Brand equity is basically the outcome result from marketing the product and service brand name or some other brand element that the substitute of product don’t have. Brand equity is created through the large pool of investment the organization invest to create its brand equity by sponsoring different event like cricket matches, concerts and other events  it is considered as the asset for an organization because brand name can be sold.
Several stakeholders anxious with brand equity i.e. Firm, customer, media, Distribution channel and financial markets but in the end it is the customer because the end user of product and service is customer it is the choices that determine the success or failure of the company and the brand.
Customer awareness about brand plays an important role in building brand equity the seeming differences and its effects on purchase behavior and decisions is important for the brand equity. Organizations have to consider managing the brand equity by marketing metrics. It consists of three sets of metrics its is basically the Asian brand strategy knowledge, preference and financial high scores in these three parameters means good outcome and strong brand

Knowledge metrics

It is important for the organization to make there customer aware about the company brand and knowledge metrics is used to make customer aware of brand and recall it by associating with celebrities, jokes, event and emotions with brand or product which will help them to recall the brand like in cricket world cup most of cold drink adds is associated with cricket matches and when customer watch match then they recall add which will convert in to the buying behavior

Preference metrics

Measure a position of your brand and competitors. Customers go by various levels of preference towards the brand which comes from awareness and familiarity to strong loyalty and frequent revenues from the customer base. Awareness and familiarity make the brand strong which convert in to the customer loyalty which make customer frequent buyer and frequent buyer gives you frequent revenue.

Financial metrics

Measure a brand’s monetary value via the different parameters of market share, price premium brand information, the revenue generation capabilities of a brand, the transaction value, the product quality should be constant with what the consumers expect of the brand. The distribution channels should be constant with what is expected of a premium brand. Also, the promotional campaign should build constant associations. The expectation of the customer should be fulfilled with the brand product, price and quality.

Positive or Negative brand equity

Products or services with positive brand equity deliver value to the customer based on its quality, experience, durability, availability, services, warranty and etc. Companies charge more premiums indicate higher brand equity.
Negative brand equity has a worst impact on the company image. The cause of negative brand image is poor quality, customer bad experience with the product, bad word of mouth and most important poor performance of the previous product and services. Customers are not willing to buy the products with negative brand equity because its not equal to the worth of amount.

Sources of Brand Equity

Following are the sources of brand equity.

Market Research

Introducing brand in the market needs quantities or qualitative research to get familiar with the trends and different attributes. Proper market research allows the company to launch a right brand for the right segment.


New product must incorporate quality ingredient because first impression is the last impression. If customers are satisfied with the quality of your product then customers will suggest other people to go for this product by sharing good thoughts.

Brand Name

Brand name should be related to the product and easy to remember.

Brand Positioning

Position brand in such a way that customer can remember it for a long time and position in his mind.


Always offer product different from your competitor add some exciting feature to allow the customer to go for your brand. For Example – 3M always dominate the market with their innovative products.

Marketing Mix

The proper use of marketing mix adds value in the brand marketing. Promotion and personal relation increase brand equity.

Brand Extension

To polish your brand, bring some new products and services under the umbrella of same brand name.  For example, Dettole Soap and shampoo, Lux Soap and Shampoo, LG monitors and mobiles.

Customer opinion

Always look for customer opinion because they know the best and worst about the product. For example – Procter & Gamble ask for the customer idea for their product through their customer portal.

Protecting the Brand Equity

The brand name can be establish and compete among the competitors brand only if the quality match the perception of the customer. The customer purchasing the product always willing to get more than the value he paid for the product. Organization should take care of the customer to maintain the value of brand in the market place.

Top five brand of 2009

1) Coca-Cola
2) I B M
3) Microsoft
4) GE
5) Nokia