Brand equity as a strategic advantage

Brand equity is just one of the many goals businesses have chosen to build markets. Other successful strategic goals have included dominant distribution, competitive pricing, features or benefits. This was very much the same throughout the 1990s, a time of incredible double-digit growth fostered by strong economic times. While some companies with strong brands experienced outstanding growth and success, many grew despite the absence of a strong brand.

There are, however, a number of factors that have evolved over the past several decades, which, in combination, are bringing into question a company’s ability to remain competitive in the coming years without a strong brand. Improvements in manufacturing, distribution, speed to market, category clutter, consumer access to information and misinformation, price erosion, entrepreneurial spirit, expansions, consolidations and others have substantially leveled the competitive field. While it is unlikely for an upstart to dislodge the category leader, it is now possible for virtually anyone who wants to and has the wherewithal to gain distribution, beat your price and match or better your attributes and benefits, to take away your customers.

In the absence of upmarket brand equity, the thing you are trying to sell is likely to become a commodity and your competitiveness adversely and permanently diminished under this scenario.