Just a small experiment, enough to see the power of the brand. In fact, there is no difference between the products themselves. The difference lies in consumers' brand preferences and the different benefits that brands bring to consumers.
Robert America, former chairman of Coca-Cola Company. Shipu Woodruff said: As long as the brand "Coca-Cola" is reduced to ashes in the fire one day, the commercial headline of the news media the next morning is that the major banks are scrambling to borrow money from the "Coca-Cola" company. Robert. Shipu Woodruff's rhetoric is by no means self-important, because the borrower of the bank is not a fire in a pile of ruins, but a "Coca-Cola" brand, and the intangible assets of this powerful brand exceed the sum of all tangible assets.
From the above example, we can see that a brand is an asset. Brand equity, also known as brand equity, can only be produced by the market efficiency of a brand, or there is a difference in market efficiency between a brand and a product without a brand.
Brand equity is a series of assets and liabilities that link brands, brand names and signs to increase or decrease the value of products or services sold by companies. It includes five aspects, namely brand loyalty, brand awareness, perceived brand quality, brand association and other proprietary assets (such as trademarks, patents, channel relationships, etc.). ), these assets provide value to consumers and enterprises in various ways.
Brand equity is an important asset, an effective means to save the cost of enterprise marketing activities, a source to enhance the quality products of enterprises, and a magic weapon to achieve competitive advantage. To enhance the value of brand assets, brand reputation can contribute to value spillover, and promoting the expansion of brand assets can be an effective barrier to prevent competitors from entering. So, how to enhance the brand's equity value? Specifically, we can start from the following aspects:
1, increase the differentiation of brand equity value.
The key brand value of assets is reflected in the differentiated competitive advantage. This advantage can be reflected in the differences in performance, durability, reliability and convenience brought by product quality, performance, specification, packaging, design and working style; It is also reflected in the added value brought by the service brand, such as rapid response service, accuracy of service technology, comprehensiveness of service and affinity of service personnel. The third possibility is that personality is shaping brand association, and brand association can affect customers' purchasing psychology, attitude and motivation. Therefore, enhancing customers' perceived brand value, in turn, can enhance brand value. Enterprises can combine the advantages of their own brand personality and enhance the value of brand assets through personalized positioning. This can be achieved in different ways: for example, technology leadership, product differentiation and specific market technology.
2. "Strong" alliance
Brand value can also join hands with other brands to rapidly expand their brand image and create more added value. Large enterprises are often good at using their world-renowned strong brand appeal and market advantages in their respective industries to "join hands with other industry leaders" to strengthen their brand image. This combination is often based on cooperation and win-win two or more brands, so it is easy to get positive response from partners and the market.
Starbucks, as a well-known brand of "fast food coffee", has joined hands with United Airlines. On the one hand, it has expanded new business areas and made its products cover a broader market space; On the other hand, in terms of this cooperation advantage, the brand values of both parties in their respective fields have been effectively improved. Facts have proved that many potential customers have become customers of United Airlines because of its new measures, and many Starbucks "champions" have begun to know and fall in love with this "coffee star" on United Airlines.
Another classic example comes from Intel. The WINTEL Empire jointly built by Intel and Microsoft has brought them huge profits and the most powerful brand image.