Brand Equity and Co-Branding

Brand is the major enduring asset of the company outlasting the company’s specific products and facilities. They represent the consumer’s perceptions and feelings about the product and its performance.
  • Brand Equity is the differential effect that knowing the brand name has on the customer response to the product and its marketing.
  • Companies can create brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability.
  • Brand strength lies in four consumer perception dimensions:
    • What makes the brand stand out?
    • How do consumers feel if it meets their needs?
    • How many consumers know about the brand?
    • How highly consumers regard and respect the brand?
  • If brand equity is positive than the company products and financials can benefit. If it is negative then consumers will react unfavorably to the company products.
  • Example: Jewellery brand ‘Tanishq’ has the higher brand equity compared to its other competitor ‘Nakshatra’.
  • Building strong Brand equity involves Positioning the Brand by using its features, the benefit it offers and harnessing the emotional sentiments of the customers.
  • It involves choosing a Good Brand Name which adds greatly to a products success.
  • Brand Sponsorship plays a major role in getting the product to the customer.
  • Co-Branding occurs when 2 established brand names of different companies are used on the same product.
  • Example: Music streaming app ‘Spotify’ partnered with ride-hailing app ‘Uber’ to give a personalized ride experience for its customers. Users can sync their ‘Spotify’ accounts when hailing an ‘Uber’ and have their favourite song played while traveling.
  • Brand Development involves making extensions in existing brand in terms of colours, flavours or forms. Introducing new products in existing brands or making new brand name itself.
 Source: Principles of marketing- Philip Kotler ( http://bit.ly/2x5wb6R,  http://bit.ly/2p2SdSH )

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