A Comprehensive Report on Brand Management: Volkswagen & Hyundai

This report provides a comprehensive overview of brand management, focusing on key concepts such as brand meaning, importance, equity, and the differences between a brand and a product. It explores essential elements of a strong brand, including target audience, brand promise, perception, values, voice, and positioning. The report delves into managing and developing a brand over time, addressing challenges like treating brands as assets, creating subcategories, and building digital strategies. It examines various brand management models, including the CBBE model, and analyzes brand portfolio strategies. The report also covers brand reinforcement, revitalization, collaboration, and partnership techniques. Furthermore, it discusses brand measurement techniques, including equity audits, tracking processes, and valuation approaches, concluding with a focus on measuring and managing the brand effectively. The report uses Volkswagen and Hyundai as case studies throughout the analysis.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
Meaning of a brand.....................................................................................................................1
Importance of branding as a marketing tool...............................................................................1
Brand equity................................................................................................................................2
Difference between brand and product.......................................................................................2
Key elements of a strong brand...................................................................................................3
How to manage and develop a brand over time..........................................................................4
Challenges in developing a brand...............................................................................................5
M1 Various models, concepts and theories of brand management.............................................5
M2 Appropriate example............................................................................................................5
Section 2...........................................................................................................................................5
The brand's portfolio strategy......................................................................................................5
Management hierarchy................................................................................................................6
Management of the Brand equity using CBBE model................................................................6
M3 Critical analysis....................................................................................................................7
Section 3...........................................................................................................................................8
Extension approaches and strategies...........................................................................................8
Brand reinforcement and revitalisation.......................................................................................8
Collaboration and Partnership.....................................................................................................9
M4 Various techniques to leverage and extend brands...............................................................9
Section 4.........................................................................................................................................10
Brand measurement techniques.................................................................................................10
Brand equity audit and tracking process...................................................................................10
Various approaches of brand valuing........................................................................................11
M5 Techniques to measure and mange the brand.....................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

CBBE Model: How To Build A Strong Brand, 2017. [Online]. Available through
<https://brandandbutter.wordpress.com/2010/01/26/cbbe-model-how-to-build-a-strong-
brand/>......................................................................................................................................15

INTRODUCTION
A brand is the most important and essential part of business. Sometimes, brand aids to
support businesses to have good market share helps them to achieve the requirements of
organisation. Thus, the management of a brand is essential for gaining a better growth and
management of company (Rosenbaum-Elliott, Percy and Pervan, 2015). For the report,
Volkswagen and Hyundai are taken as the organisations of context. The report will cover the
details of the brand, its importance as the marketing tool and brand equity. Various elements of a
strong brand are taken into consideration along with the process of management and
development of brands and various challenges in development of brand are discussed as well.
Other than this, brand portfolio and various models as well as techniques will be discussed
(Okonkwo-Pézard, 2017).
SECTION 1
Meaning of a brand
A brand is unique name, term, design, term, symbol or a product of particular business or
an organisation that is well popular among the customers and helps company in proper growth of
various measurements in the business. It helps the company to make its services and products
different from that of rival companies and aids the organisation to meet the needs and demands
of its consumers in a very significant manner. The brand can be considered as criteria of high
quality of product or service that are taken into consideration by the company to meet market
standards (Vigneron and Johnson, 2017).
The branding is used to gain a better share of businesses, marketing and advertising to
promote products and expand the business operations. Besides this, the brand will help the
customers to distinguish the product or service of business in market. It helps them to identify
and meet the requirement criteria of customers in a better way and provide company with a
corporate identity in market as compared to its rivals giving it a competitive advantage
(Kernstock, Brexendorf and Powell, 2017).
Importance of branding as a marketing tool
The effective branding is an important tool as it supports the company to meet the
requirements of the consumers, identify their needs and to come up with better products or
services. Besides this, the approach of branding helps the company to promote its products and
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services to its customers and meet the market demands in a better and appropriate manner. The
branding helps the company or the business to directly connect with its customers and helps the
business organisation to build a better brand trueness motivating them to buy the products or the
service of the establishment again and again (Ertimur and Coskuner-Balli, 2015).
Thus, in this way, it assistance the company to get the customer retention and meet its
targeted goals in a better way. It helps the organization to market its products and services in the
market as a better trade name as compared to its rivers or competitors, giving it a better brand
market advantage. This will aid the business to grow better and develop as a strong brand in
market. Apart from this, it will support the business firm to develop as a quality provider by
giving the better idea of the operations, improving quality of product or services and giving the
customers a better satisfaction level.
Brand equity
The brand equity is the valuation of the premium services or the products that are
provided by the company to its customers. It can be either the tangible or the intangible values or
the assets that are owned by the company in return of its services (Malik, 2015). The brand
equity is dependent on the mind-set or the perception by the consumers which helps the company
to develop a stronger brand image in market. If brand equity of product or brand as a whole is
good, the operations and the financial aspects of the company is been benefited.
On the other hand, if the brand equity of the company or the brand is in negative, it has to
make out the suitable changes in the operations that helps the company to regain its productivity
and profitability, helping the company to regain its market position. Besides this, it will help the
business organisation to understand its objectives and plan a better market or promotional
strategies to increase its market share and provide the customers with a better satisfaction level.
For example, the better brand equity will help in the effective rise in the sales of Hyundai and
Volkswagen.
Difference between brand and product
Brand Product
 It is the unique identification that is
been given to business organisation.
 It is the finished item that is
manufactured by the organisation.
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 It is based on the perception and loyalty
of the customers.
 The products are planned, developed
and promoted by the company.
 This helps the customers to identify
goods and service from the rival
companies (Kelley, Sheehan and
Jugenheimer, 2015).
 It is the finished item or good that is
ready to sale in the market.
 It can't be replaced from the market.  It can be replaced by any alternative or
substitute product launched by the firm.
 It offers effective valuation to company
as well as to the customers.
 It helps in performing a specific tasks
that are been undertaken by the users.
 Brand is wanted and is been seek by the
brand conscience and loyal customers
in the market.
 The product is the item or service that is
been provided to customers by the
business firm in order to fulfil their
needs or demands (Du Preez and
Bendixen, 2015).
 It is developed by the mind-set and
satisfaction level of the customers.
 It is dependent on the requirements and
what is been consumed and used by the
users.
Key elements of a strong brand
The strong brand value has the following key elements that supports the business firm to
gain a stronger market share and achieve the requirements of company and customers in a better
way. Some major key elements of the strong brand are as follows:
 Target Audience: It helps the cited firm to get knowledge of various requirements of its
customers for the products or services. It will support the business organisation or the
brand to identify its potential consumers and will help the company to develop and
manufacture the products or the services in a better way (Solomon and et.al., 2014).
 Brand promise: It is the commitment that a brand make with its customers to provide
the better and appropriate service that helps the company to develop a better product or
the service and motivates them to develop a better product or the service.
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 Brand Perception: It is the idea or the mindset that the consumers or the purchasers
develop towards the product or the services of a company or a brand. It aids to business
organisation to develop a strong market strategy and meet requirements and demands of
the customers to give them a better satisfaction level (Renton and et.al., 2015).
 Brand values: It is the valuation of the product or the services that are been provided by
the company or the brand to its customers. It helps the company in a better decision
making process and adopt the core values to improve the services and product quality.
 Brand Voice: It is the strategy that helps the company to involve and engage the
customers to get a better idea of their changing needs and the requirements of the
company.
 Brand positioning: It is the better placing of the brand in the market to improve its sales
and meet the requirements of the customers to gain a sustainability (Kapferer, 2017).
Difference between stronger brand and weak brand:
Strong brand Weak brand
 They have strong marketing strategy.  They lack strong marketing plan.
 They adopt changes easily.  They face difficulty in adopting
changes.
 They take into consideration various
innovative approaches.
 They are devoid of the ability to adopt
any sort of innovative measures.
 They can't be replaced from market.  They can be replaced by any alternative
product.
How to manage and develop a brand over time
The brand management is the most important and essential part of the various operations
that helps the organisation to achieve needs and demands of the consumers of the customers and
carry out its operations. Some major principles that helps in the better brand management is:
 Brand definition: It is the suitable definition of the brand over the time and taking the
suitable measure to identify the organisational needs of business.
 Consistency in quality: The brand must be consistent in providing of the quality
product or services that helps the company to gain a better customer loyalty.
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 Better customer connection: This helps the customer to gain a better connectivity with
the company or the brand and meet the requirements in a better way.
 Empowering the brand: This includes the various measure or the strategies that helps
the company to develop as a strong brand and gain a better market share (Morgan and
Pritchard, 2014).
 Adopt better innovative measures: Innovation is key to success. The adoption of the
better innovative approaches helps the company to gain a better profitability and
productivity.
 Keeping a check on market: The company or the organisation will keep a very close
eye on the ongoing market trends and meet the requirements of the customers in a better
way.
Besides this, the approach of brand reinforcement and brand revitalisation. Brand
reinforcement approach is been used when the company is entering into the newer market sector
or dealing with new target audience. This is been done by the means of extensive advertisement.
On the other hand, brand revitalisation approach is been used when the brand attains the maturity
and needed to be relaunched. It is been done by using the effective innovative approaches.
Challenges in developing a brand.
While developing, the brand will face many challenges that will affect the operations of
the company. Some major challenges of the brand development are:
 Treating Brand as assets: Many times, the market pressure leads to the development of
the company to consider a brand or the brand image as its asset that can negatively affect
the overall operations of the company (Balmer and Wang, 2016).
 Creating subcategories: This may lead to the confusion in the mindset of the customers,
forcing them to drop the idea of purchasing a product or service of the brand of the
company.
 Building digital strategy: As with the advancement of time, the brand is liable to adopt
the suitable measures of adopt and implement the suitable digital strategy. But its
improper implementation may lead to the failure of the operations of the company.
M1 Various models, concepts and theories of brand management
Different models and the theories are been taken into the consideration that helps the
company to develop as a strong and sustainable brand. Various approaches like adopting of the
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innovative approach and models like Keller's brand equity model helps in gaining the better idea
of the various efforts that are been taken for the better development and management of a
business as a strong brand (Du Preez, Bendixen and Abratt, 2017).
M2 Appropriate example
For example, Volkswagen and Hyundai will be taking appropriate measure to implement
various innovative measures to improve the profitability. Other than this, the better market
presence will help them to gain a good customer base and brand loyalty. The Keller's brand
equity model will help both the brands to adopt suitable measures to increase the brand
management.
Section 2
The brand's portfolio strategy
The Brand Portfolio is the suitable approach that supports the company to achieve the
needs and demands of consumers in effective way. When a business organisation consists of
many brands under its name like Volkswagen, it creates a portfolio which helps the company to
identify and assess all the entities that helps the company to consider then under one umbrella
(DiMartino and Jessen, 2016). The constituent brands may have separate identity and operations,
but is considered by the company as an individual unit or component. It has the following
advantages that helps in the better development of the strong brand by giving well defined brand
roles. It helps the brand to effectively meet the migration or moving of brand, acquiring new
customers and reinforce or revitalize the existing, mature brand providing it a better marketing
support. For example, the better brand portfolio of both the firms will help in achieving the more
and more satisfaction level to its customers and provide them with a great choice to choose in the
auto mobiles.
This helps the company or the business to develop a well defined roles or the operations
of its constituent brands. For example, in case of Hyundai, the brand portfolio helps the company
to keep a check on its Sedan, commercial and sports cars. While in case of Volkswagen, the
approach helps the company to maintain the various brands like Audi, Bentley and Ducati, which
works in different market segments, as an individual unit. Besides this, it also helps in better
development of the business strategies for growth and development (Bravo and et.al., 2017).
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Management hierarchy
The management of the brand is very essential and vital for its suitable development. In
an organisation like Volkswagen or Hyundai, the management is been carried out in the better
manner to improve the productivity and gain a better customer satisfaction level. Various types
of management hierarchies are been followed in the company. Some major hierarchies are as
follows:
 Corporate management hierarchy: This structure of management will include the
various sort of officers like CEO, CTO etc along with the leaders, managers, supervisors
and the employee's. This helps the company like Volkswagen or Hyundai to carry out
the management of its operations in a better way.
 Umbrella management hierarchy: This approach is used by the company like
Volkswagen and Hyundai to manage its wide spread organisation in significant manner.
This will also support the organisation to handle its various operations or brand under
one unit or entity and attain a better market share and customer trust (Dinnie, 2015).
 Corporate umbrella Family: It is the branding concept that consists of multiple
products and services but is named under one brand name, to increase its significance
and effective rise in sales and operations.
 Endorsements: The effective approach of endorsements can be used by brands like
Hyundai and Volkswagen to develop a better brand perception in the minds of the people
and effectively increase the sales of the company.
Management of Brand equity using CBBE model
The brand equity is the most important and essential part for the better management of
the customer relationship by the company. It will help both the cited firms to develop as a better
or strong brand. The management of the brand equity of a company can be done using the
Keller's Brand equity model, also known as customer based brand equity model (CBBE) model.
It consists of the following concepts:
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 Salience: It helps to increase the brand awareness and ensures that the customers can
relate themselves with the product or the services of the brand. It will help the company
to get a better brand recognition and placing it in the customer's mindset in a better way.
Both Volkswagen and Hyundai will work for the better brand awareness and brand
recognition.
 Performance: It helps the company to have an idea of the various tangible and non
tangible factors that affect the operations and the effective management of the brand.
Both the firms will look after the improvement in their performances.
 Imagery: It involves the various factors like user profile, personality, values, history
heritage etc to create an image of the association of the product or the service of the
brand for the customer (Choo and James, 2016). Both, Volkswagen and Hyundai will
work for the development of the good brand image among the customers.
 Judgement: It is based on the response of the customer towards the imagery developed
by the company or the brand. It is widely based on the personal opinions.
 Feeling: It includes the various feelings like warmth, fun, excitement security self respect
etc. in association with brand. Both brands will use their association to build a better
customer's trust level.
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Illustration 1: CBBE model
Source: CBBE Model: How To Build A Strong Brand, 2017

 Resonance: It is the stage where the customer has high level of satisfaction level, loyalty
towards the brand and leads to the employee engagement with the brand. Both business
firms will adopt different to provide better customer satisfaction level.
M3 Critical analysis
The approach of portfolio management will help the cited brands or big organisations to
manage its various operation or brand under one unit. This helps the company to take into the
consideration the proper and relevant measures that helps the organisation to fulfil customer's
needs and requirements. The brand hierarchies will help in better management of the brand and
the CBBE model will help the better management of the brand equity (Lim, Chae and Jeon,
2014). The approaches like corporate umbrella family and endorsements will help in the
significant rise in the productivity and profitability of both the firms.
Section 3
Extension approaches and strategies
The brand extension approaches has been taken into the practice by a stronger brand in
order to achieve better productivity and profitability by both, Volkswagen and Hyundai. This
will help the company to attain a better market share and look after the needs and demands by
the customers. Some major extension approaches are:
 Line extension: This supports the business firm to meet the requirements of the
consumers to gain a sustainable share in market by expanding its operations. The
company enters into new market segment related to its current operations. For example,
Volkswagen and Hyundai both can enter into hybrid or electronic car segment to cater
more customers (Högström, Gustafsson and Tronvoll, 2015). Other than this, the
approach of line extension by using the electronic and hybrid cars segment will help in
the better fulfilment of the CSR by both the brands.
 Category extension: It includes the entering the market segment that affects the overall
operations of the company by using the items, other than the current production by both
the cited brands. For instance, Volkswagen and Hyundai, both manufactures the spare
parts along with the auto mobiles to improve their operation's. Apart from this, the
category extension will provide the greater option to the clients or the customers to have
more option in regard to the services, provided by the company.
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Brand reinforcement and revitalisation
The brand revitalisation is the approach or the market strategy that will help both the
cited brand to regain the market position and productivity after reaching the maturity level in the
market, when the sales and profit decreases. It will support companies to improve the Position in
market and gain a better brand equity that helps the company to gain a better share of the
customer satisfaction. It helps the company to meet the challenges and the market competition. It
will also lead the company to meet its customer's requirement by adopting the latest technologies
and trends and developing a better product or service (Dinnie, 2015).
The Brand reinforcement ids the approach to keep the brand performing among the
potential customers along with the existing, loyal customers of the company or brand. It will help
the company to maintain its quality and consistency by adopting various sort of measures that
will help business organisation to meet the requirements of the company. This approach or
market strategies are adopted to improve the brand awareness as well as the brand image among
the customers of both the cited brands. It uses various approaches like advertising, event
sponsorship or promoting the new product or services to attract the customers.
Collaboration and Partnership
The approach of collaboration or the partnership is the major measure that is been taken
by the company to increase its operational capacity and the productivity. This is a process in
which two or more companies or brand come together to work or merge in, in order to develop a
better product or service for the customers. It is been taken into consideration when the company
faces the significant loss in the productivity and profitability (Bravo and et.al., 2017). This helps
the brands to improve the quality of the services and fulfil the requirements of the customers.
The partnership will not only help the company to gain a stability or a sustainability in the
market, but also affects the overall operations of the company by implementing the latest
measures of productivity and profitability including technical advancements, better marketing
approaches and adoption of better work processes.
For example, BMW, a subsidiary of Volkswagen, known for the luxurious car segment,
has collaborated with luxury brand, Louis Vuitton to develop the accessories specially for its
luxury car segment. It helped the company to attract more customers and gain a better market
position. Similarly, Hyundai has also collaborated with an electric battery firm to develop hybrid
cars fort its customers. In the partnership or collaboration, the profit or the resources are been
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shared between the partners to achieve good market position (Högström, Gustafsson and
Tronvoll, 2015). This helps the company to meet the operational necessities of the organisation
or the brand and meet the customers demand in a better way. This helps the customers to get a
better products and services and company to have a sustainable market presence, increasing its
brand value.
M4 Various techniques to leverage and extend brands
Different techniques like line or category extension can be used for the better
development of the brand on wider scale. Apart from this, the method of brand reinforcement
and revitalisation will also help the cited brands to gain sustainable productivity and profitability.
Besides this, the approaches like collaboration and partnership will help the company to meet the
full potentiality of the company, helping it to develop as a stronger brand in the market. Such
techniques of partnership and collaboration will effectively help in increase of brand equity and
profitability.
Section 4
Brand measurement techniques
The Brand measurement is the approach to measure or identify the potentiality or
capacity of the particular brand, in order to gain a better knowledge of the changes, that are been
required by the company's or the brands to sustain in the market in brand and out brand
management. It includes the various techniques or the approaches like:
 Industrial analysis: It helps the company or brand like Volkswagen and Hyundai, to find
its market position in order to have better performance. This will lead the brands to take
into consideration the better operations and measures in order to have improved the
return of investments (Morgan and Pritchard, 2014).
 Strategic planning: This will help the cited brands to analyse their strength and
weaknesses that will help the organisation to adopt different measures to increase the
efficiency and develop a better share of market. It will not only help the company to
identify the needs and demands by customers but also achieve better market position.
 Advertising: It will support company to promote its products and services to the
customers in a very effective way.
 Public relationship: It helps the cited brands to get a better relationship with its
customers to get the idea of their needs and requirements.
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Brand equity audit and tracking process
The brand auditing is the detailed analysis of the overall performances of the brand and
help them to track down their growth and achievement of goals. Beside determining the strength
and weaknesses, it also helps to identify the customer expectations from the brand and get an
idea of its market position (Lim, Chae and Jeon, 2014). It is done by the following ways:
 Creating a framework: It helps the company to fulfil its operations and objectives by
developing a strategic framework that will help the company to build good market share.
 Questioning your customers: It includes the approach of taking the feedback from the
customers by the means of questionnaire or feedback form. This helps the company to
identify the needs of the customers in a very significant manner.
 Review web analysis and data from the social media: It will help the cited firms to
gain a better idea of the customer's mindset and popularity of their brand by analysing the
various websites and the social media platforms.
 Reviewing the sales data: The information gained from the sales departments of
Volkswagen and Hyundai will help them both to get an insight about the customer's
response towards the brand.
 Keeping a check on competition: This will include the adoption of various measures
that will help the company or the cited brands to adopt better measures to sustain in the
market and gain a competitive advantage over its rivals (Balmer and Wang, 2016).
 Taking action and analysing the result: This approach will include the adoption of
better measures that will help the company to gain a better brand value and equity.
Various approaches of brand valuing
Various approaches or methods, that are been taken into consideration are:
 Income based brand valuation: It is based on the adoption of the royalty, excess
earning, premiums from the brand and capitalisation that helps to create a positive and
better value of the cited brands. It helps the company to identify the potential customers.
It is deeply based on the purchasing capacity and the income of the buyers or the
customers.
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 Market based brand valuation: It involves creation of the value based on the price to
earning method or turnover of the company that helps in the better growth of the firm and
meet the requirements in a better way. This is deeply based on the different market
conditions and affect the sales of a brand.
 Cost based valuation: It involves the various operations like production cost or the
investments and the product replacement expenses by the brand to gain a better market
share and return of investments (Solomon And et.al., 2014). The cost valuation is based
on the prices or the expenses that is been placed by the brand over a service or the
product.
M5 Techniques to measure and mange the brand.
Various techniques like in brand and out brand measurement like industrial analysis,
strategic analysis or advertisement is been taken into consideration by the company for better
management of brands. Apart from this, various brand valuation based on the cost and income of
the customers is been done to identify the better market position. This approaches of effective
brand valuing will help in the significant rise in the brand value and satisfaction level of
customers.
CONCLUSION
The report will cover the details of the brand, its importance as the marketing tool and
brand equity. Various elements of a strong brand are been taken into consideration along with
the various process of management and development of brands and various challenges That are
been faced in development of brand are discussed as well. Other than this, brand portfolio and
various models as well as techniques will be discussed. Along with the brand measurement and
audit techniques to get a better idea of the needs and demands of the customers of Volkswagen
and Hyundai.
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