Building Brand Equity

Dr. Ranjan Madanayake
DBA, CPM, FSP Mgt, FSBP, MCInstM, RPM, MMA, MNZIM, MIM (SL), MSLIM, CPM

Companies become successful by achieving its desired market share and profitability through marketing one or more of their brands to target markets. P and G and Unilever have a range of global brands achieving success in different international markets. On the other hand, Singapore Airlines is a successful corporate brand in South East Asia while Airasia is similar but is a budget airline. While companies such as P and G and Unilever, favour a multi-brand strategy, some companies use a strategy of extending their brands as illustrated below:

There are advantages and disadvantages in brand extensions, not- withstanding, building great brands is a company’s greatest challenge and ultimately its greatest asset. Branding is about endowing products and services with the power of brand equity. Brand equity came up in the '80s. However, on the good side, brand equity has elevated the importance of the brand in marketing strategy and on the bad side, brand equity has been defined in a number of ways and for different purposes without a common viewpoint.

Brand equity

Brand equity is the added value endowed on products and services.

It may be reflected in the way consumers think, feel, and act with regard to the brand, and in the prices, market share, and profitability the brand commands for the firm (Kotler et al, 2012).

A brand that commands great brand equity, besides gaining, retaining and growing market share will also have equally great brand value.

Some of the brand values of brands below are even greater than the GDP of several countries. This demonstrates the importance of brands, brand equity of brands to companies that market successful brands.