Brand Equity and how to built it

Brand Equity and how to built it

Let’s imagine we’re all about to buy a pair of sneakers. Now, we know most of us will think of a pair of Nike sneakers than a generic brand. Why did we all think of Nike? Maybe Because we trust the quality, Nike is trendy and it’s reliable. 

Exactly! Nike didn’t become our go-to just because they make good shoes, right? It’s because we trust them, know their style, and feel connected to the brand. That’s what we call brand equity. It’s the extra value a brand gives to a product beyond what it physically offers.

Now, let’s break it down together. What makes us trust Nike?

It could be: “Their quality,” “Their ads,” or “Famous athletes wearing them “.

We could say these are all things that build brand equity: quality, marketing, emotional connections, and endorsements. When a brand consistently delivers these things, we as consumers are willing to pay more, stay loyal, and even recommend it to others.

So, brand equity isn’t just about the product. It’s about how we feel, how the brand communicates, and the experiences they provide. Now, think about how many of us could have recommended a brand to a friend because of how much we love it.

That’s the power of brand equity. It turns customers into ambassadors. And when you have that, your brand isn’t just a product—it becomes a part of people’s lives. 

Why is brand equity important?

Let me tell you why brand equity matters so much for businesses. It’s like the backbone of any successful company. Here’s what I mean:

First, brands with strong equity can charge more for their products. Think about it—when you trust a brand and believe it’s top quality, you’re usually fine with paying a little extra for it. That’s why companies don’t have to hike their production costs but can still boost profits.

Then there’s customer loyalty. Once people feel connected to a brand, they keep coming back. Not just that, but they also recommend it to their friends and family. So, the company doesn’t have to spend as much on marketing because their loyal customers do a lot of the work for them.

Launching new products becomes easier when a brand has a strong reputation. People already trust the brand, so they’re more likely to try new things from them. It’s much less risky compared to a lesser-known brand.

Strong brand equity also helps companies take a bigger share of the market. Even in crowded markets, people tend to choose brands they know and trust, even if it costs a bit more.

Plus, with a great reputation, companies don’t have to spend a fortune on ads. Word-of-mouth and the trust they’ve built up carry a lot of weight, often more than any traditional advertising.

Another benefit is building influence and partnerships. Companies with strong brands attract collaborations because everyone wants to be associated with a well-known, trusted name. It opens doors for growth and new opportunities.

And here’s the thing, when the economy is shaky, strong brands survive better. They’ve got loyal customers who keep buying from them, even in tough times.

In short, having strong brand equity allows companies to charge premium prices, keep customers loyal, launch new products smoothly, dominate the market, save on marketing, build partnerships, and stay resilient in hard times. That’s why it’s so important!

How to build brand equity

Building brand equity is like building a strong connection with your customers, step by step. It’s about making people know your brand, understand what it stands for, and feel a connection with it. Let’s break it down into simple steps:

Step 1: Make People Aware of Your Brand

The first step is getting people to recognize your brand. You want your logo, your name, or even your colors to be something that sticks in their minds. If they see your brand, they should immediately think of what you offer. Being consistent with your branding—using the same logos, colors, and messaging—helps you stay in their thoughts.

Step 2: Explain What Your Brand Stands For

Once people recognize your brand, you need to explain what it’s all about. What values does your brand represent? For example, are you focused on being environmentally friendly or providing the highest quality? This helps customers connect with you on a deeper level, especially if they share your values. Make sure your product or service solves their needs, both physically and emotionally.

Step 3: Build Positive Feelings and Opinions

Now, it’s time to shape how people feel about your brand. You want them to think of your brand as trustworthy and high-quality. Create positive feelings like excitement, comfort, or even fun. For example, if your product makes people feel good or makes their life easier, they’ll have a more positive opinion of you.

Step 4: Build Strong Relationships

The final step is forming a lasting bond with your customers. When people are loyal to your brand, they’ll keep coming back to buy more. They might even recommend your brand to friends or share it on social media. You want to create a community of people who feel connected to your brand and what it represents.

Stay Consistent and Deliver on Promises

While doing all this, make sure your brand is consistent in its message and quality. Don’t promise one thing and deliver something else. When customers see you’re genuine, they’ll trust you more and stay loyal.

Keep Improving

Always listen to their feedback and keep improving your product or service. Brand equity isn’t something you built overnight. It takes time, effort, and consistency, but once you achieve it, your brand will be the one that something people trust, respect, and love.

Conclusion 

Building brand equity takes time, consistency, and a deep connection with your customers. It’s about making your brand recognizable, trustworthy, and a part of people’s lives. Remember, brand equity is more than just a product—it’s an experience. By staying true to your values and delivering on promises, you can create a loyal community that loves and trusts your brand.

This blog is written by Ant Squad, a branding agency in Coimbatore, dedicated to helping brands grow and connect with their audience.  Let’s keep building strong, trusted brands! 

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