Procter & Gamble Brand Management: Building and Managing Brand Equity

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BRAND MANAGEMENT
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Table of Contents
LIST OF FIGURES......................................................................................................3
INTRODUCTION.........................................................................................................4
LO1............................................................................................................................. 5
P1 TO EXPLAIN THE IMPORTANCE OF BRANDING AS A TOOL OF
MARKETING AND ITS EMERGENCE IN BUSINESS PRACTICE AT PROCTER &
GAMBLE..................................................................................................................5
M2 THE MANAGEMENT OF P&G BRANDS BY APPLYING THE THEORIES,
CONCEPTS AND MODELS....................................................................................7
P2 THE BASIC COMPONENTS OF SUCCESSFUL BRAND STRATEGY TO
BUILD AND MANAGE THE BRAND EQUITY.........................................................8
M2 APPLICATION OF APPROPRIATE EXAMPLES WITHIN AN
ORGANIZATIONAL CONTEXT...............................................................................9
P3 TO ANALYSE THE PORTFOLIO MANAGEMENT STRATEGY, BRAND
HIERARCHY AND BRAND EQUITY MANAGEMENT OF P&G............................11
M3 TO APPLY MODELS, THEORIES AND FRAMEWORK FOR PORTFOLIO
MANAGEMENT, BRAND HIERARCHY AND BRAND EQUITY............................12
LO3........................................................................................................................... 16
P4 MANAGEMENT OF BRAND OF P&G BOTH AT DOMESTIC AS WELL AS
GLOBAL LEVEL....................................................................................................16
M4 THE USE OF DIFFERENT TECHNIQUES USED TO LEVERAGE AND
EXTEND THE BRANDS OF P&G.........................................................................17
LO4........................................................................................................................... 18
P5 THE ANALYSIS OF DIFFERENT TYPES OF TECHNIQUES FOR
MEASURING AND MANAGING THE BRAND VALUE OF P&G...........................18
M5 THE TECHNIQUES APPLIED IN P&G TO MEASURE AND MANAGE THE
BRAND VALUE FOR DEVELOPING A STRONG BRAND...................................19
CONCLUSION.......................................................................................................... 20
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REFERENCES..........................................................................................................21
LIST OF FIGURES
Figure 1 Brands of Procter & Gamble Company.........................................................7
Figure 2: House Brand Model of P&G.......................................................................12
Figure 3: Portfolio of P&G.........................................................................................13
Figure 4: Brand Hierarchy of P&G.............................................................................14
Figure 5: Brand Equity of P&G..................................................................................14
Figure 6: Brand Value of P&G in Personal Care Products........................................19
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INTRODUCTION
This report contains the in-depth knowledge of brand management in the well-known
organization named Procter & Gamble Company The branding strategies and the
challenges that are faced for improving the marketing strategy and the solutions
required to be considered to increase the demand of its brands are being discussed.
Further, the emphasis will also be laid upon the management of the brand done by
Procter & Gamble and build the brand equity image in the UK economy. In this
business report, as the marketing manager of Marks & Spencer, the process of
managing and forming the brand is also discussed. The arrangement of the brand
and developing the brand hierarchies is also explained in the further segments. The
techniques are being analyzed for the brand value management of the organization.
Procter & Gamble Company is the US company multinational corporation of
consumer goods which was established in the year 1837 by William Procter and
James Gamble. The company also serves in the UK and have headquarter situated
in England. The products and services served by P&G are health care products,
hygienic products which have several segments that include beauty, home care and
fabric, health care, baby and family care products and so on. The company operates
its business in more than 25 countries across the world. The objective of P&G is to
cater to the need of the customers by serving the best-branded products and to gain
a competitive advantage (P&G, 2019).
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LO1
Introduction
Being appointed as the marketing consultant of Procter & Gamble, this segment will
be emphasized on demonstrating the formation of a brand name by facing the
challenges. The importance of branding with the help of marketing theories and
concepts will be explained.
P1 TO EXPLAIN THE IMPORTANCE OF BRANDING AS A TOOL OF
MARKETING AND ITS EMERGENCE IN BUSINESS PRACTICE AT PROCTER &
GAMBLE
Brand:
Brand means the identity of the products and services which derives its value. There
are many products and services which are available in the market and each product
has a brand name which defines the quality and quantity of the product. The brand
name creates loyalty and trust, connects the customers emotionally with the
products and services. But all this solely depends upon the advertising, marketing
and promoting the brand name in the market. It creates the product value and
differentiates it with the other products with the same features (Rosenbaum-Elliott et
al., 2015).
Brand vs. Product:
A product is a specific item that is served and sold in the market with the motive of
profit earning. On the other hand, the brand is the nomenclature of the entity that
defines the products’ characteristics and differentiates it from the products of other
company and provides the valuable identity to the products in the market
(Rosenbaum-Elliott et al., 2015).
Brand Equity:
Brand equity defines the total value of the brand as an individual asset. It is identified
by the perceptions of the customers towards branded products and services. The
effect of the brand is recorded in the financial books as it is an intangible asset as
goodwill, market share, prices and demand and profitability (Lin, 2015). PG’s brand
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equity depends upon the brand awareness, brand associations, brand loyalty, brand
quality and other assets like patents, trademarks, etc. Brand equity caters the needs
and demands of the customers of PG and maintains the harmonious relationship.
Thus brand equity is very essential for the brand not only because it enhances the
market share but also because it enhances the market valuation of the company
(Lin, 2015).
The importance of branding as a marketing tool:
The business of PG depends on the sub-brands it serves that differentiate the
products from other products to consumers across the world (Brown et al., 2017).
Branding is not only comprised with a number of customers targeted in the market
but it also focuses on connecting the customers to the products and the brand
emotionally and enhances the credibility of the product among the competitors. For
being successful, the branding of P&G depends upon satisfying the needs and
demands of the customers. This is possible through implementing the strategies to
conduct market research and develop the brand name in the market (Brown et al.,
2017).
For introducing the strategy of a marketing plan, the brands served by the P&G
justify the objective of the business and ensures the company to link the plans with
such defined objectives (Brown et al., 2017). Therefore in the precise term, with the
help of following the give steps brand building can be achieved:
 To develop the targeted market of P&G for analyzing the needs and wants of
the customers that will contribute to the brand value of the company.
 To analyze the segmentation from where the brand values are to be
developed (Brown et al., 2017).
 To evaluate the competitors along with their products and the customers’
perceptions towards the brand.
 To ensure that proper satisfaction is provided to the customers by the brand
value.
 To manage the changes that are required in the company after analyzing the
portfolio of the competitors (Brown et al., 2017).
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Figure 1 Brands of Procter & Gamble Company
(Source: Daniel, 2016)
P&G brands provide a competitive advantage to the company not only in the
domestic market but also in the global market. For any company it is impossible to
achieve the top position in the market with simply having the brand name, it also
requires proper marketing and brand management. Marketing strategies help in
building the brand name of the company (P&G, 2019).
M2 THE MANAGEMENT OF P&G BRANDS BY APPLYING THE THEORIES,
CONCEPTS AND MODELS
In this segment, the theories of branding are discussed that are to be followed and
implemented by P&G for managing the brand value in the market (Heding et al.,
2015).
Theory of Brand Loyalty:
In this theory, the psychological relationship of customers with that of P&G brand is
explained. According to this theory, if the approach of the customer towards P&G is
positive than the reason behind can be described in three aspects; due to emotional
attachment, brand evaluation and behavioural aspect of customers. If the customers
are attached emotionally with the brand then they will always choose the products of
P&G and their perspective will never change (Heding et al., 2015).
In P&G’s marketing, brand loyalty involves the attachment, bond and commitment of
customers to use the P&G brand continuously for a longer period of time.
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Loyalty includes two types of factors; attitudinal and behavioural. Attitudinal loyalty
defines the customers’ willingness to buy the products and services at any cost,
while behavioural loyalty defines the products to be re-purchased (Heding et al.,
2015).
Theory of Branding:
In this theory, the typical features of brand management of P&G are discussed.
 To assign a particular brand name for defining the business standards.
 To spread brand awareness and cater to the needs and demand of the
customers.
 To maintain relationships for a longer period with the customers.
 To sustain in the market for gaining a competitive advantage (Heding et al.,
2015).
Value-based Brand Theory:
This theory is comprised of the value-based brands such as P&G that provide the
value to the customers. As per this theory, customers should be the priority for P&G
to gain a competitive advantage. The operative strategy at P&G states that “Higher
the customer base, higher the brand value” (Heding et al., 2015).
P2 THE BASIC COMPONENTS OF SUCCESSFUL BRAND STRATEGY TO BUILD
AND MANAGE THE BRAND EQUITY
P&G is the recognized brands not only in the UK market but also across the world.
When P&G pays goodwill amount or premium for purchasing the brand, it is a part of
a strategic decision. The accountants of P&G assign the value to every asset of the
company. P&G capitalizes the entire value paid for acquiring the business and
depreciate it over a long period (Rosenbaum-Elliott et al., 2015).
Branding is the same as the concept of equality, justice or success. There are no
specific components described for the success of brand management but the
managers at P&G has analysed some components that can contribute to the
success of brand name of the company (Rosenbaum-Elliott et al., 2015).
For the marketing efforts of P&G, it is required to build the results-oriented strategy.
The company is required to foster key components like public relations, digitalization,
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search engine optimization and social media for developing the brand strategy at
P&G (Myers, 2019). The key components for developing the successful brand
strategy at P&G are explained as under:
Public Relations:
To have a strong public relation which provides the reputation to the P&G
management is done with the help of promoting leadership, corporate news and so
on. The initial step to build the strategy of public relations is to establish the business
goals, evaluating the primary performance and identifying the target audiences
(Myers, 2019).
Digital Marketing:
To promote the brand value and strategy, the P&G should generate the contents and
resources like blogs, white papers, leadership content which can be used by the
experts. With the help of digitalization techniques, the white paper can be promoted
like campaigns of pay per click and ads of remarketing (Myers, 2019).
Search Engine Optimization:
The other key component to develop the brand strategy in P&G is search engine
optimization that depends on the contents that have high quality and also provides
the authorisation by leading search engines such as Google (Myers, 2019).
Social Media:
It is the most important component which shares the perspective of P&G and
influences the personal level of customers. Through social media with useful
contents builds a valuable presence and provides maximum followers (Myers, 2019).
M2 APPLICATION OF APPROPRIATE EXAMPLES WITHIN AN
ORGANIZATIONAL CONTEXT
To build a brand at the international level, a company requires more apart from
developing a website into various languages. In this segment, some of the
successful companies who focus on global strategies for developing the brand
consistently and to get acceptable universally is discussed (Rogers, 2017).
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During the launching of Airbnb, the company faced lots of challenges in convincing
and influencing the people from all over the world for staying at stranger's home. But
the CMO of the company, Jonathan Mildenhall took the success of the company to a
global level and recently they are covering around 190 countries all over the world in
its portfolio (Rogers, 2017). The key strategy of Airbnb was to develop trust between
the host communities and travellers. It also introduced a logo ‘Belo’ that defines the
availability of belonging to the people anywhere in the world (Rogers, 2017).
Apple is the most successful brand across the world. Its products' size is designed in
such a manner that it is suitable for all. The instinctive and minimal approach of the
company resulted in a huge demand for the products. To provide services to
worldwide customers, Apple has introduced the site for all the customers and has
also established the outlets for serving the local customers (Rogers, 2017).
Another example represents Starbucks the strongest brand in the world has 20,000
stores in about 63 countries and which serves the coffee marked from China and
Brazil. Instead of having the cultural importance and acceptability of tea, Starbucks
consistently maintained a brand. It got a remarkable presence in Asian countries due
to the seating arrangements of the café (Rogers, 2017).
The oldest company Coca-Cola operates globally and focuses on spreading
“happiness” and “sharing”. This made the brand to be recognized at the global level.
At the time of the FIFA World Cup, the company featured in the ads the local
celebrities with context to the local culture which increased the brand name of Coca-
Cola (Rogers, 2017).
Conclusion
Therefore, this segment signifies the importance of building the brand value in the
global market and for that marketing strategies are required. Thus there should be a
proper balance between localized strategies and communicating internationally.
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P3 TO ANALYSE THE PORTFOLIO MANAGEMENT STRATEGY, BRAND
HIERARCHY AND BRAND EQUITY MANAGEMENT OF P&G
Strategies of Portfolio management
Portfolio management emphasizes on administrating the structure and brand
scheduling. The P&G portfolio is referred to as an umbrella structure because it
comprises all the brands and the products such brands serve the requirements of
various categories in the market. Thus, in short, it fulfils the needs and demands of
the customers in the market (Laforet, 2017).
The brand portfolio is created to meet the demands of various customers as each of
the brands has a limited boundary and cannot fulfil the same. Thus, the brand
portfolio manages the records of every brand and develops the policies so that the
available resources are allocated to the specified brand. For attaining the long term
success in companies like P&G, Airbnb, Apple, Coca-Cola, Starbucks, it is important
for an organization to develop the brand portfolio management (Laforet, 2017).
Brand Hierarchy:
In an organization, the brand hierarchy is to build the blocks for stepping towards the
successful strategy. It mainly focuses on satisfying the needs of the customers' and
goals of the business. As per the marketing theory, the three types of brand
hierarchy model are brand property, the house of brands and hybrid models ( Herrer
et al., 2017). The house of the brand model shown below describes the portfolio that
shows different names of the brand under various categories. This model is used by
P&G, P&G, Nestle and many other FMCG companies. In the model of brand
property, the single brand under all the categories is presented such as Harley
Davidson, Virgin group and so on. At last, the hybrid model reflects that the company
adopts both the former models in the strategies (Herrer et al., 2017).
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Figure 2: House Brand Model of P&G
(Source: P&G, 2019)
Brand Equity Management:
Brand equity means the brand value that determines the preferences and
perceptions of customers towards the brand P&G. It figures out the brand equity
sources and framework that shows the direction to the company. The models of
brand equity were developed by David Aaker and Kelvin lane Keller. Aaker, states
that brand equity includes total assets and total liabilities of the P&G that increases
or decreases the brand value from the product and service. According to Keller,
brand equity refers to the brand value of P&G which is reflected by the perception,
awareness and experience of the brand from a long time among the customers
(Keller and Brexendorf, 2017).
M3 TO APPLY MODELS, THEORIES AND FRAMEWORK FOR PORTFOLIO
MANAGEMENT, BRAND HIERARCHY AND BRAND EQUITY
Brand Portfolio Management:
P&G manages the strategy of brand portfolio management along with the brands
and sub-brands among the targeted market and considers the following elements:
 Consumers’ perception of the price of P&G products.
 Consumers' perception of the quality of P&G products.
 Competition towards P&G in the targeted market (Laforet, 2017).
As per these 3C’s, P&G should evaluate the plans and implement the strategy in
terms of the house of brands, branded property, and hybrid management model. The
portfolio is combined with the brand hierarchy and brand equity management which
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