In this blog, we will understand what is brand equity? If you guys didn’t know about the brand or branding then no need to worry I have already explained it in my previous blog check it out. what is branding?
The commercial value that derives from consumer perception of the brand name of a particular product and service, rather than from the product and service itself. Companies can create brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability.
- If you want to purchase a mobile and the first brand that comes into your mind that can be iPhone, Samsung, etc. That means the brand equity of these products has more compare to other brands in your mind. Because these products have created their superior value in your mind.
- Suppose your marriage is near and you have to buy clothes and the first brand that comes into your mind is Zara, likewise for shoes Bata so why does this happen?
It does happen because of the strong brand equity of those products in your mind.
Some of the companies’ product brand equity could below compare to others.
Let’s understand this with an example if I have to drink beverages and the first beverage which comes into my mind is Coca-Cola and then Pepsi that means Pepsi’s brand equity is lower than Coca-Cola.
Another example-You are hungry and wanted to eat pizza 🍕 so you ordered from dominoes. There are many other brands in the market but you ordered only from dominoes. why? it happens because of the high brand equity of that companies product which exists in your mind compare to other companies’ brands.
How to create brand equity?
Identity: Build Awareness
Build awareness of your brand like people must understand what is your intention of making it.
Meaning: communicate what your brand means and what is stand for
It means you must have communicated with your customers about what is your brand meaning and what is it stand for. Example performance-wise and imagery wise.
Response: reshape How customers think and feel about your brand
Customers will respond to your brand through judgments and feelings. And that Judgement will be related to things like quality, credibility, how relevant your product to customer needs, and whether your brand is superior to your competitor or not. Positive feelings could include warmth, fun, excitement, security, social approval, and self-respect.
Relationships: Build a deeper bond with customers
This the most powerful and difficult thing to do for creating brand equity. It refers to making a deeper relationship with the customer. And achieving this means your customer has built a deep physiology bond with your brand and product. They make repeat purchases and feel an attachment to your brand or product.
They might feel a sense of community with other consumers and company representatives. And they can be actively engaged as brand ambassadors. By taking part in online chats, attending events, or following your brand on social media, such as Twitter or Facebook. That brand equity connection can be tremendously valuable.
How to measure brand equity?
Commonly use metric’s to measure Brand strength from a consumer lens-
If most people have heard of your brand it must be stronger for example iPhone, Samsung, etc.
If most people use your brand it must be stronger for example lifebuoy soap, Dettol soap, etc.
If most people like your brand it must be stronger for example domino’s, McDonald’s.
Top of mind and unaided awareness
If more people mention the brand without being prompted it must be stronger, for example, Nike for sport’s Zara for clothes.
Retention or loyalty
If more people return to buy the brand again it must be stronger, for example, Zomato,swiggy, etc.
So all of these are relevant but don’t give the full picture.
The stronger brand may not be no1 on all these metrics but It may no 1 in some and it can be 2nd or 3rd in others.
So what is the simplest single metric to measure the strongest brand? At a point In time?
Value market share
The brand that has the highest sales in value as compared to its competitors is the strongest brand.
Brand orange is no1 in penetration, brand blue is no1 in awareness while Brand light grey is no1 in likes but brand yellow is the market leader and the strongest brand.