UK College Brand Development and Sustainability Report Analysis

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This report provides a comprehensive analysis of brand development and sustainability, focusing on the crucial aspects of brand equity, brand management, and the role of marketing in building a successful brand. It begins with an overview of brand and brand equity, detailing the stages involved in building a strong brand and the responsibilities of the marketing department. The report then delves into the benefits of branding, exploring various brand equity models, with a specific focus on Aaker’s Model, and discusses strategies for brand reinforcement. The report further examines brand portfolio and hierarchy management, brand extension, and collaborative agreements. The case study of Vodafone is used to illustrate how these concepts are applied in practice. The report concludes with a discussion on measuring and managing brand value, providing a holistic view of brand development and its impact on business success.
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Running head: BRAND DEVELOPMENT AND SUSTAINABILITY
Brand Development and Sustainability
Name of the Student
Name of the University
Author notes:
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1BRAND DEVELOPMENT AND SUSTAINABILITY
Table of Contents
Building and managing brand over time.........................................................................................2
Introduction..................................................................................................................................2
Discussion....................................................................................................................................2
Brand and brand equity............................................................................................................2
Benefits of branding................................................................................................................3
Brand equity Model.....................................................................................................................4
Brand reinforcement................................................................................................................5
Role of Marketing....................................................................................................................5
Brand Portfolio and hierarchy management....................................................................................6
Introduction..................................................................................................................................6
Brand Portfolio............................................................................................................................6
Brand Extension and leverage.........................................................................................................9
Collaborative agreements..........................................................................................................12
Measuring and managing brand value...........................................................................................13
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2BRAND DEVELOPMENT AND SUSTAINABILITY
Building and managing brand over time
Introduction
A brand is the personification of a company, its line of products and services or the
company as a whole. A brand is the medium through which the consumers relate to a certain
company (Elliott, Percy and Pervan 2015). It is the basis on which a company gains productivity
in its regular nature of operations. The success of a company in developing a brand image
determines the efficacy of the brand and helps in the development of brand equity (Severi and
Ling 2013). The latter is the commercial value that a company is able to derive as a result of
successful implementation of the brand image. It is the goodwill that the company has been able
to develop as a result of successful communication of the brand. There are stages of development
of a brand. The stages are development of objectives of the brand, followed by conducting
research, segmentation, transforming the vision of the company into value for the customers. The
ultimate stage in the development of the brand is the development of the marketing strategies
that will be liable for communication of the objectives or motives of the brand to the customer
community. Development and management of a brand over time is purely the role of the
marketing departments of companies. The aim of the paper is to justify the importance of a brand
with the help of a brand equity model. Furthermore, the role of the marketing department of the
company will be evaluated which will be responsible for the development of a said brand.
Discussion
Brand and brand equity
A brand acts as a unique identity of a company as a result of which they are able to
establish a position in the industry that they operate in (Dolbec and Chebat 2013). The brand that
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3BRAND DEVELOPMENT AND SUSTAINABILITY
a company has been successfully been able to establish with the help of successful integrated
marketing communication is one of the most important grounds under which a brand is
recognised. A brand acts a medium through which a company establishes emotional connection
with the individuals in a market that a company operates. One of the main aims of a brand are to
establish themselves in order or deliver value to the consumers of the community. However, it
should be clarified that brands are not legal trademarks, but determines the way a company or
some of their product or services is related to by an individual. A particular brand can be
identified with the help of a unique name, symbol, logo, colour patter, a catchy tag line, musical
jingles and even the combination of all the mentioned factors (Brown 2016). Branding refers to
the development of a product with the help of the brand power that a company has (Brown
2016). Brand equity refers to the additional value endowment that the bran is able to gain as a
result of the values and impressions that are associated with the value and belief mechanism of
the consumer community (Brown 2016). It should be recognised by the companies that the
sustainability of a brand is in the hands of the customer community. The latter is highly
influenced by word of mouth and has high affiliation with the degree of difference that arise
between the perceptions of two or more consumers. It can be said that a company or a brand has
been successful in development of brand equity if they are able or successfully position
themselves in the minds of the customers which makes them relatable. Brand equity is a ground
which determines the effectiveness of a company in gaining high customer loyalty and help the
company survive in markets that are competitive.
Benefits of branding
Branding has been incorporated into the nature of operations of organisations in the modern
business environment (Chiambaretto, Gurău and Roy 2016). The aim of the companies is to
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4BRAND DEVELOPMENT AND SUSTAINABILITY
establish a successful brand image as it comes with certain advantages that helps the company in
order to stay competitive and derive success in the long run. Following are the advantages that
are associated with a successful brand.
Awareness: In the industry that is highly competitive, having a successful brand image
implies that a company will have the ability to generate high revenue as a result of the
brand value that they have been successful in establishing.
Loyalty: With development of a successful brand image, a brand is able to maintain a
loyal base of customers who return to the company.
Differentiation: In markets that are competitive, successful brand images helps a
company to differentiate their products or services even if they are homogeneous in
nature.
New product development: The introduction of newer products in the line of companies
with established brands help in easing the process of entry of the product or service.
Competitive advantage: A company that has a successful brand value is privileged with
the ability to attract increased acceptance from the consumers as a result of which they
have a competitive advantage in the industry.
Brand equity Model
The brand model of Vodafone will be evaluated in the following section. The model that has
been chosen for the following section is Aaker’s Model of brand equity which is an assimilation
of brand loyalty, awareness and associations (Çifci et al. 2016).
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5BRAND DEVELOPMENT AND SUSTAINABILITY
Figure: Aaker’s Model of brand equity
The application of operation according the model is evident in the operations of the
company. The company has carried out extensive promotional activities in order to engage the
customers to the company. The image of the brand, the unique red colour, the unique jingles and
the goodwill that the company has been able to develop over time is the reason behind the
company’s success in terms of spreading awareness, position themselves as a company who
provide quality services. Furthermore the company has gained favourable associations in the
market that they operate in which has resulted in increased amount of brand loyalty. Vodafone is
a company that has been able to derive success from the successful brand image that they have
been successful in developing. With the high frequency of promotional activities that has been
carried out by the company, the company has been subject to high levels of awareness in the
market that they are operating in, have been able to associate high quality with the services that
are offered, increased number of associations with the brand and have been recognised as the
major sponsors of events including the Olympic games on several occasions. As a result of the
successful brand development and glocalisation the company has been able to gain an
international stature which has resulted in the high brand loyalty.
Brand reinforcement
Vodafone has been subject to high degree of success as a result of the successful strategies
that they have been able to implement. However, the rising amount of competition has out the
sustainability of the company in jeopardy. Hence, the following should be strategy should be
taken to reinforce the position of the company;
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1. Carrying out market research helps in identification of market trends. The behaviour of
the consumer community can helps in identification of the behaviour of the customers.
This can help the company in carrying out strategies accordingly.
2. Incorporation of technological innovation can help in gaining an edge over the
competitors who make up the industry that the company operates in
3. Formulation strategic alliances can help in boosting the ability of a company in attracting
and satiating the needs of consumers.
4. Alteration of the image of the brand through effective positioning can help the company
in eliminating the negative perception of the consumers.
Role of Marketing
The role of the marketers of a company is to successfully establish a connection between
the consumer community and the company (Petek. and Ruzzier 2013). One of the major roles of
the marketing departments is to communicate the motives of an organisation to the consumers.
Hence, the latter should be educated about the prevalent marketing condition which would help
them in developing strategies through which they would be able to get hold of the pulse of the
market that they are operating in. The goal of the marketing division of the marketing department
of an organisation is to establish a position in the minds of the consumers. The indirect goal of
the marketing division is to generate revenue for the company that ultimately contributes to the
long term sustainability of the organisation.
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Brand Portfolio and hierarchy management
Introduction
Vodafone has been recognised as one of the most successful telecom companies in the
world (Singh 2014). The company has carried out intensive marketing activities as a result of
which they have been able to attain acceptance from the consumer community across various
countries in the world. The company was previously known as a Hutch and the change of name
of the company is evidence of the rapid adaptation that has been carried out by the company in
order to stay updated with the current and modern trends in the market. The company has been
able to gain acceptance as a result of the high levels of adaptation and effective marketing
communications that has been carried out by the company. It can be said that the nature of
operations of an organisation is highly influenced by the structure of the organisation. The
hierarchy that exists in the organisation is responsible for the nature of operations that are carried
out in the organisation. Furthermore, the company has been able to develop their portfolio that
helps the company in increasing the acceptance that the company is subject to.
Brand Portfolio
A brand portfolio refers to the array of products that are present within the main brand.
The aim behind creation of a brand portfolio is to develop strategies for the applicability of the
brand in catering to the different segments of customers that they offer their services to (Shah
2015). A company should have the proper ability to effectively manage its brand portfolio as that
is supposedly aligned to help the brand in achievement of sustainability in the long run.
Companies develop their branding strategies with the help of an array of strategies known as
brand portfolio strategy. Brand Portfolio strategy refers to the effective management of the
resources that help in the effectively using and developing the strategies associated with the
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development of a brand. The latter revolves around the actual value that the company delivers to
the consumers. The brand portfolio strategy depends on factors such as market access, efficiency
of investment, the customer relationships and the potential of the brand. While developing a
brand strategy companies should be careful as successful implementation of the same depends on
the effective management of the assets and the capital of the company. Depending on the nature
of operations of the company the portfolio of the brand should be developed. The resources that
are in possession of the company highly influences the development of the portfolio strategy.
Vodafone have been successful in development of a brand portfolio (Nargis and Khan
2013). This has helped the company in carrying out the strategies. The nature of portfolio
management of the brand is similar to a branded house approach. The company has included the
following into the portfolio in order to boost their effectiveness in the industry that they operate
in. Following are the constituents of the portfolio of the company;
Voice calling services
Messaging services
Broadband services
Provision of Wi-Fi Routers and other services
Advertising on digital and mobile platforms.
Data plans
Mobile phone broadband
Exclusive Smartphones under partnership.
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9BRAND DEVELOPMENT AND SUSTAINABILITY
The company also provides services such as providing solutions to organisation in terms
of customer service support and provision of corporate internet services. Hence, the healthy
brand portfolio has also contributed to the success of the organisation in gaining acceptance from
the consumer community. As mentioned before, the structure of an organisation determines the
nature of operations of an organisation. Following are the hierarchical structures of Vodafone
based on regional segmentation.
Figure: Geographical hierarchy of Vodafone
Functional segmentations are associated with each of the geographically segmented units
of the company. There are departments within each of the geographically segregated divisions
such as handsets, laptops or netbooks, desktops and fixed lines, mobile phone operators, broad
bands and corporate networks.
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With the segmentations that have been made in each branch that the company is
operating in, they have been successful in carrying out and implement strategies that has been
responsible for the equity that they have been subject to while operating in the industry that is
deemed to be dynamic in nature. The company has been successful in identifying the needs of
each of the possible segments that are presents in the consumer community. Hence, it is the aim
of the consumer community has been justified as a result of the high levels of differentiation that
the company has been able to carry out. High products and service diversity has been the main
motto of the company moving forward as a result of which the company has incorporated high
degrees innovation and have catered to the needs of the consumers. Furthermore, the company
has developed alternatives with which it targets all of the identified groups of consumers.
Flexible pricing and flexibility in service is one of the key aspects that the company has been
successful in contributing to as a result of which they have been successful in gaining
effectiveness.
Brand Extension and leverage
There are various products that fall under the portfolio of the company as a result of
which the company has been subject to a considerable amount of appreciation in the consumer
community. The brand that has been selected in the following section is Vodafone telecom as
result of the success that the brand has experienced throughout the different sect9rs that they
have operated in. The telecom services of Vodafone are the most popular and the main services
that are offered by the company and hence, the strengths and weaknesses of the said department
will be adjudged in order to gain understanding the effectiveness of the brand in satiating the
motives of the organisation in satisfying the needs of the consumer community (Adjei and
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11BRAND DEVELOPMENT AND SUSTAINABILITY
Denanyoh 2014). The technique that has been used by the company in terms of leveraging the
brand is brand extension.
Following are the strengths of Vodafone Telecom services;
High network coverage: The brand has been recognised for the effectiveness in the
operations that they have been able to attain while operating in the highly competitive
telecom industry. The company has made serious amends in order to cover the maximum
amount of area. This has been done to provide the customers flexibility to roam freely
without thinking of losing networks coverage. It is the aim of the company to maximise
their profitability and in the form of a CSR activity from the part of the company.
Speed: The Company has carried out innovation over time and have been able to adapt
over time. The industry that the company is operating in characterised by high degree of
innovation as a result of which the companies compete extensively against each other.
Vodafone has updated over time and has successfully launched 2G, 3G and 4G services.
The company is currently working on development of 5G capabilities.
Customer service: being recognised as one of the biggest and one of the most successful
telecom companies in the world comes with certain advantages. In order to sustain the
advantages that are sustained by the company, a company has to ensure that they
maximise the benefits that they provide the customers. Hence, the company has been able
to incorporate 24 hours customer services. The latter have been implemented into the
operations of the company as a result of the aim of the company to satiate the grievances
and complaints of the customer community.
Value for money: Unlike various telecom companies, Vodafone has been able to keep
the promises that they make. As a result of the same, the services offered by the company
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