Brand Management: Building, Managing & Leveraging Brands Over Time

This report explores the critical aspects of brand management, emphasizing the importance of brand image and its strategic handling within an organization's business framework. It delves into the significance of brand value, both domestically and internationally, and examines the essential elements for constructing a robust brand and managing a diverse brand portfolio. The analysis includes case studies of Nike and Amazon, highlighting their successful strategies in cultivating brand image and achieving customer satisfaction, which has enabled them to capture significant market shares through quality products. Furthermore, the report evaluates the advantages and disadvantages of brand extension strategies and discusses the methods used to assess and manage brand performance effectively, including the CBBE model.

THE BRAND MANAGER

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1 - Demonstrate an understanding of how a brand is built and managed over time.................2
P1 Explain the importance of branding as a marketing tool and why and how it has emerged in
business practice..........................................................................................................................2
P2 Analyse the key components of a successful brand strategy for building and managing
brand equity.................................................................................................................................2
LO 2 - Analyse how brands are organised in portfolios and how brand hierarchies are built and
managed...........................................................................................................................................6
P3 Analyse different strategies of portfolio management, brand hierarchy and brand equity
management.................................................................................................................................6
LO 3 - Evaluate how brands are leveraged/extended over time domestically and internationally. 9
P4 Evaluate how brands are managed collaboratively and in partnership both at a domestic and
global level...................................................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

LIST OF FIGURES
Figure 1: Factors of brand equity.....................................................................................................3
Figure 2: Products of Nike...............................................................................................................7
Figure 3: Products at Amazon.........................................................................................................7
Figure 4: Model of CBBE................................................................................................................8
Figure 5: Process of Brand Extension.............................................................................................9

LIST OF TABLES
Table 1: Description of elements.....................................................................................................4
Table 2: Advantages and disadvantages of brand extension.........................................................10

INTRODUCTION
The current report is based on the importance of the brand image and its management in the
business of the organization. The discussion will include the value of the brand in the market,
extension of brand domestically and internationally, elements for building a strong brand and
brand portfolio. The organization Nike and Amazon has adopted various methods for developing
their brand image and has achieved customer satisfaction. The organizations have captured the
market shares by establishing their brand image and quality products. Further, the report will also
explain the advantages and disadvantages of the brand extension and how the management of
brand is evaluated.

LO 1 - Demonstrate an understanding of how a brand is built and managed
over time
P1 Explain the importance of branding as a marketing tool and why and how it has emerged in
business practice
What is a brand?
The term which signifies the difference between the products of various organizations by
symbol, name, design, quality or features are known as the brand. The customers can distinguish
the product from another with the help of brand name as brand attributes the quality and
reliability of the product (Batey, 2015). The organizations use the brand name to distinguish the
product from the group of products in the market. The brand name helps to create the value of
the organization in the market and the eyes of investors and customers.
Why is branding an important marketing tool?
Branding is a method of creating the value and image of the product in the minds of customers. It
helps to distinguish the product of the organization from its competitors in the market and creates
a valuable impression of the product’s identity. Through branding, an organization sets the image
and identity of the product to compete with other organizations. The quality of the product is
retained in the mind of the customers, and this is recognized as an important tool to retain the
customers and the investors (Smilansky, 2017). Branding is an important marketing tool as it
establishes an image of the product with its quality and unique features.
P2 Analyse the key components of a successful brand strategy for building and managing brand
equity.
What does brand equity means?
The term brand equity is used to determine the brand value of the product. Brand equity is
calculated by customer satisfaction from the product and the feedback obtained from the
customers. Brand equity is the image and goodwill of a product in the market, customers, and
investors. There are many techniques given by the experts for calculating the brand equity, and it

is observed mainly from two sources, i.e., qualitative and quantitative basis. The attributes and
perceptions are derived from the brand features and association of the product from the
customer’s awareness (Singh, 2013). Brand equity is considered to be a valuable asset for the
organization.
Figure 1: Factors of brand equity
How a brand is differs from the product?
A product is manufactured by the organization while the brand is goodwill achieved through
customer satisfaction and value in the market. The brand is an image built on experience and
expectations; the brand cannot be purchased by the organization in exchange for money. The
product can be purchased in exchange for money and can be used by the customer. Product is an
item which is ready to be sold in the market, and it can be easily copied by the other
manufacturing unit but a brand cannot be sold in the market as an item and cannot be copied as it
is different from every other brand and identity.
What are the key elements of a strong brand?
The following are the key elements of a strong brand:
Brand
Equity
Preference
Availaibility
Loyalty
Awareness
Associations
Image &
Personality
Associations

Table 1: Description of elements
Elements Description
Customer focus To main a strong brand focus on customer satisfaction is very
important and this can be achieved through good communication and
identifying their needs and requirements.
Simplicity The qualities of the product and its features should be simple and easy
which is understood by the customer and will build a strong brand
image in the market.
Consistency The performance of the organization should be consistence and
attractive towards the target customers who regularly interacts to
improve the brand image of the organization.
Uniqueness The brand should offer products which are different from others and
have unique features.
Authenticity A brand should maintain its authenticity through transparency, honesty
and best performance in the market to maintain the title of strong
brand.
How to manage and develop a brand over time?
Developing a brand image in the market is the critical perspective of an organization as it can
only be achieved through customer satisfaction and best performance of product development in
the market. A brand can be developed by proper analysis, planning and maintaining good
relations with the customers in the market. Management of brand is a strategy to use the special
techniques to increase the value of the products and the customer services which will help in
obtaining best feedback from the customers and managing and developing the brand. The brand
value should be developed by the organization from time to time to facing the competition from
other brands (Thammawimutti, 2015).
What are the main challenges in developing a brand?
In developing a brand there are various challenges faced by an organization. Some of the
challenges are discussed below:

• The relevance of the brand should be maintained with the features of the product which
requires a deep knowledge of the market and the demands of the customers.
• Brand is considered as a valuable asset in the organization and maintaining the value of
the brand is a big concern for the organization.
• The brand should have distinguished features from the other brands which will increase
the value of the products in the market.
• New ideas and innovations are necessary to maintain the brand image of the organization
and the product in the market and every innovation should be different from earlier in
order present the working structure of the organization.
• Achieving integrity is another challenge for the organization as it is difficult to choose
the method of advertising, communication, sponsorship and social media which will
increase the brand image of the product.

LO 2 - Analyse how brands are organised in portfolios and how brand
hierarchies are built and managed
P3 Analyse different strategies of portfolio management, brand hierarchy and brand equity
management.
Brand portfolio is a combination of multiple brands in the industry promoting various products
and services in the market with their specialized features and qualities which are different from
others (Kapferer, 2012). Various brands offer various products and services which are different
from other products and they compete with each other in increasing their brand value. The
organizations promote their products in different ways such as grouping different brands or
grouping different products under one familiar brand. The brand portfolio helps the organization
for best allocation of the resources to the suitable product and which will make the products
separate from one another by avoiding confusion and inefficiency in the services of the
organization.
Brand management hierarchy is the system in which the products of the organizations are ranked
according to their popularity, attractive features, demand in the market and the value of the
image of the product. Management hierarchy is very important to judge the level and ranking of
the product of the organization which will decide the value of the brand of the organization.
Management hierarchy will directly affect the brand image and its position in the market along
with the competition from other brands (Rosenbaum-Elliott, 2015).
Management hierarchy of Nike is different from that of Amazon. Nike is the brand manufacture
of different products to be used in different fields. The products are ranked according to their
functionality and quality. The organization has made the best use of the brand name to achieve
success in the market and has obtained positive feedback from its customers. The product of this
brand is easily identified by the customers universally, and the brand has established its name by
satisfactory performance of the products. The products are diversified in categories like shoes,
bags, tracks and electronic gazettes.

Figure 2: Products of Nike
The best example of the brand portfolio is Amazon as it facilitates the selling of products from
different brands at one place. Amazon is one the largest seller of different products of different
brands and the products are available for the customers to purchase the best popular brand. The
brand hierarchy of Amazon is very simple as it represents the collection of many products and
brands of the organization. The market of Amazon is divided into different categories like men
and women fashion, clothing, electronics, appliances, decorative, sports, and books. The
portfolio is designed to suit the needs of the customers with the availability of brand by their
ranking and popularity determined by management hierarchy (Aaker, 2012).
Figure 3: Products at Amazon

CBBE model – brand equity management
Customer-based brand equity model was developed by Kevin Lane Keller. This model highlights
the important level which is helpful in creating a successful brand, and the structure of the brand
is pyramid shaped which shows the levels of success. According to the model, there are many
factors which influence the level and strength of a particular brand, but each factor is not
considered for analyzing the value of the brand (Bhasin, 2018). The model helps to analyze the
important factors which will help to achieve customer satisfaction and feedback from the
employees about how they feel regarding the product. The model helps to analyze the
performance and judgments of the products and the specialization of the products according to
the customer.
The organization Nike and Amazon follow CBBE model to analyze the levels which are
important for increasing the brand value and products features to maintain the value of the brand
in the market. The factors will help to sustain in the competitive market with other branded
products of the leading organizations. The organization will be able to maintain the brand image
in the challenging circumstances and generate the revenue by selling the branded products.
Figure 4: Model of CBBE

LO 3 - Evaluate how brands are leveraged/extended over time domestically
and internationally
P4 Evaluate how brands are managed collaboratively and in partnership both at a domestic and
global level.
Brand extension is a process or a strategy to develop the business of an organization
domestically and internationally. Organizations use this method to increase the value of the
brand all over the world. This is depended upon the association of customers from different
places. Through extension, the awareness of the product and the brand is increased, and the
organization can earn maximum profits for brand extension (Başar, 2015). Brand extension is the
new strategy which helps to reduce the financial risk of the business as a brand is the symbol of
reliability and quality. Extension of a brand involves a process of brand equity, brand
positioning, brand development, brand extension, sponsorship, and advertisement. Brand
extension mainly focuses on marketing strategies and customer evaluation for promoting various
goods and services.
Figure 5: Process of Brand Extension
Table 2: Advantages and disadvantages of brand extension

Advantages of brand extension Disadvantages of Brand extension
Brand extension increases the value and
image of the brand in the market and in the
views of the customers
Lack of reliability if brand extension is done
in unrelated and low quality markets
An establishment of successful brand
increases the interest and purchasing will of
the customers
The product in new market can affect the
brand image of the organization and can
create negative effect in the market
Brand extension helps to capture the large
market share with increase in new customers
and investors
Less awareness about the product and the
brand can lead to low profits
The organizations implement various strategies and plan to extend the services of the brand
domestically and internationally. But the methods for the extension are different for both the
places as the market situations and the cost for extension process is not same. In domestic market
the brand can be extended by advertisement, banners, newspapers, pamphlets, marketing through
canopies and door to door marketing. The information about the product can be given to the
public in many ways which are cheap and cost-effective. In international markets, the cost of
extension through banners and advertisement is very high. Therefore, in an international market,
the efficient manner to extend the brand is social media. By social media, the information about
the brand and the product can be spread efficiently and the customer present there will analyze
the qualities of the product.
There is present of the scope of barriers for the organizations to extend their business
internationally. The problems can be cost, climate, language, demand and supply, culture and the
completion in the market. This can be solved by the organization through study and analysis of
the overseas market and the level of customers present in the market. The customers should
realize the importance and quality of the brand of the organization which will help them to
choose the relevant product of their use. In the domestic market, the business can be expanded by
analyzing the market potential and type of customers. The organizations can extend the brand
through partnership and collaborations which will help to reduce the cost of the extension.

Collaboration and partnership are two different sources to extend the business of an organization.
Collaboration can be defined as an action to produce something with some another person and
partnership can be defined as the association of two or more person to achieve a particular work.
Nike and Amazon are the two organizations who work individually to extend their own business
domestically and internationally. They have established their brand value all over the world by
providing reliable services and customer satisfaction. The organizations are benefitted by
increasing knowledge and experience along with the global expansion of their brand's innovation
in current techniques of promotion of their brand and products.
LO4: Evaluate techniques for measuring and managing brand value over time
P5 and M5 Evaluate different types of techniques for measuring and managing brand value using
specific organisational examples
Amazon and Nike have to measure and manage brand value, and for that, it is essential to
understand the customer perceptions and interactions in business or services. Both the
organizations differ in the way they measure brand values and awareness, but final goal is to
align the practices to effective outcomes.
Brand measurement techniques in relation to both brands
Branded keyword tracking: organizations can use their trademark name and slogans to
understand the branding in the market. Online platforms are being used by Nike and Amazon.
For example, Nike can track keywords like Nike A and ‘Just do it’. Amazon also can track the
products and services from Amazon or AWS keywords. Amazon uses cloud keyword techniques
to understand the branding whereas Nike uses exact keyword search for brand knowledge.
Direct traffic tracking: Amazon organization use traffic tracking so that users on the website,
mobile application, and affiliate links can be measured. At another side, Nike uses tracking of
users on website and mail accounts to ensure the branding (Kapferer, 2012). Less number of
feedbacks and high satisfaction are expected to achieve in both organizations. Directly coming
traffic on the website shows brand value and popularity.

Traffic Differential Tracking: Amazon and Nike can measure their branding through analysis of
competitors for products and services. For example, Amazon tracks the user directions for
purchase or view the product from Google search whereas Nike monitor the customer outing
from website after several minutes of browsing to understand branding.
Brand equity audit and tracking techniques of the selected brands
Besides of above two techniques, organizations can use equity audits and track to understand
brand value. For example, Nike has focused on new versus existing customers on the website so
that organization can determine potential approaches to keep them engage in business for high-
quality products. At another side, Amazon has focused on inbound tracking to understand the
effectiveness of approaches to attract the customers from the local market and meet their
expectations (Aaker and Biel, 2013). The organization also tracks the inbound lead from the
website and mobile application.
Therefore, it can be said that Amazon is effective to track the brand values when it has coverage
to most of the areas in the world and providing reliable services. Due to a high number of
customers, the organization has less need to monitor the new and incoming customers, and it has
focused on product preferences and customer buying behaviors (Huang and Sarigöllü, 2014). At
another side, Nike has online constraint market with presence to the high-income group; it has to
monitor the new and existing customers for sustainable services.
Also, keyword tracking is suitable for both organizations as they can understand the discussion
of their products and services on websites. Increase in product keywords on the online platform
can help the organizations to determine future strategies for branding practices. Traffic
monitoring can help to understand the popularity of products and services among customers. It
also helps both organizations to understand their customer expectations and demands.
Various approaches to valuing brands
Organizations can use following two major approaches to brand management so that desired
outcomes can be achieved.
Comparative approach

Customers are critical components to achieve brand values. Therefore, comparative approach has
focused on the study of customer behaviour and attitude for products and services. It is an in-
depth study of customer behaviour on brand name and services. It can be further studies in two
sections for accurate and reliable results:
Marketing-based comparative approach: It means to understand the impact of the organizational
name as a brand on customers. Most of the time, organizations prefer to brand the products
through their name and the second time, they deduct their name from the product. The difference
of customers in both cases is an actual indicator of brand value. Marketing based approach
focuses on the use of brand name before the product to ensure maximum sales and revenue (Jara
and Cliquet, 2012). It helps customers to understand product quality and services without using
products by their experience with organization.
Comparative Approaches based on conjoint analysis: Amazon and Nike can use the comparative
approach to understand the customer inclination in the market for their expectations and
demands. Organizations can use this to understand customer perception for brands and products
available in the market. It helps to drive comparative results for strategic planning (Gustafsson et
al., 2013).

CONCLUSION
From the above report, we can conclude that brand name is very important to establish the
business of the organization in the market. Brand name attracts varieties of customers, and this
directly affects the selling of the variety of products of the organization. Diversification and
extension of the brand in different markets have also influenced the supply of the products and
has helped in obtaining regular feedbacks from different markets and customers to improve
features of the product and brand image. The better brand image will in turn help to increase the
goodwill and profits of the organization and has helped to increase the customers in the market.
We can conclude that both the organizations have achieved customer satisfaction through best
product supply and brand name.

REFERENCES
Books and Journals
Aaker, D.A. and Biel, A.L., 2013. Brand equity & advertising: advertising's role in building
strong brands. Psychology Press.
Aaker, D.A. and Joachimsthaler, E., 2012. Brand leadership. Simon and Schuster.
BAŞAR, E.E. and ERCİŞ, A., 2015.s The Effects of Consumers’ Brand Equity Perceptions on
Brand Extension Strategy.
Batey, M., 2015. Brand Meaning: Meaning, myth and mystique in today’s brands. Routledge.
Bhasin, H., 2018. Keller’s Brand equity Model – CBBE Model by Keller. [Online] Marketing
91. Also available at https://www.marketing91.com/kellers-brand-equity-model/,
[Accessed: 26 January 2018]
Gustafsson, A., Herrmann, A. and Huber, F. eds., 2013. Conjoint measurement: Methods and
applications. Springer Science & Business Media.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-
132). Springer, New York, NY.
Jara, M. and Cliquet, G., 2012. Retail brand equity: Conceptualization and
measurement. Journal of Retailing and Consumer Services, 19(1), pp.140-149.
Kapferer, J.N., 2012. The new strategic brand management: Advanced insights and strategic
thinking. Kogan page publishers.
Kapferer, J.N., 2012. The new strategic brand management: Advanced insights and strategic
thinking. Kogan page publishers.
Rosenbaum-Elliott, R., Percy, L. and Pervan, S., 2015. Strategic brand management. Oxford
University Press, USA.

Singh, D., 2013. The brand personality component of brand goodwill: some antecedents and
consequences. Brand equity & advertising: Advertising's role in building strong brands,
pp.83-96.
Smilansky, S., 2017. Experiential marketing: A practical guide to interactive brand experiences.
Kogan Page Publishers.
Thammawimutti, A. and Chaipoopirutan, S., 2015. The relationship between brand equity,
product attributes and purchase intention: A study of Sony digital cameras in Bangkok.