Coca-Cola's Brand Management: Portfolio, Hierarchy & Brand Equity

This report provides a comprehensive analysis of Coca-Cola's brand management strategies, focusing on the importance of branding as a marketing tool and its evolution in business practice. It explores key components of a successful brand strategy for building and managing brand equity, evaluat...Read More

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
TASK1.............................................................................................................................................3
P1 Importance of branding as a marketing tool and why and how it has emerged in business
practice........................................................................................................................................3
P2 Key components of a successful brand strategy for building and managing brand equity....5
M1 Evaluate how brands are managed successfully over the time using theories and models . 7
M2 Apply valid example in context of organisation...................................................................7
TASK2 ............................................................................................................................................8
P3 Different strategies of portfolio management, brand hierarchy and brand equity
management ...............................................................................................................................8
M3 Critically analyse portfolio management, brand hierarchies and brand equity using
appropriate theories, models and frameworks..........................................................................10
TASK3 ..........................................................................................................................................10
P4 How brands are managed collaboratively and in partnership both at a domestic and global
level...........................................................................................................................................10
M4 Critically evaluate the use of different techniques used to leverage and extend brands....12
TASK4 ..........................................................................................................................................12
P5 Different types of techniques for measuring and managing brand value............................12
M5 Critically evaluate application of techniques for measuring and managing brand value in
relation to developing a strong and enduring brand..................................................................15
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16
books and journals.....................................................................................................................16

INTRODUCTION
Brand management can be define as function which is performed by organization in
relation to mange its image in front of customers so that it can attract customer and training them
for longer period of this. This concept is directly linked to profitability of firm and achieving its
business objectives. This report is based on study of Coca-cola. It is American multinational
organisation which is dealing in drinks and beverages. Organisation is selling its product at
global level where it cover market of UK, India and various other. In this report ,there is
discussion about Importance of branding as a marketing tool and there used. Along with this,
there is also discussion about Different strategies of portfolio management, brand hierarchy and
brand equity management.
MAIN BODY
TASK1
P1 Importance of branding as a marketing tool and why and how it has emerged in business
practice
Branding is described as an effective business practice which is beneficial in developing
specific image of goods. This is valuable in defining clear image of the Coca Cola products from
their competitors. The major objective of branding is related with analysing differences in quality
of product which is important aspect in achieving valuable clients for long duration. Basically it
is useful in defining customer taste and preferences towards the products which are offered by
firm and determining their logo at the market areas. With the help of this factor consumer can
easily identify the valuable goods for, this helps firm in gaining satisfied customers in most
efficient manner (Yanenko, 2016).
Along with this is valuable factor for business to establish their brand image among their
potential clients so they can easily grab market shares by competing from the rivalry firm. It is
reflected as the significant business activity for management of product portfolio this helps in
achieving competitive gains at market place The sales volume and profitability ratio can also be
enhanced by effective brand image in desired time duration.
The main aim of branding is linked with establishing differentiation presence that result
in attracting large number of client towards their product. It is defined as a market strategy which
is mainly used by firm to make difference in their product portfolio range for earning good

reputation at market place. In this aspect there is importance of branding as an important tool for
marketing evaluated below as: Branding enhances recognition: The most important component for a firm is brand
logo which helps in attracting large number of customers towards their product so they
can enhance overall sales and profitability ratios of firm. In context of Coca Cola, they
are executing their own branding approach for maximising profitability ratios. Under this
factor they implement new product innovation for enhancing their overall market growth.
This consist of basic diet coke, classic diet and so on. For making customers purchase
goods they promotional activity are carried out in most efficient manner. This is an
important factor for enhancing large market share.
 Brands provide a stable asset: In business organisation there are changes taking place
which helps in minimising sales ratio but if firm focuses on development of strong brand
image at market place then they can easily implement changes in order to achieve
positive outcomes. In this context Coca Cola is serving products to their potential
customers from the 19th century which is extended according to their competitors. The
strong brand image helps in satisfying their potential clients by offering treasured
services to their targeted clients.
 Branding generate new customers: Branding generate new customers because the
strong brand image effects the success of organisation and helps the organisation to
capture large market share by enhancing the sell and generating the new customers,
results in high profitability, and coco-cola attract there customer by offering different and
interesting services include changes in the ingredient of product for example coco-cola
recently lunched new product with zero sugar which helps in maximising sales up to 35%
(Von Walter and Kremmel, 2016).
 Brand sets expectations: In current competitive market customer wants services
according to their expectations, by competing the nutritional values and bad effects of
product. so coco-cola lunched their new product on the basis of customer demand that is
less calorie, low sugar product in prospect to customers. Coco-cola always try to provide
qualitative services on the basis of customer needs.

Along with this factor there are various changes in which customers are mostly confused
about the goods offered by firm and its brand. Product & Brand both are different terminology
and the difference among both the factor is evaluated below as:
Brand Product
Brand is distinctive terminology which defines
nature of product at market place.
Products are basically copyrights within
industry with the objective of selling goods.
Brand is designed by taste & preference factor
that cannot be copied by anyone else.
The products can be easily copied by
competitors of other firm.
Brand is different terminology which helps in
building customer perception.
Products are both tangible & intangible by
nature.
Thus it can be said that branding is the key factor which helps in achieving growth &
success for business. It helps in establishing strong connection with their valuable clients thus
gaining their trust towards product offered. This results in enhancing profitability index at market
area. With the support of this factor firm can achieve financial gains in order to achieve success
in their operations at global scale.
P2 Key components of a successful brand strategy for building and managing brand equity
Brand equity referred to brand value which is estimated by the perception and experience
of customers at the market area. This is defined as positive thinking of a person towards the
particular brand which results in development of strong brand equity at the market area. On the
other hand, if the products are not delivered to customers on time then this may result in
development of negative brand image that minimises image of firm in the market area
(Veloutsou and Guzman, 2017). Thus this is most vital aspect for firm operating at multinational
scale to design innovative goods for capturing attention of client, this results in development of
strong brand equity. In relation of Coca Cola firm can gain customer experience by establishing
strong brand equity at market place.
Positive brand equity has value:
 The high brand equity maximises cost of the products offered by firm at the market area.
 The concept of bran equity results in transformation of product line extension which
results in ensuring highest returns in systematic and planned ways.

 High brand equity results in boosting higher market share as compared with their rivalry
firm.
Along with this there are various elements which helps in establishing strong brand
equity at the market are described as:

Brand awareness:
This is the most vital factor related with branding in order to attract potential buyers who
will use goods & services which are offered by firm. In relation to Coca Cola they are famous
brand selling their goods at different location across the globe. This factor states that self-belief
of client helps in gaining competitive gains at market area thus establishing brand image in mind
of clients (Urde, 2016).
Perceived quality:
It reflects the taste factor about the quality products offered to clients for fulfilling their
basic need\. It is linked with opinion of client towards the particular product which was offered
by firm by the market place. At the market place large number of people are using products
which are offered by selected firm. This results on purchasing power of customers which
develops strong brand image at market place.
Brand association:
Brand association is defined as sign, symbol of the brand which helps in establishing
effective image in mind set of clients. This consist of various aspects such as price, quality,
public relation which results in development of brand image towards the valuable products and
services.
Brand loyalty:
Coca-Cola has achieved loyal customers which results in achieving success at market
area. This factor states that firm has changes their product design and logo for gaining customer
attention. In the present time there are various challenges which are faced by selected firm for
managing their brand name such as Globalization and new operating marketing having their
operations in the similar line (Ramírez, Veloutsou and Morgan-Thomas, 2019). Some of the
challenge are evaluated below as:
Building brand internally:
If there is no manpower, then it becomes difficult for firm to develop integrated
marketing channel as employees can effectively analyse the set vision statement so work can be
executed accordingly. This helps in gaining competitive advantage for firm.
 Emerging market performance:

Coco-cola always try to be superior and powerful in developing market where the market
competition is very high. Pepsi Co is a big competitor of coco-cola, it always tries to evaluate
their product in comparison to the other competitor, in current market there is tuff competition so
it becomes difficult to maintain performance as new arrivals with in the developing market.
Rather than this new company's and competitor tries to develop new production process and
techniques so that they can minimise the production cost and help the company to make more
customer by selling the low price product (Powell, 2016).
Health and wellness trends:
Coco-cola is providing different product range, concerning the health and wellness by
developing and offering the quality products and services to their buyers for example coco-cola
is offering product with less sugar and high nutritional value that is juices, and some other
beverages. For developing the economy and profit, of the government at market place, UK
government tries to regulate all the health and wellness trend by every company and
organisation.
M1 Evaluate how brands are managed successfully over the time using theories and models
It can be evaluated from above monetized information that there are various function
which has to be performed by management in organisation and are used in managing success of
firm. This can be related to function of firm and are use to manage objectives. This evaluation
also states that some of these theory which covered under brand management helps organisation
in performing its function and using them to achieve business objectives.
M2 Apply valid example in context of organisation
In relation to Coca-Cola this can be seen that organisation is operating from long time in
business market where it is using product portfolio to attract customer and use its brand name in
current business environment. This can be seen from performance of organisation in current time
where organization is using its products which are useful in achieving better profitably.
TASK2
P3 Different strategies of portfolio management, brand hierarchy and brand equity management
Brand management can be define as process which is related to establishing bran d image
in market for building this in market place. This is helpful to organization in building
relationship with customer and managing product image in market. In order to enhance business

of product and services and managing function of organisation firm can use to manage there
brand in market by use of string brand management system. This is useful in managing function
and leads to increase in profitability of firm. There are number of function which promotes
image of organisation in brand management system and leads to higher productivity. It include
function which are tag line, logo, price, packaging and many more which help in managing band
system and image in front of customers (Piehler, 2018).
This is helpful to organisation in managing function and using these functions in
establishing good relation among different individuals. This is also helpful; in building customer
loyalty and managing program in successful way. This is also beneficial for firm in creating
awareness about products in market and using these products to manage brand equity in business
environment.
Brand Portfolio Strategy:
This is strategy which is related to organisational function which has to be perform by manager
in relation to achieve barding objectives. Under this organisation sidewise its products in sub
brands to manage different and septate identity of each product (Merrilees, 2016). In relation to
Coca-Cola, organisation use to define its products in different sub brands. These are Maaza,
Thumps Up and many more. Some of Brand Portfolio Strategy of organisation are:
 Driving Revenue and Profit Growth: In order to build image in market, organisation can
use this function as it is helpful in dividing its products and managing functions for
attracting customer. This directly impact on profitably of firm and manage brand.
 Investment in Brand and Business: For creating strong brand image and performing
function in market in organization to bring profitability. It is necessary for firm to
manage its function and use this system. This helps firm in investigating its its business
which bring good revenue growth and helps in performing function.
 More efficiency: Here, organisation is using function which helps in building good image
and improving standards.
Management hierarchy
Coca cola:
 Umbrella Brand: This is use by Coca cola in order to use single name and logo for
improving image of new products in market. Under this Diet Coke and Coca cola used.

 Products: Products are useful for organisation in managing its operations and using them
to perform function of sale. In content of coca cola organisation is using Sprite,
ThumsUp, Maaza and so on. This helps in creating better strategy an using this for
organisation benefits.
 Endorsed Sub Brands: This is also act as important function to coca coal under this it
can use to manage brand image by using image of existing products.
Pepsi Co:
 Umbrella Branding: under this function Pepsi considered product line in which it use to
sale it main products where organisation use 7up and may other products as sub brands.
This is helpful in attaining success at market.
 Products: Pepsi is using differentiated product line up which consist of Tropicans, Lay's
Chips, Mountain Dew soft drink and many more.
 Endorsed Brands: Under this, Pepsi use ton perform function which are related to
building image of firm and using these to achieve business objective .
Brand Equity:This can be define as an model which is use by organisation in order to
maintaining image of organisation in market by creating stability in brand management.
Consumer Based Brand Equity (CBBE model)
This model was given by professor Kevin Lane Keller where he focused on managing brand
equity for achieving brand objectives. Under this, he paid emphasis on customers perception and
feeling which helps in shaping customer experience and using this for brand management of
firm. This model is useful for organisation in order to achieve its objectives and manage
programs in successful manner (Majerova and et.al., 2020).
Applying CBBE Model
Step: 1 Brand Identity: Here organisation has to focused on managing separate identity
of firm which is related to suing function and managing these function ton achieve objectives of
branding in current market situation. This is important step in implementation of this function.
Step: 2 Brand Meaning: Here manager involved in branding system has to use function
which are helpful in managing brand meaning to customer and employees. This helps in
achieving brand goals and objectives in most effective manner (Lee, O’Cass, and Sok, 2017).

Step: 3 Brand Response: Here, manger has to use function which are helpful in
identification of function. Under this manage use feedback system which helps in identification
of brand impact on organisation.
Step: 4 Brand Resonance: The main function of this step is to build image of the
products and services as compare to competitors which leads in increasing the customers loyalty.
M3 Critically analyse portfolio management, brand hierarchies and brand equity using
appropriate theories, models and frameworks
This can be evaluated from above there are number of business strategies which are
related to performance of organization and are useful in creating portfolio management, brand
hierarchies and brand equity. Models such as CBBE Model is useful in managing function and
tools which can be used to manage success and using this to manage brand image. Managemnet
of hierarchies is also important function for organisation which is use in effective way by
manager of coca-cola.
TASK3
P4 How brands are managed collaboratively and in partnership both at a domestic and global
level
This useful system to organisation as it helps in firm In managing brand image of
business at global level as well as domestic level. This is useful for organisation in relation to
achieving its objectives and managing function in appropriate time. In relation to Coca-Cola and
Pepsi Co. where both organisation are using appropriate tools and techniques which helps in
improving all over performance and managing function for customer development.
Brand extensions:
To enhance brand equity, it is more important as well as popular strategy which is used
by the company in which they easily identify the new branded products to increase their
customers base which leads in attaining better results. The best example of brand extensions is
that the Coca-Cola sell their products by McDonald's in which both companies get positive
response of the customers. It is because that buyer are well know about the brand.
In context of improving function of business organisation to improve its brand image and equity
in market organization can use this function. This is useful to achieve objectives of managing
brand equity and leading in productive way. For instance, this can be seen from coca cola which

is collaboration with other brands in markets like McDonald's to provide there products together
(Lee and Watkins, 2016). This helps in serving customer with variety of products and using
effective product mix to serve better.
Coca-Cola collaborated with McDonald's fr managing performance of firm and using
product mix of other organisation to mange its own brand values in combination. in order to
enhance brand image and equity as well in front of larger customers. In context of this. It is also
evaluates that Coca-Cola sell their coke to McDonald's and they service with their burger service
in front of customers. Both companies maintain their strong relationship and offer their quality
products as per customers requirement in order to get their satisfaction.
In this context organisation can use Ansoff Matrix to identify there best suitable strategy
which can be use by organisation in order to meet its branding objectives. Market penetration: This strategy is linked to organisational performance where firm
use its function where is use existing product in existing market. Here organisation can
use promoting techniques and market research in exiting market to target new segments
in existing market (Kavaratzis and Hatch, 2019). Market development: This is related top development of new market by using existing
product of organisation. Under this function organisation can use to conduct and
appropriate market research which is helpful in achieving business objectives. In this
context, coca cola can use to expand its market to various other nations where it is not
operating in current time Burma is most impactful of organisation because it is easy for
organisation to sue this place because of easy rules (Grubor and Milovanov, 2017). Diversification: This acts as risky strategy for organisation because it include lunching
new product in new market. This is nor suitable of coca coal in current market situation
because it can impact on brand image of organisation and can leads to non achieving
business objectives.
 Product development: This is also useful for organisation in current market. Under this
strategies, organization can use new and innovative products which is helpful in
achieving business objectives and managing brand image. This is most impactful in
existing market of organization for building brand image. Under this, coca-cola can also
lunch new products which can help firm in building sound brand image and attracting
more customer.

M4 Critically evaluate the use of different techniques used to leverage and extend brands.
This can be valued that there are various tools and techniques which can be use by
organisation in relation to managing image of their brand and using this for leverage and extend
brand image. In this context most happing function which can be use by coco-cola is market
development strategies. This is because it help organisation is using new market segmentation by
conduction an appropriate research and using existing product to target new audience in market.
This will also produce new revenue in organisation which can be use for future expansion
programs and help in managing business cycle (Dunes and Pra, 2017).
TASK4
P5 Different types of techniques for measuring and managing brand value
There are a number of changes faced by companies in today's world. It therefore becomes
necessary for company's to make sure that they are innovating and continuously changing their
products in order to maintain consumers interests. This will help the company to retain in market
for a longer period of time (Du Preez, Bendixen and Abratt, 2017). For companies like Coca-cola
and Pepsi their brands are an important asset and this are bringing profits for both the companies.
It is necessary for companies to keep on measuring their brand values from time to time. In order
to make sure that they are running business successfully with the changing situations in external
environment.
Various factors due to which company require to measure their brand value are mentioned
below:
 Intangible sales
 Financial reports of the businesses
 Impairment
 For their security purposes
 In the process of various purchasing prices
Companies are required to find out the reason and also analyse the need for valuation.
Valuing different specific brand is not the part of overall brand value. When one company and its
brand is compared with other dealing in similar or substitute products are done in the ways
mentioned below:
Orienting: Strategies of Coca-cola and Pepsi Co. are:-

Coca-cola Pepsi Co
 Company is focusing on happiness.
Their motto is to think global and act
local.
 The marketing approach used by Coco-
cola throughout the world is similar.
 Pepsi is trying to make their product
different in tastes and making it light
which can be popular in the people of
old age as well as children.
 The slogan that attracts customers
towards company are “Any whether is
Pepsi Whether”
Other than this Pepsi co. is also aiming to make sure that their products are kept in light being a
refreshment as their advertisements and promotions are easily available to its potential
consumers.
SWOT analysis of Coca-cola:
Strength: the market that Coca-cola is holding is very large in the category of
refreshment drinks. The profit margin of company is really high as they are maintaining short
times in the manufacturing process and sending their products to the suppliers. The business of
Coca-cola is successfully running in more than 200 countries and is also increasing which is a
great advantage for the brand (Brooks and Anumudu, 2016).
Weaknesses: In the recent times a quality check was done for Coca-cola which brought
the results that there are some harmful pesticides present in the product. It brought huge losses
for company. The brand image was affected lowering the revenues and profits of company in the
global market.
Opportunities: company is continuously using new techniques as well as technologies in
order to produce the products soon and also cut down the wastes while manufacturing of the
product. Company also have opportunities of diversifying their business and entering into other
industries.
Threats: the increase in competition throughout the globe is a huge disadvantage for
company as their competitors are increasing in different market. It is necessary that company is
continuously changing and bringing new innovations in their products according to the needs in
competitive environment (Bıçakcıoğlu, İpek and Bayraktaroğlu, 2018). It is necessary for
organisation to deal with changing consumer demands as they are now more focused towards
healthy lifestyle and beverages.

Other than this the approaches used by both these businesses are also different ad
mentioned below:
Financial approach: In this process the organisation is focusing on bringing in in new
products or changing their products in order to build a useful life for them in future. It is also
attached to the brand name that is passed on to the commodity life cycle. The financial
approaches are of three kinds:
 Approach based on market- The following approach is totally based upon various solid
facts as well as figures of the current market situations where company is targeting the
values in market. Approach based on Income- The approach is basically focusing upon the future aspects
and profits that can be gained by business. Cash flow as well as estimation of earning are
the approaches used under it. Approach based on cost- The following approach is analysing various past records of the
past that are helping in cot developments along with taking the assumptions of brand. The
cost based formulation are suitable for valuing the assets that are to be replaced
successfully by the companies.
Customer based approach: Customers are supposed to be creators of brand value for an
organisation. If the customers are loyal or even addicted to the product which can be due to
quality or any other reason it become a beneficial prospect for the company. Therefore,it is
necessary for companies to work in such a way that they are focusing majorly on the customers
to enhance their brand value (Bilan and et.al., 2019).
Targeting and dividing- Three stages of Pepsis marketing strategy are:
 Customers those have favourable opinion for Pepsi and are loyal to Coke.
 Consumers who have a positive attitude for Coke and are loyal to coke only.
 The end users are require to have a positive cognition for both Pepsi as well as Coke.
Proving faithfulness towards both of these brands but the changes in purchases is
depending upon mood from time to time.
Coca-cola divides its market in three categories:
 Demographically- Age, income, size of family, gender of consumer and so on.
 Geographically- Depends upon geographical boundaries of states and nations.
 Psycho graphically- Based upon the social upbringing and lifestyle of people.

M5 Critically evaluate application of techniques for measuring and managing brand value in
relation to developing a strong and enduring brand.
This can be evaluated from above mentioned information that are number of tools and
techniques which can be use coca-coal in measuring and managing brand value in relation to
developing a strong and enduring brand. These are SWOT analysis, Financial approach,
Customer based approach and Targeting and dividing. All these are helpful in managing function
and using these function to achieve better productivity. Along with this, it is also seen that these
all are helpful in creating better brand and using it to motivate functions.
CONCLUSION
It can be concluded from above mentioned information that there are various function
which are used by organisation in relation to managing there image in form of brand. There are
various fetchers of this function to organisation which are used in conducting an appropriate
system and using this to achieve business objectives. This is also seen that, using successful
brand strategy is important for coca-cola in current market to achieve its business objectives.
Along with this, it can also concluded that there are different techniques for measuring and
managing brand value which are useful for coca-cola in achieving business objectives.

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