Adding to brand value

 

Licensing

A boost in the brand value can aid in driving the revenue growth via higher consumer demand, improved gross margin by commanding a premium on prices and reducing business costs through improved supplier agreements. One method of valuing a brand is to take the market value of a company (total shares of stock outstanding multiplied by the company stock price) and subtract the value of its assets (found on the balance sheet). For instance, using this methodology, Coca-Cola ranks as one of the world's most valuable brands and consumers choose Coca-Cola because of its authenticity, refreshment, originality, consistency and taste. This implies that the more The Coca-Cola Company can improve consumer demand for its brands, the more consumers will consume their products. Needless to say, here more consumption translates into increased revenue and profit.
So, here I share my five strategies which can help improve your brand:

• Improve your understanding of what your brand really means and stands for. For instance, there are a variety of reasons why people choose to drink Coke. Many people drink Coke because of the way they are perceived by others. It has a certain "coolness" factor attached to itself. Others drink Coke because they know they will gain a certain level of social acceptance. Some drink Coke for the increase in energy it gives them. Still, a few others drink Coke for its refreshment and great taste. Thus, by keeping abreast of how consumers perceive their brands, Coke continuously meets its customer's expectations. The initiative aids and enables the Coca-Cola brand to maintain and keep intact its tremendous brand value.
• Being innovative greatly helps and helps the brand and its products to identify and meet your consumers' unknown needs. For instance, when Nintendo launched the Wii, they revolutionized the way people played video games. Nintendo created a product which consumers hadn't even dreamt of or expected. By so doing, Nintendo not only delighted avid video game players but also converted millions who never played video games into Wii players. Games like Wii Sport and Wii Fit have enhanced both skills and fitness. Nintendo has greatly helped in eliminating the 'inactive aspect' attached to video games which has been one of its biggest negative perceptions. This has in turn, permitted consumers hours of guiltless entertainment!
• Staying solution focused is always a wise step involved in the sense that if the product's features don't provide a specific benefit that the consumer is looking out for or is not intuitive; those features may end up hurting the brand. Product engineers and marketers are notorious for creating all kinds of new features for products (not to forget how hard it used to be to program a VCR). Conversely, a feature that meets a need can provide tremendous value to a brand. For instance, when the makers of Sharpie finally developed a retractable Sharpie (the feature) that could be operated with one hand and not dry out (adding to the benefits), they delighted millions of brand loyalists enhancing their already high brand scores.
• Paying attention to details can add to the customers' excitement since there is nothing more exhilarating for consumers when they buy a product that exceeds their expectations. I would love to share a personal experience here. I love driving my Acura MDX. It is an SUV that drives like a car and offers so much more. The instrument panel is simple to read and easy on the eyes making driving safe and enjoyable; the four-wheel drive keeps me moving in all types of terrain and the blue-tooth audio provides perfect communication clarity among other things. It can be undoubtedly said that more than anything it is the attention to detail (here) put into each of these features that makes me thrilled to be an Acura owner!
• A reliable brand with consistent performance greatly contributes to the brand value any day. Among a plethora of options around the world, it is McDonald's that receives millions of customers in a day's time. The fries they eat in the morning taste just like those they eat at night. The Big Mac they buy in Beijing is delivered to them in the same amount of time as the one they buy in Baton Rouge. The menu board, the restrooms and the seating area look the same in every restaurant. Consumers reward McDonald's with their patronage more than any other fast food restaurant. When consumers can trust that their brand experience will be the same every time, they will value that brand more and more over time.

To conclude, I would say, 'stay passionate'. Ok, I lied! There are six strategies for building brand value. The last strategy is to let your passion shine through in everything you do as consumers love brands whose owners are as passionate as they are. That "never rest on your laurels" attitude translates into exciting and superior products that continue to wow and delight consumers. One of the reasons people love the Apple brand so much is because of the passion expressed by Apple employees. Apple certainly enjoys going toe-to-toe with Microsoft. As a result, Mac users revel in the controversy. As a consequence, there is no other computer or mobile technology brand as loved as Apple!

Written by Pete Canalichio, Founder, Licensing Brands, Inc.