Analysis of Coco-Cola's Brand Management Strategies and Techniques

This report provides a comprehensive analysis of brand management, using Coca-Cola as a case study. It explores the significance of branding as a marketing tool, highlighting its role in gaining competitive advantages and establishing brand equity. The report delves into the key elements of a successful brand strategy, including brand awareness, brand loyalty, and brand association, and discusses the challenges faced by Coca-Cola in a globalized market. It then examines various portfolio management strategies, brand hierarchy, and the Consumer-Based Brand Equity (CBBE) model. The report also covers the establishment of brands through collaboration and partnerships at an international level, including brand extension techniques. The analysis provides insights into how Coca-Cola has managed its brand over time, and the strategies it employs to maintain its market position and brand value.

BRAND
MANAGEMENT

INTRODUCTION
Management of brand refers to the procedure of analysing or planning about how a
brand could exists or comprehend in marketing place. This is nothing but a process of
accumulating various intangible and tangible factors. Different components that categorises as
tangible one are costing, wrapping and physical appearance of a commodity. On the contrary,
experiencing received by a user that occurs after utilising products of popular branding of an
enterprise and its relationship with that brand falls under non - physical factors. The major
advantage of efficacious brand management is that it aids in holding a wide region of
marketplace as well as marketing sharing. Hence, in turn it helps in increasing turnover of the
firm (Smith, Smith and Wang, 2010). The current project is designed on the basis of an
illustrious brand that is Coco – Cola. It is an American internationalist beverage company,
merchant and maker of non – alcoholic drinkable products. In this report ,the importance of
branding is represented in terms of commercialising tool.
SECTION 1
P 1. Significance of branding as a marketing tool and way of its emergence
The brand can be characterized as a name that is provided to an offerings and service
within a corporation in order to distinguish it from other goods of its rivalries. This has been
recognised that branding acts a marketing tool that provides so many benefits. It plays a vital role
in seeking attention of large number of customers and retaining the, for a long period of time as
well. The value of management of brand as tool can be understood clearly by following points:
 Brand provide competing advantage: Brand helps in gaining competitive benefits as it
contributes in differing goods and services of one venture from others. Thus, consumers
get attracted and prefer them most and as a result selling rate of that organisation
enhances drastically.
 Brand offers a stabilised assets: The main reason of why brand is necessary is that it
retains same and provides different profitability to organisation for a period of time
(Solomon, 2014). Coca - Cola is the very famed brand that exist in this corporal era from
around more than 125 years. At the same time, most valued and modish brands are
already existing for approx. 30 to 50 years.
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 Brands gives economical value: Economical worth of an enterprise is mainly detached
into two sectors that is tangible and intangible assets. The term brand falls under an
intangible resource. The name of brand like Coca-Cola has been earning around $70
million and it has observed from a report that, more than 55% of stock value of this firm
is available at marketing place (Spence and Hamzaoui Essoussi, 2010). Therefore, in total
it can be stated that, branding is playing a crucial role in drawing in skilled workers, share
- partners and clients towards the products or services of the venture.
 Brands set expectations: Brands are best-known for the expectations or promises that are
made by particular venture to its potential consumers. Brand gives commitments to the
targeted market about what they are going to offer in terms to quality and values. Thus,
company should be capable of completing their all promises as it would going to describe
its successfulness as well as failures. But when any organisation got failed in meeting
their commitments then it will make a bad image of brand. Various products of Coca-
Cola comprises of special characteristics (Story and Hess, 2010). It contains calories free
and also sugar free beverages that helps them in constructing a powerful customer base.
This has been noted that most of the consumers are getting confused with these two terms which
is products and brand as they understand them same but actually it is variant in meaning that can
be is clarified from below mentioned points :
Brand Product
It is a different and unique term that indicates
special orientating of a merchandise in
marketing location.
On the other hand, it is stated as an aggregation
of several properties that an enterprise provides
via its deliverables for sale in the marketing
place in order to meet the demands or needs of
consumers.
It could not be traced by any another firms. Whereas it would be copied by any of the firms
as every venture could design identical goods
or services.
Elements of brand generates perceptions in the
mind of users and is also considered as
intangible in nature.
Where as, they are treated as tangible in nature.
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P 2. Main elements of a flourishing brand strategy for creating and maintaining equity of brand
Brand equity can be simply referred as a commercialised measure of a brand that is being traced
from users' perception which emerges after using a product and service of particular brand rather
than from the goods or services itself (Vigneron and Johnson, 2017). Therefore, for maintaining
brand equity, organisations require to design good or better quality deliverables and services to
their possible clients' group. For instance, each and every consumer of Coco – Cola has been
enjoying a lot by taking their cold drinks. Hence, it can be said that they are maintaining brand's
equity in actualised term as they are meeting all the requests of their users. There are some
primary elements of a successful brand scheme that assist in building as well as managing brand
equity. Few of them are mentioned below :
 Brand awareness : This is treated as one of the primal constituent that is related with
brand and are being used for attracting vast number of civilians towards their deliverables
and message. For making a brand successful, it is essential that every individual should
be alert about all goods and service which are being manufactured by the company. For
instance, Coco – Cola is almost renowned brand serving in nearly all regions and in this
modern era, each individual even a small child is being familiar with their products or
beverages.
 Brand Loyalty : It can be defined as the user's positive conceptualization and
believability level in terms of branding value while purchasing a particular product and
service. Essentially, this refers to the fidelity of clients while making a decision regrading
purchasing from an enterprise at the same time when there are various other substitutes
acquirable in that market. For example, Coca-Cola provides different forms of
commodities or services that aids in receiving the tending of buyers.
 Brand Association : This term is connected with symbols, logos and punch lines of a
firm that is being utilised for depicting a unique brand image in front of potential users so
that they can easily identify its brand even in rush of another firms (Iglesias, Singh and
Batista-Foguet, 2011). This is very important in corporate world which aids in generating
optimistic image of enterprise among customers.
In spite of this, some of the challenges are faced by Coco - cola while developing its
brand image. Due to increment in globalisation, different companies are also presenting or
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starting their business in the identical sector that in turn is generating several challenges and
problems for cited company which are explained below :
 Quality of products : Coca – Cola is offering various types of low calories beverages
that are being liked by most of children and adults also. But some people do not prefers it
as they thought that this would negatively impact on their health or body. Due to this,
their selling rate decreases (Kapferer, 2017).
 Development of rivalries in market : This has been observed that large number of
competitors of Coco – cola are increasing day on day. Therefore, it is creating so many
great challenges for them. For example, Pepsi Co, etc. are considered as major challenger
of this brand which are offering same deliverables, thus reducing the number of clients of
Coco Cola.
SECTION 2
P 3. Different schemes of portfolio's management, brand hierarchy and management of brand
equity
Brand portfolio strategy
When large firms is operating under more than one brands and services, then planning of brand
management of portfolio is being applied. For organising all deliverables , enterprise covers all
those activities under one umbrella. For illustration, Coco – Cola used to design and offer
various types of products such as Sprite, Maaza, Fanta ,Thumps – up, etc. For this, efficacious
strategy could be utilized by company that can understood by below written terms :
Driving revenue and profit growth : Organisation emphasis on forming their offerings more
unique for seeking attention of large number of citizens (Keller, Parameswaran and Jacob,
2011). This as a result, assists in making affirmative image of brand in market - place and at the
same time, it also assists in keeping those users for long period of time.
More efficiency : Different types of tools and techniques can be applied by company in order
to run their business operations most efficiently. This also supports mentioned enterprise in
selling their deliverables at lower prices.
Investment in business : Venture ought to enhance its investment or funding in specific
business actions. Additionally, they should also focus on different activities such as promotions
and advertisements. Via this, Coco – Cola can covey its message to large number of
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civilisations in UK.
Management hierarchy of Coco – Cola
Umbrella brand : This involves utilisation of single brand for marketing more than one goods
and services. This could be used by Coco- Cola and they would also easily use positivism
regarding brand equity. But this is some how variant from brand extension since umbrella
branding includes merchandising of related kind of products under one brand name.
Products : Coco – Cola has been offering various types of beverages such as Maaza , Fanta,
coco-cola, Sprite and many more.
Pepsi co :
Umbrella branding : The given company is applying this brand of umbrella for offering its
several types of servicing and productions under individual brand.
Products : Tropicans,Mountain dew and several other soft drinks has been designed by them.
Brand equity : This represents such commitments that it has promised from their users
regarding of offerings. This is adding values in its popularity of brand.
CBBE model (Consumer based brand equity)
CBBE frame - work aids firm to manage brand equity in an effective way. This was planned by
sir Kevin Lane Keller (Kunerth and Mosley, 2011). According to him, brand is term that is
representing the perceptions and feelings of consumers that helps enterprises in shaping their
goods or services so that they can satisfy clients by their meeting needs and requirements.
Therefore, this promotes or encourages civilians in purchasing their offerings in large number.
Benefits of CBBE model
Brand identity : It contributes in identification of specific attribute of a brand in relation to the
competitors.
Brand meaning : This model also presents clear message of brand and as a result ultimately
help in reducing the misunderstanding that happen among users.
Brand response : This represents responding of customers towards the production which is
being manufactured by above mentioned corporation and thus, by this way they can understand
the manners or styles to gain more profitability.
Brand resonance : This framework supports in making positive icon or picture of enterprise in
the eyes of citizens in comparison to its competitors.
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P 4. Establishment of brands in collaborative and in partnership at international level
Brand extensions is a technique that is usually being utilised by large organisations for
managing their brands in a collaborative way and doing partnership at global as well as
domestic level. This method is used for companies for adding different new things in terms of
characteristics or quality to the current deliverables in order to compete from other rivalries.
Coco cola and Pepsi are two best known brands that is operating at international level. Both of
them need to apply effectual strategies for acquiring new marketing segment (M'zungu,
Merrilees and Miller, 2010). Additionally, this also supports in doing business in collaboration
or partnership. For this, they can use Ansoff matrix which is stated below :
Product development strategy : As per this scheme, firms require to extend their production
by manufacturing different variants. Besides this, it includes repackaging current deliverables. It
is to be noted that this strategy is used for the same market place.
Market development strategy : This is applied when company wishes to enlarge its business
in other new market place but for this, they require to use same products. Herein, they also have
to target various geographical regions at domestic or global level. For this, firm need to carry
out PESTLE as as SWOT analysis so that impacts of macro and micro factors on the
performance of company can be determined respectively.
Market penetration scheme : This is used for encouraging large number of users for buying
existing goods or services at current marketing place. This would be done by launching pricing
and other specific promotions or introducing a loyalty scheme.
Diversification : This is proved to be risky as herein an organisation is moving towards a new
market location by designing new products as well. Thus, this completely different from their
past backgrounds since companies are attempting for selling totally new deliverables to new
civilians.
The above discussed methods are proved to be very advantageous for the expansion of
enterprise's commercial activities. Coco – Cola and Pepsi can utilise such plan of actions as per
their needs and can easily run their business by establishing partnership and collaboration.
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P 5. Various types of methods for measuring and maintaining brand value
Every venture faced lots of challenges and risk due to competition in the external environment.
Organisation has to work hard to maintain their place in market by fulfilling needs and wants of
customers (McDowell, 2011). This type of competition is faced by almost all organisation.
Coca- cola is a very famous brand and is loved by customers. Due to their famous brand they
have to face tough competition by other competitors also. It is necessary for every business to
evaluate their value of brand in order to know about their actual position in market.
Evaluating several techniques utilised by the coca cola are:
Brand Measurement techniques – Company adopts different tools to measure their brand
value in market. These techniques help company to know their market situation and make
necessary changes to maintain that. Various techniques that are adopted by Coca- Cola are:
Quantitative techniques – This techniques involve numerical representation from which
proper information can be acquired. Sub methods that are involved are: Brand image and
branding awareness.
Qualitative methodology – It is stated to be an unorganized approaching in which consumers
are interviewed for judging value related to brand of company. Responds of customers are
evaluated decently and decisions is made according to evaluation. In this other methods are
included such as : experiment tools, free association and projective approaches etc.
Comparative Techniques – In this technique behaviour of users and response are evaluated
and observed to estimate the gains and profits that arises due to strong brand image (Qian,
2014). This technique involved important approaches that are: marketing and brand based
comparative approach.
For Coca- Cola For Pepsi
It is well established and recognised beverage
company in market. It is the largest cold drink
company. They have to formulate strategies
Pepsi is also one of the top most beverage
company and is well established in market. It
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effectively so that they can maintain their
position.
Other method adopted by coco- cola is:
Brand Awareness – It is qualitative research
process in which company formulate marketing
tactics so efficiently that customers have strong
brand image in their mind about the company.
give tough competition to Coca Cola.
They use technique like:
Brand Based Comparative approach – In this
approach customers are targetted and evaluated
about products of same company and their
responses are recorded. Products like, 7up,
Pepsi, Tropicana are some of Pepsi products.
Brand equity audit and Tracking Techniques-
Brand audit is important for any company to track their actual situation in the market place.
Every company should perform brand audit. This will help them to know where they stand in
market. Following elements are included:
Strengths and weaknesses – Under this, strengths and weakness of both companies are
discussed and evaluated.
Market context- In this, both companies identify various components that will pose great
impact on the market (Brand Management- Meaning and Important Concepts. 2017).
Competitive tactics and Strategies – Strategies are formed by considering competition and
formulating according to that.
Brand Tracking – It is a process to make effective brand image in the minds of customers.
Their main motive is to satisfy their customers.
CONCLUSION
From the above based report, it can be said that brand management is an eminent
marketing tool that is being used by every powerful and large company such as Coco – Cola and
Pepsi. This also acts as a promotional technique by this information regarding products or
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services can be conveyed easily to potential consumers and attracting as well as retaining them
for a long time period. Different components of successful brand strategies has been discussed in
this assignment. In addition to this, various strategies of doing portfolio management, brand
hierarchy and brand equity management has also been explained clearly.
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REFERENCES
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Story, J. and Hess, J., 2010. Ethical brand management: customer relationships and ethical
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McDowell, W. S., 2011. The brand management crisis facing the business of journalism. The
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Online
Brand Management- Meaning and Important Concepts. 2017. [Online]. Available through:
<http://www.managementstudyguide.com/brand-management.htm>.
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