Brand Management Report: Analyzing Volkswagen and Hyundai's Strategies

This report provides a comprehensive analysis of brand management strategies, focusing on two leading automotive companies: Volkswagen and Hyundai. The introduction highlights the importance of branding in achieving business success and gaining a competitive edge, setting the stage for an in-depth examination of branding as a marketing tool. Task 1 delves into the significance of branding, its management in business practices, and the key components of a successful brand strategy, including target audiences, perception, brand promise, and value. The report differentiates between products and brands and explores the brand equity components such as brand awareness, experience, perceived quality, and loyalty. Task 2 further analyzes the strategies employed by Volkswagen and Hyundai, providing insights into their global expansion, product innovations, and marketing tactics. The report considers the companies' approach to brand building, their responses to market changes, and the factors contributing to their brand image and market share. The report underscores the importance of adapting to the external environment and developing innovative strategies to enhance brand value and customer loyalty.

Brand Management

INTRODUCTION
Brand management is vital part in the successful operations of business. It helps in creating a
strong brand image and goodwill of company in maintaining sustainability. It is considered as
one of the beneficial tools in order to gain competitive advantages over competitors. In this
assignment, two companies are preferred i.e. Volkswagen and Hyundai which are considered as
the top most brands of 2017. Both of these are famous auto-mobile sector having good market
position in external environment and building brand place in market for enhancing product
portfolio over competitors. This project discusses about the significance of branding, key
components in managing successful brand strategy and various techniques used in measuring
brand value by applying suitable tools. Therefore, because of changing technology in the
business environment, it is essential for strategic level to develop innovative and creative tactics
in their organisational structure. Although, management of brand portfolio is important and it
should be extended towards domestic and international market place over a specific period of
time(Ashworth and Kavaratzis , 2010).
TASK 1
P1. Significance of branding as a marketing tool and its management in business practices
Brand is described as a term in which type of product manufactured by firm under
particular brand name or in other words use of symbol, mark, colour and design which enable
company to distinguish their goods and services from their competitors. Therefore, it is essential
for company to manage appropriate brand management strategy which helps in providing a
competitive edge over others so that all working operations run in an effective manner.
Main objective of branding is to create distinct place in market that leads to establishment
of trust and loyalty among customers. Therefore, it helps in retaining and attracting a large
number of customers by offering high quality of goods and services in their vehicles designing at
the time of manufacturing of cars. In today’s scenario, Volkswagen comes in reputed position
having good brand value with providing luxury cars in their services. On the other hand,
Hyundai operates as the world’s largest company facilitate auto-mobile facility in car
manufacturing and employ around 75,000 employees.
Branding acts as a marketing tool in order to give knowledge to people about the luxury
features provided in cars which leads to enhance the sales and productivity of company.

Although for big company branding plays positive impact and consider as important marketing
tool which described below for Volkswagen and Hyundai:-
 Improve recognition: - Branding which have market value help in improving recognition
among customers. In order to enhance sales and profitability, management team needs to
concentrate on logo and symbol. Although Volkswagen has their own symbol in which V
placed over W and blue colour in logo shows reliability, class and excellence. Establish trust factor: - This is another important feature of brand which helps in creating
trust and reliability factor among target audience. Customers impressed by particular
company when it provide standard quality, comfort and attractive features in their
products and that enhance credibility among them. High class appearance of Volkswagen
assists in creating trust factors among users.
 Advertising tool: - Brand becomes popular only when it creates a particular image in the
minds of customers and it can be possible when organisation’s marketing team uses
promotional tool like advertising in managing brand value of company. Both Hyundai
and Volkswagen advertise their cars when they launch new model under it that
highlighted the effective features and techniques. Create financial values: - Company is able to earn profit when it creates a good financial
value in market and it can be possible only through manufacturing of cars in an effective
way which reduces the cost factor and utilises amount in development of innovative
techniques which increases their value in financial terms.
 Large customer base: - Major objective of every organisation is to establish a large
customer base which increases the market value and profit of organisation. If company is
having a strong brand value in market then it creates a long lasting impression among
customers so that better and effective gains can be promoted. According to market share
data, both Hyundai and Volkswagen having good brand image which enable them to
generate more customers.
Apart from this, it is important to differentiate in between brand and product in order to
understand the business practices in an effective manner which are stated as below:
Products Brands
Product is built and manufactured in factory of
organisation.
Brand is something which is created from trust
and long term relationship with target

audience.
Product is not special in nature and it can
easily be replaced and copied.
Brand can be defined from logo and symbol
which are unique and cannot be copied by any
other individuals.
Due to advanced technology, product can be
obsolescent within the changing time period.
Once brands are established then they can't be
obsolete with the changing time period.
Products are valuable when they are
continuously used by customers on daily basis.
Brand is always meaningful for external
market when it creates a good market place and
having high market share.
So, it is vital for all businesses to change their technology according to external
environment in order to maintain sustainability and productivity. Both; Volkswagen and Hyundai
are required to design such cars which are innovative and provide high satisfaction to consumers.
These are above suitable step for developing brand over period of time(Brodie and et. al., 2013).
P2. Key components for managing successful brand strategy for managing equity
In every organisation, suitable and strong strategy has been made in order to run the
operations in an effective manner. Management team has established their brand strategy for
long term purpose in order to develop the brand successfully so that goals and targets will get
accomplished in an appropriate manner. All the action plans are made by scanning external
environment in order to gain competitive advantage over competitors.
In order to gain customer’s trust and loyalty, organisation is required to manufacture high
quality of products that satisfy them fully in order to achieve long term objectives. Therefore, it
is essential to develop and manage brand strategy on the basis of 6 elements:-
Target audiences: - There are different types of people which the business has to target in order
to increase market share and run business operations in a proper manner. It is important for
marketing department to understand the customer taste, preferences and demand which provide
direction to manufacturing division to design such products and services which increase their
sales. Volkswagen start targeting mass market and their car like Volkswagen Phaeton is come in
niche market to target niche audience.

 Perception:- This term define as thinking and thought that particular individual has
towards particular organisation. It has been created from the brand, market value and
financial performance of association. Therefore manager need to put all his efforts on
creating good brand perception by accomplishing daily target within specified time
period. Hence suitable strategy help in converting negative into positive perception. Brand related promise:- It is consider as permanent promise which every product had
with their target customers. Therefore main vision of Hyundai is provide comfort and
safety in their product and services to different level of customers. Value associated with brand:- There are different values that associated with branded
product. Company employee never be resistant in adapting all the changes coming in
environment. For example when company like Audi come with luxury product then in
such market then in such scenario Volkswagen aim is to empower every-man to having
their own car and create their own value by becoming three of the top 10 best selling car.
 Brand positioning:- Under this point the term mean establishing such strategies which
strengthen the position of brand in market. Therefore management need to frame such
policies and procedures that enhance their market position and earn huge profits(Balmer ,
2011).
Therefore both Hyundai and Volkswagen has to prepare proper brand strategy which help in
expanding their business at very fast speed. Organisation require to create their strategy in
appropriate manner and focuses on main key strategies that enhance their brand equity by
considering following point:- Brand awareness:- The term may be described as process in which efforts are made to
create awareness among customer regarding the presence of brand in external market.
Marketing manger formulate such strategies and policies which allow them to interact
with large customer base. Sources like media advertising, exhibition and roadshows are
the better option in providing all the information regarding launching of new goods and
services. Volkswagen time to time use market tactics in creating brand awareness. Brand experience:- It is a way of experiencing the comfort and satisfaction of desire for
particular product. Company like Volkswagen and Hyundai cover the policy of test drive
in their marketing policy so customer experiences test drive in order to deciding whether
to buy it or not.

 Perceived quality:- It is associated with the quality of standard maintain in goods and
services of organisation. Therefore in order to maintain sustainability and efficiency of
business, product must be available at superior form, affordable price and lead to
increase in productivity and efficiency.
 Brand loyalty:- In order to establish good market place and reputation among customers
loyalty factor must be their so that goods and services are produced effectively. Another
advantages of brand loyalty is that it increase sales and market share.
All the above component of brand equity must be consider in carry out the business activities
properly so that better result and efficiency come in future(Buil , De Chernatony and Martínez ,
2013).
TASK2
This section is all about strategies that adopted by branded companies in their organisation
structure. Proper planning and action plans are needed in order to execute overall procedures and
at the time when company is launching new and innovative products and services. Further in
dynamic external environment changes are coming in the form of technology, digital gadgets
especially in the sector of auto-mobile where organisation after researching the tactics adopted
by rivalry can include different features in their car model with continuous improvements so that
audiences attracted towards that products and services which enhance their sales and
profitability.
Under this two international brands has been selected i.e. Volkswagen and Hyundai
which expand their business at global reach and the reason regarding the selection of these
brands only because Volkswagen is German based organisation that composed of luxury models
and company is launching different creative models like Volkswagen golfs and polo. Further,
company seeking a potential car market and some car maker began with independent people car
projects the Mercedes170H, Adler autobahn and Hanomag 1.3. and Hyundai is South Korea
based auto-mobile organisation that come up with various line up design and technologies,
sponsorship and the USP of this company is to provide high performance N line up car that give
amazing experience to target audiences. Because of high brand image and provide attractive
features in cars at affordable prices was the main reason of selecting these two companies.
Introduction of Volkswagen:-

Volkswagen is German based auto-mobile company that deals worldwide in car segment
and organisation is doing well in luxury sector as well as hatchback segment and its expand their
business related to manufacturing or assembling of vehicles.
This company expand their stores in Mexico, US, china, Russia, Malaysia and India. The
company named 25 largest auto-mobile industries in the world by Forbes and comprises of
626,715 employees.
Further they also focus on work life balance and changes made in working structure was the
response to employees work stress and all the expectation that workforce has to immediately
answer about in Email after work hours.
Apart from it, discuss about the relationship between Porsche and Volkswagen in which their
shareholding is about 30.9% and proof profitable for business.
Introduction to Hyundai:-
Hyundai motor company is south Korean based auto-mobile sector and this company
founded in 1967 that comprises of 75000 employees along with 32.8% owned subsidiary of Kia
motors and third largest vehicle manufacturer in world.
Apart from profit objective company also focused on CSR programmes which is popularly
known as Happy Move global Youth Volunteers programs which enhance their goodwill and
brand image.
They deals in both electric and hybrid vehicles and sold their vehicles in 193 countries through
5000 dealership and showrooms.
P3 Analysis of various strategies related with portfolio management, brand hierarchy and brand
equity management
Strategies are consider as important part of organisation which require to examine in
order to run the business in appropriate manner. In case of MNC company it is essential to
evaluate the action plan for increasing productivity and profitability. Portfolio management is a
designed framework in which all the relevant factor and policies are included in order to meet
objective of organisation.
There are two types of portfolio strategies which organisation has to included for appropriate
management are stated below:- Active portfolio management strategy:- This strategy is used by managers and
organisations in order to evaluate all the risk factor coming at market so that outstanding

performance can be achieved. According to market research it has been said that those
company who have potential to take market risk able to grab external market
opportunities. Therefore this strategy give the depth understanding about earning profit
and maximise return also.
 Passive portfolio management strategy:- This strategy is generally used by those
company which believe in taking less risk because of which low forecasting has been
done. It is significant for business to include relevant factor into their portfolio so better
return can be increase.
The above two schemes are helpful in order to manage the portfolio appropriately. These above
two techniques help Volkswagen to use their active portfolio strategy in their working because of
good market share as compare to Hyundai and second strategy used by Hyundai company in
order to grab market opportunity.
Different types of product and services manufacture by company in order to build brand
image. Management hierarchy of Volkswagen and Hyundai can be understood through
differentiation which stated below:-
Basis Umbrella brand Products
Volkswagen This described as process in
which product are sell under
one brand name. Like
Volkswagen is that brand
name and different car are
delivered by them through
umbrella.
Product are those goods which
help in satisfying the consumer
in proper way. Although brand
and product are different from
other like product like ameo
and polo.
Hyundai Umbrella brands are consider
those constitutes of company
having positive image in
market.
Their are different type of
products deliver by customer
which provide comfort and
satisfaction to them. Famous
product are Creta, i20.

In order to managing the brand reputation it is important to create equity for products. So in
order to maintain equity CBBE model has been applied which used in Volkswagen context are
described below:- Identification of brand:- CBBE model application are used in identification of brand so
it is well known by every organisation that equity cannot establish without the
determination of brand in market place. Thus it is essential to create permanent identity
for brands so customer approach it without any problem. Meaning associated with brand:- this can be related by the experience customer gain
from using of different types of goods and services. Therefore it is essential that product
meet the expectations of customer. Volkswagen require to present themselves in better
way in order to establish their good core values(Christiaans , 2012). Responses towards brand:- it is vital for company to know the opinion of customers
towards brand properly so they understand their feeling and emotion towards product.
Therefore company require to maintain good quality for the goods and services so better
outcome is possible(Balmer , 2012).
 Brand resonance:- It is most complex and difficult context for every brand which can be
get by manager of company. This is consider as final step of pyramid which require to
understand by managers and start when intimacy establish with brand by users.
All these are model that support Volkswagen to maintain brand equity in competitive market
place and CBBE model is very help to run business in long term basis.
Apart from it Volkswagen in order to enhance their brand equity focuses on diverse needs
of customers and used various mobile solutions. This will help in increasing customer
expectation which leads to generate maximum benefits for them. Further focuses on maintaining
standard or flawless quality for their products that create long relation with target audiences.
Company apart from premium cars also designed hatchback segment of cars by using
different tactics and strategies in which they provided cars at affordable prices which enhance
their brand value and market share also. The main objective behind it is to strengthen the product
portfolio of company.
In 2017, Volkswagen launched most successful campaign in whole company history with
the launching of new model like T-ROC SUV, the sixth generation of polo, Tiguan all space and

Atlas and Passat CC are those successful product that make this brand more popular and
innovative and liked by customers.
Brand portfolio:-
When a company dealing in different multiple brands, services and products then in such
circumstances they need to prepare brand portfolio in which company procure all these entities
products into one umbrella. The main objective behind it to decrease the consumer confusion in
respect to who owns particular brands.
Volkswagen brand portfolio:-
Company dealing in different brands that consist of different brand portfolio which stated
below:-
Volkswagen, Audi, Seat, Skoda, Bentley, Bugatti, Lamborghini, Dugatti, Porsche and
commercial vehicles. The main objective of company is to ensure profitable growth and creating
sustainable growth.
Hyundai brand portfolio:-
Hyundai brand portfolio divided into two company I.e. Kia motors and Genesis motors who
deals in different types of car products and services. Further main objective is to enhance sales
and market share in all over the world.
Brand Hierarchy
It means summarizing the whole brand strategy by showing the number and nature of
common and different distinctive brand elements across the association products that help in
revealing the express ordering of brand elements. Further brand hierarchy is subdivided into
following parts which stated below:-
 Brand loyalty:- Under this step company include such features in their products and
services that attracts large customers. The main objective behind it to satisfy customers
and establish long term relationship with their clients. For example both Hyundai and
Volkswagen create good brand image which allow them to establish brand loyalty with
target audiences.
 Brand purchase:- This term describe as process in which consumer of same brand
purchase one or multiple brand products that help in strengthen the product portfolio. For
example Hyundai and Volkswagen are the brand that create utmost trust to their
consumers.

 Brand preferences:- It means when particular individual choose specific organisation
products and services when that person have other equally priced options. For example
Volkswagen and Hyundai establish such brand image because of which consumer prefer
of purchase them in which company used various marketing strategies and tactics.
 Purchase consideration set:- Set or group of relevant brand that consumer are already
familiar and ready to purchase the products and services of that brand only.
Brand equity:-
It means business value that derived from costumer thinking and perceptions regarding
brand name related to products and services that company provided. Further it help in
establishing customer loyalty and trust which stop them to rethink of different products of
company. It is evaluated because of market share, goodwill and large recognition at global reach.
Sources of brand equity are:-
Brand associations:- It is something with the help of which costumers related their brand in the
form of language, voice and experiences.
Standard of quality:- If company provide better quality of goods and services then it help them to
maintain their brand image at global level. For example, Volkswagen largest auto-mobile
organisation that using different technologies and innovative tools that allow better improvement
in their products and services.
P4 Management of brand collaboratively and in partnership both at domestic and international
level
Extension of brand is essential which support organisation to grow and easily establish
user loyalty as well. Extension of brand is essential so that suitable and good outcome could be
gain. Approaches for extension used in brand management are described below:- Line extension:- Product line extension means use of accepted product brand name for
fresh item in that product category only or in other word line extension occur when
company wants to include additional items in that same particular category by using new
colour, flavour, design and different packaging items. Volkswagen used this technique in
order to reach on such places where they want to expand their market.
 Category extension:- this term related to extension of business categories connected with
their goods and services. Marketer can use their original brand in order to enter into