What builds brand equity?
- Awareness: people know your name and recall it when they need what you sell.
- Associations: what comes to mind with your name, such as "safe", "durable" or "good value".
- Perceived quality: what buyers believe about your quality, which may differ from reality.
- Loyalty: people buy again and recommend you.
A worked ₹ example
A made-up example: a local paint maker sells a 10-litre tin for ₹2,400. A well-known brand sells a similar tin for ₹2,700, and dealers say most buyers still ask for it by name. The ₹300 that buyers accept per tin, plus the sales the known brand wins at the counter, is a rough measure of its brand equity.
How is brand equity measured?
- Price premium: how much more people pay than for a similar unbranded or lesser-known product.
- Share of search: how often people search for your brand name compared with competitors.
- Awareness and preference surveys: do people know you, and would they choose you?
- Repeat purchase and referrals: how many buyers come back or bring others.
Related terms
- Positioning: the one idea you want people to link with your brand.
- Brand strategy: deciding what your brand stands for and for whom.
- Share of voice: your share of all advertising and talk in your category.
Read more in our article on building brand equity, or see how we work on it through brand strategy.
