Brand equity is a measure
of brand's worth. It can be expressed concisely in a few sentences; by its
elements of value as perceived by the consumers, by its dominant
characteristics, by its popularity, by its credibility factors, by its
revenue potential and also by the price anybody would wish to buy it at for
all its values. Brand equity is the power of a brand to make good in the
Unbiased assessment of
Brand equity is critical for deciding on the next-steps in marketing and the
approach to work with it. For achieving operational efficiencies it is
important to balance the marketing decisions and promotion inputs with the
true value and potential of the brand. A good understanding of Brand equity
helps fine-tune and reset demand drives in enhancing the potential of the
Brand equity determines
feasibility level of business strategies, market expansion programs and
brand extensions. It sets the prices and impacts trade terms. Powerful brand
equity helps cut through competition and provides the resilience to endure
market upheavals. Brand equity is a certain potential apart from the
enterprise and can be leveraged for business advantages and valued in
Brand Equity Articulation
Brand Equity Articulation
(BEa) is a structured write-up - presenting the true potential of a brand as
at the given time. It is a compact document but with highly descriptive
statements and notes on the value perspectives duly supplemented with
illustrative chart and maps. It is unbiased, candid and authoritative in
putting out positive as well as negative value elements.
The task involves
assessment of brand equity across the value factors. It includes products,
competencies, communications and most importantly consumers' perceptions of
The document portrays the
brand's real personality traits, style and attitude. It describes the brands
capabilities and limits as against the market opportunities and competition
situation. It evaluates the brand equity quotient with that of the
competition. It serves as a fundamental document for developing the next
branding policies and the next set of strategies and programs.
Leveraging Brand Equity
A good understanding of
the brand's factors of value, intensity or extent of each of them and their
suitable application in operations and business development efforts can
result in cost efficiencies and greater effectiveness. Leveraging brand
equity is about ensuring appropriateness of strategies, style, attitude and
communications across operations and programs - as befitting to the brand's
Leveraging of values with
strategies relate to suitability of conviction and approach. With
operations, it is about people and systems and, with programs, it is about
style and attitude. Values can be cross leveraged as well for superior
benefits and stronger reinforcement of the values.
Inconsistency in anything
and behavioral mismatch are classic examples of absence of brand equity on
play. Not leveraging on relevant brand values is akin to undermining the
very values which, in effect, would only cause erosion of brand equity.
Leveraging brand equity leads to optimization of resources that will
favorably reflect in the finances and eventually can only add to the brand
Future Scope for the Brand
Future scope for a brand
refers to big opportunities that can cause a surge in brand equity or a big
increase in its revenue potential - as primary impact. The scope is normally
determined by the level of brand equity at the given time. However, certain
exceptional opportunities which essentially arise out of an element
innovation can even propel a low key but fundamentally fit brand to the
centre of competition.
Broadly the opportunities
are of two types - those that primarily enhance brand equity and those that
expand the brand on the strength of brand equity. Branding opportunities
help reinforce brand's values or create a new value perspective altogether.
Branding opportunities are created - out of research and are of the nature
of brilliantly structured programs with innovative elements or are powered
by wholesome innovation (refer: Power Charging). Branding opportunities can
be researched out of the linkages of brand's value elements.
Brand Opportunities can be
within - in the products and systems which are matters of innovation or in
the markets which becomes feasible mainly by the power of the brand equity.
Usual opportunities in the market are about expanding the market by depth
and width (refer Big Leaps). Also, sheer power brand equity provides a brand
to opportunity to exploit market situations, economize certain operations
and even earn a revenue just out of it.
Brand Equity Valuation
A brand may have to be
valued by the money for presenting the brand's value as an asset, for a
stake sale, making a public offer of shares or for outright sale. Price
that can be got for a brand varies by the way it is packaged and also
presented. Nevertheless, a brand is essentially valued by its future
potential and therefore pricing a brand is about putting up a bold price and
substantiating it with rationale and conviction.
In a stake sale or public
offer of shares brand equity powers the pricing of the enterprise as whole.
Pricing right in such cases calls for skillful articulation of brand equity
duly appropriating the future scope and should be backed by communication of
the value proposition exceptionally.
The price for a brand is
not really sustained by who bids for it but by who should ideally bid for
it. Branding a brand for sale is important to be able to get the best price
on a sell-out. It calls for; conscious focus on operations, professional
planning of the business, research on branding opportunities and of course
short term investments in business. It is a task that needs management
expertise and superior branding skills - for all the extra money that it can