Comprehensive Report: Brand Management Strategies of P&G

This report delves into the intricacies of brand management, using Procter & Gamble (P&G) as a case study. It examines the core concepts of brand building, emphasizing the importance of customer loyalty, brand awareness, and perceived quality, as outlined by the Aaker brand equity model. The re...Read More

BRAND MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
Brand is Power.......................................................................................................................2
TASK 2............................................................................................................................................5
What is brand portfolio strategy, hierarchy management of brands and strategies used for
managing brand equity...........................................................................................................5
TASK 3............................................................................................................................................9
What is brand leveraging, strength and weakness of brand and collaborative and partnership
agreement...............................................................................................................................9
TASK 4..........................................................................................................................................11
Measurement and Management of Brand value...................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Brand management develops a relation between target audience which is an essential
factor in brand management. Present study is based on Optimum Impression, it is an advertising
organisation. It helps in building loyal customers and enables the price to grow. It refers to
identifying the competitive advantage of a brand and then reflecting to targeted customers. This
report is based on P&G which is a consumer goods corporation and it particularizes in wide
range of health care, hygiene products and personal care. Its revenue is US $66.83 billion and is
expected to increase over years. This study will contain various brand portfolio strategies used
by P&G, its hierarchy management of brands, strategies used in managing brand equity. Report
also tells how to build and manage brands over time. Brand leveraging and strengths and
weakness of P&G are also covered in the report. Further report also contains various techniques
and measures used for managing brand values, brand awareness, market share, consumer
attitudes and purchasing intent.
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TASK 1
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Brand is Power
Introduction
A Brand is a name, design, symbol, term or any other characteristics that helps to
differentiate better goods of different sellers, Branding helps the companies to get recognition
and become known in the market (Beverland, M, 2018). Brand equity is a term mostly used in
marketing sectors, this describe the value of having a popular brand name, which gives an idea
that the owner of a popular brand name can collect more revenue from the recognition of brand.
The Aaker model brand equity views brand equity as combination of five categories, brand
awareness, brand associates brand loyalty, perceived quality and brand quality.
Successful brand building is process where the organisation need to overshadow the
competition and play and import part to create loyalty in customers. There are six stages of
successful brand building. This article is based on effective brand building strategies used by
P&G. Company has consciously learn from its experiences as well as from deep analysis of
consumers, competitors and markets. They are working on effective principles like doing the
right thing on time, cultivating a passion for winning, providing value to consumers and many
more.
Main Body
Aaker brand equity model- This model can help firm in creating the brand equity, loyalty and
awareness. It includes the following:
Brand loyalty- Firm can create brand loyalty by providing quality of products to consumers.
Brand awareness- This can be created by advertising the products of company in different social
media.
Perceived quality- They should provide quality goods so that value is created for them.
Brand association- They can associate with any other brand to create positive attitude in mind of
consumers.
Other proprietary assets- They have their own trademark which makes their own individual
identity.
Determining the Target Audience : The first thing to keep in mind is who company is aiming
to communicate with. Recognizing the target audience is basic and most important step
Define the Mission of Brand: Defining the mission of the brand create an image of existence
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and will guide the branding process across all channels
Analyse the Competition: Researching and analysing the unique factors of competition. Being
aware of competition activity can helps a lot in gaining competitive advantage.
Create Value Propositions: The focus should be on making the brand unique and valuable
Determination of Brand Guidelines: Brand guidelines define all the rules and regulation on
how to create a brand
Marketing of the Brand : Making a proper marketing plan to market the brand, Applying
branding in communication. Display of brand in every eye catching places as possible
Marketing department plays an important role in creating brand equity. All the marketing
campaign of marketing department are related to the product, price and distribution channels in
P&G. All this campaign is very necessary to create brand awareness and also builds a brand
image
The strategies which can be used by P&G to strengthen there
Brand Equity -
The P&G tries to improve the quality of their product and services (Borkovsky, 2017). That
maintain their goodwill
The Organisation analysis the trends of the market and strategies and activities of competitors,
then they operate their activities in more unique and more effective way (that attracts a lot of
customers)
Maintaining the image of an organisation is among one of the main objectives. They always
work in standards to maintain their positive image in the market, this gives them competitive
advantages in the market.
The P&G always try to mould there services according to the need of consumer and demand of
the market because it is extremely wise to provide the services according to consumers demand,
that increase the satisfaction and loyalty of consumer.
Brand Extension – is a strategy used for marketing, in this strategy an organisation uses the
same brand name but in different business sectors. The P&G uses the Ansoff Matrix model for
their brand extension. Ansoff Matrix describe growth in four ways
Market Penetration: In this the P&G offer the same product in same market with a some
promotions, to increase its market share in current market. This is most safe way among all four
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but this only increase revenue of a particular area.
Product development: In this strategy P&G offers new product in same market, they were
operating, this involve expanding the product growth.
Market Development: P&G use this strategy when they want to enter to a new market with their
existing products
Diversification : P&G uses diversification when they want introduce new product in new
market, this is the most risky way among all four.
Reinforcing Brands – Reinforcing brands is means when a business promote itself to create
more brand awareness (according to Keller) brand reinforcement involves these
Maintaining of brand consistency : Maintaining of brand consistency helps to increase the
position and the image of brand with the customer. This helps the consumer to get familiar with
the brand and increase the reputation about the brand. The P&G always maintains their position
in the market and always try to maintain their current image and increase their image in market.
Protection of sources of brand equity: defending the sources of the brand equity should always
among the priority list of any organisation. The organisation should also look out for the right,
capable and powerful new sources of brand equity however they need to change them from a
successful position, unless their current position has been affected by internal or external factors.
Fortifying vs Leveraging: Fortifying means increasing the brand equity in terms of awareness
and reputation, whereas leveraging means generating revenue from a brand. If there is no fortify
of company that there is no leverage to collect. So there should be proper balance between both
of them are important for an organisation.(Chernev, A., 2018)
Supporting Marketing Program: This should by improving all the product related aspects and all
non product related aspect. This helps the firm to increase their brand awareness and increase the
revenue generation. P&Galways tries to improve their quality day by day. Weather it product
related or non product related aspects of the business.
Brand Revitalisation – Revitalising brands is strategy used in marketing, when the product of a
company reaches the maturity stage in product life cycle and the profits has fallen down
dramatically and drastically. It is an effort of the organisation to bring back the product back to
the market and secure its position in the market. Some major reasons for brand revitalisation are
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increasing in competition, Brand relevancy, Globalisation, Mergers and Acquisitions,
Technology and Legal issues (Burmann and et.al 2018)
Conclusion
From the above article is has been clearly proven the branding is among the most primary
and important thing an organisation need to do before entering the market. Branding helps both
the customers and the organisation in different way, customer it’s easy to differentiate between
two sellers and for an organisation it helps them to make their separate identity and become
popular in the market. It is also discussing about some models like Ansoff Matrix model Aaker’s
Brand Equity model and Keller’s Customer-Based in Reference to The P&G. All these strategies
are been used to strengthen brand equity, brand extension, reinforcing and revitalising brand are
discussed of The P&G.
TASK 2
What is brand portfolio strategy, hierarchy management of brands and strategies used for
managing brand equity
Brand portfolio strategy:
A brand portfolio strategy refers to parent company under which all the brand lines or
brands are served to fulfil the needs of market segment. In other words, it can be said that it is a
process of offering all the brands by one company or firm which carter needs of different people
(Flint, Signori and Golicic, 2016). It is a process of how company will be profitable by using
branding elements and brands. Brand portfolio can be defined as umbrella that highlights
different lines of brand which are helpful in meeting needs of different target consumers.
 Active portfolio strategy: In active strategy company need to put effort in engaging with
other businesses, potential customers. Companies make decision based on judgement,
experience and market trends. In this type of strategy, companies can make change if they
think market may go down. They have an ability to make defensive decisions to limit risk
if market goes down. It uses accessible information and forecast techniques for better
performance. Active portfolio strategy is considered as most effective tactic which
always emphases on maximizing value of brand. Companies invest in such place from
where it can gain high return. In this strategy firm invest more amount in such products
which are in high demand and consumers like to buy such items. By developing such
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products company can get high return over its investments (Heding. Knudtzen and Bjerre,
2015). P&G will use this portfolio strategy in which firm will invest in such product
which are in demand., This will support in gaining attention of buyers and entity will be
able to get more return on its investments.
 Passive portfolio strategy: In this type of strategy companies invest less in branding.
Companies have low operating expenses which benefits company in taxation. There is no
dependency and ability to make decisions. It is a onetime investment of time and cost. It
builds wealth slowly and focus on buying a product for long term. This strategy is
implemented by P&G in which firm concentrates more on needs of buyers and try to
satisfy needs of potential buyers more than return on investments. It is more customer
oriented approach. P&G emphases more on maximization of diversification, it gives little
inputs and always try to meet the needs of diverse people in the organisation.
P&G should use passive portfolio strategy in which firm has to concentrates on needs of
various consumers and have to design range of items that may help in gaining attention of buyers
and satisfying their requirements. This would give amazing results to the company to great
extent and it will be able to manage its portfolio significantly.
Hierarchy management of brands:
It is defined as how brand is organised and manage to be introduced in the market. It has
2 types which is explained below.
Baby care products Like for example Pampers
Feminine care products Like for example Always sanitary napkins
Family care products Like for example Ariel washing powder
Home care products Like for P&G professional
Hair care products Like for example Head and shoulder shampoo
 Branded house: It is also called umbrella or parent-dominant. In branded house there is
a master brand which then extends in other products under the name of master brand. In
branded house company is dominant source (Penumaka. and et.al., 2017).. It maintains
focus on well-known, single and consistent brand. It offers various benefits to the
company as one market strategy covers every product, it is easy to avoid competition and
confusion by keeping all the products under same brand (Branded house vs. house of
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brands, 2018). For e.g. google is a master brand and have sub-brands under it, but all the
brands are operated and marketed by parent brand. The sub-brands of google are Gmail,
Google calendar, Google maps etc (Rauschnabel and et.al., 2016).
 House of brands: It is opposite of branded house. It is the home of many brands where
each brand is independent to one another and each brand has its own market, customer
base and look (Kelley, Sheehan and Jugenheimer, 2015). It works for many large
companies, but not for every brand. Some companies use this model where product is
itself a primary brand. In this model, companies focus on individual products. The risk in
house of brand model is brand confusion. It incurs huge cost in building every brand
image. For e.g. YouTube focus on video content, google focus on analytics and search,
P&G etc. (Branded house vs. house of brands, 2018).
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Illustration 1: branded house

Strategies used for managing the equity of brands:
P&G need to use Aaker model to manage its brand equity. Aaker model has set of 5
categories of liability and assets of brand which add value endowed by products and services.
Brand equity reflects consumer perception with respect of brand price and profitability. Building
a strong and long lasting brand equity makes company earn higher profits (Rosenbaum-Elliott,
Percy and Pervan, 2015).
According to the Aaker model there are 5 categories which P&G need to use in managing
brand equity:
 Brand loyalty: This refers to the reputation or image of brand in a market. Higher image
means high loyalty. P&G having higher loyalty benefits company in reducing the cost of
marketing, attract new customers, compete and respond to the competitors. Brand loyalty
provides satisfaction to customers by adding value. If company offers satisfactory
services to buyers and always ensure to resolve their problems soon then it would help
P&G in managing brand equality significantly.
 Brand awareness: This refers to spreading awareness of brand in the market while
customer make decision of purchase. It is important step in building brand equity. P&G
need to make its brand visible in the market so that customers purchase it. Company
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Illustration 2: house of brand

need to create brand awareness through advertising, CSR activities and use word-of-
mouth strategy (Urde, 2016).
 Perceived quality: P&G need to give a reason to buy its product. Company need to
differentiate its product, define feature or benefits of purchasing a product and keep the
price of a product low as compared to competitors. Company can also make new
products.
 Brand associations: P&G need to market its product in such a way that it created a
positive attitude towards purchasing a product and create a brand differentiation. It is a
process of creating a strong brand image in the mind of customers.
 Other proprietary assets: P&G need to build patents, copyrights and trademarks in
order to gain competitive advantage so that company can earn profits for long duration
(Zhang, 2015).
TASK 3
What is brand leveraging, strength and weakness of brand and collaborative and partnership
agreement
Brand leveraging:
Brand leveraging is a strategy where power of existing brand name is used and company
enter in new product category by introducing it to customers by providing valuable information
about product. Brand leveraging is important for introduction of new product because it provides
familiarity and positive attitude and brand characteristics to consumers. Company need to decide
which product to be leveraged and maintain the quality of product under the brand. It is an
indirect approach of building brand equity. It is also called umbrella or family branding where a
product is introduced in under an existing brand name (Beverland, 2018).
P&G is the fastest and largest consumer growing companies. It is present in many
countries and serve worldwide. Tide is most demanding product of P&G.
Strengths of P&G: Consumer understanding: P&G has invested a lot in consumer market and researches.
Company has interacted with nearly 5 million customers in 60 countries every year. They
have conducted 15000 researches, this benefits company in identifying the customers
need and opportunities to innovate the product. That is the reason Tide brand has become
worldwide popular.
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 Innovation: Tide regularly strengthens its capability of innovation and invest more than
its competitors (Borkovsky and et.al., 2017). Company has a strong base of research and
development, through which it comes with new ideas and new products. By innovating
Tide company create a demand in the industry. It not only innovates products but also
focuses on innovation for efficient marketing and operations. Company has also taken
care of changes in the economy and change in the customer preference to innovate the
products. Market position: Tide has great market position, it has developed its own reputation that
is why people have trust on this brand which is the major strength of company (Chernev,
2018).
 Low price and high quality: Tide is sold in market at reasonable cost but quality of this
product is amazing which gain the attention buyers and make people loyal towards this
brand. If quality of items is not good then people do not like to buy such kind of products.
Weakness of Tide Strong competitors: Tide has developed its great market positon but due to high
competition demand of brand is getting affected. Due to high competition it sometimes
fails to sustain in the market for longer duration. There are many areas where demand of
Tide is high but still many areas are here where demand is very low (Du Preez and
Bendixen, 2015). Substitute products: There are many companies which are offering substitute products of
Tide at the same prices. In such condition sales of Tide gets affected badly and entity
fails to sustain in competition for longer duration. If there is same quality products at low
rates then defiantly people will prefer to buy such items. Increase recalls of products: Tide has seen increase in product recall. This has reduced
the sale and reputation of the company. In march, pet care voluntary has recalled its
products. This was a large recall of product. In September 2006, there was a suspended
sales of cosmetics after finding out the use of banned products in cosmetics in china. In
2005, Tide have several complaints regarding overheating of vacuum cleaner and a report
of fire with some damage of property. This all incidents affects the company's brand
image, productivity and customer loyalty (Ertimur and Coskuner-Balli, 2015).
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 Limited online presence: Tide has limited presence in e-commerce. Companies are
continuously increasing their presence of online operations. P&G has limited e-
commerce websites mainly operating in US. This a weakness of company in covering
global market through online selling of goods and services. Company need to improve its
online presence to gain competitive advantage (Flint, Signori and Golicic, 2016).
Recommendations:
Despite its strengths and strong position in market, Tide needs to make strategies for
beating its weakness. Company has less online presence which is one of the major weakness
which need to be taken care of. Following are the suggestion for the company:
 Constantly innovating its product and services by using new technologies can be an
advantage for company in gaining competitive advantage.
 Tides need to expand its online presence globally to increase online growth in market.
 Tide has to increase range of products so that it can remain in competition for longer
duration
Collaborations and partnership agreements:
Collaborations: P&G has collaboration with Microsoft. After this collaboration both
these companies have shared their resources. After this collaboration, company has become able
to use office communicator 2005. P&G collaborated with Microsoft office to write their
experience, Microsoft live communication, web conferencing, Microsoft outlook who provides
e-mail facility, task management, web browsing, connect-beam allows sharing tag content and
bookmarks and innovation Net which have information related to research in a digital format.
Partnership agreement: P&G has made part5nership with MonoSol, after this partnership
it has achieved 68% shares (Kelley, Sheehan and Jugenheimer, 2015).
TASK 4
Measurement and Management of Brand value
Brand Value: Brand value is the monetary significance that a brand carry, brand value
shows the worth of a brand. Positive brand value in the market can increase the margins of the
company and also increase the loyalty in their consumer. Like for example P&G is one of the
leading company in its sector. P&G maintain their brand value by taking regular feedbacks on
their products from the customer and modifying the product or developing of product according
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to consumers need, because of positive brand value of P&G they are more competitive
advantages and expansion opportunities in the market.
Brand Awareness: Brand awareness is marketing term that means the range to which
consumer recognised with their qualities or image. Brand awareness helps the company to
increase their client’s loyalty, Increase product recognition, build equity etc. Coca cola is one of
the leading soft drink company in the world, they increase the brand awareness by organising
events sponsorship of sports teams, hiring global celebrities as brand ambassador and regular
advertisements. The biggest advantage of coca cola is their awareness and recognition in the
market, that helps coca cola to increases the revenue of the company at global level (Ertimur.and
Coskuner-Balli 2015.)
Market Share: Market share can be refer as the percentage of sales of a particular
product or company in the total sales in the market. Market share helps the company to know
their position in the market and to make strategies as required. Nike is the leading sport brand in
the world. Nike manage their market share by providing the best quality of products to their
consumer and they have more 22000 across the world. Nike frequently introduce new products
and new series in the market, they also have some famous series like Under amour, Jordan, Kobe
which are very highly preferable by the consumers (Du and Bendixen, 2015).
Consumer Attitude : Consumer attitudes are a composite of a consumer's beliefs
feelings and behavioural intentions toward some object--within the context of marketing, usually
a brand or retail store. Consumer attitude can be measure and manage by Unilever by analysing
about how much value customer is getting from the products they have purchased. It can also be
measured by taking feedback from customers about quality of products which has been sold by
firm. It can also be managed by enterprise through making their consumer feel privileged by
creating and providing them value on goods and services given by them. This also has helped
Unilever in building trust in mind of consumers. The attributes of products have also supported
company in making consumer attitude positive. It has helped firm in growing.
Purchase intent- Purchase intent is the probability that a consumer will buy a product or
service. To evaluate purchase intent, marketers uses predictive modelling to help identify the
possibility of future outcomes based on historical data. This can be measured and managed by
checking on the website of company that how many times' consumer has visited the website.
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Like for example Coca cola makes use of lead generation techniques to know about how many
times' customer has visited the website of firm. This has helped firm in knowing about the
probability of purchasing product from them. It has helped firm in growing. Data collection
models designing are now made flexible by the online surveys which, traditional methods like
paper based surveys and phones failed to provide. Purchase intent and price elasticity are used to
determine and measure prices which are optimal for a particular product and service. Consumer
oriented products face decrease in volume with increase in price. The motive is to exactly inverse
the relationship and price band if it is existing. For products and services which are based on
brand perception it is possible that may not have any relationship. For example; prices of the
luxury cars do not affect purchasing decisions of the buyers but they are affected by brand
relation and brand loyalty, hence the brand is the key matter for which they compete. There are
wide range of methods and methodologies to measure purchase intent. In consumer oriented
products researchers are posed with unique challenges. Self-administered surveys by consumers
should be Simple, concise and precise. The dimension is simple but can be contradictory to the
objectives of the researchers. Risk can be mitigated with help of dynamic online surveys and is
useful in determining purchase intent (Chernev, 2018).
CONCLUSION
From the above report it can be concluded that brand management plays an important
role in every company. Brand helps in maintain separate identity which is easy for customers to
identify the product. P&G uses passive model because it has low operating cost and gain benefits
for taxation. It is one time investment of time and cost. It builds wealth for the product for long
period. P&G is a house of brand hierarchy, here each brand is independent to each other. Brand
leveraging is important for business to diversify its product categories to increase market share
and increase profits of company. Company uses Aaker model in managing its brand equity.
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REFERENCES
Books and journals
Beverland, M., 2018. Brand management: Co-creating meaningful brands. Sage.
Borkovsky, R. N. and et.al., 2017. Measuring and understanding brand value in a dynamic model
of brand management. Marketing Science. 36(4). pp.471-499.
Burmann, C. and et.al., 2017. Strategic Brand Management. In Identity-Based Brand
Management (pp. 91-172). Springer Gabler, Wiesbaden.
Chernev, A., 2018. Strategic brand management. Cerebellum Press.
Du Preez, R. and Bendixen, M.T., 2015. The impact of internal brand management on employee
job satisfaction, brand commitment and intention to stay. International Journal of Bank
Marketing, 33(1). pp.78-91.
Ertimur, B. and Coskuner-Balli, G., 2015. Navigating the institutional logics of markets:
Implications for strategic brand management. Journal of Marketing. 79(2). pp.40-61.
Flint, D. J., Signori, P. and Golicic, S. L., 2016. Brand Management Fundamentals. In
Contemporary Wine Marketing and Supply Chain Management (pp. 97-115). Palgrave
Macmillan, New York.
Heding, T., Knudtzen, C. F. and Bjerre, M., 2015. Brand management: Research, theory and
practice. Routledge.
Kelley, L., Sheehan, K. and Jugenheimer, D. W., 2015. Advertising media planning: a brand
management approach. Routledge.
Penumaka, S. and et.al., 2017. System and method for brand management using social networks.
U.S. Patent 9,747,609.
Rauschnabel, P. A. and et.al., 2016. Brand management in higher education: the university brand
personality scale. Journal of Business Research. 69(8). pp.3077-3086.
Rosenbaum-Elliott, R., Percy, L. and Pervan, S., 2015. Strategic brand management. Oxford
University Press, USA.
Urde, M., 2016. The brand core and its management over time. Journal of product & brand
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Zhang, Y., 2015. The impact of brand image on consumer behavior: A literature review. Open
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Online
Branded house vs. house of brands. 2018.[online].available through
<https://willowmarketing.com/2018/07/17/branded_house_vs_house_of_brands/>
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