Building and Managing Brand Equity: A Case Study of Virgin Atlantic

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BRAND MANAGEMENT

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1 (Building and managing brand overtime)............................................................................2
Introduction..................................................................................................................................2
Overview of brand and the brand equity.....................................................................................2
Brand management footprint on Virgin Atlantic.........................................................................3
Role of marketing department in developing Brand Equity........................................................4
Brand development......................................................................................................................4
Strategies for managing and building brand equity.....................................................................5
Strategy for strengthening the brand equity.................................................................................6
Conclusion...................................................................................................................................8
Task 2 (Brand portfolio and hierarchy management)......................................................................9
Analyzing Brand Portfolio Strategy in Virgin Atlantic...............................................................9
Brand hierarchy management illustration in organisation portfolio..........................................10
Strategies for managing brand equity in organisation’s portfolio.............................................11
Task 3 (Brand extension and leverage).........................................................................................12
Brand leveraging and its strength..............................................................................................12
Techniques and weaknesses to handle brand leveraging...........................................................12
Partnership and Collaborative Agreements...............................................................................13
Task 4 (Measuring and managing brand value)............................................................................14
Brand value................................................................................................................................14
Brand awareness........................................................................................................................14
Market share..............................................................................................................................14
Consumer attitudes....................................................................................................................15
Purchasing intent.......................................................................................................................15

Brand auditing...........................................................................................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

LIST OF FIGURES
Figure 1: Brand management essentials..........................................................................................3
Figure 2: Model for brand development..........................................................................................5
Figure 3: Elements of brand revitalization......................................................................................6
Figure 4: Aaker, brand model of equity...........................................................................................7
Figure 5: Brand models...................................................................................................................9
Figure 6: Virgin brand hierarchy...................................................................................................10
Figure 7: Virgin Atlantic market share..........................................................................................15

Introduction
The term brand requires thorough knowledge as managing brand is identified for planning and
evaluation of perceiving brand in competitive market. The organisation is popularized from its
brand name that helps in building better relationship and collaborations with target market thus
plays significant role in managing brand. The current will provide branding significance that is
called as marketing tool for explaining its use in business practises of Virgin Atlantic with also
analyzing brand strategy components that aids in managing and developing brand equity of the
organisation selected. It will emphasize on strategies related to management of portfolio, brand
equity and hierarchy. Further, the report will successfully evaluate the method of collaboration
and partnerships that helps in maintaining brand at domestic as well as global level for Virgin
Atlantic. At last, the study will show several techniques that help in calculating brand value by
describing through examples related to organisation.
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Task 1 (Building and managing brand overtime)
‘Brand is Power’
(By: ABC)
Introduction
The below task will determine branding importance in reference to Virgin Atlantic. In given case
study, an advertisement firm named ‘Optimum Impression Ltd” is dispensed with responsible
task for handling brand image and reputation by including brand and marketing manager for
Virgin Atlantic by designing brochure for better publishing and promoting the brand name.
Overview of brand and the brand equity
Brand refers to perfect marketing actions that develops particular design, logo, name, symbol
that dispenses the differentiated identity of product in front of market rivals for keeping positive
traces on consumer minds. Branding is identified as suitable approach that provides easy product
identification, gives motivation, interaction of business strategies, developing emotional relations
with customers etc (Sasmita and Mohd Suki, 2015). It provides legal security and safety to brand
name and image from market competition as tough rivals might copy signs, symbols, logo that
can be secured by trademarks. Thus, marketing manager of organisation has to develop strategies
and plans brand name and image promotion of Virgin Atlantic by understanding marketing
sessions.
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Figure 1: Brand management essentials
(Source: Anthill Magazine, 2018)
On other side, brand equity is determined as process of measuring brand’s worth from legal and
valid effectiveness of branding elements. It aids in boosting customer loyalty by focusing on
price aspect that is known as sensitive factor from customer side as it provides opportunity in
which consumer refers the brand to other people (Heinberg, et.al, 2019). The string techniques
initiated in branding aids in boosting reputation and sales to deal with market competitors.
Brand management footprint on Virgin Atlantic
The brand equity is determined as essential ingredient that aids in creating positive feelings and
sentiments with potential customers by providing correct and relevant product information. From
last five decades, the organisation’s logo and name has been emerged within relative obscurity
that aids in representing widely known businesses across world. It has expanded multiple sectors
as well as industries by aiming to provide the consumer experience without targeting product or
good selling as priority. Brand name is serious term that decides the future and market reputation
of organisations as just attractive logo or symbol is not sufficient in competitive world. Brand is
Power is highly applicable as it aids in attracting customers by developing strong foundation that
consist of aims and objectives of business firms.
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In case of Virgin Atlantic, it just not managed its image and position in one field, it has proved
successful in every business field such as health, travel, communications or entertainment that
has made is most desired universal organisation (Rosenbaum-Elliott, et.al, 2015).
Role of marketing department in developing Brand Equity
Marketing department of Virgin Atlantic plays vital role in developing brand equity by doing
worldwide promotions of business products and activities that aids in popularizing brand name
of organisation. The department is highly active and skilled that reaches to investors, community,
customers, and prospects by bringing firm’s bran image into positive light. Brand equity is
essential part for Virgin Atlantic as its helps in gaining consumer trust, provides higher profits,
market image, differentiated identify etc. While developing brand equity marketing manager
aims on various factors to promote such as strategy, communication, decision making, value,
emotional bonds etc for achieving competitive edge and high consumer base. For example – The
employers of Virgin Atlantic targeting design and creative manager specialized in content, the
motion graphics, animation etc that will boost chances to promote its service at global level
(Heding, et.al, 2015). Thus, it is creating wider platform for promotions by keeping important
factors in view.
Brand development
The Virgin Atlantic is highly famous within its customers by dispensing quality products. The
goods to satisfy customers are given during the journey with qualified staff and culture. Here, the
brand name can be promoted in better way by marketing department by informing about services
given in airline and at time journey time. The development of brand can be done through brand
pyramid that carries several constituents such as brand product, brand idea, functional benefits,
core values and emotional values.
It is essential for Optimum Impression Ltd for focusing on the constituents present in brand
pyramid while promoting Virgin Atlantic brand image through strategic plans. The travelling
related information much be promoted in updated manner that should include food services,
seating and baggage facilities that will further add value to brand image. Moreover, consumer
satisfaction and pricing policies will also provide opportunity for increasing consumer base while
promotions. For example – Virgin Atlantic use comparative strategies of pricing that aids in
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product development with low prices that are lower that other airline industries (Atwal and
Williams, 2017).
Figure 2: Model for brand development
(Source: Jerome Conlon, 2015)
Strategies for managing and building brand equity
The brand extension is identified the method of expanding brand by popularizing from its goods
that will aids in leveraging brand reputation. For example – Virgin brand has planned to enter in
cola market by aiming to increase the brand name in UK markets. Similarly, it is important for
extending brand in variety of services that helps in developing positive brand image across the
world. In Virgin Atlantic services can be modified in updated manner in which consumer needs
are mentioned with speedy service and extra output that will help in hiking the sales.
Long term promotion plan and strategies needs to be created by marketing mangers of Optimum
Impression Ltd (Heinrich, et.al, 2016). The best and suitable method is brand reinforcements. It
is beneficial strategy as marketing manager has to initiate method that helps in brand survival in
the rival market by constantly displaying important and meaning of brand to targeted customers.
It particularly aims at organisation’s product life cycle as the person that is marketing brand
name and image always explains benefits of product that have high chances to survive in market.
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For example – the aircraft undercarriage has developed new features by changing its logo in
colour of dark purple that can be easily recognised at heights or on lands.
Figure 3: Elements of brand revitalization
(Source – Brand Revitalization, 2017)
The another strategy that can be initiated in Virgin Atlantic is brand revitalization under that the
good developed by organisation gets old that breaks it’s identify as it has minimized the profits
of organisation (Närvänen and Goulding, 2016). For example – Starbucks was identified as local
coffee seller in Seattle that has now modified into strong brand of coffee by constantly focusing
on expansion plans, rebranding as well as franchising campaigns that has helped it to grow on
constant basis. Just like that, it is important for Virgin Atlantic to develop plans for repositioning
the failure of brand by aiming to develop new plans and innovative ideas that might help in
saving from losing market. The case of Boeing 747, in which birds entered into engine that, has
caused damage after which it was not proved as certified airline industry. But from constant
dedication and branding strategies it has managed image in flights again.
Strategy for strengthening the brand equity
The marketing department has planned to increase brand equity of Virgin Atlantic that can be
done and explained from its quality services that aids in satisfying global customers. Hence,
marketing team of Virgin Atlantic needs to practise Aaker’s Brand Equity model for identifying
the situations that are providing issues and problems that can be focused for improvement to
develop brand image and reputation (Chatzipanagiotou, et.al, 2016).
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Aaker’s Brand Equity Theory
The theory was launched from David A. Aaker which has identified brand equity set consist of
brand assets and liabilities which are interlinked to brand name or symbol. The empowerment of
brand is explained with five elements that are known as branding policies. For making strong
brand equity of Virgin Atlantic following factors needs to be considered that includes:
Figure 4: Aaker, brand model of equity
(Source: Jana Hawley, 2010)
Perceived Quality – It refers to boundary in which the organisation plans its products by setting
its quality required (Theurer, et.al, 2018). The guidance to employees should be in positive
manner by explaining demerits of compromising with quality standards.
Brand Loyalty – It explains limit under which the loyalty of customers towards the services are
recorded. Hence, the flights of Virgin Atlantic need to boost brand loyalty by rating charges that
falls under consumer budget.
Brand Awareness – It explains product identification in market. The aim of Virgin Atlantic must
be regular for boosting consumer base that will give strong brand exposure in satisfactory rates.
Brand Association – Te brand that aims in creating associations. It is important for airline
industry for customization of its services for gaining strong market positioning.
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Other Proprietary Assets – The brand image is dignified from its related trade partners, patents
and intellectual rights that will help in increasing global competitiveness across world with
strong brand image and name (Davcik, et.al, 2015).
Conclusion
The task above has concluded importance of brand and brand equity that helps in boosting image
and reputation of Virgin Atlantic. The models have created major impact in developing the brand
positioning in competitive market. The famous and strong brand image provides image, profits,
success and growth.
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