Brand Management Strategies for Marks and Spencer: A Critical Analysis

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HUSSEIN: BRAND MANAGEMENT (UBC)
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Table of Contents
Introduction......................................................................................................................................2
LO1: Understanding of building up of brand and its management (branding concept, brand
management, theoretical analysis)...................................................................................................2
P1: Importance of branding in form of marketing tools and its emergence in business practices
......................................................................................................................................................2
P2: Analysis of key components of brand strategies for management of brand equity...............3
M1: Evaluation of brand management with application of theories, concepts and models.........5
M2: Examples of brand building on organizational context........................................................5
LO2: Analysis of organizing procedures of brand portfolios and management of brand
hierarchies (strategies of brand portfolio, equity and hierarchy management)...............................6
P3: Analysis of various strategies of brand portfolio, equity and hierarchy management..........6
M3: Critical analysis of brand portfolio, equity and hierarchy management..............................7
LO3: Domestic and international expansion of brands (brand extension)......................................8
P4: Evaluation of brand extension over global and domestic level.............................................8
M4: Critical evaluation of various techniques required for brand extension...............................9
LO4: Brand value management and measurement techniques (brand equity)................................9
P5: Various techniques for measuring and managing brand valuation........................................9
M5: Critical evaluation of various techniques for measuring and managing brand valuation. .10
D1: Critical evaluation on comprehensive understanding of branding concept on
organizational context................................................................................................................10
Conclusion.....................................................................................................................................10
Reference list.................................................................................................................................12
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Introduction
The concept of brand management holds importance for sustaining analysis along with planning
justifying the motive for brand perception within a particular market. A proper relationship
formation with target market stays important for longer term business propositions. In light of
this context, the following content would be highlighting importance of brand management along
with its extension and applicability over the organisation Marks and Spencer (M&S), a fashion
retail organisation in UK. The primary motive would be to elevate their marketing position
through brand management against the issue of downgrading market shares. The content would
also be highlighting theoretical applications of house of brands, branded house and hybrid theory
to affricate the analysis.
LO1: Understanding of building up of brand and its management (branding
concept, brand management, theoretical analysis)
P1: Importance of branding in form of marketing tools and its emergence in
business practices
Figure 1: Importance of branding
(Source: created by researcher)
The concept of branding is defined to be the procedure which is concerned for the creation of
unique image and identity regarding any product in the minds of customers through use of
advertising mediums and sustaining a particular sort of consistent theme. The primary aim of
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PromotingrecognitionSeparationofentityfromlocalcompetitionsCustomersatisfaction

branding stays for establishing a differentiated as well as significant presence within the market
in order to attract and retain a large consumer base.
Branding as a marketing tool entails to several of importance;
Promoting recognition
Stronger branding aspects are likely to have impedance over the customer through producing
them the desire to have repeated marketing. With more promotional contents, familiarity of
entities are increased which in turn stays attractive for customers and thus easing the sales.
Separation of entity from local competitions
Stronger branding would be important for levelling up the organization's developmental stages.
There can be switching to national level from and higher revenue generation from a low level
with low customer base. Thus competitive advantage would be leveraged to great extent.
Customer satisfaction
Branded products always stay as the priority of customers, hence a high value organisation
would be mostly targeted for entailing to most of customer attraction and thus entail to better
revenue generation.
The emergence of branding in business practices had been under the purpose of changing the
perception of customers regarding that specific brand and thus helps increasing the awareness. In
terms of such, few factors such as generation of new customer along with sustaining growth of
business scales with respect to improvisation of employee satisfaction and pride can be
considered for branding concept emergence. Having satisfied employees within the organisation
on account of better reputation and organisation structure due to branding are likely to increase
productivity level. On similar context, new customer generation are likely to put their efforts
through widening the business awareness of that particular brand thus leveraging competitive
advantage and more revenue generation.
P2: Analysis of key components of brand strategies for management of brand equity
The key components for building up of brand strategies can be related target audiences, brand
positioning, brand promises, brand voicing, brand perceptions and their valuations. In terms
of M&S, they had been found with down drops within their revenue scales by 1.2% while there
had been incurred a downfall of 0.1% in food sales. The company had incurred more issues
regarding their sustainability of equity rather than having any issues of brand management.
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Figure 2: key components of brand strategies
(Source: created by researcher)
The concept of brand equity subtends to having valuation of brand through sustaining better
brand name along with its recognition among the customer and market prospects. The advent of
internet had led to online price comparison which had given strategic advantages to other
retailers to gain profits through low pricing strategies. Further, lack of investment from M&S
regarding revocation of their outlets and raising competitions had led to closure of 300 shops. In
order to eliminate such, few strategies can be divided in accordance;
Building awareness
M&S can be facilitated with basic of changes such as subjecting to their advertising standards.
Subtending the product in accordance to the need of customers can leverage better brand
awareness. There can be made market researches by M&S along with limiting the situational
overloads.
Reshaping of customer’s opinion
A market research can be beneficial to access their customers opinions in accordance of which,
brand reshaping can be considered. Brand reshaping can be concluded as changing product
specification and changing the type of brand according to customer’s needs. This would be
beneficial to engage larger customer base along with detailing out revenue generation.
Going with trends
Targeting specific audiences with making efforts of maintaining product quality and quantity
according to rising competitive level can also leverage brand equity for M&S. Making promises
with reference to product quality can attract a larger customer base thus sustaining business
growth and revenue growth.
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M1: Evaluation of brand management with application of theories, concepts and
models
As opined by Dinnie (2015:13), the overall aspects of brand management stays in line of
customer psychology and their demands and cultural aspects which the organisation requires to
cater for their growth and expansion. In terms of such the theory of brand loyalty can be taken
into consideration. It confers with the fact that brand management is dependent over positive
customer behaviour against which factors such as behavioural aspects, brand evaluation and
emotional attachment stays effective. Against the issue of down falling sales of M&S, there can
be taken consideration of mentioned factors.
Figure 3: The theory of brand loyalty
(Source: created by researcher)
Regarding management of behavioural aspects, M&S can limit their market within a specified
customer range and thus can produce products according to their need thus not attacking
financial stability. This can also be conferred as a diversification strategy and M&S can leverage
new products for raising their sales. In terms of brand evaluation, a relatable customer survey
along with reviewing of data from social media with assessment of external marketing material
can produce better brand evaluation. An idea can be obtained regarding the root cause of
branding issues (Hirschman, 2016:17). In terms of sustaining emotional attachment,
collaborative approach where customers would be given higher priority and encouraging their
opinions can produce better customer-organization relationship.
M2: Examples of brand building on organizational context
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One example of brand building from M&S can be regarded as the unification of culture and
brand after their massive sales and profit degradation by £66.8m at a rate of 62.1%
(Marketingweek.com, 2019). In light of their strategy, the plan is to entail better recruitment and
r selection along with pertain to technological aspects. A radical reshaping plan sustaining the
closure of 100 clothing stores also stays within their strategy.
Another example can be leveraged from TESCO; one of the competitors of M&S. TESCO had
been with the strategy of opening discounts stores in order to revamp their brand and to pull up
competitive levels. A use of 2600 products compared to 25,000 products of supermarket stays as
the ultimate strategy with cheapest of prices for building up of positive customer relationship
(Theguardian.com, 2019). Though discount store opening can be of financial stress to M&S,
instead they can procure the concept on a lower scale with seasonal offers and discounts.
Another example can be leveraged in favour of New look. The company is with strategy of
opening gender specific stores in order gain competitive advantage. The subjection to menswear
stores were a better strategy entailing to 20% raise in their profit scales (Theguardian.com,
2019). M&S can follow up this strategy in order to have impedance over their sales against less
loss.
LO2: Analysis of organizing procedures of brand portfolios and management
of brand hierarchies (strategies of brand portfolio, equity and hierarchy
management)
P3: Analysis of various strategies of brand portfolio, equity and hierarchy
management
The concept of brand portfolio management can be leveraged through 3 models namely house of
brands, branded house and hybrid strategy;
House of brands
The house of brand model is comprised of sustaining multiple subset of parent brand in order to
generate higher customer base along with sustaining better generation of revenues and wider
business expansion (Åsberg, 2015:611). In light of this, business example can be highlighted in
favour of Unilever, a retailer of UK. There are available sub brands of Unilever such as Dove,
Lifebuoy and Lipton teas. The sub brands are eligible to sustaining competitive advantage on
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higher level along with managing the reputation of company in case of any bad press. A better
target audience is liable to be achieved through use of this strategy.
Branded house
The theory of branded house favours for the firm to be the brand by itself. There is no formal
branding of the services or the market sectors with reference to primary branding
(Christodoulides et al. 2015:309). On this account, examples can be considered in favour of
Apple or Google. The corresponding logo of “i” used by apple stays significant to highlight their
products for example, iphones, itunes and Macs. The organization is considered to be a single
branded one with a single logo mark with messaging and marketplace positioning. In light of
this, highlighting case of M&S, the one firm strategy would be beneficial for having lower stress
on financial prospects.
Hybrid strategy
According to Dimitriu et al. (2017:851), the hybrid branding strategy is termed to be the
assimilation of multiple branding architectures such as sub brands, freestanding brands along
with master brands. The strategy is workable in case of having any merger and acquisition
aspects. One example of Hybrid branding strategy usage can be defined in favour of Microsoft.
Multiple architecture of brand such as Microsoft project or internet explorer is some of master
sub brands of Microsoft. It stays effective for Microsoft to have better leveraging of corporate
names and brand recognition.
M3: Critical analysis of brand portfolio, equity and hierarchy management
The primary branding models that have been described above are branded house, house of brand
and hybrid strategy where hybrid strategy is conferred to be the assimilation of both branded
house and house of branding concept. In case if M&S uses the branded house strategy, hen
according to Dinnie (2018:31), it would be leading them efficiency in business through a single
marketing strategy with elimination of confusion along with competitions through sustaining the
offerings under a similar brand. However, as argued by Godey et al. (2016:5835), the model
would be disadvantageous through sustaining brand ambiguity. Thus for M&S it can be leading
to higher confusions regarding brand identity for example whether its a food retailer or a fashion
retailer.
In case if M&S uses the House of Brands, the company would be benefited through a wider
reach of audiences which would leverage them greater consumer base along with be allowing it
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for taking major risks in business as pitfalls would be negligible. However as counter argued by
Lee et al. (2016:17), M&S is likely to have negative impedance through having isolations. Less
availability of power behind the parent company are likely to put negative bolstring over the
individual brand reputations. However similar issues of brand recognition as availed from
theoretical concept of Branded house can be contested in favour of House of Brand strategy.
LO3: Domestic and international expansion of brands (brand extension)
P4: Evaluation of brand extension over global and domestic level
The concept of brand leveraging can be assessed in form of a strategy which is used by
companies to have use of existing brand recognition power for supporting entry of company
within a new category of product through communicating product information’s. M&S can entail
to a few techniques in order to have brand leveraging namely vertical extension, brand extension
and line extension;
Vertical extension
Vertical extension would be favouring M&S through making entrances within the retail sector by
use of premium segments such as launching of new product (Tatoglu et al. 2018:449). This
would be advantageous for entailing higher customer base and highlighting their brand
recognition.
Brand extension
Brand extension would be leveraging establishment of brand names within nw segments of
product categories. There can be both retaliation as well as no relation to that of category of
products.
Line extension
Line extension would be prompting M&S to have new formulation of products however sticking
to similar products lines. For example, they can bring out new range of shampoos seeking to
reduce itchy hairline and dandruff. This would be beneficial for sustaining customer's interest
within dull products also.
Brand strength and weakness of M&S
In terms of SWOT analysis, M&S strengths can be seen with diverse workforce along with
multichannel presences in order to have their brand management. The use of mortar and
franchising are likely to have positive influence over their marketing strategy along with produce
them better revenue scales within their domestic province of UK (Marksandspencer.com, 2019).
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Some popular product labelling such as North coast and indigo collection stays effective for
keeping the company into customer’s notice. However, weakness sustains in their international
marketing strategies. Though they have undertaken popularity within Middle Eastern and Asian
markets, their traditional clothing’s sales strategy were unfavoured towards the Middle Eastern
provinces. Here the revenue generation stays slump for M&S.
M4: Critical evaluation of various techniques required for brand extension
In viewpoint of Wang et al. (2015:237), brand extension would be advantageous to M&S
through increasing likelihood of gaining trail and distributions. This would be effective for
increasing interest of customer along with establishing brand image of M&S. However, as
argued by the techniques would be disadvantageous to M&S through reliability loses in case if
brand is extended too much of lengths. There might not be adequate investment from
management in order to sustain the trail of having brand equipping.
In terms of line extension strategy, though it would be leveraging positive scales for giving the
customers their interests in dull products through producing new line of products, it would be
disadvantageous through disturbing brand loyalty. This would be leveraging the customers to
seek varieties which might disrupt the management through addition of more products variants
(Zenker & Braun, 2017:271).
LO4: Brand value management and measurement techniques (brand equity)
P5: Various techniques for measuring and managing brand valuation
Shift to in-store marketing from CRM valuations
An organisational example can be referred regarding this context. TESCO, a competitor of
Marks and Spencer are with decisions of having shifts to BBH which can offer the company
branding solutions on an integrated approach (Marketingweek.com, 2019). This would be
evident for TESCO to make communications with that of their shoppers through ad campaigns.
The price cuts along with use of in-store staffing can be of greater advantage to TESCO through
leveraging financial stress deductions along with gaining competitive advantage. M&S can
leverage this strategy in order to have their increment of customer base and to have growth of
their brand valuations.
Dependence over supply chain
Another strategy for brand equity measurement can be taken in form of sustainable packaging
sourcing from international bodies and markets which would be leveraging business expansion a
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as well as entailing to new market fancies (Datta et al. 2017:3). This strategy had been leveraged
by M&S in order to have impedance over their supply chain management. On account of this
strategy there had been wastages cut by 25% along with energy saving by 25%. In light of this, it
can be addressed that there are available redundancies for sustaining product growth which in
turn can leverage beading on positive scales (Theguardian.com, 2019).
M5: Critical evaluation of various techniques for measuring and managing brand
valuation
The techniques mentioned are dependence over supply chain and shift to in-store marketing from
CRM valuations. While on one side, the supply chain management stays advantageous for M&S
through improving competitiveness along with sustaining new market reaches, it stay
disadvantages through issues in measurement of investment benefits along with quantifying the
costs compelled on the business (Zhang, 2015:5). This would be destructive for business
reputation and recognition.
The in-store marketing if enabled by M&S are likely to have advantages through gaining
maximum customer numbers as preferences of in store marketing are more preferable on
suburban levels. Thus competitive advantages would be leveraged. However, according to
Tatoglu et al. (2018:451), in terms of disadvantages, low yield would be obtained with less
product variations which can subject to customer dissatisfaction and thus hamper brand
recognition and valuation.
D1: Critical evaluation on comprehensive understanding of branding concept on
organizational context
The concept of branding is defined to be the procedure which is concerned for the creation of
unique image and identity regarding any product. However according to Zhang (2015:7), a high
value organisation would be mostly targeted for entailing to most of customer attraction and thus
entail to better revenue generation.
Conclusion
From the above content, major conclusions can be drawn in favour of brand management and its
advantages and disadvantages in terms of M&S organisation. The key components for building
up of brand strategies can be related target audiences, brand positioning, brand promises, brand
voicing, brand perceptions and their valuations. The concept of brand leveraging can be
concluded in form of a strategy which is used by companies to have use of existing brand
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recognition power for supporting entry of company within a new category of product. Theory of
brand loyalty conferred with the fact that brand management is dependent over positive customer
behaviour against which factors such as behavioural aspects, brand evaluation and emotional
attachment.
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