Safeguard Your Brand’s Value: The Key to Long-Term Business Success

When we think of iconic brands like Coca-Cola, Điện máy Chợ Lớn, Thế giới Di động, LG, Vinamilk, Unilever, or Grab, they instantly come to mind. These brands are core assets of their respective companies, and their value continues to grow as their businesses expand. But how do businesses create a brand asset of their own?

A strong brand asset is the driving force that propels a company’s value and sustains its operations. It doesn’t just boost the company’s "marginal benefit"; it also expands the brand's growth boundaries, often determining how far a company can go in the future.

Brand Equity: The Asset Every Company Must Protect

Post-pandemic, recovering sales has become a top priority for many businesses. Unfortunately, in their haste, many overlook the importance of building their brand. While companies focus on tangible assets such as real estate, equipment, or production facilities, they frequently undervalue one of the most important intangible assets—brand equity.

In today’s fast-paced market, when we mention sales, the first things that come to mind are live-streaming and promotional discounts. However, both of these methods are primarily cost-reduction tactics designed to drive short-term sales. They are not sustainable long-term strategies. Brand equity, on the other hand, is what ensures long-term profitability and business sustainability.

The chairman of Coca-Cola famously stated: “If all of Coca-Cola’s factories were burned down overnight, the company would still survive, because banks would lend them money the very next day, and Coca-Cola would be back in business.” This is all due to the immense value of Coca-Cola’s brand equity, accumulated over decades.

As David Ogilvy’s Brand Image Theory points out, "When a product's brand image is built to an exceptional level, the company will capture the largest market share with the highest profits." Losing brand equity is like watching a brand lose its value and relevance, much like a broken promise.

In the past few decades, brand equity was often underestimated, but globalization, digitalization, and increased connectivity have propelled its importance to the forefront. One example is Disney’s iconic characters Mickey and Minnie Mouse.

In early 2020, Mickey Mouse became one of the most recognizable brand assets worldwide, featured in collaborations with brands such as Maybelline, Kate Spade, Uniqlo, and Gucci. Disney’s investment in its brand equity allowed them to turn Mickey Mouse into a global sensation.

Brand Equity Elements: What Defines Strong Brand Value?

Brand equity, introduced in the marketing field during the 1980s, refers to the value a brand adds or detracts from a product or service. It consists of four key components:

1. Brand Awareness

This is how well consumers remember and recognize your brand. Strong brand awareness means that when a customer considers a product category, they instinctively think of your brand.

2. Brand Identity
Brand identity is how consumers perceive your brand in terms of functionality, reliability, quality, and aesthetics. In today’s competitive market, creating a distinctive brand identity is essential to standing out and being recognized by consumers.

3. Brand Association
Brand associations are the attributes, characteristics, and values that consumers link to your brand. These associations help differentiate your brand and drive purchase decisions.

4. Brand Loyalty
The ultimate goal of brand equity is to foster customer loyalty. Loyal customers not only reduce marketing costs but also strengthen the brand’s influence on distribution channels and help attract new customers.

Building and Growing Brand Equity: A Long-term Strategy

In today’s fast-evolving digital world, brand equity must be continually developed and maintained. But how?

1. Focus on Customer Experience
Providing consistently excellent customer experiences is key to maintaining brand leadership.

2. Emphasize Emotional Brand Value
Beyond logos and slogans, brands must fulfill emotional needs for consumers. IKEA, for example, has built its brand around sustainability, from its eco-friendly materials to its solar-powered stores.

3. Encourage Positive Brand Sentiment
When customers feel positive about a brand, they are more likely to spread the word. Apple, for instance, positioned the iPad as "the computer you never knew you needed," appealing to consumer emotions and creating positive brand sentiment.

4. Build Strong Customer Relationships
Creating strong emotional bonds with customers is the most powerful and challenging way to build brand equity. Loyal customers become brand advocates, speaking positively about your brand on social media and in their personal circles.

Conclusion

In today’s marketing-driven world, brand equity is an intangible yet invaluable asset for businesses. A strong brand leaves an indelible impression on consumers, driving both new customer acquisition and retention. Companies that invest in building and maintaining their brand equity will be well-positioned for sustained growth and success.