How to enhance brand equity value?
Covid 19 pandemic and social distancing have radically changed the consumer purchasing behaviour. This is having a devastating impact on the survivability of many businesses. Thus, customer retention becomes a critical factor in the post-pandemic recovery.
Brand essence of a product/service is the core of brand equity which draws customer stickiness, like bees to honey. Brand equity value is determined by four key elements in the brand pyramid:
- Features & attributes
- Rational benefits
- Emotional benefits
- Brand/product personality
Brand essence, or Emotional Selling Proposition (ESP) is the output of the brand pyramid that measures the emotional connection with consumers. For example, China’s best-selling chicken essence brand, Tai Tai Le, became synonymous with chicken essence after revamping its ESP. It was subsequently acquired by Nestlé at an enormous multiple. The impact of branding on equity value is more than demonstrated by the legendary Apple and Google at six times their respect revenue, while the equity value of Amazon exceeds 2.5 times its revenue. The same leveraging also applies to Chinese brand such as LKK Infinitus with its equity value exceeding two-folds of its revenue.
