BRAND MANAGEMENT 1 Essay Example

  • Category:
    Business
  • Document type:
    Assignment
  • Level:
    College
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    1
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Brand Management: Evergood Coffee

Brand Management: Evergood Coffee

Having been in operation for more than 36 years, there is a reason to believe that Evergood coffee’s brand management strategy has worked for it perfectly well. Seeking to gain loyal customers and maintain its spot at the top in the Norwegian coffee market, Evergood owners have focused on their product quality and taste, pricing, distribution and promotion. To ensure the success of the strategies, amongst the popular brand equity estimations engaged include the conversion model, the royalty method and the indirect value assessment method. However, to insure its future, Evergood needs to capitalize on brand equity.

Three Brand Equity Approaches

In the conversion model, the main concept revolves around replacement of brand equity and the acquisition of new customers (Abratt, 2003). In this instance, both customer and brand replacement have their costs, and it is the role of a brand manufacturer/ producer/ dealer to estimate the awareness of in either realizing new customers or going for new brand equity (Abratt, 2003). Additionally, users of the conversion model in estimating brand equity need to understand that the popularity of a brand amongst customers does not reflect their knowledge about it (Abratt, 2003). For this reason, using awareness as one of the constituents in building brand equity seems the way to go. Appropriating the royalty rate of a brand needs time and effort. In the Evergood coffee case study, the royalty method is one of the discussed methods of estimating brand equity and it engages the qualitative aspects of a brand (Christodoulides & De Chernatony, 2010). Some of the studied aspects include the strength of a brand and the management around it in addition to the values from the rules of thumb (Christodoulides & De Chernatony, 2010). The approach, however, carries weight more than the conversion model due to its industry specialization compared to the general approaches. The indirect value assessment method discussed in the case study provides a serene option in estimating brand equity. According to Abratt (2003), the excess earnings approach assesses the increase in profit of a brand, for instance, Evergood coffee, and determines if the projected cash flow contributes to a positive brand value.

How Evergood can capitalize on its Brand Equity to Plan its Future Brand Strategy

). Using its approach whereby it focuses on product, price, distribution and promotion, Evergood can achieve success and plan for its future brand equity by consistently promoting the product using a consistent message and customer feedback to improve delivery (Rice, 2010). Capitalizing on its brand equity, will however need the owners of Evergood to engage effort and creativity while shaping out the adored product image. Huang & Sarigöllü, 2014 Capitalizing on brand equity with the future in mind needs a business entity to focus on crucial aspects of the process. The success Evergood has enjoyed since its inception has seen it engage a consistent and unusual strategy focusing on product, price, distribution and promotion. However, to capitalize on a future brand strategy, Evergood needs to ensure that it instills the unique qualities of the product always remains for consumers to take note of them (Rice, 2010). Alongside the unique qualities of a brand, communicating with the consumers of a brand to create a positive regard in their mind improves the relationship between them and a brand (Rice, 2010). As a result, Evergood can capitalize on its brand equity if it practices the above-mentioned strategies. Additionally, to keep up with its brand equity approach, Evergood needs to monitor its competitors and the trends they have engaged to make sure that none gets above it. One of the ways to monitor competitors is through keeping up with industry trends and observing market conditions (

Conclusion

Capitalizing on brand equity to insure the future provides a viable option for all business entities. As a result, a business needs to use a strategy consistently, appropriately and effectively while holding abreast information about competitors like Evergood.

References

Abratt, R., & Bick, G. (2003). Valuing brands and brand equity: methods and

8(1), 21. Journal of applied management and entrepreneurship, processes.

Christodoulides, G., & De Chernatony, L. (2010). Consumer-based brand equity

52(1), 43-66. International journal of research in marketing, conceptualization and measurement: A literature review.

Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand

(pp. 113-132). Springer New York. Fashion Branding and Consumer Behaviors equity, and the marketing mix. In

Business2Community. Rice, B. (2010, July 8). 5 steps for building strong brand equity.

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