Why we should invest in building brand equity
“Products are made in a factory, but brands are created in the mind” – Walter Landor
Ever wondered why some products have higher prices and still command undying loyalty? There’s no sorcery to this, just the work of good old branding.
When brand building is done right, it creates brand equity. Simply put, brand equity is the value placed on a brand name. Customers are more willing to shell out more for a product from a brand with a higher brand equity than for a generic alternative.
Take the classic example of Lacoste. Lacoste is what some would call an accessible luxury brand. A Lacoste golf shirt, adorned with the iconic alligator, commands a relatively expensive price compared to what the average Joe would pay for a similar shirt without the emblem. 🐊 Customers happily pay the extra amount because they associate Lacoste with more than just clothing; it's a symbol of status and refined taste. 🎩
It’s easy to forget about this simple 101 truth about the power of branding, because building brand equity takes time, something which is scarce these days as we’re constantly pressured to deliver financial results in an instant.
Building brand equity isn't just about slapping a logo on a product; it's about creating a narrative, an emotional connection with your audience that goes beyond the tangible. It's an investment in the long-term success and resilience of your business. 💪
Take a moment to reflect on those cult-like brands. What are they doing right? How can you apply it to your company’s brand? How about applying it to your own personal brand? What can we learn from icons like Steve Jobs, Oprah Winfrey and the current poster boy, Elon Musk?
Here’s why we should invest in building brand equity:
• High volume: A strong brand attracts a larger customer base, driving sales and market share. 📈
• High margins: Customers are willing to pay more for a brand they trust, leading to increased profit margins 💰
• Repeat buys: Loyalty is a natural byproduct of a well-established brand, fostering repeat business 🔁
●