Brand Management Report: Aaker's Model and Portfolio Strategies

This report provides a comprehensive analysis of brand management, focusing on strategies to build and maintain brand equity, recognition, and loyalty. It examines the application of Aaker's brand equity model, outlining steps for building a successful brand and the role of marketing in creating brand value. The report further delves into brand portfolio strategies, including house of brands, branded house, and hybrid approaches, evaluating their benefits and drawbacks. The study uses Nestle as a case study, analyzing its brand management practices and providing insights into brand leveraging, extension, and the measurement and management of brand value. The conclusion highlights the significance of branding as a marketing tool and its impact on business success.

BRAND MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
“Brand is power”.........................................................................................................................3
TASK 2............................................................................................................................................6
Brand Portfolio Strategies & Brand Hierarchy ..........................................................................6
TASK 3...........................................................................................................................................9
Brand Leveraging And Extension..............................................................................................9
TASK 4..........................................................................................................................................12
Evaluation of various techniques used for measuring and managing the different aspects......12
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Brand management refers to the technique which refers to managing and improving the
brand or products in order to increase the brand value, Brand recognition as well as brand
loyalty in the mind of target audience. Optimum impression limited is the advertising company
which is writing an article for the organization with the new marketing tagline “Brand is power”
the objective of this company is to give the significance of brand as well as by providing the
understanding that in what way the brand is build and managed. Nestle is the Swiss international
food and drink processing company, which was established in 1866 in Switzerland. The founder
of the company was Henry Nestle. It has its headquarters situate in Vevey, Vaud, Switzerland. It
deals with the products like baby food, coffee, dairy products, ice-cream etc. Nestle has 447
factories which operates in 189 countries and employs around 339000 workers. The study will
include the stages of constructing a successful strategy for brand as well as the function of
marketing in creating the brand and by analysing with the help (Abrahams,2016.)of Aaker's
model to strengthen brand equity. Further it will include analysing the portfolio strategy and
hierarchy management of brands and how the brand can be extended, measuring and managing
the brand value.
TASK 1
“Brand is power”
Introduction
Brand refers to the features such as sign, symbol, name, logo or design that can be easily known
and differentiated from other products.
Brand equity can be defined as the term which defines the value of the brand and that is
discovered by the perception as well as experience of the consumer.
The stages of building a successful brand
In order to build a successful brand in the market Optimum impression limited company
should follow the steps:-
A) Identify the target customers:- The first and foremost step that Optimum impression limited
should follow in order to build the brand is to identify the targetted customers and find out the
goal to fulfil the needs and requirements of the customers in an effective way. For that the
company need to decide the kind of communication that can deliver the message in the(Atwal,

and Williams,2017.) best way to the targetted customers as well as the company should target the
customers by segmenting the market as per the age, income occupation behaviour that will help
to build the brand.
B) Determine mission of the brand:- Secondly the Optimum impression limited should
determine the goals and objectives that it want to integrate with the targetted audience and for
that the company's mission as well as mission should match the aim its presence. The company
should communicate its mission through channels such that it can fix the path of communication.
 Research the competitors:- the next step the Optimum impression limited should do is
to analyse its competitors in the market in order to assess what type of products the
competitors are offering to its audience. The company should concentrate on its process
of branding to make the product differentiate from its competitors.
 Creating the value perspective:- The another point the company should focus on the
value perspective that can make the brand valuable as well as unique from the
competitors. In order to make the company successful the company should consider the
value perspective in the communication that the company operate across
channels(Balmer and Chen, 2017. ).
E) Ascertain the brand guidelines:- the company should set the specific rules and policies in
order to build and create the successful brand. It helps the company to maintain its regularity at
the same time it makes the company recognizable.
F) Marketing the brand:- The last but not the least the Optimum impression limited need to
market the brand by making the strategies that is fixed. The company should use branding such
as use of promotional strategies like advertising to promote your brand everywhere.
The role of marketing department in creating the brand equity of Optimum impression
limited
Marketing administration plays a very significant role in building brand equity by
promoting the goals and objectives of the enterprise. It is the duty of the brand manager to create
the positive picture in the minds of the consumer.
The brand manager should modify the product and should do the proper planning as per
the consumer requirements as well as the marketing department should choose different brand
strategies to satisfy the changing needs of the customers this will result to increase in company's
brand value, brand loyalty as well as brand equity(Buil,Catalán,and Martínez,2016.).

MAIN BODY
For creating successful brand strategy by applying Aaker's model of brand equity can
help Optimum impression limited in order to strengthen the brand equity, brand extension,
reinforcing as well as for revitalizing the brand. Aaker's Brand Equity Model includes five main
points that is brand loyalty, perceived quality, brand awareness, associations as well as other
proprietary assets that are explained below:-
1) Brand loyalty:- In today's market its very difficult to get consumers. In order to increase
the brand loyalty Optimum impression limited must reduce the marketing costs, by
pulling new customers, by timely resolving and responding to the threats that arise from
the competitors. This can result to increase in the brand loyalty among the customers as
well as to strengthen the brand equity.
2) Brand awareness:- In order to increase the brand awareness the Optimum impression
limited need to use effective promotional strategy like advertising to let the consumer
about the brand name, if the consumer is aware about the brand this can also help
company in extending the brand this will result to increase in brand equity, good brand
image as well as strengthen the brand.
3) Perceived quality:- In order to perceive Good quality Optimum impression limited need
to provide the differentiated product that should have unique position in the minds of the
consumers over the competitors. The channel of the product should be wide to avail the
quality product through different channels that will result to brand extension as well as to
increase the brand equity and also helps in reinforcement of the brands(Du Preez, and
Bendixen,2015. ).
4) Brand associations:- In order bring the brand in the minds of the consumer Optimum
impression limited should make use of the promotional channel such as advertising so
that the customer's can associate or differentiate the brand or product from other products
as well as it helps to create positive attitude in the minds of the customers. This will result
in revitalization of brand as well as brand extension.
5) Other proprietary assets:- This is the another very important strategy in building the
successful brand . The proprietary assets includes patent rights, trademarks and channel

relationships that will help Optimum impression limited in order to protect and safeguard
the company policies, strategies idea, name of the company(Heding,Knudtzen and
Bjerre,2015.).
CONCLUSION
From the above task it is concluded that building and managing brand plays a very significant
role in strengthening the brand equity, brand loyalty as well as extending the brand. With the
help of Aaker's brand equity model has helped the company in what way the can find the
successful strategy for reinforcing and revitalising the brand as well to increase the brand value.
Now at last study will include the significance of branding as a marketing tool:-
1. Branding helps to increases recognition of the company.
2. It helps to increase the value of the business.
3. It attracts and bring new customers in the market.
4. It helps to improve the employee satisfaction.
5. Branding creates the trust among the customers in the market as well as it increases the
brand name and value.
TASK 2
Brand Portfolio Strategies & Brand Hierarchy
BRAND PORTFOLIO STRAREGY
Brand Portfolio is considered as an umbrella which consists of all brands that is offered by an
single organization for sale to fulfil the demands of various market segments. It is simply a
collection of various brands that are under a firm's control. Small scale organizations with one
premises will may have one brand, but large scale organization with multiple businesses may
have various brands in their portfolios. An optimum brand portfolio is the one where each brand
complements other in the portfolio range. The primary concept of brand portfolio is to increase
its market share and to give enough brand choice to the target customers; so that the potential
consumers doesn't feel left out, but simultaneously reduce overlapping so that the two brands
doesn't break each other(Lee,O’Cass,and Sok, 2017).
BRAND PORTFOLIO APPROACHES
HOUSE OF BRANDS: It is also called as free-standing brands. This approach consists of
individual identities for every brand; each brand has own names, people, personalities they even

compete with one another sometimes. These are designed in such a way that they stand alone and
independent and not relying on master brand or other house brands. It is usual for the consumers
to not know the parent brand. House of brands is good for large consumer organization, but not
for each brand. Example's are- P&G is well known brand but it's sub brands are easily identified.
It includes products like Tide, Bounty, Pampers etc. Mars includes variety of brands of
chocolates. Unilever is dealing in the product that ranges from food items to hygiene products. It
includes products like Dove, Lipton, Sunsilk, Surf etc.
Benefits: This strategy offer the organization with some benefits that includes- Reach that means
defining a unique target customers and develop such products that expands the brands
demographic horizon. Safety Net that means the firm can bear risks while giving new offerings,
knowing that they possess stronger brands to rely on if necessary. Protection that means if by
chance the press in not useful, the individual brand can suffer while keeping the reputation of
the organization is safe and secure.
Drawbacks: Managing a brand is not an easy task and controlling some many brands all
together seem impossible. Some pitfalls includes Cost that is maintaining brands means creating
and carrying out multiple strategies of marketing for each product and operating every individual
line is costly. Isolation means the parent company doesn't have much power, so other individual
brands cannot reply on it to boost their reputation. There can be a confusion related to the parent
company that is the parent company represents the brand name or the other brands represent the
company name(M'zungu, Merrilees,and Miller2019.).
BRANDED HOUSE: In this strategy, the organization is the brand. The other sub brands are
not drawn away from the parent or main brand. This develops a capable brand that can be easily
recognized and memorable. The sub brands are marketed under the name of parent brand and
they operate individually and never dominate the parent brand. For example FedEx is the parent
brand which has FedEx Express, Freight, Ground as it's sub brands. Google has it's sub brands as
Google Drive, Translate and Calendar. Apple has it's various products like iPhone, iPad,
MacBook and was never known different from Apple. This strategy is the best as all the
resources are concerned to the parent brand rather than spitting in multiple brands.
Benefits: It includes Efficiency that means single marketing strategy and single brand name
covers every offerings. This strategy is easy as every offering is under same parent brand so it

avoid confusion and competition. The consumers willing accept the changes brought by the
trusted brands, so it will help grow the scope of future offerings of that brand.
Drawbacks: It includes company's reputation as the product and services are bound by public's
perception regarding the brand. It is possible that the parent brand underperforms and this effect
the other sub products(Liu,and et.al., 2018. ).
HYBRID: It is a combination of two brand strategy. In this scenario, one major brand like Coca-
Cola, where the company name matches with one product. With time, the firm increase its
portfolio to add other products. The products are concerned with the parent company, but are
individual brands. For example Coca-Cola, Pepsi-Co, Amazon. This strategy is opted when there
is an initial product of a brand, but afterwards company chooses to increase the offerings. A well
known product needs to manage the brand name, but when new product is developed it needs to
be differentiated from the first one, then it is preferable to develop other sub brands.
BRAND HIERARCHY OF NESTLE
A brand hierarchy is an outline of the branding strategy, showcasing the total number of similar
and different brand within the firm's products.

BRAND EQUITY
Keller's Brand Equity Model is also called as Customer-Based Brand Equity Model is used by
Nestle to manage its brand equity. The model is pyramid in shape and has 4 stages that are
Identity, Meaning, Responses, Relationships.
Identity: The basic thing about the brand is it's identity and weather the customer's recognize it
and are aware about the brand. Is it on the top of the mind? The first thing every business does is
make it's brand popular in the market.
Meaning: This means what the brand stands for? There are bases of this 'performance' and
'imagery'. Performance means how actually the product will fulfil customers needs. It includes
features, product reliability, service effectiveness and style and design. Imagery means how your
brand comes to customer.
Responses: Responses comes in two ways judgements and feelings. Judgements about quality,
credibility, consideration and superiority. Feelings are how customers actually feel about the
brand. This is directly related to the product, but can also consist emotional responses.
Relationships: It includes a deep bonding of customers with the brand. It is known as Brand
Resonance. It is difficult to achieve this level means consumers are loyal towards the brand, have
an attachment, and engagement with brand activities(Rosenbaum-Elliott,Percy, and
Pervan,2015.).
TASK 3
Brand Leveraging And Extension
Brand Leveraging
Brand Leveraging is the technique to use the capability of the existing brand name of the
company to support firm's entry into a new product line and by communicating information to
the customers. Brand leveraging is important as it gives customers with a feeling of familiarity.
It includes the positive characteristics of a brand into the new product. Strong leveraging attracts
the customers as the brand has a recognition. More product line means there in an increase in
size of shelf space and this will create more chances of sales. The brand leveraged product costs
less to be marketed as compared to developing new individual product. The increase in the
number of products will maximize efficiency of manufacturing facility.
Strengths of Nestle

 Nestle has strong support of suppliers of raw material, so the company can overcome any
supply chin problem.
 The company has highly skilled human resource as they provide proper training and
learning program to the employees. Nestle invest a huge amount in training and
development of their personnel that results in efficient and motivated employees.
 Nestles performance is superb as it has expertise at capturing new market and achieving
what they want. The diversification helped the company to develop new sources of
revenue generation and diversify the risk.
 The firm has a successful track record of bringing new products by new innovation as
they invest in new technologies(Steenkamp, 2017. ).
 To build a dependable supply chain and for smooth flow of operations the company is
investing in acquiring technology companies is achieving success in every field.
 Nestle is successful at Go To Market Strategies for the products.
 Nestle has strong brand portfolio has the company has invested in developing such brand
name. This will help the company if they want to bring any new product.
 Nestle has powerful cash flows that help the company in investing resources in the
company's new projects. This enables the company to invest in many new products
freely.
 Organization has a wide product range that comprise baby products, pet foods, beverages,
pharmaceuticals etc. that became the biggest strength of the company. As all the products
offered by the company is trusted and thus maximize the sales.
 The organization perform many CSR activities for rural areas, for environmental
protection, water conservation etc.
 Mergers and Acquisition have strengthens the brand name of the company help in
defeating the competitors.
 Nestle has strong marketing and promotion via TV, print media, online ads, sponsorship.
 Loyalty towards brand and brand recognition of the company(Nestle) is high.
 The designing team of Nestle has great capabilities that strengthen the company and gave
a competitive advantage.
Weaknesses of Nestle

 The company need more invest in new technologies as they are planning to expand the
company's product line and grow through different geographies. Nestle should invest
more in technology to spread the product widely.
 The company's financial planning is not up to the mark, is not proper and efficient. After
analysing the company's asset ratio and liquid asset ratios it can be said that the company
is not using the cash efficiently.
 The attrition rate is high of Nestle as compared to other firms it should invest on training
and development of employees.
 The marketing of Nestle's product is not what is expected from it. The products of the
firm are success in sales but lack positioning and unique selling and gives a scope to
competitors to attack in that area.
 Days stock is comparatively high from the competitors. This involves more money in
channel of products and thus effect the growth of Nestle.
 The present culture residing in Nestle has limited them to move or develop new product
segments and has made it face challenges.
 The company lacks in demand forecasting need and have missed the opportunities to
grow as compared to rivalry firms. And is the possible reason of having high days
inventory both in-house and in process.
 Consumers are becoming more health conscious and prefer good taste and best quality
product. Nestle has got complains regarding the poor supplies and this is damaging the
image of Nestle.
 India Government sued the company for 100 million dollar over their famous product
Maggie, that brought an negative image on the company and influenced its sales.
 Nestle is being criticized over issues like child labour which even adversely effect the
situations.
Collaborations
The company's focuses on expand its business in different lines while collaborating with other
company's. Nestle also collaborated with Samsung to research on nutrition science and digital
technologies to seek healthy living. The company wants to collaborate with Cadbury and expand
its market and enjoy a bigger share of market. As Cadbury already has a brand name and its

products are popular in the market, collaborating with Nestle benefits both the companies to
grow and develop.
Partnership
Nestle has partnership with Starbucks back in 2018 and profited both companies. The sales of
both the firms are higher.
TASK 4
Evaluation of various techniques used for measuring and managing the different aspects
1. Brand value:- Brand value is very essential part for every organisation. Brand value
refers to the value or equity regarding the product in the minds of the consumer that
makes that product different from the competitors. Loyalty towards the product by the
consumer creates the brand value as well as by providing the quality products and
making the product available according to needs and preferences that creates the brand
value . For example:- Amul is the brand that is 71 years old that has still creating and
maintaining its brand values in the market and has its different and unique brand value in
the minds of the customers. It has created the brand value till now because of its positive
side Amul has continued to keep the communication by the cartoon that is” Sarcastically
funny” and it has not been into any controversies since so many years as well as because
of its quality it has resulted in increase in the brand value.
2. Brand awareness:- Brand awareness is very important for any company at the time of
introduction of any new product at the same time for increasing the brand awareness of
the existing product in order to retain that product for the long time. Brand awareness
defines the level of knowingness about the product of the company and it can be spread
with the help of internal and external marketing efforts. For example:- Cadbury is one of
leading chocolate brands in the market that has created its brand awareness. Cadbury
has created its brand awareness with the help of advertising and by hiring the brand
ambassadors as Amitabh Bachan that has increased its brand awareness in the market as
well has increased its brand value(Veloutsou, and Guzman,2017.).
3. Market share:- Market share refers to the percentage of a firm or the total sales of the
market that is attained by the organisation with its efforts in related to its competitors
that increases the company's profitability. A company can increase its market share with
the help of advertising and by introducing new products and innovation. for example:-

Nike is the one of the leading sports company in the world it has created and build its
market share with the help of innovation as well as by providing best quality products. It
has launched new zoom series of shoes in the market named as Nike Zoom Pegasus turbo
2, Nike zoom fly 3 and many more as the most famous running shoes that has captured
the market share as well as resulted in increased sales.
4. Consumer attitude:- Consumer attitude refers to the intention, behaviour as well as
feelings towards a particular product. Understanding the attitude of the consumer can
help the business in better understanding of the customers and according to that how
company can change the customers behaviour. for example :- Nestle has created positive
attitude towards the consumers as well as consumers also have because of the quality
products it provides and it also provides the products like chocolate according to the
festive seasons. Nestle collects its feedback with the help of social media regarding the
quality of the products. Which has resulted in the positive image and attitude of the
consumers of the product and growth of the company.
5. Purchase intent:- Purchase intent refers to the intention or purpose of the consumer
towards buying a particular product again and again and it is a dependent variable that
rely on the intrinsic and extrinsic factors. Intension of purchasing a product by the
consumer occurs when the company provides the benefits according to the needs and
requirements of the customer For example:- coca cola is preferred by the consumers for
its taste, availability and price and quality that has resulted in increasing brand value
over its competitors(Urde,2016.).

CONCLUSION
Report can conclude that the brand management plays a crucial role in each and every
organisation .it support and maintain its individual identity which is easily identified by the
customers for its product as well as services. Nestle used passive model as it is called as one time
investment of cost as well as time. it can also develop the wealth option for the long duration of
time .above report focused on the various technique used to measure and management brand
values for example- attitude of the customer which showed costumer's feeling and also showed
the behaviour towards the brand Nestle. Nestle is brand hierarchy house .which each and every
individual brand are independent to each other ,in addition to this brand leveraging is important
for the smooth run of the business and also modify their products categories so that it can
increase market share which can also increase the profits of the company. Nestle used the Keller
model in managing the brand equity. Report also laid emphasised portfolio management as well
as brand hierarchy such and active portfolio strategy where they modified their strategies as per
the requirement of the market and also invest more in the products which are also in high in
demand .

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