DeLonghi Coffee Machines: Analyzing Branding and Future Practices

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This report provides an in-depth analysis of DeLonghi coffee machines' branding strategies. It begins with an introduction defining brand and brand acquisition, then analyzes DeLonghi's branding approach, focusing on its brand image, product quality, and design. The report examines various branding strategies like individual product branding, family branding, and co-branding, assessing their effectiveness. It evaluates the methods used by DeLonghi, highlighting their popularity through television advertisements, online media, and innovation. The report also analyzes the effects of DeLonghi’s future practices as brand marketers, especially the impact of user experience strategy and e-commerce channels. It concludes by emphasizing the importance of marketing activities on brand image, recommending strategies such as mergers and acquisitions, social media engagement, and strategic partnerships to enhance brand building and customer loyalty. The report uses various academic sources for support.
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Analysing the way the brand approach their branding ..........................................................3
Evaluating the effectiveness of methods used by DeLonghi coffee machines.....................4
Critical analysis of effect of DeLonghi coffee machines future practices as brand marketers .6
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................7
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INTRODUCTION
Brand can be defined as the unique symbol or sign which is embossed by company on its
product in order to differentiate goods from that of its competitors. Brand acquisition can be
defined as a situation in which one company acquires most of the share of other organization. It
is very much crucial for companies to reflect on the role of brand during merger as well as
acquisitions. Manager in an organization to consider the opportunities which can be capture by
merging or acquiring the brand.
The present report have focus on analyzing the way DeLonghi coffee machines have
approached their branding. An organization is well known for its innovation. Study will
emphasize on measuring the effectiveness of methods used by an organization for promoting
brand.
MAIN BODY
Analysing the way the brand approach their branding
Brand image can be defined as the perception of customer about the products or services
offered by the company. The customer form about the perception about the brand considering
the attribute, quality and also personality of Brand. It is the quality, product and design of the
product which has supported DeLonghi coffee machines in gaining the popularity as well as
success. In addition to this, an organisation makes branding appeals to customers by utilising the
unique combination of style which suits their business culture and environment. According to
the view of (), success of any brand is completely based on the people having the positive
perception about the brand. The author keller argues that favourables, familiarity results in the
customer brand equity that further influences consumer to provide response to the marketing
activities performed by specific brand.
DeLonghi coffee machines is a leading company in retail industry worldwide. The
different products and services offered by an enterprise are coffee, kitchen and home appliance.
Business entity mission is to offer consumer with innovative kitchen as well as home appliance.
An intelligent approach to innovation has been adopted by firm in order to approach their
branding which has proven to be successful. Strong and consistency branding strategy has been
adopted by DeLonghi for approaching their branding. In addition to this, There are different
types of branding strategies such as :
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Individual product branding : Under this approach of branding, new products are launched by
organisation with new names. New products developed by an organisation does not have any
connection with existing brands of enterprise. Business entity utilising this market approach need
to take high initiatives for promoting the goods or specific brand in the market. In context of
DeLonghi coffee machines can utilise this approach if they are planning to develop the other
unique product. The main advantage of utilising this branding approach is that it enables brands
to stand on their own and aids an organisation. By utilising this branding approach, DeLonghi
coffee machines can built its brand equity.
Family branding: In this branding approach, new goods developed by company is put under
umbrella. It is the branding approach which has been adopted by DeLonghi coffee machines. The
main advantage of this approach is that it provides firm an ease in generating the brand
awareness. Major drawback of this approach is that Family branding approach of branding
might not be proved to be effective as consumers in the market already have made perception
about the brand.
Co-branding : In this approach of branding, one organisation form strategic partnership with
other enterprise which has already has established brand. It is the another approach which has
been utilised by the DeLonghi coffee machines.An organisation has form strategic partnership
with organisation which has provided business entity an ease in entering into new market
segment. It has also helped an organisation in establishing good position in the market. It
Private or store branding: Under this type of branding approach, suppliers produces the goods
for other firms in industry. For instance, DeLonghi coffee machines has acquired the ‘Cambridge
Limited’ it has provided firm an ease in accessing to the manufacturing of Cambridge in China.
Evaluating the effectiveness of methods used by DeLonghi coffee machines
It has been analysed from the given case scenario that DeLonghi coffee machines has get
recognition as household brand in the market. An organization has is know by the name of house
hold brand as it sells most of the household items such as air conditions, electric radiators etc.
DeLonghi coffee machines is basically an Italian brand which mainly emphasizes on coffee
making gadgetry. Business entity has gained popularity through advertisement on television.
Marketing through Online media is considered to be as an effective strategy, as it supports
company in promotion goods or services among wide number of customers. It is the innovation
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as well as research and development activity which has assisted an organization in fulfilling the
needs of customer and helped firm in becoming a most popular brand. High quality products
offered by DeLonghi coffee machines has supported business entity in gaining the customer
loyalty. There are different methods of branding these are :
Branding strategy by image: In this method, firm organize market campaign for generating the
brand awareness.
Branding strategy by planning: This is the method which is utilised by the companies for
approaching to the brand through proper business planning procedure. It is the method which can
be used by DeLonghi coffee machines, as business entity has wide product portfolio.
Branding strategy by self - expression : Under this method of branding, owner of the brand
place the role of brand building as a collaboration with their customers. In this method of
branding, brand owner have emphasizes on extracting meaning rather than developing the new
product.
Branding strategy by user experience: Under this method, organisation has focus on quality,
design and functionality of product. It is presently used by DeLonghi coffee machines. An
entrepreneur of DeLonghi coffee machines has emphasizes on product as well as services
designing and usability. An organisation designs the unique products as well as services in order
to provide good experience to customers.
Successful brand building procedure plays a crucial role in gaining the customer loyalty.
In context of DeLonghi coffee machines, it is very much essential for firm to built strong
relationship with customers. An effect brand building procedure is very much important in order
to increase sales and profitability. Management in DeLonghi coffee machines has been provided
with suggestion to use social media platform and communicate continuously with customers, as
this will help an enterprise in developing the strong relationship with customers. In addition to
this, DeLonghi coffee machines can acquire the well established brand. In addition to this,
business entity can form strategic partnership with global brands , as this strategy will assist an
enterprise in gaining the competitive advantage. It will also help an organisation in reducing the
negative effect of competition. DeLonghi coffee machines can enter into Horizontal Merger with
other companies. In addition to this, firm can also enter into Concentric Merger / Acquisition. As
by implementing the Concentric Merger / Acquisition strategy, DeLonghi coffee machines can
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use the customer base of other enterprise for selling their new product's or services. The firm
will not have to put more efforts in marketing their new brand or product in the market. In
addition to this, other recommendation to DeLonghi coffee machines is that an organisation
need to think beyond the design, as this will support business entity in differentiating itself from
its competitors.
Critical analysis of effect of DeLonghi coffee machines future practices as brand marketers
The user experience strategy adopted by DeLonghi coffee machines will have direct as
well as significant effect on the word of mouth marketing which is considered to be as one of the
most trusted way of making brand familiar to customers. In addition to this, an organization is
planning to sell its products or services through E-commerce channel, as this will help an
enterprise in increasing sales and profitability. Marketing team in DeLonghi coffee machines is
planning to use digital technology for direct interaction with customers, as by utilizing the digital
technology an organization will able to provide user with memorable experience which can be
helpful in context of strengthening the user bond with the brand. But use of the digital
technology can add extra cost to firm which might have adverse effect on the profitability of an
organization.
CONCLUSION
It has been concluded from the report that marketing activities conducted by companies
for promoting the products or services has direct as well as significant influence on the brand
image. From the above it has been summarized that brand acquisition and merger are the best
strategies for generating awareness about the product. It has been concluded from the assignment
that innovation is the strategy which can help an organization in getting the brand recognition in
the market.
The different approaches have been highlighted in the report which can be utilized by
firm for approaching to their branding. There are several strategies has been recommended which
can be used by organization for building a brand.
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REFERENCES
Books and Journals:
Gaustad, T., Samuelsen, B.M., and Fitzsimons, G.J., 2018. The perils of self‐brand connections:
Consumer response to changes in brand meaning. Psychology & Marketing.35(11).
pp.818-829.
Fang, X. and Wang, X., 2018. Examining consumer responses to cross-border brand
acquisitions. European Journal of Marketing. 52(7/8). pp.1727-1749.
Liu, Y., Öberg, C., and Xing, Y., 2018. Brand management in mergers and acquisitions:
emerging market multinationals venturing into advanced economies. International
Marketing Review. 35(5).pp.710-732.
Chung, Y., Choi, J., and Lee, H., 2018, July. THE EFFECTS OF MERGERS AND
ACQUISITIONS ON BRAND LOYALTY IN LUXURY BRANDS. In 2018 Global
Marketing Conference at Tokyo (pp. 451-451).
Lee, H.M., Hsu, Y.H. and Wu, Y.C., 2018. Effect Of Complementary Product Fit And Brand
Awareness On Brand Attitude After M&As: Word Of Mouth As A Moderator. Global
Journal of Business Research. 12(1). pp.51-67.
Nelson, T., 2018. Mergers and Acquisitions from A to Z. Amacom.
Bommaraju, R., Tirunillai, S. and Lam, S.K., 2018. The impact of mergers and acquisitions on
the sales force. Journal of Marketing Research.55(2)/ pp.254-264.
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