Real-World Example of Brand Equity
When a company wants to expand its product line, this is an example of when brand equity is important. If the brand has positive equity, the company can increase the likelihood that customers will buy its new product by associating it with an existing, successful brand. For example, if Campbell’s introduces a new soup, the company will most likely keep the same brand name rather than creating a new one.
Below are some other examples of brand equity:
Tylenol
- Tylenol, manufactured by McNeil (now a subsidiary of Johnson & Johnson) since 1955, is a first-line treatment for mild to moderate pain.
- According to EquiTrend research, consumers prefer Tylenol to generic brands.
- Tylenol Extra Strength, Tylenol Cold & Flu, Children’s Tylenol, and Tylenol Sinus Congestion & Pain have all helped Tylenol expand its market.
Kirkland Signature
- Since its inception in 1995, Costco’s Kirkland Signature brand has maintained positive growth, accounting for a growing portion of the company’s overall sales.
- Signature includes hundreds of products such as clothing, coffee, laundry detergent, food, and beverages. Costco even offers members exclusive access to lower-cost gasoline at its private gas stations. Kirkland’s popularity is boosted by the fact that its products are less expensive than those of other well-known brands.
Starbucks
- Starbucks was named the sixth-most-admired company in the world by Fortune magazine in 2020 for its commitment to social responsibility.
- Starbucks is the world’s largest roaster and retailer of Arabica coffee beans and specialty coffees, with over 31,000 stores worldwide in 2019.
Coca-Cola
- With a profit margins between 25-30%, Coca-Cola is often rated the most valuable soda brand in the world.
- However, the brand itself represents more than just the products—it’s symbolic of positive experiences, a proud history, even the U.S. itself. Also recognized for its unique marketing campaigns, the Coca-Cola corporation has made a global impact on its consumer engagement.
Porsche
Porsche, a well-known automobile brand, maintains its image and dependability by employing high-quality, one-of-a-kind materials. Porsche, as a luxury brand, offers its customers not only a product but also an experience. According to U.S. News & World Report, Porsche was the top luxury brand in 2020 when compared to other vehicle brands in its class.
Brand Equity: Definition, Importance, Elements and Examples
In the highly competitive world of product management, building and maintaining a strong brand is crucial for long-term success. Brand equity is a key component of a brand’s overall value, encompassing various elements that contribute to its perception of the market.
Brand Equity: Definition, Importance, Elements and Examples
Table of Content
- What is Brand Equity?
- Importance of Brand Equity
- What Factors Affect Brand Equity?
- Elements of Brand Equity
- How to Create Brand Equity
- Benefits of Creating Brand Equity
- Effects of Brand Equity on Profit Margin
- Real-World Example of Brand Equity
- Brand Equity vs. Brand Awareness
- How to Measure Brand Equity
- Conclusion