What is Brand Equity & Creating Equity through Package Design
Brand is a valuable asset, which must be carefully created and nurtured
At our Vancouver Package Design Agency, we help clients with branding strategies that create brand equity for your product
Brand equity is a value premium that a company generates from a product with a recognizable name when compared to a generic equivalent. At our Vancouver Package Design Agency, we help clients with branding strategies that will create brand equity for their products.
When your brand has positive brand equity, customers willingly pay a high price for your product, even though they could get the same thing from a competitor for less. Customers, in effect, pay a price premium to do business with you because they come to know and like you!
Brand Equity & Packaging Design
Before a customer experiences your product, their first impression of your brand is of your packaging. Brand packaging is the physical wrapping or pouch that holds your product and represents your brand. This is a pivotal interaction for establishing a connection with your customer.
Why is brand equity important?
The significance of customer-based brand equity is undeniable, as it can result in a multitude of favourable outcomes, such as:
- Increased market share
- Reduced customer attrition
- Decreased price sensitivity
- Enhanced brand recognition
- Boosted sales
- Elevated profit margins
- Captured market share from competitors
- Streamlined entry into new markets.
Why does Brand Equity Matter
Brand equity has three basic components: perception, negative or positive effects, and the resulting value. Brand is a valuable asset in any company, which must be carefully created and nurtured.
Perception, which includes both knowledge and experience with a brand and its products, builds brand equity. When you hear a name like “Patagonia” or see a logo like the Tim Hortons, you instantly recognize it —This because of consistent branding and marketing strategies.
The perception that a consumer segment holds about a brand directly results in either positive or negative effects. If the brand equity is positive, the company, its products, and its financials can benefit. If the brand equity is negative, the brand and its revenues will suffer.
Our Branding Agency is skilled at influencing customer perceptions. We help our clients to understand that your Brand is your reputation, and it’s what customers say about you when you’re not around. It’s imperative to put your best foot forward in helping people understand your company, your product and your brand. Because, correct or not; it doesn’t matter. Perception is reality.
Achieving an attractive perception isn’t easy. The best strategy is to be radically yourself, and consistent in your message; thoughtful in designing every touchpoint, communication and experience along the way.
The most valuable customers aren’t just aware of your name and logo; they know your visions, values, and company purpose too.
Brand recognition is a minimal level of brand awareness. Customers might recognize your brand, but not be aware of who you are or even what you offer.
Brand recall involves customers naming the brand. Associated with a strong brand position, in this quadrant you have achieved top-of-mind awareness.
Top of Mind Brand
The most desirable position would be a brand that is the only one recalled for a high percentage of shoppers.