Mar 07, 2018 | Business Management
Brand equity, you must have heard the term a lot on your business journey, but do you understand what it means and why it is important for your business to build brand equity? Essentially, brand equity is the key to success and growth for any business. Let's discuss the term in detail today and see how you can expand the architecture of your brand.
So, what exactly is brand equity?
According to Investopedia, brand equity refers to a value premium that a company generates from a product with a recognizable name, when compared to a generic equivalent. In simple language, it's the tangible/intangible value a brand has based on the perception consumers have on it, which directly affects the business.
The value of a brand is not just the assets and talent, it's also the goodwill that adds premium value to the brand. Take for example when TATA bought Jaguar, they didn't just buy the factories and other tangible assets of the company, TATA bought Jaguar's BRAND VALUE. Brand equity is the reason why pay higher value for branded goods. Customers are happily willing to pay more for the brands they are familiar with and trust. But remember, brand equity is not limited to branding and putting a logo. It takes more than that.
When your brand is recognized, it's easier to expand in known and unknown markets. When Apple wanted to enter the Indian market, it was welcomed with open arms. Uber's success in India too is the result of the brand's value and recognition. With brand equity, launching new services also becomes a piece of cake as against the struggle the lesser known brands face when they want to promote their new services.
Equity is also vital when finding talent for your company. Ask yourself this question - will an employee be willing to work with a well-known company or with an unknown company. So, the equity not just creates external value, but internal worth as well.
Now let's look at some steps to build positive brand equity for your business.
1. Build your unique proposition
One thing that will set you apart from your competition is your USP. Understand your services, define your USP and make sure it's impacting enough to stand out and is memorable. Your distinguished proposition is what will contribute to your equity, as it plays an important role in forming the perception in the audiences and positioning your brand distinctively.
2. Build your brand identity – the basics
Once you have defined your business and the USP, it's time to get the basics of your brand image right. Design your identity - the name, the visual identity - logo, brand tagline. Your identity will make the connection with your customers. Getting the identity right will add to the brand recall, adding to the equity.
When it comes to the logo, don't go about picking any random designs. It should have a logic and a story behind it and should rightly depict the brand you are trying to build. Establish the brand guideline as well to ensure consistency. Whole lot of this efforts will go on to build awareness and equity, of course.
3. Write your brand story
Brand identity doesn't end at logo making. Your brand needs to tell a story that has a connect with your audience. Building your brand in the market is nothing but storytelling. Figure out what message you want to share with your customers and draft a narrative that a) reflects your brand b) your audience understand.
Don't go about blowing your trumpet, but reassure them how you are there to make their lives better. Enveloping the message in emotions would help in garnering greater response, as customers rely more easily on empathetic brands.
4. Make your presence felt consistently
Now that you have your brand identity and story in place, it's time to go all out with promotions. Use different mediums to promote your business and reach a larger section of your audience. Create a consistent and right message and promote it according to the mediums you pick. Understand your audiences to know when and how often you should send out your messaging. Make sure you don't end up spamming them everywhere. Once the tune is set, your audience will pick up the rhythm and brand equity counter will start rolling.
The goal is to have your audience recognize your brand and develop a trust. At Creative Factor, we are committed to SME brands, as global brands. talk to us on how we can build equity for your brand.