44. What Is Your Brand Worth?
The term “branding” was first associated with ranchers burning a mark on a steer so that one rancher could identify his steer from another. The idea of branding a product or service is really the same; you are burning your brand image in the minds of consumers. Building a strong brand image and personality demands that you understand the essence of your product or service and succinctly convey it to your target customer. Creating and communicating your company’s brand identity is critically important in a competitive and volatile marketplace.
The evidence of a strong brand is its Brand Equity. It is the total accumulated value or worth of a brand, which consists of the tangible and intangible assets that the brand contributes to the company, both financially and in terms of selling leverage. Brand equity, while hard to measure, is worth a considerable amount on a company’s P&L statement. Coca Cola’s brand equity is estimated to be worth $67 million, and even relatively new companies like eBay and Google have earned considerable brand equity in a short period of time.
Personify Your Brand
The position of a product is strengthened when it is personified. Brand Personality describes the personification of the brand by expressing its qualities as human qualities. Personifying a product is especially important if there is product or service parity in your industry as it may be the key element that differentiates your product from competitors. For example, when you think about buying something as mundane as batteries, would you buy Energizer, Duracell, or some other brand? Chances are, as you make that decision, you are subconsciously attracted to the brand personality, and this will influence your decision. Are you drawn more toward the cute, pink Energizer bunny that keeps going and going, or matter-of-fact Duracell, the strong copper-top battery?
When a brand is defined with human characteristics, you give your product or service a personality that people can relate to on an emotional level. Brand Essence can be defined as the values, emotions, and core elements used to describe a brand.
The most effective brands are charismatic. Emotions outweigh logic even when it comes to technical purchases. This is evidenced by people who desire an Apple computer instead of a PC despite the fact that the company he or she works for uses a PC platform.
People are drawn to brands that connect with their own personalities, or the person they aspire to be. Consider how brand personification applies to ski resorts in Colorado. Each resort conveys a distinct personality. Aspen would likely be a celebrity, Vail may be a refined and worldly traveler, and Arapahoe Basin is a Gen Y dude who enjoys adventurous skiing. In Colorado, where skiers have such close proximity to so many world-class resorts, brand identity helps skiers identify with their own personality and preferences. Skiers will choose a mountain resort that is relevant and meaningful to them or what they would like to be—glamorous, international, or adventurous.
Other aspects like symbols, logos, and tag lines anchor a brand and effectively tie brand identity to brand essence. The famous Nike swoosh communicates a sense of competition, speed, and performance and is easily recognized when disaggregated from the Nike name. It is so recognizable and effective that the brand identity functions in much the same way as ancient Egyptian hieroglyphs, conveying a meaning and personality through its logo design. McDonald’s “Golden Arches” are recognizable around the world, as is Target’s bulls-eye and Apple Computer’s symbolic image of a fruit. Coca-Cola’s strong image has become an international symbol of American culture, earning the number-one spot as the world’s most valuable brand.
A strong brand name needs to be managed so the equity does not depreciate. Included in that task are continuous R&D, skillful advertising, and appropriate levels of trade and customer service throughout the distribution channel. And remember, while brand management is usually a function of the marketing department, brand equity is the responsibility of everyone in an organization.