adminChiyambire Kazaka
In the previous discussion we talked about brand equity as the value that the company derives from its brand (in simple terms). Today we want to see how an organisation can leverage, create, or enhance the brand equity. There are basically three ways at an organisation’s disposal to create this brand equity. Depending on the company’s resource advantage, it may opt for one or a cocktail of the following ways.
Building it
Basically, there are four key activities that the organisation must do. It must create the brand awareness, otherwise called the brand salience. This awareness strives to bring out the brand loud and clear. The organisation must ensure the brand meaning is delivered to the target audience. Expected customer performance and imagery should be ascertained with maximum precision. There is also the brand response that the organisation must establish.
Customer brand judgements and feelings are a result of brand quality and credibility. Hence, brand quality should not be compromised if positive response is expected. Favourable response will eventually culminate into a strong customer relationship.
Then, the organisation’s core responsibility will be to nurture the created positive relationship. That is all.
Borrowing it
Alternatively, an organisation may decide to borrow the existing brand names that have high brand equity. This is one of the shortest ways because it extends the value and power of the mother brand. Marketers call it brand extension. An organisation may consider extending the product line (line extension) or product category (brand extension). In line extension major attributes of these products may be similar, however, differing on minor architecture of the products. On brand extension, major attributes may or may not be related but what matters is the use of the already known brand name.
Buying it
Under this avenue an organisation may enhance brand equity through any of the following three options. It may opt for brand acquisition which entails acquiring another organisation and its brands. It may also decide to go for licencing that involves getting licences from well established brand names to market own products.
In this case the organisation will pay what are called royalties or simply licence fees. The last option is co-branding. Using this option, the organisation will jointly brand with an established brand that is already enjoying high brand equity.
Next time we will focus on reasons why some brands fail. Until then God bless you.
Chiyambire Kazaka is an independent writer and an academic with strong passion in the field of business branding. Cell: 0772 893 955 (Call and Watsapp) Email: [email protected]
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