Brand Equity Wsj Case Study

Brand Equity

Brand equity is defined best as marketing effects uniquely attributable to a brand. That is what the brand receives based on how, where, who and when it is marketed to consumers. Once a brand has been marketed, brand equity needs to be measured in order to be managed well. This allows consumers to perceive differences among brands in a product category. In order to for a brand to build brand equity it must have three contributing factors: 1) The initial choices for the brand elements or identities making up the brand; (2) The way the brand is integrated into the supporting marketing programs; (3) The associations indirectly transferred to the brand by linking the brand to some other entity (Kotler & Keller, 2012; p. X).

The reason that brand equity is dividing upon product category is due to consumer desires. Personally, I find that there are many products where being loyal to a specific brand equates to product quality and consistency. I normally apply this to opinion when it comes to food purchasing and consumption. I routinely visit the same markets that carry both perishable and nonperishable food items that are staples in our home. Not only does my preference in certain brands for our food important to our health it gives me confidence that what I am spending my money on will be worth it. Where I can find myself being less loyal and shopping around would be when it comes to products that entertain and that I utilize for my clothing. In my experience, clothing has never been better than competitors generally speaking. Spending $200 on a pair of jeans does not leave me with greater satisfaction or a better quality of life, than a pair of $40 jeans. Therefore I often shop around for price rather than brand when it comes to these products.

The brand Coach has been a leading handbag and accessory brand for women and men for a number of years. In January 2014, their last quarter earnings fell 16% to 297M and its revenue also slide by 5.6%. This was...