Effective Brand Management: Building and Managing Brand Equity

Desklib provides past papers and solved assignments for students. This report analyzes Tesco's brand management strategies.

Brand Management
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Contents
Introduction................................................................................................................. 3
LO1............................................................................................................................. 4
P1 Explain the importance of branding as a marketing tool and why and how it has
emerged in business practice..................................................................................4
P2 Analyze the key components of a successful brand strategy for building and
managing brand equity............................................................................................6
M1 Evaluate how brands are managed successfully over time using application of
appropriate theories, models and concepts.............................................................8
M2 Apply appropriate and validate examples within an organizational context.......9
D1 Provide a critical evaluation that is supported by justified evidence
demonstrating a comprehensive understanding of branding within an
organizational context............................................................................................10
LO2........................................................................................................................... 11
P3 Analyse different strategies of portfolio management, brand hierarchy, and
brand equity management.....................................................................................11
M3. Critically analyse portfolio management, brand hierarchies and brand equity
using appropriate theories, models and frameworks.............................................13
LO3........................................................................................................................... 15
P4 Evaluate how brands are managed collaboratively and in partnership both at a
domestic and global level......................................................................................15
M4 Critically evaluate the use of different techniques used to leverage and extend
brands....................................................................................................................17
LO4........................................................................................................................... 18
P5 Evaluate different types of techniques for measuring and managing brand
value using specific organisational examples........................................................18
M5 Critically evaluate the application of techniques for measuring and managing
brand value in relation to developing a strong and enduring brand.......................20
References................................................................................................................22
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Introduction
Brand management is planning in marketing that helps any business to grow its
product value. A good relationship between the business and the target market is
essential for any business to grow, this process of creating a good relationship
between any brand and its customers for the fulfilment of the business purpose is
called Brand management. In other words, the process of maintaining and improving
a brand image with positive results called brand management (Tsimonis and
Dimitriadis, 2014). Brand management involves many important aspects such as
cost, customer satisfaction, competition etc. An effective brand can increase the sale
of not only one product but the other products of that brand.
In this report, a case study of Tesco will be considered which is a British
multinational grocery company and general merchant and headquarter of the
company is in Welwyn garden city, Hertfordshire, England. As it is the third largest
retailer in the world the company needs to maintain its brand image. A strong brand
presence of the business in the market will differentiate its products from other
competitors and will create a positive brand image for the company's products and
services. Brand management includes creating a brand and understanding which
products fir under the brand of that company. The aim of branding is to convey brand
messages to create customer loyalty and to build better connectivity with the
customer. It took years for any organization for creating a good brand image in the
market and to maintain that image every company needs proper brand management
(Ashworth, et. al., 2015).
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LO1
P1 Explain the importance of branding as a marketing tool and why and how it
has emerged in business practice.
Branding is a marketing process in which a company creates its brand name, symbol
or design which helps to identify its products and makes them different from other
companies. Good branding increases the value of the company in the market and
provides its employee's direction and motivation to acquire new customers.
Following are some reasons why branding is important:
 Branding Creates Trust: - When a company presents itself in a better
professional way that proves that its products and services are better as
compared to other companies available in the market, it builds trust in the
customers and they feel comfortable giving their money.
 Branding improves Recognition: - Brand recognition is how a company gets
recognized in the market and becomes known to the customers. The logo of
any brand is the most important element of branding as it is the face of the
whole brand. The logo should be that powerful that it can make an impression
on the person at first glance.
 Advertising supports branding: - Advertising is also an important component
of branding. It depends on the medium by which the company advertises its
products and services (Brunello, 2013).
 Branding builds financial value: - A strong branding generates great business.
When a company put efforts to maintain its position in the market, it will
increase its financial growth.
 Branding inspires employees: - When employees of any company understand
the aim of the business and for its being, they will work in the right direction to
achieve the goals of the business.
 Branding attracts new customers: - Good branding makes a positive
impression of the company in the customer’s mind. It increases the interest of
customers in that brand. Once a company gets established, its customers will
be its best and most effective advertising technique.
 Branding improves employee satisfaction: - When an employee works for an
established brand, he will feel more satisfied with the work done by him.
 Branding helps a company to stand apart from the competition: - It is very
important for any brand to create its different image in the global market.
Branding helps any organization to stand apart from its competitors in the
market.
 Branding generates referrals: - When people like any brand they used to tell
others which brand they like. Good branding helps customers to remember
the brand name so that they can refer it to others.
Branding helps any organization to identify its products, services and its status within
the market. A good brand is built via good advertisements, messages, and images. A
company needs to convey its brand statement on the most appropriate platform. A
company needs to connect with the customer at an emotional level so the customer
starts to identify the brand. A successful brand will never stick to any traditional way
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that delivered results in the past; it has to adopt changes in the market conditions
(Leek and Christodoulides, 2012). The social network is an effective and powerful
platform which can attract more customers and create loyalty towards the brands.
Branding helps companies to collaborate with customers across all sectors. It’s
easier for the company to modify its tactics instead of introducing a new strategy.
While preparing any marketing strategy company should always have its customers
in mind. Being a multiproduct company, while preparing the branding strategy, Tesco
needs to concentrate not only on any specific product but on the whole brand.
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M1 Evaluate how brands are managed successfully over time using
application of appropriate theories, models and concepts.
Today in the global market, branding plays an important role. Every organization
needs to do branding of a specific product, product line or brand. Branding is the
process of identifying and differentiating the image of products and services offered
by the company from the other companies available in the market (Gandini, 2016).
Branding Theories
Brand loyalty: - Brand loyalty is what relationship the company maintains
with the customers. It includes the positive behaviour of the customer towards
the company with an emotional attachment to the customer will never go to
check other companies.
 A specific brand name which portrays the product image in the mind.
 Aware of the people about the brand and its specifications.
 Try to understand the requirements of the customers to fulfil them.
 Establish a good relationship with the existing customers to keep
growing.
Brand Awareness: - Brand awareness is the measure of how a brand is known. It
depends on the brand strength, familiarity, and customer's considerations etc.
Existing customers increase brand awareness and can bring new customers.
Brand associations: -How well a brand’s products and services are recognized
within its category of products and services is called brand associations. It depends
on the image of the brand in the customer’s mind (Melewar, et. al., 2014).
Brand identity: - Brand identity is how easily a customer can recall or recognize the
brand whenever he thinks of the product and service category offered by the
company.
Brand Responses: - Company should consider customer’s judgments and
feedbacks for better brand recognition.
Brand relationship: - It is the bonding of the customer with the brand. For better
brand relationship company should take proper feedback from the customers from
time to time.
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P2 Analyse the key components of a successful brand strategy for building
and managing brand equity.
Brand strategy is the planning for the successful development of any business.
Brand strategy helps the company to achieve its goals.
Main components of a successful brand strategy
Define the brand: - The main purpose of branding is to create a different image of
any company’s products and services form the other competitors. It can be a single
product, an entire product range or a company. A brand name can consist of a logo,
a graphical representation to strengthen the brand image.
The brand is the business model: - Every company needs to support and challenge
its business plan for maximizing the potential of the brand.
Consistency: - For successful brand equity every company needs to maintain
consistency. Consistency in the message helps the company to maintain its brand
image.
Brand Positioning: - Brand positioning is the image that a brand holds in the mind of
its customers. Brand position defines the company's position in the market as
compared to its competitors. Brand strategy is a tool to create good brand
positioning in the market. A company needs to identify where the opportunities in the
market for the company to grow are. A company should set its brand apart from its
competitors in the market (Niedomysl and Jonasson, 2012).
Brand personality and values: -Brand personality means the way a brand engages
with the outside world. The relation between the brand and the customer should be
relatable. Brand personality is the tone of the Brand.
Brand Promise: - a Brand promise is the guarantee of value to its customers. A
company should maintain its promises and values to the customers to build trust in
them.
Start inside out: - Employees working for the company can better explain what they
feel and think of the brand, so the company can have an idea about what people
think about the brand before presenting it in the market to the customer.
Brand Expression: - Company logo, website, tagline all are the part of brand identity
and brand expression. Brand should be identified not only by its name but by its
logo, sound, and colour etc.
Brand perception: - To identify brand Perception Company needs to do the survey
with the current customers to find out what they think of the brand. Before
approaching new customers first company needs to observe its perception with the
existing customers. When the company will get to know what its target customers
want, it can observe growth in the market.
Connect at the emotional level: - Branding is not just a logo, name and
advertisements etc. A company needs to do branding in a way which not only
satisfies the physical needs of the people but connects people with the brand
emotionally.
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Stay flexible and relevant: - Company should not be rigid with its terms and
conditions; it should be more flexible and relevant to adopt new changes for the
betterment of company growth (Kavaratzis, et. al., 2013).
Align the tactics with strategy: - For better branding company needs to align its
tactics with a strategy so that the strategies can be implemented in the market in a
better way.
Keep enemies closer: -Every company has its positive and negative aspects, so
every company needs to keep its competitors in mind while preparing any strategy
for branding.
To build and maintain brand Equity Company needs to focus on its branding
components by which it can improve the growth and business in the market. A
company should keep its branding strategy up to date to adopt the market changes
as per the requirement.
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M2 Apply appropriate and validate examples within an organizational context.
Tesco is a multinational multiproduct company. It has expanded globally since its
establishment and currently operating in 11 countries of the world. It deals with many
products like books, furniture, toys, clothing, electronics, petrol, software, financial
services, and telecom services. It starts its brand with a single shipment of tea and
after it has been expended to multiple sectors.
Some of the examples of brand management strategy in Tesco can be defined as:
 The brand name helps any organization to differentiate the identity of the
company in the market. It helps customers to identify the brand of any product
and service of their choice. Brand identity includes brand name, brand logo,
tagline etc. Tesco has made its labels with the initials of the two different
names.
 Brand purpose is the reason why the brand is built and why and how it is
necessary for its customers in every aspect. It defines the category of the
brand. Tesco started to expand its range of products after defining its brand
name.
 Every brand should deliver a unique story for better brand positioning. Tesco
started to acquire new companies for business expansion and brand
recognition. After getting recognition in the market it started to expand its
range of products and services (Rubio, et. al., 2014).
 Advertising is most important for any company. Tesco’s advertising tagline is
"every little help". It helps the company to attract the customer’s attention.
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D1 Provide a critical evaluation that is supported by justified evidence
demonstrating a comprehensive understanding of branding within an
organizational context.
Branding of a company is not only the tagline, logo and business cards; branding is
completed when the company has the following components –Position, personality,
promise, associations etc.
Branding involves brand name selection, brand positioning, brand delivering, brand
development etc. Good branding and marketing help any small business to establish
in the market. Good branding creates loyalty in customers. Branding is important for
every business as it increases brand value and motivates its employees. The owner
of the company Tesco used to motivate his employees by business taglines. He
started a loyalty card also for its customers (Barreda, et. al., 2015). A company
should plan its marketing and branding strategies according to the company's
financial budget.
The most important branding strategy is starting inside out. The employees working
inside the company can better understand the perception of the customers about the
brand. The employees associated with the company can give true feedback about
the products and services offered by the company. Being a multinational company
Tesco began its marketing and branding itself instead of hiring any marketing and
branding company to describe its core values and purposes to the target market.
This helps the company to expand domestically as well as internationally.
Advertisement strategy of the company should be relatable with the products so that
the customer can relate it with daily life and can analyse the importance of the
product. For successful market growth company needs to focus on both customers
as well as employees as the employees of any company are the face of the
company.
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LO2
P3 Analyse different strategies of portfolio management, brand hierarchy, and
brand equity management.
Brand portfolio management consists of all the brands that the company runs. In the
brand portfolio, all the products of the company used to group them all together. For
example, Hilton Hotels and Resorts the company also owns various other business
entities, which are all clubbed together under the brand portfolio name "Hilton"
Worldwide.
Brand portfolio strategy can be understood by 3c’s:
1. Consumer’s price perceptions: This theory states that customers have
already predefined price range (maximum and minimum value) for the
particular product. The buyer tries to buy the product of superior quality with
their pre-decided price.
2. Consumer's quality perceptions: Consumer purchased only those
services or products that best satisfy their needs. The only way for the
company to survive in the market is to design a product within the determined
type of quality for the consumer.
Competition within the market: While making the strategies for brand portfolio,
the companies tries to minimise the damages that other competitors caused
to them by making best marketing strategy (Bodie, et. al., 2013).
Brand Hierarchy:
A brand hierarchy ensures that each and every brand is controlled and managed
individually. A brand structure or hierarchy confirms that all the products of brand
receive an equal part of the revenue, resources and assets. Following are the
branding hierarchy strategy:
 Corporate branding hierarchy strategy- It is the practice of using a brand's
name as a product name. When a group of the product is promoted under one
brand name. Example: In the company "Tesco" it is not only promoting it
groceries store but also it is promoting Tesco club card, Tesco Bank, Tesco
Mobile, Tesco Recipes, Tesco photos etc (Michalski, 2013).
 Individual branding hierarchy strategy- It is the marketing method of giving
each and every product its unique brand name under portfolio. The main
advantage of this is that each product has an identity and image for its
uniqueness.
Brand equity management: When the company starts gaining some brand equity,
then maintaining the brand valuation is very important for the company, irrespective
of the company’s size and nature. By maintaining the equity value in the market,
“Tesco” can demand premiums and maintain a margin to be in highly profitability
state. Following are the strategies for maintaining brand equity:
 Communication: Brand equity cannot be accomplished without a proper
communication technique. In today's world, communication can be sent in
many ways like online and mobile. The brand also needs strong speakers
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(people) to fascinating investors; solve the legal matter, and increasing sales
(Bodie, et. al., 2013).
 Awareness: Another strategy for maintaining brand equity is spreading
awareness for the company’s products or services. Brand awareness means
that buyers can remember a brand name and its value.
 Ethical and legal decision making: For maintaining the brand equity
companies are expected to make ethical and legal decisions. When the
company is not able to fulfil their promises then the buyers may raise the
issues to the state legal authority or to the consumer court then the company
is expected to take the ethical decision. Brands that operate ethically and
legally are able to build trust and long period relationships (Heding, et. al.,
2015).
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