Brand Equity

“Brand” is a term that covers a lot of topics. But where does true brand value exist?

This search for ROI on a branding endeavor or brand as a whole can be a common topic around the board room. Looking for the true value of a “brand” is only a natural desire, especially when one considers that a local brand could be worth less than their rent while a brand like Coke is worth billions and their actual product is worth very little. Where is that value?

Having a logo or followers on Instagram doesn’t make your business a brand. Yes, they are ingredients found within a brand, but they do not create a brand on their own. These are assets that add to your brand’s equity that can gain more value over time.

Brand Equity and Industry Glass Ceilings

Any business has a glass ceiling due to industry limitations and how much a customer base is wanting to consume and/or how often. Steve Jobs with Apple, formerly Apple Computers Inc., saw this. He knew that a quality brand would allow the business to be able to charge a premium and go beyond just computers with their offerings. Apple is a great example of a strong brand because even their name change showed their positioning evolving overtime and now we see them slowly repositioning as a service-based company. Just as they represented sleek, sexy innovation and design through their entire brand, they raised the perception of technology(especially when computers were big, soulless blocks). This not only allowed them to charge a premium because their brand demanded to be respected as such, but also increase the consumption cycle where now people upgrade their iPhones and MacBooks once a year. The brand is the container that increased the perceived quality, appeal, and value of their products.

The most profitable business ever created, Apple, didn’t become that way because of their business model, but because of their brand.

The magic of a brand is the pure value it brings to a business. When it’s properly built and implemented, a great brand empowers a business to go much further beyond its business category, service, or product. Yes, it builds off of the familiar category, but the brand reaches new heights that create endless value for the business and consumer.

The goal should be for your brand to be more valuable than your service/product or even business model as a whole. When this is accomplished, the brand equity will naturally increase the value of not only your business but the perceived value of your products and/or services. This is where true brand value exists and where your business flourishes.

Remember… Coke isn’t a soft drink company. Apple isn’t a computer company. Uber isn’t a taxi company. Nike isn’t a shoe company. Starbucks isn’t a coffee company.