brand management

Case study on ‘Nike’

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Contents
1- Introduction:.............................................................................................................................2
1.1- Development of a Brand..............................................................................................................2
2- Importance of Branding:..........................................................................................................3
2.1- Benefits of branding:........................................................................................................................3
2.2 Branding as a marketing strategy:.....................................................................................................4
3- Brand equity:............................................................................................................................5
3.1- importance of brand equity:.............................................................................................................5
3.2- Benefit of brand equity in terms of customer loyalty (Aaker’s brand equity model):......................5
4- Brand strategy for Case study (Nike).......................................................................................5
5- Portfolio management:.............................................................................................................6
5.1- Brand Hierarchy:...............................................................................................................................6
5.2- brand equity management:..............................................................................................................6
6- Conclusion:...............................................................................................................................6
7- Bibliography:............................................................................................................................7
 Brand management strategy (Nike)
1- Introduction:
A brand is a 'name, phrase, sign, symbol, or design, or a mix of these, that is used to identify and
differentiate the goods and services of one seller or group of sellers from those of rivals', as according to
the American Marketing Association (AMA). Thus, in a technical sense, each time a marketer creates a
new product name, logo, symbol, or other distinguishing qualities, he or she has created a brand.
Brands are created by a deliberate process that involves developing and differentiating your company's
image, goods, and services from those of your rivals. The process of developing a brand include aligning
it with your company goals, conveying it to your target market, and periodically upgrading or improving
your brand.
Following are some of the most popular brands and their origins:
 Nike (shoes and sports apparel brand) It was created in 1964 as Blue-Ribbon Sports by Bill
Bowerman, a track and field coach at the University of Oregon, and his former pupil Phil Knight.
Nike is the world's most well-known athletic footwear company. In 1966, they created its first
retail location, and in 1972, they introduced the Nike brand of shoes. It was in 1978 that the firm
was renamed Nike, Inc., and it went public two years later.
 Louis Vuitton (renowned luxury clothes brand): A suitcase manufacturer by trade, Louis Vuitton
Malletier launched his French luxury company in 1854, which became known as Louis Vuitton.
He concentrated his efforts on the high-end market and was well-known for his outstanding
creations. Finally, it wasn't until 1896 that Louis Vuitton debuted the iconic LV monogram to his
bags, a design that has been synonymous with the brand to this day.
 Apple (most famous smart phone brand + world’s largest company by market cap): it was
started in 1977 by Steve jobs and Steve Wozniak. Initially, they were producing computers but
came into smart phones in early 2000’s.
Brands are a direct result of market segmentation and product differentiation strategies. Branding is
more than just giving a product or service a name and indicating to the outside world that it bears an
organization's mark and impression. Branding is the process of altering a product category; it needs
sustained corporate participation, a high degree of resources, and expertise (Kapferer, 2004).

1.1- Development of a Brand

Brands unquestionably give significant value to customers — both people and businesses. As a result,
the obvious question is how brands are created. How does one go about creating a "brand" for a
product? A brand is something that exists in the minds of consumers, not something that firms
contribute to via their marketing campaigns and other activities.
While branding a product, it is critical to educate people not just about 'who' the product is — by giving
it a name and including other brand features in the product — but also about "what" the product
accomplishes and why buyers should care about it. As a result, branding a product or service requires
both providing consumers with a label for the product (for example, 'here is how you can identify the
product') and a meaning for the brand (for example, 'here is what this particular product can do for you
and why it is different from other brand-name products') to be successful. As part of branding,
companies must help their consumers organize and explain their knowledge about products and
services in a way that justifies their decision-making and provides value to the company.

2- Importance of Branding:
So, why is branding important? Branding is the delicate art of developing your brand actively. With
creativity, expertise, and strategy, a brand may develop an identity that distinguishes itself from the
competitors and establishes a bond with its audience. Individuals and corporations are confronted with
a rising number of options in a more complicated environment, yet seem to have a decreasing amount
of time to make those decisions. Thus, a powerful brand's capacity to ease customer decision-making,
mitigate risk, and establish expectations is valuable. As a result, an increasing number of businesses and
other organizations have recognized that one of their most significant assets is the brand names
connected with their goods or services. Simply said, BRAND is not defined by what you say it is; rather, it
is defined by what people say, feel, and think about your event, organization or products! The brand is
what the average person knows about your event. Brand is also what your most devoted fan says about
you over dinner with her closest friends.

2.1- Benefits of branding:

 Branding tells your story in an instant: Who precisely are you as a brand? If you are unaware,
your viewers will be as well. Develop your brand identity by identifying brand-defining keywords
and incorporating them into the company's voice, tone, and appearance.

Consider the logo for Fair Harvest Coffee. Even at a look, the brand communicates their identity
and their passions: coffee, social conscience, the planet, and the environment. Each outstanding
brand should be clearly defined by a few strong descriptions
 Branding builds an emotional connection: By building a brand, you may create a strong
connection with your customers, staff, and the broader public. This relationship develops
gradually over time, but it begins with developing a positive reputation, allowing your audience
to get to know you, and finally discovering unique methods to communicate.
 Branding builds confidence in consumers: Great branding requires courage, strategy, intellect,
and sometimes, risk. Confidence is critical when communicating to consumers about what
makes you "you." Consider this: some of the world's most successful businesses have risen to
prominence as a result of their confidence, not because they offered a particularly distinctive
product or service.
 branding provides results: At the end of the day, your brand is a company, and it deserves a
great future. Part of the significance of branding is that a strong brand is crucial to getting the
outcomes you require

2.2 Branding as a marketing strategy:

While branding is your identity, marketing encompasses all of the strategies and objectives used to
express that identity, foster client connections, and increase sales.

Marketing is a dynamic process that is always changing and expanding as new tools and channels
emerge, as well as changes in your customer offers, such as updated goods or extended services.
Marketing methods and campaigns may and should be tailored to various parts of your audience while
still adhering to your brand's basic values and identity.

Because brand marketing is concerned with selling a firm or product via its brand, it may be considered
a subset of the broader field of marketing, or a synthesis of branding and marketing. Brand marketing is
not the same as a pay-per-click campaign or a week-long promotion, which seeks a quick return on
investment. Because brand marketing is a long-term strategic activity founded on the company's own
identity and authenticity, it should be seen as such.

A brand does not emerge from thin air. Just as it takes time to get acquainted with a new person, it will
take time for people to become acquainted with a brand. Every campaign or chance for exposure must
serve to enhance the brand. After a few months or perhaps years of effort, the effects will begin to
accumulate and acquire pace.

Because brand marketing is a long-term strategy, it must be continuously executed and should include a
variety of strategies and tactics. There is no one method for increasing brand recognition – which is why
marketers often use a variety of diverse methods and channels that are appropriate for brand marketing
objectives, such as video advertising, native advertising, or community sponsorships.

While there are numerous approaches to brand marketing and numerous objectives that can be
accomplished (e.g., increase brand awareness, increase views of a branding video on social media), the
ultimate goal of brand marketing is to gain exposure, stand out in the marketplace, acquire customers,
and grow the business. While brand marketing may seem to be a wide and expansive activity, it serves a
very specific objective (and part of the overall marketing strategy). Because brand marketing is
inextricably linked to a business's identity and authenticity, it is critical for establishing customer trust
and loyalty. That is why brand marketing is a critical component of a business's entire marketing strategy
and attempts to gain and keep consumers, even if it takes time and does not provide immediate results.
The truth is that you cannot quantify positive customer emotion, which is what brand marketing is all
about.

A brand marketing strategy is a long-term plan with the objective of increasing a brand's market position
and favorable perception. The strategy may use a number of media channels, campaign styles, and
techniques to accomplish its objectives. These may include, but are not limited to, sponsored
advertisements, native advertisements, social media marketing, video marketing, SEO, and search
marketing. A strong brand marketing plan will gain momentum over time, building on previous
successes to grow its strength and influence among target consumers.

Without a doubt, social media has had a significant influence on brand marketing. Consumers spend a
significant amount of time on social networks interacting with friends and family, receiving product and
service recommendations, and engaging with companies. Thus, brands are involved heavily in social
media marketing to make use of this opportunity.

3- Brand equity:
In marketing terms, brand equity refers to the degree of influence a brand name has on the ideas of
consumers, as well as the value of having a brand that is widely recognized and highly thought of.
Businesses establish brand equity by offering positive customer experiences that inspire consumers to
pick them over competitors that provide the same products or services. To achieve this, advertisements
that appeal to the values of the target consumer are created, promises and qualifications are met when
people use the product, and efforts are made to improve customer loyalty and retention are made
3.1- importance of brand equity:
A significant advantage of building favorable brand equity is the impact it may have on return on
investment. Businesses that use the power of branding often generate more money than rivals while
spending less on manufacturing, advertising, and other expenses. Positive brand equity, for example,
helps companies to demand premium prices. When customers trust in a brand's values and the quality
of its goods, they are willing to pay a premium for those things. Additionally, if a firm wishes to expand
its product offerings, selling them under the same umbrella brand will aid in the new product's success
by establishing trust.
3.2- Benefit of brand equity in terms of customer loyalty (Aaker’s brand equity model):
If the products have a good reputation, people will seek the brand out as their preferred brand.
As a result of the established degree of trust in the brand, less money is spent on advertising and sales
increase when a new product is presented.
 Customer Loyalty: Loyal customers are seven times more likely to forgive a business if the firm
makes a mistake. Additionally, clients who are brand loyal are nine times more likely to try new
products from that brand (Forbes, 2020).
 The lifetime value of a client: this is the amount of money they spend with your business over
the course of their lives. Apple is frequently regarded as one of the firms with the greatest brand
equity in several studies. Apple customers are more inclined to own more Apple devices, but
Android users are less likely to be loyal to a certain provider of PC technology (miller, 2018).
 Brand awareness: Brand awareness is a general term that describes how familiar (aware)
consumers are with a brand or its products. Put simply, brand awareness is the measure of how
memorable and recognizable a brand is to its target audience.
 Perceived quality: the extent to which a brand is consider to deliver the best possible quality.
Talking about apple, one of the main reasons for the brand loyalty it gets is the great quality its
products.

4- Brand strategy for Case study (Nike)

Nike's brand strategy was crystal obvious from the start: to provide the world's greatest sports apparel.
How did Nike gain popularity? Apart from developing their goods, they work diligently and spend much
in marketing. "No other corporation in the world invests as much in sports sponsorship as Nike."
(Financial Year 2018). Nike invests more than $3 billion in advertising and sponsorships (ProfitWorks,
2020), significantly more than any competitor.
Nike Sells the Product's "Emotional Benefits": Nike promotes a way of life; it appeals to an emotional
component of the customer who wants to live a healthy lifestyle and discover their own "greatness." Bill
Bowerman's marketing technique did not promote shoes, but rather the emotional advantages of
running and healthy living. Nike makes just a passing reference to their goods in their advertising.
but focuses on the benefits of exercise which makes the user feel more confident and comfortable in
making a purchase as compared to buying just a product.
Besides all the emotional selling, Nike not at all lags at its technology. Nike is always at par with the best
product in its hand equipped with latest styles and gadgets which also helps in attracting the customers
who admire newer and modern products. As according to the market reputation, Nike’s products are
considered to be the best of their category which proves the “perceived quality” of the brand.
Another marketing strategy used by Nike is the variety of the products it provides the market which
makes Nike cover all possible domains of sprots and casual wear. By doing this, Nike captures a very
large amount of market share and is able to increase is revenue greatly.
Concluding the analysis, Nike uses a variety of brand strategies rather than a single one which helps it
grow immensely.

5- Portfolio management:
Strategy portfolio management is the process by which an organization determines how to allocate its
available resources within a portfolio in order to accomplish its strategic goals. Strategic portfolio
management is all about making tough choices about which projects or initiatives to pursue, which to
quit, and where resources may be liberated or reallocated to spend on programs or investments that are
more aligned with a business's strategic objectives.
5.1- Brand Hierarchy:
A brand hierarchy is a structured organization of a brand's distinguishing attributes for its products.
When businesses vary their product lines via new items and diverse positioning strategies, they create a
brand hierarchy to aid in product and service identification.
A brand hierarchy aide in the incorporation of critical brand aspects and alterations into goods. Consider
Amazon. Amazon delivers e-book services, e-commerce services, and artificial intelligence products,
among other things. However, individuals do not resort to Amazon for all of this at once. They are
referring to Amazon Kindle, Amazon Prime, or other Amazon-developed hierarchies. These hierarchies
feature distinguishing factors such as a name, logo, and brand identity that aid in product differentiation
and decrease consumer misunderstanding.
5.2- brand equity management:
Brand equity refers to the value that a brand adds to a business after it is widely recognized by
consumers. If a customer chooses a generic product over a branded one, the brand's brand equity is
negative, and vice versa. Positive brand equity often leads in enhanced customer loyalty, defined as a
consumer's willingness to pay a premium for a preferred brand

6- Conclusion:
As we can analyze from the report, branding is a very long-term process and it takes a lot of time to
form a reputable brand. But branding is a very rewarding process and all companies today are shifting
towards branding whatever products they produce. This not only improves the revenues and profits of
the company, but also brings in customer loyalty, lower risks (in case of new product launches), and
long-life business.
Branding has also become a necessity for modern businesses as it brings trust and confidence inside the
customer which are very important for consistent sales. Modern day customers also have a mindset of
liking branded products and are ready to pay a premium price as its saves them time and hassle in the
longer run.

7- Bibliography:
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