Effective Brand Management and Equity for Tommy Hilfiger

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Brand Management
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Table of Contents
Introduction................................................................................................................. 3
LO1............................................................................................................................. 4
LO2............................................................................................................................. 7
LO3........................................................................................................................... 11
LO4........................................................................................................................... 13
Conclusion................................................................................................................ 15
Reference List...........................................................................................................16
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Introduction
The process by which the companies make sure that their brand is developing in a
genuine manner is termed as Brand Management. The process assists the company
in creating a good image against the brand name in the thoughts of the buyers. The
main target of the project was interpreting the ways by which the productivity can be
raised including the profit margin of the organization operating in the market. The
company selected for the project is Tommy Hilfiger operated in the United States
(global.tommy.com, 2019). Holding the top position among the various fashion retail
companies in the market, this company aims at serving their customers with the
latest fashion trends occupying the market. The centre of attention of the assignment
is on the strategies that could be executed to manage the brand name of the
company smoothly in the market. Therefore, the organization should be focused on
the proper attainment of the brand requirements, for the development of the brand
image and their products launched in the market.
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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
The main ingredient used by the companies to attain a fair amount of recognition
among the customers is Branding. The process of branding as a tool of marketing is
not a easy thing to be executed by the managers of the company. Branding is not
only attaining the target customers but also to gain the prospects of the fellow
customers. The strategies of the company should be communicated properly among
the employees so that there is proper utilization of plans executed (Okonkwo, 2016).
It also helps in differentiating a product from the other. Branding creates an impact
among the customers so that the customers prefer to choose the brand. In this way
the company puts up itself in front of the customers distinguishing it from the other
brands.
The areas on which the brand should focus on developing are advertising and
customer service. All these elements should be developed to create a unique brand
image so that it attracts the customers. Strong branding means that there is good
impression of the company among the customers. Once the brand image is set
properly, then word of mouth becomes the tool for the company. As the customers,
starts believing in them under any situation. It is crucial to understand that the
strategies implemented for the brand activities should be managed properly to attain
advantage in the business. The organization should take the brand management
activities seriously to raise their profit margin in the market. The importance of
Branding is as follows:
Increase in revenue generation
Tommy Hilfiger, must use their branding activities to raise their revenue generation
in the market. By following the process, it becomes easier to attain a higher level of
production in the market. The brand manager should focus on executing their brand
image in a suitable manner, so that it catches the eyes of the buyers. In short, the
product branding must be an attention seeker of the market. This results in assuring
the managers that their company is growing a good name in the market and is
progressing. Along with this, the company can approach a new market altogether
and therefore increase their profit margin in the market (Hudson et al., 2016).
Creating customer preference
It is important for Tommy Hilfiger to ensure that the product branding is done in an
apt manner so that it catches the eyes of the customers. For the above process,
there should be proper advertisement of the brand among the customers. They
should also be knowledgeable about the brand so that they can prefer the particular
brand keeping aside the others in the market. The company should develop such
products that are preferred by the customers, this will in turn approach the customers
for buying the products of the company (Chung et al., 2018). The company should
focus on the customer’s feedback and their behaviour towards the product so that
they can get exact result of the product launch.
Helps dealing with crisis scenario
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It may sometimes happen that the company lowers the product quality and the
customers lose their interest in buying the others products that are offered by the
brand. At this point of time, the company should execute their branding activities
properly to gain back the lost faith of the customers on the brand. However, on
having a strong customer base helps in dealing with difficult situations happening in
the market. In short, the main attention of the manager of Tommy Hilfiger should be
on customer’s satisfaction so that they gain love and respect from them.
Overcoming competition
Competition is something present in every sector of the industry. The brands also
face such competition. As a result, the employees become less productive and the
profit margin of the company decreases. The company should formulate such
strategies so that the competition in the market does not create a huge impact in the
working and they can overcome with the situation. Therefore, the company gains a
competitive extremity in the market (Kavaratzis and Kalandides, 2015).
Nowadays it is necessary to understand that Branding is used as a crucial marketing
tool, which helps in the growth, and up gradation of business. The companies
operated in a proper manner, which helped them in attaining productivity and rise in
profit margin of the company. In order to help the customers, the branding process in
executed in a manner which is appropriate. The major goal of branding helps the
company to ensure that the working of the employees is proper and they are
following the rules and regulations.
P2 Analyse the key components of a successful brand strategy for building
and managing brand equity.
It serves as an advantage for the company to have well-organised brand equity
because it helps in developing the brand strategy in a proper manner. Well-devised
brand equity helps the company to maintain their branding in a significant way
(Heding et al., 2015). The brand management comprises of some main keys and
they are as follows:
Enhanced brand quality
The company should maintain the quality of their products for a better customer
relationship. The customers nowadays look for a valuable brand while purchasing a
particular product. Therefore, Tommy Hilfiger management must ensure that the
workers maintain the desired product quality so that the customers are satisfied with
the product (Pantano and Dennis, 2019).
Target audience
It is mandatory for the brand to choose target customers efficiently so that it benefits
the brand. Choosing the right customers helps them to identify the choices of the
customers, which helps in the productive management of the company. Tommy
Hilfiger will therefore attain a good brand image among the customers.
Connection with target customers
It has been found that the customers mainly prefer the products of those companies
who have superior brand equity in the retail world. Therefore, the retailer should
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have a superior brand image to achieve the target customers. On the other hand, the
customers compare the product and their quality with the other similar products
present in the market. Furthermore, the company is advantageous when they have a
few customers who are emotionally attached with the company (K.K.F et al., 2016).
Those customers does not bother about the existing brand image, they will buy the
products of the brand under any circumstances.
It is observed that the company implements such strategies in the management,
which helps in maintaining the brand equity in a proper way. From the observation,
the company gets to know about their influence in the market among the customers.
Proper management of brand equity gives satisfaction to the customers. The
company should also understand the competition in the market so that they
formulate the strategies accordingly. The managers at Tommy Hilfiger should look
into the problems related to brand management activities to maintain the brand
equity of the company (Keller and Brexendorf, 2017). It also helps in decreasing the
various affects, which will not serve as a barricade in the working of the company.
Proper execution of the strategies of the brand supports the company in overcoming
the various changes occurring in the market.
Customer’s opinion serves as an important tool in the management of the company.
It is very important to know the feedback of the customers regarding a particular
product so that they can formulate the productivity accordingly. The company
maintains their brand equity through the feedback given by the customers. With the
customers opinion the company makes changes in the particular product so that they
meet the preferences of the customers. This feedback is vital for the company as
customer satisfaction is one of the major goals of the brand (Gorbunova, 2017).
Tommy Hilfiger, serves as the leading fashion retailer, the reason is customer
satisfaction. The company focuses on the customers to serve them better. It
formulates such plans so that it benefits the working of the company, increasing the
productivity and the profit margin.
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LO2
P3 Analyse different strategies of portfolio management, brand hierarchy and
brand equity management.
The brand Tommy Hilfiger needs to make sure that they provide right amount of
support in order to let their brand grow and develop. The support can be provided in
terms of management and creativity as well as innovation. Assets of brand
management need to be employed and implemented appropriately for the better
development of the brand. Through proper brand management strategies, the brand
can significantly attain better and strong market position in term of share. In order to
have an increase in market share, the managerial bodies play an important part.
They protect and provide advantage like leveraging to achieve better developmental
scenario (Pappu and Christodoulides, 2017). The managerial bodies are supposed
to possess clear and elaborated knowledge and comprehension of brand
management strategies that the company are going to adopt to manage and create
better portfolio for their brand, achieve elevated position in terms of brand hierarchy
as well as justified management of brand equity. The strategies adopted are
following:
House of Brands
The chosen company puts more effort, attention to manage, promote as well as
feature the sub-brands they possess but gives less amount of attention while
handling the main corporate brands. This strategy has made the scenario of
business even more complex. The strategic implementation has failed to provide
positive and fruitful results in terms of business management. The managerial bodies
are not able to handle the operations effectively. However, the company adopted
methods to overcome the situation. They have invested and given more financial
support to management strategies. The strategies will help the company in
spreading better brand message among the consumers. The consumers will regain
their trust to the branded products and show loyalty to the company (Herrero et al.,
2017).
Branded house
The strategy is directly opposite to the previous one. According to this strategy, the
company promotes the features and functions of their main brand instead of other
sub-brands. The strategic implementation is comparatively easier to operate and
administer. The managerial body has effectively controlled their operations focusing
solely on the main brand of Tommy Hilfiger. The brand message has reached to
almost every customer gaining his or her attention and preferences. The brand has
managed to create better imprint on the psyche of the customers. Their points of
view have changed. They easily identify and differentiate the brand among others in
the market. The brand has attained better market recognition by applying this
strategy.
The companies sometimes take the help of hierarchical strategy in order to manage
their brand. This strategy leads the companies in having proper and transparent
comprehension of similar as well as differential points within their brands. The
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company Tommy Hilfiger have managed to understand these differential elements of
their brand successfully. In order to provide better management strategies the
company have also used brand equity system to gain recognised position in market
status (Mohan et al., 2018).
Individual branding
This is also an important strategy, adopted by companies in order to have better
managerial as well as business practices in terms of branding. According to this
strategy, the portfolio of the brands is managed properly and carefully. Every product
possesses individual identity having significant names within portfolio of the brand.
The products are varied in range and type from other branded products. However,
the managerial bodies try to limit the diversities in terms of an individual product and
make it intact regarding features. The strategy helps the company to anticipate risks
factors that may lead to the failure of management process. The company is then
able to effectively handle and control the risks connected to the brand management.
This makes the managing as well as marketing procedure secure for every individual
product possessing distinctive identities. However, this procedure of business is
complicated. The task of giving each product different identities demands more
financial support and other resources from the company. The product also receives
high pricing in order to meet the brand criteria (Amaldoss and Jain, 2015).
Family branding
Branding always possess significant part in product developmental process.
However, in this strategy, the organisation plays the role of a family who offers the
resources. The strategy is also known as umbrella branding as the family
organisation acts an umbrella, which gives shelter and protection to the brands. The
companies produce several products but organisation possesses the corporate
liability of all the products. Tommy Hilfiger adopted and implemented this branding
strategy and attained higher amount of customers within current market. The
customers possess information about the branded products along with several
attributes that the brands are offering. However, the consumers do not have
knowledge of the product manufacturer that is the actual organisation. Therefore,
the organisation are sole provider of all the resources, supports for manufacturing
products and structuring strategies of management and working process but the
brands alone get all the attention and recognition in the market place. This provides
better brand image and gains customers that are more attractive (Astrachan et al.,
2018).
Modifier level
The branding strategy is also proven effective enough in terms of brand
management. This strategy helps the company to categorise their products as well
as services in accordance with their distinctions. This helps the customer to
experience a better identification process of the products. The employees and
workers innovate and alter features of the services to make them more acceptable
and relevant for current market needs and status. Thus, the customers are getting
satisfaction and allowing the brand to make a difference among other organisations.
The customers are sole bearer and creator of the brand image. Their perception and
purchasing as well as communicating experience are important in this creation of
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brand image. The equity and justice among brands and brand management process
is significant is this level (Lee, 2016).
The developmental process any brand is needs proper understanding regarding
market scenario as well as promotional procedures. Different managerial models of
brand equity will help and guide through the brand development.
Model of Brand Equity by David Aaker
The model of brand equity is based on the value subjected to each brand. Brands
having higher value are given more significance. Brand equity refers to the factor
that in what extent the customers are aware of the brand and how loyal they are
towards the brand, and how they perceive the brand. The model caters to the
decision-making procedure of the customers. The elements that govern this model
are proprietary assets like brand association, brand loyalty, perceived quality
and brand awareness. The customers need to be more associated with the
operations and brand performances. The company should gain more customer
involvement and engagement from their customers than other companies and
brands. They will gain advantage from competition. Better-branded products with
desired quality will attain loyal customers. The company purchase will increase 80%.
The actual quality should always be better than perceived quality. The customers
should have awareness about the product features and services they provide.
Figure 1: Brand Equity Model
(Source: Çifci et al., 2016)
Customer-Based model by Kevin Keller
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This brand equity model is described in the book ‘Strategic Brand Management’.
The factors of this model are identity, meaning, response and relationship in terms of
the brand regarding the customers. Brand identity develops salience though STPD
method including steps like segmentation, targeting, positioning and differentiation.
Brand meaning deals with imagery, user profile, purchase, value, personality,
experience, heritage, history and performance. Brand response means judgements,
credibility, quality, superiority, consideration, feelings, fun, warmth, excitement,
social, security, approval and self-respect. These entire factors act together to
establish better brand relationship with the customers.
Figure 2: Kevin Keller model
(Source: Ahirrao, and Patil, 2017)
Tommy Hilfiger will analyse all the aspects and design their branding strategy
accordingly in order to gain market recognition and increase profitability.
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LO3
P4 Evaluate how brands are managed collaboratively and in partnership both
at a domestic and global level.
The companies adhere to the process of expanding their business regarding
branding value so that they can have increase number of customers in local market
as well as in international market. The companies should consider several
demographic factors before expanding their market in other places because these
factors in some cases complement the business and branding and in other cases
crate drawbacks in managerial process. The companies can take help of different
managerial approaches to achieve success through their expansion process. They
can possess successful expansion in domestic as well as global market place. The
approaches are following:
Customer-based approach
The customers are the main focal point of branding in this process. All operations of
business and implementation of branding strategy are centered on the choices,
preferences and requirements of the customers. The company works in such a way
that the customers possess all information about the brand in a clear manner. They
purchases products according to what they need in that actual moment. In this way,
the brand is getting justice and the equity is assessed. The companies give all
importance to their customers while designing products and branding strategy. The
brand is getting more recognition and achieving strong individual identity among its
competitors. This strategy helps in both locally as well as internationally. The
customers are the ones who are responsible in creating a better brand perception in
the market. Their desired are needed to be fulfilled in both marketplaces
(Swaminathan, 2016).
Economic approach
This approach is mainly handled with the implementation of marketing mix that is the
4Ps. This company Tommy Hilfiger should consider all the four elements to design
effective branding strategy and manage the implementation process skillfully. They
can cover every small as well as large aspect of business and brand management
with these mixed elements. The customers will be completely satisfied with the
results and products. They will turn to the branded products of this company to gain
comfort. They will possess proper brand knowledge as in what are the company is
offering and providing them actually. They rationally analyze the products before
purchasing and enjoy the experience. In relation with economic approaches, the
brand should have personal attributes like stated purpose, tagline, logo, name etc. to
achieve distinctive position. The company should create proper plan of branding and
marketing. The companies should have backup plans to face any upcoming as well
as present situation. Brands also need to be made popular through several media
interventions and promotions (Tavassoli, 2015).
Personality approach
In most of the cases of branding and marketing it is observed that the customer
mainly focus on and look for particular attributes in branded products and purchase
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only those products which cater to their choices, preferences as well as needs. Few
customers are there who buy products based on their popularity among others. Their
purchasing frequency and category are reflections of their personality and product
identification process. The chosen organization Tommy Hilfiger should design brand
attributes in such a way that satisfies customer needs. The branding strategy should
vary in different market places, as the personalities of people are different in different
places. This can be called as place personality (Ind, 2017).
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