Brand Management Report: Starbucks Portfolio and Strategy Review

This report delves into the intricacies of brand management, exploring its significance as a marketing tool and the key components of successful brand strategies. It examines how brands are managed over time using relevant models like the Customer-Based Brand Equity (CBBE) model, with a specific focus on Starbucks. The report analyzes Starbucks' brand portfolio strategy, including branded house and management hierarchy. It further investigates brand extension techniques and various methods for managing and measuring brand value, providing a comprehensive overview of branding principles and their practical application in a real-world business context. The report concludes with an evaluation of the effectiveness of these techniques in enhancing brand awareness, value, and market share.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Importance of branding as a marketing tool...............................................................................1
Key components that helps organisation to have successful brand strategy...............................2
How a brand managed successfully over time using relevant model and theories.....................3
TASK 2............................................................................................................................................4
Starbucks brand portfolio strategy..............................................................................................4
TASK 3............................................................................................................................................7
Brand extension...........................................................................................................................7
TASK 4............................................................................................................................................9
Several kind of techniques for managing and measuring brand value........................................9
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
Brand management refers to the ongoing process that mainly involves to maintaining
consistence around brand and supply several values towards firm as it is associated with positive
factor like audience and consumers (Dessart, Veloutsou and Morgan-Thomas, 2015). Along
within this, it includes, visual presentation, consumer satisfaction, competition, packaging and
many more. With the help of collaboration of these assorted factors brand management can use
different types of tools and technologies and able to manage several goods and services. Apart
from this brand management generally bring changes within the pricing strategies of goods and
formulates different types of cost strategies that build strong relationship between firms and
customers. It also help firms to develop effective brand awareness within consumer's mind. As it
involves so many marketing activities so that they can develop several kind of marketing concept
as per consumer's needs. Moreover, report is based on training manual along with corporate
brand to identify brand portfolio with huge theories and models. At last, several techniques of
brand extension and brand leverage to expansion of brand in both national and international
market and there is critical evaluation of various techniques to measure brand awareness, brand
value, market share will get covered (Chauhan and Pillai, 2013).
TASK 1
Importance of branding as a marketing tool
Branding refers to the particular practices in which firms are able to formulates a name,
symbol and design by which customers can easily identify any firm's product and services. It will
help companies to identify their goods and services from another firm at marketplace. Therefore,
branding is an important aspect in order to impress consumers and it also allows customers and
clients to know what they can expect from an organisation. Thus, it is the way to differentiate
own goods and services from another firm and identifying what company offers that make better
choice of consumers (Buil, Chernatony and Martinez, 2013). Therefore, there are lots of areas
which is used to formulate a brand that includes promotional merchandise, customer services,
advertising, logo and reputation. All these assorted elements work together in order to develop
unique attention to grab professional profile in a perfect way. Hence, brand is very important
which is known as marketing tool as well.
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Branding within an organisation plays an important role in attracting large number of
customers and increasing sales of an organisation. Branding is essential as not only is it what
creates a memorable impression on customers but it allows their customers to understand what to
expect from an organisation. There are different number of areas that are followed to develop
a brand such as advertising, promotional merchandise, customer service reputation, and logo. All
these are effective for an organisation in increasing brand awareness and increasing large base of
customers towards brand. For example: Cadbury has a multinational brand that has different
number of marketing channels and effective logo that resulted in higher customer base and
increased brand reputation.
Key components that helps organisation to have successful brand strategy.
It is essential to have strong brand strategies towards brand within an organisation in
order to achieve their targeted goals by which firm's manager is able to justify their particular
brand and satisfy people needs and wants every day. There are different types of elements, those
are going to be discussed below:
Research competition:
In present scenario there are so many brands which always develop competition for
another brand. Therefore, it is necessary for firms to adopt different types of components in order
to have successful brand strategies. For example: Costa is one of the best wholesale operation
supplying roasted coffee that specialises in Italian coffee shops. So that manager of this firm is
needed to measure overall competition at marketplace and adopt so many changes in order to
sustain for long time (Arai, Ko and Ross, 2014). Thus, with the help of this successful strategy
they can make its brand successful.
Discover target audience:
This is compulsory for each and every brand in order to attain potential consumers by
which Costa can easily target their consumer's goals and able to achieve target in a short period
of time.
Brand mission:
With he help of this component Costa is able to make its mission better along with able to
develop several kind of tools and techniques by which they can make long term goals in a perfect
way.
Ascertain brand guidelines:
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In this successful brand strategy, management team of Costa is needed to develop
effective guideline for their employees in order to communicate with people in a easiest way. So
that it is successful brand strategy that makes firm attractive (Silveira, Lages and Simões, 2013).
Create value propositions:
It is one of the better strategy with the help of this firm is able to understand external and
internal factor for formulating competitive advantages in front of other firm at marketplace. So
that it create good value of firm and encourage employees to achieve targeted goals.
How a brand managed successfully over time using relevant model and theories.
For managing over time for employees successfully it is essential for firms to bring few
modifications in order to achieve their goals in a perfect way. For this CBBE model is one of the
better aspect that help firms to gain competition at marketplace.
Customer-Based Brand Equity model (CBBE):
This model refers to the brand equity pyramid by which brands are able to understand
their all over consumer's needs and wants. It mainly gives results in a positive manner and
increase sustainability of brand in marketplace (Gundala and Khawaja, 2014). It involves so
many type of key elements in order to implements on several strategies to create attractiveness
towards brand. There are few steps of this model, mentioned below:
Step 1: Brand identify:
On the behalf of this model it is initial stage in which Costa is liable to deal with several
issues in order to its brand identity in a perfect way. As it is better coffee shops organisation and
have good brand image so that it has power to promote its foods and services in a proper way.
For betterment of promotional strategies they use several advertising channels like social media,
online websites, newspapers and so on.
Step 2: Brand meaning:
It is mainly divided into 2 parts such as performance and imaginary of brands. Those are
mentioned below in detail:
Brand imaginary: It is based on brand identity whereas, Costa is needed to represent
their overall goods and services at marketplace in a proper manner. It could be seems in the form
of advertising like Social sites and online websites.
Brand performance: It is based on performance of brand in which Costa plays
significant role towards providing high quality of coffee to the consumers in an appropriate
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manner (Dinnie, 2015). Brand performance refers to the measure of a brand's outputs against the
goals at first set. Brand performance is extremely personal as well as can vary considerably from
of an individual brand to the next. Brand performance is naturally measured by means of a
combination of the following metrics: Audience growth. Along with this, brand performance is
effective for an organisation because it will help them in retention of customers for long time.
Step 3: Brand response
In this step Costa is liable to take feedback from the consumers in order maintain its
purchasing power and give them better goods and services which is considered as a brand
response. It could be increase identity of brand and make attractive.
Step 4: Brand resonance:
It is helpful step for brand by which Costa can make its better image and able to beat
competition towards attractive large number of people effectively. Along with this, through
developing better image they are able to achieve specified goals. Therefore, it has been evaluated
that, with the help of this model respective organisation is able to manage successfully over time
in an efficacious mode.
TASK 2
Starbucks brand portfolio strategy.
Strategy of brand portfolio considered as an umbrella under which different types of
brands and brand lines from the particular function of an organisation that needs to market
segmentation in several ways (Heding, Knudtzen and Bjerre, 2015). On the other side brand
portfolio always encompasses all kind of brand which is distributed through an single
organisation. In reference with Starbucks, there are two sorts of portdolio which is followed by
this organisation, those are going to be discussed below:
Active portfolio management startegy: It is known as investment strategy that mainly
generates the effective value of portfolio. Therefore, manager and investors of Starbucks have
responsibility to make better ways to achieve targeted outcomes.
Passive portfolio management strategy: This strategy also known as on going trading of
investment technique whcih directly develop huge valuable information that generally based on
purchasing power of consumers. With the help of this strategy Starbucks is able to make unique
products to satisfy consumer's wants.
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Branded House: As selected organisation Starbucks has good and reputated imiage in
marketplace whcih is like by large number of consumer base. So that this brand needs to sell its
products as per its value to build strong relationship with other people.
For example: FedEx is one instance of branded house. FedEx Express, Ground, Freight
are all examples of sub-brands within the enterprise. Each logo extension is absolutely FedEx
first before every other sub-logo, as demonstrated by way of the emblems below. FedEx is
constantly in huge font, with the call of the sub-brand beneath in smaller text.
Another example is Google. Google has numerous sub-brands, consisting of: Google
Drive, Calendar, and Translate. This logo massive is aware of to hold its call connected to the
whole lot it does. Although logo extensions like Drive and Calendar are widely recognized on
their own, they're usually their primary logo first; Google is indexed before the call of the sub-
brand in any branding.
Management hierarchy of brands into the Starbucks portfolio
A brand hierarchy mainly identifies several kind of strategies with the help of identifying
different types of nature of every brand along with their products. In reference with, Starbucks as
they have good brand identity at marketplace so that they could have opportunities to gain high
sales and revenue towards providing branded products to consumers (Hanna and Rowley, 2013).
It depends upon basic tools and strategies that tells about branded products and their
characterstics. Therefore, these assorted brand hirarchy follows so many ways from upper to
bottom level that mainly includes modifications of brand and their product's cost. Now it can be
said that, Starbucks have huge opportunities to implements on numerous techniques via using
supporting tools at marektplace.
Starbucks has a matrix organizational shape, that's a hybrid aggregate of different
functions from the basic kinds of organizational structure. In this example, the structural design
includes intersections amongst various components of the business. Brand hierarchy is an
effective method of summarizing the logo strategy through showing the numbers and nature of
common and one of kind emblem elements across the corporations’ product revealing the
express ordering of brand elements
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(Source: Product Portfolio, 2018)
Management hierarchy of Starbucks
Umbrella brand: These sorts of brand generally used to identify several kind of goods
offered by an organisation (Hutter and et. al., 2013). Umbrella brand always makes unique
products in which Starbucks, could easily use this hierarchy to achieve customer goals.
Endorsed sub brands: It particulary identifies about appropriate brand of product. It is
best way for Starbucks to follow various sorts of marketing strategies to achieve high objectives
along with it helps them to make unique techniques to satisfy every consumer.
Endorsed manufacturers, and sub-brands – For example, Nestle KitKat, Cadbury Dairy
Milk, Sony PlayStation or Polo through Ralph Lauren. These brands encompass a discern logo –
which can be a company logo, an umbrella logo, or a circle of relatives brand – as an
endorsement to a sub-logo or an man or woman, product brand.
There are some strategies which are mainly used to manage effective relationship
between brand equity and Starbucks portfolio, those are mentioned in beneath:
In order to make each and every business attractive and effective, it is an essential aspect
for firm to use few model and theories in order to focus on appropriate portfolio of an
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Illustration 1: Product Portfolio

organisation and manage balance with brand equity. In context with Starbucks they use Aaker
brand model to control or manage overall activities of business. This model consist few factors
that are:
Brand awareness: To maximisation of brand equity and awareness it is essential for
Starbucks to gain high competitive advantages. Whereas, brand awareness is very helpful to
create better image into the consumer's mind (Lundqvis and et. al., 2013). With the help of this
firm could satisfy its consumers easily.
Brand loyalty: It is based on brand currency which is helpful for respective firm to attain
high attention of consumers towards every product with affordable pricing scheme. Therefore,
brand loyalty attract consumers in a easiest way.
Perceived quality: It refers to the consumer's choice and their views towards particular
products within a particular brand. For this, Starbucks usually take feedbacks from their
customers and measure budget effectively. Starbucks has been a brand and business that, for
years, has built its reputation as no longer simplest being the 0.33 safe haven in our brand world,
however as an inclusive, innovative, forward-wondering beacon of a logo
Brand associations: It depends upon pictures and symbols that all are associsted with
several kind of benefits among the brand. In short, this can be said that every brand at
marketplace should always assciated with attracting image so that they can beat competition
easily. Herein, Starbucks needed to have more effective promoting and sales channels along with
grest strategies of price and so on for satisfying consumers.
According to this model, Starbucks could get help to understand several kinds of new
marketing strategies in order to produce innovative flavoured coffee products at every store. It
will directly influence poelpe into the market and it will enhance effective value of firms with
good identity in front of their comeptiiors (Kapferer, 2012). Thus, it is required for firms to
follow few great theories and strategies for further improvement in business.
TASK 3
Brand extension
It refers to the specific market strategy in which an organisation usually marketing its
product with effective and formulated image along with uses same brand name with various
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types of goods category. So that it is used by firm in order to increase their high sales and
revenue at market.
Line extension: This is also used by firms in order to give brand name to new product as
same category. It generally comes while most of the firm wants to form their new products from
same brand like several kind of packaging, flavours, colours and so on (Jugenheimer, Sheehan
and Kelley, 2015).
Comparison between Brand Extension and Line extension
Brand Extension Line extension
It is considered as an essential aspect for so
many organisations as it is helpful to fulfil
several kind of demand towards people. Along
with, Starbucks required to take few risk factor
while making effective strategies. For
example: Apple establish their products with
same name I Phone but at the same time they
are selling with its items named as I phone 6,
7, 8 and so on.
It is helpful for firm to increase sales of
particular brand with unique identity. For
example: When Starbucks formed its new
product like cup cake and they start selling
from coffee.
Different techniques of brand extension
There are two types of techniques which is used for effective extension of brand,
discussed below:
Horizontal brand extension: It mainly identifies those factors where a particular brand
has diversifications behind its existing goods as well as market. For example: FHM magazine
forming a credit card facility to its consumers (Hwang and Kandampully, 2012).
Vertical brand extension: It mainly involves introduction of goods and services within
the same product type which is considered as a core brand, but it is based on several quality and
pricing level. For example: Starbucks already sells different flavoured types of coffee but at the
same time they change category of its product with different types of quality and price strategies.
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Brand strength that can become leverage
Brand leveraging refers to the effective strategy to follow the strength of an present logo
call to support an organisation's access into a brand new however related product category by
way of communicating valuable product facts to the patron. Starbucks always considered as an
famous and attractive coffee shop at marketplace which always try to fulfil consumer's needs and
wants by following unique concept to make make coffee in a different ways (Aaker Brand Equity
Model, 2019). Herein, leverage is known as the unique strategy which directly impact on existing
goods and services within the market. For example, this can be said that Manufacturing of coffee
business usually use its brand name along with use of vending machines. In addition to this,
vending machines and coffee both are belongs to several category, but on the other side they
have good relationship between both that directly increase overall efficiency of firm and attract
large number of consumers. Therefore, Starbucks mainly known as the famous coffee brand
across the globe which is always available to adopt unique tools and strategies and bring unique
flavour of nuts and toffee. Some of the strengths towards brand leverage are mentioned below:
 The strength of this brand leverage is that towards firms they could have great image in
front of their consumers.
 It involves several kinds of factors in relation with goods of an organisation for satisfying
consumers.
 With the help of this, firms are able to develop various types of tools and technique in a
broad way in order to make effective reputation at marketplace.
 As it is helpful system so that it improve overall knowledge of firms so that they can
influence people in a perfect mode (Song, Hur and Kim, 2012).
From the above explanation of brand leverage and brand extension this can be said that,
Starbucks is one of the best organisation who always develop unique tools and techniques in
order to supply and offer great variety of goods and services to their consumers at high level
within the national and international market. If talk about present time period there are so many
firms who dealing with same product as respective organisation, so that these sorts of companies
can easily down market price of Starbucks. But on the another hand, as respective organisation
follows nuts and toffee flavours in its goods than they can easily target health conscious people
who are able to like this type of coffee taste. Basically it impact on firm's sales as well as
productivity in a positive way. By increasing brand value and revenue they can achieve what
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they want through taking feedbacks from each customers. But sometimes selected industry can
face few issues in market like in regards with goods and services and so on. For this they are
needed to have several kind of strategical tools to meet future goals and objectives and it also
enhance firm's demand or value into the business work (Rosenbaum-Elliott, Percy and Pervan,
2015).
Collaborative and Partnership agreements
Partnership and Collaboration agreements are considered as action which has been
formulated and developed through an organization in order to fulfil mutual goals in an
appropriate manner. On the other side, collaborative partnership mainly rely on participating
activities in which two parties should be agree to share several resources like people, knowledge
and financial schemes. Therefore, the collaborative partnership have great aim to achieve future
goals in a perfect way. In context with, Starbucks they were launched its first store in 1971. After
running this store successfully respective firm has been decided that should enter such kind of
market by which they can achieve its targeted goals through applying numerous tools and
techniques. For agree on collaboration and partnership agreements they have been used so many
types of documents and methods in order to launch its business in another place. With the help of
this they are able to cope up with market environment and satisfying consumers. As this brand
has good image so that they have advantage and opportunities to extend its business more
through applying large number of tools and techniques (Solomon and et. al., 2014). So in the
case of Starbucks there has been 2 brothers who have launched this organisation behind the
purpose of gaining huge profits. Therefore, they have been signed an agreement in which it has
written that they will invest 50-50% share to run business globally. Thus, partnership and
collaboration is necessary for firm to achieve same goals at same time.
TASK 4
Several kind of techniques for managing and measuring brand value.
In order to achieve great results in the future organisations always adopt various sorts of
tools and techniques in a proper manner. With the help of this, they can achieve desired goals
and able to achieve target market without any issues internationally. There some types of
activities in reference with Starbucks, those are as follows:
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Brand Value: It is related with financial strategies or term which is used to bring better
and valuable output towards firm. It helps businesses to run each and every operation in a perfect
way by which they can improve their sales and objectives as well. In reference with Starbucks
they generally have attractive strategies in order to increase their profits with high ratio. Some of
the concepts are given below:
Day to day Innovation Succeed social media
As per the current situation, brand value
always increase innovative aspects day to
day through applying unique strategies and
concepts with the help of marketing
research. In context of Starbucks, they are
able to bring several kind of brand strategies
in order to gain high sales and revenue.
Within this method, brand value is
considered by firms in order to promote them
towards so many new variants and aspects so
that firms can work accordingly. Thus,
Starbucks always make use of different types
of advertisement channels like social media,
online websites and many more. With the
help of this they can achieve better results in
a proper manner.
Brand Awareness: In reference with Starbucks, this is one of the best running
organisation worldwide. Thus, in order to create brand awareness within consumer's mind they
are following different types of strategies by which they can grab large number of people
attention towards their products and successfully achieve its desired goals and objectives.
Market Share: It mainly shows the percentage of an organisation and total revenue and
sales of company within particular period of time. On the other side, Starbucks mainly maximise
its market share with the help of making innovative products to impress their customers in a
perfect way (Rageh Ismail and Spinelli, 2012). It would be helpful for firm to develop effective
relationship with people at marketplace so that they can easily beat competition and able to
remove barriers from the firm. In current market scenario there are so many competitors of this
firm like Costa, CCD and many others. For overcome competition they need to increase more
marketing share so that they can attain future goals.
Consumer Attitude: Customers always considered as a primary sources of an
organisation who always able to maximise entire profit of firms by using their goods and
11

services. According to Starbucks, attitude of consumers include norms, values, beliefs and
behavioural intention towards products and businesses as well. Therefore, it could be both
negative and positive so that here, company is needed to understand their behaviour through
conducting research and surveys.
Brand Equity: It refers to the premium value which is mostly created by firms towards
appropriate goods and services. Within the Starbucks, this organisation deals with several kind of
coffee with unique flavours in order to attract large number of people in a huge manner. Thus, it
develop brand awareness and their identity in front of consumers. With the help of different
types of unique flavour they can reduce errors from an organisation and able to grab huge
attention of people in a perfect way. Along with this, brand equity able to increase good
knowledge of consumers towards products so that they are able to achieve its target market.
Audit and Brand techniques for a particular organisation:
An audit refers to the independent and systematic examination of different sorts of
accounts, books, documents, statutory records and vouchers of the company. As per the
Starbucks, it is necessary for them to conduct audit programmes by which they can make better
financial statement and able to maintain their work by following so many laws (Rauschnabel and
et. al., 2016). Apart from this, there are few techniques of brand in context of Starbucks, those
are mentioned in beneath:
Brand tracking refers to the particular way of regularly evaluating and measuring the
entire health and behaviour of brand and consumers as well. Starbucks has a descriptively easy
announcement to encourage and nurture the human spirit-“one character, one cup, and one
neighbourhood at a time”. Starbucks positioning method became consumer base in order that it
may provide the fine provider greater than what the clients expect. In reference with Starbucks
they are liable to track their own value at marketplace through using so many techniques that are:
Consumer research survey: With the help of this technique, Starbucks is able to conduct
appropriate research survey which is done by employees of this organisation in order to its target
market. Further it would assist them to improve and bring few specifications by which they can
make their brand more attractive to beat competition at high level. Therefore, it analyse overall
price of coffee to consumers which is offered by this respective organisation.
Brand impact survey: It is one of the main method of tracking several behaviour of
specific organisation. Herein, it is used by manager of Starbucks in order to know at that point
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they should advertise its goods and services to fulfil consumer's needs and wants at short period
of time. Therefore, conducting this type of survey always have good impact on respected firm
and discover all over things which makes them firm attractive.
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CONCLUSION
From the above report it has been concluded that, brand management refers to the values,
norms, beliefs and culture of people within the market area. It is very important to understand
individual culture, behaviour and so many things by which brand can make goods accordingly.
Hence, it is most necessary thing for an organisation to develop different sorts of strategical ideas
and aspect for increasing entire brand portfolio. In this project, there have been used Aakers's
equity model in order to understand brand behaviour with consumers into market. Thus, for
extension of brand into the another place or country together innovative goods and services
directly have positive impact on goods and encourage firms to achieve there targeted goals.
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Online
Aaker Brand Equity Model. 2019. [Online]. Available
through.<https://www.marketing91.com/aaker-brand-equity-model/>.