Introduction
Brand management is that procedure where analysis and planning taken place regarding how specific brand can be apparent by potential buyers. With the assistance of brand administration, it helps in developing product image and picture in front of customers. This also assists in formulating strong relationship with their desired customers in the large market area. Along with this, brand management is important for any company as the brand develops product differentiated from another products in a market. Businesses use branding for increasing number of customers base and enhancing goodwill of their products. Besides this, branding provides unique identity to the commodities or goods so that buyers can easily recognise the specific product among various forms of accessible goods.
The report is based on Tesco which is an international retailing company and it is located in the England, UK. They are provides variety of products and services to their customers and attract new buyers towards different forms of buyers. The main motive of this assignment is to analyse the significance of branding as the marketing tool and how this has emerged in business practices. Also, it describes the major key components of making successful brand strategy for formulating and managing brand equity.
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P1 Significance of branding as marketing method and how it has emerged in company practices
For every organisation, branding is plays an essential role in increasing growth and development of their business operations in a large market area. Tesco also focus on maintaining and managing branding to reach with wide range of customers and satisfying their needs and demands in proper manner. There are different points which show the importance of branding in an organisation that are described as follows:
Motivate company for positive brand perception – The observation is formulated with analysing of every customer experience and viewpoints. To encourage positive brand insight, Tesco company need to follows promises which has been made to customers at the time of promotion of products. For creating awareness of brands, it is important for firm to post their products ads and description on social media where people can easily know the benefits of such brand in better way.
Understand the target audience – Tesco requires concentrating and evaluating their customers’ needs while conducting brand management. Besides this, brands have information and knowledge regarding the choices or preferences of their targeted audience and it analyse moods of potential customers as well. Along with this, Tesco should evaluate their customers’ needs and requirements as per this they require developing further goods or services.
Safeguard the brand – This is another essential point which helps in safeguarding the brands in better manner. For identifying the brand positioning, it is important for Tesco to understand the value and creation of brands. This is also requires for company to develop effective brand administration at the time of safeguarding brands.
Evaluate the brand perception – This is requires for the organisation to evaluate and determine the level of point of view of their brand in front of buyers. It can be measured by interacting with desired customers and also analyse whether they are aware of such brand or not. The company need to focus on increasing awareness of customers regarding the brands benefits and advantages which enhancing goodwill.
P2 Key elements of successful brand strategy for building and managing brand equity
It has been analysed that brand strategy is such procedure which help company in popularise and make famous their demanding products or facilities. When Tesco use and develop strategies to reach with target income and revenue then this will enhancing their reputation in market place.
Components of effective brand strategy:
Define brand: The main purpose of branding to create and generate an appearance in large market area for the competitors and clients. In current market place, brands helps in increasing goodwill of an organisation and assist in gaining required income and profitability.
Brand considered as business model: It is important for company to focus on business model as this helps in maximising the value of brand in the mind of customers.
Consistency: It is one of the most required elements which assist in labelling the goods of an organisation. This is such procedure that helps in managing image of product in market area.
Brand positioning: This is important component in which brand should be placed for attracting large number of customers towards Tesco goods and services. Strong brand position helps in achieving desired goals and targets of the company.
Brand behaviour and standards: It is require for the company to provide information about the product too their potential customers so they can easily understand their behaviour properly.
Brand promises: Every brand promise to fulfil customers’ needs and wants and also gain trust of their desired buyers.
Brand expression: In the company, logo and tagline is considered as brand expression. Such are the modes which help in giving expression of the product.
Emotional connections: It is analysed that customers not only use the company products but they are connected with brand image and its design which is important.
M1 How brands can maintain by using application of different models and theories
There are various theories which help Tesco in improving branding and make popularise their products or services effectively. Such are discussed as under:
Branding theories:
Brand faithfulness: When a company develops and manage relationship with potential customers so this is called brand loyalty. Customers feel different connection with such brand and they always buy to prefer only that product.
Brand awareness: The awareness of brands is mainly depends on the customers’ choices, demands, needs and brand strengths. Most of the customers are attracted towards desired goods or services.
Brand association: It is important for company is to develop relation with consumers for increasing recognition and awareness of brand in market area. The image of product in buyers’ perception is dependent factor in brand association.
Brand identity: When the customers are easily identify the brand name among large number of products and give positive response and feedback to the specific brand.
Brand relationship: This is important for customers to develop strong relationship with their customers and satisfying their needs and demands in better manner. Tesco also perform great work to reach with wide range of buyers and fulfil their demands properly.
M2 Appropriate and valid examples within organisational contexts
Tesco is an international retailing company which offers variety of goods and services in a large market area. They are provides different forms of products and also satisfying their buyers’ needs and wants in better way. Tesco’s brand management strategy’s examples:
• Tesco Company provides different range of commodities and goods under the organisation brand name.
• The logo of the Tesco helps in attracting large number of customers and identify brand image in the market place.
• Tesco attains and acquires various firms for identifying and expand brand name and develop goodwill in a large market area.
• Advertisement is the major key tactics and strategy which helps in promoting variety of goods and facilities of the company among customers.
D1 Justification of branding in business regards
Branding is not the development and preparation of logo, design, tagline and business cards but this helps in improving position, positioning, personality and brand recognition. Brand name selection, delivery, development, growth and positioning are come under the brand administration. Along with this, it is important for Tesco is to develop strong relation with their desired customers and motivate their employees which can increase through use of branding. The financial budget requires be planning and developing along with marketing and branding tactics. This is requires for company is to focus on adopting best strategy for branding which assist them in increasing profitability and income level. The staff members of the firm provide accurate feedback and response regarding the products or services which are offered to their desired buyers. It is analysed that influence of brand can be judged by analysing customers’ views and responses. It assists in promoting and advertising different types of goods and evaluates better impact on the products and other main items effectively.
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P3 Various strategies of portfolio management, brand equity and brand hierarchy
It is important for company is to focus on maintaining and managing brands. In the gathering of brand, all the variety of commodities of company is reached with targeted audience and satisfying their needs and wants.
There are 3Cs which can be used for brand portfolio:
• Quality perception of consumers – The customers are only buy such goods and services which they are willing to demand and want. If the company requires maintaining their position in the market place so they need to develop and produce such commodities that are demanding by targeted customers. This will enhance their income and goodwill as well.
• Market rivals – This is important for company is to analyse whole market area and focus on evaluating their rivals which create major impact on the company operations and its functions.
• Price perceptions of customers – Such theory and concepts helps in analysing the point of view of customers and buy these products or services.
Brand Hierarchy:
The managing and controlling of every individual brand that is required under the brand hierarchy. It is important for Tesco to concentrate on reaching with desired customers and satisfying their needs and wants. These brand hierarchy confirms the share of income, resources and assets for variety of goods or services of specific brand. There are certain brand hierarchy strategies that are described as follows:
• Individual branding hierarchy strategy: In such strategy, single commodities and goods promoted by unique brand name and portfolio in better manner. It helps in creating and developing unique type of products and its image in large market area.
• Commercial marketing hierarchy strategy: This is such method and approach in which commodity is not promoting but brand name is used for promoting variety of products or services. Along with this, it is essential for company to concentrate on promoting and advertising different forms of products and services. Tesco not only promote wide range of products but all the goods under one brand name.
Brand fairness management: In an organisation, brand valuation is essential for company to maintain and manage brand image in the market area. Tesco can demand the premiums by arranging the equity value and concentrate on fulfilling demands of customers.
• Awareness: It is important for company to create and build awareness regarding the products or facilities and this can assist in managing the brand equity properly. Customers can also remember brand image and name.
• Interaction: To acquire brand equity, effective communication with investors, matters and enhancing sales ratio of an organisation. This is the major key to gain brand equity for the company.
• Ethical and legal decision making: In this, legal and ethical decisions are required for maintaining and managing trust level in the consumer goods and amenities of corporation. It will helps in maintaining brand equity where ant condition arise for taking ethical decisions in better manner.
M3 Examine the portfolio administration, brand hierarchies and brand equity by using accurate models, theories and frameworks
An organisation uses such type of brand by using portfolio management. The company use single brand description and details which assist in promoting variety of products or services.
Advantages of portfolio management: It is an essential aspect of the brand administration. It consists of different form of goods which gain attention of large number of customers. Along with this, it helps in make right investment decisions to portfolio and improving financial performance of an organisation. It assists in enhancing trust, faith, worth, value of the company operations and functions.
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P4 Evaluate how brands are maintained collaboratively and partnership in both domestic and national level
The brand management on international levels and domestic levels can bring great opportunities for the Tesco organization as the globalization is hitting the various organizations on different levels. The brand management can be done in the domestic and global platforms with the maintenance of collaboration and partnership between these sections. The Tesco Company can enhance their brand image on the global range in which the wider popularity and larger audience can be targeted for the goods and services of the organization. The domestic brand image and global brand management are different in which the global platform requires a detailed analysis of the market place and consumer desires which can attack right on the bull’s-eye for the achievement of globalization of the organization. The production, analysis, management of the brand name on domestic and global levels will improve the chances of getting various opportunities in both sectors for the development and growth of the organization. The various challenges and potential issues in the running of the brand management need to be evaluated for effective collaboration and partnership of the domestic and global level brand management of the Tesco organization. The partnership and maintenance for both perspectives will help in the creation and effective actions for the enhancement in demand of the brand products and services on a larger scale in globalization. The globalization of organizations opens various opportunity chances for brand management on global platforms. The brand will grow on the wider range with the help of the brand management policies and procedures on collaborative purposes along with the domestic market place in which the brand management is comparatively easier for the organization rather than on the global platforms which resist the brand management processes of the organization via various difficulties based on cultural and nationality differences. The brand management requires collaboration on both levels of brand imaging for the Tesco organization for effective results.
M4 Usage of various methods and tools to leverage and extend brands
The brand extends and leverage has various tools and methods which are very effective for the growth and development of the brand name and its services.
Re-positioning: Re-positioning of the same product in a different form and various products in the same form are the methods for brand extending in the market place. This method increases the attraction of customers towards the wider range of products and services. The re-positioning of the brand name and the extension of the brand is very important in the way of growth and development of the brand of Tesco which can be enhanced from the re-positioning of the products in different forms and various products in same form.
Changing price: this is the method which attracts the customers for the brand towards the lowering prices of the goods and services of the Tesco Company. The price changing is very important methods for the brand extension on global platforms. The pricing system is the major factor which can help in brand leveraging and brand extension on the wider range as the lower prices can attract the customers of varied range towards the products and services of the Tesco brand. The Tesco organization can extend the brand and leverage it using the pricing strategy
Marketing plan effectiveness: the effectiveness of the marketing plans is the tool which can leverage and extend the brands name. The marketing plan for attracting customers towards the brand name and its popularity which will improve the market existence of the brand. The marketing planning is very effective for the brand leverage and brand extension which is the process for improving the enhancement in the brand imaging and management of the products and services for the Tesco organization for the improvement in the leverage of brands.
Customer interaction: the customer interaction can improve the brand extension and leverage which will improve the growth and development of the brand on the domestic levels and global levels of the organization. The brand extension on wider range can be done with the effective customer interaction with the brand organization for understanding the desires of the customers towards the brand name for the products and services in the Tesco organization. The customer interaction is very impactful for the brand extension and leverage processes.
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P5 Different techniques for evaluating and maintaining brand value
The brand value is required to be maintained with the use of various techniques which can improve the brand value of the organization in the eyes of customers and market place. The evaluation of the brand value for maintenance of the brand name in the domestic as well as global market areas is very important; this can be done using some techniques which are as follows:
Effective marketing strategies: effective marketing strategies can easily maintain brand value and even enhance the value of the brand in the market place. This will enhance the customer’s attraction towards the products and services of the Tesco brand goods which are more reliable from other market products.
Attractive packaging: the attractive packaging can increase the value of brand name as the outer appearance of the products largely attracts the consumers towards the goods and services of the brand. This can maintain the brand value of the Tesco products which makes the products to appear reliable and safe for usage.
Social media advertising: the brand value can be highly maintained using the social media and electronic media advertising in which the brand can be stated for the best products and services in front of the consumers on various platforms whether its global or domestic market place. Social media are very effective in brand imaging and attract a wider range of audience and customers for the products and services of the Tesco brand.
M5 Application of methods for measure brand value in regards to formulating a strong brand
Brand value is the worth of the brand in terms of money. Brand value can be measured in regards to the formulating of a strong brand in the market place on domestic and global platforms. The brand value can be measured by the various perspectives such as customers perspective, a market perspective which is evaluated based on various factors. The brand value for formulating a strong brand name in the domestic and global platforms are very important to understand the market and customers of the brand. The market place needs to get hold of the brand name which is very strategizing for the brand value to be enhanced and understand the side of the customers for representing the brand on very aspects for growth and development of the brand name and its value. The assets of the brand are also very important for measuring and evaluating the brand value for the strong brand name in the market place. this is very important for the brand value evaluation as the assets of the organization are the resources for the brand to be used in the brand value increment and other factors which are very important for the evaluation and measurement of the brand value of Tesco in the market place and also increase the strong brand name for the domestic and global market place.
Conclusion
The report concludes the various impacts and factors of the brand management of the Tesco organization. The brand management is the major factor which is very important for the companies to expand the business on the domestic as well as on the international market places. The various kinds of methods and tools are concluded in the report which is important for the brand calculation for the value of the brand in the marketing place. The Tesco organization has been leveraging the brand and business which is evaluated and maintained for the business chances for the increment in the business on the global and domestic business plan. The report also concludes the company’s measurement for the brand value and other factors which impact on the brand management and focus on the strategies for development and growth of the brand image on global terms. The report discuss about the possibilities for the enhancement in the business strategies which are helpful and effective for the brand management in the globalization era of technology and consumers can be attracted using the strategies and tools which are concluded in the report for the brand management and brand extension in the domestic and international levels.