Brand Management Report: Analyzing P&G's Brand Portfolio

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BRAND MANAGEMENT

Table of Contents
INTRODUCTION..................................................................................................................3
LO1....................................................................................................................................4
LO2....................................................................................................................................7
LO3...................................................................................................................................10
LO4...................................................................................................................................14
CONCLUSION....................................................................................................................17
REFERENCES.....................................................................................................................18
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LIST OF FIGURES
Figure 1: Logo of P&G..............................................................................................................7
Figure 2: Logo of Head & Shoulders......................................................................................10
Figure 3: Line Extension of Head & Shoulders......................................................................11
Figure 4: Brand Extension of Head & Shoulders...................................................................11
Figure 5: Logo of Gillette....................................................................................................... 14
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INTRODUCTION
The report analyzed the concept of brand and branding for the advertisement of products
and services of the business organization. The relevance of branding with reference to the
procedure of managing and maintaining brand over the period is discussed in the report.
The different theories and models in order to measure the brand successfully over the year
are examined. The key components of developing a brand strategy in order to build and
manage brand equity over time are considered. The techniques of building and managing
brand hierarchies are analyzed in the report. The concept of brand extension and brand
leverage is explained along with describing their partnership at both the domestic and
global level. Various techniques have been used to leverage and extend the brand over the
period is evaluated in the report. At last, a strong and enduring brand can be managed and
measured by the application of different techniques.
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LO1
BRANDING AS A MARKETING TOOL AND KEY COMPONENT OF BRAND STRATEGY
The brand is an idea, image or name given to the products and services of the company with
a motive to promote them in the market. It is a unique symbol, name, logo or design of the
products which distinguish the goods and services of the company form its competitors
(Business Dictionary, 2019). Banding is the process which is used to define the products and
brands of the organization. The existing customers become and the new customers are
generated loyal with the help of branding (Smithson, 2015). Brand equity is the brand image
established by the company in the market by producing positive brand value. The
importance of branding as a marketing tool of the company is described as follows:
Increase customer loyalty
Branding is an effective tool which helps in increasing loyal customers by providing quality
goods and services. Branding not only helps in creating loyalty of the customers but also
help in maintaining loyal customers of the company (Lake, 2018). The needs and demands
of the customers are fulfilled in a better way with the help of branding which helps in
increasing the loyalty of the customers.
Improves recognition
Branding helps in providing face to the products of the company by designing its logo which
makes it memorable in the minds of the customers. Thus, branding provides the desired
impression of the company in the market which increases the popularity of the products
and services.
Supports advertising
Branding serves another function of advertising of the products which is an important
component of the business. Branding add logo, apparel, packaging, and image which make
the products distinguish from its rivals and the products stand out in the competition
(Goodson, 2012).
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Brand revitalization is the method of repositioning and re-establishing brand in the memory
of the customers. The brand image of the products and services of the company is brought
back to the profitability level. Brand reinforcement is aimed at the growth stage of the
lifecycle of the products. It helps in promoting repeated purchase of the products for the
existing customers along with attracting new customers.
APPLICATION OF VARIOUS THEORIES, MODELS, AND CONCEPTS USED FOR MANAGING
BRANDS ALONG WITH VALIDATING EXAMPLES WITHIN AN ORGANIZATIONAL CONTEXT
In order to improve the brand image of the products and services of the company, various
techniques, models, and theories are used. A strong brand image of the business help in
improving sales and profitability of the company and ensures its survival in the long run.
CBBE model can be used for improving brand equity which was introduced by Keller. The
CBBE model stands for Customer-Based Brand Equity model which is also a brand equity
pyramid. It has the following main four parts:
Level 1 Brand Identity
Brand identity is the image that the customers of the brand hold for the products and
services of the business organization. Brand identity is the first step in the CBBE model
which is used for creating brand awareness in the market. The needs and preferences of the
customers are analyzed along with communicating the features of the products and services
of the company to the customers.
Level 2 Brand Meaning
Brand meaning is the definition of the brand which explain the features, product reliability,
durability, empathy, effectiveness, efficiency, and serviceability of the products and services.
There are two main components in the brand meaning which are performance and imagery.
Level 3 Brand Response
The judgment and feelings of the customers fall under the category of brand response
which is further divided into four main categories. Quality, creditability, consideration, and
superiority are the four main components which define the judgment of the customer about
the brand. Keller used this method in measuring the creditability and performance of the
brand in the market along with describing the brand feeling in the minds of customers.
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Level 4 Brand Resonance
Brand resonance is the topmost step in the brand equity pyramid which is most difficult to
achieve by the business organization. The brand resonance step is achieved when a strong
psychological bond is established by the company with the customers. Behavioral loyalty,
attitudinal attachment, sense of community, and active engagement are the four categories
of brand resonance.
Brand extension is the method which is used to introduce new products and services by
using the brand image of the existing brand. The products are introduced under the same
brand name but in a different product category. This new product introduced in the market
is called spin-off. Whereas the line extension is a technique which is used to expand the
existing product line of the company. The new product line is promoted in the market with
the help of the established brand name of existing products (Business Dictionary, 2019). Line
extension lengthens the product line in two main ways which are a line-down market
stretch and upmarket stretch.
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LO2
INTRODUCTION
Procter & Gamble is a consumer goods selling company brand which was incorporated in
the year 1837 on October 31. The company sells products of different categories which
include health care, beauty, grooming, family care, home care, baby and feminine care. The
company is serving its customers from more than 180 years with the help of innovative
ideas and other meaningful ways. It is a multinational company which sells its products all
over the world and has headquarter at downtown Cincinnati Ohio.
Figure 1: Logo of P&G
ANALYZING DIFFERENT STRATEGIES OF PORTFOLIO MANAGEMENT, BRAND HIERARCHY,
AND EQUITY MANAGEMENT
Brand portfolio is an umbrella under which different brands are operated in the same
manner as an individual business entity (Robertson, 2019). Each of the brands of the brand
portfolio has its own distinct trademarks which are grouped together under the same brand
portfolio. It is used for the purpose of marketing the brands and it is used for reducing the
confusion about the owner of the brands.
Brand portfolio strategy of P&G
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The P&G following a brand portfolio strategy where the company is focusing on main areas
of brands which include 60 or 70 principle brands of the company. By reducing support from
the non-profitability brands and products of the business and shifting its focus to other
profit-making products. The efficiency in a scale of the products is increased with the help f
the rand portfolio strategies of the Procter & Gamble company. The main focus of the brand
portfolio strategy of Procter & Gamble is to add in the value of shareholders of the
company. There are around 300 brands of the company which serves around 5 billion
consumers in more than 160 countries all over the world. Head & Shoulder, Ambi Pure,
Oral-B, Gillette, Pantene, Olay, Tide, Dawn, Pampers, Crest, Pringles, etc. are some of the
profitable brands of the Procter & Gamble Company.
BRAND MANAGEMENT HIERARCHY WITHIN P&G PORTFOLIO
The brand hierarchy is a summarization of the brand strategy of different brands of a
company by ordering their distinctive brand elements. The brand hierarchy is also known as
brand architecture is a complex activity which need expertize on the part of senior
management and entrepreneur (Carter, 2017). The branded house, house of brands, and
hybrid brand model are three main models of the brand hierarchy strategy (Moore,
House of brands model
The Procter & Gamble is following House of brands model for promoting its products and
services in the market. The house of brands model is a brand model which focused on the
subsets of the brands (Harr, 2018). Under the strategies of the house of brands model, the
business organization act as holding a company for the different brands which promote the
products and services under these brands. Sometimes it becomes difficult for the consumer
to identify the products with reference to the company (Gillum, 2018). The products of the
Procter & Gamble are identified as a primary brand of the company. The sales and
profitability of a particular brand are calculated in the house of the brand model and each
brand is considered as a separate brand from that of the other brands of the company
(Gulsvig, 2014).
BRAND EQUITY MANAGEMENT
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P&G is a very successful company which operates many brands all over the world and
created innovative categories of consumer products to cater to every need of the
consumers. Brand equity is the additional value derived from the established brand name of
the company. The value and profitability derived from the positive goodwill and brand
recognition of the company are known as brand equity (Rouse, 2019). Management of
brand equity is an essential factor which affects the growth and profitability of the company.
P&G has many strong brands which are fulfilling the needs and demands of its customers
from more than 180 years. When the customer is felt satisfied with the services of the
company, they develop a loyalty brand which creates brand equity for P&G (Soh, 2016).
STRATEGIES USED FOR MANAGING THE EQUITY OF THE BRANDS
Various strategies can be used by P&G for managing brand equity of the company so that
the products and services can be promoted effectively in the market. By managing the
brand of the company successfully, the growth and profitability of the business can be
increased subsequently. Procter & Gamble is continuously taking steps for improving the
quality of the products and services with the help of different innovation and other creative
ideas. Feedback of the customers can be taken by the company for improving their
satisfaction level along with creating brand loyalty (Detlef, 2016). The importance of brand
equity is very well known by the Procter & Gamble Company and thus different integrated
strategies are made for improving the same (Kchangc, 2016).
CONCLUSION
The report analyzed the importance of brand equity for the growth and success of a
company. The brand management hierarchy used by P&G is discussed in the report which id
house of the brand model. Various strategies that can be used by Procter & Gamble for
managing successfully its brand equity is examined successfully in the report.
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LO3
INTRODUCTION
Head & Shoulders is a popular hair brand of beauty line products of Procter & Gamble which
was introduced in the year 1961. The brand is serving its customer from more than 57 years
all over the world. The tagline for the brand is ‘You never get a second chance to make a
first impression’. Head & Shoulders is anti-dandruff hair shampoo product of Procter &
Gamble which has medical features.
Figure 2: Logo of Head & Shoulders
BRAND EXTENSION AND LINE EXTENSION
The brand extension and line extension strategies are commonly used by many well-
established companies of the market in order to expand their business operations. The
customers can be satisfied effectively with the help of brand extension and line extension
strategies. The revenue and profitability of the company can be subsequently increased with
the help of these strategies.
Line Extension
The strategies under which the product line of the company is expanded by using the
established brand image of existing product line (Anzalone, 2019). Head & Shoulders has
introduced many varieties of products which cater to all types of needs and demands of the
customers. These products include Head & Shoulders classic clean, Head & Shoulders
smooth & silky, Head & Shoulders green apple, Head & Shoulders dry scalp care, and Head
& Shoulders itchy scalp care.
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Figure 3: Line Extension of Head & Shoulders
Brand Extension
Figure 4: Brand Extension of Head & Shoulders
Brand extension is another strategy which is used by many market players and companies
with a motive of introducing new products of the completely different category under the
established brand name of the existing brand (Hill, 2019). P&G has introduced many
products of Head & Shoulders for increasing the profitability and sales of the brand under
the brand extension strategy. Head & Shoulders has brought many products in the form of
their brand extension strategy which includes Head & Shoulders shampoo, Head &
Shoulders conditioners, Head & Shoulders co-wash, and Head & Shoulders 2-in-1 range.
STRENGTHS OF THE HEAD & SHOULDERS
Following are the strengths of Head & Shoulders which help the company in getting a
competitive advantage over the rivals in the market:
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