Brand Management Report: Analysis of McDonald's and Coca-Cola

This report delves into the core concepts of brand management, emphasizing its significance as a marketing tool. It examines key components of successful brand strategies, focusing on building and managing brand equity. The report explores strategies for portfolio management, brand hierarchy, and brand equity management, using McDonald's and Coca-Cola as case studies. It further discusses collaborative brand management approaches at both domestic and international levels. Various techniques for evaluating and managing brand value are presented. The introduction defines branding and brand management, highlighting their importance in differentiating products and services, increasing sales, and fostering customer loyalty. The report analyzes the importance of branding, the key components of a successful brand strategy, and challenges in developing a strong brand. It provides an in-depth analysis of brand equity, including components such as customer perception, brand promise, and brand value.

BRAND MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Significance of branding as a marketing tool ...................................................................1
P2 Analysing the key components of a successful brand strategy for building and managing
brand equity............................................................................................................................3
P3 Discussing strategies for portfolio management, brand hierarchy and brand equity
management............................................................................................................................5
TASK 3............................................................................................................................................8
P4 How brands are managed collaboratively and in partnership at domestic and international
level........................................................................................................................................8
TASK 4..........................................................................................................................................12
P5 Various types of techniques to evaluate and manage the brand value............................12
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
A brand is defined as a unique symbol, design, words etc. It helps business entity in
differentiating their product with that of competitors. Brand management refers to the procedure
of maintaining, enhancing and upholding of brand. It includes very significant aspects like
customer satisfaction, cost, competition and in-store presentation. The basis of brand
management is marketing. The objectives of brand management are more concerned with
identifying the way through which the brand can remain popular and favourable to consumers.
The brand management activity assists organisation in increasing its sales and generating
revenue. The various elements of brand management are product, price, packaging and
promotion. Furthermore, the brand management is important as it supports firm in increasing
their business value and getting recognition in the market. The objective of brand management is
to develop an emotional connection between people, consumer and products. It also enables
organisation to get recognition in the market. Brand identity refers the marketing manager
commitment to deliver good quality of product or services to its customer.
The report emphasises on demonstrating the significance of branding a marketing tool. It
will highlight the important elements of brand and components of effective strategy for
developing as well as managing brand equity. The project will focus on the strategies adopted by
McDonald’s and Coca-Cola for developing and enhancing brand image in the market.
TASK 1
P1 Significance of branding as a marketing tool
The brand is referred to as name, symbol, design or combination of all these elements. It
is developed in order to differentiate firm products from that of competitors. Brand is essential as
it allows consumer to recognise the products or service of seller and compare with other
competitors. The brand consists of tangible as well as intangible attributes. Tangibles features
include product, price, packaging, labelling and other functional advantages. Intangibles attribute
involve quality, values, cultural, image, emotional advantages. The brand is the significant
element that assists organisation in demonstrating or communicating the objective of company. It
has physical qualities. Personal brand indicates individual personality. It defines the quality or
features of the organisation (Leonidou and et.al., 2013).
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SIGNIFICANCE OF BRANDING
The branding is important as it assists business entity in increasing its value. It allows
workers or staff member in organisation to get update themselves with the business goals and
objectives. Brand provides direction as well as motivation to employees. It supports firm in
attracting more number of consumer. A brand provides organisation an opportunity to develop
and maintain healthy relationship with their client. Effective as well as attractive brand indicates
the customer perception about the company products and services, reputation, logo and
advertisement. McDonald’s and Coca-Cola Company have been able to develop and enhance
brand image to its quality of product or services. Brand is the element that allows consumer to
make purchase decision (Sarin, Challagalla and Kohli, 2012).
Branding Enhance Recognition- The important element of brand is logo. This is the important
factor that has supported McDonald's to achieve success and foster growth. Logo is essential as it
supports organisation in promoting its product or service in the market. It is important for the
companies to develop simple logo as it has great and long term effect on consumer. It also
attracts customer to buy particular brand.
Brands develop trust- Professional and attractive brand helps business entity in developing
creditability and trust. It also allows firm to create and maintain healthy relationship with its
clients. Brands provide an organisation an opportunity to gain customer loyalty and influence
them to buy goods or services. As The McDonald’s and Coca-Cola is dealing in food and
beverages the cited ventures it is essential for them to gain customer loyalty in order to achieve
business goals and objectives (Cronin-Gilmore,2012.)
It supports Advertisement- Other component of brand is advertisement. It allows business entity
to promote its products or services in the market and attract the targeted consumer group. Brand
also provides organisation an opportunity to expand core business activities.
Brands develop financial value-. A strong brand usually guarantees future business.
It helps in motivating Employee- Many workers in business entity requires more rather than
facilitating work, they require something to do unique. Employees want to work at such place
where they feel that they have scope to foster their career as well as development process. When
the workers get knowledge about the firm objectives, it enables them to feel pride. Brands also
provide direction to workers in order to accomplish goals (Kumar, Rahman and Kazmi 2013.)
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Brands generates New consumer- Branding allows organisation to get referral business. It allows
the business entity to have positive impression on consumers.
Increased revenue and market share-With the effective brand reputation and wide customer base,
the firm can enter into new market segment. It also provides other opportunities such as co
branding, brand licensing and gaining new distribution.
Brands supports organisation in surviving in temporary crises- As the Mc Donald company is
operating in global environment, the economic factors have great effect on its business operation.
Then also the company able to survive and has become again, it is due to its brand image and
quality of products (Eggers, Hansen and Davis, 2012).
The objective of branding as business practice is to promote brand and products as well
as services. Effective brand enables consumer to identify the seller and gain memorable
experience by purchasing the product or services of particular brand. The brand assists business
entity in increasing its sales and profitability. It is the effective marketing tool as branding assist
organisation in increasing its market share and values. This factors also allows firm to
differentiate their product from that of competitors and gain competitive advantage by delivering
good quality of products and services to clients. Due to the effective branding strategy and strong
brand image, the companies like McDonald’s and Coca-Cola has been able to achieve success
and foster growth (Fifield, 2012)
P2 Analysing the key components of a successful brand strategy for building and managing
brand equity
IMPORTANCE OF BRAND STRATEGY
Brand strategy is so crucial for McDonald's and Coca-Cola that it will help them to
understand their customer’s demands and requirements and also to do their businesses effectively
in the market. Brand strategy also helps them to manage their operations in the market
efficiently. It will help McDonald's and Coca-Cola towards their decision making. Brand
strategy helps both firm to evaluate their customer requirements according to their demands and
perceptions effectively (Anselmsson, Bondesson and Johansson, 2014). It increases the trust and
loyalty in customers towards the products and services offered by both firms effectively.
MANAGING BRAND OVER TIME
The market is full of competitors that McDonald's and Coca-Cola should evaluate their
products, services, techniques, framework and customer taste and preferences in order to manage
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their brand for a long time of period effectively. Branding strategies, programs and marketing
communication helps businesses to look forward to maintaining their customer based brand
equity effectively. Balancing brand management will also help them to determine the future
preferences of customers. Coca-Cola is a market leader but also constantly manage their
marketing programs. Every brand faces challenges during the product life cycle process that it is
crucial to focus on expanding the brand awareness between customers and market effectively.
Revitalisation is also a good method to improve the brand performance of McDonald's and Coca-
Cola. Thus, from such activities McDonald's and Coca-Cola can manage their brand image over
long period effectively (Aremu, Isiaka and Suleiman, 2015).
CHALLENGES DEVELOPING A BRAND
 Treating brand as assets: The pressure for developing a brand is to deliver short term
financial outcomes effectively. Measurement of brand assets and value.
 Possessing a compelling vision: Every brand needs to differentiate their products and
services from others in order to maintain their brand value in the market effectively.
 Creating new subcategories: Brand faces challenges when it comes to create new
subcategories for it effectively in order to bring their brand vision into life efficiently.
 Achieving integrated marketing communication: IMC is very difficult for McDonald's
and Coca-Cola that they have to choose methods such as digital, advertising, social media
and many more for marketing communication.
 Strategy development: Brand strategy is very important for both McDonald's and Coca-
Cola firms in order to create their brand value and equity in the market effectively and
efficiently.
BRAND EQUITY
Brand equity is kind of phrase which is used by McDonald's and Coca-Cola in order to
create their brand value and name in the market towards customers effectively. It increases
McDonald’s and Coca-Cola revenues effectively. Both McDonald's and Coca-Cola can make
their brand equity through products and services and making them easily recognisable, superior,
reliable and memorable. The main and three basic components of brand equity are customer
perception, resulting values and negative and positive effects (Balmer and Wang, 2016). Brand
equity is based on customer perceptions which include both experience and knowledge
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effectively. Here are some components in order to build and manage brand equity of McDonald's
and Coca-Cola effectively.
 Target customer and audience: Target customers and audiences are those people who
are likely to purchase the products and services offered by McDonald's and Coca-Cola
effectively. It is crucial to determine the process of purchasing in order to look not just at
customers or audiences but to buy services who are within the market to buy the products
effectively.
 Brand promise: This is the main component of McDonald's and Coca-Cola to
accomplish the customer perception effectively and efficiently. Promise by both firms
describes the customer expectations to purchase the product and service. It is also a
message which speaks about the target of firm to their customers.
 Brand value, voice and perception: McDonald's and Coca-Cola needs to look at the
past perceptions to accomplish their future expectations and perception effectively. Brand
value helps both firms to make effective decision making and the voice of both brands
defines the personality of brand effectively and efficiently (Couto and Ferreira, 2017).
TASK 2
P3 Discussing strategies for portfolio management, brand hierarchy and brand equity
management
BRAND PORTFOLIO STRATEGY MANAGEMENT
Strategy for brand portfolio management helps to evaluate the roles, structure,
interrelationships and scope of the brand portfolio effectively and efficiently. Strategy for
managing the brand portfolio is very difficult as well as important for McDonald's and Coca-
Cola in order to achieve the market perceptions and customers preferences effectively. Some
guidelines are here to make McDonald's and Coca-Cola brand portfolio strategy effective and
efficient, which will help both firms to reach their customer and market perception effectively.
 Brand roles: McDonald's and Coca-Cola needs to be sure about the brand roles which
will be well defined and describes for each product and service in the context of market
effectively and efficiently (Hollebeek and Chen, 2014). In respect to this, the roles should
be well defined that each brand has its role to reach their customer perception which will
help them to strengthen their brand portfolio efficiently and effectively. For an example,
emerging platform for the brand, endorsers brand and lynchpin brand etc.
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 Long term thinking: McDonald's and Coca-Cola should have to manage their brand
portfolio in order to manage and handle their available resources which will help them to
achieve their future and present profits and growth of the business efficiently and
effectively. Both McDonald's and Coca-Cola needs to balance the dual tensions of near
term profit and loss with the help of creating long term values of their assets effectively.
However, the valuation of brand is also useful to utilize the resources which will assist
towards their decision making efficiently. Brand portfolio can be also assessed with
qualitative approach effectively.
 Customer perspective: Decisions regarding the brand portfolio not only considered the
review of financial information and data but also takes perspectives of customers which
are originated inside the board room efficiently (Hu, 2015). Quantitate and qualitative
both approaches are very important and useful for McDonald's and Coca-Cola in order to
achieve the conducting market and customer research effectively and efficiently.
 Consider brand architecture model: Architecture of brand is known as the structure of
brand portfolio which involves the way and pieces used for making effective brand
portfolio efficiently. Brand architecture model will also help McDonald's and Coca-Cola
to evaluate how they can differentiate their products from each other effectively and
efficiently.
 Connection to business strategy: The strategy for making brand portfolio effective and
efficient is to connect with the business strategy which will help McDonald's and Coca-
Cola to evaluate their growth in market segmentation towards products and services
which are associated with the propositions values efficiently and effectively.
Thus, the brand portfolio is all about roles and relationship with each other and creating a
happy family of brands effectively (Hudson, 2017). This will be deliver synergy, clarity,
differentiation, energy to achieve and leverage for accomplishing business goals and objectives
which will help McDonald's and Coca-Cola businesses to review and evaluate the casual
requirements and demands of customers effectively and efficiently.
BRAND HIERARCHY
Brand hierarchy is normally the summarisation of branding strategy which shows the
nature and number of common elements and distinctive of brand across McDonald's and Coca
Cola products and services effectively and efficiently. It is based on the realisation in which a
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product or service can be reproduce or rebranded in different ways that depends on the factors
and elements used in previous branding effectively. It also shows the mixture of making any
service or product efficiently. In case of brand, hierarchy moving from the top level to bottom
level includes more entries at each level of succession. Different level of brand hierarchy helps to
improve and develop the branding strategy effectively. The brand hierarchy is engaged in
determining the logo and design of brand with the help of researching and measuring the market
information. Brand hierarchy involves two levels such as executive support level and strategic
decision making effectively (Javid, Monfared and Aghamoosa, 2016).
KELLER'S BRAND EQUITY MODEL
Keller's brand equity model is also known as customer based brand equity model which
improve and develop a powerful strategic brand management effectively. The model considered
the brand meaning, identity, response and resonance witch helps McDonald's and Coca Cola to
build a powerful strategy for managing their brand and equity efficiently.
Brand identity: Brand identity includes the awareness of McDonald's and Coca Cola products
to ensure the brand stands out and consumers can easily remember the brand effectively. This
will help customers to aware of such brand.
 Identification of target and potential customers with the help of evaluating customer
requirements and research.
 Decision making for consumer market segment.
 Brands and products classification.
 Knowing the consumer perception and choose between competitors brand and
McDonald's and Coca Cola brand effectively.
Brand meaning: The brand meaning involves the communication and identification of brand
meaning and the purpose of McDonald's and Coca Cola. Performance and imagery are two
blocks to build the meaning of brand effectively. Imagery refers to the demands of consumers on
social and psychological level where performance defines the achievement of consumer needs
effectively.
 Consumer experience with McDonald's and Coca Cola products.
 Products should meet the consumer demands (Jin and Cedrola, eds., 2016).
 Accounting imagery and performance for creating brand personality.
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Brand response: The third step is the response provided by the consumers after using the
products and services. This will be divided into two categories or blocks which is judgements
and feelings effectively.
 Customer judges the quality of products on the basis of brand.
 Credibility with the help of three dimensions expertise, liability and trustworthiness.
 Customer consideration for products with different and unique demands.
 Brand superiority as compared to other brands.
Brand resonance: Brand resonance is very difficult to reach for McDonald's and Coca Cola that
it comes up with the top level of brand equity. This can be accomplish by McDonald's and Coca
Cola with the help of feelings of customers and psychological bond effectively.
 Customer loyalty and behaviour of repeating purchasing of product.
 Attitudinal attachment which describes the customer love towards products and services
effectively.
 Community sense in which the consumers are associated with the brand and become the
representatives.
 Active engagement with the brand even if the customers are not purchasing the products
and services effectively (Kapferer and Michaut-Denizeau, 2017).
TASK 3
P4 How brands are managed collaboratively and in partnership at domestic and international
level
EXTENSION APPROACHES AND STRATEGIES OF MCDONALD'S AND COCA
COLA
McDonald's and Coca Cola is the famous food and cold drinks suppliers that they need
some specific and effective strategies to expand their market and operations at domestic as well
as at international level effectively and efficiently. McDonald's and Coca Cola can achieve this
with the help of life cycle of products and services efficiently. Approaches and strengths will
help them to extent their market towards customer perception effectively. Here are some
approaches and strategies from which they can improve and develop their markets efficiently.
 Ignoring critics: As a common man the CEO and other managers of McDonald's and
Coca Cola hears a lot negative aspects and critics about the products and services in the
market by customers and other people (Kleppe and Mossberg, 2015). In respect to this
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the CEO and other managers only listen the critics patiently and make solution for this to
be effective in the market with changing taste and preferences of customers effectively.
 Ordinary to beautiful: McDonald's and Coca Cola tries to improve their products and
services such as burger, coke, potato fries and many more. They design new and
innovative things for their products to make it effective and also improve the taste so that
both firm can increase their market share and achieve the customer perception effectively
and efficiently.
 Justifying the price: Pricing strategy is all over the place that McDonald's and Coca
Cola both provides superior quality products and services for their customers in the
market effectively and efficiently. The can easily justify their prices on the basis of
effective products that customers can satisfy with the taste and preferences effectively.
This will help both firms to extent their market and achieve the customer perspectives as
well.
 Re-packaging: Re-packaging is a good and effective way from which McDonald's and
Coca Cola can give a mature and good image of services and products offered in the
market which will help them to manage the marketing activities and operations
effectively (Lin and Chueh, 2014). This will also help them to extent their market at
domestic as well as international level efficiently.
 Discounting: McDonald's and Coca Cola can provide discounts for their customers in the
market and this strategy will help them to expand their businesses and will help to
achieve the customer perception and preferences effectively and efficiently. They can
reduce the prices as the new product will come to the market that will also help them to
manage their existing products effectiveness.
 Expanding abroad: McDonald's and Coca Cola is already an international brand that
they can also manage and handle their operations and activities at international level
effectively. This will not only expand their businesses but also help them to increase their
profitability and production effectively and efficiently (Park and Kang, 2015). Products
and services offered by the both firms are useful for all people in term of enjoying the
fast food and cold drinks effectively,
BRAND REVITALISATION AND REINFORCEMENT
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Reinforcement of brand is all about managing and handling the brand equity. This will
help them to ensure that the customers has enough knowledge regarding the products and
services from the uses which will help them to receive necessary and important information
about the resources used by the firm effectively and also help to manage the brand equity
effectively. This can be achieve by McDonald's and Coca Cola by market activities which carries
the actual meaning of brand equity towards consumers. This will also help them to aware their
customers towards the brand image effectively (Salinas, 2016). There are many reasons from
which the reinforcement strategy fails such as new technology and techniques, competitors,
customer tastes and preferences etc. effectively and efficiently. In respect to this McDonald's and
Coca Cola brand should revive their luck with the help of coming back towards their roots which
will help them to recapture the lost resources of equity effectively. This process is known as
revitalisation.
STRATEGIES FOR REVITALISATION
It is very important for McDonald's and Coca Cola firms to determine their marketing
and managerial actions which helps them to revitalise the brand in the minds of consumers
effectively and efficiently. The main role for this situation is differentiation from which both can
achieve the innovation and improvement effectively (Schallehn, Burmann and Riley, 2014). In
respect to this there should be a well maintained promotional and planning strategies to advertise
the campaign of revitalisation effectively. Revitalisation strategies involves some elements such
as changes in firm model, innovations, techniques, opinion of leaders and 360 degree feedback
system etc. this will help them to revitalise their products and service efficiently.
 Identification of extra opportunities: the strategy is all about reminding the consumers
about the uses of products and services offered by McDonald's and Coca Cola in order to
increase the frequency of uses efficiently. This will also help both firms to increase their
future and present opportunities from which they can develop their market effectively and
achieve the customer perspectives and preferences.
 Different ways to use the brand: Different ways of using the brand is refers to selling
the products and services in unique way or in different way with making some effective
changes in the brand effectively. This will help McDonald's and Coca Cola to attract new
consumers for purchasing the products and services in the market effectively.
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