Analysis of Brand Management Strategies: A Case Study Approach

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BRAND MANAGEMENT
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Contents
LIST OF FIGURES.............................................................................................................................3
INTRODUCTION............................................................................................................................. 4
LO1.................................................................................................................................................5
LO2............................................................................................................................................... 16
LO3............................................................................................................................................... 21
LO4............................................................................................................................................... 24
CONCLUSION............................................................................................................................... 26
REFERENCES.................................................................................................................................27
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LIST OF FIGURES
Figure 1: Nike Logo........................................................................................................................ 5
Figure 2: Adidas............................................................................................................................. 6
Figure 3: Amazon...........................................................................................................................7
Figure 4: McDonalds......................................................................................................................7
Figure 5: Coca Cola Bottle..............................................................................................................8
Figure 6: Apple...............................................................................................................................8
Figure 7: Virgin Atlantic............................................................................................................... 12
Figure 8: Virgin Mobile.................................................................................................................12
Figure 9: Aaker’s Brand Equity Model..........................................................................................13
Figure 10: Rolex Logo...................................................................................................................13
Figure 11: LEGO........................................................................................................................... 14
Figure 12: P&G Brand Hierarchy..................................................................................................17
Figure 13: Google Brand Hierarchy..............................................................................................18
Figure 14: Facebook Brand Hierarchy..........................................................................................18
Figure 15: Keller’s Brand Equity Model........................................................................................20
Figure 16: Gillette........................................................................................................................ 21
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INTRODUCTION
Brand management is one of the basic requirements of an organization which holds the brand
so that it can ensure that the brand is being perceived positively in the market (Chernev, 2018).
Through the report which has been produced, the importance of brand management for an
organization has been examined and the use of brand management in the successful
management of brands by the different organization shall be studied. The steps that are
required to be taken by an organization for the establishment of a brand shall also be
undertaken by this report. The report shall also cover the building of brand hierarchies and the
different ways through which brands shall be managed over different locations of the world
over a different period of time.
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LO1
“Brand is Power”
INTRODUCTION
A brand can be defined as a unique symbol, sign, design or all of these factors combined to
provide a unique identity to a product or service. Brands are being established by the
organizations so that its products and services can be differentiated from the products and
services of its competitors (Beverland, 2018). The brand associated with the organization
provides credibility through which it can be distinctively identified in the market.
Meaning of Brand
Brands develop a specific perspective in the minds of the customers through which they gain a
perspective of trust, promise, quality, etc. The concept of the brand reflects the perception that
the consumers in the market hold regarding the product and holds a huge impact on the
consumer market (Rahman et al., 2018). Using a brand name provides the satisfaction of the
customers and assures them for gaining the key element which the customer has been seeking
through the purchase of the brand.
Figure 1: Nike Logo
[Source: Nike, 2019]
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Each brand name, sign, symbol, etc. hold a specified meaning which has interrelation with the
different elements of the organization. For instance, Nike holds a brand symbol as a sign of the
right tick which holds the meaning of being the first. This brand symbol of Nike has been
inspired by the Ancient Greek Goddess of Victory. The name, symbol, sign or a combined
version of all is selected by an organization which provides as specific meaning to the product
or services that are offered by the organization (Wheeler, 2017).
Elements of Brand
For building a brand, there are different elements that are being considered by the
organization, which have been listed in the following:
 Brand Name
The brand name refers to the word or phrases that are used so that customers can
understand and spell the brand (Heding et al., 2015). These are the words that can be
understood by the customers and holds a huge impact on the creation of the brand. For
example, the brand name of Adidas has been originated after the owner's nickname
being Adi. Adolf Dassler’s nickname and last-name were combined to determine the
brand name of Adidas.
Figure 2: Adidas
[Source: Adidas, 2019]
 Brand Logo
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Logo of the brand is one of the most effective and essential elements of a brand as it is
the key symbol, sign or design which allows the customers in uniquely identifying the
brand (Urde, 2016). Brand logos are considered as the appearance and recognition of
the organization. For example, the brand logo of Amazon has the name of the
organization written below which is an arrow which starts with ‘a’ and ends with ‘z’
which represents that everything is available at the organization.
Figure 3: Amazon
[Source: Amazon, 2019]
 Brand Theme Line
Theme line that is associated with the brand is also considered to be an essential
element of the brand as it represents what is being provided to the customers
(Seimiene and Kamarauskaite, 2014). Brand theme lines are mostly termed attractive so
that they can be recognized by the customers easily through fixing into their minds. For
instance, the theme line of McDonalds says “I’m Loving It” which has been used by the
brand and can be recognized by the customers easily.
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Figure 4: McDonalds
[Source: McDonalds, 2019]
 Brand Shape
The shape of the brand is also a significant element of branding as it represents a
distinctive shape which has been taken by the products of the organization and can be
identified by the customers separately (Aaker and Joachimsthaler, 2012). For example,
the shape of Coca Cola Bottles has been used by the organization so that it can
distinctively represent the organization’s products.
Figure 5: Coca Cola Bottle
[Source: Coca Cola, 2019]
 Brand Positioning
The positioning of the brand can be defined as the position that the identity of the
organization holds in the minds of the customers so that it can be distinctively identified
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from that of the competitors (Farhana, 2012). Mostly, the positioning statements are
being produced by the brand organizations to set it separately from the other market
players. For example, Apple has positioned itself for providing a high quality of
innovative products through its positioning statement is ‘Think Different'.
Figure 6: Apple
[Source: Apple, 2019]
Brand Equity
Brand equity can be defined as the value which has been derived by the organization through
its brand. Brand Equity is being used by the organizations to provide higher value to the
customer and is able to develop higher profits through the same (Aaker and Biel, 2013). The
equity of the brand can be determined by the perception that the consumers have been
holding regarding the brand. For example, Gucci is a premium designer brand which has
established huge brand equity for its organization. The brand holds equity in the market by
providing exclusive products and holds a limited number of stores to maintain its equity in the
market. Gucci operates in the niche and thus has its brand equity being established as an
exclusive and expensive brand.
Brand Equity stands of huge significance for an organization as it assists in increasing the
market share held in the industry by the organization (Buil et al., 2013). With the establishment
of brand equity of the organization, the firm is able to charge premium prices for its products as
the customer brand loyalty is being established in the market. For example, Porsche has
established its brand equity worldwide in the automobile sector for which it is able to ensure
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that its brand is being established as a luxury one and it allows the organization in charging the
products at a premium range.
Brand equity also allows the organization in increasing its negotiation power with the different
stakeholders which are related to its business as the firm holds a competitive advantage
through the establishment of brand equity (Keller, 2016). The power of negotiation allows the
organization in reducing its costs of productions and thus increases its profitability. For
example, the high brand value of Starbucks has allowed the organization to gain a competitive
advantage in the market by reducing the costs of its raw materials and increasing its overall
profitability.
Building a Successful Brand
The process of building a successful brand is essentially required to be adopted by the
organization so that it can ensure that the established brand holds higher value in the market
and the brand is not being perceived in a negative manner in the industry (Aaker, 2012). In the
following certain steps have been identifying through which an organization can build a
successful brand in the market:
 Conducting Strong Market Research
The initial step of the creation of a brand by an organization is to conduct efficient
market research to identify the requirements in the market and determine the areas
through which higher values can be provided to the consumers (Pearson, 2016). It
would also allow the organization to identifying characteristics within the organization
that can be associated with the brand.
 Define the Target Audience
It is essential for building a brand that the organization identifies the target customers
to whom the products of the brand shall be provided to (Ind et al., 2013). Based on the
target audience, the organization can decide the deliverables through its brand.
 Create Value Propositions
After determining the target audience, the organization is required to determine the
value that has to be proposed to the customers through the established brand. The
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organizations ensure that the value is unique and innovative in nature so that it can be
distinctively identified in the industry.
 Consider the Different Elements of a Brand
Through considering the different elements of a brand, the characteristics of a brand
are being created by the organization (Atsmon et al., 2012). Through this step, an
attractive logo, name, symbol, etc. is being decided by the organization for the brand
that shall be established.
 Communicate and Deliver the Value
In this stage of brand creation, value is being provided to the customers through the
products of the organization (Millman, 2012). It is required by the organization to
communicate the target customers and highlight the value the products are being
provided so that it can be distinctively recognized.
 Maintain Consistency
For the establishment of a successful brand in the market, it is also required by the
organization in maintaining consistency in the quality and value of the product so that
the customers can receive the same value throughout the lifetime of the organization
and a successful brand can be established (Heding et al., 2015).
Role of the Marketing Department in Brand Equity Creation
For the creation of brand equity by an organization, the integration of the marketing function
has to be done so that its benefits can allow the organization in the creation of the brand.
Establishment of brand equity can be done by Optimum Impression Ltd with the assistance of
the marketing department through communicating the value they provide to the organization
(Lischka et al., 2018). For example, Facebook has established its huge brand equity through
using the marketing function which allowed the organization in communicating with the
customers and consistently increasing its value by creating more awareness.
Through marketing function, Optimum Impression Ltd can also establish its brand equity in the
market by getting a better view of the requirements of the customers (Kent et al., 2018). For
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example, Samsung has established its brand equity in the market through using the marketing
function to identify the needs of the customers and developing products based on the same so
that it can charge respective prices for the products.
Strategies for Brand Extension
Strategies of brand extension can be sued by the organization when the firm is willing to use its
brand equity for the establishment of a new business in a new market (Parker et al., 2018). For
example, Virgin Group has established its high brand value through the travel and tourism
industry. However, the organization has used its brand equity for entering into
telecommunications sector and use the existing brand value in the new sector as well.
Figure 7: Virgin Atlantic
[Source: Virgin Atlantic, 2019]
Figure 8: Virgin Mobile
[Source: Virgin Mobile, 2019]
Strategies for Brand Reinforcing
For reinforcement of brand equity, the application of Aaker’s Brand Equity Model can be
studied which holds five factors which altogether assist an organization. Rolex is a premium
brand which relishes high brand equity in the market (de Oliveira et al., 2015). In the following
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