Brand Management Report: Strategies for Nestle, PepsiCo, and Starbucks

This report offers a comprehensive analysis of brand management, focusing on building and managing brands over time, brand portfolio and hierarchy management, and brand extension and leverage. The report uses Nestle, PepsiCo, and Starbucks as case studies to illustrate these concepts. It delves into the importance of brand equity, customer satisfaction, and loyalty. The report examines brand portfolio strategies like house of brands, endorsed branding, and mixed brand strategy. It also explores brand hierarchy and the different stages of building a successful brand. Furthermore, the report evaluates techniques for measuring and managing brand value, awareness, and consumer attitudes, offering suggestions for extending and reinforcing specific brands. The report concludes by emphasizing the importance of branding as a key marketing tool and the need to consider target consumers and product features to improve brand image. This report is contributed by a student and is available on Desklib, a platform offering AI-based study tools.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
a) Building and managing brand over time............................................................................3
TASK 2 ...........................................................................................................................................5
b) Brand Portfolio and Hierarchy management......................................................................5
(a) PORTFOLIO MANGEMENT..........................................................................................5
(b) BRAND HIERARCHY....................................................................................................1
(c) MANAGING BRAND EQUITY......................................................................................1
TASK 3............................................................................................................................................2
c) Brand extension and leverage.............................................................................................2
(a) Strengths of the brand that can be leveraged....................................................................3
(b) Weaknesses that may need attention providing some possible suggestions.....................4
(c) Collaborative and partnership agreement.........................................................................4
TASK 4............................................................................................................................................5
d) Different types of techniques used to measure and manage brand value and others.........5
CONCLUSION................................................................................................................................7
.........................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Brand management is an analysis and planning on how a brand is perceived into the
market. Developing a good relationship with the target market is essential for the management
of brand. In the current scenario, brand management has become critical and logical to continue
the profitability for the business (Santos-Vijande and et.al 2013). This report will be carried on
three companies namely Nestle, which is the international leading food and drink company
headquartered in Vevey, Switzerland. Nestle holds different products like Nespresso, Nescafe,
Kit Kat, Smarties, Vittel etc., Pepsi. Co, which is the American multinational food, snack and
beverage corporation which is headquartered in Harrison, New York.
Especially, task 1 is based on Optimum Impression Limited, which is an advertising
company headquartered in Leeds, who basically gives business solution for advertising context
to their clients. This company has interest in manufacturing, marketing and distribution of grain
based snacks food, beverages and other products. The third company is Starbucks, which is an
American coffee company and coffee house, which is headquartered in Seattle, Washington in
1971. This report will be carried on brand portfolio and hierarchy management along with the
brand extension & leverage. Also, the report will put its focus on evaluating the techniques for
measuring and managing the brand value, awareness, consumer attitudes etc.
TASK 1
a) Building and managing brand over time
BRAND IS POWER
INTRODUCTION
Brand is visualisation of sign, design, symbol or combination of all these factors which
helps to make unique identity of a product and makes different from its competitors in industry.
With the help of brand, there is achievement of level of credibility, satisfaction and quality
aspects to consumers (Balmer, 2012). Trade mark is legal identity of organisation in business
environment, which gives impact on sales and revenues of association.

Brand equity is marketing technique which helps to describe brand value of
organisation. This refers to premium value which organisation has achieved with good quality
product and services. Brand equity can be created with achieve with recognisable and providing
product and services of superior quality.
Benefits of branding are as under-
 Customer satisfaction is one of the important aspect which can be achieved with the help
of branding of product and services.
 Customer loyalty can be achieved with branding as consumer are ready to purchase
product or avail services under brand image.
 With branding of product and services, there is confidence for people who are availing
services or using some product. Hence people gets inspired to purchase product and
sales of associations gets improved.
Stages of building a successful brand
There are six major steps which has to be considered by managers of organisation to
make brand successful in industry (6 Simple Steps For A Successful Brand Building Process,
2018). They are discussed as under-
 Firstly, there is requirement of targeting audience. This is step in which managers of
organisation has to analyse target consumers and meet their needs.
 After it, mission off brand has to be communicated (Annie Jin, 2012). This assist in
providing confidence to consumers and they prefer to avail services.
 After it, analysis is done in order to identify competitors. As there are many competitors
of association which affects sales profits of organisation.
 After analysing competitors, it is responsibility of managers to plan actions through
which they can make their products and services unique from others.
 In next step, there should some brand guidelines such as logo, colour combination, tag-
line, etc. for making product and services different from others.
 At last, there is requirement of marketing of brand which makes it different from others
and people are aware about product and services of association.
Role of the marketing department in creating brand equity
Marketing department plays, crucial role in developing brand image in industry these
days marketing of product and services is done with different sources such as social media
platform which helps to market new arrivals of organisation. This helps to improve brand image
in industry. Marketing department mainly works to provide information related to new product
and services to consumers. Hence there must be use of proper marketing channels which are
appropriate and relevant for attracting consumers and making unique image as comparison to

others associations.
MAIN BODY
Optimum Impression limited is the organisation which provides marketing plan to
different big brands. Nestle is one of the big brand deals in transactional food and drinking
sector. This organisation has numerous products such as Optifast, Maggie, Kitkat, Smarties,
Coffee Mate, Nescafe, Aero, Cerelac, etc. having different branding strategies.
For deep analysis of Nestle Brand it is essential to discuss importance of Nestle brand in
industry. This can be understood with the help of Keller's Customer Base Brand Equity Model.
This model was propounded by marketing professor Kevin Lane Keller. This model is also
known as Customer Based Brand Equity (CBBE) model. As per this model, there are different
strategy which helps to make strong brand image and make consumers how they feel about
Nestle and its products.
(Source: Keller’s Brand Equity Model, 2018)
Level 1: Salience
This is the stage which takes about “Who are we?” This level answers the questions
about the prospects of buyer about brand of Nestle. This is the question which is essential for
improving brand image and make strategies for creating awareness among customers.
Level 2: Performance and Imagery
In second level of model, there are two factors which has to be considered while
Illustration 1: Keller’s Brand Equity Model

improving brand image of Nestle which provides knowledge about “What are you?”. As per
performance factor, working style such as satisfaction of consumer, quality of product and
services are considered. While as per imaginary factor, it talks about strategies through which
managers of nestle can improve satisfaction of consumers. This can be done either with word of
mouth and more consumer interaction.
Level 3: Judgement and Feelings
In third step of model, there is discussion about judgement and feelings. In order to
understand it in proper way, there are four main factors. These factors talk about brand image in
the form of “What about you?” These factors are actual or perceived value about Nestle in mind
of consumers. This can be created with trust in mind of consumer, judgement of consumer
based on relevance of product in mind of consumers. At last, perception of consumer regarding
Nestle as compared to other competitive brands such as CADBURY, Hershey's, etc.
Level 4: Resonance
At last step, customers remain stuck to Nestle because of this quality, varieties of
product, etc. Customer become part of this step because of use of different interaction with
other consumers, price of product, quality, previous experience, etc.
Suggestions for extending and reinforcing specific brand
There are some suggestions which helps to improve brand image of Nestle and this helps
in revitalisation of brand name in industry. Managers of Nestle should use techniques to
measure brand equality and analyse scope which helps in successful launch of product. Regular
risk should regular analyse risk due to change in external environment components. There
should be more marketing strategies which helps to create awareness among consumers. In case
of any negative feedback, there should be proper actions.
CONCLUSION
From the above discussion it is concluded that branding is important tool which is used
as marketing tool. For instance, organisation wants to create awareness about brand in society
among people which can be done with the help of marketing channel because this is the best
way which helps to contact large number of people at the same time. Apart from logo, symbol,
colour combination, etc. marketing is also important for branding of product and services.
Marketing of product must be done by analysing target consumer, feature of product and
services so brand image of organisation can be improved.

TASK 2
b) Brand Portfolio and Hierarchy management
(a) PORTFOLIO MANGEMENT
Brand portfolio refers to a company under whose control the brands or brand lines of a
specific firm carries its activities to fulfil the demand of market segments. It encloses the brands
that an individual firm offer to it the people to serve their needs. The reason for creating this
portfolio is to control the brands, as they cannot exceed the prescribed limits for satisfying the
needs of different market segments. It is vital for retaining the customers and surviving in the
competitive industry for a long-run. Big companies like Pepsico has to work continuously to
improve their brand image. The brand image of Pepsico is very strong from decades because it
offers variety of products ranging from soft drinks to snacks. Pepsico may use the following
brand portfolio strategies to make it successful in the market:
 House of brands: Pepsico may use marketing strategies according to the different
products it offers. The strategies can be mould according to the requirement of the item to
make it famous. By applying this portfolio, a customer starts to recognize the product
from its name instead of company's name. Further, it becomes imperative to apply in case
where the company price each of its products at different price and to capture the targeted
market share.
 Endorsed branding: Under this model, the company collaborate with some other
segment of its own in the market. Pepsico launched potato chips under the label “Lays”,
when the product was a success, the company thought to launch “Doritos” so that
customer can have different taste. This is done to satisfy the customers in the relevant
market.
 Mixed Brand Strategy: A combination of all the above mentioned models are known as
brand mixed strategy. It is used according to the product requirements. The combination
is implemented to make the brand successful. It is an improvised strategy.
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In present business world, branding of product is being considered as one of a kind
strategy that basically changes at different times based on width of specific brands. It is being
analysed that, proper changes are required to be made and if it is talked about external business
environment, it is required for the company to become a unique brand in front of taregted
customers. In context, of Pepsi Co. brand, it is understood with two different factors:
Breadth extension- In modern world, breadth extension, consists of an element or
strategy and i.e. enhancement in range of product and services. An example can be taken of
Pepsi Co. which basically deals in wide range of concentrated drinks products and this could be
considered as breadth extension.
Depth extension- In depth extension there is launching of similar type of product but
with new characteristic of product. For example: Pepsi Co. deals in different product range like
mountain dew, Doritos, Brisk, Quaker Foods, Cheetos, Mirinda and so on.
(b) BRAND HIERARCHY
Brand hierarchy can be defined as pictorial description linked with branding of various
services or products. With the help of this, differentiation among products and services of Pespsi
Co. could be done, Having a good brand image at business world, Pepsi Co. products can easily
be identified by consumers. The brand hierarchy is as follows:
1. Corporate branding: It is a practice of using a company's name as a product brand
name. It is done to by using the corporate brand equity to make the brand recognisable in
the market. Pepsico is the identity of its products.
2. Family brand: When different products of a single group are marketed under one name.
For example: Johnson & Johnson Baby soap, Johnson & Johnson Baby lotion, Johnson &
Johnson Baby hair oil etc.
3. Individual brand: Under this, each product is given its own unique brand name in a
portfolio. The image, description and identity becomes distinct. The customer can easily
locate the products. For example: Procter & Gamble- head & shoulder, Gillette etc.
4. Modifier: It refers to word or phrase or even a clause that is used as an adjective or
adverb to add meaning to the other word.
(c) MANAGING BRAND EQUITY
Brand equity is defined as the premium value of a company's product which has a well
recognized name in comparison of other general products. Managing brand image in the market

requires various strategies. Some changes are required to be made to be in a competitive position
in the market. Competitors companies are making changes in very rapid manner according to the
marketing situations, so it also becomes essential for Pepsi co. to make changes accordingly. As,
Pepsi co. is a big company and also have many competitors in the market. Therefore, it is
important for the company to maintain its brand equity in the market. Strategies for managing
brand equity are as follows-
 Maintaining the products quality- It is very important factor to have a good
brand image in the market. Nowadays, customers prefer products which are of
good quality and which are latest in the market, so it requires for the company to
maintain the quality and to make regular changes accordingly for improvement of
the product. As, Pepsi Co. deals in different product range like mountain dew,
Doritos, Brisk, Quaker Foods, Cheetos, Mirinda and many more. So, it is required
for them to make required changes to provide complete satisfaction to their
customers which will result in maintaining brand equity of the company.
 Enhancing Brand awareness- Awareness about the product is very important
part for making necessary changes in accordance with the changing external
environment. As, Pepsi co. is a big company with various products it is essential
for them to create awareness among the customers for increasing the sales in the
market. Many platforms are used by the company to deliver awareness about the
product in the market to attract the customers.
These strategies are used to enhance the product value and helps the company to maintain the
brand equity in the market.
TASK 3
c) Brand extension and leverage
Brand leveraging is refers to as the strategies which is useful to get the power of an
existing brand name to support the company's entry into the new one, but the related product
category by communicating the valuable product information to the consumer. The major role of
the brand manager is to create the strong brand leverage, by maintaining the quality of an entire
products in different categories under the specific brands (Gertner, 2012). Lays, which is one of
the renowned chips brand of Pepsi-Co has positive brand image and prestige in the soul of their

customers. In support to this, lays has strong brand leveraging which has facilitate Pepsi-Co to
become the top brand into the food & beverage industry. To know the brand leveraging of the
Lays, its necessary to do the brief differentiation of both line and brand extension to know the
actual potential of the brand to launch new product either in same or different product category.
Brand extension is the complete expansion of the brand itself into the new territories or
market. On the other hand, line extension is the entire expansion of an existing product line.
Basically, line extension means the add-on of additional item into the similar product category
under the same brand name. The brief analysis of line and brand extension is as follows:
Benefits: Line extension is responsible to recreate the product line again and bring back it
for the public awareness by getting new customer's and higher profits. On the other side, brand
extension can increase the revenue by allowing the manufacturer to enter into the new markets
with some innovative solution to enhance the product identity on the optimised basis. In context
with Lays, Pepsi-Co has extend the product line of chips product by adding approx 5 different
flavour and taste to make the product more innovative and effective for the Pepsi-Co. Whereas,
line and brand extension both has allows the companies to promote their new product at reduced
promotional costs because any new line extension or brand get benefited being as the part of the
same established name. Pepsi-Co has also added Cheetos to their product line along with lays to
capture the market share, but as a result, Cheetos failed to perform, whereas lays capture the
major market.
Risk: When company introduces a new brand or line, there comes the probability that
company name could be tarnished, if product fails or not perform good. As a result, consumer
might feel less inclined towards the company's new product. In that case, each new extension
carries the name & reputation of an entire company at the risk or it could backfire. Extension can
cause the intra-firm competition and also could become reason for conflicts and division into the
structure of the company.
(a) Strengths of the brand that can be leveraged
Strength which needs to be leveraged: The major strength of Lays is its global image
along with excellent branding & advertising. As, this is the major strength of Lays, which has
created the hope or position for this brand to entering into the new markets. These leveraged
strength has grown the business of Lays at the higher and optimised level.

(b) Weaknesses that may need attention providing some possible suggestions
Weaknesses: The main weakness of Lays is its high fats and calorie content in its chip
products, which has been rejected by health conscious people. Lack of localized flavour and less
chips and more air in the packet has effected the brand image of the Lays.
After the complete analysis of strength and weaknesses of Lays, there has major scope
for improvement in the Lays product to contribute it for probability and efficiency of the Pepsi-
Co as the Parent company.
Suggestions: Pepsi-Co as the parent company of the Lays needs to enforce the various
guidelines & policies to enhance the brand image of this leading chips manufacturer. Lays needs
to over the quality of its chips product by lowering the fat and calorie content to make it more
popular among other customers. It is suggestible that Lays has more scope to enables their
distribution process more convenient and ease to make chips easily available to customer or if
not, it would lead customer's to away from the product (Kotler, 2018).
(c) Collaborative and partnership agreement
In recent times, Pepsi-Co has undergo to collaborative and partnership agreement with different
other company's to raise the competition and prevent themselves from being vulnerable. It has
been examined that Pepsi. Co has signed the strategic agreement with Alibaba group to the major
agenda of taking the full advantage of e-retail platform and data to carry out more innovative
experiments and solutions for generating the more business to Pepsi. Co products mainly the
Lays, because it contributes majorly to the revenue of this organisation. This pact was signed in
11 May, 2017. From the date of signing till now, it has given beneficial stances to both Alibaba
and Pepsi. Co in generating their business at the productive stage. Sales of the Lays chip has
increased more via this e-commerce platform, whereas it has been established especially UK. It
has benefited the Lays by facilitating the business in location where Pepsi. Co was tried hard to
established the Lays a the major brand. Apart from this, such collaboration has increased the
global presence of Lays in almost every country and Pepsi. Co revenue has increased at marginal
level.

TASK 4
d) Different types of techniques used to measure and manage brand value and others
In context with Starbucks, it is necessary to discuss and evaluate various techniques for
measuring and managing the brand value, awareness, market share etc. As, Starbucks is the
leading Coffee retail outlet with the higher brand image & prestige along with loyal customers.
Because of the bigger brand, it is crucial and significant to analyse various tools & techniques to
measure such brand image & customer loyalty. An evaluation of various techniques is as
follows:-
Brand value: It is considered as the net present value of an estimated future cash flows
attributable to the brand. In context with Starbucks, Market based approach is the suitable one
technique to measure the brand value of the Starbucks. This technique basically deals with the
amount at which at which the brand or product is sold and also which is related highest value that
a willing buyer or seller are prepared to pay for the assets. This approach is most commonly
when one wishes to sell the brand. Apart from Starbucks, Dunkin Donuts also use this technique
to measures their brand value. In context with Starbucks, there are various measures to audit and
track the brand value are as follows: identifying the strength of both the business and resources
of the brand, clarifying the value of the brand, in public and also in different market, identifying
the new trends along with new market opportunities to test the reliability and feasibility of the
brand and also keep the track on threats that come from outside the company, which is the major
part of the brand audits.
Brand awareness: It refers to the extent to which the consumers are able to recall or
recognize the brand. In simple words, brand awareness is the key consideration to the consumer
behaviour, advertising management, brand and strategic development. In context with Starbucks,
Company uses direct traffic tracking to measure its brand awareness. This technique is the
measures of the number of visitors that comes to the Starbucks websites through direct
navigation via any browser or through the bookmarks. This is an effective indicator of number of
people that are complete aware of the Starbucks brand and choosing to spend their time visiting
the coffee website. Apart from this coffee outlet, Costa Coffee uses this technique to measures its
brand awareness for the longer period of time. To maintain the brand awareness at an optimized
level, it is necessary for Starbucks to create and optimized their website accordingly to enables
the customer traffic and track them accordingly.

Market share: It is the percentage of the market accounted for by a specific entity. It
actually shows that overall market growth and business strength into the market. In context with
Starbucks, company uses financial metrics which is surrounding of brand equity which directly
tied to the sales performance. The way to measure the market share related to financial aspects
includes price premium over competition, average transaction value, customer lifetime value and
rate of the sustained growth. Apart from this, Starbucks use this method to know the actual
position and ranking of their coffee products into the market and to measure the relevancy with
its competitors. Market share generally predicts about the growth level of any products or
services. Financial metrics is useful to analysis the growth and product flow into the market.
Apart from Starbucks, McDonald's also use this technique to identify its growth statement period
wise and contribution of its product's sales into their revenue and profitability.
Consumer attitudes: When the preponderance of the people in the particular group feel
one way or another about the product, service, entity, person places or things, in that case, it
reveals the consumer attitudes. Starbucks uses attitude scaling techniques to measure different
psychological aspects such as attitude, perception along with the preferences of the people with
the help certain pre-defined set of stimuli and instructions. The stimuli may be certain brand of
the products. Apart from this, scaling procedures are nominal, ordinal, interval and ratio basis.
Apart from Starbucks, Domino's also use this technique to measure their attitudes level at an
optimised level.

CONCLUSION
From the above report, it is concluded that brand management is an aspect for enhancing
the existing of the brand and its physical existence. This entire concept has developed the brand
at the optimized level along with increasing the company's profitability and productivity. Brand
is power says that an unique brand has ability to influence the customer to make them purchase
the products & services. It is also concluded that brand portfolio has become important for every
to maintain and manage the different brands of similar organisation. Brand extension and
leverage has become for every organisation to enhance their brand or line of brand such as
adding new preferences to any particular products or services. Apart from this, evaluating the
techniques for measuring and managing the brand value, awareness, consumer attitudes etc., is
necessary and crucial for any particular brand to enhance the profit maximisation and
development.

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