Louis Vuitton, Gucci, Chanel, Nike, Adidas, coke-cola all are the famous brand name in the today’s global market. Brand is not set up suddenly, but it is a perception formed from experiences and communication. Simultaneously, brand help distinguish products and services from other competitors and prompt the consumer to remember information related to the brand. A strong brand makes people more aware and engage in its brand image, more satisfy with brand product quality and willingness to pay a premium price for it. Therefore, organization could earn more profit from a strong brand product, and also contain the customer and gaining trust and loyalty from them.
Consumer’s perception for a brand is important for consumer to differentiate the brand product. For consumer, brand is a symbol of high class; it is signal of high quality and stands for high percentage of satisfaction. However, a brand has their own target audience and position in market, which it will promote different images for consumer to recognize different brands. For example, if a consumer wants to choose a luxury, comfortable and safe car, consumer will prefer Mercedes-Benz than Toyota. Because for consumer’s perception, they know that Mercedes-Benz is famous luxury car brand name and Toyota is a well-know common car brand name. Moreover, consumers’ perception is not only making up by the brand advertising or brand promotion, but also about learning from experiences when consumer using the brand products or heard the information from friends or family member. Learning from experience of using brand product is communicated to the brand, and then it would make consumers have a deep cognition and awareness of the brand. Therefore, the effect of perceived quality impacts brand equity indirectly through satisfaction is supported and brand helps communicate the image of product and assists the differentiation of the product in the mind of consumers.
Customers view a brand as an important part of the product or service. Once dominant only in the minds of consumers, brands are increasingly taking over the minds of all stakeholders. As this change occurs, brands are becoming the company’s most critical source of distinctiveness and value creation. Therefore, a brand is an important asset of value to the organizations and it is a marketing strategy for organizations to charge higher prices, also it is a life-saving straw for organizations to survey in intense market competition.
A successful brand has high brand equity. Brand equity is an intangible asset that depends on association made by the consumer. High brand equity can be used as a platform to launch related product and increase the consumer’s attitude strength toward the product associated with the brand. In addition, a brand with strong brand equity is a very valuable asset, it’s estimating the total financial valve, customers’ perception and brand image of a brand. Good examples of organisations with strong brand equity is Apple, whose corporate logos is recognized worldwide and it’s brand value is estimated to be almost US$154 billion in 2016 and it’s one of the highest brand value today. This illustrate that the real value of a high brand equity is it’s captured consumer preference and built strong and profitable customer relationship by providing a high quality product and good performance to customers. Thus, profitable growth, value of a customer, the concept of managing brands as corporate assets, measurement of a brand loyalty, brand value and the building for long-term as their key to success.
Strong brand equity provides a company with many competitive advantages and helps organizations to facilitate a more predictable income stream. A powerful and famous brand always acquaintance itself with different classes of people in the society, especially enjoy a high level of consumer awareness and loyalty. In order to capture consumer loyalty for a brand, organizations launch lines and brand extensions to attract consumer. Such as Coca-Cola, it one of the main rival is Pepsi, another larger soft drink corporation in the global market. In order to retaining it’s owner consumers and stabilize it’s earning from product, Coca-Cola uses its well-know brand to introduce new varieties such as Vanilla Coke, Lemon Coke, Zero Coke to defense against fierce brand, price and quality competition. Furthermore, brand extensions are not only obtained more consumers’ awareness and attraction, but also assisting organizations to increase it’s profit. Because launching new products and services under (or linked to) an existing brand, if done properly, significantly decreases perceived customer risk and increases product/service acceptance, all at a fraction of the cost that it would have taken to launch a new brand. At the same time, extending the brand’s reach and relevance to new consumers is also more profitable for an organization. Therefore, high brand equity can more easily to face it’s competitor in market by launching line and brand extension, also the organizations can gain more profit and consumers from developing new product.
As stated previously, a brand is a promise by identifying and authenticating a product or service it delivers a pledge of satisfaction and quality; brand is a set of assets linked to a brand’s name and symbol that adds to the value provided by a product or service; brand is a collection of perception in the mind of the consumer. However, a strong brand attracts loyal customers, who repeatedly purchase the same brand, and it can maximize the effectiveness of marketing activities; a strong brand increases corporate profits over the long term, enhancing the overall corporate value. Thereby, strong brand builds a mutually supportive bridge for consumer and organization.