched various products of different category with
their own brand name such as in hair products there are multiple sub-brands of P&G which
is Pantene, Head, and Shoulders, etc. the brand architecture covers almost all the areas of
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