Brand Management of Rolex: A Comprehensive Analysis

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BRAND MANAGEMENT
ROLEX

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 MANAGING AND BUILDING OVERTIME.................................................................2
INTRODUCTION.......................................................................................................................2
MAIN BODY..............................................................................................................................4
CONCLUSION............................................................................................................................5
TASK 2 BRAND PORTFOLIO AND HIERARCHY MANAGEMENT......................................6
TASK 3 BRAND EXTENSION AND LEVERAGING...............................................................10
TASK 4 MANAGING AND MEASURING THE BRAND VALUE..........................................13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
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INTRODUCTION
The brand is a name that shows the product and service of the organization that creates trust
and loyalty with the identity among the customers. The brand makes difference in the
organizations' product and competitors' product. The brand management includes the
strategies, plan and advertising the brand to create brand awareness among the target market.
The understanding of the concept with the help of methods and techniques to create the brand
value will be discussed in the assignment. In the first part, an article will be made for
strengthening the brand and importance of the brand and brand equity in the context of
Optimum Impression Limited. The brochure will be developed and includes the different case
studies to managing and building the brand. The case study in the assignment will be analyzed
to implement the strategy for the strengthening of the brand equity and brand extension. The
brand portfolio analysis and hierarchy management will be discussed to make the strong
strategy with the help of the appropriate models. After this, the evaluation of the strengths and
weaknesses of the brand and then suggestions will be made and at last, the management and
measurement of the brand value will be discussed.
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TASK 1 MANAGING AND BUILDING OVERTIME
“BRAND IS POWER”
INTRODUCTION
Brand
The brand is used and managed by the organization as the long-term asset and can be described as
the marketing tool to create differentiation of the products or services with the unique and different
identity (Posner, et al., 2015). It supports to create and develop the image of the brand and easily
identified by the market segment.
IMPORTANT TOOL THAT SUPPORTS IN THE BRAND ESSENCE
The brand work for the recognition and developing the brand image in the customer's minds. The
brand helps the organization to give the message to the target market segment about the products
and services offered by them. The advantage of the branding is that it saves the customer's time and
they can easily find and recognize the brand and brand products to make the purchase.
Brand Equity
The brand equity is the term that explains the value of the brand on the basis of the experience and
perception of the customers towards the brand (Pahwa, 2017). The recognition of the brand
depends on the consistent reminder of the brand in the customer mind which will give the positive
brand equity. It helps to increase the brand value for the company.
Brand Positioning
The brand positioning involves the existed image of the brand in the target market segment,
competition of the market, value of the brand and the strategies of the brand in the organization. It
helps the organization to know about the competencies and image of the brand.
STAGES IN MANAGING AND BUILDING SUCCESSFUL BRAND
The brand equity supports the company to building the value for the company from the recognition
of the product in the competition of the industry. The company uses the brand equity for the easy
recognition of the brand, loyalty and faith towards the brand and offerings of the company. There is
the tool that helps the company in managing and building the brand successfully. The AAKER model
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will be described for the development of the equity of the brand and has the combination of brand
loyalty, awareness and associations; this model provides the idea of generation of the revenues
(Jalilvand, et al., 2011).
AAKER Model of the Brand Equity
1. Brand Loyalty: the brand loyalty helps to build the strong image of the company and it also helps
the company in reducing the cost of marketing if the brand loyalty is at the peak. Brand loyalty is the
concept that is not possible to copy and thus the company can take time to formulate the strategy.
2. Brand Awareness: the company can start from this concept in building the brand equity. To
create brand awareness is the first move of the company towards successful branding (Jalilvand, et
al., 2011). When the target customer plans to make the purchase, then, the awareness would be
helpful in the consideration of the brand.
3. Perceived Quality: the perception of the customer towards the brand is important to play in the
long run. For example; the cellphones of Nokia perceived resistant and sustain for longtime without
technology up gradation.
4. Associations of the Brand: the brand name is retrieving by the company in the customer’s minds
through advertising the information by different mediums. The extent to which the brand
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BRANDEQUITYBRANDAWARENESSBRANDLOYALTYBRANDASSOCIATIONPERCIEVEDQUALITYPROPRIETARYASSETS

association creating the differentiation.
5. Proprietary Assets: the model consists the proprietary assets such as trademark, patent and the
relationship between the different channels of the company (Jalilvand, et al., 2011).
ROLE OF MARKETING IN CREATION OF THE BRAND EQUITY
The marketing department has the responsibilities in creating the brand equity for the optimum
impression limited. The marketing formulates the strategies to develop the brand equity and the
advertising and promotion would be also very important. The advertisement plays an important role
as it increases the brand image and communicates the information directly to the market segment
(Buil, et al., 2013). The marketing department floats the information to the management within the
organization. This helps in creating the positive image of the brand.
MAIN BODY
SUCCESSFUL STRATEGY TO STRENGTHEN THE BRAND EQUITY AND BRAND EXTENSION
Being the Manager in the Marketing department, the article prepared in the brochure of the
company and the important strategies involved in strengthening the equity of the brand which is
applied by the optimum impression limited are:
Analysis of the Competition: the company must analyze the market competition to make the sound
strategies for the brand image. The company should know the strategy and activity followed by the
competitor. The company needs to offer the products where the competitors not reached and in this
way, the benefit gain by the company in brand extension and brand equity (Keller et al., 2011).
Marketing support: the marketing can support the brand extension through advertisement and
social media or other platforms in developing the brand equity. The company needs to focus on the
niche market by attracting customers with the help of advertising.
Quality of services and products: the company has the services and products as the base and
therefore, it is important to offer the premium quality offerings to the target market. Thus, the
company will be a success in making the repurchasing.
BRAND REVITALIZING AND REINFORCING
There are some steps that would be followed by the optimum impression limited to reinforce and
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revitalize the brand are as follows:
 The brand needs to maintain the expectations and wants of the target segment
 To target the other market for a wider reach of the company (Bresciani and Eppler,
2010)
 The company can use the 360-degree tool for communication
 It is important to maintain the consistency of the brand that helps the company in
increasing the reputation of the brand
CONCLUSION
It can be concluded that the branding concept must be upgraded as it needed to enhance the brand
image of the company. It is an important tool of marketing to increase the market reach and helps in
the differentiation of the products. The strategic marketing plan would be helpful in the
development of the brand in optimum impression limited. The success of the strategy and
accomplishment of the goals is done with the help of branding. It enables the proper alignment of
the strategy and decision making of the company. This is a tool which will create the image and
awareness to increase the sales of the company.
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TASK 2 BRAND PORTFOLIO AND HIERARCHY MANAGEMENT
1. ANALYZING THE BRAND STRATEGY OF ROLEX
Brand portfolio management includes the management of the strategies to enhance the brand
in the industry. The brand portfolio works as the roof under which the brand and product lines
of the company to fulfil the different needs of the market segments (Kapferer, 2012). The
understanding of the strategies of the brand portfolio at Rolex is considering in this section.
The brand portfolio of Rolex has enclosed all the brands that are offered by the single
organization according to the different requirements of the different market segment.
Moreover, Rolex fulfils the needs of the market segment through offerings with the premium
watches for a different group of customers (Uggla and Åsberg, 2010). The strategies would be
developed to enhance the brand portfolio and the two dimensions of the brand portfolio are as
follows:
Breadth of Product Mix: The Company has a wide market reach and the leading in the industry;
the product mix strategy covers the different product offered by the company in the market.
This strategy consists of the number of brands and sub-brands of the company (Simconblog,
2015).
Depth of Branding: This strategy consists of the number and nature of the brands, different
lines and models in the product category.
Rolex has different brands like oyster perpetual, oyster professional and Cellini and further,
these family brands have different sub-brands categories. These brands and sub-brands created
on the basis of the different demands of the customers (Simconblog, 2015). The company fulfils
the demand of the customers by design the stylish and professional watches that attracts all
market segments and defeat the competitor's strategy.
There are various models for a brand portfolio that consisting branded house, house of brands
and house blend.
The branded house involves the concept of using one strong brand for all the products and
product categories. It helps in to maximize the approach and market scale and increase the
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focus on the establishment of the brand. For example, apple using this strategy that increased
the market capture and brand value of the company.
The house of brands includes independent brands. The organizations use the house of brands
has a strong model for the brand portfolio. This is beneficial for the organization as the brand
can easily target the precise group of customers ((Uggla and Åsberg, 2010). The globalization
can also possible for the company and the risk will be reduced because of the diversification of
the brand. For example, Mondelez has different strong brands to reach the target different
market segment.
The house blend strategy includes the architecture for the development of the sub-brands with
the concept of surplus the credibility of the existing strong brand. For example, Google at first
introduced the search engine and then establish a single strong brand with acquiring other
brands to make the small acquired brands stronger.
2.The Hierarchy Management of Brands within Organizations Portfolio
The hierarchy management of Rolex has been done with the help of the sub-brands and
adopting the branded house strategy. The company has different strong sub-brands and brand
portfolio. The company invested in the establishment of the brand portfolio with the strategies
of expansion of the company in the new and different product categories.
The logo of the company also says that it is a strong brand for offering the premium quality
watches to the customers. The strategy is to make the brand premium with cost-effective
methods to attract the market segments (Gomez, 2014). Rolex also defined the budget for
products advertising and promotion of the brand. It maintained the quality with the advertising
cost and builds the strong image of the brand among the customers.
The brand pyramid helps the company to provide the answers to several questions that are
structured in the diagram. This structured information floats to communicate within the
company.
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The brand architecture of the Rolex that helps in designing the portfolio of the brand for
enhancing the reach of the market and reducing the efforts to approach the target market is
the benefit of the brand architecture of the company (Gomez, 2014).
The brand hierarchy of the company is important and supportive in the display of the strategies
of the brand and lines of the brand. Rolex has the wider market capture for the establishment
of the products that are related to the brand.
The brand hierarchy has four levels that involve the family brands, corporate brands, modifier
and single brands. The brand architecture helps in the development of unity and together
efforts of the product and corporate brand.
Brand architecture helps the company to promote the brand name that is new in the industry
that has the parent brand for the management of different products (Gomez, 2014). The
strategy of the company is to provide premium and stylish watches in different categories with
the sub-brand name. Rolex focuses on the strategy as because it receives the continuous
response towards the brand from the customers.
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3. ANALYZING STRATEGIES USED FOR MANAGING THE EQUITY OF BRANDS WITHIN THE
ORGANIZATION PORTFOLIO
The brand equity management of the Rolex is to provide the luxury wristwatches to attract the
customers. The company built a strong relationship with the stakeholders and attracts the
target market segment with premium quality offerings in the competitive market (Detlef, 2016).
It promotes the products through advertising and celebrity endorsement to provide the best
offerings to the market segment.
There are different models for managing the brand portfolio and supports the company to
organize the way of building a strong brand image and portfolio. The models of the portfolio of
the brand and they are as follows:
House Blend: this model refers that the development of the main brands within the parent
brand. Rolex has the different culture and environment at the workplace for implement the
brand image among the customers (Srivastava and Thomas, 2010). For example, the company
has an innovative environment and influenced corporate identification as the logo is known to
its customers.
Branded House: The model of brand portfolio defines the decision making of the organization
to choose the brand for other brands. The organization has the benefit of using this model for
promoting the brand as the single brand name and with the optimum utilization of the available
resources.
House of Brands: the model includes the brand portfolio for choosing the several brand names
for the different product categories and these brands have their own identity (Srivastava and
Thomas, 2010). For example, Unilever Ltd. has a different strong brand name in the single
strong parent brand.
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TASK 3 BRAND EXTENSION AND LEVERAGING
The organization uses the strategies to maintain and manage the brand in the international as
well as domestic market and they are:
Brand Extension: The Company uses the brand extension as the strategy of marketing to
developing the new products in the industry for success. The brand extension is used by the
company to have an impact on the preferences of the customers towards the brand. It helps in
reducing the issues and problems of the product categories (Monga and John, 2010). There are
two dimensions of the brand extension that are as given below:
Vertical extension: This dimension includes the introduction of the services and products in the
same product category as the strong parent brand with different price or quality. The
subcategories are an upscale and downscale extension.
Horizontal extension: It emerges when the organization want to change the name of the
existing product towards the new product category (Monga and John, 2010). This dimension
consists the subcategories as the franchise and line extension.
Figure 1: Brand Extension
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