Brand value or brand equity is one of the most common terms in the entrepreneurial landscape. This term forms the core of your business venture. It also defines who you are, what you stand for, and how your customers perceive you. With your business’s identity at stake, the term brand value is certainly worth understanding before you jump on the entrepreneurial bandwagon.
Also called brand equity, brand value can work wonders. It can help you understand your entrepreneurial venture at a foundational level and realize your potential worth.
This knowledge is precious since it helps all your partners and other stakeholders focus. But how can you measure brand value?
Examples of brand value measures
The whole concept sounds abstract – so how do you know what the brand value of your entrepreneurial initiative is? There are many indicators, from the count and quality of your loyal customers to your employee retention rates. Brand equity swings from a huge positive to a negative with every positive or negative impression your brand creates in the market. Nestle’s Maggi is a spectacular example. The moment concerns arose about the chemical composition of Maggi in 2015, the sales of the ever-loved 2-minute miracle dropped disastrously. Its brand value dipped beyond imagination. The dwindling sales and customer feedbacks were proof. However, with their impressive marketing campaigns that focused on safety, trust, and years of association, the Maggi anthem, brought them back to almost their earlier status. Their brand equity improved – as was obvious from their customers’ regained trust.
Brand value refers to the current or the possibility of the future values a brand can bring to an entrepreneurial venture. It’s not just about the sales numbers, it’s equally about the brand’s value in the market and about how well-known and well-appreciated your brand is. As a first-time entrepreneur, getting a clear grasp of this topic can be a little tough. Hence look for trustworthy business mentors who can guide you through this exercise of defining your core brand values.