Comprehensive Brand Management Report: Virgin Mobile Group

This report provides a comprehensive analysis of brand management principles, focusing on the case of Virgin Mobile. It begins by highlighting the importance of branding as a marketing tool and its evolution in business practice. The report then delves into the key components of a successful brand strategy, including building and managing brand equity, as well as the strategies of portfolio management, brand equity management, and brand hierarchy. The report also evaluates how brands are managed collaboratively and in partnership at both domestic and global levels. Furthermore, the report examines various techniques for measuring and managing brand value, using organizational examples to illustrate these concepts. The analysis covers customer-based brand equity models, brand portfolio strategies, and the Aaker model of brand equity, offering insights into how Virgin Mobile can effectively manage its brand for long-term sustainability and profitability in the UK market.

Brand Management

Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
Importance of branding as a marketing tool and why and how it has emerged in business
practice........................................................................................................................................1
P2 Description on key components of successful brand strategy for building and managing
brand equity. ...............................................................................................................................2
P3 Description on the differ strategies of portfolio management, brand equity management
and brand hierarchy. ...................................................................................................................5
P4. Evaluation of how brands are managed collaboratively and in partnership both at a
domestic and global level............................................................................................................1
P5 Evaluation on the types of techniques for measuring and managing brand value with the
use of organisational example. ...................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Brand management works as to managing the tangible and intangible character so that
firm can perform its activities effectively (Singh and Uncles, 2016). In, management there are
number of techniques that helps to perceived value of commodities. Thus, it can be said that the
effective brand management helps to build loyal customers with help of positive brand
association. Moreover, it is essential to develop the strategic plan so it will be easy to manage
brand equity. The main aim behind managing the brand is to achieve the firms overall vision and
goals.
The present report is based on the business activities of the Virgin mobile group, it is
mobile phone services provider operating its services in the UK. Thus, the report will look over
upon various things as are importance of branding as marketing tool, key components of
successful marketing strategy, strategies of portfolio management, how brand can be managed at
the global as well domestic market and types of technique for measuring an managing brand in
market. The main aim behind conducting this report is to managing the brand effective so that
firm can have long terms sustainability and profitability.
LO1
Importance of branding as a marketing tool and why and how it has emerged in business practice
Branding is the process that is followed by the organization that will help the business
entity to have a good market share. A brand is an assurance that is been offered by a business
enterprise that will support the positive growth and improvement in the brand image of the firm.
This is also important as psychologically, customers tends to purchase the good and services of a
well established and recognized brand (Singh and Uncles, 2016). This has a positive influence on
the sales and development of the selected business entity. Besides this, it will help the selected
business entity that will help the organization to enhance the quality of their marketing
operations and actions which will support the effective placing of a wide range of business
operations and activities. Brand management is one of the ongoing process and it is also
inclusive of maintaining consistency around the brand and it works as to deliver the values that
organization holds to create the positive association with audience. Brand management plays the
crucial role and it also helps to customers to services. In this term, it can be said that developing
good relationship with the target market is essential for managing the brand in enterprise.
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Some major factors that proves that an effective branding can go as a marketing tool for a firm
are as follows:
 Increase customer trust level: As brand is a positive agreement between a customer and
a firm offering high quality products and services, it will help to assure the buyer about
the effectiveness of goods that they are purchasing. The better placing of a brand within
the market will help the business enterprise to have a good rise in meeting customer
satisfaction level. As the trust level and business bonding between a customer and the
brand or firm will be strong, the buyers will prefer to buy the products and services from
that company, leading to rise in its revenue generation and profitability to a greater
extent.
 Improves the firm's reputation: A good and positive branding will improve the
significant brand image and thus will lead to the positive rise in the market reputation and
recognition of a business organization. The improvement in the organizational reputation
will furthermore cause the improvement of the revenue generation and will help the
selected business enterprise to promote its products and services properly. Other than
this, a good market reputation will attract a significant number of investors and share
holders to lay down their resources within the organization. Following this measure will
have a positive impact on both brand and the firm.
 Enhance the marketing and other business efforts: As the brand image will improve,
the customers expectations from a brand or the firm will increase. Thus, in this case, the
management of the firm will see through the effective handling of its business and
marketing efforts that will help the firm to enhance the quality of business operations to a
greater extent. This will also support the brand to meet their customers expectations
(Renton and et.al., 2017).
 Motivate Work force: The selected firm carrying out the proper branding process will
help the firm to improve the quality of business activities and operations. Besides this, it
will encourage the existing employees and work force of the selected organization to
perform well and give out their best output in order to maintain the brand image of the
firm. This will catalyze the overall marketing and revenue generation.
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The branding process evolved as the marketing tools with the expansion of businesses on
the global level. As the customer base of an organization has improved on the international level,
branding and brand management has become a major marketing tool for a business entity.
P2 Description on key components of successful brand strategy for building and managing brand
equity.
The firm as Virgin mobile group of UK is taking various initiatives in terms to develop
and manage the brand successfully in the market. In this, it can be said that the power of the
brand lies on the factor as that what people hear, felt and seen of the brand over the period of
time. Furthermore, this model can be termed out as the customer based brand equity mode. Thus,
it is given in the shape of the pyramid and that has categorised into the four level as are-
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Illustration 1: Brand equity model
(Source: Keller’s Brand Equity Model. 2018)

Identity- In this stage, it is essential to identify the basis of brand and communicate to the public
that what firm is about. This factor is not only about the recognize the brand in the market but it
also work as to create the brand image in the market (Nasab and Abikari, 2018). The virgin
group is taking various initiatives in terms to develop the image of the brand in the market so that
they are able to gain the competitive advantage.
Brand meaning- In terms to make the brand meaningful it is very crucial to create the effective
brand image and characteristics. It can be arisen out of the brand association and it is as imagery
related and function related.
Under this, it can be said that the imagery related associations put their major focus over terms as
how brand work as to meet the social and psychological needs of the customers. The functional
related association can be termed out as product and service performance that means what the
customer looks firstly.
Brand response- The Virgin mobile group is taking various initiatives in terms to cater the
response of the customers in the market. It must be done in order to know the customer personal
opinion regarding the brand and the judgement will be passed on this factor as quality,
credibility, consideration and superiority. It must be taken in order to conduct the response and
popularity of the product in the market.
Brand relationships- This is the last stage, in this there is personal identification must be known
of the customer has with the brand. This step can be termed out as the brand resonance. In
addition to this, the Keller's categorized into the four ways as are-
 Behavioural loyalty- If product are available in the quality manner they they use to
purchase the commodities at the repeatedly or in the high volume.
 Attitudinal attachment- There are also the customers who work as to buy the product of
the same brand in terms to have their favourite possession or out of the some pleasure.
 Sense of community- The effective brand community helps to develop the kinship in the
consumers mind towards the employees, representative and other people who are
associated with the brand.
 Active engagement- If the brand is popular in the market then consumer works as to
invest the time, money, energy and other resources in order to strengthen the image of the
brand in the eyes of the customers.
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P3 Description on the differ strategies of portfolio management, brand equity management and
brand hierarchy.
Managing the brand in the coordinated manner will assist the firm in terms to avoid the
confusion between the customers. The Virgin mobile group is taking various initiatives in order
to perform the business activities in the appropriate manner. In order to manage the things
effectively the various strategies of portfolio management, brand equity and brand hierarchy has
to be defined in the below presented manner as are-
Source:Portfolio management, 2018
Brand portfolio strategies- This term refer as to the approach that work as to prepare efficient
portfolio management in order to generate high possible returns at the lowest price (Lasne,
2017). Thus, in this the Virgin mobile group is using the two basic approach as are-
1. Active portfolio management strategy- This is the term that involves the higher than the
average cost and t also define to taking the market inefficiency. Thus, it involves tow kind of
selection as are-
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Illustration 2: Portfolio management

 Top down approach- In this approach whole market will be analysed in the better manner
than the decision has to be taken of the product and services.
 Bottom up- under this approach, the market condition, popularity and other things will be
ignore and product will be selected on the basis of the strength of the product, financial
statement etc.
2. Passive portfolio management strategy- This term is based on the fact that activities of
the markets are efficient and it is not possible to beat the market returns over the time.
Brand equity management- The virgin mobile is adopting the Aaker model of the brand equity
in terms to enhance the image of the product and service in the market. Thus, there are following
categories as per the Aaker model has been presented in following manner as are-
 Brand loyalty- in this term, it can be said that the higher amount of the loyalty aid to
enterprise in order to have the reduction in marketing cost. The customer must provide
quality services so that the brand image of the entity can be enhanced. It is helpful term in
order to leverage brand as it is effective way to manage the equity.
 Brand awareness- This is one of the key and it is essential element in order to recognize
and recall the brand in the market (Romaniuk, Wight and Faulkner, 2017). Thus, it is
very assistive in order to generated the high level of the purchase because customer
prefers the product of brand that are highly familiar in the market. This kind of the factors
are helpful in enhancing the image or the brand in the market.
 Perceived quality- It is responsibility of the firm in terms to give the extra edge over the
features of actual commodities. The quality product will be helpful in order to enhance
the brand image in the market. The quality of the products are needed to be maintained so
that it is possible for the firm to grab the attention of the customers. Furthermore, it can
be said that quality provides the value in terms to providing the reason to purchase the
products , attracting the channel member and supporting the higher prices. This is the
terms that will be helpful in order to create the brand image in the market.
 Brand associations- The brand image is the kind of brand equity. This is inclusive of
things as are product attributes, customer benefits, uses and the life style. The virgin
mobile group is using this approach in order to build the strong brand identity in the
market. This kind of factors helps to create the positive feeling in the mind of the
customers.
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 Brand assets- This term can be defined as that brand assets refers to the patents,
trademarks and channel relationship that all will be helpful in order to provide the strong
competitive advantage of the product in the market. In addition to this, it can be said that
the name, symbol and package all are essential terms in order to influenced the purchase
decision of the customers. This kind of the factors affects the working of the enterprise in
the huge context. Moreover, distribution channel can be indirectly controlled by the brand
as customers.
Brand hierarchy model- The brand hierarchy will be defined as the summarizing the branding
strategy with help of displaying the common and distinctive brand elements. This is also one of
the effective in order to define the popularity of the product in the market.
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P4. Evaluation of how brands are managed collaboratively and in partnership both at a domestic
and global level
Brand collaboration or co-branding is the marketing strategy which involves strategic
alliance of multiple brand names jointly used on single product and is the strategic association
between two companies to work together creating marketing synergy (Beverland, 2005).
Strategic brand partnerships helps in extending sales channels, speed time to market and offer
innovative product with successful corporate collaboration. For example: Virgin Mobile Canada
was collaborated with Banana republic on the mobile carrier’s member benefits program and as
part of the promotion customers will be receiving a discount of 20% on banana republic item
each visit (VIRGIN MOBILE CANADA PARTNERS WITH BANANA REPUBLIC, 2014). When
brands are collaborated or enters into partnership they offers various promotions to customers
which is the suite of benefits to maintain the lifestyle image associated with the overall Virgin
brand. The member benefits program conducts the collaboration by rendering promotional offers
on brands which will help the brand bring its image to life with additional deals and shopping
events in partnership with banana republic.
External collaboration of Virgin Mobile with international brands plays a major role in
innovation process as it helps in formation of partnerships with foreign firms, attain knowledge
from these associations and enables firm growth in global markets. Collaborative and
partnerships at global and international level conducted by Virgin Mobile after decision of
forming strategic alliances faces various challenges in turning their intentions into a viable
enterprise at all organizational levels. The implementation process of strategic policies and
activities need pool of human resources and material assets and the collaboration is managed by
developing practical governing structure with power and control by learning how to cooperate
for mutual benefits. The forming of new strategic alliances globally or domestically requires
Virgin Mobile to develop new management skills by employees to cope with complex
relationships and manage inevitable misunderstandings or conflicts arising in collaboration.
Clear authority lines regarding possession, ownership, governance etc., need to be supplanted
with disorderly parallel command and report mechanisms and the managers delegated by the
partners to implement the joint project might be uncertain about the control and possess final
decision making authority.
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Careful attention is rendered in selecting staff and leaders for lessoning management of
Virgin Mobile while in strategic alliances in foreign markets. A formal independent and separate
subsidiary having own board of directors and internal authority hierarchy with equity stakes
possessions legally dividing ownership and control among members and partners are
implemented as part of strategic brand management in collaborative partnership.
Different techniques used to leverage and extend brands
Virgin Mobile for building brand equity capitalizes on their strong brands by using them
to launch new and innovative products and services in other categories, serve customer segments
in the same category or serve clients in same segment in a better and improved manner (Gertner
and Kotler, 2007). Brand leveraging is the strategy used by virgin Mobile to use the power of
their existing brand name to support their entry into a new product category by communicating
valuable product information to the customers. Major purpose of using the same brand name is to
take advantage of the value and power that brand holds rather creating new brand that would
entail expenditure and time. The different techniques used by virgin mobile for leveraging and
extending their brands are:
Brand extension
It is the use of established brand name of Virgin Mobile in their new and innovative
product categories and the category to which the brand is being extended can be related or
unrelated to the existing product categories.
Line extension
Virgin mobile uses this technique to reach out to new customer segments who seeks new
benefits that are not being offered by the brand in category. Line extension leads to managerial
focus on minor modifications, packaging changes and advertising rather on real inventions.
Brand stretching or vertical extensions
Virgin Mobile identifies an opportunity in the premium value segments of the global
market besides its existing markets and enters into these segment which are called downscaling
and upscaling.
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P5 Evaluation on the types of techniques for measuring and managing brand value with the use
of organisational example.
The Virgin mobile is using various approach in term to measure and managing the brand
in the market. This is one of the effective term in order to create the long term sustainability in
the market. Thus, there are the following six way that helps to measure the brand values in the
market as are-
Brand awareness- The knowledge of the customer of the product and service plays the essential
role in order to define the value of the brand in market (Plumeyer and et.al., 2017). There are
some technologies that should be used at the time if measuring the brand and to aware the
customer about the brand as are-
 Web traffic
 Surveys and focus groups
 search volumes
 Social mentions and reviews
Preferences Metrics- The preferences of the customer plays the crucial role in terms to
take daily purchase decision. Thus, it can be undertaken with the help of following factors as are-
 Brand relevance- This means to identify that brand provides unique and specific values of
product or services.
 Accessibility- This means the ability to provide the target market with the help or product
and service in the market.
 Brand value- This term is helpful in order to define that hoe much customer are willing to
pay for the product and service in the market.
Financial metrics- This term is directly related with defining the performance of the sales in the
market. Thus, it can be measure with the help of following things as are-
 Price premium over competition
 Average transaction value
 Customer lifetime value
 Rate of sustained growth
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