Have you seen brand management in action? Give an example.
Brand management is a function of marketing that uses techniques to increase the perceived value of a product line or brand over time. Effective brand management enables the price of products to go up and builds loyal customers through positive brand associations and images or a strong awareness of the brand. There are branding strategies that make brand management easier which include line extension, brand extension, new brand strategy, and flanker/fight brand strategy. Coca-Cola’s brand has been overtime well managed and the power of Brand Coca-Cola as well as the strategy of the brand in terms of the financial advantage that it bestows on its investors.
Coca-Cola's brand management consists of an extremely efficient marketing mix strategy combining product, price, promotion, and place. Coke has an enduring competitive advantage in local distribution, where it dominates few markets and the media spends drives the message of communication leading to a great consumer advantage. The critical thing to focus is on understanding the interactions between Local distribution, Media Spends, and Consumer understanding. Coke has been a phenomenal brand with great returns to its shareholders and with Berkshire owning 9.3% of Coke. Berkshire had invested $1,299 million and the value as per the latest annual letter is $22,140 million. Cash is all that counts in the long run, and the Coke Brand has been a phenomenal financial powerhouse enriching its shareholders, in fact, this stock doubles the money for Warren Buffett on his original investment of $1,299 million only through the way of dividends every 2 years which is stupendous.