In today’s environment, building strong brands and establishing brand equity is becoming more and more challenging. A strong brand acts as a promise, leading faithful  customers  to  pay  a  premium  over  competitive  products.  The  most important  assets  of  any  business   are  intangible:  its  company   name,  brand, symbols,   perceived   quality,   name  awareness,   patents,   trademarks   etc.  these assets comprise brand equity, a primary source of competitive advantage.




Most  evaluations of brand equity involve utility estimations. Value (utility) of a product  features  and  price  level  and  also  measuring  the  overall  utility  of  a product, including brand name. The difference between total utility and utility of product  features  is  the  value  of  the  brand.  Monetary  value,  intangibles  and perceived quality are also used in the brand equity measurement.

Brand Equity can provide strategic advantages by: Use leverage when introducing new products.

Brand can be linked to a quality image that buyers want to be associated with

Can lead to greater loyalty from customers. Offer a strong defence against new products and new competitors.

Can lead to higher  product trails and repeat purchasing,  due to  buyer awareness of the brand.


Example: BPL brand has been valued at Rs. 600 Crores

HLL brand has been valued at Rs. 900 Crores



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