Advent Blog

Equity holds extraordinary value.  We consider equity in our home to be the value over and above the debt, and we can borrow against that equity. Brands have equity, too. It comes in two forms: customer (external) and owner (internal).

Customer equity in a brand allows customers to purchase with confidence.  We don’t have to know the intricacies and technical specifications of an HDTV.  We trust Sony has figured all that out for us and is offering the best choices within the category.  In this case, Sony navigated us through the myriad of choices we were offered. It interjected itself into our minds and created an association with this product, quality and relevance.  Sony’s brand regularly represents a promise or reputation of consistent delivery of quality and performance. 

However, we often forget about the value a brand holds for the company who owns it.  It’s estimated that over 70% of McDonald’s corporate value comes from its brand. And, though Kraft’s Post cereal portfolio shows declining market share, the Wall Street Journal announced today (http://www.cnbc.com/id/21636495/for/cnbc/) that Kraft is near a deal to sell these brands {Shredded Wheat, Grape Nuts and Honey Bunches of Oats (a personal favorite)} for $2.8 Billion!  This sale covers some machinery and other assets, but the real reason for that price tag is from the value of the brands. 

What are you doing to grow the value of your brand?