Brand equity Brand equity is an intangible assert that has a
psychological and financial value to an organization.Brand equity
is the combined measure of brand strength and consists of
knowledge, preferences and financial considerations. Each of the
three measures under these three metrics is critical.Brand
portfolio scores highly in each to optimize its financial
outcome.
Metrics of brand equity
Knowledge metricsIt measures a brands awareness and association
through top of the mind recall, recognition aided and
unaided.Functional and emotional associations of a brand are also
key drives of brand equity.Brand should score high on both the
awareness and association attribute.Example 1 : Consumers are aware
of the energy drink Boost and they recalls it by associating with
Sachin Tendulkar with the brand and when they watch Sachin they
recall the add and which will end up into buying behavior.Example 2
: Customers associate Johnson and Johnson with baby products and
when they think of buying baby products they recalls the brand
which will end up in buying behavior.
Associating Sachin with boost
Preference metricMeasure a position of your brand and
competitors. Customers preference towards the brand comes from
awareness and familiarity to strong loyalty and frequent revenues.
Awareness and familiarity make the brand strong which convert in to
the customer loyaltyWhen customers become loyal to a brand which
make them a frequent buyerFrequent buyer gives you frequent revenue
to the organization.
Financial metrics
Measure a brands monetary value via the different parameters of
market share, price premium brand information.The revenue
generation capabilities of a brand, the transaction value, the
product quality should be constant with what the consumers expect
of the brand. The distribution channels should be constant with
what is expected of a premium brand. Also, the promotional campaign
should build constant associations. The expectation of the customer
should be fulfilled with the brand product, price and quality.
