The following report analyses the concept of brand management. Different programs are designed and executed which helps in successful development and management of the brand equity. Different models of the brand management helps in the process of development of the organization are also analyzed. A study is made on the different strengths and weaknesses of the brand. Further the tools and techniques that help in measuring the brand equity are also analyzed.
|Brand is Power
|13th February 2019
Branding is the process of generating and distributing the brand name. It is applied over the corporate to identify, individual product and the name of services. The brand name is the evaluating factor which evaluates the progress of company. This factor spread public awareness in the market. The brand is a creation, service or concept that make different from other product in the public. It is the method of easily communicate on a different product.
P1 Explain the importance of branding as a marketing tool and why and how it has emerged in business practice.
uct like their quality is good with the reasonable price. Brand Association: Brand has the ability to attract other organization to combine with them.” Optimum Impression “is an advertising company having the aim to combine different organization in the same brand. Another exclusive asset: These are the intellectual property of organization like patent, copyright. This is helpful to create trade partners.
Branding is a marketing tool which increases the demand for the product in the market. Customer perceived the quality and then gets addicted to their product. If a brand has a good name in the industry they do not need to promotion or advertisement.
P2 Analyze the key components of a successful brand strategy for building and managing brand equity.
Brand equity is marketing term which the value of the brand. The value assigned by the perception of consumer and their past experiences having with the brand. If people think well or highly about the brand that means positive brand equity. But if customer disappointed by the brand in terms of delivery of product, quality of the product or the price is accordingly high, then its equity goes in negative.
There is some reason which increases the sales if the brand equity is positive, the brand equity like organization can raise their price on those who’s having positive equity, it helps to increase in the stock price of the company, business creates more money or revenue etc.
Brand equity develops through the experience of the customer. The customer has awareness of the brand they aware of what are the strategies of the brand by noticing their promotion or advertising of brand. The organization should recognize the store and shops because customer recognized only that store which they are already familiar. They are ready to become a new customer but before that, they want to trial first to verify the product before that. When the customer has good experience with the brand they make their first preference to the respective brand only. After taking a lot of experience, customer recommends others also. This shows the loyalty of the brand which exists throughout the years.
Brand equity is playing a key role in brand management. There are three steps to building a strong identity of the brand. First, introduce an advanced and eminence product in the marketplace. Launch different product which enhances the brand name. The customer wants to change according to the time their needs are changed according to the latest scenario of the market. Second, elaborate with the customer. The product is different but the quality and loyalty should be the same as they represent from the initial step. Third, Support in terms of the relationship between the customer and the brand.
M1) Evaluate how brands are managed successfully over time using application of appropriate theories, models and concepts.
Keller’s Brand Equity Model is also called the customer based equity model. The concept behind this model is to build strong brand equity which can shape the thought of customer about the brand makes the perception, thoughts, and opinion toward the brand.
(Pearson Limited, 2013)
Brand Identity: First goal is to create the awareness that the specific brand stands out from the crowd. Awareness in terms of the organization should about their perception, like is people have the right perception about them. Application: research their brand according to people perception.
Brand Meaning: This defines the performance and imagery of the brand. Performance includes these features like the reliability of product, serviceability, durability, efficiency, price etc. Imagery refers to the social and psychological aspects. The application is to “create the personality of the brand”.
Brand Resonance: It consists of loyalty behavior of customer who purchases the product with the same brand, emotional attachment with the brand, engagement with the brand becomes regular. Application: Bring the best offer to their regular client.
M2) Apply appropriate and validated examples within an organizational context.
It can be measured that Optimum Impressions faced many challenges in these they are not capable to understand the client’s nature with their brand. It also includes that in the industry there is the number of competitors, the technology now becomes advanced so that client’s demands are more which is not sustainable for the organization. Optimum Impression creates there brand image by using all possible methods. According to the research that, making of brand image is the time-consuming activity for the company. Their positive feature is brand equity which settled down every negative or challenge factor. It leads the organization growth in development and success in the industry.
Brand name increases the sale of the product and it’s a helpful tool to increase the growth rate of the organization. Creating a good image in a market means to stand out from the crowd.
P3) Analyze different strategies of portfolio management, brand hierarchy and brand equity management.
There are different strategies of brand hierarchy which manages brand equity.
Product need: These demands arise from the customer due to the interval of time. Customer raises the demand of product according to the latest about fashion, technology. These variations are applied by the organization that provides their product to the customer. They always take care of the interest and need of the customer. In this situation, price does not determine in such need. If the demand increases the orientation of the product also expand in a very different way.
Product family: Optimum Impression satisfies the need of their customer. All the need regarding the product revolves around the satisfaction of the product. As an advertising company, they aware of the interest of people like what people want and what they expect from the brand. Advertising creation depends on the country, brand, fashion, technology etc. Hence, advertising is the concern towards their creativity and how they implement or present the product. The product family is to be considered all the options which make them different from others.
Product Class: It is part of the product family. Organization relates all the concepts according to the product. This organization takes care of the requirement of the respective brand that provide their concept to present in front of the people. People analyze the skills and make imagery of the product.
Product Line: The collection of products making by the brand within a certain class of products is represented as a product line. In this organization, the product line is created from the initial stage where thinking power is created to the last stage the presentation of the advertisement.
Product Type: This type is influenced by the product line. There are various methods of the advertising industry and they imply accordingly which fits on the product and their brand. The product type is separate out from the collection of product.
M3) Critically analyse portfolio management, brand hierarchies and brand equity using appropriate theories, models and frameworks.
As the Optimum Impression Ltd. has maintained a system of brand equity, management of brand equity is a challenging situation for Optimum Impression Ltd. Optimum Impression Ltd needs to evaluate and maintain the branding system that provides a good and better reputation of the brand.
Brand portfolio is one the most important part of an organisation. Brand portfolio strategy helps in proper maintenance of the brand in relation with various factors such as price and quality of products, customers choice etc. The quality of the brand should be unique and they should according to the needs of the customer. Portfolios help the organisation by providing a proper business structure and discipline which is needed for providing support and successful implementation of plans of the organisation. Brand portfolio is occurred when a single organisation is operating in the market with more than one brand (Robertson, 2018).
Brand equity helps in improving the quality leading to success of the organisation. The various strategies that can be used by Optimum Impression Ltd are as follows:
- Forecast of the demands should be made. This will help the brand to know about the trends. With forecasting the demand the brand can help the brand in noticing he trend and provide product and services according to that.
- Developing a perfect marketing strategy is also very helpful. It helps the organisation to know the needs of the customers, and their interest. A perfect marketing strategy can be developed only after the process of demand forecasting.
- A proper product management is necessary which helps in removing any kind of uncertain situations during the marketing. Every product should be recorded and traced. Predefined rules should be set to remove uncertainties. This includes every step from use of raw materials to marketing the product.
- The brand should focus on fulfilling the orders on time. This would build customer trust and brand image.
- A good quality of product and service should be provided to the customers for the price offered.
- The brand should avoid proper and latest technology for staying updated with the changing technology.
- For being innovative and providing verities to the customers, the brand should produce different products and services with different price ranges.
P4)Evaluate how brands are managed collaboratively and in partnership both at a domestic and global level.
Brand extension and leverage strategies of DIOR are studied and analyzed. Being surrounded by a large number of competitors, DIOR needs to build them and stay strong in the competitive market.
Strengths of the brand that can be leveraged
The strategy of brand expansion involves less risk and is much cheaper. Many of the brand strengths can be leveraged, which is necessary for the brand to maintain its presence.
Having taste knowledge of the taste and preference of the customer is one of the greatest strength of the brand. Customer acceptance of a new product is a positive sign for the brand extension (Lauren, 2018).
The strategies involving low costs are considered to be the best options. It can involve strategies like expansion of existing brand instead of launching a new brand. This would be cheaper and the success rate would be high due to already established business.
Enhancing brand visibility
Enhancing and improving brand visibility is one of the greatest strength of brand establishment. It boosts up the reach off the newly established brand to customers.
Providing customer the quality of product as promised builds their trust. Quality and usefulness of the product are greatest factor in building customer trust. Customer trust helps in establishment of new brands (Butt et. al., 2017).
Weaknesses that need attention
There are various weaknesses that needs Dior need needs to focus on. As per the analysation, the weaknesses of DIOR are as follows:
Decrease in productivity
The productivity of DIOR has been decreased from previous year due to no increase in the number of customers. For this the organization needs to increase the productivity of the products and should introduce new products as well.
One of the weaknesses of DIOR is its expensive products. For overcoming these issues, the management needs to focus on arranging the raw materials and better import export management. As per the analysis made, the production has decreased in previous few years as due to expensive products; people are not showing interest in purchasing the products anymore. The prices should be set according the buying capacity of the customers of all economy class (Heibutzki, 2017).
Costly raw materials
Some of the raw materials needed for manufacturing the products needs to be imported which increases their costs and hence makes the whole process costly. For reducing this weakness, the export of such products should be reduced and domestic raw materials should be used.
Building brand image in other country
For removing the weakness of building a good brand image in other countries the organization needs to provide quality products and after sales services in order to satisfy the customers.
Collaborative and partnership agreements
Collaboration is the process of two or more organizations working together over a single task to achieve a common goal. With collaboration with DIOR lady art, the brand builds excellent quality luxurious materials, providing new artist collaboration. DIOR has recently collaborated with 11 female for the 3rd edition of DIOR lady art. Further the brand has also come into partnership with Amore Pacific perfumes which allows DIOR to use the Amore Pacific’s cushion technology. Collaboration and partnership agreements with various international brands help in establishment and building the image of the brand in international market.
M4)Critically evaluates the use of different techniques used to leverage and extend brands.
After a proper evaluation it is found that there are various techniques that are used for brand leverage and expansion. With the help of brand leverage, the organization can expand their products and services. With proper brand leverage the brand can easily operate and establish in new market and expand in existing market. The brand value can also be increased with the use of various techniques (Santana and Tauber, 2011). The techniques that can be used to leverage and extend brands are as follows:
- The brand should focus on increasing brand awareness. The more customers are aware about the name and products of the band and its quality the more it will help in expansion of the business. For DIOR, fashion shows, social media are one of the most important platforms for creating brand awareness.
- The brand should focus on market share. It should focus on the area of top share of the market and at the same time should also focus on improvement in the area of less market shares.
- Effective management of products and services with affordable prices should be there to attract more customers and increase the sales.
- Good quality of after sales services should be provided.
- The prices of the products should be set accordingly to make its reach to each sector of the economy.
- Use of better technology and improving the quality of the products will help in gaining customer satisfaction and trust (Santana and Tauber, 2011).
P5) Evaluate the different type of techniques for measuring and managing brand value using specific organizational examples.
To explain the brand there are various types of factors, techniques, and methods are applied for evaluating the brands, it is important to every organization to build their value, reputation, awareness, customers behavior, and purchasing attitude towards the products.
Brand value: To analysis the business progress it is important to analyze how many brands built their standards in the business marketplace. The LVMH group brand DIOR brand values are increasing day-by-day, they provide best services and gain customer satisfaction. DIOR selling various products likes handbags, fashion luxury accessories, shoes, purse, perfumes, and many other products to their customers. Values of their products are increasing and cross 250 billion euros in last year and spread their business in all over the world, Brand GDP raise and falls so they also work for it.
Brand awareness: DIOR brand extends its business with the help of delivering the best services, creative in their products, team spirit and provides customers satisfaction. DIOR Brand has many competitors so in that case, they face difficulties to exist with their competitors, Peugeot is competing for brand and competition with the DIOR brand, brand expand their image and reputation by providing advertisement, articles, information towards their products and give samples to their customers, promote their ads by television, extend their clothes by fashion shows, and provide information, ideas to the public, potential customers. DIOR brand focuses on to increase their productivity and make strategies towards their products. Brand recall and brand recognition is a part of awareness, it affect the customers directly, it helps all those customers those who identify the products by the website. Peoples will attract by the extension of the brand, the public interest is built due to see, listen and popularity of the brand, and they attract with the other customer’s opinions (Ukaj, 2016).
Market share: DIOR brand market share is decrease it shows the previous results, in 2018 the brand market share is 7.29% is decreased as compared to the other brands like Gucci, channel, Jo Malone, Versace brands. Market share means what the total purchase by customers towards products; the percent goes directly to the organization. The brand consumer goods and services stand 253.42euro in the current time and increase the percentage of 6.88% is higher than the old ratio.
The LVMH prices of consumer goods on personal goods is 253.40euro at the present scenario today’s change is 6.85% which is higher than the 2.78%. The share traded at present time period is to 1.13m
Consumer attitude: brand analysis their previous reports of business selling they show in the last year customer purchase more products, their trust is an increase in the products. The brand delivers its products according to the customer’s needs and gains their satisfaction towards their products. Customer aware with their products, organization survey shows 97 million peoples attract their brands at the age of 20-28 in the European Union, this ratio is found the 25% of the overall population. Young generation purchase more products and the old generation peoples purchase selective products of the brand. The organization focuses on to fulfill the young generation people’s needs wants, and innovate their products to achieve customer retention.
Purchasing intent: Organization research shows that the structure of customer purchasing power towards brand luxury products. It shows the last years purchasing is increasing and increase productivity, the data results show customer behavior, their trust is increased day-to-day. DIOR brand decrease their reputation so in that case the customer purchasing ratio of Brand is 37%, so by the focus on this situations brand make their products with good quality and maintain their prices according to the middle-class persons, so it will help to increase their productivity as well as the purchasing intent.
When DIOR brand check their competitors marketing structure their competitors lead in the market survey says they bit the DIOR brand, however DIOR works and improve their financial conditions by focusing to retain their customers and provide their best services towards customers, maintain their prices, sales, net profit, and increase the growth of the brand.
M5)Critically evaluate the application of techniques for measuring and managing brand value in relation to developing a strong and enduring brand.
Being a manager of the DIOR brand carefully analysis the business structure and measure the various techniques to enhance the brand it shows various aspects towards the brand value. The business structure is improved and the current situations of business show average and improve their financial statements, purchasing intents are increased so the company growth is built day-by-day.
The current brand strategy is running towards their customers as well as the organization whole. DIOR brand extends its marketing strategy by the help of promoting their products by celebrities, and various fashion shows, the extension of products so it increases their productivity (Gaito, 2018).
The company resources strengths are their customers, they are superior so brand focus on to complete their customers wants, their needs and provide satisfaction towards their products. The brand delivers their luxury products, with the best quality it is the strengths’ of the brand but for future success, it enhances their services by the help of past records of customer purchasing, sales. The weakness is to retain their customers is critical and consumers will compare brand luxury products to local products it reduce the purchasing structure, brand faces foreign language bias, issues so it will create difficulty to run the business.
External opportunities of DIOR brand is changing their lifestyle, customer loyalty, middle-class customers, spread their business by developing a marketing strategy, and develop economics create opportunities to arise business. Threats are competition in the market, a short life cycle of products; local mediators emulate their products so it decreases the brand growth.
Brand prices and cost of their products are higher as compare to other brands the previous report shows that it decreases the productivity and purchasing structure of their customers. So, in that case, the brand improves its pricing structure and focuses on middle-class persons and creates plans strategies for pricing of their products.
D1)Provide a critical evaluation that is supported by justified evidence demonstrating a comprehensive understanding of branding within an organizational context.
Branding plays a vital role in the organization who leads to development. After, analyze all the aspect of brand management. It is an important concept for the organization having a loyal brand. In this people generates their own perception according to their last experience with the same brand. Example: Optimum Impression and LVMH Group. It improves their brand image by their positive brand equity. The LVMH Group is a multinational organization that manufacture fashion product. It determines the brand equity whose benefit is to increase the product sale. It is also a significant resource to the customer, it attracts them and other investors attracts by the same quality. It is the responsibility of the organization to maintain their brand equity.
The conclusion behind this research shows various factors it explained positive aspects as well as negative aspects between the customers and the brand. It is a mixture of realistic experience of marketing administers, trademark lawyers, agents, advertisement agencies, and other persons. In this report, it serves the scenario of brand structure, management, and their extension, explained various tools of measuring the brand value, and defines how brands control their business. Peoples have no time to choose a particular brand so they trust only those brands that is popular in nature. So, in that case, a brand helps to customers in many ways. This report helps to the learners will understand the brand extension, strategies, marketing plans of the brand, it also shows various data’s regarding the customer purchasing towards the brand products, SWOT analysis helps to the learners to understand the how the brand will analysis their business.
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