Brand Management Report: Building and Managing Brands Over Time

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BRAND MANAGEMENT

Contents
Introduction................................................................................................................................... 2
Task 1- managing building and brand overtime.............................................................................3
Introduction............................................................................................................................... 3
Stages involved in building a successful brand......................................................................3
Importance of marketing department in brand equity............................................................4
Body.......................................................................................................................................... 4
Conclusion................................................................................................................................. 6
Importance of branding as a marketing tool...........................................................................6
Task 2 – Brand portfolio and hierarchy management (LO2).........................................................7
Brand portfolio strategy of the Virgin group company..............................................................7
Hierarchy management of brands..............................................................................................8
Management of brand equity of Virgin Group Company........................................................10
Task 3 – Brand extension and leverage (LO3).............................................................................12
Strengths of the brand..............................................................................................................12
Weaknesses of the Virgin Atlantic brand and suggestion........................................................13
Collaborative and partnership agreement with the brand and its benefit..................................14
Task 4 – Measuring and managing brand value (LO4)................................................................15
Brand value..............................................................................................................................15
Brand awareness...................................................................................................................... 15
Market share............................................................................................................................ 16
Consumer attitude....................................................................................................................16
Purchasing intent..................................................................................................................... 17
Conclusion................................................................................................................................... 18
References................................................................................................................................... 19
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Introduction
Brand management includes the analysis and planning of how a brand will be perceived among
the customers. It requires developing and building good customer relations among the target
market. Management of brand increases the perceived value of the brand over some time.
Effective brand management helps in creating brand awareness that builds customer loyalty
towards the brand (Rosenbaum et al., 2015). Development of a strategic brand management plan
requires a clear idea of the company's target market area, vision and comprehensive vision of the
brand. A strong brand is necessary for a business to grow in a competitive business environment.
In this assignment report, the discussion will be done on the importance of brand and how a
brand is created and managed over time.
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Task 1- managing building and brand overtime
Introduction
A brand is a symbol, logo, name, design or any other attribute which differentiate a product or
business from other business in the market. A brand is the identity of a product or business which
helps it seller to gain competitive advantages in this globalized world. Today, every seller are
focused on building brand reputation in the market by providing quality services and the
products (Heding et al., 2015)
Brand equity term is related to the marketing that includes brand value and it can be generated
from the value of the product perceived by the customers. Today, companies are creating their
brand equity by manufacturing their products or services easily recognizable and superior in the
quality which differentiates them from the competitors (Pappu and Christodoulides, 2017).
Stages involved in building a successful brand
Brand building is the process which defines the true brand image of the product in the mind of
the consumers. It is the most significant phase of building brand equity in the market. Some steps
in building a brand are defined as follows:
Identify the target audience
It is important for the company to define its target audience to whom the seller is going to sell its
products. The nature and features of the offering are also determined by preferences of the target
audience (Urde, 2016)
Work on the brand mission
The whole management of the organization should clearly define the brand mission statement
which considers long term business objectives (Urde, 2016)
Market research
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The management of the organization should complete the market research to know about the
competitors in the market this will be good for the organization to differentiate its offerings from
the competitors (Urde, 2016)
Create a unique value proposition
It is essential for an organization to define unique selling points of its offerings which
differentiate them from the competitors plus it will attract the customers (Urde, 2016)
Decide Brand guidelines
The guidelines should be set for the brand in terms of its brand strategy and visual elements and
it should be a compliment in nature (Urde, 2016).
Market the brand
The management should market the brand by taking participation in promotional events,
advertising, sponsoring the events (Urde, 2016).
Importance of marketing department in brand equity
 The marketing team of the organization shows its responsiveness by advertising and
promoting the brand in the market (Feng et al., 2015)
 Marketing department identifies the target audience by conducting the market research
 The marketing team takes responsibility of planning and implementing brand strategy
(Feng et al., 2015)
 Brand of the organization is communicated by the marketing team that creates customer
awareness for the brand (Feng et al., 2015)
 Marketing team oversees the area of brand management
Body
Successful strategies for brand management
Many companies are using different brand management strategy to strengthing brand equity,
brand extension, reinforcement as well as to overcome from the brand crises. Here the brand
management strategy of the Nestle will be discussed by applying David Aaker’s model of brand
equity (Tanveer and Lodhi, 2016).
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Aaker’s model of Brand Equity
Researcher and founder of brand equity model David Aaker stated that brand equity is the
combination of different elements by which a successful brand strategy is formulated. These
elements create brand value in the market and also help in overcome the crises (Tanveer and
Lodhi, 2016).
Figure 1 DAVID AAKER'S BRAND EQUITY MODEL
Source: (Ahirrao et al., 2017)
Brand loyalty
Brand loyalty is termed as the loyalty of the consumers towards the products and services. Nestle
is continuously focusing on developing quality products to enhance customer loyalty (Ahirrao et
al., 2017)
Brand awareness
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Brand awareness helps in creating knowledge of the brand among the target audience so that
they can evaluate their purchasing behaviour. Nestle already has highly recognization of its
brand which helps people to make their purchasing decision (Ahirrao et al., 2017)
Perceived quality
It includes the level of perception attained by the consumer while they receive the product and
services. The perceived quality should meet with the customer's expectations. Nestle is providing
quality products to fulfill the customer's expectations (Ahirrao et al., 2017)
Brand association
Brand association includes various elements of the brand which helps in understanding the
consumer behaviour towards the products. Nestle has created its brand association successfully
by launching different products (Ahirrao et al., 2017)
Other proprietary assets
Brand equity is also created by utilizing effective advertising and promotional tools as well as
patent, trademarks to differentiate the products. Nestle is advertising its products using TV, radio
and newspaper along with this it has an attractive logo and trademark which helps the people to
make their purchasing decision
When Nestle was criticized for its Maggie product in the market it was stated that Maggie is not
good for the health than the company has conducted many market research and improved the
quality of the product. It also used an efficient advertising technique to reinforce the brand
among the customers. Good market reputation and marketing strategy helped the company to
overcome the brand crises (Mishra, 2017).
Apart from this Unilever also created good brand equity by implementing its brand management
strategy. The company has given priority to the customers and developed products according to
their desire. Unilever developed only those products that consumers cannot live without
purchasing and also shared the magical experience with the customers.
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Conclusion
Importance of branding as a marketing tool
 Branding helps in identifying the customers need and encourages a company to develop
the products which satisfy its customers need (Brown et al., 2017)
 Branding of a product helps in informing the customers about the company’s offering
 Branding establishes an emotional connection with the target audience (Brown et al.,
2017)
 It helps retaining old customers and to attract the new one to purchase the products
 Branding helps in increasing the sales of the products in the market (Brown et al., 2017)
 Credibility and identity of the brand created by the branding of the products and services
 It helps in delivering brand value which increases customer loyalty and customer
satisfaction (Brown et al., 2017)
Task 2 – Brand portfolio and hierarchy management (LO2)
Brand portfolio strategy of the Virgin group company
When an organization is having a collection of the brand under the same company name is
termed as a brand portfolio. Large multinational organizations may have many brands but the
small organizations may have single brand in their portfolio. Brand portfolio is nothing but a
group of brands under a single organization name. Brand portfolio is consist of three models
which defines the brand portfolio of an organization (Nguyen et al., 2018)
House of brands
House of brands includes several brands under a single organization name. house of brand
strategy is used by a large organization that is dealing with multiple brands in the market. All
brands are developed and controlled by a single organization in the market In this model when a
brand is losing its market share it does not impact the other brands (Henfrey et al., 2018).
Virgin Group Company has several brands under the same company name and it is selling its
products across various countries. It has many brands like Virgin Atlantic, Virgin Australia
holding, Virgin rail group, Virgin vacations these brands are dealing in the travel sector. Virgin
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active is the gym chain of the company. Virgin care belongs to the health sector. Hence Virgin
group has a large brand portfolio that satisfies different product needs of the customers (Virgin,
2019).
Source: (Virgin, 2019)
Branded house
When a company uses a single brand name for its different products is termed as the branded
houses. Under this model only a single brand name reflects the identity of the products such as
Apple is using this model for creating the brand identity of its mobile, MacBook and other
products (Henfrey et al., 2018)
House of blend
This model includes the feature of both the model. When a company uses characteristics of both
the model is called the house of the blend. Microsoft Corporation is using this model (Henfrey et
al., 2018).
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Figure 2 BRAND PORFOLIO OF THE VIRGIN GROUP COMPANY

Hierarchy management of brands
Brand hierarchy summarizes the brand strategy of the company by arranging and displaying the
number of brands according to their nature and distinctiveness of brand elements across the
company's products. It reveals a sequential presentation of the brand in a specific order. Brand
hierarchy of an organization helps in understanding the products and services offered by the
company. When an organization has a different product line to offer and the relationship between
the product is extremely vague than an organization should define a clear structure for its brands.
Brand hierarchy of the Virgin group company is defined as follows:
Figure 3 BRAND HIERARCHY OF VIRGIN GROUP COMPANY
Source: (Preston, 2017)
Brand hierarchy of virgin company includes more than 200 brands and sub-brand under the
virgin name. Virgin Money, Virgin Atlantic, virgin active, virgin mobile all these brand have a
good market reputation (Hodgson, 2019). The virgin company uses a unique approach to extend
its brand without losing customer loyalty. The Virgin brand began with Virgin records in 1970
and after those virgin Atlantic airlines launched by the company. Virgin Group Company has
developed its brand into different sectors such as healthcare, telecommunication, travel,
hospitality, entertainment, banking, media, sports and charities (Preston, 2017).
Hence, the brand hierarchy of Virgin Group Company is consisting of several brands and each
brand is delivering good value to its customers. The unique and separate brand of the company is
helping in achieving competitive advantages in the different business sector. The product of the
Virgin group company is satisfying the various needs of the customers. Virgin Group Company
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is one of the Large multinational corporations of the UK that includes several brands and uses
house of brands strategy to grow in the market (Preston, 2017).
Management of brand equity of Virgin Group Company
Management of brand equity is essential for an organization because it improves the perception
of the brand in the customer mindset. Here the management of brand equity of Virgin group will
be understood through applying Keller's Brand equity model
Keller’s Brand equity Model – CBBE Model by Keller
This model defines the existing relationship with the brand and its customers. in this model, the
brand strategy is designed to satisfy the customer's requirement. Virgin Group Company uses
this model to manage its brand equity and brand position in the market (Çifci et al., 2016)
Figure 4 KELLER'S BRAND EQUITY CBBE MODEL
Source: (Davin, 2017)
Brand identity
Brand identity defines how a customer perceives the brand. It defines the knowledge customer
has about the brand. Virgin Group Company has successfully created its brand identity by
developing different products from its competitors (Davin, 2017).
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Brand meaning
It represents the characteristics, features and attributes that a brand carries. The products of
Virgin Group Company are reliable, qualitative and provide value to the customers (Davin,
2017).
Brand response
This includes the response of the customers towards the brand that reflects their judgement and
emotions. Virgin Group Company is gaining a higher response from its customers because It is
developing those products which satisfy customers need effectively (Davin, 2017)
Brand resonance
Positive attitude and behaviour of the customers towards the brand help them to get connected
with the brand and encourage them to make repeat purchases. The virgin group company is
achieving higher customer loyalty by providing better value for money (Davin, 2017).
Some other brand management strategy used by Virgin Group Company
Strong brand association
Virgin company is communicating and effectively positioning its brands in the market. Examples
of its brand association are complementary products, expertise and benefits or attributes (Pappu
and Christodoulides, 2017).
Strong quality association
It has established a brand name which is resulting in the perception of higher quality. It is
delivering high-quality products and services in the market (Pappu and Christodoulides, 2017).
Higher brand awareness
Virgin is using different advertisement and promotion technique to create brand awareness
among the customers. 96% of UK customers are aware of their brand (Pappu and
Christodoulides, 2017).
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