Building and Managing Brand Equity: A Virgin Trains Analysis

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BRAND MANAGEMENT

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1 (Building and managing brand over time)...........................................................................2
Introduction..................................................................................................................................2
Overview of brand and brand equity...........................................................................................2
Impact of brand management on Virgin Trains...........................................................................3
Marketing department role in enhancing brand equity................................................................3
Brand development of Virgin Trains...........................................................................................4
Strategies of brand equity management and building..................................................................5
Agenda for strengthening brand equity of Virgin Trains............................................................6
Conclusion...................................................................................................................................6
Task 2 (Brand portfolio and hierarchy management)......................................................................7
Evaluation of brand portfolio strategy.........................................................................................7
Brand hierarchy management illustration in Virgin Trains Portfolio..........................................7
Brand equity management strategies in firm’s portfolio.............................................................9
Task 3 (Brand extension and leverage).........................................................................................10
Brand leveraging strengths........................................................................................................10
Weaknesses and techniques to manage brand leveraging.........................................................10
Agreement of collaboration and partnerships............................................................................11
Task 4 (Measuring and managing brand value)............................................................................12
Brand Value...............................................................................................................................12
Market Share..............................................................................................................................12
Brand Awareness.......................................................................................................................12
Purchasing Intent.......................................................................................................................12
Consumer Attitudes...................................................................................................................13

Brand Auditing..........................................................................................................................13
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

LIST OF FIGURES
Figure 1: Branding constituents.......................................................................................................2
Figure 2: Brand development pyramid............................................................................................4
Figure 3: Brand reinforcement plan.................................................................................................5
Figure 4: Brand portfolio of Virgin Group......................................................................................8
Figure 5: Essential of brand auditing.............................................................................................13

Introduction
Brand management refers to method of developing connection or relationship in firm’s product
as well as emotional customer perception with motive of creating competition and creating loyal
relations with consumers. The current report is aimed on promoting the brand of Virgin Group
by discussing branding importance and elements for managing and building brand equity with
help of marketing manager. The report will highlight different business of Virgin brand in which
development of Virgin Trains will be discussed from strategies of brand equity, brand hierarchy
and portfolio management. Further, the report will evaluate management of brands through the
collaboration and partnership at global as well as domestic level. At last, report will emphasize
on techniques to measure and manage value of brand with several examples.
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Task 1 (Building and managing brand over time)
‘Brand is Power’
(By: XYZ)
Introduction
The article below will discuss about brand importance that is determined as marketing tool by
the marketing department of Optimum Impression Ltd that is known as advertising firm and took
responsibility of developing Virgin Group brand under Virgin Trains business name with various
elements by marketing manager by designing brochure in promoting brand name in customers.
Overview of brand and brand equity
The term brand is identified as service, product or concept that is recognised from differentiated
features by making product marketing effortless. It contains logo, design, symbol or name that
helps in satisfying consumers and gives stiff competition to rivals. Managing brand makes work
easier as it gives easy identification, business strategies interaction, provides motivation, creating
strong and healthy relations with buyers etc (Keller, 2016). The brand name and its signs
including, symbol, logo or design requires protection from different businesses for which
trademark is initiated on a firm’s brand. Therefore, marketing manager of Virgin Group needs to
focus on various plans that help in developing Virgin Trains product through different and
powerful marketing sessions.
Figure 1: Branding constituents
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(Source: Brand Management, 2018)
Further, brand equity is term initiated for calculating brand’s worth by valid and legal forms of
branding elements. This aspect help in increasing consumer loyalty towards brands as price
aspect plays crucial role in buying decisions and referring plans to other that is only done if firm
is charging reasonable prices. The strong method of branding firm helps in boosting sales as well
as reputation in front of customers and market competitors (Sasmita and Mohd Suki, 2015).
Impact of brand management on Virgin Trains
Brand equity in developing Virgin brand plays key role as it brings sentiments and positive feel
in consumer when provided with right and relevant information about product or services. The
last five decades of businesses, brand name and logo has helped in representing business within
world. For instance, being the product of Virgin Group the Virgin Trains can gain popularity and
success by promoting services through Virgin Media that will help in securing huge funds that
will obtain higher consumer base across world. For instance, the social media coordinator of the
firm has targeted Twitter, YouTube, Instagram, Facebook and LinkedIn for targeting the younger
customers that are counted in travel obsessed audience for Virgin Trains travelling. Thus, it will
impact positively on services and profits of firm by marketing its products by various channels
that makes firm competitive, arranges higher consumer base and popularise its services. The firm
planning to establish brand name must follow various stages so that marketing department can
manage its operations in competent manner (Rosenbaum-Elliott, et.al, 2015).
Thus, the marketing manager of Optimum Impression Ltd needs to use stages such as creating
brand development team, doing business analysis, conducting audience analysis, creating brand
positioning, creating regular visual style and messaging and at last brand launch and evaluation.
Marketing department role in enhancing brand equity
The brand equity is developed by marketing department that helps in promoting new train routes
and timing and services worldwide that develops brand name and success of all firms and good
created by Virgin. The positive light is given to business investors, customers and community by
that of developing brand name. The brand promotion helps in dispensing higher profits, gains
consumer faith, created differentiated identity and develops market image. It is important for the
marketing manager to aim on several platforms while brand promotion that comprises decision
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making, strategy, emotional bonds, communication, value etc (Heding, et.al, 2015). For instance,
marketing manager in firm takes help of social media head and coordinator to promote brand and
its products with regular updates on social sites that plays large platform role in enhancing brand
name.
Brand development of Virgin Trains
Figure 2: Brand development pyramid
(Source: Branding Pyramid, 2016)
Virgin Trains is determined as train operating firm in UK that is acquired by Virgin Rail Group
which is joint venture of Stagecoach and Virgin Group. It operates within largest six cities of UK
that holds over 18 million population. It was started in 1997 with 3400 employees that are based
on franchise with expiration time in March 2020 that will not be increased further. The current
case study of Virgin Trains in which clients has been targeted related to business field that books
in standard class and now they can book in first class by paying extra pounds in case booking is
done before 6pm (Lithopoulos, et.al, 2018). It is being done because trains faces higher booking
from business class people and allowing in first with extra pound will help in developing brand
that will further impact on Virgin Airlines too. The benefit will be the same for travel agents too.
Thus, marketing manager can promote new service using brand pyramid that will positively
impact on results.
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The brand name of Virgin will get exposure from new plan in product by using several elements
of brand pyramid that consist of brand idea, emotional values, brand product, functional benefits
and core values. Thus, this pyramid makes essential for Optimum Impression Ltd to aim on its
elements by creating strategic plans for brand promotion. The image will be improved by giving
extra services like seating board, IT power points etc that will enhance traveller ratios. The base
of consumer in new service can be boosted by better pricing plans and satisfaction grounds. For
instance, comparative pricing idea is adopted by firm that helps in serving huge customers
(Oliva, 2018).
Strategies of brand equity management and building
The brand name can be popularised within customers by brand extension that initiated method
of popularising brand and its services. For instance, Virgin brand is aiming to develop by service
for travellers counted as 50000 in business class that needs such plans. Extending brand will help
in sales hike and growth. The marketing manager needs promotional plans that are long term in
which brand reinforcement can be used. The brand reinforcement is initiated by manager that
gives survival to brand name by displaying meaning and importance to buyers with new plans.
The model of product is targeted just like allowing business class people in first class because it
has found 50000 people has travelled in business class in last month that might give exposure.
Figure 3: Brand reinforcement plan
(Source: Reinforcement, 2017)
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In addition brand revitalisation refers to plan in which poor serviced product becomes old in the
market and targeted to be improved for repositioning (Wilner and Ghassan, 2017). For instance,
Virgin has invested £8m for campaigning ads for outdoor, TV, radio, print, experimental and
online using ‘Arrive Awesome’ tagline for giving huge benefits. In similar way, brand should be
revitalising for repositioning in market full of competition.
Agenda for strengthening brand equity of Virgin Trains
The brand of Virgin is targeted by marketing unit to promote for satisfying consumers and to get
huge revenues. It can be done using model of Aaker’s Brand Equity that will determine problems
and initiate improvement solutions for enhancing brand development. The brand equity consists
of set including assets and liabilities that were founded by David A. Aaker linked to symbol or
name of brand. The brand of Virgin can be strengthened using:
 Perceived Quality – The quality of product should specify to employees so to dispense
standard services by discussing hazards of poor services (Datta, et.al, 2017).
 Brand Loyalty – The area of consumer loyalty can be determined. Thus, Virgin Trains
needs to give normal rate increase for entering in first class for increasing loyalty.
 Brand Awareness – It identifies product in crowded market that needs to boost consumer
base within firm.
 Brand Association – The customised services is important for associating brand that
means the colour red must be used while promoting first class service.
 Other Proprietary Assists – The marketing manager must take care to dignify and display
brand name using its intellectual rights, patents and trade partners that helps in dispensing
global competitive edge (Christodoulides, et.al, 2015).
Conclusion
The above article has helped in describing branding importance to business and marketing unit as
it takes huge ideas and research for promoting brand worldwide with new services and products.
The Virgin Trains with new service has given huge exposure to success as branding the business
or new service help in recognising business, boosts value, brings new consumers, improves pride
and satisfaction of employees and supports advertising as main source of reaching customers. So
branding is important to business as well as marketing unit for serving and attracting consumers.
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Task 2 (Brand portfolio and hierarchy management)
Evaluation of brand portfolio strategy
The strategy of brand portfolio is identified as protection area that collects brand lines to achieve
market segment needs. In this, single brand name provides different categories of products and
services that serve consumer satisfaction. Thus, it is important for Virgin Trains to create brand
portfolio strategy by adding new service for business class people that enhances its brand name.
It can be done by using better promotional techniques and making consumer feel comfort in first
class unit (Randhawa, et.al, 2017). There are various models of brand portfolio that includes:
Branded House – This is model that aims to create one brand name for all categories of products
and services. It helps in creating strong image and consumer base as it relies on simple product
recognition policies.
House of Brands – In this method, promotion of sub brands are done by eliminating style of
promoting organisation or corporate firm. It generally includes small services and package based
on which promotion is applied.
From above models, branded house is best model for promotion Virgin Group’s brand portfolio
as it contains variety of product and service range in single brand name that consist of Virgin
Atlantic, Virgin Care, Virgin Holidays, Virgin Casino and Virgin Vacations etc. One brand name
for all products makes easy for marketing and sales departments as consumer can be targeted
easily with similar brand name and positioning can be checked based on brand name rather than
using firm’s name (Laforet, 2017).
Brand hierarchy management illustration in Virgin Trains Portfolio
The term brand hierarchy is utilised for outlining brand strategies and plans that takes out brand
elements within products. The geographical locations are aimed for developing brand promotion
strategies. Hence, single brand name is called as brand constituents from top to bottom stage. It
includes:
Corporate Brand – In this, product or services is determined in market through its firm’s name
that is further marked as brand name. Therefore, the starting of new service in Virgin Trains will
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provide exposure to brand name but can be further developed using new brand names for firms
fall in transportation (Brexendorf and Keller, 2017).
Individual Brand – It comprises multi or individual branding by creating one brand name for
one product. This is easy plan for recognising any product. The brand promotional strategy can
be enhanced by trying to create different brand names according to product category for making
easy for people and firm too.
Family Brand – In this, the promotion of products and services becomes much relevant and
easier as one brand name is given to variety of product categories. This strategy helps in creating
strong relations within firm, stakeholders, customers etc that provides trust, faith and loyalty to
firm from which higher revenues can be captured.
Figure 4: Brand portfolio of Virgin Group
(Source: Niteen Bali, 2016)
From above brand hierarchy of Virgin Group, it states that the firm has numerous product ranges
that help in satisfying consumer (Herrero, et.al, 2017). But at same time the firm is found to be
overextended from which improvement becomes tough and adding new service becomes drastic.
In such situation the firm must focus on creating different brand names for making easier for
consumer and even the negative impact from one product will not disturbs image of whole firm.
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