Marketing Case Study

Is it important to develop Brand Equity?

It is important for sure. Basically brand equity is the added value endowed on products and services. It may be reflected in the way consumers think, feel, and act with respect to the brand. Therefore if the development of brand equity is good, consumers would think and feel good respect to the brand. In this case study, in order to develop brand equity, P&G studies its customers, and have long-term outlook, P&G’s products are developed to meet customers’ needs, and have clear focus which is customer orientated. P&G continually improve the product through product innovation to offer new consumer benefits, and they designed products of above average quality and continuously improves them in ways that matter to customers.

As companies or brands grow and become more established, the threat of losing those initial core values can begin to surface. It is easy for brand values to become diluted, and this creates a real risk of losing loyal customers. Therefore, it is vital to create an internal culture that reflects the brand positioning and can grow the equity of the brand. A brand is about so much more than just a name, a logo, and a design. A brand is established at each and every point of contact, and most companies do not really follow through on that consistently.

What are the key factors when considering a brand strategy?

In my opinion, key factors can be such as ‘market size’, ‘competitive situation’, ‘company resources’, ‘company situation’. When the market size for the product category is quite large, a company can follow a product branding strategy provided the sales generated could fund the investment in the brand. In the case of a relatively small size of a market, growing slowly as well, the investments in a brand may not be justified. In such situations, the company should look at leveraging an existing brand asset and go in for options such as double branding, umbrella branding or...