Brand Management Strategies for Enhanced Brand Equity

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Brand management

Contents
Introduction................................................................................................................................... 2
Task 1- managing building and brand overtime.............................................................................3
Introduction............................................................................................................................... 3
Successful brand building stages...........................................................................................3
Importance of marketing department in brand equity............................................................4
Body.......................................................................................................................................... 4
Brand management strategies................................................................................................4
Conclusion................................................................................................................................. 6
Importance of branding as a marketing tool...........................................................................6
Task 2 Brand hierarchy management and brand portfolio.............................................................7
Brand portfolio strategy of the Mercedes...................................................................................7
Hierarchy management of brands..............................................................................................9
Management of brand equity of Mercedes...............................................................................10
Task 3 – Brand extension and leverage........................................................................................12
Strengths of Smart Mercedes brand.........................................................................................12
Weaknesses of the Smart Mercedes brand and suggestion.......................................................13
Collaborative and partnership agreement with Smart Mercedes brand and its benefits...........14
Task 4 – Measuring and managing brand value (LO4)................................................................16
Brand value..............................................................................................................................16
Brand awareness...................................................................................................................... 16
Market share............................................................................................................................ 16
Consumer attitude....................................................................................................................17
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Purchasing intent..................................................................................................................... 17
Conclusion................................................................................................................................... 18
References................................................................................................................................... 19
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Introduction
Brand management is the process of creating and sustaining the brand. The term brand includes
developing a promise and managing that promise to develop customer committed towards
business. A strong brand of a business differentiates its products from the competitors and gives
a quality image to the business. A Brand provides good value products to the customers and that
results in the perceived quality of the products. Brand management is a necessary process to
obtain and sustain competitive advantages in this contemporary business environment
(Rosenbaum et al., 2015). This assignment report is undertaken to describe how brands are
providing benefits to the organization and why the management of brands is necessary to get
success in the market. This report will clearly define the development and management of the
brands to achieve potential growth in the world.
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Task 1- managing building and brand overtime
Introduction
A brand is the symbol, logo, design, term, name or any other intangible characteristics that can
be identified with a product and differentiate the products from other available products in the
market. A brand is developed to get recognition from the people. The improved quality and
services of the products enhance the brand image of the company (Rosenbaum et al., 2015).
The commercial value of the brand is termed as the brand equity this increases as a business gain
more recognition from the market. The growth and development of the brand are depending
upon the experience of the customer with the particular brand and that increases brand equity.
Awareness, loyalty, trial and awareness of the brand enhance the value of a brand. A company
can charge more if it has strong brand equity (Lee et al., 2017).
Successful brand building stages
Brand building is used to generate awareness, promoting and establishing a company using
tactics and strategies and it enhances the brand equity of an organization using different
advertising and promotional tools (Rosenbaum et al., 2015).
Brand team development
The company should pull a cross-cultural team to create a brand that will provide value to the
organization. It will help in launching and maintaining the brand (Heding et al., 2015)
Conduct business analysis
The environment analysis and internal analysis of the organization should be conducted to
understand the availability of the resources and also the impact of environmental factors on the
brand such as competition (Heding et al., 2015).
Conduct audience analysis
The brand is created and developed for the people. A business should be able to identify its target
audience and should satisfy their need accordingly (Heding et al., 2015).
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Develop a brand positioning
It speaks a competitive characteristic of a brand by providing an enhanced quality value to the
customers. The brand is positioned in the mind of customers by providing unique value (Heding
et al., 2015).
Create a consistent message and visual style
The visual design and message of advertising play an important role in branding so it is should
be developed creatively and attractively (Heding et al., 2015).
Launching and evaluating the brand
At last, the brand is launched with the effective implementation of planning. The effectiveness of
the branding is evaluated to understand how the brand is met with the need of the customers
(Heding et al., 2015).
Importance of marketing department in brand equity
 Department of marketing is responsible for conducting research to identify customer
desire and needs (Heding et al., 2015)
 Marketing unit of an organization attracts and influences to the customers to purchase the
products
 Marketing team looks at the operation of brand management and communicates the brand
to the potential consumer (Heding et al., 2015)
 It is accountable and responsible for creating brand awareness and ensures customer
loyalty (Heding et al., 2015).
Body
Brand management strategies
A successful and effective strategy of brand management provides benefits to an organization
and ensures its growth by extension of the brand, reinforcement of the brand, strengthening the
brand equity and revitalization of brand. Here the strategy of brand management will be
understood through Aaker’ in the context of the Coca-Cola organization (Tanveer and Lodhi,
2016).
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Aaker’s model
Sir David Aaker has defined the model of brand equity in which he differentiated and described a
different element of brand equity by which a successful brand strategy can be developed.
Understanding of these elements helps in brand extension and strengthens the brand (Tanveer
and Lodhi, 2016).
Figure 1 AAker's brand equity model
Source: (Tanveer and Lodhi, 2016).
Brand awareness
Brand awareness is the process of creating knowledge of the brand among the potential
customers so their purchasing decision can be evaluated by their brand awareness. Coca-Cola
customers are greatly aware of its products. People can easily take their purchasing decisions
based on brand awareness (Tanveer and Lodhi, 2016).
Brand loyalty
it is the loyalty of the customer that is given by them to a brand according to the value of a brand
perceived by them. Coca-Cola is in a good position to create brand loyalty and its customers are
loyal to its brands (Tanveer and Lodhi, 2016).
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Perceived quality
It is the quality of a brand which is perceived by the customers when they get delivery of the
products. The brands of Coca-Cola can meet with customer expectations and providing great
quality by adding value to its products (Tanveer and Lodhi, 2016).
Brand association
Consumer behaviour can be understood by the different elements of a brand. It includes the
intangible characteristics that take place in the mind of customers. The customers of Coca-Cola
form an association of a brand when they have enough information and Coca-Cola is creating a
brand association in the mind of customers (Tanveer and Lodhi, 2016).
Proprietary assets
It is the intellectual property of a brand which includes trademarks, patent, logo and image which
captures the attention of the potential and current customers. The trademark and logo of Coca-
Cola are attractive and qualitative which enhances the brand image of the company (Tanveer and
Lodhi, 2016).
Sometimes Coca-Cola is criticized for the development of unhealthy drinks and beverages and to
overcome these crises it is conducting many brand awareness program by using different
advertising technique. Coca-Cola is improving its current working method and focusing on
providing qualitative products in the market which helps in brand revitalization in the market
(Borges et al., 2017).
Nestle has tried hard to overcome from its Maggie brand crises and again successfully
established its brand position in the market. Nestle is using different techniques for brand
expansion and reinforcing the brand in the market. Different advertisement and promotional
tools help the company to build brand equity in the market (Mishra and Sharma, 2019).
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Conclusion
Importance of branding as a marketing tool
 Branding helps in understanding and recognizing the need for potential customers in the
target market (Lee et al., 2017).
 Branding helps in creating the desire of buying the company’s products
 Branding initiates distribution of the company's products and services and informs the
customers about the brand (Lee et al., 2017).
 Branding decisions help create goodwill and reputation of the organization
 Branding also helps in selling the products and making a profit for the organization
 Branding creates the credibility of the products and enhances the value of the offerings
(Lee et al., 2017)
 Branding is useful in providing brand value to customers.
 The marketing team of an organization is responsible to take the branded related decision
(Lee et al., 2017)
 Branding defines the quality of the products and differentiates the products from
available substitutes in the market.
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Task 2 Brand hierarchy management and brand portfolio
Brand portfolio strategy of the Mercedes
Brand portfolio is the collection of different brands on which an organization has great control.
Small businesses those include only one shop may have a single brand but the MNC corporations
have many brands under the brand portfolio. In a brand portfolio, many brands and brand lines
are presented to serve the different needs of the target market segment. Many models are there
which represents the brand portfolio of a company (Nguyen et al., 2018). Some models of the
brand portfolio are presented below:
House of brands
This strategy is generally used by a large organization that has multiple brands and operating
business under a single organization name. The organization has full control of its brands. When
an organization operates with many brands under the same cooperation name it is called the
house of brands. Mercedes has several brands under the same company name and these brands
are distributed in the market and failure in the one brand name does not impact the success of
other brands. Mercedes is a German automobile company and its house of brands includes
several brands in different product categories such as luxury vehicles, coaches, busses, and
trucks. These products are satisfying the different needs of the customers and the company has a
separate customer base in the market. Mercedes is focused on designing and innovation in its
product categories (Nguyen et al., 2018).
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Source: (Daimler, 2019)
House of blend
It is the mixture of the house of brands and branded house model and uses as well as descriptive
characteristics of both the models. Microsoft and Arcadia group is using this kind of model to
take the advantages of both the models. A company may use different brand names for its
products and also the company may sell its different products by using a single brand name
(Nguyen et al., 2018).
Branded house or sub-brands
Under this model of brand portfolio a company is having only one brand name for its many
products. Apple is using this kind of brand portfolio for the branding of its mobile and other
electronic items (Nguyen et al., 2018).
Hierarchy management of brands
A brand hierarchy is a graphical presentation of firm’s branding strategy by displaying many
brands according to their nature and common characteristics which differentiate them from each
other in terms of brand elements across the firm's products. Brands are combined in a specific
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Figure 2 Brand portfolio of Mercedes-Benz

order. The top to the bottom presentation of brands in a brand hierarchy includes company brand,
family brand, individual brand, modifier and product description.it represents the products and
services provided by the company into a target market. The clear structure of the brand helps in
understanding the different brand elements. Brand hierarchy of Mercedes presented below to get
a brief understanding of its products (Brexendorf and Keller, 2017).
Figure 3 Brand hierarchy of Mercedes-Benz
Source: (Daimler, 2019)
Mercedes has a complicated hybrid brand hierarchy. It is the main division of Daimler
Corporation who is dealing with its hybrid brand hierarchy. Daimler owns Mercedes brands and
in its, turn Mercedes has a hybrid brand structure combining the freestanding and monolithic
models. Its products and services carry its brand name, logo and identity of the brand such as
Mercedes bank, financial services, Mercedes Benz vehicles etc. its structure of freestanding
represents its other brands which are owned by Mercedes-Benz but have separate brand identities
such as Maybach and Smart (Daimler, 2019).
Hence, the brand hierarchy of Mercedes-Benz includes those brands which use the company
name and also those brand which are using different brand names. Mercedes is popularly known
for its luxury car segments and it is presenting many models of luxury cars. It is designing vans,
trucks and other vehicles under the same brand name (Daimler, 2019).
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