Brand Equity and Co-Branding

Brand is the major enduring asset of the company outlasting the company’s specific products and facilities. They represent the consumer’s perceptions and feelings about the product and its performance.

• Brand Equity is the differential effect that knowing the brand name has on the customer response to the product and its marketing.

• Companies can create brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability.

• Brand strength lies in four consumer perception dimensions:

  • What makes the brand stand out?

  • How do consumers feel if it meets their needs?

  • How many consumers know about the brand?

  • How highly consumers regard and respect the brand?

• If brand equity is positive than the company products and financials can benefit. If it is negative then consumers will react unfavorably to the company products.

• Example: Jewellery brand ‘Tanishq’ has the higher brand equity compared to its other competitor ‘Nakshatra’.

• Building strong Brand equity involves Positioning the Brand by using its features, the benefit it offers and harnessing the emotional sentiments of the customers.

• It involves choosing a Good Brand Name which adds greatly to a products success.

• Brand Sponsorship plays a major role in getting the product to the customer.

• Co-Branding occurs when 2 established brand names of different companies are used on the same product.

• Example: Music streaming app ‘Spotify’ partnered with ride-hailing app ‘Uber’ to give a personalized ride experience for its customers. Users can sync their ‘Spotify’ accounts when hailing an ‘Uber’ and have their favourite song played while traveling.

• Brand Development involves making extensions in existing brand in terms of colours, flavours or forms. Introducing new products in existing brands or making new brand name itself.

 Source: Principles of marketing- Philip Kotler ( http://bit.ly/2x5wb6R,  http://bit.ly/2p2SdSH )