Brand Management Strategies of Tesco: A Comprehensive Analysis

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Brand Management

Table of Contents
Introduction......................................................................................................................................1
LO1..................................................................................................................................................1
Introduction..................................................................................................................................1
Main body....................................................................................................................................2
Conclusion...................................................................................................................................3
LO2..................................................................................................................................................4
Introduction..................................................................................................................................4
1. Analyze the organization’s brand portfolio strategy...............................................................4
2. Provide an illustration of the hierarchy management of brands within organizations
portfolio.......................................................................................................................................5
3. Analyze strategies used for managing the equity of the brands within the organizations
portfolio.......................................................................................................................................6
Conclusion...................................................................................................................................7
LO3..................................................................................................................................................7
Introduction..................................................................................................................................7
1. Strengths of the brand that can be leveraged...........................................................................7
2. Weaknesses that may need attention providing some possible suggestions............................8
3. Collaborative and partnership agreements...............................................................................9
Conclusion...................................................................................................................................9
LO4..................................................................................................................................................9
Introduction..................................................................................................................................9
Brand value................................................................................................................................10
Brand awareness........................................................................................................................10
Market share..............................................................................................................................10
Consumer attitude......................................................................................................................11
Purchasing intent.......................................................................................................................11
Conclusion.................................................................................................................................11
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

List of figures
Figure 1: Tesco brand hierarchy......................................................................................................5
Figure 2: Keller brand equity model................................................................................................6

Introduction
Managing brand has become most crucial for every business operating in the market as it is
linked with the success of the business. Further, in the era of modernization level of competition
is quite high and in this case, every business has started to focus on the formation of effective
brands so as to grab the range of opportunities in the business environment (McLaughlin, et al.
2018). In short, without successful brand tactics, it is difficult for any business to survive in the
market. Furthermore, companies have started to manage brands in collaboration with other firms
in the market such as market agencies etc and this assists a lot in the development of its brand in
the market.
The present study focuses on highlighting the importance of branding with respect to different
firms. The first task focuses on presenting the role of branding in relation to the selected
company, the second task deals with analyzing brand portfolio strategy of Tesco etc.
LO1
Introduction
The brand is regarded as the name, logo or symbol that helps a lot in distinguishing one specific
company from another in the market. Further, the importance of building a successful brand is
rising at a faster pace in the modern era so that companies can easily conduct its business
operations (Ottman, 2017). Along with this, brand equity is the marketing term that represents
the brand value. The value is computed on the basis of consumer’s perception and experiences
with the brand. In case if the brand equity is positive then people will surely prefer to
recommend that brand to others in the market.
Different stages are present through which a specific firm can focus on building a successful
brand in the market. The stages start with determining the target audience, developing the
mission of the brand, conducting the research competition, creating the value proposition,
determining the brand guidelines and at last marketing the overall brand. All these stages are
most crucial and through this successful brand can be easily developed. Role of the marketing
department is also very crucial in creating brand equity (Papadopoulos, et al. 2016). Mainly this
department focuses on building awareness in the market and highlights the positive attributes of
the brand so as to build a positive image in the minds of the target market. Proper efforts are
applied such as the promotion of goods, highlighting the quality of products and other so as to
create brand equity.
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Main body
Strengthening brand equity is regarded to be the most important as it helps a lot in enhancing the
business performance in the market. Further, considering the case study of the company like
Tesco, the firm has managed to enhance its brand equity through use of different tactics. One of
the main strategies that have been undertaken is a communication where proper interaction with
the target market such as through online platforms and through the medium is effective (Posner,
et al. 2015). Marketing communication is also supporting strengthening the relationship with the
target market and through this, the value of brand equity has enhanced. Second main strategy
that has been undertaken is legal and ethical decision making that has supported Tesco in
enhancing brand equity level. All the decisions taken are in favor of the customers and the
business practices are also ethical. Delivering superior value to the target market is also another
strategy undertaken by Tesco. The products of the firm help a lot in providing a remarkable
experience to the customers. Hence, these are some of the successful strategies for strengthening
brand equity and extension.
Brand extension is mainly carried out by Tesco through conducting proper market analysis or
research (Richards, 2015). This tactic helps a lot in knowing about the need and requirement of
the target market. Through market research, Tesco is able to know what is the actual need of
expectations of the target market and brand extension is mainly done through this. Internal
analysis is also done by a company like Tesco for brand extension and this helps a lot in
expanding product line or adding new brand in the present range.
Further, the brand crisis has a negative impact on the business performance where undertaking
the case study of Tesco has highlighted that at the time of brand crisis several actions were taken
by Tesco. The company focused on redeveloping or reintroducing its brand in the market.
Mainly the concept of re-launching brand is highly effective where the company has to introduce
or indulge some new elements in the brand so that overall operations can be conducted smoothly
(Sargeant and MACQUILLIN, 2016). So, this highlights the effectiveness of Tesco in managing
the overall situation linked with the brand crisis.
For reinforcing brand the company like Tesco focuses on highlighting the unique elements in its
brand that can provide a better experience to its target market. This is indicating that brand is the
power and by strengthening the brand in the market the company can easily target its customers
in the best possible manner.
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Mainly the key components of the successful brand strategy are values, perception, promise and
target market. In case if all the components are managed in the best possible manner then in such
case it can lead to brand development in the best possible manner (Du Preez and Bendixen,
2015).
Considering the Aaker brand equity model four elements of brand identity are present that are as
follows:
Brand as a product: It undertakes the attributes of the products and quality like in case of Tesco
the product quality is high
Brand as an organization: It undertakes the attributes of the firm
Brand as a symbol: It consists of visual imagery along with audio one
Brand as a person: This part includes the personality of the brand like the Sainsbury where the
brand reflects high quality products in the market.
The brand equity model also represents the main components of the brand value that includes
brand awareness, brand association, perceived quality, brand loyalty and another proprietary.
Along with this, for managing and building brand the well established firms in the market such
as Tesco, Sainsbury etc have applied different tactics and this has brought fruitful results also.
The key tactic is focusing on knowing the perception of the target market. The brand like Tesco
mainly focuses on knowing the actual perception of its customers (Du Preez, et al. 2017). So, this
allows in brand management and its development takes place in a faster manner. Along with this,
the market survey is also carried out on a continuous basis through which companies are able to
know the actual position of their brand in the market. Overall the importance of branding or
development of the successful brand is most important as it provides long term benefits such as
considering the case study of Tesco where the company has obtained benefits such as strong
customer base, profitability level, market share etc through effective branding strategies.
Conclusion
Hence, the overall analysis indicates the importance of branding. Further, effective branding acts
as a marketing tool where it becomes easy to promote a specific brand and highlight its key
elements in the best possible manner. In case if the brand is well established then in such case the
firm has to apply lesser efforts in marketing like in case of Tesco. Along with this, the customers
prefer to associate with the brand and they are easily attracted to it. Branding is a most
significant marketing tool as it helps in highlighting the unique features of a specific brand the
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kind of experience it can provide to the customers. It helps in differentiating one brand from
another also and through this, the business enterprise can easily sustain in the market. In case if
the branding of any business enterprise is not up to the mark then in such case publicity level will
be low and customers will not be aware of products and services of the firm in the market. The
company like Tesco has taken advantage of branding from the point of view of marketing and
this is the main reason due to which preference for its products is high in the market. This
concept has emerged in the modern era where every company is focusing a lot on taking
advantage of branding concept and it has become the reason behind the success of the firm in the
market.
LO2
Introduction
In the modern era, every organization conducts its business practice with the help of sub-brands
that helps in knowing how diversified is its brand in the market. Analyzing the portfolio strategy
of any specific brand is regarded to be the most important and through this, the management of
every sub brand can be managed easily (Erdem and Swait, 2016). Along with this, every
organization focuses on adopting different practices of portfolio management, brand equity that
brings favorable results on the long term basis.
1. Analyze the organization’s brand portfolio strategy
The company like Tesco conducts its business operations with a different type of brands in the
market. The portfolio of the firm undertakes different brands and this reflects the real efficiency
of the firm. The brand portfolio strategy of Tesco involves identifying the most powerful brands
in the portfolio and this contributes a lot in enhancing the financial performance of the entity.
The strategy also undertakes to undertake customer perception, defining the role of the brand etc
(Ertimur and Coskuner-Balli, 2015). Through this, the entire portfolio is managed in the best
possible manner.
Further, different strategies are undertaken by Tesco for portfolio management, brand equity and
brand hierarchy. The key practices are undertaking external analysis, monitoring and
communicating with the staff along with internal analysis. This helps a lot in ensuring that the
portfolio of the firm is managed in the proper manner. So, this provides an overview of the
Tesco’s portfolio strategy.
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2. Provide an illustration of the hierarchy management of brands within organizations portfolio
Tesco conducts its business practices with different brands and management of every brand is
most crucial for the firm so as to operate efficiently in the market. Below is the hierarchy of
brands that are managed by Tesco.
Figure 1: Tesco brand hierarchy
Above shown is the hierarchy management of brands within Tesco and all these brands represent
high quality through which Tesco is able to conduct its operations efficiently in the market.
Further, it has been found that in the portfolio of Tesco several subsidiaries are present such as
Tesco Mobile, Ireland, Family Dining, Stores, Bank etc.
Brand portfolio management is done by Tesco trough proper planning where the internal team of
the firm is quite efficient that focuses on building several plans so that portfolio can be managed
in the best possible manner (Heding, et al. 2015). Different departments are present whose main
responsibility is to manage the different sub brands so that the operations of the firm can be
carried out easily. Every brand associated with Tesco focuses on delivering quality products to
the target market as through this the expectations of the customers are met or satisfied in the
proper manner. It is a well known fact that products of Tesco are well known in the market for
the quality and this is the main reason due to which every sub brand focuses on quality, not on
other aspects.
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Brands
Suntrail
farms
Rosedene
farms
Willow
farms
Woodside
farms
redmere
farms
nightingale
farms
bowell
farms
Bay
fishmongers

Within Tesco, proper training is provided to the marketing and the branding team where the main
task is to manage the different brands in a proper manner so that goals associated with the
company such as maximizing profits, enhancing market share etc can be accomplished in the
proper manner (Heine, et al. 2018). Hence, through this analysis, it is quite clear that
management of brands within the organization portfolio is done in the proper manner and this is
the main reason behind rising in the efficiency of the firm in the market.
3. Analyze strategies used for managing the equity of the brands within the organization's
portfolio
Different strategies are present through which companies focus on managing equity of the
brands. Further, in the case of a company like Tesco the company undertakes different stages for
managing brand equity such as those highlighted by Keller. The key stages are identity, meaning,
response and relationships (Högström, et al. 2015). In the first stage, the firm focuses on
highlighting its actual brand identity, in the second stage the actual meaning of the brand is
analyzed followed by response and in the last stage brand relationship is undertaken like whether
the relationship with stakeholders is strong or not. All the stages are most important and Tesco
focuses a lot on following these stages for the survival of its brand in the market.
Figure 2: Keller brand equity model
(Source: MindTools, 2017)
For managing the equity of the brands some other additional tactics are also undertaken such as
maintaining the brand image in the market that is mainly done through effective promotional and
marketing tactics. Apart from this, brand awareness is also another tactic that is adopted in order
to manage the equity of the brands in the best possible manner. In case if the customers are
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highly aware or they know about the brand then in such case it can be said that equity of the
brands is managed in a proper manner that can surely help a lot in accomplishing the key goals
of the business. In short, without the high level of brand awareness, it is very difficult to manage
the equity of the different brands that are associated with Tesco in the market.
Along with this, brand portfolio models are also undertaken by Tesco such as branded property
and the house of brands (Jugenheimer, et al. 2015). The company relies on the branded property
model whose main attribute is the use of a single brand that does not influences other at all.
Applicability of this model has supported a lot in better brand management and has brought
favorable outcomes for Tesco in the overall market.
Conclusion
Hence, from the overall study, it is quite clear that managing a brand portfolio is essential for the
business and in turn, various tactics are present through which it is possible. The hierarchy of
brands are managed in a proper manner by the company like Tesco and for this proper planning
is done so that business practices along with the sub brands are managed in the best possible
manner.
LO3
Introduction
Brand leverage is regarded as the process of utilizing the power of the existing brand to introduce
new products in the market that are related to the present range (Kasemsap, 2018). This concept
is regarded to be most important as through this consumers can be provided different options and
they can be more familiar with the brand in the market. In short, if any specific brand does not
focus on brand leverage then in such case it will become difficult to attract new customers in the
market. Tesco as one of the brand is well established in the market and different strengths of the
brand are present that can be leveraged.
1. Strengths of the brand that can be leveraged
Tesco as one of the brand conducts an operation on a wider basis. One of the key strength is high
brand awareness where it has been found that Tesco as one of the brand is known in every type
of market where products are offered. As per view of Lee, et al. (2017) when any brand has a
high level of awareness then in such case it becomes easy to satisfy the need of the target market
in the best possible manner. Further, brand awareness can be leveraged by adding new products
in the present range and this can provide long term benefits to Tesco in the market. Along with
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this, different techniques are present through which brand leverage and extension are possible.
One of the main tactics that can be adopted is brand diversification where it is possible to
diversify the operations of the firm and through this extension is possible. Tesco can add a new
product in its present brand range and through this brand extension will be possible
(Seyedghorban, et al. 2016).
Another strength of the brand that can be leveraged is a brand value where it has been found that
Tesco as one of the brand is able to keep its promises and delivering high value to the target
market. Brand value of Tesco can be leveraged and it is one of the main strength that has been
identified. By enhancing the overall value it is possible to enhance the brand performance of
Tesco in the market. According to Sharma (2015) when brand values are properly managed and
maintained by the firm then it brings long term benefits for the businesses in the market. Large
market share is also the main strength of Tesco as one of the brands. It is a well known fact that
the market share of Tesco in the retail industry is large and this strength can be leveraged by
adding more items in the product range. Hence, through this, it can be stated that these are some
of the key strengths of the brand that can be leveraged.
For brand extension and leverage some other tactics are also present in case of Tesco. Ad-hoc
brand extension is applicable in case of Tesco where developing a new product range can be
done by the firm in the market so as to attract new customers and grabbing new opportunities in
the market (Solomon, et al. 2014). This technique can also assist Tesco as one of the brands to
operate efficiently in the market and it can support in retaining a large number of customers also.
2. Weaknesses that may need attention by providing some possible suggestions
Some weaknesses of Tesco as one of the brand are present that needs to be considered or
managed for the smooth functioning of the business operations. One of the main weaknesses is
the inability to communicate values to the target market in the most effective manner (Vallas and
Cummins, 2015). This weakness is hampering the overall performance of the brand in the market
and corrective actions are required to be undertaken to over this weakness. The main suggestion
is to communicate values with the help of some appropriate channels such as social media or any
other. This practice will surely assist a lot in overcoming this weakness.
Another weakness is a negative brand perception in the highly competitive market. In order to
overcome this attribute, it is necessary to highly quality attributes of the brand for its smooth
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functioning. Hence, these are some of the main weaknesses of the brand along with the feasible
recommendations that can be undertaken for managing the performance of the brand.
3. Collaborative and partnership agreements
Managing and maintaining brand for the longer time period is regarded to be most important as
through this the business performance can be well managed and for the long time period. In case
of the well established brand like Tesco, it has been found that company focuses on collaborating
with various agencies and indulging into partnership with marketing agencies so as to manage its
overall brand (Zenker and Braun, 2017). It has been found that Tesco conducts its business
practices in different markets and at both global and international level the firm prefers to
operate with the partnership. The partnership firm focuses on managing the overall brand and
main stress is on identifying the key elements through which brand perception can be developed
and in turn, it can bring favorable results for the company also. In short, without effective
collaboration and partnership it is very difficult to indulge in the practice of brand management
and sometime it can have a negative perception of the brand image also. Tesco prefers to do a
partnership with the agencies that are well established and they are aware of the methods through
which better branding can be done for the overall business. Hence, Tesco considers partnership
and collaborative agreement as most important for its brand management.
Conclusion
From the overall analysis, it is quite clear that some strengths and weaknesses of Tesco’s brand
are present that needs to be undertaken properly. Further, it has been found that strengths such as
high market share, strong brand value can be easily leveraged and through this business
performance can be enhanced easily. Along with this, for better brand management Tesco has
done a partnership with various external agencies where they main task is to manage the brand of
the firm and this has brought favorable results for Tesco as one of the well known brands in the
market.
LO4
Introduction
Determining brand value is regarded to be most important as through this it can be known
whether the overall brand is profitable or not (Zhang, 2015). Different tactics are present that can
be undertaken by the firm in order to know the overall value of its brand in the market. Along
9