Question

What is brand equity and how does it provide value to a company? In answering this question use examples of well-known brands to demonstrate the different the provision of value time. Using a brand or brands of your choice discuss in detail how a brand can be kept relevant to ensure that it’s value is maintained and enhanced over time.

Answer 1

Brand equity is the added value endowed on products and services. It may be reflected in the way consumer think, feel and act with respect to the brand, as well as in the prices, market share and profitability.

Coca cola is one of the best brands in the world. The total market value of this company is around 175 billion dollars. It is only due to the brand value. Brands are both a strategic as well as a financial asset. A strong brand creates customer loyalty and that increases the value of the company. Brands allow the companies to set higher price on their products.

The products of Nike and Addidas are highly costlier when compared with other sports item companies. It is because people associate higher quality to branded products due to the trust and they will pay more than for a generic version even when the two products are identical.

The ways to maintain the value of brand are :

• By building good value on all the products made by the company : if the company have a bad value on any of its product. Then it will also reflect on its other products.
• By providing continuous differentiation to the products. Take the case of apple, they iphones produced by this company are completely different from its competing smartphones and they always tries to differ from other brands by providing new innovative technologies in their products.
• Always try to maintain the same brand image. Dont change the logo of the products. It will also affect the value of our product.
• Always try to share positive awareness about the product through social medias and maintain it properly inorder to reach for all the people around the world.

Thanks!..