However, when asked about their favourite beverage, over half the respondents chose Coca-Cola, even though it may not have been their choice in the test. Indeed, many respondents who chose the home brand cola as their favourite still indicated that they would purchase Coca-Cola over the cheaper brand in the future. The difference between home brand cola and Coca-Cola in the consumers mind?
Brand value is the holy grail that branding agencies all strive to create for their clients. According to business dictionaries, it is “the premium that accrues to a brand from customers who are willing to pay extra for it.” But what does this mean?
Think of the word Apple in a corporate context. What do you visualise?
If so, these are all factors that add to the brand’s value. It gives the brand credibility, and the ability to charge higher prices than brands that have not built the same amount of brand capital. Every brand agency needs to understand brand value in order to effectively position its client’s brands in a way that resonates with the target customer base.
In his latest book, Donald Trump assesses his brand value to be worth $3 billion 2. This figure, arrived at by a leading branding agency, is quite different to Forbes magazine's analysis which sits his brand value at around $200 million. This obviously is a huge discrepancy – how can two well respected brand agency titans get such a different figure? The main reason is the intangibility and subjectivity of brand value.
It can be difficult for a branding agency to put a solid, tangible figure on brand value without a huge amount of research and tests with consumers. Some ways a brand agency can determine brand value is:
Brand value is created through close analysis of the target market and creation of a synergistic brand identity. For more information, contact Charles Elena Design on (03) 9663 5433.