Unit 28 – Assignment 1
Chosen business: McDonald's
P1 – Explore the principles of branding for a selected large business.
Brand & Branding
A brand is usually a logo or name that people associate a company with. A
brand is mostly an emotional connection that the public develops with the
business. On the other hand, branding is a number of actions the business
takes in order to build emotional connection and positive, strong brand image.
Types of brands
Product brand: A product brand is a brand that focuses on the unique selling
point of a business product. This means that a product brand aims to find out
how the product differs from other products on the market. An example will
be a Coca-Cola can.
Service brand: A service brand is also a brand that focuses on how company’s
service is different from others in the market. It is similar to a product brand
but for a service. An example will be the UPS shipping service.
Umbrella ‘Family’ Brand: An umbrella brand is when a company sells different
products which are related, under the same brand. An example of an umbrella
brand would be P&G that owns multiple other brands.
Corporate and own label brands: A corporate brand is the way a corporation
operates and the way the express their exclusivity and values. A corporate
brand is not about a product, but it aims to describe a business as a whole. An
example will be Tesla which is a corporate brand, and they are perceived as an
exclusive luxury brand.
Global brands: A global brand is the management of company in the different
countries around the world. An example of a global brand will be Coca-Cola
which is in 200 different counties.
Use of a brand
, Creating a new brand: Creating a new brand is like creating a marketing
campaign from the beginning. It includes creating a business strategy, finding
the target audience, the needs of the customers, the competition that exists in
the market, and the marketing message that has to be communicate with the
audience.
Brand extension: Brand extension is when an established brand that has a
strong image uses the name of the brand to create a different product
category. A brand extension of McDonald’s would be their McCafe brand.
McDonald’s in that case utilised their brand name in order to extend their
company, create a new brand and increase brand awareness and build brand
loyalty with their current repeat customers and potentially new ones.
Sub brands: Sub brands are created from a main brand. They are subsidiaries
that are aiming to target a new audience.
Product extension: A product extension is when an established brand creates
new products in the same category. McDonald's has actioned on product
extension. The company had achieved that by adding new products under the
category of food. For example, they did that by adding a new type of burger on
their menu which is a new product but under the same category which will be
burgers.
Brand portfolio
A brand portfolio is a number of companies under the same brand. A brand
portfolio example would be McDonald’s which owns other brands like McCafe.
An advantage from having a brand portfolio is that you can get one company
into multiple different markets.
A disadvantage of having a brand portfolio is that time spend on the main
brand can be diverted to the new brand and that might have a negative
impact.
Target audience
Target audience is a specific group of people that a company targets in order
to advertise to them. A target audience is a particular group of people that is
likely to buy a company’s product.
McDonald's target audience is people young in age, mostly teenagers and
parents with young children. They are segmenting the market according to
Chosen business: McDonald's
P1 – Explore the principles of branding for a selected large business.
Brand & Branding
A brand is usually a logo or name that people associate a company with. A
brand is mostly an emotional connection that the public develops with the
business. On the other hand, branding is a number of actions the business
takes in order to build emotional connection and positive, strong brand image.
Types of brands
Product brand: A product brand is a brand that focuses on the unique selling
point of a business product. This means that a product brand aims to find out
how the product differs from other products on the market. An example will
be a Coca-Cola can.
Service brand: A service brand is also a brand that focuses on how company’s
service is different from others in the market. It is similar to a product brand
but for a service. An example will be the UPS shipping service.
Umbrella ‘Family’ Brand: An umbrella brand is when a company sells different
products which are related, under the same brand. An example of an umbrella
brand would be P&G that owns multiple other brands.
Corporate and own label brands: A corporate brand is the way a corporation
operates and the way the express their exclusivity and values. A corporate
brand is not about a product, but it aims to describe a business as a whole. An
example will be Tesla which is a corporate brand, and they are perceived as an
exclusive luxury brand.
Global brands: A global brand is the management of company in the different
countries around the world. An example of a global brand will be Coca-Cola
which is in 200 different counties.
Use of a brand
, Creating a new brand: Creating a new brand is like creating a marketing
campaign from the beginning. It includes creating a business strategy, finding
the target audience, the needs of the customers, the competition that exists in
the market, and the marketing message that has to be communicate with the
audience.
Brand extension: Brand extension is when an established brand that has a
strong image uses the name of the brand to create a different product
category. A brand extension of McDonald’s would be their McCafe brand.
McDonald’s in that case utilised their brand name in order to extend their
company, create a new brand and increase brand awareness and build brand
loyalty with their current repeat customers and potentially new ones.
Sub brands: Sub brands are created from a main brand. They are subsidiaries
that are aiming to target a new audience.
Product extension: A product extension is when an established brand creates
new products in the same category. McDonald's has actioned on product
extension. The company had achieved that by adding new products under the
category of food. For example, they did that by adding a new type of burger on
their menu which is a new product but under the same category which will be
burgers.
Brand portfolio
A brand portfolio is a number of companies under the same brand. A brand
portfolio example would be McDonald’s which owns other brands like McCafe.
An advantage from having a brand portfolio is that you can get one company
into multiple different markets.
A disadvantage of having a brand portfolio is that time spend on the main
brand can be diverted to the new brand and that might have a negative
impact.
Target audience
Target audience is a specific group of people that a company targets in order
to advertise to them. A target audience is a particular group of people that is
likely to buy a company’s product.
McDonald's target audience is people young in age, mostly teenagers and
parents with young children. They are segmenting the market according to
