Analysis of Tesco's Brand Management Strategies: A Case Study

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BRAND MANAGEMENT

Contents
Introduction................................................................................................................................................2
Mai Body....................................................................................................................................................3
LO1 Demonstration of an understanding of how a brand is built and managed over time.........3
P1 Explanation the importance of branding as a marketing tool and why and how it has
emerged in business practice..........................................................................................................3
P2 Analysis of the key components of a successful brand strategy for building and
managing brand equity.....................................................................................................................4
M1 Evaluation of how brands are managed successfully over time using the application of
appropriate theories, models, and concepts.................................................................................5
M2 Use of appropriate and validated examples within an organizational context...................6
LO2 Analysis of how brands are organized in portfolios; how brand hierarchies are built and
managed................................................................................................................................................7
P3 Analysis of different strategies of portfolio management, brand hierarchy, and brand
equity management..........................................................................................................................7
M3 Critical analysis of portfolio management, brand hierarchies and brand equity using
appropriate theories, models and frameworks..............................................................................8
LO3 Evaluation of how brands are leveraged/extended over time domestically and
internationally......................................................................................................................................10
P4 Evaluation of how brands are managed collaboratively and in partnership both at a
domestic and global level...............................................................................................................10
M4 Critical evaluation of the use of different techniques used to leverage and extend
brands...............................................................................................................................................11
LO4 Evaluation of techniques for measuring and managing brand value over time.................12
P5 Evaluation of different types of techniques for measuring and managing brand value
using specific organizational examples........................................................................................12
M5 Critical evaluation of the application of techniques for measuring and managing brand
value in relation to developing a strong and enduring brand....................................................14
D1 Critical evaluation that is supported by justified evidence demonstrating a
comprehensive understanding of branding within an organizational context.........................15
Conclusion...............................................................................................................................................16
References..............................................................................................................................................17
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Introduction
The brand name, brand image or reputation of the brand helps the organizations in
achieving sustainable competitive advantages from the market. The brand of a
company helps the organization in distinguishing itself from the competitors and their
offerings and hence, it supports the corporation in building a distinct image on the mind
of the target customers. In this context, the brand is considered as one of the most
effective marketing practices in order to create a name, design or symbol which helps in
identifying and differentiating a product or service from the other similar type of product
or service in the market. Hence, most of the organizations are trying to develop and
establish an effective brand for the organizations. In this matter, the leading UK retailer
Tesco Plc is significant as the specific company has provided great emphasis on brand
development and for this purpose the company has adopted efficient brand
management strategies (Brandsandbranding, 2019). The brand management strategies
are important for the development of a brand it also supports in managing the brand
effectively. The branding is considered as an art of lining up what a company's intention
about building the perception of the people about the firm with what people really think
about the organization. The brand or brand image of a company is a decisive factor
that decides whether a customer will be loyal to the company or not. Hence, like other
big companies, Tesco also stresses on effective brand management in order to extend
the Tesco brand domestically plus globally over the years. The company also aims to
manage the brand value of the company over time (Dudovskiy, 2016). The report
drops light on the brand management strategies adopted by Tesco Plc in order to
sustain its brand value in the market for a long period.
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Mai Body
LO1 Demonstration of an understanding of how a brand is built and managed
over time
P1 Explanation the importance of branding as a marketing tool and why and how
it has emerged in business practice
Branding can be said as a marketing practice that helps the organization to be
renowned in front of the people. Branding helps to identify organizational product or
service and differentiates it from other products. Branding can be able to create a
positive impression among the people related to the organizational products. Effective
branding practices can make an organizational product popular. There are many
aspects exists that helps to develop a brand. These aspects are the organizational logo,
reputation, promotional merchandise, customer service, and advertisement. These
entire elements help to create an effective brand. Branding can create a massive
positive impact on organizational operations. Through effective branding process, an
organization can be able to reach from a good company to a renowned organization.
Professional logo of the organization is one of the most significant aspects of branding.
Effective branding process can be able to attract the customers. An organization can be
able to run their organizational operations for long term purpose by using their brand
name. Apart from the existing customers, an organization can be able to attract new or
potential customers through an organizational brand image (Diplom Kaufmann (FH),
2007). In the UK, Tesco operates its organizational operations very significantly. The
brand image of the organization is very high. Effective utilization of brand image leads
the organization to Tesco towards one of the most successful retail stores in the world.
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Tesco creates significant trust within the marketplace. Through effective advertisement,
the organization Tesco is able to provide significant information about their products.
P2 Analysis of the key components of a successful brand strategy for building
and managing brand equity
The key components for building a strong brand strategy were considered as the pillars
of brand strategy. Thus there is a significant need to understand and the way through
which they could be effectively utilized.
Public relations: the well-developed program for public relations includes reputation
management. Moreover, a good quality public relation program includes corporate
news, leadership promotion and different variety of content. In order to establish
business objectives, there is a need to define the target audience and key performance
metrics. These are considered as the primary steps for establishing the strategies for
public relations. After identifying the key audience of the company the management
needs to select analysts, reporters, and social influencer. This highly specialized
personnel are very essential for the business since these individuals can lead the
human resource (Hammett, 2018).
Digital marketing: the tactics of digital marketing could be leveraged for elevating the
results of public relations and brand strategy of Tesco. Marketing is identified as one of
the significant components. Thus there is a need to create contents which are ongoing
and resources such as blog posts, white papers, and leadership content. These
resources are very crucial which could be utilized for positioning the brand.
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Social media: the social media platform is considered as one of the valuable tools to
content promotion. This facilitates the company to share their corporate perspective.
This platform also enables to engage the targeted audience at a personal level. The
management needs to focus on multiplying the followers which could enhance the
prospective customer base.
M1 Evaluation of how brands are managed successfully over time using
application of appropriate theories, models and concepts
The most important aspects of branding are brand perception. Brand perception can be
said as the ability of the customers to the brand under variable conditions. Customer-
based brand equity can be divided into four categories such as brand awareness, brand
equity, brand quality, and brand loyalty. Brand awareness is all not about the knowledge
of a customer towards a brand. Brand awareness is very important for customers to
identify the features of a brand. Perceived quality helps the organization to push the
customers to buy the organizational products. An organizational product can be able to
attract the attention of the customers through its quality. Quality products are very much
able to attract customers. Brand equity can be an aid as an important intangible asset
(Heding, Knudtzen, and Bjerre, 2019). These types of intangible asset have financial
and psychological value to an organization. Brand loyalty is the most important aspect
of brand equity. Tesco is operating its organizational operations very effectively in the
UK. The organization is able to create a significant brand image. The people of the UK
can be able to easily identify the products of Tesco. The organization is earning a
significant amount of profit through their branding process. to enhance the brand image,
it is very important for the organization to provide quality services to the customers.
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Branding and quality of a product have a direct relationship in order to enhance
organizational activities. Brand loyalty is a very important aspect of the organization.
Brand loyalty aspect can be able to retain the organizational customer-base (Kapferer,
2019).
M2 Use of appropriate and validated examples within an organizational context
The current marketing strategies of Tesco have focused on regaining the stakeholders'
trust in their brand. The organization has put emphasis on "Every Little Helps" strapline.
In the due course, this would strengthen the company's core competitive benefit. Thus
the organization has been included some of the marketing communication mix elements
like media and print advertising, events, public relations, and sales promotions. The
retail chain of the organization has given up the emotional campaign. Thus instead of an
emotional campaign, the company has made use of humor. In this campaign, some
family character was employed during the period of Christmas. The characters have
played the role of Ben Miller and Ruth Jones (Khuranaandkhurana, 2019).
Some forms of company's sales promotion had played an essential role in the marketing
strategy of Tesco. There are some of the following formats in which Tesco has lead to a
significant amount of promotion:
The Tesco being a supermarket chain provides free gifts like “Buy one and get one
free”. These promotion activities boost the company’s sales for only some range of
goods.
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Clubcard: the customers tend to gather one point for every GBP that is spent within
Tesco. During the year the customers receive vouchers and statements numbers of
times which is equivalent to the points they gathered.
The Tesco has also used point of sale materials promotion. This promotion has been
carried out with the manufacturers and corporation. Thus display stands, posters, and
many different points of sale promotion materials were incorporated (Raj, 2019).
LO2 Analysis of how brands are organized in portfolios; how brand hierarchies
are built and managed
P3 Analysis of different strategies of portfolio management, brand hierarchy, and
brand equity management
The concept of brand equity focuses on the significance of the brand in the
development of marketing policies and strategies of a company. The brand equity can
be defined as the commercial value of a brand, which can be derived from the point of
views of the customers about a specific product's brand name instead of the product or
service itself. The Tesco Company has adopted efficient strategies to manage its
diverse portfolios. The brand equity supports in describing the value of a specific brand
in accordance with the point of views of the potential customers of the brand. The
brand portfolio is like an umbrella under which the entire diverse types of brands of an
organization are placed and as the entire brand is from a specific company hence, they
are interlinked. In this case, if one particular brand image damages somehow then it will
affect the other brand also. Hence, organizations have to apply effective brand portfolio
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management in order to maintain brand images effectively (Rajagopal and Ranchez,
2016).
The brand hierarchy is a technique by which an organization can be able to summarize
the organizational branding strategy by showing the numbers plus characteristics of the
common and distinctive elements of the brand across the organizational products
disclosing the precise ordering of the brand elements. The Tesco Plc provides greater
efforts to build an efficient brand hierarchy by effective branding of the company as a
whole plus the company has stressed on the branding of its individual sections. It has
developed classes of diverse service in order to provide ultimate shopping experiences
to the customers.
Apart from this, Tesco also focuses on establishing brand equity at the entire different
level of brand hierarchy by providing added value in the collection of buying or delivery
of the product offerings by the organization. The company has launched various
shopper programs on the basis of the Tesco loyalty card program named Tesco
Clubcard. In these ways, the leading retailer Tesco, with its efficient portfolio
management, Brand Hierarchy, and brand equity management strategies sustains its
brand image and brand value. These also support in extending the brand domestically
and globally (Schultz, 2019).
M3 Critical analysis of portfolio management, brand hierarchies and brand equity
using appropriate theories, models and frameworks
There are several theories and concepts that help in the critical analysis of portfolio
management, brand hierarchies, along with brand equity. However, mainly seven
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theoretical approaches which help in gaining deep insights into the branding strategies
of an organization, nature of the brand and the organizational objectives towards
effective brand development.
The undertaken company Tesco Plc has adopted various branding strategies and the
entire strategies are developed with the specific target of the organization. The
economic approach is one of the most important approaches and according to this
approach; the brands are an integral part of the organization's conventional marketing
mix. The development of the brand helps in achieving the financial goal and objectives
of the organization (Sharma, 2016).
The identity approach defines that the brand is closely connected to the organizational
identity and with the help of efficient brand development; the organizational identity is
also improved. Besides this, there is a consumer-based approach and in accordance
with this approach, the brand is a link with the consumer association. The personality
approach regarding the brand has provided the brand with a human-like characteristic.
Similarly, the relational approach defines the brand as a practical relationship partner.
Furthermore, the community approach depicts the brand as an important point for social
interaction. Hence, the brand plays a vital role in social interaction and most of the
important Tesco brands are effective in this matter. Besides this, the cultural approach
depicts the brand as an integral part of the wider cultural fabric.
With an efficient brand portfolio strategy, Tesco Plc can be able to gain a substantial
level of economic benefits and the company has made a unique identity for itself
through these brands. Besides this, the brands help in establishing an effective
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relationship with the customers. The cultural and community approach support Tesco
Plc in recognizing the cultural aspect of a community and developing effective
marketing mix for its brand to establish the brand in the market (Smart Insights, 2017).
LO3 Evaluation of how brands are leveraged/extended over time domestically and
internationally
P4 Evaluation of how brands are managed collaboratively and in partnership both
at a domestic and global level
Tesco is one of the most important and efficient retail service providers across the
world. In the domestic level and global level, the organization is operating its
organizational activities very effectively. Tesco operates its organizational activities in
USA, Taiwan, China, and some other nations. The international operation of Tesco
shows the organizational efficiency level. By using organizational branding image,
Tesco is increasing its market share in the UK. Brand image is very important for
organizational management to enhance their organizational operations globally.
Through online, the organization operates its organizational operations globally. A
massive presence online is enhancing the image of Tesco. In Asia and Europe, the
organization Tesco is providing significant services to the customers. Most of the
organizational revenue of Tesco is generated from the market of the UK. It cannot be
denied that the organization operating their organizational operations very significantly
in the UK. Due to the high brand image, the organization Tesco has taken significant
competitive advantage from its competitors such as Sainsbury. In the case of global
activity, the organization has to enhance its brand image to compete with international
retail stores. The brand image of Tesco helps organizational management to expand
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their organizational branches in other countries. As a recognized brand, Tesco can be
able to enter into a new market (walkers and, 2019).
M4 Critical evaluation of the use of different techniques used to leverage and
extend brands
There are several techniques exists that has been used in the extension of brands. All
of the important techniques have been given below in detailed:
 Shifting of form – the shifting of form is one of the most innovative activities that
help to increase the organizational efficiency level. The organization Tesco can
change its method of delivery to increase transparency of their organizational
activities. Ingredient profile and retail outlet are very helpful for the organization
Tesco to extend the organizational brand.
 Special expertise – Expertise of a brand can provide significant services to the
customers. The customers can be able to understand several things about a
product through expertise. Customer engagement can increase by effective
implementation of brand expertise.
 Companion products – Companion products can be able to create a brand
extension. Tesco is a renowned retail organization in the UK. It sales varieties of
products and services to the customers. By providing companion products, the
organization can be able to increase its customers' base. The customers can be
able to get a companion product under a roof. For example, if the organization is
selling the coffee machine, then it should also provide coffee. This type of
strategy helps in the extension of the brand.
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