Unit 1.4 Strategic Brand Management UKCBC Level 3


Strategic brand management can be described as that process which aim to manage brand image by preparing innovative policies. Brand management is an essential criteria of each and every organisations to maintain image in market scenario. This procedure include several factors like planning, implementing and controlling marketing programmes to mange brand equity (Annie Jin, 2012). It s important follow essential steps like determining and establishing bran d position and then building appropriate policies and applying them in marketing activities. It is more mandatory to calculating present situation and performance so that accurate strategies can be made to attain better outcomes. This report is based on audit of UK brand as foreign direct investment destination along with several recommendations.

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Brand Audit: the tool identifies the brand strength and opportunities and also addresses the complete category of company and its offering, customers, rivals. It also includes:

Market insight: In order to meet out with customer need, UK brand as foreign direct investment have to provide better opportunities to them. Such that if the environment is better than it creates good impact.

Company insights: It has a brand image and has a top position which is considered as a strength of business.

Competitor insights: Other investment company are the key competitor of the brand.

Customer insights: The people whose age is above 25 are the key customers.

The brand audit can also be done by using SWOT analysis which is as mentioned below:



· Having the brand image in market is considered as a strength.

· It also faces tough competition from the rival firm.

· Provide the best financial services to their customers.

· Low quality of services are sometimes offered to the customers and it is consider as a weaknesses.



· As having a brand image will also creates many opportunities so that it could provide better opportunity.

· Faces high competition from the rivals.

· The potential and existing market should maintain or attain the high competitive advantages.

 Needed for brand audit:

  • FDI can be described as abbreviated form of foreign direct investment. It is basically refers to an economic term is own and investments build by foreign. Importance of FDI in United kingdom is that it facilitates fresh trends of technological procedures. Increase competitiveness of nations in domestic economy.
  • To determine the brand audit, it is beneficial for the firm to use CBBE model which help to build brand equity of a quoted firm, so that more and more investment could be availed.

Type of Brexit deal the UK will get particularly in relation to the EU Single Market

The Brexit can be defined to be withdrawal of UK from European Union. Basically it is considered as an combination of Britain exiting from the European Union. The Brexit or the relation with the European Union can be categorised on the basis of hard and soft. The Hard approach will be considered when Britain opts to end all ties with European relating to trade and movement of people. Whereas soft approach refers to remain associated with the EU as non-EU-member nation under world trade organisation norms having no obligation to adopt free moving of people then known as soft Brexit (Baumgarth, Merrilees and Urde, 2013). The EU single market refers to freedom of movement of good and people which is taking place within member nations.

The European market is considered to be a territory and does not carry an internal borders leading to create a positive impact on the level of competition and raise quality of products which is being offered to people. The Britain opting to exit from the EU and its code of conduct will definitely be carrying major implication on deal which will be received by the country. It was on 29th March 2017 when UK notified its intention of leaving European Union for self development. The negotiations taking place between two parties will make sure that matters relating to finance, operations, legal and strategic aspects are discussed and negotiated.

EU's lead negotiator has suggested Britain will be forced to settle for Canada-style trade deal after Brexit. They had signed an agreement which it is all about that criteria CETA will remove 99% of custom duties European exports to Canada and Canadian-exports to EU while after sometime all tariffs on industrial products will disappear. There are different terms and Conditions which EU want UK to respect like it mus respect the budgetary and financial commitments, consider judicial oversight, it will follow current as well as fresh laws of EU and many other connected legislations.

There have been a major impact of Brexit in consideration of the European Union as members nations have started to voice out their concerns relating to nation and are prioritising their own interest rather than keeping EU is a priority. The UK have carried a distinct approach since the decision and the nation is no more hidden under the shadow of EU. The UK can be considered as a top most choice of people when it comes to FDI due to availability of richer buyers and availability of educated workforce. There will be an impact on the FDI received by the country as there was an positive relation between EU and UK's FDI capabilities. The research have stated that there will be a decline in the FDI by 22% which arises needs to carry out promotional activities and loosen up the policies and tax barriers so that more and more people are encouraged to invest in the country.

Impact of Brexit negotiations and potential agreement on inward investments

 It has been mentioned earlier that UK opting out of membership with European Union will have a negative impact on FDI as well as per capital income in the country. The UK market was one of the paramount destination for people to spend and had been successful in garnering of 99% of the proposals which came to EU. The climate which was being offered to investor emerged to be most favourable. There will be a few changes in the political and economic

environment post Brexit and undergoing negotiations (Bruhn, Schoenmueller and Schäfer, 2012). It is very immediate and more challenging to reach agreement fulfilling economic relations with European Union. It is as kind of forcing factors of leaving EU for negotiation of trade agreements. These are time consuming to become true and to complete several essential criterion to shape United Kingdom's economic future. The consequences of such initiative by the government along with consent of people of United Kingdom will be crucial and may be influential in determining amount which has been received by the country post this decision. There is no denying in the fact that negotiations between EU and UK can go either way and Union in this context possess an upper hand. The efforts are directed into formatioan of 'no-deal ' scenario to avoid worst case scenario. The major implication of this undertaking can be ascertained through evaluation of different factor concerning Foreign direct investments. 

Taxes rates: Considering that there negotiation results in formation of no deal scenario between the EU and UK. Therefore, the government will be able to form their own rates and assure that a positive environment for investor can be formulated. The formation of trade connection with EU members as in present scenario and significantly change the norms all around. It is to facilitate conformable and free movement of people between EU and UK.

Immigration: the immigration generally concerns with mobility of people to another country in pursuit of better jobs and lifestyle (Helfat and Winter, 2011). It can be determined that over 23% of the workforce of the UK are immigrants therefore if negotiation results in free mobility of movement than this country will be able to retain their workforce. It is one of crucial feature which is helpful for investor in formulation of their decision relating to investment.

Trade Regulation: There are different types of rules and regulations imposed by EU consider situational standards, product security norms and minimum working conditions for staff members. In this context, it is observed that many of rules are continues to be followed by United Kingdom as they are quite similar to each other along with rendering benefits to them. Undertaking 'no-deal' scenario it can be said that regulation will be altered in such a manner that there is development of positive environment so that more and more inbound investments could be availed. Some of UK negotiators are avoiding such norms in terms to regulatory influence from European Union.

Potential for growth: There is no denying in the fact that UK has been a top priority for investment amongst all member of the European Union. For investor, potential for growth and size of the market are one of the crucial factor for investments (Qian, 2014). Irrespective of outcomes of negotiations, it can be said that size of the market and its potential will be able to attracts major investments. The UK is considered to be one of the most attractive destination for international expansion in the overcome.

Political stability: It is one of the crucial feature which determines in the inbound investments in the country. If the negotiation results in formulation of bilateral trade agreement with the EU than there will be an enhancement in the amount received. If the negotiation results in provision of political instability to the country than it may seen disincentive to investors. The European Union is a sign of political and economic stability therefore opting out of it will be a major sign of instability.

Exchange rates: the depreciating value of currency of a nation is a major invitation for investor to create inbound investments (Kapferer, 2017). The Britain ending their partnership with the EU will definitely decline the value of pound which will be helpful in availing increased financial investments in the form of FDI. However it has been seen that volatility in terms of exchange of currency may discourage investors from releasing their funds in economy of the United Kingdom.

  • The negotiators working on behalf of government have formulated some of principles which will be undertaken while negotiating with the European Union (Wiedmann And et. al., 2011).
  • The major cause behind formulation of the same is to make sure that a suitable economic and political environment is retained during the negotiation. The crucial area of concern for negotiation will be trade as it attempts to create a bilateral relations. It can be ascertained government have to let go of some feature in order to gain some of ground involving trade known as reciprocal concessions of equal value.
  • The UK government will be able to encourage more investment only if they loosen up trade policies and regulation so that more investments could be availed (Payne, 2012).
  • The Union possess a upper hand in this scenario therefore it is recommended to make full use of references such as WTO to ensure that they end up with minimal losses on economic grounds. It is essential to encourage participation of trade lawyers, diplomatic intelligence, business power and trade economists so that negotiation capacity of a business could be enhanced.

The above mentioned factors are really important to be considered for UK's Brexit trade negotiations having an mandatory aim of to prepare all nations better preventing adoption of legal or government norms or policies such as foreign direct investment subsidies etc.

Audit of the UK brand as FDI

FDI can be described as abbreviated form of foreign direct investment. It is basically refers to an economic term is own and investments build by foreign. Importance of FDI in United kingdom is that it facilitates fresh trends of technological procedures. Increase competitiveness of nations in domestic economy. It will renders support to boost up quality of goods and processes in specific sector, increased attempts to better human resource. It will results into enhanced number of job opportunities for citizens. It will improve productivity, skilled and semi-skilled employees requirements to gain better probability. The audit of UK as a brand is carried out through implementation of Customer brand based equity model which is abbreviated as CBBE. It is a model which is helpful in building brand equity of UK so that more and more investment could be availed. The model can be best explained through brief description of model which are mentioned below.

Level 1- Brand Identity

This level of CBBE model attempts to identify perception of people towards UK. The brand identity of a country takes place when they are unaware about that place as an destination for investment. It can be considered as foundation upon which brand could be built. It can be said that investor consider UK as one of best destination for investment or carrying out of expansion activities. There may have been some sort of reluctantly post opting out of their membership with EU. But still a large number of people are considering to invest their funds in the UK.

Level 2- Brand Meaning

This level focuses on the getting to know more about the brand so that a familiarity with brand. The factor of reliability is being established with the brand through collecting of additional information. The elements such as exchange rate, market size, market potential, regulation and subsidies which are to be provided to investors. The performance of market is being evaluated overtime so that features of trust and reliability could be established. The experiences of existing investors could be taken into account so that brand personality could be developed.

Level 3- Brand Response

The response of existing investors can be categorised on the basis of judgement and feelings. The positive response is being achieved through availing desired return for their investment. It has been achieved that higher number of feeling compared with judgement is helpful in formulation of positive outlook of the brand. In context of UK, there should be minimum number of judgements so that positive brand equity can be formed. The people who have invested in the market of UK have been satisfied with the amount of returns which is being availed by them.

Level 4- Brand Resonance

It is very crucial for brand UK to reach this level in terms of brand equity as very few are able to achieve this level in the pyramid. The investor who have been part of brand UK at this level will be able to connect on the social and psychological grounds. The resonance can be broken down on numerous segments the most crucial of them is loyalty in which a person will show repetition in behaviour and will invest in the country repeatedly. There is a sense of attachment and are not only investing themselves but are also encouraging people around to be a part of economy of United Kingdom.

Impacts of Brexit on foreign investment in the UK

  • It is beneficial to establish FDI in UK as it facilitate to increase national productivity and there outcomes or wages. Various kind of multinational companies can invest in UK to gain better results as benefits. They brings several innovative technologies and managerial methods raise output in their operations (Reijonen and et. al., 2012).
  • Brexit results into decreasing in number of investors in EU as UK has FDI stock of around £1 million which is considered as half of which from other members of European Union as was occur due to attractiveness of United Kingdom.
  • It is important for United Kingdom to earn better profits bin terms of welcoming other countries for investments of several multinational firms which improve annual income and make economically strong. UK's financial service industries is greatest recipient of FDI and restrictions on single passport privileges following Brexit and It would lead to large cuts in process.
  • Trade agreements are important because they are helpful to motivate nations for more Foreign direct investment. It is really profitable to facilitate FDI through which living standards and technological levels are also enhanced. It is beneficial for both the enterprise who is investing and that country where they putting capital. These companies can increase productivity and annual income of particular country (Tirunillai and Tellis, 2014).

The above mentioned factors are relevant to importance of FDI in United Kingdom as well as benefits for those multinational companies who are going to invest there. Foreign direct investment can be described as crucial for developing as well as emerging market nations. Firms are trying to invest in other countries for expanding these multinationals funding and expertise to improve productivity as well as profitability.


  • From the above report I have analysed that foreign direct investment is an important factor which can be implemented in any developing country to improve it's standards.
  • It will results into several benefits for that specific enterprise which is going to invest in other nation to improve productivity as well as profitability (Tsiotsou and Goldsmith, 2012).
  • Several new and creative opportunities may arise after establishing fresh venture of any organisation in specific country, various employment opportunities are achieved in respect of FDI.
  • I have observed that if rate of return is improved then it will be profitable for both company along with country.
  • Restrictions of FDI should be decreased so that it will become easy for different small, medium and large enterprises. It will results into increasing productivity of whole business industry.

Attractiveness of United Kingdom in order to have FDI stock of around £1 million which is considered as half of which from other members of European Union. This will results into decreasing profits regarding FDI become less due occurrence of Brexit. I have analysed that various kind of government as well as legal regulations may become barriers in foreign direct investment which should be decreased (Usunier, 2011). It will help to provide chance to each and every small or large enterprise to accept FDI and earn better profits.

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Strategic brand management can be described as that process which aim to manage brand image by preparing innovative policies. Brexit refers to the withdrawal of UK from European Union. It is relevant to EU single market which described ass trade agreement between all state members of European Union. There are various kinds of impacts help are achieved through Brexit negotiations and potential agreement. The most challenging and powerful aspect may secure a fresh trade agreement with EU in context leaving customs union. FDI can be described as abbreviated form of foreign direct investment and UK can be considered as a strong brand for it. 

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  • Annie Jin, S. A., 2012. The potential of social media for luxury brand management.Marketing Intelligence & Planning.30(7). pp.687-699.
  • Baumgarth, C., Merrilees, B. and Urde, M., 2013. Brand orientation: Past, present, and future.
  • Bruhn, M., Schoenmueller, V. and Schäfer, D. B., 2012. Are social media replacing traditional media in terms of brand equity creation?.Management Research Review.35(9). pp.770-790.
  • Helfat, C. E. and Winter, S. G., 2011. Untangling dynamic and operational capabilities: Strategy for the (N) everchanging world.Strategic management journal.32(11). pp.1243-1250.
  • Kapferer, J. N., 2017. Managing luxury brands. InAdvances in Luxury Brand Management(pp. 235-249). Palgrave Macmillan, Cham.
  • Payne, A., 2012. Handbook of CRM. Routledge.
  • Qian, Y., 2014. Brand management and strategies against counterfeits.Journal of Economics & Management Strategy.23(2). pp.317-343.
  • Reijonen, H. and et. al., 2012. Are growing SMEs more marketoriented and brandoriented?.Journal of Small Business Management.50(4). pp.699-716.
  • Tirunillai, S. and Tellis, G. J., 2014. Mining marketing meaning from online chatter: Strategic brand analysis of big data using latent dirichlet allocation.Journal of Marketing Research.51(4). pp.463-479.
  • Tsiotsou, R. H. and Goldsmith, R. E., 2012. Strategic marketing in tourism services. Emerald Group Publishing.
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