Brand Management Report: Strategies for Brand Portfolio and Equity

This report delves into the critical aspects of brand management, emphasizing its importance as a marketing tool. It explores the key components of a successful brand strategy, focusing on building and managing brand equity. The report examines various strategies for managing brand portfolios, hierarchies, and equity, including collaboration and partnerships at both domestic and international levels. Furthermore, it discusses techniques used to determine and manage brand value, providing insights into how companies like Audi and Hyundai approach these challenges. The report covers brand roles, long-term thinking, and customer perspectives in brand portfolio management, and highlights the significance of brand hierarchy and its impact on brand strategies, ultimately offering a comprehensive overview of brand management principles and practices.

BRAND MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
P1 Importance of branding as a marketing tool......................................................................1
P2 Key components of successful brand strategy to build and manage the brand equity......2
SECTION 2......................................................................................................................................4
P3 Strategies for managing brand portfolio, hierarchy and equity.........................................4
P4 Brand management with collaboration and in partnership at domestic and international
level........................................................................................................................................8
P5 Different techniques used to determine and manage the brand value.............................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The brand management in terms of equity and value is important for the firm to increase
profitability and production. The report will cover branding importance as a marketing tool and
key components of successful brand strategy. Different strategies for brand portfolio
management and brand equity and hierarchy will be discussed in this report. Brand management
with collaboration and in partnership assessed with various techniques to manage the brand value
will be discussed in this report.
SECTION 1
P1 Importance of branding as a marketing tool
DEFINITION OF BRAND
Brand can be described as a name, symbol or design which is used by any firm in order to
make identity of their products and services in the market towards the consumers. Brand will
also help businesses to make a difference in their products and services over another. Brand will
also help customers to recognise the particular product offered by them. This will also help
consumers to purchase a product in the market over another as they have the memory of brand in
their minds (Simoes, Singh and Perin, 2015).
For an example, Coca-Cola campaign was their 2012 Super Bowl commercial. Coke is
always very forward thinking about how to create a brand that can relate to their audience. Their
commercials pictured two polar bears: one rooting for the New York Giants, and the other
rooting for the New England Patriots.
BRAND IMPORTANCE
Branding has its own importance in the firm that it helps to differentiate the products and
services offered by business as compared to others in the market towards customers effectively.
Branding also help businesses to improve their image in the market towards the customers which
will help them to increase the profitability as well as revenues (Cavender and Kincade, 2014).
This will also help to expand business operational activities correspondingly and effectively.
 Remembering: Customers in the market usually does not remember the name of product
or service that it is difficult for them to remember the name. In respect to this, branding
will help customers to recognise the name of products and services.
 Increase reputation: Brand image also increase the reputation of organisation in the
market towards customers by providing quality and effective products and services. In
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addition to this, happy customers tell others about the brand quality and effectiveness
which will help business to enhance its reputation among others in the market.
 Differentiate: Branding also help businesses to differentiate their products and services
from others in the same market. It will help customers to choose the products over
another by remembering the brand name, logo or feature effectively.
 Branding make strong emotional connection: Emotional connection is a strong and
powerful energy which helps businesses towards their effective decision making
effectively. This is a bond which helps businesses towards their operational activities.
Target customers can be identified by emotional connection (Hollebeek and Chen, 2014).
 Branding creates meaning: Branding is associated with advertisement and multiple
channels. Thus, it can be said that branding will help businesses towards demonstrating
their meaning, purpose and initiatives in the market towards customers effectively. This
will also help them to create message for customers that the communication process
between them will be effective and efficient.
Branding is also important in terms of business practices that it helps to advertise
particular products and services offered by them. This will help to increase the profitability and
production which leads organisation towards accomplishing desired objectives and goals.
For an example, Apple did not use traditional methods to become a company with some
of the most loyal users. Instead, they used emotion to connect with their customers. Apple's
design was focused on making a person's life easier through its products. The brand is mainly
focused upon customer requirements and connection to become a representative for them
effectively.
P2 Key components of successful brand strategy to build and manage the brand equity
IMPORTANCE OF BRAND STRATEGY
Branding strategy is crucial for the businesses in order to evaluate and determine the
requirements and demands of customers in the market. This will also help them to manage their
business operational activities in the market. Customers preferences and perceptions is also
identified by the branding strategies in order to provide quality and effective products to them in
the market (Naidoo and Abratt, 2018).
BRAND MANAGEMENT OVER TIME
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Brand management refers to managing and controlling the brand value and equity for
long time period in terms of products and services towards customers in the market. Brand
management is crucial for the firms in order to compete others in the market by using different
techniques, products and services, customer perception and preference and framework
effectively. Balancing brand management and life cycle process of products and services will
help businesses to manage their brand for long period of time.
CHALLENGES DEVELOPING A BRAND
 Brand as an asset: Brand is an asset for the firms that it is under pressure for making
short term benefits and results in terms of financial activities and values effectively.
 Compelling vision: Businesses should focus on their products and services in order to
differentiate from any other brand in the same market to manage the brand effectiveness
and value (Johansen, 2018J).
 Subcategories: Subcategories made by the businesses during the life cycle process in
order to bring the vision f brand that sometimes it is difficult for them effectively.
 Integrated marketing communication: The integrated marketing communication is
difficult but also important for the firms to select the advertising method and platform for
social media to communicate with the market activities.
 Development of strategy: Strategy development is also crucial for the businesses to
manage the brand value and equity towards consumers in the market. It is difficult for the
firms to select the best strategies and development elements which will help to enhance
the brand value.
For an example, Coca-Cola facing challenges while developing its brand such as the
wrong assumptions and perception of customers that Coca-Cola is harmful for body and acid
mixed drinks etc. This will affect the brand development strategies which should be managed by
brand in order to improve operational activities.
BRAND EQUITY
Brand equity management is crucial for the firm in order to increase revenues and sales in
the market from customers by selling them superior quality and effective products and services.
Products and services should be reliable, recognisable and made of superior quality which
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increase the sales and brand equity (uga, Juntunen and Paananen, 2018). Brand equity is based
on consumer perception in terms of knowledge and experience.
 Target customers and audience: People who are likely to buy the products and services
offered by the businesses are known as target customers. It is also important for the firms
to attract new customers for purchasing their products which are known as audiences in
the market. For an example, Apple using a software in which the target customers
information and data is collected which will help them to provide further information
regarding business products and services.
 Brand promises: Brand promise refers to the description which includes the information
about products and services offered by the businesses. It is crucial for the firms to
accomplish the customer perception and preference which helps to fill the consumer
expectation and demands. This will increase the profitability and production effectively.
For an example, Apple firm promised that the camera provided by them is more effective
and clear than any other in this range. This is a brand promise towards customers which
helps them to believe easily and effectively.
SECTION 2
P3 Strategies for managing brand portfolio, hierarchy and equity
The section will provide information, how brands are organised in portfolios; how brand
hierarchies are built and managed, how brands are leveraged/extended over time domestically
and internationally and techniques to measure brand effectiveness. These two Audi and Hyundai
are the top brands in Car making companies according to the inter brand global list 2017. These
two are expanding its business very fast and effectively and their revenues are also increasing.
Overview
Audi: Audi AG is a German auto mobile manufacturer that designs, engineers, produces,
markets and distributes luxury vehicles. Audi is a member of Volkswagen Group and has its
roots at Ingolstadt, Bavaria, Germany. The stock price is €786 and the founder is August Horch
with 58,376 employees. The firm has a revenue of 5,842 crores EUR.
Hyundai: The Hyundai Motor Company is a South Korean multinational automotive
manufacturer headquartered in Seoul, South Korea. The total production output is 4,858,000
units. There are 104,731 employees in 2013 with estimate revenue of 93.649 trillion as per 2016
year.
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Brand portfolio: Brand portfolio is where the large business operates different multiple brands
companies, and services. Brand portfolio is used to encompass all the entities under a one
umbrella. Each of them have own trademarks and operates as a individual entity effectively and
efficiently. For an example, considering PepsiCo. PepsiCo is the brand portfolio name of several
food and beverage companies that include not only Pepsi, but also brands such as Frito Lay,
Quaker and Tropicana.
Strategic management of brand portfolio will help both Audi and Hyundai to determine
their roles, scope, interrelationships and structure of brand portfolio.
 Brand roles: Brand roles should be clear and identified by both Audi and Hyundai in
order to create marketing for their products and services effectively. Roles will help both
firms to achieve the customer perception which will provide strengthen to brand
portfolio. Brand roles can be clear for employees in order to manage portfolio of products
and services. This will also help to manage the brand portfolio in various conditions for
both business effectively
 Long term thinking: Brand portfolio management should be controlled by both firms to
manage and use the available resources in the business (Kasemsap, 2016). This will help
Audi and Hyundai brands towards making strategies for present and future growths and
managing the brand portfolio effectively.
 Customer perspective: Brand portfolio management not only considered the decisions
regarding to the financial activities or data but also takes perspectives of consumers
effectively. In order to do that both Audi and Hyundai is able to use qualitative and
quantitative approach to achieve customer research and easily manage their brand
portfolio in the market. Customer perspectives should be evaluated by the firm in order to
provide strengthen towards products and services effectively.
 Connect with business strategy: Strategy will help brand portfolio towards effective
management. Brands connects with the business strategies and plans in order to achieve
the effective management of brand portfolio. Connecting with the strategies will help
them to manage products portfolio which will help to achieve business growth and
effective management.
Thus, various roles and relationship create happy families of brand which can be deliver
through differentiation, energy to achieve leverage and clarity and synergy which will help them
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to achieve the effective management of brand portfolio, hierarchy and equity effectively and
efficiently.
For an example, Volkswagen Group sells passenger cars under the Audi, Bentley,
Bugatti, Lamborghini, Porsche, SEAT, Skoda and Volkswagen marques; motorcycles under the
Ducati brand; and commercial vehicles under the marques MAN, Scania, and Volkswagen
Commercial Vehicles.
Hyundai is among the top 5 largest auto manufacturer firms, but has one of the poorest
brand portfolios. The company sells only Hyundai and Kia brand, while Volkswagen sells 12
different brand, General Motors 9, Chrysler 8, Toyota 4 different brand.
BRAND-HIERARCHY
Short summary of brand strategies is known as brand-hierarchy which helps to define the
common elements and nature of both Audi and Hyundai. Brand-hierarchy is based on realisation
from which both firms are able to reproduce their products and services in the market. It can be
said that brand-hierarchy moves from the top level to lower level which also involves entries at
each level of succession (Lilleker and Jackson, 2014). For an example, Fortune Brands owns
many different companies, such as Titleist, Footjoy, Jim Beam, Master Lock, and Moen, but
does not use its corporate name in any of its lines of business.
In case of Audi, which targets the market segment of luxury-‐car buyers in their 20s, 30s,
and 40s, making up nearly 48% of Audi's U.S. customer base. Apart from this Hyundai
considered level of succession based on realisation in order to reproduce products and services
offered by them in market towards customers.
KELLER'S BRAND EQUITY MODEL
It is also known as customer based brand equity model which helps to develop and
improve strong strategic brand hierarchy management. The model will help both Audi and
Hyundai towards making strategies for managing and controlling brand equity.
Brand identity: Brand identity will help customers to remember the brand name in the market in
terms of products and services. This will also increase the brand equity awareness towards new
and existing consumers.
 Differentiate products and services offered by brand.
 Identify the perception and preference of customer.
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Brand meaning: Brand meaning refers to the purpose communication of Audi and Hyundai.
Imagery and performance are the two elements used to build a brand meaning effectively.
Images refers to customer demands on psychological and social level and performance is for
requirements. Brand roles can be clear for employees in order to manage portfolio of products
and services. This will also help to manage the brand portfolio in various conditions for both
business effectively
 Brand should meet the customer requirements.
 Experience of consumers with brand.
Brand response: Customers provide comments and feedback after using the products offered by
the brand which is known as brand response. This will help to achieve the brand equity
management and will be divided in two parts such as feelings and judgments. Brand roles can be
clear for employees in order to manage portfolio of products and services. This will also help to
manage the brand portfolio in various conditions for both business effectively
 This will help Audi and Hyundai brands towards making strategies for present and future
growths and managing the brand portfolio effectively.
 Superiority of brand compared to others in the market (Naidoo and Abratt, 2018).
 Customer judgements and consideration towards brand.
Brand resonance: Brand resonance come up at the top level of brand equity that it is difficult as
well as important for Audi and Hyundai. It can be achieved by customers feelings and
psychological bond.
 Repetition behaviour of customers towards products.
 Customer love, loyalty and active engagement with brand.
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For an example, Nike and Adidas two big brands focused on making sports products and
services for customers. Through some years the brands are focusing on branding its categories in
order to build a solid brand equity and same goes to Audi and Hyundai which are working hard
in car services and products to be well known in luxury markets effectively.
The Keller's brand equity model will work as an strategy for the firm in order to manage
their brand awareness and effectiveness towards customers in the market effectively. This will
also help to achieve the brand measurement from the point of view of consumers which lead
towards the profitability and production for both firms. The model is also known as customer-
based perspective model which helps to manage brand equity effectively. Brand can be also
manage with collaboration and partnership at international and domestic level and various
techniques and approaches will help to expand the business activities.
P4 Brand management with collaboration and in partnership at domestic and international level
APPROACHES AND STRATEGIES
 Ignoring critics: Audi and Hyundai both are the firms design and sell luxury cars at high
prices that a normal people does not able to purchase the vehicle. There are so many
critics arises that the brands selling cars at high prices. Thus, both firms should ignore
such critics to reduce the negative impact and also try to deliver effective services to the
customers.
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Illustration 1: Keller brand equity model
Source: PEL, 2013

 Ordinary to beautiful: Both brands are the luxury car maker firms that there are very
few changes required by the firms in order to make their cars more beautiful and effective
(Simoes, Singh and Perin, 2015). In order to do that both brands can use latest techniques
such as protection for customers in the car etc. new music system, better handling and
comfortable seats are some more option.
 Price justification: Both Audi and Hyundai are able to justify their prices in order to
manage the effectiveness of products in the market towards customers. It is well known
that luxury cars are costly as there are lot of features includes in it. It will help customers
in various ways which also help businesses to extent their market share and activities.
 Discounting: The strategy of providing discounts for customers will also help both firms
to sell their old stocks of car that customers likely to buy the new innovation and trending
cars. This will help them to attract new customers and also increase the market share
effectively and efficiently.
BRAND REVITALISATION AND REINFORCEMENT
Reinforcement will help both Audi and Hyundai to manage their brand equity in the
market towards customers effectively. Both brands receive feedbacks from customers which will
help them to make changes accordingly. Reinforcement strategy fails sometimes due to
competitors, new techniques and consumer perception and preferences. For an example, Nike is
typed with Nike boost in order to improve and develop effectiveness of brand and products as
well as services offered by them. This will also help to attract new customers effectively. Audi
and Hyundai both are able to come back to the previous roots to recapture the lost resources of
equity and the process is known as revitalisation (Ulrich and Blut, 2015).
 Identification of opportunities: Opportunities identification refers to the products and
services use offered by various brands to enhance the frequency of use. This will help
both businesses to enhance their present and future opportunities.
 Different ways to use brand: Both Audi and Hyundai are able to present their cars at
different platforms which attract the attraction of customers and audience in the market
and will leave a positive impact on brand.
 Entering new markets: Audi and Hyundai are able to enter in new markets for selling
their products which will expand their business operational and external activities.
COLLABORATION AND PARTNERSHIP
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These strategies and theories will help them to manage the brand value by working
collaboratively and in partnership that will help to increase sales and profitability. Strategies
such as entering new markets with a joint venture, opportunities identification and with a
collaboration brands are able to use in different ways effectively(Lilleker and Jackson, 2014).
Identification of opportunities, Different ways to use brand, entering new markets such things
can be done by managing the brand in partnership which will help to expand the business
activities working as a partner for each other at domestic level. Audi and Hyundai are able to
make a joint venture in which they can share their techniques and services which will attract new
customers and also produce a different brand image in the market. Ignoring critics, Ordinary to
beautiful, Price justification, Discounting are some strategies from which both Audi and Hyundai
brands are able to manage collaboratively and effectively. For an example, Verizon is
collaborating with content providers and software developers to provide live TV and video-on-
demand content both inside and away from home to FiOS TV customers. This will help them to
develop a new mobile IOS app which is more easy for the customers to use effectively. Thus,
Audi and Hyundai can make a joint venture with other rivalry firms such as BMW and SKODA
in order to expand their business more effectively. According to this, there are several strategies
and plans made by both firms in order to make an effective collaboration from which both are
able to expand their business operational activities effectively. For an example, Audi is planning
to make a collaboration with Porsche luxury car brand in order to change steering and other
functions' that are more reliable in Porsche products effectively. In addition to this, Hyundai is
also Taking its chances to make a partnership with Volkswagen in order to improve and develop
various functions effectively.
Thus, both are able to make a partnership with strategic management to increase the
market share and activities to achieve the business goals and objectives. They should also remain
true for each other in order to maintain the business activities and profits.
P5 Different techniques used to determine and manage the brand value
 Surveys: Survey is a technique which will help both Audi and Hyundai to determine the
brand values from the customer perspectives. It can be done and managed by E-mail,
existing customers and telephone communication.
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 Website traffic: This is the most effective and easy way for the brand in order to
evaluate the number of people visited the website or brand name using the direct channel
method effectively. It will help them to determine the people trying to approaching brand.
 Social listening: Social listening also a platform from which both Audi and Hyundai
brand are able to evaluate the position of brand in the market among others (Viktoria
Rampl and Kenning, 2014). This will be done by monitoring social platforms such as
Facebook, Instagram, Twitter or any other website.
Inbound lead tracking, branded keyword tracking, brand tweet tracking and direct traffic
tracking are some more strategies and techniques which can be used by both Audi and Hyundai
in order to measure the brand value in the market effectively towards customers.
BRAND EQUITY AUDIT
 Clearing the customer perspectives: Brand equity determination can be done in
different ways and perspectives of customers. Financial outcomes of both firms will help
them to look at the price premiums in order to measure the price of products which a
customer is ready to pay.
 Behaviour of customers: Customer behaviour also help to manage the brand value and
equity that they provide feedbacks after using the cars which will help business to
manage activities from the customer preference and perception (Zailskaite-Jakste and
Kuvykaite, 2016).
 Brand sale comparison method: It includes the comparison of present data to the recent
data which helps to measure the level of sales in past, present and future effectively.
 Equity evaluation method: The method describe the results between profitability and
price. It will help firms to manage their financial values in order to control the brand
value and equity.
 Residual method: The customer based equity model will help to determine the brand
value and strategies to valuing brand towards customers in the market effectively and
efficiently.
Apart from this, brand valuation approaches will also help to determine both Audi and
Hyundai brand values effectively. Some techniques are provided below in order to
understand values of brand.
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Cost based approach: Cost based pricing is the easiest way to calculate what a product
should be priced at. This appears in two forms: full cost pricing and direct-cost pricing.
Direct-cost pricing is variable costs plus a % markup. This will help both Audi and Hyundai
to calculate their products and services price in order to increase profitability and production.
Market based approach: A market approach is a method of determining the appraisal value
of an asset, based on the selling price of similar items. This will help both Audi and Hyundai
to calculate the value of property or as part of the valuation process for a closely held
business.
Finance based approach: This approach can be used to determine the value of tangible as
well as intangible assets e.g. a house, car or a stock traded in stock market. This will also
help both brands to measure their products and services values which will help them to
understand actual value of their brands in the market towards customers effectively.
Techniques and strategies such as Surveys, Website traffic, Social listening, Inbound lead
tracking, branded keyword tracking, brand tweet tracking and direct traffic tracking will also
help to achieve the brand value evaluation and determination of brand equity audit
effectively. Financial outcomes of both firms will help them to look at the price premiums in
order to measure the price of products which a customer is ready to pay. Thus, it can be said
that there are some effective strategies from which both Audi and Hyundai are able to
manage their brand audit, equity and effectiveness towards customers in the market.
CONCLUSION
Brand management in terms of brand equity and value is crucial for firms in order to
increase the profitability, sales and operational activities. Brand management strategy also help
to reach the customer perception and preference which leads towards valuing brand and
increasing profits and production as well. Brand can be also manage with collaboration and
partnership at international and domestic level and various techniques and approaches will help
to expand the business activities.
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REFERENCES
Books and Journals
Online:
PEL, 2013. Keller's Brand Equity Model. [Online]. Available
through:<https://www.mindtools.com/pages/article/keller-brand-equity-model.htm>
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