Brand Management Report: Analysis of Lidl's Marketing Strategies

This report provides a comprehensive analysis of Lidl's brand management strategies, examining the importance of branding as a marketing tool and its evolution in business practice. It delves into Lidl's branding techniques, including imagery and co-branding, and evaluates the key elements of a successful brand plan. The report explores different strategies for portfolio management, brand hierarchy, and brand equity management, with a focus on how Lidl can leverage and extend its brand both domestically and globally. Furthermore, it assesses techniques for measuring and managing brand value over time, offering insights into Lidl's approach to maintaining a strong brand image and customer loyalty. The report also includes detailed explanations of brand equity models and steps required to build and manage brand equity for Lidl. The report analyzes the Lidl brand's management strategies and portfolio management for the brand's long-term success.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Explain the importance of branding as a marketing tool and why and how it has emerged in
business practice..........................................................................................................................1
TASK 2............................................................................................................................................5
Different strategies of portfolio management, brand hierarchy and brand equity management.5
TASK 3............................................................................................................................................6
a) Critically evaluate how each of the following techniques may be used to leverage and
extend brands..............................................................................................................................6
b) Evaluate how the Lidl brand could manage collaboratively and in partnership both at a
domestic and at a global level.....................................................................................................7
TASK 4............................................................................................................................................8
Evaluate techniques for measuring and managing brand value over time..................................8
CONCLUSION..............................................................................................................................10
References:.....................................................................................................................................11

INTRODUCTION
Brand management implies to those functions of marketing which utilises the techniques
as well as increases sensed value of the merchandise line or a brand over particular period of
time(Ben Youssef and et. al., 2018). It enables the cost of a merchandise to go ahead as well as it
assist in building loyal customers with the help of positive association with the brand or may be
because of strong awareness of a particular brand. For this report, Lidl brand is considered which
is from Germany and is planning to become Europe leading retailers of food.
This report covers understanding relating to how brand are formulated as well as
managed. It further this report mention how brand are unionised in portfolios, how hierarchies
are built, managed in brand as well as how they are leveraged globally. Besides this it also
covers various kind of techniques which are used to measure as well as in managing the brand
over the time.
MAIN BODY
TASK 1
Explain the importance of branding as a marketing tool and why and how it has emerged in
business practice
Branding is the process of creating a good image in customers mind by providing
qualitative goods at reasonable prices. The elements of branding are logo, design, mission and
vision statement and many others (Calantone and Nguyen, 2018). Branding is an important
factor to take in consideration because in today's scenario, customers only prefer a good imaged
and a good reviewed company with their mind set that branded companies satisfied them more as
compared to non- branded companies. Branding of a company or a product is important because
of following ways in context of Lidl-
 Branding is useful tool to attract more customers of Lidl as customers prefer branded
companies more and customers have trust on branded companies only. The trust is related
to service that they provide good services.
 Branding is useful to analyse marketing environment in Lidl as they less customers
attention will force them to focus on reasons for unpopularity in market.
 Branding is useful to grow and expand the business of Lidl in other countries as good
branding.
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 Branding is also useful to motivate the employees of companies as they work with
branded companies which help to increase their status in their society. Branded
companies always provide extra benefits to their employees whether it is monetary or non
monetary. Working with the branded company every employee will get benefited. Market recognition improves with good branding of Lidl. Market recognition is measure
of awareness of the company in market place. Today customers know more about
branded companies and they suggest to their known ones to purchase product from Lidl
as it is one of the most famous branded retail chain stores.
The ways in which Lidl manage branding successfully for a longer time are explained below-
 Company may opt more promotional activities to promote their product as much as
possible.
 Lidl must focus on investing more in their research and development department because
they analyse external environment and customer demand.
 Lidl must focus more on providing good services because today's market is considered as
customer oriented market where more customer satisfaction means more good image of
company.
 Satisfying employees or the overall workforce of Lidl is also a good way to manage
branding successfully as employees leave a review about company on their official
website and online oriented customers who prefer online shopping more, first thing they
notice is the reviews and ratings of stores at which they want to buy anything.
 To analyse and focus more on competitors and their strategies because the companies
who lead the market got more good images from surrounding and Lidl is an supermarket
chain and there is a tough competition in retailing sector. Hence, it is very important for
Lidl to modify their strategies to compete in market for more successful branding.
 Use of new and updated technology helps to produce more qualitative goods which
further attract more customers and creates good brand image among customers. Lidl
technology is good and they provide online shopping mode for their customers comfort. Making a good statement of mission and vision creates better branding power in market
because this is the thing which is seen first in search of any company. Lidl mission
statement consist of satisfying their customer by providing good quality of products at
reasonable prices which is an good branding technique.
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Some branding techniques are explained below-
Imagery Branding technique- this technique consist of use of modern and updated
technology to promote products of an company. In this technique companies use 3D images or
pictures of their products to attract more customers (Davis, 2017). This technique is helpful in
creating logo and labelling. Lidl use this technique to make a good design of their logo which is
simple but unique and attractive.
Co-branding method- this is the method in which two companies combine their
marketing and branding power together. This helps in gaining customers or to aware other
companies customers about Lidl. It is suggested to Lidl to combine with those companies only
who lead the market with their good strategies so that Lidl can learn from them and have benefit
of their customers.
Promotional techniques- use of more promotions like advertisement on social media,
news paper, hoardings, audio visual adds near crowded area and many others helps to create
more better brand image among various customers. Lidl already invest much on advertisement
and they are successful to aware their customers about their brand and the benefits of purchasing
products from Lidl (Dedeoğlu and et. al., 2019). Generally, promotional activities are held to
aware more customers and awareness of more customers will help in increasing brand image as
customer must attract with the discounts and offers given by Lidl and they start purchasing their
products.
Study the key elements for a successful brand plan of action for building as well as managing
brand equity.
Brand equity implies to the premium of the value which is generated by the an entity
from the merchandise with are easily recognise by the name if compared to generic similar
products. In context Lidl, it will assist them to get their customers from their brands names from
all the other similar products which are available in market. For the development of a good
strategy in relation to brand, managers of Lidl are require to examine all the factors which are
needed for the evolution of brand as well as for brand equity also. These factors are ex-plained
below:-
Identity: It assist in projecting expectations as well as ensures loyalty and trust of customers. It
will help Lidl in delivering best quality, work, reliability as well as trustworthiness. With this
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Lidl can influence customers and this will result in more purchase which leads to good profit
margins.
Transparency: It represents the ways through which brand project themselves in-front of
their customers. They should be open as well as genuine in this regard. Lidl can determine more
customers as this will add customers trust because company will be more honest towards them.
Support of potential customers: With the honest working and a good brand image it will
be easy for enterprises to generate customers support. In this regard, Lidl can determine good
support from its customers with the aid of its brand image.
Steps which are required to build as well as manage brand equity: -'
The favourable brand equity contribute in the hike in market shares as brands are
acknowledged widely and it is favoured by consumers also. In order to determine the steps of
brand equity Kevin Keller Lane model is considered. This model suggest that in order to form
great brand equity it is important to modify the perception of customers. In context to Lidl, they
should perform right kind of actions which will assist them in building beliefs, opinions as well
as feeling also (He, Wang and Wu, 2020) . The steps which are involve in this are as followed:-
Salience: It generate a brand which stands out from and customers can easily recognize as well
as they are aware about the brand. Lidl with this can ensue that the perception of its matches to
they want their brand to be.
Meaning: In this enterprises determine how effectively their products are meeting the
needs or desires of their customers in relation to their performance. In relation to imagery,it
depends on the social as well as psychological level. In context to Lidl, company can enhance
their brand with both the factors- from their performance along with the social level also.
Response: It is very essential to get customers reviews as it help in determining what
customers want and how companies can deliver them. This also provide a path which leads
enterprises towards their growth (Hakala, Niemi and Kohtamäki, 2017). In reference to Lidl, it is
important for the company to collect feedback from their customers as it will provide them
knowledge relating to all those components in which they are lacking.
Resonance: The situations in which the bond of psychology is generated among the
customers as well as the product then this stage is germinated. In order to perform all the
activities successfully enterprises are require to perform all their operations in a effective
manners. This bond is more important as well as it entirely depend on nature along with the
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method which a firm incorporated in its activities. Lidl should try to maintain a good bond with
their customers as it6 develop and enhances their relationships.
TASK 2
Different strategies of portfolio management, brand hierarchy and brand equity management.
Portfolio management: It is defined as decision of making investment to objectives and
assets allocation for individuals and various institutions(Hsu and Chen, 2018). It requires ability
to strength and weaknesses, opportunities and threats that meets long term financial objectives.
Within Lidl, it is helpful to show the ROI of specific project and determine how much effort can
firm resources are likely to be used in completed their project. It help for firm to decide whether
its as business should receive more or less investment in this project.
Strategies of portfolio management:
House of brands: It offers variety where role of firm brand and provide quality
assurance and stability. Many of house of brands are consumer products or holding firms with
acquiring various brands especially large and well established brand equity (Iglesias and et. al.,
2020). In case of Lidl, with competition for premium space facing a maximum comes to need
stand alone brands to offer consumers and improve firm opportunities and increase market share.
Branded house: According to this strategy, this direction investment to business brand
for all offerings and take a part of decision making and maximum resources are utilised for all
products and services. Within Lidl, if firm can target a particular market then branded house can
boost their brand awareness and optimising reinforce goodwill. A enterprise in market as
branded house to expressing a value proposition in a single.
Strategies of brand hierarchy:
Corporate brand: It is a practice of using firm name as a product brand name and
attempt to use corporate brand equity to create brand acknowledgement. For example; IBM, coca
cola and many more. With relation to Lidl, people tends to business with firm they are familiar
and it is easy to recognize their brand so people can feel more comfortable for purchase
products.
Family brand strategy: When there are more group of products given same brand name
i.e. different products of firm that are marketed under one brand name (Ind, Iglesias and
Markovic, 2017). For example; Amul, Johnson & Johnson and so on. In context to Lidl, firm can
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manage their products easily at a low cost under one established brand and take advantage of
existing people trust and knowledge of customers. This is more crucial part of brand credibility
and ensure that there is new products will accepted by consumers.
Strategies of brand equity management:
Brand strategy: In this strategy, to creating a brand and recognised their brand is very
difficult. Various characteristic to identify their brand to make a successful branding feasible.
Brand should be consistent in nature and quality represent good and ethical standards for
profitable business (Kumar, 2018). With relation to Lidl, if their brand is good in firm then they
will make more money and defines what it makes brands is and what set apart from competition,
how want their customers to perceive it.
Legal and ethical decision making: some legal decision for firm is good and it is
mandatory to take an action of legal decision making but ethical decision is much wider scope on
benefit of others. Ethical decisions are based on principles rules and regulations and legalities to
analyse moral courage (Paschen and et. al., 2017). In case of Lidl, firms are expected to make
legal and ethical decisions. when consumer are protect their groups become unfair practices and
they make call form legislate and regulate unethical behaviour. Brands that are operate legally
and ethically helps to build and maintain a long term relationship between firms and customers.
TASK 3
a) Critically evaluate how each of the following techniques may be used to leverage and extend
brands
In terms of brand leveraging organisation by implementing different type of
strategies can undertake advantage of effective methods. This will allow company to categorise
their products information in an effective manner (Salehzadeh and Pool, 2017). It will further
facilitate company to enhance brand image of their service product in an effective manner.
Mentioned below there are some techniques such as vertical extension, brand extension and line
extension that are having positive impact upon company growth.
Basis Brand extension Line extension Vertical extension
Meaning This is an effective method It has been determined In context with this,
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organisation covers
unrecognised category.
that within this
technique new
products get
introduced in same
form of market
segment.
all the same form of
brand category gets
covered in diverse
price segment.
Purpose It has been determined that
main aim behind this is to
effectively leverage all
common brand equity.
This has been
determined that is aim
towards to attract and
react to potential
consumer in order to
offer them services.
It has been states that
decrease in money
value allow to enhance
consumer gain within
all lines.
It has been identified that there are different type of techniques such as brand extension,
line extension and vertical extension that allows organisation to significantly maximize their
brand values within respective industrial sectors. Furthermore according to the analysis it has
been identified that all these methods allow organisation to emphasize upon different aspects and
factors that are having direct and indirect impact upon company (Wang, Tran and Tran, 2017).
These techniques facilitate company to undertake advantage of effective methods to which they
can influence purchasing behaviour of customers. In addition to this set has been identified that
with this practice is company can assure more profitable return in market segment. Techniques
like brand extension and vertical extension Offer Company an advantage to maximize their
market share through which they can enhance effectiveness of their brand image in market
segment. All these techniques play important role for organization growth and development
through which company can gain significant profitability (Ben Youssef and et. al., 2018). It is
essential for an organisation to take advantage of all these techniques in order to manage their
brand. It will not only enhance overall productivity of company but will also facilitate them to a
shoulder long term sustainability in market segment.
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b) Evaluate how the Lidl brand could manage collaboratively and in partnership both at a
domestic and at a global level.
It is essential for an organisation to effectively manage their brand with the help of taking
advantage of various strategies at domestic and global scale. It is required for Lidl to maintain
their market image in domestic and global market as this organisation performs their business
operation as the leading organisation in retail industrial sector. Thus, it is important for them to
undertake various forms of methods and undertake advantage of methodologies in order to
manage collaborative partnership in domestic and global scale. It will help company to maintain
their leading positioning in domestic and global market level. It is required for Lidl to effectively
evaluate the partnership process undertaken by other companies and manage each and every
activity according to the fund (Beskese and et. al., 2020). It will help company to maintain their
brand value in an effective manner. It is essential for company to maximize their equity with the
help of maintaining partnership it helps in generating funds in both domestic and global scale.
In addition to this it has been identified that with the help of collaboration and partnership at
domestic and global level company can make significant increase in their brand value. For this it
is essential for Lidl to evaluate their external and internal activities and effectively respond to the
changes with the help of internal collaboration and partnership. It will possibly maximize their
brand reach and can allow them serve number of customers. It will help company to enhance
their profitability in an effective manner.
TASK 4
Evaluate techniques for measuring and managing brand value over time.
It is essential for an organisation to effectively measure and manage brand value in an
effective manner in order to determine growth opportunities.
 Brand Awareness- Brand awareness is stated as a first stage of marketing method. With
the help of this organisation can attract attention of large number of audience or potential
buyer towards organisational products and services. It is essential for company to
effectively engage in the process of research and decision making process in order to
create brand awareness. In this technique company with the help of referral program and
pursuing local partnership and social media can effectively enhance their overall brand
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awareness. For example Dominos take advantage of unique personality image as to
maintain their brand awareness in respective industry.
 Brand value- Brand value is termed as financial analysis of an organisation in order to
determine their brand evaluation. In this company can take advantage of four approaches
that are formulary, cost, economic and market approach. With the help of taking
advantage of brand value technique organisation can evaluate their financial value. This
will allow company to evaluate their return on brand investment and further formulate
effective investment strategies across portfolio of brands. For instant Starbucks undertake
advantage of consumer loyalty method in order to ensure more loyalty from customers.
For this company undertake feedbacks in order to generate their brand value in market
segment.
 Customer attitude- It is essential for organisation to effectively determine consumer
attitude towards their products services or brand. Consumer attitudes are defined as a
composite of individual believes. Behavioural intention and feeling towards organisation.
This will help company to effectively monitor and change attitude of customers towards
companies. Consumer attitude play important role for organisation that allow company to
influence their intention to purchase. For example Nike covers all the ordinary scales that
they offer in order to determine consumer attitudes. In addition to this company also take
regular feedback from customers along with their experience with the service or product.
 Market Share- It is essential for organisation to measure their market share within
industry in order to determine their total revenue. For this company can divide the total
sales or revenue within the industry over a fiscal period. With the help of market share
technique organisation can generalize the idea of company size in relative industry.
Market share play important role for organisation as it plays key essential elements for
market competitiveness. It has been identified that Samsung take use of market share
indicator in order to evaluate shares lead in respective industry.
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 Purchase intent- Purchase intention is termed as a measure of strength of an individual
intention to conduct a specific behaviour or to formulate decisions in order to purchase a
service or product. It has been identified that purchase behaviour play a central role for
customers in order to evaluate and access the particular product. In addition to this it has
been determined that purchase intention play most important tool through which
prediction of buying process can be effectively undertaken. Furthermore it has been
evaluated that purchase intention can be changed under the influence of quality. price and
value. It is essential for organisation to measure consumer purchase intention in order to
determine their response towards the brand service or product. For this company can
engage in the process of buyer’s intention survey. It has been determined that Amazon
undertakes use of consumer relationship management. It is one of the most effective
technique that allow organisation to have social media strategy through which the
evaluate purchase intention of customers.
CONCLUSION
From the above information, it can be concluded that brand management is a technique to
increase detected value of product or service. It enables to price of products through build loyal
customers for positive brand companion and as strong awareness brand. In an organisation,
brand management gives firm to some control of brand perception but also presents this
opportunities to take firm next level. Several topics are covered in this report which are named as
importance of branding as marketing tool, key components of successful branded strategy and
manage brand equity, different strategies of portfolio management, brand hierarchy and brand
equity, determine how brand are managed collaboratively in both types domestic and global level
and types of techniques for measure and manage brand value.
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