Brand value is the extra or added value of a company or product on its actual price tag.
This extra value differentiates a branded product from an unbranded product, for which people are ready to pay the price.
P.S. We will use the terms ‘brand value’ and ‘brand equity’ interchangeably throughout the article, as they are closely related to each other.
In business language – Brand value is the net present value of future cash flows of a branded product minus (-) net present value of future cash flows from its unbranded counterpart.
BRAND EQUITY = Net value of total outstanding shares of the company in the stock market – Net assets
Meaning of brand value for general public or consumers: Consumers have strong faith over branded products than unbranded ones. They happily pay the extra money for the added value they see in branded products.
People even feel proud and love to flaunt their branded products and accessories to show their status in society. And this trend is quite prevalent in the younger generation (20 to 40 yrs old) who drive the country’s (world) economy.
How to Improve Brand Value
1. Keep it simple
Make your products or services as simple, and as user-friendly as possible.
Take for example – Apple makes a few simple yet feature rich products that are extremely user-friendly. That’s the reason every person on the earth wants to buy a piece of Apple product, be it an iPad or an iPhone.
2. Quality product
This is the backbone of every successful business, so also of every successful brand.
Buyers seek quality products. No matter whether it’s an online software or an offline physical product, it should be of good quality and durability. Why people buy Reebok or Nike shoes? Simple – these brands offer quality.
Your aim should not only maintain the present quality but also augment it with every passing month and years. High-quality products of a company increase brand value.
3. Added value
This is the reason public ready to pay the premium price for branded products and services.
Consumers see the extra or added value in branded products than their counterparts – non-branded ones. So, offer your consumers extra value than the price tag of the commodities.
To improve the brand value of a product, offering added value, over and above the price to consumers is most important.
4. Best customer care
Both pre-sale and after-sale services with better communication between buyers and sellers increase the brand value of a company.
Good customer care instills faith in your brand and products, which inspires them to buy your products again and again. Your customer care executives and salespersons should be cordial, transparent and good communication skills.
To implement better customer care, accurate survey and feedback, along with regular training of sales executives and personnel are of utmost importance.
5. Wide publicity
Advertisements and campaigns in both electronic and non-electronic media make a good image inside the consumers’ brains.
Well executed Ad campaigns improve the brand value and help consumers to recall the brand while buying products. To create better brand equity, a simple yet easy to remember logo also plays an important role.
| Read More: How To Improve Brand Value for Better Business
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