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.