Brand Management Report: Brand Strategies for Optimum Impression

This report delves into the multifaceted world of brand management, focusing on strategies and techniques used by Optimum Impression Ltd., an advertising agency. It begins with an introduction to brand management and brand equity, explaining their significance in the marketplace. The report then examines brand portfolio management, brand hierarchy, and brand equity management strategies, providing insights into how companies like Nestle manage their brands. It explores different branding strategies such as house of brand, endorsed branding and mixed brand strategies. Furthermore, the report analyzes the application of Keller's Customer-Based Brand Equity (CBBE) model to Apple, illustrating how brand equity is built through various stages. The report also discusses brand extension, and techniques for managing and measuring brand value. The report provides a comprehensive overview of the key elements of brand management.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 (Covers P1, P2)..................................................................................................................1
TASK 2............................................................................................................................................4
P3 Different strategies of portfolio management, brand hierarchy and brand equity
management................................................................................................................................4
TASK 3............................................................................................................................................7
P4 Evaluation of collaborative management of brands in partnership at national and
international level........................................................................................................................7
TASK 4............................................................................................................................................9
P5 Various techniques of managing and measuring brand value...............................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Brand management is defined as the process which involve planning related to the
marketing of brand in industry. It refers to the analysis and planning of how a brand is perceived
by the customers in marketplace which help in developing a good relationship with target
market. This report is relays over Optimum Impression Ltd., an advertising agency which are
planning to make an article for new marketing brochure (Abrahams, 2016). For this it involves
detailed description regarding brand portfolio management, hierarchy and brand equity. In
addition to this it also involve an explanation regarding brand leverage along with its strength
and weaknesses with suggestions for improvement. It also involve discussion regarding
evaluation of different techniques for management and measurement of brand.
TASK 1 (Covers P1, P2)
BRAND IS POWER
Introduction
Brand is refers to as a unique, sign, design, symbol or combination of all for creating an image
which support company in differentiating its product from that of others. On the other side the
Brand Equity is something that holds commercial value and which derived from the perception
of brand name of a particular product and not from the product. Brand Equity is basically
depend upon the effort directed by Marketing department through conducting several marketing
activities and social programs in order to communicate about product offerings, their price and
benefits its offers.
There are number of components which are used in managing the Brand Equity such as
selecting and target the audience to offer products, provide clear and accurate information
regarding the promise which brand is making, identifying the brand perception that customers
hold, educating about brand power to customers and finally the loyalty that brand gains from
customers (Annie Jin, 2012). This loyalty is maintained by tanking customers or by providing
them special discount or gift for their loyalty.
Main Body
Branding is very crucial for an organisation as it support a company to create its identity within
market place and stand apart from the crowd. In addition to this it also support in success and
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growth of a company. The benefit that Optimum Impression Ltd get through branding is
mentioned below:
 Branding support in creating customer preferences regarding the product or services if a
company who is offering commodity holds up higher brand image. The consumers
firstly seek toward the brand image of Optimum Impression Ltd. before purchasing
services as it brand image depict the quality of services.
 With the help of effective branding a company can leverage the power of its brand
image in context of entering new segment, gaining new licence or co-branding.
 By using branding the Optimum Impression Ltd will be able to increase its customer
base as a brand with higher recognition in marketplace attract customer to become a
part of it and avail effective services.
Optimum Impression Ltd., work as an advertisement agency that support brands in marketing
and promoting their product or services from different measures which further support in
enhancing the brand value within the industry. Optimal Impression Limited is promoting the
Brand i.e. Apple which is discussed under this article. For identifying the importance of Brand
Equity of Apple Keller's Customer Based-Brand Equity Model is used. This model shows the
building of Brand Equity with the help of Pyramid which is basically done by understanding the
need, requirement and implementation of strategies accordingly. The customer base of Apple is
relatively higher but it doesn't get build up within few days as it take longer time to target and
branding the product which contribute toward forming strong brand equity. This model includes
six levels which are mentioned below:
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(Source: CBBE Model, 2019)
1. Salience: Apple enjoys a greater brand salience on the whole. Their is higher recall on
the time when comes to recognition of brand instantly when customers link it with an
apple with bite on a product. This feature help in enhancing the brand equity at
marketplace.
2. Performance: The performance of Apple in market is excellent and highly appreciated
because of user friendly, unique operating system, durable and provide a option to
perform multiple task at one time (Asmussen and et. al., 2013). That's why the rates are
relatively higher in brand performance category.
3. Imagery: The brand image is basically an impression which a company develop in the
mindset of its customers. Despite of its design of gadgets it offer there are certain other
attributes which are consider as sign of solid brand that maintains key value along with
the fact product get easily identified by people. These includes social status, High end
products, exclusivity, unique features etc. which attract people toward purchasing of its
product or services.
4. Judgement: Apple have high product quality and brand image because of which
customer feels secures and extreme happiness while buying it. The judgement of
customers toward the product offered by Apple is positive as it involves high quality
work due to good precision and engineering (Balmer, 2012). But some contradict facts
that Apple is more product centric than that of customer centric which sometimes create
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Illustration 1: CBBE Model

negativity in the mid of customers. In order to deal with this Apple focuses toward
offering more and more advanced features in its gadget to attract customers toward its
benefit despite of viewing product cost.
5. Feelings: Apple is also connected with the feeling of customers who purchase it as the
quality of product holds a high standard in society as it is premium product and also
provide features which is able to satisfy the expectation of customers. It develop a feel
of proud, comfort and satisfied which creates intense Active loyalty which in turn
enhance brand equity.
6. Resonance: Apple holds a strong customer loyalty that includes teenagers to senior
citizen. Among young people it is considered as a sign of higher status within the society
as it adds into the personality of a particular person. So this one is also a quality which
differentiate Apple from others and support in strengthening its brand equity.
Apple started extending its range of products as its brand image started developing within the
market (Braun, Kavaratzis and Zenker, 2013). The company extended its product from
macintosh computers to customer handy gadgets such as iPhone, iPod, Tablets etc. The product
expansion of Apple take a larger market share that provided customers with several benefits but
after this course of few years, the market share of Apple suffered slow down after its peak in
1990. After this by 1997 Apple launched its own operating system under the name of NeXT
software. This has provided a new twist to market performance of company and later on it
started bring several new products as per the customers need and expectations by maintaining
its own operating system in the gadgets that it offers. These includes MacBook, smart watch,
Apple TV, iPhone, iPad etc. Despite of this it also bring certain software to enhance the
working of its gadgets such as iTunes, google Play Music, Spotify, Tidal and other streaming
music platform (Buil, De Chernatony and Martinez, 2013). These all contributed toward
developing a stronger brand image in market place and enhancing the brand equity among
customers.
Conclusion
Branding is basically involve group of activities and features that all contribute toward
developing the image of company in front of its target customers. Branding is consider as
integral part of marketing which support in delivering the message of company to the customers
regarding the promise they are making to its market. This is because when a product sets in the
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mind of customers then it motivate them to purchase particular product to fulfil their
expectations. In addition to this it also support in creating the loyalty of customers toward the
product and because of this branding is consider as most crucial marketing tool.
Despite of memorable and eye-catching logo, a goof branding support in enhancing the value of
a company, direct nad motivate employees, support in approaching the customers easily and
also contribute toward formulating a goodwill of company within marketplace. This is because
why the Branding emerged in the business practice. The importance of branding does not get
developed in few days, the importance of branding is known to the entrepreneur when they
compare with other who are having positive branding. Determining the importance of branding
was a slow process but as the time passes the corporate get clear about the purpose and benefits
which it holds and role it plays in success. This is just because of branding which makes
customer differentiate the product from that of other that are present in market which further
support in introducing the new product in market and increasing their loyalty toward a particular
company's product. This is the main reason because of which Branding has emerged into the
business.
TASK 2
P3 Different strategies of portfolio management, brand hierarchy and brand equity management
Portfolio Management
Brand portfolio is refers to the formulation of strategies through which the managers
control the brand image of company which support in formulating long term relationship with
customer and sustainability at marketplace. Nestle has stronger brand image within the industry
as it deals in confectionery product over customers demand (Dessart, Veloutsou and Morgan-
Thomas, 2015). To make brand successful among other competitors some brand portfolios are
being accepted by the managers of Nestle which are mentioned below: House of brand:- Nestle offers number of products such as Aero, Crunch, Milky-bar,
Animal bar etc. and as per this portfolio different strategies are being formulated for
each product which help in making product more famous then the company. Nestle
mention its name over every product because of difference in term of its price, quality
and targeted customers.
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 Endorsed branding:- This model involve use of some association's name that make
product relevant to market. Like, Nestle deals in coffee and after entering into chocolate
sector, manager prefer to join its marketing with coffee which provide information to
the customers (Dinnie, 2015).
 Mixed brand strategy:- It is a combination of all the strategy which is used as per
requirement and there is possibility of branding implementation with combination. It is
based on ad-hoc branding policies.
Despite of all these factors the Brand image of Nestle can be extended in two forms
which are mentioned below: Breadth extension:- This type of extension involve enhancement of range of product in
term of different category. Like Nestle deals in coffee and then it started offering
chocolates.
 Depth extension:- This type of extension involve increase in number of similar product
but different in term of characteristics. Like Nestle offer variety of chocolate such as
Gourmet, Hot Pocket, Aero etc.
Brand Hierarchy
It refers to the pictorial description regarding different product or services offered by a
brand which help in differentiating product or services as it make easier for the customers to
understand about the product which nestle is offering (Elliott and et. al., 2015). The Brand
Hierarchy of Nestle is mentioned below: Corporate brand- According to this, there is difference in product as per their name for
customers. For e.g. Aero, Milky-bar etc. are known under single name i.e. Nestle. Family Brand- It means that customer are aware about product name but are not aware
about parent company. Like, Maggie Soups, Ketch-ups are recognised under the name of
Maggie But customers are not aware that Maggie is a associated with Nestle. Individual brand- According to this model, product holds some unique or special value
though variety of products present under similar brand. In case of Nestle, Maggie is
famous product and the perception of customers is Maggie noodle that take two min to
cooked (Heding, Knudtzen and Bjerre, 2015). But there are other products such as Soups,
spices etc. are their with individual branding, it is simpler to customise product and
marketing policies make it easier to aware customer on basis of logo and its name.
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 Modifier- Customers are different in term of their need and to deal with that strategies are
being formulated to offer product for providing customer satisfaction. In case of Nestle, it
offers Yogurt but as per demand managers are thinking to offer custard as well.
 Product descriptor- Product is form up with several ingredients and this provide
description about it to customers. It helps in compete with other rivalry and increasing the
customer trust toward Nestle. Over the label of Kitkat there is a description regarding the
ingredients along with quantity it involves.
Managing Brand Equity
Nestle is a well-known brand which holds higher demand for its product as per the
goodwill it holds. But despite of this there is higher competition in market from Cadbury, Mars
etc. that make it essential for the company to manage it brand equity so that market share can be
maintained (Hutter, Hautz, Dennhardt and Füller, 2013). Hence for the management of Brand
Equity following strategy can be used: Continuous differentiation:- It is one of the best way to manage brand equity as
customer prefer latest products. So by performing continuous improvement in product
this become easier to satisfy the customer and maintain long term relations. For instance,
Nestle continuously bring something new in their coffee which keep customer bind to it
and brand equity can be maintained for longer duration.
 Building Brand awareness:- The Brand awareness is very crucial for keeping customers
aware and connected to the company. Nestle brings up several products and perform
advertisement to create awareness about it which positively affect the sales and revenue.
But to maintain market position it is required to continuously work over improving it so
that it can deal with increasing competition. For this manager of Nestle use social media
marketing where it regularly interact with customer and take feedbacks for improvements
which support in increasing brand awareness.
TASK 3
P4 Evaluation of collaborative management of brands in partnership at national and international
level
BRAND LEVERAGE
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It refers to the actions that undertaken by manager of association to enter in new segment
and get succeed because of their brand image. It help in providing customers trust over product
as per brand name which make it is easy to sale and market product under correct brand image
(Jugenheimer, Sheehan and Kelley, 2015). For example, for launching its ketch-up, soups Nestle
prefer to market it under the brand name Maggie which is a part of brand leverage. As Maggie
already have good brand image in market which help in gaining trust of consumer toward new
products which also support in increasing sales and profitability of product. There are basically
two ways of brand leverage:
Line extension Brand extension
It refers to the launching of new product of
same kind. For example Nestle offer different
type of noodles under the name of Maggie.
It means introducing new product that is not
related with existing product or services
category. For example, Nestle deal in several
product category such as chocolates, coffee
powder, noodles etc.
There are different type of products that satisfy
the varying customer need by adjusting
different features in existing product.
It is best way to expand business by increasing
customers which support in maintaining
sustainability in industry by competing with
other brands (Kapferer, 2012).
Line extension is riskier as compare to brand
extension as existing product with new features
which makes product different and satisfy the
demand of society.
There are more possibility of failure as brand
extension involve launching of totally a new
product in marketplace.
Strength of leveraged brand
 The marketing of new product is done with the name of brand and tag-line of established
brand. The major benefit is that managers of leverage brand are not required to put more
emphases over increasing brand image as it is existing.
 Leveraged brand i.e. Nestle can market new products with established brand as it holds
positive brand image in marketplace so it would be easier for Nestle to expand in market.
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Hence leverage brand make it easier to establish brand which help in increasing the sales
and costumers.
Weakness of leveraged brand with suggestions
 Leveraged brand also increases the expectation of customers as Nestle is a trusted brand
and if it bring new product then customers expect same quality that it is offering in other
products (Mosley, 2014). In case the company won't provide product up to mark then it
affect the business operation negatively in marketplace. For this nestle must perform
market research to determine need and expectations of customer in order to offer
products accordingly.
 More innovation under one brand can affect the sale of other existing product which
results into dilution of base product because of new and innovative commodity. To deal
with this company must promote the base product along with new one that support in
maintaining the brand value of existing product.
Collaborative and partnership agreement
Collaborative agreements is one in which two or more people get agreed over a common
objective. It is basically a medium through which skills, knowledge and resources get enhanced
for making best services. Nestle can collaborate with other firms for accessing raw material,
resources, knowledge for improving the quality of services at domestic level. At international
level the collaboration with other companies will support in dealing with difference in term of
taste, preference, culture of customers so that product can be offer as per demand.
On the other side partnership means agreement between two or more people in order to
operate a business with similar aims or objectives. In context of Nestle, it maintain partnership
with local people for factory space and local retailers with specific commission which support in
offering products to customer effectively (Qian, 2014). At national level partnership agreement
can be managed between two brands having agreement regarding sharing of profit or loss. At
international level, if two brand hold partnership agreement then they can manage work properly
by acquiring knowledge regarding the legislator requirement of country where business operates.
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