Brand Management Report: Coca-Cola Branding Strategies and Evaluation

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This report provides a comprehensive analysis of Coca-Cola's brand management strategies. It begins by defining branding and its importance as a marketing technique, highlighting how Coca-Cola uses its logo and various product lines to enhance brand recognition and generate customer loyalty. The report then explores the key elements of a successful brand strategy, including brand equity, public relations, social media, and digital marketing, emphasizing the importance of adapting to market changes and meeting consumer needs. Furthermore, the report delves into different portfolio management strategies, brand equity, and hierarchy management, examining how Coca-Cola manages its financial resources, human resources, and sales to attract customers and increase market share. The report also covers various tools and techniques used for evaluating and managing brand value, concluding with an overview of the challenges Coca-Cola faces in maintaining its strong brand position.
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Brand Management
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Table of Contents
INTRODUCTION ..........................................................................................................................1
SECTION 1......................................................................................................................................1
LO 1.................................................................................................................................................1
P1 Importance of branding as a marketing technique.................................................................1
P2 Key elements of a successful brand strategy.........................................................................3
SECTION 2......................................................................................................................................4
LO 2.................................................................................................................................................4
P3 Different strategies of portfolio management, brand equity and hierarchy management......4
LO 3.................................................................................................................................................8
P4 Brands are managed collaboratively and in partnership........................................................8
LO 4...............................................................................................................................................10
P5 Various kind of techniques and tools for evaluating and managing brand value ...............10
CONCLUSION .............................................................................................................................13
REFERENCES................................................................................................................................1
.........................................................................................................................................................3
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INTRODUCTION
Brand management is identify as a process of upholding, improving and maintaining a
brand so that name is formed with positive outputs. It will considers different number of essential
aspects such as buyers satisfaction, cost, competition and in-store presentation. Is is also define
as a marketing part that deals with evaluate and planning of target clients, brand image,
perception and positioning. With the help of these company can attract million customers and
increase their sales effectively. It also helps them in establishing better relationship with buyers
so they can maintain long-term connection with business. It can be maintained by intangible and
tangible aspects of the business product. Tangible elements includes the packaging, core product,
and price etc. Intangible components covers clients experience, product positioning, value added
facility and buyers relationship with the product image (Rosenbaum-Elliott and et. al., 2015).
This report is based on Coca-Cola is a multinational company which cover worldwide. This
project discussed about the importance of branding and key elements of successful strategy.
Different types of strategies such as brand equity, portfolio management and other also shown in
this study. Company use various types of tools and techniques for managing and evaluating their
brand image in an effective manner.
SECTION 1
LO 1
P1 Importance of branding as a marketing technique
Branding can be defined as a process of creating unique image and name of the product
which distinct the particular product or services from other rivalry firm. It aims to develop
differentiated & significance presence in the market place that stimulates and keep loyal
consumer for longer period. Brand represents the buyers perception in terms of company's
product or services, advertising, logo or reputation (Kelley and et. al., 2015). Thus, it become
important for a business firm to establish strong brand image in the eyes of their potential
customer. Below mentioned are the importance of branding as a marketing tool:
1. Branding Enhances Recognition: One of the major component of Brand is its “logo” as it
instantly attracts the buyers. For instance, Coco-Cola follows its one brand strategy. Their
innovation includes classic, diet coke and no calories & sugar. They are promoting their entire
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range with different characteristics which stimulates the buyers and make them to buy their
product.
2. Brands provide a stable asset: There are certain situations when technologies might change,
product might fail but if the company is having strong brand image they will pass through all
such changes easily. Coco-Cola has been serving their consumer for more than 120 years which
is quite long in comparison to the other competitors firm who have existence normally for 20-30
years.
3. Branding generates new customer: Coco-Cola new range attracted the buyers on vast level
who are fitness freak. When Coco-Cola launched its Zero-Sugar product worldwide, within a
short span of time its sales had increased up-to 35%. Also Branding enablers the firm to get
business through referral (Dinnie, 2015). A fitness freak person will definitely share his/her
review about the product with their friends, family members etc. which gives Coco-Cola free
publicity or advertisement through word of mouth.
4. Brand sets expectation: Today we live in world where everything is based on promises or
expectation. Teacher promise to educate children, Restaurant promise to serve the best quality of
food to its consumer etc. This increased the expectation of buyers and often make them blind
regarding the Company's Product. For instance, Coco-Cola No Sugar No Calorie product makes
the audience to expect that their product is not containing any sugar particles. Client's
expectation liable Coco-Cola to make product according that satisfies the changing needs of
buyers.
There are certain chances when customer get confused between the brand or product.
Though both are extremely different, but there are certain situations when people consider brand
as Company's Product (Abrahams, 2016). Below mentioned are the key points that distinguish
brand from a product:
Brand Product
Brand is often built by trust of customer. It is normally developed by the organisation in
a factory.
It is unique. Competitors can copy Product.
Strong Brand is Timeless Product become obsolete with passage of time
It become meaningful over time. They are instantly meaningful.
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Emergence of Branding took place in the pre-historic times and it was first begun with
branding of farm animals. Over time, various archaeologist discovered extensive grounds of
labelling and branding in antiquity. Further Roman Empire suggested that branding was
considered as widespread practices. It was mostly commonly used in the 19th century which
distinct the product or services from various competitors (Sarin, 2015). In the modern era,
Branding serve as the key element in the success of any business enterprise. Brands makes the
connection with target audience for longer time which in return increase the overall market share
& profitability of the company. Branding enables the company to achieve marketing success at
global level.
P2 Key elements of a successful brand strategy
Brand Equity means value of a Brand in the marketplace and that value is discovered by
the experience and perception of target audience. According to Stroke, a firm can easily generate
more profits or revenue by strong brand recognition in the eyes of potential buyers. It is also
considered as the qualitative measure that determines the goodwill of a company in the client's
mind. It gives the advantage of higher competitiveness level to the firm over its rivals. The
concept of this comes into existence when buyers purchase product according to their choice or
demand. It is generally compromise of Brand Awareness, Brand Loyalty, Brand Association, and
Perceived Quality. Company always aims to develop Positive Brand Equity among customer
which means that they are continuously thinking about their brand only (Som and Blanckaert,
2015). The importance of Positive Brand Equity are as follows:
With great brand equity, firm can charge higher price from the consumer for their
product.
It enables the entity to make more with positive brand equity.
It help in increasing the stock price of company.
For instance, Coco-Cola is the only brand that has recognition from all over the world. Its market
presence is in almost every other country. In-fact may people consume Coco-Cola on daily basis
which gives them high degree of loyal audience (Zarantonello and Pauwels-Delassus, 2015).
Further the referred firm develop its positive reputation by offering Diet Coke and No Sugar &
Calorie product.
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It is essential for an enterprise to understand the different factors of each brand strategy pillar and
determine how they can be collectively used in order to maximise overall impact of company on
target people.
Public Relation: If the company is having well-defined business goal & target audience,
it become easier for them to establish better public relation. Coco-Cola set up “Coming
Together Campaign” campaign that is based on the theme “all calories are countable”.
This theme make buyers thinks to develop a balance between calories intake and calories
burn (Kapferer and Michaut-Denizeau, 2017). They invited people to join this campaign
via mail, announcement in localities.
Social Media: Coco-Cola has also used the social media platform in order to create
awareness among consumer. They have created their own Facebook, Instagram, Twitter
Page where they keep on updating their new product, review of people, they even post
video in which Celebrities are consuming their product and reviewing them.
Digital Marketing: With the help of digital media, Coco-Cola can promote their PR
results & Brand strategy. They can create data driven white paper techniques such as re-
marketing ads or pay per click advertisement. This will help in attracting more consumer.
Coco-Cola operates in a market which is highly dynamic which makes difficult for the company
to manufacture constant product for longer period. It strongly impact the customer desire as it is
also keeps on changing with the market scenario (Shah, 2015). Thus, Coco-Cola is required to
offer such products to its buyers which satisfies their both current & existing needs. For instance,
they have developed Green Coco-Cola which is mainly for those people who are fitness freak.
They are liable to innovate their product over time.
There are several challenges which are faced by Coco-Cola in order to retain its strong position
in terms of its Brand which are described below:
Considering Brand as assets
Owning compelling vision
Developing new categories which serve as barrier for the company.
Unrealistic Expectation.
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SECTION 2
LO 2
P3 Different strategies of portfolio management, brand equity and hierarchy management
Coca-Cola is a famous and popular brand in all over the world. This company produce
different types of beverage to their customers at reasonable price. In every marketplace this
business is very popular because they produced branded products. Main role of administrator is
to manager their all financial resources in an effective manner. Coca-cola is a popular brand so
they needed more money in order to do all activities and give better quality in beverages to their
regular and potentials clients. In the organisation, HR plays vital role in recruiting and selecting
knowledgeable workers who can easily communicate with their clients (Su and Tong, 2015).
They are also liable in providing better training and development secession to employees, in
which they can increase their knowledge and achieve long term goals and objectives of
company. With the help of sales department company can attract minimum clients and gained
more profit. This division give different channel such as promotion, advertisements, sponsorship,
and other essential tools. In order to attract large number of the customers and increase market
share, organisation apply various tools or techniques which are identify under this:
Portfolio management: It is identify as a science and art of making effective judgement
regarding policy and investment mix, asset distribution for institutions & individuals and
balancing uncertainty against business performance. This aspect is beneficial for the company
because it identifying the strengths, opportunities, threats and weakness in the selection of
growth vs, safety and international vs national. So it is important for them to increase their sales
and revenues in limited time period.
Portfolio management strategy: In order to create highest possible return within lowest
achievable risk, there are some approaches which are being applied for effective portfolio
management (Balmer and Wang, 2016). So it is essential and beneficial aspects of business
growth and development. There are mainly two elements of this which are determine under this:
Active portfolio management strategy: It is one of the best strategy which is apply by the
business manager in regards to generate more profit and kept their image in customers mind. It is
enforced by the managers and analysts advise who evaluate or analysis market for the existence
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of inability. Coca-Cola use this aspects with motive of improving their performance and
effectiveness in a systematic manner.
Passive portfolio management strategy: It is also beneficial and important part of the
company success and growth. With the help of this strategy business entity can increase their
market share and attract million clients towards beverages. In this company obtained maximum
return from the minimum cost investment which is broken for the long period (Kleppe and
Mossberg, 2015). This type of aspect also helpful for the business organisation to satisfy their
regular basis clients and gain more profit.
Brand Equity: It is derived from the name and goodwill acknowledgement that it has achieved
complete time, which interprets into maximum profit and sales volume margins versus
completing brand. One of the main motive of this is to evaluate brand value effectively. Brand
equity of company is proposed at $81.6 billion in 2013, which is maximum the closet beverage
brand on the list.
Brand equity strategies: There are mainly four types of strategies which are determine under
this:
Brand Awareness: Coca-Cola is one of the famous and popular brand which is accepted
by each and every person in all around the world. This company is present in different country
such as North Korea, Cuba and other locations. Portfolio of business product is 3500 brands
around the globe.
Perceived quality: Brand personality of Coca-Cola reflects their brand positioning in
effective manner. Many persons see company product is a part of regular life of customers. In the
organisation, there are large number of quality in beverages which attract million buyers and
increase business sales.
Brand Association: It is identify as a symbols and images of the brand which is
beneficial for the firm because it capture maximum market share (Uen and et. al., 2015). It is
associated on the different points such as advertisements, product quality, displays and other
essential channel.
Brand Loyalty: Coca-Cola has strong brand loyalty in all over the world. Company
change their products such as Coke in its cans, but clients are still trustable. Even though the
packaging and logo has modified over the period of time, buyers are still allegiant to the product
brand even now a day.
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Illustration 1: CBBE Model
(Source: CBBE Model of Brand equity, 2017)
It is very essential and important model of the company in order to identifying their brand equity.
With the hep of this technique's, business entity easily achieve long term growth and objectives
in market place. In this model different kinds of elements are includes which is valuable in order
to identifying competitors of the company and their relationship with customers (Cooper and et.
al., 2015).
Brand Hierarchy: In the organisation, there are different number of employees are work with
together. Main aim of all workforce is to achieving long term goals and objectives in limited
time period. There are different departments which plays vital role in increase business sales or
revenues. Two brand hierarchies of Coca-Cola: There are different brand but two are very
important which are determine under this:
Corporate Branding: It is identify as a exercise of using a business name as a beverage
brand name. It is an effort to utilise corporate brand equity in order to create trade name
recognition. Thee are several examples such as Hershey, IBM, Coca-Cola, Heinz etc.
Family Brand: Company provides different products for family in an effective manner.
There are large number of customers who seek out for certain products which can satisfy group
of people like friends, family and many others (Davcik and et. al., 2015). So this kind of
opportunity is availed by companies to attract customers. Coca-cola same track for innovating
products for family.
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LO 3
P4 Brands are managed collaboratively and in partnership
There are two famous brand is Pepsi and Coca-Cola, both have popular company in all
over the world. All those business entity are managed collaborative in international and national
level. These are identify as follows:
Brand extension: Coca-Cola is one of the famous and popular brand and have their history in
19th Century. This business is established by Colonel John Pemberton in year 1886. in year 1982
Coca-cola develops its prime brand expansion later about a century of beingness. Free version of
their flagship products is diet Coke is born sugar (Lin, 2015). In order to promote their
beverages, business organisation use slogans and tags line which covers “just for the product
taste of it” Another is Pepsi also very popular brand in all over the world. They produce different
types of products to their customers wit motive of attracting million customers. Their history also
very old which is beneficial for capturing maximum number of market share.
Leverages: In order to determine the leveragability of beverage, business entity select 9 various
goods paints to condom and car to shampoo as well as asked the buyers regrading products
variety (Högström and et. al., 2015). So it is identify as Coca-Cola is one of the main leveragible
products which is adopted by Pepsi.
(Source: Brand leveragability of company, 2017)
Approach and strategies of brand extension: It is also identifying brand value and equity by
introduction of complementary a logical innovative categories. So it is very important for the
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Illustration 2: Brand leveragability of company
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company because it maximise awareness of the beverages. There are different approaches and
strategies of extending brand in internation and national level.
In this Coca- Cola use Ansoff's Growth share matrix because it is useful for them to
identifying needs and taste of the international and domestic clients (Rauschnabel and et. al.,
2016). It is also very important part of the organisation to determine latest trend of market place
in order to expanding business brand internationally and nationally. These strategies includes
mainly four parts which are identify as follows:
(Source: Ansoff's Growth share matrix of Coca-Cola, 2017)
Market Penetration: One of the main objective of applying this is to expanding brand
internationally and nationally. In the company enlarge sales of present beverage in existing place
of business. This strategy considers an try to maximise share in market within existing firm,
either by producing various products to implanted clients and analysing innovative buyers within
market. In this business adopt different elements of communication channel and marketing mix
such as promotion, advertisement and other (Brooks and Anumudu, 2016).
Product development: It is identify as an introduction of innovative product in market
place. So it is very essential part of the company because in which they can easily meet their
customers basic needs & wants and outperform challengers. In order to expand brand, Coca-Cola
use product development strategy, it was establish in 1985 by Cherry Coke. Later on those
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Illustration 3: Ansoff's Growth share matrix
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experiment, business has started to establishing other flavoured beverages including vanilla,
lemon, lime, being capable to attain goals of company and beat the challengers' competition.
Market development: It is very important part of the company development and success.
In this they should find better place and new customers for a present products. Coca-Cola is a
classical example which was established in 2005 by Coke Zero. It is not known as innovative
product because its aspects is same to Diet Coke, it is mainly used by females.
Diversification: It involves diversification of all products in innovative category .
Company spend $4.1 billion in order to get Glaceau like its healthy product brand i.e.
Vitaminwater. It is important part of the business success and growth because all person needs to
buy flavoured products in different ways (Urde, 2016). Unrelated diversification is considers the
feature of incoming with an innovative products in fresh marketplace that has less essential with
the business existing goods.
Brand collaboration and partnership: Coca-Cola is a multinational company that collaborate
with Kith during the August with an inside family and friend weekend. Each and every person
will be furnished in the beverage and acquire to experience or occurrences it in fixing it was
framed for. Collaboration of Norman Rockwell with Andy Warhol make the Coca Cola a part of
pop culture and made this favourite for artists. Holod says that they like to partner with those
people who have a love and passion for Coca Cola , who make this a part of their daily lives and
like it very much.
LO 4
P5 Various kind of techniques and tools for evaluating and managing brand value
Brand value is an essential and important part of the business success, development and
growth. It is beneficial for them In order to attracting large number of the clients towards
beverages and other flavoured products. In order to managing as well as measuring brand
business use certain process which are identify as follows:
1. Clarify brand value perspectives: It is identify as a first phase which is important for the
firm to clarify their brand value (Liu and et. al., 2015). It is classified into two ways such
as hard line and softer perspective. Both are valuable for the clients because in this they
look out pricing strategies. So in this Coca-Cola set reasonable price for their products
which is good for company growth because it increase sales and revenue of firm.
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2. Determine Brand value research goals: In this phase, business organisation can identify
their goals and objectives of research. It is help the enterprise in order to achieve long
term and desire targets in an effective manner. Coca-Cola is very good and famous brand
which is significant for the entity to grow quickly.
3. Understand clients attitudes towards brand: In this step, company conduct investigation
with purpose of identifying customers attitudes, preferences regarding business brand. In
the market place company is highly popular with its beverages flavour and taste (Dessart
and et. al., 2015). It is determine the customers needs and demands about the business
products.
4. Identify Brand value components to evaluate: In order to advertise business products
and services company use different kinds of communication channels such as
sponsorship, promotion, sponsorship, public relation, effective packaging and other
essential ways. It is important elements for attracting million number of buyers and
capturing large amount of market share.
5. Evaluate perceived brand differentiation: In this phase, company should identify the
buyers perception and experience regarding brand value. In during the survey, business
entity can easily evaluate their product value in competitive marketplace. In the business
environment, there are large number of competitors of the Coca-Cola such as Pepsi,
Mountain, DR Pepper, Parle Argo and other who are product same products in existing
place.
6. Take quantitative and qualitative methods to collecting brand value data: Both
approaches are essential for the company in order to identify their customers needs and
wants (Vigneron and Johnson, 2017). In this phase, business organisation conduct survey
and analysis value of their brand in effective manner.
Brand equity audit and tracking techniques: Coca-Cola is a famous brand in all over the world.
In order to measure strengths, weakness, opportunities and threats, organisation use SWOT
analysis which are determine under this:
Strengths Weakness
The best global brand in all over the
world in forms of value which is
$77,839 billion.
Negative publicity of beverages
Product portfolio of the business
organisation is undiversified.
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Largest market share in beverages all
over the world.
Strong advertising, promoting and
marketing
One of the main strength of coca-cola is
strong loyalty of clients
Lack of experience and knowledge in
national place
Threats Opportunities
Indirect challengers of the Coca-cola
One of the main threats of Coca-cola is
water
Legal issue and legislation of
government.
Diversification in the food and health
business.
Developing in nations level.
Packaged drinking water
improvement in supply chain
Approaches to valuing brand: There are certain approaches and methods for valuing brand
which are identify under this:
Cost-based brand valuation: It is identify the cost of the products which is important for the
company success and development. It is using by the different person for valuing the brand
liabilities and assets (Vigneron and Johnson, 2017). This concept analysing the costs consider
historical promotion expenditures, advertising, registration and licensing. It is useful for the
business organisation to achieve long term goals and objectives in limited time period.
Market-based Brand valuation: In this approach company can evaluate their brand according to
the market classification. It is very essential part of the business development and growth in
order to attract different number of clients. In this company can identify their competitors and
apply best strategies in order to beat quickly.
Income Approach brand valuation: In this business entity mainly focuses on the buyers income
level (Abrahams, 2016). In this company should to set affordable and reasonable price of the
products. Brand equity is important which is using this approach to present their value of cash-
flows, income, cost saving.
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CONCLUSION
As per the above mentioned report, it can be concluded that brand management is very
essential part of the business success and development. It is define the business image and
goodwill in national and international market place. In order to attract large number of the
clients, business entity use different types of tools and techniques which is beneficial in this.
Social media, advertisement and public relation is very essential for attracting million buyers
about business products and services. Portfolio management strategy, Equity, and Hierarchy are
important techniques which help them in determining value and equity of the company in
marketplace. Ansoff's Growth share matrix is valuable and beneficial part of expanding brand in
international and national level. It is essential for company to capture different number of market
share and increase their sales or revenues effectively. Various approaches of valuing brand are as
follows: market, cost and income-based etc. All these are important and valuable for achieving
higher profitability and productivity of the company.
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REFERENCES
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Online
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through:<https://www.mindtools.com/pages/article/keller-brand-equity-model.htm>.
Ansoff's Growth share matrix of Coca-Cola. 2017. [Online]. Available
through:<https://themarketingagenda.com/2015/03/28/coca-cola-ansoff-matrix/>.
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Brand leveragability of company. 2017. [Online]. Available
through:<https://www.scribd.com/doc/36489650/Airtel-Brand-Equity-Measurement>.
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