Why businesses should care for brand equity

Long termsA brand is one of the most valuable assets an enterprise owns and brand equity refers to the value of a brand. Companies that successfully build brand equity understand just how significant it is to the bottom line. However, a great deal of effort, time and patience are needed to build positive brand equity.

PR firms are of the opinion that strong brand equity is achievable but it requires a targeted strategy and a mix of good products and other marketing efforts. PR efforts come in handy in this context and are believed to be an effective way to attain desired brand equity results. Most PR agencies in India use the power of brand equity to influence the decision-making ability of the audiences.

It has been noticed that different media channels are being used by the leading PR agencies to create buzz, awareness and boost public opinion about a brand. Hence, leveraging PR techniques to boost brand equity becomes a natural choice for business enterprises. This is one of the reasons public relations agency initiate campaigns to improve a business’ ROI driven by crucial parameters like brand equity, company loyalty, and familiarity. The right PR strategy encompassing details (like value, capabilities, and accomplishments) is better positioned to help a company adopt a robust approach.

Understanding the ‘true’ meaning of brand equity

In the digital world, information is powerful. Every company’s future relies heavily on its brand equity, which is a collaboration of the real and perceived value of a business. Prominent PR firms believe that brand equity is a multi-faceted credibility enhancer as it helps a company to make its mark, raise investment, -attract employees and create profitable growth avenues.

Many are of the popular belief that brand equity brings tangible and intangible value to a business. It positively impacts an organisation, its products, its services, and also its bottom-line based on consumer knowledge, perceptions and the experiences associated with the brand. 

Components of brand equity

This valuable asset is an amalgamation of attributes, expectations and beliefs clients associate with a specific product/service. Top PR agencies in India feel that brand equity ensures the sustainability of a business, acts as a source of market power, ensures competitive leverage and boosts ROI.

Positive brand equity helps a company in expansions and to lower overall costs. For instance, a business that has deep, positive equity requires fewer awareness promotions. Positive brand equity helps a business navigate through macro-environmental challenges quickly and efficiently than enterprises with poor brand value.

Some of the essential ingredients of brand equity are –

  • Earnings
  • Awareness
  • Client satisfaction and brand loyalty
  • Brand association
  • Brand positioning
  • Trade relationships
  • Trademarks, patents and copyrights

Why businesses should pay attention to brand equity

Strong brand equity offers a series of real and measurable benefits. While brand equity is an intangible asset, it offers innumerable advantages to an organisation. Among them are –

  • Augmented profit marginsAugmented profit margins

Positive brand equity allows businesses to enhance their profit margins by increasing the pricing of their product/service. The perception is clear. When consumers are willing to spend extra to associate with a particular brand name, it displays their trust and willingness to maintain their long-term association with the company.

  • Driving consumer loyalty

An enterprise with positive brand equity is successful in bagging repeat business despite the presence of competitors. In simple words, a company with strong brand equity is positioned for long-term success as consumers will be driven by a deep emotional connect and loyalties towards a brand. In this regard, branding services offered by top PR agencies come in handy as they ensure long-term customer association.

  • Opportunities for expansion

Executives associated with the top PR agencies in India are of the belief that a company can successfully attain long-term growth by leveraging brand equity. Positive brand value ensures that consumers are open to the idea of trying new products. Expansion to newer markets and geographies thus become a reality. Audiences eventually start recognising your brand and help diversification products/service offerings as well.

  • Ease of negotiation

Brand equity offers companies the ability to negotiate better deals with vendors, manufacturers, and distributors. Positive brand value gives a company enhanced negotiating power and easy market classification. Marketing experts feel that brand equity is essential for a company as it can ensure a reliable clientele base.

Brand EquityWhy use PR to boost brand equity

Building brand equity leveraging PR firms’ capabilities makes sense as it is complementary to other marketing techniques. Business owners can also channelise the use of social media and online avenues and host special events to earn value in the audiences’ eyes.

However, one must not assume that once audiences reach the brand loyalty stage, they will remain loyal to the brand automatically.  The challenge for every business is to build brand equity to reach widespread loyalty and then work at successfully sustaining it in the coming years.


Still confused about how to brand your business? Share your thoughts with us. For those interested to know how they can improve brand equity, write to us and our team will resolve all your queries at the earliest.


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    February 22, 2017 Reply

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  • tejasri says:
    June 8, 2017 Reply

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    September 15, 2017 Reply

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  • Manish Nair says:
    December 8, 2017 Reply

    Nice blog. Thanks for sharing such nice & informative blog.

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