Brand equity describes what your brand is worth. This can be measured in many ways, however the best way to define it is to ask yourself:

• Does the brand provide some value to your product or service in the eyes of the consumer?
• How is it perceived by the target market – what does it stand for?
• Is it recognisable?

There are many benefits of having a brand with high equity:

• It usually means that the brand has high awareness and therefore will stand out in a competitive environment e.g. on the internet, in an advertisement in store
• If the brand has a high perceived value, then it is easier to launch new products or services. For example the Virgin brand – can essentially launch into any market easily because the brand has high brand equity / value
• A well established and valuable brand means that you don’t always have to enter into price wars in the market because the brand already has a perceived value and consumer are prepared to pay a little more. This could be because the previous experience with the brand was favourable or simply be how the brand makes a person feel, an emotional connection. (Think about when you last chose a product or service even though it wasn’t the cheaper option.)
• Establishing the right brand personality will allow you to ENGAGE with your audience – so they can relate to the brand
• Brand equity = growth = $