Brand equity

What is Brand Equity?

Brand equity is the value of a brand that is derived from the goodwill and name recognition that it has earned over time. It is a measure of the positive qualities that make a brand stand out from its competitors and the loyalty that it has been able to generate from its target audience.

Advantages of Brand Equity

Brand equity has a number of advantages that make it an important factor when evaluating a brand’s overall performance. These include:

  • Increased customer loyalty: Customers who have a positive experience with a brand are more likely to become repeat customers and to recommend the brand to others.
  • Higher perceived value: Customers may be willing to pay more for a product or service if they recognize the brand and have had positive experiences with it in the past.
  • Greater market share: A brand with high brand equity may be able to capture a larger share of the market because customers are more likely to choose it over competing brands.
  • Increased credibility: Customers are more likely to trust a brand with a long track record of success and positive customer experiences.

Examples of Brand Equity

There are numerous examples of companies that have successfully built up their brand equity over time. Some of the most well-known examples include:

  • Apple: Apple is one of the world’s most recognizable brands, and its success is largely attributed to its strong brand equity. Apple has been able to build up its brand by offering high-quality products and services, as well as a strong customer service experience.
  • Nike: Nike is another example of a company that has built up its brand equity through its strong branding and marketing campaigns. Nike has also been successful in creating a sense of loyalty among its customers, which has helped it to become one of the most recognizable brands in the world.
  • Starbucks: Starbucks has become a global phenomenon, largely due to its strong brand equity. Starbucks has been able to create a sense of community among its customers, and its iconic logo is instantly recognizable.

Brand equity is an important factor in the success of a business, and it is essential for companies to invest in building up their brand equity over time.


[1] Brand Equity [2] Apple Inc. [3] Nike, Inc.