Comprehensive Brand Management Report: IKEA's Strategic Approaches

This report provides a comprehensive analysis of brand management, using IKEA as a case study. It begins with an introduction to brand management, emphasizing its importance in achieving long-term profits and customer retention. The report then delves into the core components of a successful brand strategy, including brand pyramids, advantages of branding, and brand equity. Task 2 explores strategies for brand portfolio management, examining models like the "House of Brand" and "Branded Property Model," along with brand hierarchy management. The report continues with collaborative brand management, highlighting strategies for brand extension, reinforcement, and revitalization, and techniques for restoring and recovering a brand during crises. Finally, the report discusses techniques for measuring and managing brand value, awareness, and tracking attributes. The report draws on examples from IKEA's branding practices and concludes with a summary of the key findings.

Brand management.

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Importance of branding...............................................................................................................3
Key components for successful brand strategy...........................................................................6
TASK 2............................................................................................................................................7
Strategies for portfolio management...........................................................................................7
TASK 3............................................................................................................................................9
Collaborative brand management...............................................................................................9
TASK 4..........................................................................................................................................11
Techniques for managing brand value......................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Brand management refers to managing the positioning of branding which reflect the
integrity of the business which helps in gaining longer term profits. The management is mainly
undertaken by the marketing department regarding adapting the techniques and procedure
regarding enhancing the sales in the business (Tronvoll and et.al., 2019). As customer retention
can be undertaken through building the strong image regarding the services which the company
is offerings and also maintaining loyalty regarding providing the quality services. Thus, it is
examined that brand carry the powerful tool to distract the customer interest towards the business
and also engaged the interest of employees regarding carrying innovative ideas and implement
them in their working strategies. Present report is based upon the IKEA which was founded by
Ingvar kamprad in 1943. Due to carrying the renowned brand image in market, they are located
in around 313 places and also deal in products related to the furnitures or other unique home
services. At present, they are engaged with around 2,11,000 employees carrying the business of
IKEA at global level.
This report will cover the matters related to analysing the importance of the branding as
marketing tool in which the key components is discussed regarding managing the successful
branding strategy. It also carries with choosing the corporate brand regarding applying the
theories, models and framework to undertake the brand procedure in right manner. Further it
covers the matter related to different techniques of brand extension and brand level to expand the
business both at national and international market. At last, it includes the techniques to measure
the brand value, brand awareness and brand tracking attributes for the organization.
TASK 1
Building and managing brand “Brand is power”
By------,
Importance of branding.
Overview of brand:
A brand is the way a company and organization is perceived by those who experiences
this. This is the symbol, name, mark and logo which is used by companies for differentiate their
products and services at market places. This is very important and effective for managing
success of company. For example: Optimum impression Ltd is an active company which is

incorporated on 6th august 2003 with registered offices located in Leeds. The company marked
Blue and Yellow name on logo with C circle to differentiate their products and services from
market. This logo is gives positive impression on customers to providing better services and
attracting them.
Brand pyramid:
This is the tools which is help to build brand image at market place by attracting
customers towards the company. This includes five stages which are help to build brand
effectiveness.
Features and attributes is refers with name and design of product. Functional benefits is
provided clarity around the customer's problem by using kinds of products and benefits with
this product. Emotional benefits are refers with customers needs and feelings with this product
after using product and services of company. Brand or product personae is introduce benefits
of particular product to customer and product development to customer in order to reinforce
core values of products. Brand idea is the essences and main reason for customers to purchase.
The brand essences of company is to create a better life for the many of the people.
Advantage of branding:
Branding is created various advantages for company to build higher customer base as
well as maintaining brand at market place. The major advantages of branding are discussed are
Illustration 1: Brand pyramid
(Source: Build a Brand Pyramid, 2018)

as follows:
Advantage of company: Brand is created higher and effective advantage for company
this help to company for standing at out different from the others companies and competitors.
The main reason to build brand image which is impact on company market its brand in the
market than customers able to know about all the features of product and services. Advantage
for customers: This creates advantage for customer is to maintain brand the company which is
help to outline features of product provided by company with clear picture. Thus, it will be
more beneficial for company as they will have complete information about products. Advantage
for intermediaries: This also have advantage for intermediaries with the help of positive
branding. Like if supply of goods of company have good brand value this will also increase
goodwill of intermediary.
Overview of brand equity:
Brand equity is marketing terms which is described brand values which is determined by
customer perception and experiences with the brand. This refers to premium values of company
which will generated from product are recognized by name. In order to build brand here is
includes some strategies for Optimum Impression Ltd are as follows:
Brand awareness: This is the best strategy which is help to make focus on spreading
awareness of brand. In context of Optimum Impression Ltd make focus on generating
awareness relating to business and products. This is more important because customer need to
know about company and its products and services (Atwal and Williams, 2017). Brand
compliance is the stage, through which company is maintain and implement unique identify
within the market. In respect of that company Optimum Impression Ltd is outline capabilities of
product within the market so which it grabs the attention of customer. Brand loyalty is another
important aspect for maintaining brand equity. This help to make loyal customer base. For the
company need to maintain image by using the latest trends and technology within producing
products and services.
Importance of marketing department for developing brand equity:
Marking department is plays an important and effective role for creating effective and
valuable brand image at market place of company. Marketing team is identify whole market and
their needs with the help of research and development department. After, analysing market they
design and produce product as per needs of customers and provide better quality of product.

With this marketing department gives positive role within the company. Thus, it is help to
increase good customers base with proper market share (Balmer and et.al., 2017). This is very
important and effective for Optimum Impression Ltd company to make focus on marketing
because customer knowing that from brand name only like product to get extent. Branding is
important for marketing as reducing cost of market because brand value is more than if
company is continuous advertising their products and services at market place. This help to
create strong and positive trust of customers. With the help of this trust customers prefer
product and services which is help for maintaining and sustaining productivity and profitability
within higher competitive market.
Key components for successful brand strategy.
Brand equity is the strength of company which is help to maintain and continue with the
same brand value. Thus, it is very important and effective for Optimum Impression company to
timely managed strengthen of brand equity (What is customer- based brand equity? 2020).
Those strategies are as follows:
Brand extension: This is the strategy in which companies are extends established brand
only rather than introducing new product and services with new brand name. This is the best
strategy for use by Optimum Impression Ltd to maintain their brand value at market place
because which is already exist in the market. In respect of that company wanted to enter with
new product which is liked as company good brand value. Brand reinforcement: This strategy
is also best in which company is find those customers who are liked to purchasing same
products from the particular brand. In this Optimum Impression company make focus on
attracting new customer for increase sales of company (Beverland, 2018). This is effective and
valuable because that is done by spreading brand awareness among new market. Brand
revitalization: In this strategy companies are adopted a time when product is at maturity stage
of product life cycle. This can create more effectiveness for business to maintain growth of
company. Most of the company is on the getting back position earlier within the market. This
helped to solved by using strategy for companies like expanding business by making new
product, attracting new customer and repositioning or others.
Strategies to restoring and recovering brand:
In part is covered some strategies for restoring and recovering brand, if brand is the
stage it is very crucial for company to recover in the fastest manner. This is very important to

overcome from the crisis through that they are not able to manage profitability of company as
well as increase. Thus, it is very important to maintain brand Optimum Impression Ltd should
use those mention strategies are as follows:
Evaluate the causes by the brand is face crisis and try to solve problem is the first and
foremost strategy to recover the brand from any crisis. This will be completed by analysing
oevr all latest trends which are going in the market and then evaluating that whether those
trends in product or not (Burmann and et.al., 2017). This help to create and produce effective
and valuable products for company to get more effectiveness. The another one strategy which is
beneficial for company is communication with customer. The customer is main users of
product, for that it is very important for company to take proper and time to time feedback
about product. This help to manage to know their experience of using the product. This is
highly helpful for managing and getting suggestions from customer and to make changes as per
customers required with assessing feedbacks.
TASK 2
Strategies for portfolio management.
Portfolio management is the art of making effective and valuable decision about the
investment mic and policy which is matching with investment objectives. This refers with
allocation of assets for individuals and for balancing risk against of performance.
Brand portfolio strategies:
A brand portfolio strategy is about the family brand, their roles and their relationship with
each other. This delivers various synergy, leverage, relevance, differentiation and clarity. This
help to achieve goals, on going efforts to review and define its needs for business. Under this all
the brands their own operational structure nuts are share a common resources and promotional
activity which is sold under single brand name (Burmann and Schade, 2017). This brand
portfolio maintain two models which are discussed underneath:
House of brand:
This model is refers to a portfolio where brand have different names across the
categories. Most of them major consumer goods company and have main advantage for company
to make independent brand. Here investment is higher because each brand operates as its own

company and requires own resources. For example: Nestle is operates with many names like
Purina pet food and others.
Branded property model:
This model is use on brand across all the categories. This creates various positive
advantage which is positive image is one most beneficial categories and negative publicity or
event will create negative impact on the business (Chernev, 2018). In respect of that companies
are needs to know about customers and their needs with company. For instance, Tesco is
operates with so many brand names like Tesco Bank, Tesco mobile, Tesco Ireland and Tesco
Stores.
Hierarchy management of brand:
This is very useful and effective brand strategy which company use by graphically
display its branding strategy by differentiate them on same and common basis points. For the
same here is mention different ways in which IKEA can build brand hierarchy are as follows:
Corporate branding:
This type of branding in which company promote their product and brand only by using
company name. The corporate brand is only use brand name here is taking example of Hewlett
Packard. The company is use this type of branding strategy to build effectiveness.
Range and family branding:
This is define the brand which is used in more than on product category but not necessary
the name of company is same (Kapferer and et.al., 2017). For example: Con-Agra Healthy
choice company is used to sell a wide food products, including frozen en-trees, Package Cheeses
and meats or others.
Individual branding:
This branding is defined as a brand that has been restricted to essentially one product
category, may used for several product types within the companies are take effective and
valuable decision for company. Like Gamble is huge brand name but consists products not
attached with their name of company is Oral B, Ambi pur and other.
Endorsed sub brands:
Under this strategy, companies are created sub brands of their products and services. For
that here is take the best example of Nestle and KitKat, Nestle is brand name and KitKat is sub
brand of company.

Management of brand equity at various level of hierarchy:
This is very important and effective for company to manage their brand equity at every
level of hierarchy like at corporate level, family and individual level (Lee, O'Cass and Sok,
2017). This is the main reason for managing brand equity at different level.
Customer base equity model: For managing the bran equity, the best model used by IKEA is
Keller brand equity model. Brand identify: Here is company outline the facts for recognize the other brand and
differentiate from other brands. This help to present itself in front of customer in effective
manner. Brand meaning: at their company is try to make aware customers about their products
and services which they are offers at market place. With the help of this, all the doubts
and confusions of customers are cleared in effective manner. Brand response: This creates more effectivenesses for company, here management try to
take positive response of customers about products and services (Lee, O’Cass and Sok,
2017). For that company IKEA is take feedbacks from customers about product like
product is bad of good.
 Resonances: This is the final stages where company make changes as per customer's
requirement. This help to maintain brand equity at positive manner.
This is very useful and effective for IKEA to maintain their brand equity in effective and
valuable manner.
TASK 3
Collaborative brand management.
Brand extensions is the strategy in which company market the products and services by
using same name of brand but promote in different manner by using different channels of
promotion. This is new product which is called the spin off. There are two types of brand
extensions which are line extensions and market extensions. The line extensions refers the
attraction of new customer which affected by producing the same category of range of product.
On the other side, market extensions is used by companies by adding new category of product
within the product of company (Ofek and Schwalb, 2018). As per that IKEA is extending their
business in other ways to create more effectiveness for business.
Fit and leverage:

Fit in the brand management which is defined as the fact whether the brand is fit for the
company to satisfying needs of customer or not. This is very important and effective for
company to maintain their brand leverage which is the power of the brand is the ability of the
company to gain competitive advantage and increase share of company within the market. This
is very important for company to increase effectiveness.
Different ways for reinforced and revitalized: Untap new market: This is the effective and valuable step in which IKEA need to outline
and tap the market. This will help to company to attract new customers toward company
and increase market share and customer base. For example: the company Johnson and
Johnson deals in baby care products now company wanted to operate in ladies products.
 Reposition of the products: this is another ways of reinforced and revitalized the product
and services. In this if company have wrong position then company need to reposition it
in much better manner for attracting new customer. Like: Tata Nano car is position is the
cheapest car in that company need to make reposition of company by lunching new
products and services at market place (Veloutsou and Guzman, 2017). This help to
company for regaining their position in market by attracting more customers toward
company.
Brand collaboration and partnership:
The brand collaboration is known as the co branding which is used to market the product
by collaborating with the help of different level of brand according to strategy. This referred with
the brand partnership and its in competitive world. This is very important for companies to make
proper and effective collaboration with the another people and companies at market place. This
is highly due to the fact for the both global and domestic level there have the many companies
which are dealing in same products. Thus, it is important for making proper collaboration with
their competitors by addressing and analysing their market strategy which will reduce and
customer loyalty or market share will increase in effective manner. This is effective and valuable
for the company to meet the needs and wants of customers in effective manner.
TASK 4
Techniques for managing brand value.
Brand value is to be determined regarding measuring the loyalty of the customer
regarding pertaining to particular products. As the company brand is enhanced through retaining

the employees in the business and also providing quality services to the customers (Bilsland and
Cumbers, 2018). Thus, in case of IKEA, the brand values is determined through undertaking the
following branding techniques which is used in enhancing the business at larger scale is relating
to the:
 Brand value: This in mainly undertaken to determine the value of the products after
using the promotional tool to promote the products in the market. The value of the IKEA
is examined through using the techniques regarding retaining the interest of the
employees at work place (Vardar, 2018). This can be undertaken through providing
flexibility and liberty to employees to take their own decisions. By these aspects they
itself liable for the risk associated and work according to the set norms. Brand value is to
be maintained by the company itself regarding offering quality services at reasonable
pricing which attract the interest of the customer for longer way.
 Brand awareness: In this awareness is to be generated among the customer regarding
preferring the particular products or services. IKEA deals in ready to assemble furniture
which is one of the speciality in selling the products and also carry unique concepts to
retain the customer interest (Yang and Shao, 2019). Thus, awareness is to be undertaken
regarding promoting the products through examining it usefulness after availing such
products. This mainly focus on getting positive reviews from the customer and also the
services which they are providing is also effective. In this the availability of the customer
are also determined which indicates that the capability of buying the particular products
and also the services which they are offering are effective or not (Schneider and
Bermudez, 2018). In these aspects, the innovative logo and trade mark sign play the
effective role in enhancing the brand image at global level.
 Market share: It indicates through carrying the high market share as IKEA is carrying
the top ranked in context of furniture and other home services which they are offering to
the customer. In relation to worldwide, IKEA opened 12 new stores in 2019 which
indicates that they are sharing the good market share. In respect of enjoying the brand
value of the company, they are mainly targeting all range of people and also
concentrating on geographical location and analysing the main aspects which is
demanded by the customer (Garvey, 2017). Thus, market share is undertaken through the
price preferences which is mainly demanded by the customer regarding preferring the

products of IKEA. It is mainly determined through the sales which is undertaken in
respect of producing the products and promoting in market.
 Consumer Attitudes: It refers to the attitude which reflects the thoughts, expression and
preference regarding choosing the selected products. As the stability of the business is
fluctuated through the preferences and taste of the customer regarding preferring the
particular products. Thus, it is necessary that products must be designed according to the
taste and choice of the customer. In respect of IKEA, this information is to be gathered by
the research and development department which provide the accurate information about
the current trends emerging in market (Alaali, 2019). Thus, by adapting this technique, it
results in enhancing the brand image of the company through identifying the customer
attitudes regarding availing the particular products. If the customer are positive with the
company services or products, then it results in gaining positive advantages regarding
promoting the business at larger level (Blaszczyk, 2016). Through this manner, it also
motivates the business and employees to provide more quality and innovative products
which enhances the sales of the business for longer way.
 Purchasing Intent: It is mainly adapted by the marketing manager regarding examining
the future strategies and then accordingly the changes are made in respect of pertaining to
particular things. As this mainly indicates that if the consumer not intent to purchase the
products than company is lacking in some particular aspects which results in lacking to
retain the customer interest towards the business for longer time period (Hultman and
et.al., 2017). This is one of the useful techniques which resulting in examining the
intention of the customer regarding preferring the particular products. In case of IKEA,
this is useful in respect of bringing more innovative offers and also conduct the
appropriate research through carrying the feedback reviews form (Raska and Richter,
2017). Through this manner, they can enhance the brand value by working according to
the instruction given by the customer regarding changing the exiting products or
strategies.
Brand equity is to be maintained in respect of producing the products with high quality
and also making it memorable. By these aspects, it results in highly preferable by most of the
person. In context of conducting the brand audit, it is undertaken through examining the
competitor's strategy and the reviews form which is filled by customer regarding preferring the