Analyzing Sainsbury's Brand Strategy: A Marketing Report

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BRAND-MANAGEMENT

INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................2
P1, M1 Explaining branding importance as a marketing tool using relevant theories and
concepts and how it has appeared in organisation practices..................................................2
P2, M2 Analysing the key elements of brand strategy that is successful in managing and
building brand equity.............................................................................................................3
TASK 2......................................................................................................................................6
P3, M3 Analysing portfolio management, brand equity and hierarchy techniques using
appropriate models and strategies..........................................................................................6
TASK 3......................................................................................................................................9
P4, M4 Evaluating how brands are managed in partnership a collaboratively both at
international and domestic level.............................................................................................9
TASK 4....................................................................................................................................12
P5, M5 Evaluating techniques and methods to measure and manage brand value..............12
D1.........................................................................................................................................14
CONCLUSION........................................................................................................................15
REFERENCES.........................................................................................................................16

INTRODUCTION
For the effective management of brand, business requires several strategies to perceive their
brand in marketplace. In this regards, effective relationship is required with target market to
manage a successful brand over time effectively. In this regards, Sainsbury organisation is
selected for this report which is the third biggest supermarket chain in United Kingdom and
has 186,000 employees. The firm provide groceries, clothing, electronic and more services to
its customers including financial services.
The report will cover branding importance as a marketing tool using relevant theories and
concepts and how it has appeared in organisation practices and key elements of brand
strategy that is successful in managing and building brand equity. In addition, portfolio
management, brand equity and hierarchy techniques using appropriate models and strategies
will be discussed. The report will also demonstrate how brands are managed in partnership
and collaboratively both at international and domestic level and techniques and methods to
measure and manage brand value effectively.
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TASK 1
P1, M1 Explaining branding importance as a marketing tool using relevant theories and
concepts and how it has appeared in organisation practices
Brand: It can be defined as a customer overall experience which he or she get from a brand
using its products and services. Brands are used in advertising, organisation and marketing
(Rodrigues, Brandão and Rodrigues, 2018). It is also a unique symbol, design, combination
of words and sign created by business that helps in identifying the products and services and
differentiates it from others. Brand also help customers to recognise the products offered by
business so that they can easily purchase it from the marketplace.
BRANDING IMPORTANCE
It is very important for Sainsbury to use branding as a marketing technique that it helps in
creating an unforgettable impression on customers and also allows them to show their
expectations from business. Branding help Sainsbury to distinguish their products and
services from other key opponents in marketplace
In addition, it also provides clarification towards what to offer that makes business a superior
choice. It has major impact on business in terms of operations, image and awareness.
Branding as a marketing tool deliver benefits to organisation such as:
Recognition: Branding is crucial that it provides recognition to customers in marketplace. In
this regards, a professional, memorable and powerful logo must be designed by Sainsbury to
create an effective impression on customer’s mind (Arvidsson and Caliandro, 2015). This
helps them to recognise services offered by business to choose them over others.
Increase value: Branding creates several opportunities for business that helps in increasing
its value in marketplace and towards customers. Business can expand their operations and
profitability through accessing these opportunities. Quality products increase satisfaction of
customers and they promote business.
Differentiate: Branding differentiate products offered by Sainsbury in market that helps
customers to choose over another. Differentiation is also important for business as the market
is full of substitute products.
Creates meaning: Branding demonstrate the meaning, purpose and goal of business towards
consumers
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In this regards, the marketing channel such as advertising and other media platform helps in
providing a coherent and clear message to customers.
Employee and customer satisfaction: It is assessed that employees feel motivated and
encouraged when they work with a brand that has value in marketplace. This helps to
enhance pride so that they can work more freely and effectively. This helps to produce
quality services that help in satisfying needs of consumers.
Support advertising: Branding as a marketing tool supports advertising through various
media channels. It helps to reflect the portrayal of organisation. the firm is able to promote
their vision, mission and objectives through different media platforms so that customers can
understand the importance of products in their daily life.
The concept towards managing a strong, powerful and successful brand for Sainsbury is to
demonstrate their purpose, initiatives, mission, vision and characteristics in order to convey
their strong point and stability (Agante and Pascoal, 2019). The consistency within business
helps in adopting changes that are necessary to remain effective within business environment.
It also makes business flexible enough to implement strategies that are effective in increasing
profits, productivity and operations. In addition, brand which is also known as business
model support potentiality to achieve goal and objectives.
P2, M2 Analysing the key elements of brand strategy that is successful in managing and
building brand equity
BRANDING STRATEGY
It is crucial for Sainsbury to evaluate and determine strategies that are effective in measuring
the customer needs in marketplace. These strategies will also help in adopting certain changes
that are required to undertake operational activities to produce services that are effective in
achieving customer satisfaction and loyalty. Branding strategies are also useful in
determining the preferences, tastes and perception of consumers in order to manage the brand
equity (Frias Jamilena, Polo Pena and Rodríguez Molina, 2017). In this regards, the key
elements of a success brand strategy to manage brand equity are provided below:
Brand loyalty: Brand loyalty is the most important factor within business that it reflects a
customer feeling in terms of repetitive behaviour, price and quality. It can be said that a
customer hardly selects any other brand if he or she is satisfied with the current chosen brand
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services. Hence, it is important for Sainsbury to manage the quality of products to increase
number of loyal customers that helps in enhancing the brand equity effectiveness.
Brand awareness: Awareness towards brand can be provided through delivering information
regarding services and operations to customers in marketplace. It helps to create awareness
among customers so that they can recall and recognise brand. Management of Sainsbury is
able to implement different branding and awareness strategies to become known among
competition.
Perceived brand quality: It is very important for the business to maintain quality of their
services so that the consumers can also perceive the same level of quality effectively
(Foroudi, 2019). For example, high quality products are offered by Sainsbury to its customers
which helps them to perceive the same quality for other products as well. This helps in
building sustainable equity.
Brand association: Brand association is a process where the firm ensures that it is associated
with number of activities such as luxury products, environment sustainability, safety etc. this
helps to retrieve brand information and also differentiates it from others within marketplace.
Hence, business must consider that the brand equity must be effective and meaningful to
attract consumers.
IMC: The approach is effective for Sainsbury as it will help in communicating the mission
and vision of organisation to customers with the help of strategies such as advertisement and
social media platform effectively.
Proprietary assets: These are the features such as patent, trademark, intellectual properties
and relationship that help business to gain its competitiveness (Lieven, 2017). It also provides
protection and safety to brand over time from key competitors in marketplace.
BRAND EQUITY
Brand equity management is crucial for business in order to enhance their sales, productivity
and profitability. It can be done by providing quality services to customers. In this regards,
products offered by Sainsbury must be recognisable, reliable and made with superior quality
to manage effectiveness of brand equity. Customer experience and perception is associated
with brand equity.
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Target audience: These are the people attached with brand in different terms such as
repetitive purchasing behaviour, assurance, quality, price etc. These people are beneficial for
business in terms of improving profitability and productivity (Kim, Im and King, 2015).
Hence, it is important for Sainsbury to get in touch with their target audience to enhance
customer base.
Brand promise: It is a commitment of business to its customer regarding services they are
offering in marketplace. They ensure that the products and services are made with superior
quality and also able to satisfy the needs. Brand promise include information such as
usefulness and information of products that helps to meet their daily needs effectively.
TASK 2
P3, M3 Analysing portfolio management, brand equity and hierarchy techniques using
appropriate models and strategies
It is important for organisation to manage strategies that are useful in managing the brand
hierarchy, equity and portfolio and also to define the responsibilities, scope, structure and
roles effectively.
Brand roles: It is crucial to define the responsibilities and roles for Sainsbury to manage
several strategic management strategies to improve marketing. This will help in managing
services offered by them and also to accomplish the preferences, perception and tastes of
consumers to strengthen the portfolio (Gbadamosi, 2015). In this regards, workers must be
able to determine and understand their roles to manage operations and services to manage
business portfolio in different conditions.
Long-term thinking: Management of Sainsbury is responsible for thinking towards long
term goals and strategies to cope up with resources such as equipment, raw materials,
machineries and other financial aspects. Such strategies are useful in managing the brand
portfolio for present and future terms.
Customer perspective: Business is able to make decisions regarding its operations with the
help of effective management of their brand portfolio while considering the customer
perspectives. Here, both quantitative and qualitative approaches are useful for management to
conduct marketing research to control brand portfolio. This will also help in evaluating the
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preferences and tastes of customers so that the brand portfolio could be managed accordingly
and effectively.
Strategy: It can be said that management required effective strategies and policies towards
production, profits and operational activities to achieve the goal and objectives. In this
regards, strategies towards effective management of brand portfolio is also required to ensure
that it is linked with the market standards and intentions (Sheth and Koschmann, 2019). This
will provide guidance to management to formulate and implement strategies that are effective
in managing brand portfolio and to improve the portfolio of products and services to provide
long term growth and development benefits effectively.
Brands are able to become familiar with each other by differentiating their roles,
responsibilities regarding products and services they are offering in marketplace towards
customers. This helps to maintain the clarity, leverage and synergy among them for the
management of their brand hierarchy, portfolio and equity.
BRAND HIERARCHY
Strategies are also divided into sub-categories which is known as brand hierarchy. Here,
summary of strategies helps a brand to manage its hierarchy. The strategy helps to describe
the factors and elements that are common or associated with brand (Bidmon, 2017). It is
based on realisation which is useful in reproducing services offered by organisation and also
it moves from the top to bottom level while achieving success at each level.
KELLER’S BRAND EQUITY MODEL
Keller developed brand equity model which is also known as customer based equity model
which is useful in developing strategies to maintain the brand hierarchy and equity.
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Figure 1 Brand equity model
Brand identity: It can be defined as design or symbol used by organisation so that the
customers can simply identify the facilities accessible to them in marketplace (Bhasin, 2018).
In addition, the identity of a brand also helps in differentiating its products from other
competitors so that the customer can choose one over another.
Brand meaning: Brand meaning is divided into two factors such as performance and
imagery which helps to convey the vision, mission and purpose of business. Management use
this to manage their brand in terms of strong and recognisable. Demand reflect the
performance and social and psychological needs are associated with imagery in marketplace
effectively.
Brand response: Customers after using the services offered by business provide their
feedback and opinions in terms of quality, effectiveness and reliability. It is also divided into
two portions based on customers such as judgements made by them and feelings associated
with products. In this regards, business management is responsible for addressing the
response provided by customers in order to make strategies to improve their services
accordingly and to manage the brand equity.
Brand resonance: It can be said that Sainsbury management required to address
psychological and feelings bond with consumers to maintain their repetitive behaviour
towards services they are offering in marketplace (Tiwari and Anang, 2019). It not only helps
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in managing the customer’s engagement with brand but also improve their loyalty which is
effective for the management of brand equity effectively.
Thus, it can be said that the model developed by Keller is effective for Sainsbury in order to
manage strategies that are useful and effective in management of brand portfolio, hierarchy
and equity in marketplace. It is also useful for them to achieve their goals and objectives
associated with profit, production and operational activities.
TASK 3
P4, M4 Evaluating how brands are managed in partnership a collaboratively both at
international and domestic level
APPROACHES AND STRATEGIES
Ignoring critics: Critics are normal for a business but it also has a great impact on goodwill
and image of brand which can decrease its effectiveness towards customers. They are
normally associated with the products in terms of price, quality and benefits. In this regards,
Sainsbury management must ensure that they ignore this and try to make their products
effective and of superior quality which will help to eliminate such critics within marketplace
and from mind of customers.
Ordinary to beautiful: Innovation is very important for a business to manage their
operations in several different ways (Sinha, 2017). In this regards, strategies are available for
business to make their services more attractive for a customer such as turning ordinary
products into beautiful in terms of attractiveness and packaging. This helps to attract
customers and meet their requirements according to their perception. This is also useful for
business to increase their market share by expanding operations at both international and
national level.
Discounts: The firm is able to sell their old stock using strategies such as providing
discounts. This helps to attract both existing and new customers as the cheap prices increase
chances of purchasing products. The strategy is effective in selling old inventories and
improving profits to make a strong customer base. In addition, the business can also provide
new services with effective discount schemes to gain its competitive advantage.
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Price justifications: It is very important for firm to justify price of services and products
they are offering in marketplace towards customers. It can be said that customers are attracted
from low prices. However, they are also worried of the quality as the low price has impact on
quality of services (Nam, Joshi and Kannan, 2017). Thus, the firm must provide justification
for their prices so that the consumers can determine why it is cheaper and valuable for them.
This helps to increase loyalty and awareness of services towards customers in marketplace.
REVITALISATION AND REINFOORCEMENT
Reinforcement of brand is a strategy available for management in order to increase brand
equity effectiveness in marketplace. It can be said that customers share their feelings,
opinions and feedbacks regarding services they used offered by Sainsbury. In this regards,
management is able to formulate strategies that are useful in addressing these opinions to
make changes within operations (Jargons, 2016). There is influence of some elements on
these strategies such as competition, changes in customer preferences and tastes and
technology. Thus, management is able to recover their lost assets and equity by coming back
to the previous strategies. This whole process is known as revitalisation.
Determination of opportunities: It is important for Sainsbury to determine opportunities to
take their advantage and improve profit, productivity and operations. In this regards,
management is responsible for implementing growth strategies to expand operations at both
worldwide and state level.
Ways to use brand: Brand can be used at different platforms such as new and emerging
platform to provide services in different segments (Cooper, Stavros and Dobele, 2018). It is
useful in attracting both new and existing consumers which helps in improving brand
position.
New market: New markets are thee growth and development opportunities for business to
establish their operations and enhance their profits. It provides new customers, market trends,
opportunities and competitive advantage.
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COLLABORATION AND PARTNERSHIP
Both collaboration and partnership are effective ways from which Sainsbury is able to expand
their operational activities in new and emerging areas and nations. In partnership, business is
able to take advantage of a partner’s image to enter into a whole new market to access new
customers and resources. This can be done through acquisition or joint venture to enhance
growth and development. In this regards, services will be new for the market (Bange,
Moisander and Järventie-Thesleff, 2019). Brand equity will be effective with this at both
worldwide and national level. Collaboration will also help to perform better in market with
the help of new company products to expand product portfolio. Hence, both strategies are
effective in enhancing market share and profitability.
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