Comparing Brand Management Strategies: Luxury vs. Practical Brands

The assignment focuses on evaluating the differences between brand and product management, particularly within the context of luxury brands. Using sources like Som and Blanckaert's 'The Road To Luxury,' it examines how luxury brands evolve and strategize to maintain exclusivity and high consumer perception. The comparative study involves analyzing consumer engagement strategies, brand equity, and positioning in competitive markets. Through this analysis, students will understand the nuances of branding at a luxury level and how these influence marketing outcomes. Key sources include studies on brand management systems, perceived value, and emotional aspects of consumer-brand relationships from both traditional and digital perspectives.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
P1 Importance of branding as a marketing tool and how it has emerged in business practice...1
P2 Key components of successful market strategy for building and managing brand equity....3
SECTION 2......................................................................................................................................5
P3 Different strategies of portfolio management, brand hierarchy and brand equity
management................................................................................................................................5
P4 Brands are managed collaboratively and in partnership both at domestic and global level. .8
P5 Different types of techniques for measuring and managing brand value..............................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Brand management is considered as an effective procedure which need to be conduct by
each and every kind of organisation. With assistance of this, firm will easily analyse their
position as well as performance at market (Ashworth and Kavaratzis, 2015). It is must for
association to develop and maintain healthy relations with clients. As a result, they will be able
to keep up brand position at marketplace effectually. It has been examined that brand will either
tangible or intangible factor. Present report is based on Audi and Ford and they both are
operating their business in automotive sector. They are having an adequate brand image which
will help them to take benefits from rivals. It has been evaluated that an effective brand of firm
will work as a marketing tool for them. This report is going to describe about some factors which
are associated with successful brand strategy. It is required for an enterprise to formulate proper
strategy or policy for business as this will help them to survive at market. To examine brand
value certain kinds of tools as well as techniques will be utilized by affiliation, for instance:
qualitative, quantitative and comparative.
SECTION 1
P1 Importance of branding as a marketing tool and how it has emerged in business practice
Brand is like a symbol which help to make them distinctive from others. This assist to
make an appropriate image in the minds of clients (Brodie and et. al., 2013). It is must for each
firm to manage their brand at marketplace so that they will easily compete with their
competitors. Fundamental aim of an enterprise is to improve their goodwill so that they will be
able to gain attention of numerous individuals. It helps them to survive at market for longer
duration. Sometime, some organisations need to do some struggle for this. In this assignment,
Audi and Ford is selected and they both are competitors of each others as they are developing
qualitative items and much famous across the world.
Audi is known for their uniqueness and highly engineered cars. Designs of cars is much
attractive which help to gain attention of many individuals; therefore, value of goods are much
high as comparison to another brand. Whereas, Ford is producing qualitative items for
individuals. They are selling cars to middle as well as higher class of persons. Which help them
in improvisation of revenues and market share (Buil, De Chernatony and Martínez, 2013).
If brand of organisation is much effective then this will help to enhance their sales as well
as production. It works as a marketing tool for them which assist to increase customer base. As a
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result, they will be able to gain higher revenues and this help them to expand business
operations. Henceforth, there are some significance related to this, discussed as beneath: Improve recognition: If brand is much efficient and they are performing at marketplace
appropriately. Then, this will aid them to develop an adequate image at market which
support company to enhance their sales (Christiaans, 2012). In context of Audi, people
will remember them by attractive symbol and this is having four circles. Similarly, Audi
is also has their own symbol which is easily recognisable by individuals. Brand helps in creating trust: If brand is liked by customer then, they will easily gain
their trust as well as loyalty. For above stated aim, it is required for them to provide items
and services as per their requirements as well as needs. Therefore, they will make
themselves satisfied in an appropriate manner. Brand supports in advertising: To manage brand in an adequate manner, company will
take assistance of advertisement. But if they set up at marketplace in an effective way
then, it is not must for them always to do advertisement (Dempsey and Gruver, 2012). In
context of Audi and Ford, they are well established automotive firms and there is no
requirement to advertise their goods and services (6 Reasons Why a Strong Brand is
Important for Your Small Business, 2018).
 Helps in creating financial value: This kind of element need to be considered by
organisation. If position of brand is much adequate at marketplace then, they will easily
acquire financial assistance from other institutions like bank, shareholders and many
others. In relation of Audi and Ford, brand image of both affiliation is much effective;
therefore, if they need financial help then this will easily get by them (Esch and et. al.,
2014).
Henceforth, above mentioned each element is much required. Instead of this, it has been
evaluated that there are several distinction amongst brand as well as product of enterprise. This
will be defined as below:
Products Brand
This is fundamentally developed by
organisations so that they will sell it to clients
to fulfil their requirement.
This will be developed as per the perceptions
as well as expectations of clients. It is
considered as an umbrella which is having
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goods under them.
It is not unique and any firm will easy develop
a copy of it.
Brand never be copied by others as it is much
unique in nature. This will assist them to gain
attention of numerous individuals towards
them.
This will be outdated after certain period of
time.
When brand is developed it cannot loose its
effectiveness and appropriateness as it keeps
same always.
It is not easy for an organisation to create brand at market effectively as this will take
time (Gratwohl and et. al., 2011). If brand of firm is adequate then they will easily acquire
maximum market share. In context of Audi, it is needed for manager of organisation to know
about their contenders so that they will make their strategies appropriately. Some of their rivals
are: Ford, Toyota, Hyundai etc. If they are using proper policies then, they will maintain their
position at market for longer period of time. This will assist them to improve profits as well as
goodwill. Along with, they will be able to keep up customer base effectually.
P2 Key components of successful market strategy for building and managing brand equity
Company needs to formulate appropriate strategy for business and implement it on
operational activities effectually (Hanna and Rowley, 2011). It will aid to manage entire work in
an effective manner. It is developed by higher authority. For this, they will take support of
marketing division as they comprehend market properly. This will prepared by them for long
term as it helps in success and improvement of organisation. As a result, manager will be able to
provide maximum satisfaction to their customers and in addition obtain positive results.
To execute brand management strategies proficiently, they need to evaluate certain
factors. It will assist them to acquire loyal purchasers and firm will attain targets within limited
period of time. Therefore, these factors are portrays as beneath: Target audience: They are considered as those individuals for whom firm will design
items as well as services. To select an appropriate audience, firm needs to conduct
research (Hollebeek, 2011). Therefore, they will introduce products for suitable market. It
has been examined that target audience of both organisation is much different from each
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other. Audi is targetting high class people, whereas, Ford target audience is middle class
persons also. Brand positioning: With assistance of this, image of an organisation will determined.
This sort of element needs to be present in each approach or strategy for which brand is
preparing. Brand voice: If enterprise is much effective then, they will easily acquire attention of
numerous people towards them. This aids to improve their revenues and along with
market share. They will enhance their productivity which help them to take benefits from
rivals. Rather than this, it is fundamental for management to implement brand strategies
into firm significantly (Hwang and Kandampully, 2012).
 Brand promise: This is considered as a commitment which an organisation do with their
clients; like they provide goods and services to them as per their requirements and
demands. Audi and Ford promise is that they render qualitative items and services to
people and will solve their problems as quick as possible (Brand or Product – What Is the
Difference?, 2018).
Therefore, if both companies want their strategies more appropriate then, it is required for
them to consider entire elements so that effective results will be gained. It is must for superiors to
examine each facet of brand equity as it aids them to accomplish requirement customers.
To evaluate brand equity manager of firm will gather thoughts as well as opinions of
customers who purchased items and services of organisation from marketplace. It is must for an
enterprise to develop their own brand equity (Jiang and Iles, 2011). To keep up this, they need to
provide qualitative items to individuals. Henceforth, it is needed for Audi and Ford to implement
strategies into their business. Along with, if they want to maintain customer base then, it is must
for manager to do brand promise. There are several hey factors which help to develop successful
brand and these are mentioned as below: Brand awareness: Companies are able to make progress by making every people
informed about their existence in market and products offered by them so that they can
purchase it according to their requirements. They should frame message which defines
products features and benefits appropriately through which customers recognise brand
easily and differentiate it with other firms items (Kavaratzis, Warnaby and Ashworth,
2014). As Audi is a brand which consists admirable logo of four interconnected circles
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whereas its name is also superior, thereby they are able to establish high market image.
As a result, they are able to attract large number of customers by their brand image which
ford is lacking. Their symbol is not easily recognised by people which affect its market
position. Perceived quality: This force determine quality of products and services people want to
be present. So firms should design their items in accordance to customers preferences
through which they are able to attract them and induce them to visit stores whenever they
want to purchase vehicle. As a result, company is bale to satisfy people by their service
which are according to their expectations and which build their confidence (Li and
Kambele, 2012). Brand experience: Audi and Ford carries out activities to enquire about customers
opinion by taking feedback from them and also know if any problem is faced. This
informs superior about their experience which they construct from use of particular
product and service. Thereby, management is able to make appropriate modification in
vehicles as per people requirements and through which they are able to advantage than
other brands. Brand preference: Superiors should provide quality offerings to people by providing
them products according to their demand so that they are satisfied. As in case of Audi,
they are able to build loyal customers by delivering them adequate features and benefits
in their vehicles (Morgan, Pritchard and Pride, 2011). People who buy car increase their
status and gain good experience as companies offerings are superior and even the
services are provided in better manner.
 Brand loyalty: Companies are able to prosper if they are able to construct association of
customers with their product and sustain them for longer period. Hence, this feature help
executives to enhance reputation in market by increasing customer bases. This benefit
firm to enhance their profitability by improving number of sales.
SECTION 2
P3 Different strategies of portfolio management, brand hierarchy and brand equity management
Manager of company needs to formulate some effective strategies and moreover, they
have to apply it on entire operational activities (Santos-Vijande and et. al., 2013). Audi and Ford
is a multi national corporation so that it is fundamental for them to prepare strategies or policies
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and then apply it proficiently. As a result, they will be able to improve productions and profits of
firm.
Portfolio management: This is like a guidelines and contain entire exercises which are
going to be performed by management at workplace. Therefore, overall work will be managed
effectively and company will meet all targets either financial or non financial effectually. To
manage portfolio appropriately, certain policies will be formulated by manager; thus, each task
will accomplished in an effective and efficient manner. Additionally, best results will be
acquired by affiliation.
Basically, strategies of portfolio management will be classified into two parts and
superior of enterprise will utilized them to manage operational activities (Som and Blanckaert,
2015). These are stated as beneath: Active portfolio management strategy: This kind of technique is implemented into those
affiliations who will take risk without issues so that they will be able to make their
working operations more effective. Superior has a duty to select best management
strategy for business. But if they are selecting this method, then it is must to possess an
adequate position and market share. Therefore, they will comprehend market easily and
get best outcomes. As a result, they will be able to compete with competitors at
competitive world.
 Passive portfolio management strategy: According to this, organisation do want to make
their profile much higher and never like to take risk. There fundamental concentration is
to improve their return (Wallace, Buil and de Chernatony, 2014). Mutual fund investment
is considered as a main financial segment as it contains less risk.
Henceforth, Audi is using active portfolio management strategy so that they will improve
market share by taking some risk.
It is required for administrative division of Audi as well as Ford to comprehend their
hierarchies so that they will easily distinguish amongst goods and services. As a result, they will
be able to manage their brand image in a proficient manner. Following are some differences
amongst Audi and Ford (Zaglia, 2013):
Basis Umbrella brand Products
Audi As indicated by this, company is
selling their goods under a single
It is developed by organisation; thus,
they will be able to accomplish
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name of brand. There image is much
effective; thus, series of cars are sold
out in huge number.
requirements and demands of
customers effectually. Many items are
produced by Audi like, Q1, Q2 and
latest is named as Q8.
Ford This kind of strategy is taken into
under consideration by firm as they
are having an effective market value
and share.
It is main need of each firm as with aid
of this they will get attention of
numerous people. There are some
items of Ford, like figo, fiesta and so
on.
Company produced goods and services for clients so that they will fulfil their needs and
wants in an effective way. If an enterprise wants to develop brand value then, it is required for
them to create brand equity of goods as well as services (Ashworth and Kavaratzis, 2015).
Henceforth, they will utilize model of brand equity which is given by Keller i.e. CBBE model.
CBBE model (Consumer based brand equity)
Executives uses this model to maintain the brand equity of firm in better way. As
specified by Keller that brand is a powerful device which keep people associated with companies
offerings. This is visible when customers purchase particular product again when they are
satisfied by its quality. So they will take care that items are constructed in appropriate manner
through which people are satisfied (Brodie and et. al., 2013). These are various forces considered
while using CBBE model are discussed below: Brand identity: This feature determine product elements which are easily recognised by
people and differentiate it from other companies brand by adding distinct features. Brand meaning: This help customers to distinguish between items so that they don't
distract to other brands. So firm is able to improve their market position by establishing
strong image in people's mind (Buil, De Chernatony and Martínez, 2013).
 Brand response: This comprise customers counter towards firms items which help
company to earn adequate amount of revenue for their business.
Therefore, these elements are much essential for an organisation as it aids to acquire
competitive benefits from rivals. Along with, assist to maintain customer base for maximum
period of time (Christiaans, 2012).
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P4 Brands are managed collaboratively and in partnership both at domestic and global level
If customer recognise about the products of company then, this aids into their success and
development. Along with, manager needs to utilize some marketing tools so that they will pull
attention of individuals towards them (Dempsey and Gruver, 2012). By determining needs and
requirements of customers, firm will fulfil demands of people which will help them to compete
competitors at marketplace. It has been examined that Audi and Ford is having adequate market
value which help them to maintain brand image more effective. They concentrate on every sector
of person either they belong to higher class or middle as well.
Brand Extension: If association is having efficient more idea about goods and services
then, they will easily expand their brand. This will assist them to acquire loyalty as well as trust
of clients. This kind of strategy is basically opted by those firms who are operating their business
at large scale. Basically Brand extension portrays add something new into brand which will help
them to take entry at marketplace again. As a result, they will make brand more active in minds
of people (Esch and et. al., 2014).
It has been evaluated that Audi and Ford has many loyal clients. There are several brand
extension approaches which are mentioned as beneath: Line extension: With help of this element company will concentrate on new clients by
taking support of parent brand. This will aid to enlarge market; as a result, organisation
will able to pull attention of numerous individuals towards them and improve their
revenues as well. Audi is utilizing this kind of method to target new market segment and
will make an appropriate place over there.
 Category extension: As indicated by this, company wants to expand their products as
well as services. This type of approach is used by those firms who wants to enter at
marketplace again . For above stated aim, they will acquire support of parent brand. Thus,
Audi will use this method to target new sector at market (Gratwohl and et. al., 2011).
Both, Audi as well as Ford is having an effective market share. But, it is needed for Ford
to increase their luxurious collection; therefore, they will take benefits from contenders such as
Audi. Instead of this, Audi will produce some more products, for instance: bikes.
Brand reinforcement: Superior is required to inquire about their products performance in
market from introduction to decline. This help them to find changes that have arise in buyers
taste and preferences so that they design items accordingly. Firms adopt this tactic when they
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want to inform people about existence of their products and its features to influence them to buy
them (Hanna and Rowley, 2011). Audi uses this strategy to create brand awareness among
customers:
 They can grab attention of people and remind them again if they have forgot by
enhancing their broadcast messages. So that they are able to position themselves higher
than competitor's brand.
 They offer quality offerings so that they are able to sustain customers, thereby earn
adequate profits by increasing market base (Hollebeek, 2011).
P5 Different types of techniques for measuring and managing brand value
Each organisation who is doing their business in any sector will face problems or
challenges. It is must for them to resolve it appropriately so that they will be able to keep up their
image at marketplace. Therefore, it is must for firm to fulfil needs and wants of clients as this
will assist them to maintain customer base and their interest effectually. Buyers are fundamental
factor for each and every sort of association either they are small or big in nature (Hwang and
Kandampully, 2012). In context of Audi and Ford, these are well set up enterprises. But as there
are lots of alterations in technologies and market so that many issues will be face by
organisation. Henceforth, it is required for them to examine their brand value because with
assistance of this, they will be able to know about their existing position.
It has been evaluated that requirement to measure brand value will arise when:
 Firm needs to formulate financial reports,
 When they have to set value of their goods or items.
Therefore, there are many kinds of methods which are using by Audi and Ford:
Qualitative techniques: As indicated by this method, people who are using branded items
will call to get feedback. As this will help manager of firm to know about their brand value at
marketplace (Jiang and Iles, 2011). This kind of procedure is conducted by department of
marketing of organisation because their main responsibility is to deal with individuals who are
present at market. There are many kinds of methodologies are using by them, for instance:
projective techniques, free association, experimental methods and many more.
Quantitative techniques: Under this tool, many kinds of numbers as well as scale
questions utilized which will help to prepare summary appropriately.
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Comparative techniques: According to this, user's behaviour as well as reaction related
to brand need to be evaluated; therefore, firm will introduce alterations into their products and
services (Kavaratzis, Warnaby and Ashworth, 2014). As a result, they will be able to make their
image more stronger. There are many types of techniques will comprise into this, such as:
◦ Marketing based comparative approach
◦ Brand based comparative approach
Audi Ford
This company is known for their luxurious
products and services which is developed for
those individuals who comes under higher
class. Many types of new and latest methods
are using by them so that they will develop
innovative products. Following are those
methodologies which are utilizing by them:
 Free awareness: As per this, enterprise
wants to know that they are providing
items to clients as per their demand
when they are purchasing car.
 Brand awareness: According to this,
firm wants to make their image much
effective; thus, people will determine it
anywhere.
This firm is operating their business in
automotive segment and in addition developing
cars for individuals for each sectors. Thus, they
are facing lots of competition at marketplace;
some of their rivals are: Toyota, Hyundai and
so on.
Methods which are using by them:
 Brand based comparative approach:
Under this, reaction of client need to
get examined in relation to items. Some
of products are Ford Aspire, Ford
Mustang etc.
Brand equity audit and tracking techniques: It is required for every kind of affiliation to
conduct audit and for this, they will follow certain steps (Li and Kambele, 2012): Market Context – Both Audi and Ford analyse all forces which influence brand equity
and to know whether they are impacting positively or negatively. Brand Equity strength and Weakness – Companies measure its market share so that they
come to know about its product value and attraction among people. This also informs
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