Brand management is the art of creating and sustaining a brand. Branding is an effecting tool for marketing that helps in attracting customers and increasing the revenue of the business. Brand management is a growing segment that every company should consider for the business to keep up the market standards, improve services and make a profit for the company. The present report is based on different management systems in an organisation. The report will help in understanding brand equity and the stages involved in making successful brands. Further, the report will consider Cadbury to discuss the strategy for strengthen the brand equity, brand extension, reinforcement and overcoming brand crises. The report will also demonstrate the organisation's brand portfolio strategy with an example of the hierarchy management of brands. The report will then critically evaluate the brand look. Various techniques used for measuring and managing are discussed in the report.
P1 & P.2.
In today's marketplace, where thousands of products and services are available and which are rapidly customising with the changes in market trends and customer demands a brand is a name of products or services that attracts customer attention. A brand is a name that can be separated from a thousand similar products because of its loyalty, faith, and its mass-market appeal. A brand differentiates a product from various similar products that enables it to higher premium because of its identity and faith in functions.
In marketing terms, a value of a brand is known as brand equity. That value of the brand is analysed by the perception and experience of a customer regarding that brand. If the customer has a favourable opinion, the brand has a positive. Where, if a brand are ignored and continuously disappoints the customers, it has negative brand equity. Brand equity developed and grows as result of a customer's experiences with the brand (Definition of 'Brands' , 2018). For example, Cad-bury ranked as the most popular chocolate brand in the world, it is a classic example of positive brand equity.
Successful brand building process reflects competition and plays an important role to create customer loyalty towards the company. Whether it is superior product quality, excellent customer service, or an effective marketing campaign, it is important for a company to generate recognition and respect from customers so that customers will spend more for their brand. . The following are the stages of building a successful brand name:
- Step 1: Determining a correct target audience and communicating with them about a product is very important to build a brand. Analysing the requirement of audience and integrate it with the mission of the product will help in growing the brand image (Keller, Parameswaran and Jacob, 2011). The target audience should be filtered according to their, age, gender, location etc.
- Step 2: defining and communicating the value of your product to the target audience and creating a base is very important. Communicating the vision and mission of the company and the brand will help in guide the building process of brand. From the tag line of your product to its logo it should reflect the mission of the company.
- Step 3: For building a successful brand, it is foremost important to know the competitor and about the product they are offering. It is important to differentiate the company from its competitors. The process of branding your product will define how the product is different from the rest of the products in the market. To build a successful brand building, it is crucial to know about the strategies of competitors, analyse their USP, communicate the customer about the best thing of the brand.
- Step 4: for building a successful brand image, it is important that the company should always focus on the thing that makes them unique and valuable. Finding the value proposition and enhance it to set apart from the competition. As there are many brands available to customers, a company needs to communicate effectively what makes them different from other brand (Ertimur and Coskuner-Balli, 2015). Diving the value preposition is important step in building successful brand name. So effective communication about the brand value to customers is very important.
- Step 5- determining brand guidelines and specific rules on what criteria the business will interact to its customer is the next step in building a brand. It helps the business to more recognisable and maintain consistency across the communication channels.
- Step 6: preparing a definite marketing strategy based on the information gathered through the stages are the most important stage (Nam, Ekinci and Whyatt, 2011). Applying effective branding strategies thorough every communication channels from packaging to distribution. Promoting the brand on the different available platforms is important.
The role of the marketing department is very important in building a brand, different strategies and plans are made by the marketing department. Marketing programmes plays an important role in building up for brand equity. It involves product, pricing and distribution channels. These programs are necessary to create a brand image and to build brand awareness that leads to making a successful brand for the company.
2. Main body
The concept of brand equity is important for business owners to consider carefully. Brand equity is the valuation of the brand in the customer's mind. Brand equity is made up of all the emptions and experiences that customer have regarding the company's product. The stronger a bind which consumer have with the brand , the higher equity a brand have. The ultimate intention of any brand is to survive in the competitive market. Taking a case of Cadbury Ltd. It is a inspirational confectionery brand from a long history. Brand equity is one of the most important assets for the Cad-bury as it also helps in improving the financial performance of the company. Aakar Brand equity Model can explains successful strategy for strengthen brand equity. Building a lasting brand equity gradually helps the company to demand premium and therefore higher profit in long run (Aaker Brand Equity Model , 2018). According to the Aaker's model, there are five components of brand equity.
- Brand loyalty: in Aaker's model, brand loyalty is defined as brand's currency. Higher loyalty of brand helps the Cadbury company to reduce marketing costs. Moreover, a loyalty is something that can not be easily copied by competitors and therefore gives time to the company to make news plan to any new plan of competitors. Cadbury keeps on introducing new products to maintain brand loyalty among customers.
- Brand awareness: according to Aaker's model of brand equity, brand awareness is the basic step for building brand equity. Brand awareness helps the Cadbury to get into the consideration set while the customer are planning to purchase their product (Valette-Florence, Guizani and Merunka, 2011). To maintain the brand awareness, Cadbury has used social media and marketing campaign for brand awareness to target audience, liking different packaging of chocolates during different festive time.
- Perceived Quality: perception with respect to the product five an extra life to the overall product features (Aaker, 2011). Cadbury has to introduced different varieties and tastes with the same quality to be competitive in the market.
- Brand association: it is the extent to which the a brand name is retrieve in the mind of the customer, it helps in differentiation of brand from other competitors. It plays a great role in buying process. Cadbury has used different promoting techniques from social media to advertising for brand association of its product.
- Other proprietary assets: it includes patent, trademark and channel relationships which Cadbury has used to protect its products from the competitors.
Brand reinforcement focuses in maintaining the brand equity by keeping the brand on the mind of existing and new customers,. It can be done by regular monetoring of the products al all level of its lifestyle, it also includes the changes in the preferences of the customer regarding tastes, varieties etc. Cadbury changes dairy milk packaging to give the brand a modern flavour. Brand extension is the strategy of marketing wherein a new product is launched under the existing brand name. The category may be different but the name of brand would be same. The existing brand than be called as âparent brandâ. Cadbury dairy milk marvellous Creation has started into two flavour, jelly popping candy shells and cookie net crunch. It is marketing strategy which Cadbury is going to adopt.
Brand revitalization is the marketing strategy which is adopted by company when the product are reaches to the maturity stage of product life cycle, and profits have started fallen. It is an attempt by the marketing department to bring back the product in the market (Washburn and Plank, 2012). Cadbury has launched new packages and different varieties of chocolates, from eclairs, Bonneville, Dairy milk Silk. It helps the Cadbury to regain the product back in the market.
Branding is an important marketing tool for the growth of the business. As a marketing tool, branding plays a vital role in making a business successful over its competition. Branding helps to create consumer preferences for the company's product. It helps the company to increased the revenue and market share for the business. Branding is an effective marketing tool which can help the company to survive any temporary crises. If the product of a company has good brand equity, no new product can affect its growth (Kapferer, 2012). With the increasing in branding, it increases the efficiency of Company's employees. Through brand equity, customer are willing to pay a premium for well established brands compare to similar items in the market.
P3. Different strategies of portfolio management, brand hierarchy and brand equity management
Cadbury is a leading company that is operating their business in the food and beverages industry. It was founded by John Cadbury in Birmingham in 1824. This company was first involved in the trading of tea and coffee only. Slowly they have manager to expand their business more by increasing their products. This has been achieved by producing a variety of new and innovative products in their range for their customers. Since then this organization has expanded their business worldwide in a very short time period (Heding, Knudtzen and Bjerre, 2015). To accomplish their aims and objectives, it is very important for them to have strong brand portfolio strategies and effective management of all their brands that is operating within the organization. All factors have a huge role in enhancing their performance in the industry. These are explained below:
- Cadbury's brand portfolio strategy
Brand portfolio strategy is a concept which includes all the brands that is present in the organization. It also includes their roles and their relationship with each other. This is very important to manage a good coordination between all the brands of the organization. Each brand in a company's portfolio has to have a clearly defined role in the organization (Jugenheimer and et.al, 2015). These strategies help the business or marketing strategies of an organization to enhance their performance. For Cadbury it is very important to have effective brand portfolio strategy which can help them in increasing their overall revenue. Cadbury worldwide has a very strong brand presence and an even stronger product range.
Cadbury has a strong brand image in the industry as it operates worldwide. It also delivers variety of products to their customers which makes them more popular in the industry. Their range of products include, chocolates, biscuits, energy drink like bournvita, etc. For the promotion of all these brands and products Cadbury implement various strategies which assist them in reaching to maximum number of customers in order to achieve their target effectively (Ertimur and Coskuner-Balli, 2015). Complementing these promotions, they are constantly initiating new campaigns in order to reach out to new customers and reward their existing ones. All these strategies are very helpful for Cadbury to stay in the top in their business and to compete with their competitors well.
- Hierarchy management of brands within organisations portfolio
Hierarchy is known as the structure of the management in the organization, such as, according to top management position, it has, chairman, vice-president, board of directors and the chief executive officer, managers, employees, etc. For any organization it is very important to have an effective hierarchical management of brands within Cadbury's portfolio in order to manage their work (Du Preez and Bendixen, 2015). Management hierarchy is very essential as with the help of a well drafted hierarchy of workforce, Cadbury can enhance their performance by encouraging their employees to perform well in the organization. This will help them in increasing their sales and productions as well.
The best way for Cadbury to enhance their brand and product offering is by conducting a brand audit in the organization. A brand audit is effectively a check of your brand to identify and address problems areas with a net result of helping you turn things around and grow your bottom line. There are various reasons why an organization should adopt an effective hierarchical management, such as, to effectively manage their customers and their needs (Du Preez and Bendixen, 2015). There should be a separate depart in the firm which can help them in focusing on their customers in order to fulfil their requirement, as if customers are confused and don't understand about their services than it can affect their brand image. This can produce a huge advantage to them.
- Analysing brand equity management
Brand equity management is a type system which helps in monitoring organizational processes designed to improve the understanding and use of brand equity concept with in the organization. It is very important for the organization to have a good and effective brand equity management which can asist them in enhancing their working capacities which will help them in increasing their business and sales. There are various sources or factors which can be used by Cadbury in order to achive brand equity effectively. For example, maitaining a good brand image is the market can be a very useful tool throeugh which they can enhance theie brand equity (Rauschnabel and et.al, 2016). Other option for Cadbury can include, brand awareness, with the help of which they can reach to their target customers easily which will ultimately increase their production that has a direct impact on their brand equity management.
For analysing the brand equity, Cadbury can also focus on their customer's taste and preferences which can help them in delivering the best services to them according to their demand. This will also assist in attracting more customers to buy their services (Buil, CatalÃ¡n and MartÃnez, 2016). Emotional content is also considered as an essential part in analysing the brand equity management for Cadbury. By working on all the three factors effectively ans accurately, ity will be very helpful for them in enhancing their presence in the industry.
P4 Evaluating how brands are managed collaboratively and in partnership both at a domestic and global level
For any brand, it is very important to increase their business worldwide. To achieve this it is essential for Cadbury to collaborate and do partnership business, both at a domestic and global level as this will help them in expanding their business. Cadbury has already expanded their business to various countries, such as, United States, India, etc. This has helped the organization to increase their customer rate as well (Rauschnabel and et.al, 2016). It becomes very essential for Cadbury to manage these collaborations and partnerships effectively to achieve their aims and targets on time.
- Strengths of the brand that can be leveraged
Brand leverage is a type of strategy which can be used by the organization in order to enhance their performance in the respective industry. Brand leveraging helps in communicating valuable product information of the company to their consumers about their new products. In this way it will be beneficiary for them in reaching to new customers by delivering some new and innovative services to them. This is the strategy which can be used by Cadbury in an existing brand name to support a company's entry into a new but related product category by interacting with their customers (Brand Leveraging, 2018). Cadbury has a good brand leveraging strategy which helps them to strengthening up their brand in the industry.
The main factor which helps Cadbury in maintaining a good brand leveraging strategy is that they focus on their customers needs and requirements and deliver their service accordingly. This assists in gaining popularity among them. The main target customer of Cadbury is usually children youngster. With the help of such strategies, the instant recognition of the brand can be established successfully and customers with a favourable brand opinion will be encouraged to try a new product of their favourite brand, respectively. So by focusing more on them can be a useful option which they can implement in their system in order to increase their sales and production and which will help in delivering a positive impact on their brand image and can boost up their brand leveraging strategy as well (Brand Leveraging, 2018). Additional advantages of brand leveraging can include factors, the greater number of products increase the efficiency of the organization's performance.
- Weaknesses that need attention
To become successful in the industry, it is very essential to work on all the weaknesses that is present in the organization. This will help Cadbury to work on their weaknesses in order to improve their quality of work. Cadbury has a good command over their business which has helped them in reducing their weaknesses (Elsharnouby et.al, 2016). They have highly skilled and knowledgeable employees who assist them in delivering the best service to their customers. Apart from this, they can also increase the marketing techniques in order to attract more customers in order to enhance the overall revenue that is generated from their business.
- Collaborative and partnership agreements
To expand the business further, it is essential to collaborate and do partnership business with other organizations as well. It becomes very evident to carefully do the agreement in order to reduce the chances of any issues in the future (Anselmsson and Bondesson, 2015). These types of agreements can have a huge impact on their business activity if not managed properly.
P5 Evaluating different types of techniques for measuring and managing brand value
There are various techniques that can be used by Cadbury in order to measure and manage brand value effectively in the industry. This will help them in increasing their presence in their customers so that they can give a tough competition to their competitors, respectively. Having a good over brand value is very helpful for Cadbury in delivering the best services to their customers as per their requirement (Huang and SarigÃ¶llÃ¼, 2014). These techniques are explained below:
- Brand value: Brand awareness is a concept that is used organization to make their presence in such a way that it is easily recognized by their customers. This is very essential for Cadbury in order to increase their business. Both brand equity and brand value are educated estimates of how much a brand is worth in its respective industry. Having a good brand value will help them in increasing their sales and production which eventually increase their overall revenue (Brand Value, 2014). These can be achieved through various measures, such as, by having effective marketing techniques, for example, through campaigning, through advertising, by conducting public gatherings, etc. All these methods are very useful for Cadbury in making a good relationship with their customers in order to increase their brand value (Brand Value, 2014).
- Brand awareness: This is a concept that is used by an organization in order to increase their popularity among their customers in order to make them aware of their brand. This will assist them in increasing their sales and production of their services and products as well (Rubio, OubiÃ±a and VillaseÃ±or, 2014). Brand awareness is best spread through both inbound and outbound marketing efforts. It is a key consideration in consumer behaviour, advertising management, brand management and strategy development. This is usually expressed as a percentage of the target market, brand awareness is the primary goal of advertising in the early months or years of a product's introduction (Brand Awareness Strategy, 2018). In this way, this will be very helpful for them in gaining good popularity among their customers and target market as well. Having a good brand awareness helps Cadbury to get all the latest updates that is being related to their business.
- Marketshare: This is basically that portion of the market which is controlled by a particular company or product. Cadbury has a huge brand value and brand equity as well makes helps them in getting a better share market for their business with the help of which they can expand their business more in the industry (Jugenheimer et.al, 2015). This can be calculated by picking the company's sales over the period and dividing it by the total sales of the industry over the same period. This will help Cadbury in evaluating or analyzing their market share, respectively. Having a good market can be very helpful for Cadbury in having a good over the market which will assist them in giving a tough competition to their competitors that are present in the same industry. For example, Nestle can be a tough competition for them as they also have good brand equity as well as brand value.
- Consumer attitudes: This process is basically used to understand their customers more precisely. This will help in delivering the best service to their customers in order to make them satisfied with their products. Consumer attitude is composed of three factors which has a huge impact on their business, such as their belief towards any product, their feelings and behavioural intentions towards some objects, respectively (Heding, Knudtzen and Bjerre, 2015). These factors plays a very important role for Cadbury in order to increase their customer loyalty. The state of mind also plays a major role, like sadness, happiness, anger, or stress, which also affects the attitude of a consumer. This can be achieved effectively by making a good communication relationship with them. This can be done in various ways, such as, through feedback, complaints, and interacting with them on phones or on internet.
- Purchasingintent: This is basically a concept in which it helps the organization to evaluate the purchasing pattern of their customers effectively. This helps Cadbury to help identify the possibility of future outcomes based on their historical data related to their sales and productions. There are various factors that can have a huge impact on the purchasing behaviour of their customers, for example, demographics, which can affect their sales to a large extent as this makes their products to become limited to certain places only (Purchase intent, 2015). This reduces the reach of their customers to buy their products and services. Other than this, understanding the past purchasing behaviour or pattern of their customers, interaction with marketing messages, etc. can be useful ideas that Cadbury can implement in their system in order to analyze the purchasing intent of the consumers effectively. Understanding the nature of their customer can provide a huge positive impact in enhancing the performance of their employees.
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From the above report, it can be summed up that having strong brand management plays an important for the organization. This also helps in increasing their brand equity and brand value from their business activity. The present assessment has focused on discussing the importance of branding as a marketing tool and how it can impact the business as well. Understanding the value of these factors can be very helpful for an organization to manage its business at a successful level. It has also analyzed key components of a successful brand strategy in order to build and manage brand equity effectively for the organization. The present study has talked about brand Cadbury and analyzed different strategies of portfolio management, brand hierarchy and brand equity management, which is very useful for them in managing their brand and business, respectively. Further, it also discussed brand leveraging strategies and how it helps the organization in managing the collaboration and partnerships both at a domestic and global level as well. Apart from this, evaluation of different types of techniques for measuring and managing brand value has been discussed, such as brand value, brand awareness, customer attitude, etc. To conclude the above report, it is very important for Cadbury to enhance their brand management more in order to increase its performance in the industry.
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