Brand Management Report: BMW and Mercedes - Marketing Strategies

This report provides an in-depth analysis of brand management strategies employed by BMW and Mercedes, two leading companies in the automotive industry. It begins by defining the concept of a brand and emphasizing its significance as a marketing tool, exploring components like brand icons, colors, and messaging. The report then delves into brand equity, highlighting its importance in measuring brand value and its impact on customer perception and loyalty. Key components of a successful brand strategy, such as public relations and target audience identification, are examined, along with how brands develop and are managed over time, including strategies for reinforcement and revitalization. Challenges in brand development, specifically for BMW and Mercedes, are also discussed. Furthermore, the report covers portfolio management, brand hierarchy, and strategies for measuring and managing brand value, providing a comprehensive overview of brand management practices within the context of the automotive industry. The report uses the CBBE model to analyze the development of brand equity.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 : Importance of branding...................................................................................................1
P.1 Definition of Brand...............................................................................................................1
Branding as an important marketing tool ...................................................................................3
Meaning of Brand equity............................................................................................................4
P.2 Key component of a successful brand strategy ....................................................................4
How Brands developed and manage over time...........................................................................5
Challenges in Developing a Brand .............................................................................................6
Development of Brand equity – CBBE Model ..........................................................................6
TASK 2 : Portfolio and Brand Hierarchies .....................................................................................7
P3 Portfolio management, brand hierarchy and equity management.........................................7
P4 Brand managed collaboration..............................................................................................10
P5 Various kinds of techniques is help to measure and manage the brand value.....................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Brand management is an important technique which refers to planning and analysing
brand perception in the market. Brand management focus on creating a good relation within
targeted market as well as with customers. Present report is in context to BMW and Mercedes
which are leading companies in auto-mobile industry. The study will analyse how BMW
collaborated with Mercedes to increase its brand equity in the market. The report will identify
various significance of branding as a marketing tool; it will also determine major components of
brand strategies utilised or developing and maintaining brand value or image. The assignment
will also analyse various strategies related to portfolio management, brand hierarchy and brand
equity. Furthermore, different methods for monitoring brand value will also be included in this
report. The various factors that helps a brand to manage partnership at global and domestic level.
TASK 1: Importance of branding
P.1 Definition of Brand
A brand is a unique mark, logo, symbol sentence, word or name that an organisation uses
in order to differentiate their products or services from other companies or rivals in the market.
The combination of a single or more of these unique elements can be used for creating a brand
identity. The brand name is a private asset and is protected with a trademark or copyright in
order to avoid duplication. A brand is a very important and valuable element for each and every
company; it is developed as a public image and products of the company are recognized and
known by the brand name within the market.
Role of Marketing in building Brand Equity
 Brand Evaluation – Branding helps to identify a target market or regions, research and
studies are additional steps used for understanding culture, beliefs etc related to the
targeted customers. It also assists in understanding the needs and demands of customers
within the market. Every organization or company focus on developing products that
could meet the needs of their customers. For example – BMW and Mercedes bring
innovative cars with the latest designs to attract customers who are interested in new and
impressive cars. There is a belief that advertising and branding are similar functions
which is not true. However, both the concepts are highly interdependent; advertising
refers to developing demands of a product in the market whereas branding refers to
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establishing a product as a first a name that comes in the mind of customers while making
a thought of buying a product (Urde, 2016).
 Brand Objective – Almost each and every organization understands the importance of
branding as a marketing tool and different specialists and professionals, who are experts
in brand management and development focuses on performing various activities as
mentioned below -
1. Linking customers emotionally by understanding their psychological needs and wants
2. Creating an impressive customer base
3. Building credibility for a product or service
Branding is a beneficial technique used by a company such as BMW or Mercedes in significant
functions of businesses such as Marketing of products and services. There are various
components of branding such as -
1. Brand Icon
2. Brand Colour
3. Brand Sound
4. Packaging of the Brand
5. Slogan and Brand Message
6. Name of the Brand
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I
llustration 1: BMW Branding
(Source: BMW Design, 2016)

Branding as an important marketing tool
Branding in a critical element of the marketing function of any service or product. There
are various competitors or rivals of a particular product within a marketplace as per today's
scenario. In order to differentiate a product or service, the companies need to develop effective
marketing strategies with involving branding. The organisation in the marketplace identifies that
branding is very significant as a marketing tool and can be used in promotion of the products or
services. As branding helps to create and develop an image of the products in the minds of
people while they think of purchasing a product (Fernández and et.al, 2017).
Purpose or role of branding as a marketing tool
Each association or business needs to build up a constructive picture inside the market or
on individuals, marketing is an essential capacity performed for accomplishing this goal.
However, showcasing just spotlight on separating an item from the adversaries yet the
association needs something more to build up a picture of an item or the business. This is a
reason Branding advanced as a showcasing instrument for different associations.
The different advantages of marking inside the promoting capacity are as depicted beneath -
 Assist to be remembered– The clients cannot recall or review about what an
organization managed with no one of a kind component or component. The associations
need to ensure that the clients will know and remember them by utilizing their item or
administrations even once.
 Expanding popularity – Every business or organization needs that the general
population who have not utilized the administrations or items likewise think about them.
At the point when the general population see their promotions on hoardings, hear on
radio or watch their advertisements on TV or other media, they begin perceiving their
image characters and when individuals requires or needs the administrations or items they
will be pulled in to the association (Ertimur and Coskuner-Balli, 2015).
 Support in achieving customer loyalty – In it is demonstrated truth that individuals builds
up a solid or profitable associations with mark personalities. Each client needs a quality
product or management which can be trusted. The general population will recall an
organization or association in the event that it offers quality administrations and items
and also has an awesome brand personality. Notwithstanding this the clients will likewise
them to their family and companions.
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A considerable lot of the individual accept that marking is much the same as situating
however this presumption isn't right, The fundamental variety among them is situating is a liquid
idea. In straightforward words an association or product can position themselves at various
circumstances in different commercial centers as various things. Marking is an in-your-face
acknowledgement factor and isn't adaptable yet have an extraordinary significance in making a
constructive picture in the market or psyches of individuals (Du Pree and Bendixen, 2015)
Meaning of Brand equity
Brand Equity and brand value are the two term which help to measure the brand worth in
the market. Brand value refer to the financial position and assets which company records in its
balance sheet. Besides brand equity refers to the company image in front of their customers in
the market. This brand value is determined by customer experiences, feedbacks or perception
with the brand. It simply means if the people has a good perception or experience with a brand,
the brand's value is high and when the customers are dissatisfied or had a bad experience with
the products or services of provided by the brand, the brands value is low. Good or positive
brand equity has various values which are very beneficial for a company. For example – BMW is
a popular and leading auto-mobile company and the brand has achieved fame all over the world
in its mechanical engineering. The company effectively focus on its brand equity, it attracts and
satisfy its customers by providing high quality products. The BMW cars are impressive in
design, performance and innovation. The company introduces new models continuously in the
market.
Brand equity is marketing means brand value in market and help to increase the number
in market. It is value of brand is focus on hold and proceed by the brand and valuation of brand
in market of BMW. In this context brand equity is provided benefit to the company and help to
effective form the customer in market. In brand equity is focus on Consumer representation,
positive or supportive effect of the marque equity and the subtenant value. The user perception is
enormously based on the knowledge and content of the company as well as the client about the
commodity or services in market (Dinnie, 2015).
P.2 Key component of a successful brand strategy
In work place organisation is to be focus on the important factor to alteration the level of
execution in marketplace. Both organisation is work is more effective manner and increase the
growth rate in market. In this way organizations is focus on successful brand strategies for future
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growth and managing internal and external analyze of working condition. In this context some
key components in successful brand strategy are as follows :-
7. Public relation :- A strong public relation program is help to increase the public relation
and reputation in market. It this context leadership promotion, corporate news and varsity
of types of contents. It is help to boost economic environment and generate a new sale in
marketing. Public relation is the best strategy for future development in BMW and
MERCEDES organisation. Establishing concern content, key execution metrics and
intelligibly characterized target gathering is the first step in structure your in the public
eye social relation plan of action (Dessart and et.al 2015).
8. Target audience :- It is one of the most important part in organisation to help in target
audience in market place. In this context target audience means organisation is focus on
particular audience or particular age group person in market. BMW and MERCEDES
organisation is to be focus on particular audience and particular age group person.
9. Brand promise :- In brand promise is spoken to target audience and tell about what they
expatiating form products in market. In brand promise message is help to promote new
activity and increase the number of customer in market.
10. Brand perception :- In this context organisation is focus on perception of brand what is
past and what it is now and what will you be in future market ?. All such kind of question
is to be inculcated in brand perception. One way to do this is to study your actual custom-
made to find out what they advisement of your brand name. Do your reference point
custom-made know your brand name? What do they think of you? Etc. it is help to
increase the number of customer and make new changes in market.
How Brands developed and manage over time
Brand reinforcement
Brand reinforcement refers to a human action associated with getting those devour who
have tried a peculiar brand to change state repeat influence along with pulling in new users. It is
a key objective of the development stage of the product's life cycle in impermanent state of
affairs.
Brand revitalization
The merchandising plan of action employed when a brand has reached maturity and
profits begin to decline. A brand revitalization program involves conceptualization to reclaim
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lost approach of brand interest. Plan of attack to revitalization may see one or all of market
expansion, merchandise adjustment or brand military position. A few examples of great social
media customer focus that has created value for companies across industries.
Challenges in Developing a Brand
BMW & MERCEDES
Expensive – The BMW group operate its business almost in every country in the world, in
order to promote its brand it takes a lot of investment. So the company focus less on its
advertisement. Mercedes uses a lot advertisement techniques such as tv ads, which cause a lot
of investment for the company (Burmann and et.al,2017).
Barriers in entry – Both brands focus on premium customers or high class customers as their
cars are costly, therefore it is a barrier for these brands in entering the middle level or lower
level customers market.
Brand Awareness – Another major barrier is to spread awareness among the customers, BMW
and Mercedes both are offering quality ant luxury vehicles in the market but they lack in
promoting there specialties. It develops a difficulty for customers in differentiating there
products from the other substitutes in the market.
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Development of Brand equity – CBBE Model
Level of developing brand equity( CBBE Model)
1. Brand Identity
2. Brand Meaning
3. Brand Response
4. Brand Resonance
TASK 2 : Portfolio and Brand Hierarchies
P3 Portfolio management, brand hierarchy and equity management
Portfolio strategy for BMW
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Illustration 2: CBBE Model for BMW

There are some brands' portfolio management, which is used by BMW organisation and
marketing strategy has largely been to create touch points like professional golf tournaments,
wine tasting sessions and events with fashion designers. Last year they organised an Experience
Drive in Gurgaon which brought in international trainers with a live performance by the
Australian Raw BANG. In this way focus on connection with powerful corporate brand. It is
inculcated skills, people, value, citizenship and performance. All such factor is an asset of a
successful organisation and manage internal and external value in market. Five portfolio strategy
variations along what has been referred to as the brand relationship spectrum help firms structure
and organize their brand suffering in a way that best meets market conditions and company
goals. Portfolio management of BMW is very attractive and innovative style which company
adopts to make higher share and profit for the company. Like BMW main aim is to provide
luxurious services and satisfied customer service. BMW investment is plays very major role in
terms of business development. Along with that, Mercedes is known for its superior model and
features of the four wheeler (Buil, Martínez and Matute, 2016).
 Brand house strategies :- Under the branded house strategy, the corporate master brand
acts as the single unifying banner, source of reputation, and federating force for all
merchandise and company offerings in the set. All offering in the unbranded house carry
only the steadfast umbrella brand, often with a form to clarify models or random variable.
BMW supply a classical example in the BMW 3-series, BMW 5-series, BMW 7-series,
and BMW Z3 models.
 The BMW brand architecture can be considered as a hybrid edifice consisting of a
collection of massive and free-standing models. The massive model is represented in
BMW, which is the name of the firm, the Master brand and the main army unit that has
its own commodity and employment.
Strategies for Portfolio management
 Top-down Approach: In this approach, managers observe the market as a whole and
decide about the industries and sectors that are expected to perform well in the ongoing
economic cycle.
 Bottom-up: In this approach, the market conditions and expected trends are ignored and
the evaluations of the companies are based on the strength of their product pipeline,
financial statements.
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 Passive Portfolio Management Strategy :Passive asset management relies on the fact
that markets are efficient Efficient market theory: This theory relies on the fact that the information that affects
the markets is immediately available and processed by all investors (Brexendorf and et.al
2014).
Brand Hierarchy for BMW
 Expensive brand :- In family brand is focus on when the products are given the same
brand name in market. In this way, this brand is set the target market and focus on only
such kind of market. On the other hand such kind of brand is focus on only higher upper
class family background people.
 Comparative research methods are research studies that inspect consumer attitudes and
behaviour toward a brand to directly estimate the reimbursement arising from having a
high level of awareness and unique brand associations.
 Some changes in overall development in both the organizations like BMW and
MERCEDES. As cage matches automotive-style go, null is better than this. These
wickedly competitors and immensely gainful brands all want to wear the Crown owned
by BMW for nearly a decade.
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Ill
ustration 3: BMW Brand Hierarchy
(Source: BMW Brand hierarchy, 2017)