Brand Equity

Brands vary in the amount of power and value they have in the marketplace. A powerful brand has high brand equity. Brands have higher brand equity to the extent that they have higher brand loyalty, name awareness, perceived quality, strong brand associations, and other assets such as patents, trademarks, and channel relationships.

A brand with strong brand equity is a very valuable asset. Measuring the actual equity of a brand name is difficult. However, according to one estimate, the brand equity of Marlboro is $45 billion, Coca-Cola $43 billion, IBM $18 billion. Disney $15 billion, and Kodak $13 billion. The world’s top brands include super-powers such as Coca-Cola, Campbell, Disney, Kodak, Sony, Mercedes-Benz, and McDonald’s.

High brand equity provides a company with many competitive advantages. A powerful brand enjoys a high level of consumer brand awareness and loyalty. Because consumers expect stores to carry the brand, the company has more leverage in bargaining with resellers.

Be the first to comment on "Brand Equity"

Leave a comment

Your email address will not be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.