Tesco PLC Brand Management: Enhancing Market Share

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UNIT 41: BRAND MANAGEMENT (ICN)
Pearson BTEC HND in Business (RQF)
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Executive Summary
This report has been created as a marketing consultant in UK based organisation which is Tesco
PLC. This report focuses on strengthening the brand for enhancement of the market share.
Because of the experience and skills into consulting on branding for worldwide organisations, I
have to offer them advice regarding management of grants in a successful manner. This report is
created as advised to the senior management team for assistance in understanding the in which
effective brand management can be attained.

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Table of Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
LO1 Demonstrate an understanding of how a brand is built and managed over time................................4
LO2: Analyse how brands are organised in portfolios; how brand hierarchies are built and managed.......6
LO3 Evaluate how brands are leveraged/extended over time domestically and internationally................7
LO4 Evaluate techniques for measuring and managing brand value over time.........................................10
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13

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Introduction
The brand management involves management of tangible and intangible features of a brand.
When product brands are considered then the tangibles involve the product itself, its price,
package etc. (Foroudi, 2019). Whereas when services are to be considered then the tangibles
involve experiences of customers. The intangibles involve emotional connectivity with goods
and services of a particular brand. Branding is collection of different marketing mix methods into
a complete send for giving an identity. It is nothing but the capture of niche market for the
particular goods and services and regarding creation of confidence in the present and potential
clients’ minds that the particular brand is a unique way to resolve their issues and demands.
LO1 Demonstrate an understanding of how a brand is built and managed over time
A brand is a collective effect or lasting impression from all what is observed, heard or
experienced by the clients who come in contact with the organisation or utilise its goods and
services. For creation of a brand the organisation has to manage the impact that the offered goods
and services have provided to the customers (Ind & Bjerke, 2015). As per the case study of
Tesco PLC, the building and maintaining of brand would need the aspects given below:
 Consistency: The brand must have the same message and impact on each and every
customer. nobody should be an exception. Taking an example of McDonald's, even if an
individual goes to Bangkok or any Asian country and picks out any McDonald's by just
considering the Golden Arches, on going inside the outlet, the individual will be able to order
a burger and fries without the need of using any other language. even without having a single
bite, it can be stated that it will have the same taste like the past burgers eaten in any other
McDonald's. Similar is the case of Tesco, organisation has been capable of providing
consistency and people go to Tesco because of their way of the pricing strategies and quality
of goods. The message of consistency can be created by the business its same quality
offerings.
 Differentiation: The brand building requires creation of gap among the particular brand and
its competitors in the minds of customers (Jurisic & Azevedo, 2010). Generally the
organisations which are part of the same industry offer identical and similar goods and the
difference is only e in the brand. For differentiation, the organisation will have to work

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against different brands in the same industry. There has to be recognition of the small
difference among the goods and services offered by Tesco and its competitors. After
discovering it, it is important that hype is created in every manner by use of marketing
campaigns. If the customers are provided with the same choices in terms of pricing and
quality then they will simply go to the brand which is closest at that instance. By
differentiation of the brand, Tesco will encourage them to seek Tesco out rather than the
competition. Managing the brand has included tackling various shortcomings has
organisation sold lot of its side businesses like giraffe restaurant, Harris + Hool coffee shop
because it was recognised that these work causing distractions and the business was not able
to afford them (tesco, 2019). The brand was not getting benefited by them. rather the focus
was laid on re-association of Tesco with the quality retailers in terms of improved services,
convenience and value. There made sure that always there was more number of employees
available within outlets and availability improved by little decrease in the size of its range.
There was introduction of services like same day click and collect therefore the organisation
became the initial Supermarket for partner with the technology platform IFTTT, where the
provision of automated online shopping was there (Brand Story, 2019).
 Creativity: There has to be creative and innovative idea with unique message delivered by
Creative methods so that the brand can be built and its status can be improved. Even though
all the “big four” supermarkets have dropped their prices in the past few years for dealing
with competition still Tesco has brought in much more bolder step because it introduced a set
of farm brands for economic fresh produce. The organisation has been motivated by the style
of branding utilised by discounters by invention of farm names. There was lot of criticism by
the branding professionals and this let the national farmers Union to refer this brand to
trading standards however the positive response from customers for scene through the
repetitive purchase.
 Careful watch: For building a brand and making it grow, it has to be carefully watched
(Wang, 2017). The organisation should not let the competitors infringe upon and takeover the
unique attributes of the brand. This way the brand value can be protected.
 Review of materials: The organisation has to make sure that each one of the promotional
materials of the organisation has the similar appearance, feel and message. In case the
materials do not match like the green pamphlet and a worthy blue poster then there is a

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complicated indications sent in various ways making the clients to be confused. The
organisation can focus on brand building by ensuring that there is similarity to every material
and it matches the organisational messages.
 Reviewing of the company culture: The organisation can build up the brand by sending out
the brand messages through the workers. In case of Tesco, the employees should also be
made to live a Lifestyle which is full of good and healthy choices. Even while hiring; it has
to be kept in mind that the benefits of the working conditions are shown for attracting and
keeping the workers which are needed. The company culture would help in building the
brand.
A simple way of building and maintaining a brand is:
1. To test out the new methods of marketing and branding the goods and services,
2. Reviewing what was right in the past and where the improvements have to be made,
3. Enhancing on the image which is already there in the market,
4. Repeating the first three steps until the brand becomes successful (Ferguson & Brown,
2011).
LO2: Analyse how brands are organised in portfolios; how brand hierarchies are built and
managed
When Tesco tries to run each of its brands fully separate from one another, then there can be
complexity, confusion or ineffectiveness. Use of brand portfolio for focusing on big picture,
making resources to be allocated in an improved manner to the place where they can bring
maximum good therefore Supreme values created and unnecessary overlapping is reduced. For
building the brand portfolios, 3 relationship structures are utilised (Åsberg, 2015). One is the
utilisation of single brand name for the whole of the business, where differentiation not done
amongst any sub-brands. The Other type utilizes primary brand for endorsing sub brands and the
third type of structure makes use of a house of brands for creating individual brands. As the
creation of a brand portfolio has direct effect on the success and growth of the organisation, it is
important that such a portfolio is organised in a proper way.
An ideal portfolio is created with the business vision of the future in the Marketplace. It has to
prioritise major elements and markets which are important for the success in case the brand is not
fitted in the portfolio any longer than there has to be alteration to conform or completely

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eliminate such brand (Prophet.com, 2012). The brand portfolio must continue making
acquisitions for filling any gaps.
The big businesses such as Tesco operate under various different plants, services and
organisations therefore brand portfolio is utilised for including all the entities under single
umbrella. These brands have separate trademarks and they still operate as single business entity.
But to market these, brand portfolio is utilised for grouping them together. Brand portfolios are
useful for decreasing customer confusion with respect to who owns the specific brand. Tesco
PLC began as a grocery retail business within England in the year 1919. But it has developed
into an MNC and lot of its development has been by acquisition of various other organisations.
The acquisitions started in 1950 and continued till now therefore Tesco has many organisations.
Brand hierarchy is created by summarizing the brand strategy by displaying the kind and
numbers of common and different brand elements all over the products of the business. It reveals
the explicit structure of brand elements. The brand hierarchy is created in shape of corporate
branding from family branding, individual branding and modifiers. The brand hierarchy of Tesco
is also termed as its brand architecture and it acts as a guide for dealing with various goods,
services and some product brands for enhancing business sales (The Economic Times, 2007). It
is not necessary for every organisation to have detailed goods and services structures but since
Tesco has various goods and services in its portfolio therefore it is important to organise them so
that the business does not lose its customers and revenues. Brand hierarchy is useful way of
graphical portraying of the branding strategy of the business. It is created on the realisation that
the product can be branded in various manners as per the number of new and existing brand
attributes which are utilised and the way there amalgamated for single product. As some brand
elements are utilised to create more than single brand, a hierarchy can be created to show how
goods are nested with other goods as of their common brand attributes. A few elements of the
brands might be mutual for various goods and other brand elements might be exclusive to
particular products.
LO3 Evaluate how brands are leveraged/extended over time domestically and
internationally
Brands are leverage over time by utilising the power of the existing brand name for supporting
the organisational entrance into any new category which is linking one item to other (Smithers,

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2016). By brand leveraging, Tesco is able to communicate valuable goods information to
customers regarding its new products. The customers come to the retail outlets having lot of free
existing knowledge regarding the quality of the brand and therefore they can relate such
knowledge to new goods which are part of the same brand (Hawkins, 2017). Usually the
consumers keep a consistent brand perception still there is no disappointment therefore a risky
benefit is created for the established brands. Brand leveraging is significant for Tesco because
when it wants to introduce new products, there is a sense of familiarity provided by using the
positive brand features for the new product type. The immediate resignation of the brand is
created and customers who have favourable brand opinion will try new products which they
think have same kind of quality and features like the original favourite one (Hapsari, 2018).
For leveraging the brand in domestic or international area, it is important that the organisation
check with critical questions for or best decision:
 Does the new item match with the established product family?
 Does the brand have features or characteristics which can be quickly and successfully carried
into fresh categories?
 Is the brand name of Tesco strengthened, supported or deleted by representation of
differentiated goods?
 Does Tesco possess the facilities required for manufacturing and distributing a fresh and
differentiated item?
 Will the cost of product development and marketing be covered by selling the new goods?
The brand leveraging strategy can be highly useful and effective if it is rightly applied and gives
new products with appropriate brand image.
As per Urbany (2016), Tesco has leveraged the place element of the 4 P's of marketing for
Digital fashion. This means distribution has been leveraged by the organisation. Place has a huge
economic value. The clients should get access to the goods for purchasing them. In case of Tesco
also, the globally known retailer of grocery was experiencing interesting competitive challenge
in South Korea. Organisation experienced huge disadvantage regarding the accessibility of
outlets. It is the top player in the market having lots of retail outlets. The organisations assume
that distribution and value created by the business for its clients is fixed. This assumption was
based on the commitment to different channels and locations and the problems of bringing

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important change in short run. Tesco dealt with these issues with not limiting its search for new
ways of delivering customer value by place strategy. Rather it started a quest to grow by laying
stress on understanding the client buying decision and the consumption patterns of customers. it
was seen by Tesco that grocery shopping was important and therefore it had to be squeezed Into
Busy weekends or there was need of late night visits to the outlets. With expanding usage of
mobile phones for consumption related acts, the organisation brought upgrade and powerful idea
where digital stores were created in train stations of Korea and different public locations where
there were lots of customers. There were printed images of products put on the cells of the
outlets as well as on the walls of the transit stations so that people could scan the barcode and
shop more using their mobiles with making online payments and ensuring that delivery schedule
for their houses. So Tesco was successful in changing the waiting time of customers into
shopping times. This way the leverage was created by Tesco in South Korea i.e. by “place” (an
important P from marketing mix).
The brand leveraging and equity extension for brand is an approach where the business enters
new and attractive segments with the active brands. The brand hierarchy from top-to-bottom
include corporate brand, range brand, individual brand and modifier.
 Corporate brand: The topmost level of brand hierarchy always has single-brand, corporate or
organisational brand. For the legal perspective of the organisation, corporate brand is always
found somewhere within the item or package, even though it might be the case that the label
of the organisation subsidiary might be there rather than the name of the business.
 Range brand: For the subsequent level, the family brand is described as the brand which is
utilised in more than one category of items however is not the name of the organisation. In
case the land is applicable to various products then it acts as the family brand (Sang-Uck,
2012).
 Individual brand: An individual or product line brand is described as a brand which has been
limited to just single product category, even though it might be utilised for various different
kinds of products in the same category. Each of the brands has a dominant position in the
product category however the main brands candy refined by use of sub branding.
 Modifier: Modifier is a way of designating particular kind of item or model for any version
of the item.

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While creating the brand strategy the various levels of hierarchy might get different significance.
Tesco traditionally downplayed the corporate name for branding its products even though the
brand name is significantly utilised to support the marketing activities. These changes in the
emphasis are ways of the organisation to hardness the positive link and mitigation of the negative
relations of various brands in different perspectives (S. Busen, Mustaffa & Bahtiar, 2016). There
are different methods of placing additional or less stress on various elements which collaborate
to build a brand.
LO4 Evaluate techniques for measuring and managing brand value over time
The brand development needs money and it is important to be capable of forecasting the value of
the brand for executive leadership as well as investors. Brands assist in identifying and
differentiating goods and services from the competitors. There are different methods of
measuring the brand value and the idea of value is usually tough to understand. The value is a
different perspective to every individual. Therefore value cannot be considered as an objective
idea. Value is created by usage of the brand (Majerova and Kliestik, 2015).
The brand valuation can be described as a procedure which is utilised for calculation of the value
of the brand or the amount of funds any other party is ready to pay for it. This means it is the
financial worth of the brand. Brand equity is about the consumer based perspective and brand
value is the company based perspective. For valuation of the bank, the three approaches are:
 Legal assessment: It is the approach by which a difference among the trademarks, intangible
assets and brands is drawn for a particular business. There is a need for determining the
intellectual property rights and intangible assets so that the legal protection afforded to the
brand can be identified. There is a need for risk assessment and due diligence in case of legal
evaluation.
 Behavioural assessment: It includes understanding and creating a perspective on the probable
stakeholder behaviour with respect to particular item, customer segments and geography
where the brand is operational (Kirk, Ray and Wilson, 2012). Utilizes method it is important
that organisation knows the market size and Its trends, the influence of the brand in purchase
decisions and the economic benefits which the brand would be able to provide. The brand
value is based on the basis of why a possible stakeholder would have preference for the brand

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rather than its competitors as well as the strength of the brand which can enhance the
upcoming sales volume, risks and revenues.
 Financial assessment: It is highly utilised brand valuation approach which makes use of
further four methods which are formulary, economic, market and cost methods.
 Cost based brand valuation: The valuation of brand is done by use of the sum of
individual costs are the values of brand Assets and liabilities. It is the sum of the
expenses that have been there for building the brand from the beginning. Therefore it
would involve historical advertisement cost, promotion expenses, expenses of campaigns,
registration expenses and licensing fee. Way of measuring the brand value can be utilised
in the initial phases of brand creation for the development of brand.
 Market based brand valuation: In this method the organisation makes use of an additional
valuation waves when the similar brands are compared on the basis of their sales. The
usage of compare variable market transactions like particular sale stock quotations etc. is
there (Tran, Moritaka, Liu & Fukuda, 2018).
 Informative brand valuation: This approach is also known as the in use method where the
valuation of future net earnings is done which can be linked with the brand for
determining the current worth of the brand as per its usage (Morrison, 2015).
 Formulary approach: In the formulary approach the commercial approach is utilised by
consultation of different organisations. It is just like economic for income usage however
it applies commercial perspective and uses various criteria for determination of the value
of the brand. It would involve inter-brand method, finance world method, brand Finance
Limited valuation, and brand equity ten methods.
The brand strategy is therefore the completely planned usage and development of resources of
the business for attaining particular brand development goals against the competition. Tesco
provides with various products and they are lots of choices along with strong brand strategy
which involves the brand value, Tesco and finest brands (Vizard et al., 2016). All these brands
are created for various segments of the market and every product is exclusive to them. This
brand has positioned itself as an environmental friendly business. This kind of positioning is
achieved by giving clubcard points for or being “green”. The buyers can get these points by
reuse of baggage, making choice of bag-less delivery when online order is placed as well as
recycling of aluminium cans, mobile phones and old inkjet cartridges.

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The brand has also positioned itself by perceptual mapping. The organisation finds out how its
goods and services are perceived on the basis of the major features valued by the customers. This
way the band is capable of understanding how far it is from getting to the ideal position. By
mapping of the goods and services together, it is feasible to make comparison against one
another (Awanis and Torelli, 2018). So considering this case study, it can be said that Tesco has
been utilising an effective brand management strategy and therefore it has been capable of
maintaining a unique position in the retail chain industry.
Conclusion
With fast permeation of Technology, retail trade, which is highly connected with the daily life of
people, is turning to be main area of attention. But in the retail trade business, the supermarkets
are observed to be key way of marketing from are not only providing the customers with the
choices regarding food items but also regarding the non food items like clothes and electric
gadgets. With the globalisation there have been lots of commercial opportunities to the retail
trade organisations which are focusing on expansion into idly attractive markets. As Tesco is the
biggest retailer in UK and it stands third all over the globe therefore it has played adequate role
of leader regarding the usage of Information Technology for getting the referral data and
marketing strategies for strengthening the loyalty index of customers and expansion of the share
of brand.
Business strategy is the term which means that the organisation Lays down strategy for
attainment of the desired goals. It is the approach of an organisation conducting itself and its
long run business plans including the needs of resources required to achieve the specific goals.
So strategy is a complete planned development of resources of the organisation to accomplish
particular goals against its competition.