Brand Management Report: Brand Equity for Optimum Impression and M&S

This report provides a comprehensive analysis of brand management strategies, focusing on two companies: Optimum Impression Ltd and Marks and Spencer (M&S). The report begins with an introduction to brand management, emphasizing its importance in the marketplace and its key components, including brand equity and customer relationships. Task 1 delves into the strategies employed by Optimum Impression Ltd, including building a successful brand using the CBBE model, and the role of the marketing department in creating brand equity through awareness, differentiation, value, and accessibility. The report then explores strategies for strengthening brand equity, such as quality products, competitive analysis, and brand extension. Task 2 examines M&S, discussing portfolio management strategies, brand hierarchy, and brand equity management, including active and passive portfolio management. The report covers the different types of techniques for measuring and managing brand value, providing a thorough understanding of brand management practices. The report concludes with suggestions for extending and reinforcing the brands discussed.

BRAND
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Introduction............................................................................................................................1
Main Body..............................................................................................................................2
Conclusion..............................................................................................................................4
TASK 2............................................................................................................................................4
P3 Different strategies of portfolio management, brand hierarchy and brand equity
management............................................................................................................................4
TASK3 ............................................................................................................................................6
P4 Brands are managed collaboratively and in partnership for domestic and global level....6
TASK 4............................................................................................................................................9
P5 Different types of techniques for measuring and managing brand value..........................9
CONCLUSION..............................................................................................................................12
REFERENCES ............................................................................................................................13

INTRODUCTION
Brand management refers to analysis as well as planning to perceive the brand at market
place. Brand Management requires various aspects like cost, in store presentation, customer
satisfaction and competition. It is planning and analysis about how brand perceived in market. It
is important to create relationship with target customer and elements of brand includes price,
look and packaging (Abrahams, 2016). The given assignment is based on two companies such as
Optimum Impression Ltd and Marks and Spencer (M&S). As per scenario given in project task
first is based on Optimum Impression Ltd and remaining task on M&S. It is retailer multinational
company situated at Westminster, London incorporated in 1884. It deals in clothing, food
products, home appliances. Under this, discussing about importance of branding as marketing
tool and key component for successful brand strategy for building and managing brand equity.
Also, different strategies for portfolio management, brand hierarchy and equity management.
Brand is managed collaboratively and in partnership both at domestic and global level.
Assignment has covered types of techniques for measuring and managing brand values.
TASK 1
Introduction
Brand is any name, design, term and other feature which distinguish organisation and its
products from others. It is used in marketing, business and advertising. It helps consumers in
crowd and marketplace by standing with benefits and value of products. Legal name of brand is
trademark which represent or identifies firm is called brand name (Annie Jin, 2012).
Brand equity refers to value premium which company generate through product with
recognizable name when it is compared to generic equivalent. Company create brand equity of
products by making memorable, superior quality, easily recognizable and reliability. There are
some stages of Building successful brand used by Optimum Impression Ltd which is described.
First stage is Define how you want to be perceived, in this is stage, company build successful
brand in minds of customer. It includes taste, experience, preferences of consumers related with
product. Through help of this step, organisation can know about product liked by its user. In
context of Optimum Impression Ltd, it manufactures goods as per need and demand of their
customers (Asmussen and et. al., 2013). Second stage is Organise business based on promise, it
is related to building brand based on promise made by organisation. As per this step, company
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set business in order to fulfils their promise for customers. Optimum Impression Ltd manage
business in order to satisfy their consumer need and want and satisfy them. Third stage is
Communicate promise, according to this stage, company make strategies as per promise they
had made with their customers. Design, text, colour is given to products as per communication
made with users. Optimum Impression Ltd also focus on promise and accordingly manufacture
products for building brand successful in mind of customers. Fourth stage is Be consistent, it is
last stage of building successful brand. In this stage, business remains consistent and produce as
per demand and want. They do not violate their promises which they have made with their
customers. In context of Optimum Impression Ltd, it also remains consistent to their promises
which helps in building brand and developing relationship with user.
Marketing department plays an important role in creating brand equity in mind of
customers. Here, Optimum Impression Ltd has following role for brand equity which is
described. Awareness, in this Marketing department of Optimum Impression Ltd uses various
channel for creating awareness of products. It helps in promoting product and build awareness
among consumers (Balmer, 2012). Differentiation, Brand should be unique and differentiate
from other competitors. Marketing department need to focus on promoting differentiate products.
Value, Marketing department plays an effective role in determining for products. Customer are
ready to pay any price for quality and high value products, so they should be provided
accordingly. Accessibility, Products should be available to each customer which create brand
image in mind of customer. Awareness is done by marketing department, so it is responsibility to
access products for customers (Braun, Kavaratzis and Zenker, 2013).
Main Body
Optimum Impression Ltd uses various strategy for brand equity, extension, reinforcing,
revitalising and using Keller Customer Based Brand Equity (CBBE) model which is described
below:
Optimum Impression Ltd uses Strategy for strengthen brand equity such as Quality
products and services is first strategy and in this, Customer should be provided with quality
goods and services by company for creating brand equity in their minds. It also assists in creating
brand value and image of products. Thus, Optimum Impression Ltd try best to deliver new and
innovative things to people. Competitive Analysis is second strategy Strong and goodwill brand
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can easily adopt dynamic environment. For this, Optimum Impression Ltd. need to target market
and understand customer need and accordingly produce.
Keller Customer Based Brand Equity (CBBE) model is pyramid in shape which has
four important points. Optimum Impression Ltd has used CBBE model for brand equity. The
first step is Brand Identity and it is related to identification of brand and it should be different
and with unique features as comparison to competitors. Brand Meaning is second step, it
includes performance and imagery of brand in minds of customer at market place. Brand
Response is third step, it includes judgement and feeling which is done by customer for brand to
increase its value. Company took frequent response in order to improve experience of
consumers. Brand Relationship is third step, It means creating relationship between customer
and company for better outcome (Christiaans, 2012).
Optimum Impression Ltd can use Strategy for strengthen brand extension to do brand
extension in different ways. Measure Brand Equity is first stage for measuring brand equity in
order to track possible future impacts. As many brands dilute when implementing brand
extension. Measure Potential Risk makes identify positive and negative effects on equity and
business. Optimum Impression Ltd implement brand extension whose failure does not exceed
marketing efficiencies (Dessart, Veloutsou and Morgan-Thomas, 2015). Leverage from business
core competency, in order to gain competitive advantage for new product, all skill and marketing
operation should be known by Optimum Impression Ltd. It helps in creating market
differentiation and efficiencies.
Brand Reinforcement focuses on maintaining brand equity by keeping brand alive for
both existing as well as new customers. It can be done by introducing products, differentiate,
unique and satisfying needs of customers. Optimum Impression Ltd uses Brand Awareness and
Brand Image as Brand Reinforcement strategy. Brand Awareness uses by Optimum Impression
Ltd. in which certain products are manufactured by brand, benefits and satisfying demand of
customer. Brand Image means image of brand in market which includes differentiation from
competitors & other brands and create strong, favourable and unique association in mind of
customers. Optimum Impression Ltd produces unique brand for customer in order to create
image.
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Brand revitalization is marketing strategy adopted by company when product reach
maturity stage of life cycle and profits have fallen. It is way of bringing product back in market
with new feature. Optimum Impression Ltd uses following strategy for revitalization. First
strategy is Rename brand and it has powerful effect for changing name of brand. If any brand
value has decrease, then rename should be done so that it can survive in market. In Reaching
Out to Community, Brand should be community-oriented brand which help to revitalise image
and revive lagging sales (DiMartino and Jessen, 2016). Optimum Impression Ltd use such
strategy so that customer can get product easily in community.
In order to Overcoming Brand Crisis, Optimum Impression Ltd can use following steps
to deal with brand crises such as planning, acknowledging, getting outside help, inform and
monitoring respond. By following stages in sequence crisis can be solved easily (Dinnie, 2015).
The suggestions for extending and reinforcing this brand are as follows:
Optimum Impression Ltd can extend and reinforce brand by following way:
 It can extend and reinforce by doing proper market research and understanding need and
demand of customer and according doing modification or introducing new products.
 It need to focus on high quality products for their customers for better outcome.
Conclusion
The importance of branding as a marketing tool for Optimum Impression Ltd are as
follows:
 It helps in increasing market shares and revenue of firm.
 If brand is well known in market, then its productivity increases in terms of
company as well as employees.
Organisation can increase profitability by commanding high price for products as customer are
ready to pay for premium brand.
TASK 2
P3 Different strategies of portfolio management, brand hierarchy and brand equity management
Organisation's brand portfolio strategy
A brand portfolio strategy refers to umbrella in which all brand line or brands related to
specific company serve requirements of various market segments. It should deliver leverage,
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relevance, energy, synergy, clarity and differentiation. In order to achieve this goal, effort should
be ongoing for review and refine is required. It outlines using of different brands and elements of
branding for driving profitable growth. This strategy helps M&S to determine about developing
optimal brand structure, using elements such as endorser brands, sub brands and branded
ingredients or services. It encompasses all brands offered by single firm for sale in order to cater
needs of different groups of people.
Hierarchy management of brands
It is also called as brand architecture which is the structure of brands within organisation.
It defines way brand is related within company or is differentiated with each other. It is also said
as integrated process for brand building by help of relationship among branding options. Models
of brand portfolio of Marks and Spencer are as follows:
Branded House- Here, brand manager uses only single brand for all products and
categories. This helps in focusing on full brands and maximizes scale (Elliott and et. al., 2015).
House of Brands- This means brands are disconnected and independent and do not relate
with one another. It is regarded as powerful model for brand portfolio. Here, company have
different brands in same category which is described below:
Basis Umbrella Brand Products
Marks and Spencer Marks and Spencer are a brand
name and it has different
category of products.
Through help of product,
customers are satisfied. It deals
in home products, clothing and
food items.
Tesco Tesco is brand which deals in
super market and provide
goods and services.
It deals in various products
such as books, home products,
toys.
Portfolio Strategies used for managing equity of brands
The portfolio strategies used by Marks and Spencer for managing equity of brands are:
Active Portfolio Management Strategy- These strategies is used by manager and
companies who have potential to take risk in market. By help of this strategy they can achieve
appropriate and better outcome. It is used by only renowned and good brand who have market
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share and strength. This required market research more for improving and impressive returns.
Marks and Spencer use this strategy to beat competition, grow market share and sustainability.
Passive Portfolio Management Strategy- Passive portfolio management strategy is used
by companies which are not willing to take risk in market but want to grow and develop. It is
important for business to use those factors which provide them suitable returns. This strategy is
not used by M&S as it does not provide much benefit. As M&S is large brand which must take
risk in order to survive (Hanna and Rowley, 2013).
Marks and Spencer can use active strategies for managing equity. M&S is renowned
brand in market in order to maintain its brand value and goodwill, it need to do market research
and take various risk. This strategy helps in achieving maximum profit with high risk involved.
Thus, it is necessary to use such managing equity strategy to beat competitors existing in market
and grow market share and sustainability.
TASK3
P4 Brands are managed collaboratively and in partnership for domestic and global level
A brand is an identification symbol, mark, logo, name or a sentence that companies use top
distinguish their product from others. Combination of more of these elements use in utilization of
creating a brand identity. Brand expansion help an organisation to gain more loyal and trust in
their new product. It helps a organisation to attain brand effectiveness and acknowledge about
their product to its customer.
Difference between brand extension and line extension:
Brand Extension: Brand extension is also known as brand starching is basically a
marketing strategy. It leverages reputation and popularity of well-known brand to increase
demand of new product and services. A firm uses a well-established brand name for new product
or new product category.
Line Extension: Line extension occur when a company introduce additional items in
same product line under same brand name. This incorporates a slight twist on establishment of
brand as it utilizes older brand name and imagery in same product category (Heding, Knudtzen
and Bjerre, 2015).
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The difference between line extension and product extension is that line extension help in
increasing number of products in a known product category. Whereas brand extension is using
an existing brand name to introduce their new product in marketplace.
Strength of Mark& Spencer
Mark & Spencer has a strong market position in clothing segment. It is leading market in
women's wear and men's wear and have expanded their business in child ware. Moreover, Mark
& Spencer has been very successful in capturing its customer segment through different product
line offer in store services and garment quality. Some of the advantages of Mark & Spencer are
as follows:
Reputation/ Brand: Mark & Spencer have a favourable reputation in marketplace. They
are owning customer trust and loyalty from their offerings. Moreover, it is one of the leading
brands in clothing segmentation. Customer are perceived with their product quality and attractive
design. Thus, it helps Mark & Spencer to attain reputation of their market in competitive edge.
Market position: Mark & Spencer can create a good customer perception for their brand.
They are successful in establishing a different image or identity of their brand and consumer
perceive it different ways. From great customer loyalty they can gain market position in
marketplace.
Quality products: Mark & Spencer are offering premium quality of products and
services to their valuable customer. They are offering high quality of clothes according to taste
and preferences of customer. They are one of leading clothing segment with premium quality of
product and services (Johansson and Carlson, 2014).
Online shopping: Now a day’s people are more convenient towards online purchasing.
Mark & Spence are offering their products both on showroom as well online. They have their
own app where people can easily access to its. This help to attain great customer retention from
their offerings of premium quality of product and services.
From the above discussion it has been concluded that Mark & Spencer have huge
strengths in their product and services which help them to attain market position. Moreover,
customer trust and loyalty help them to attain sustainability in their market share.
Weakness of Marks and Spencer
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 Unable to penetrate in foreign markets- Marks and Spencer have become
unsuccessful in winning customer cooperation in Asia and middle east because of the
designs created in their clothes are western and are not traditional.
 Customer satisfaction- Customers of M&S has low satisfaction with respect to return
policy as well as in store experience. It resulted in brand switching from customers.
 Low scalability of supply chain- Marks and Spencer has poor scalability of supply
chain. Though company is trying to reach globally but unable to deliver its products
globally and this leads to the remain of unsold stocks which remain loss for the company
(Kapferer, 2012).
Suggestions to overcome the weaknesses
 New segments- Marks and Spencer is facing the problem of low sales because of the
western culture adopted by them effects in various countries. As in Asia there is huge
demand for ethnic and traditional which can allow Marks and Spencer to capture the
market by fulfilling demands.
 Market segmentation- It is defined as the process of splitting customers in a market into
different groups within which the customer shares similar level of interest and needs are
satisfied by different market proposition. Marks and Spencer have the opportunity by
dividing customers by establishing small shops which will also reduce maintenance cost
and increase profit for the respective company when compared to mega stores. This helps
Marks and Spencer to increase level of profit.
Collaborative and partnership agreements
An agreement entered between two or more brands in a research project about the nature
of working relationship (Mosley, 2014). It specifies the parties to share data, research materials
to improve the target proficiency of the respective company.
 Microsoft and MARKS and Spencer have launched strategic partnership to transform the
retail experience using the power of artificial intelligence. These partnerships will help
organisations to work together and access the benefits of AI in retail sector to improve
customer experiences and increase efficiency of wider operations.
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 Marks and Spencer extend its partnership with capita by a further five years. Capita will
continue to provide quality customer service support for marks and Spencer across voice,
online and web chat channels. It will also extend its customer support services to
international online business in markets like US, Australia and France. This helps M&S
to maintain long standing relationship with customers and consistent delivery of high-
quality services which enhances brand value of the respective organisation.
 Marks and Spencer have tied up with nestle for food packaging summit which will ensure
food packaging safety and minimise the risk to customer from substance migration. It
also looked for the sustainability of food packaging which plays a crucial role to protect
food and help make it last longer and to reduce food waste This would help customers
and respective organisation to increase sales and become environment friendly.
This collaboration definitely helps marks and Spencer to increase their share in market
and being able to increase profits by the help of other organisations (Abrahams, 2016).
TASK 4
P5 Different types of techniques for measuring and managing brand value
Competitive is increasing day by day which has great impact on companies. This can lead
increase or decrease brand value of goods and service. In order to survive in such era, Marks and
Spencer have to use various technique for measuring and managing brand value, brand
awareness, market share, consumer attitudes and purchasing intent.
Brand Value
It is used in marketing industry which describes value of well-known brand in market. It
is also called brand equity and depends on inherent characteristics of product. It can be defined
as process used for calculating value of brand or amount of money party is willing to pay or
financial value. Before doing brand evaluation some questions need to be answered by company
such as what is being valued and purpose for such evaluation. It is important not only for brand
but also for company to improve performance in order to increase market share and goodwill.
Brand management and financial transactions are application of brand evaluation. Thus, in this
way M&S used techniques for measuring and managing brand value in mind of customer and at
marketplace (Annie Jin, 2012).
Brand Awareness
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