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Pick one brand and attempt to identify its source of Brand Equity.

Brand Equity is a brands power derived from its well known goodwill and name recognition that it had

earned over a certain time period which translate into higher sales volume and higher profit margin

against its competitors.

Some marketing researchers have concluded that brands are one of the most valuable assets a company

has, as brand equity is one of the factors which can increase the financial value of a brand. Elements

that can be included in the valuation of brand equity include changing market share, profit margins,

consumer recognition of logos and other visual elements, brand language associations made by

consumers, consumers' perceptions of quality and other relevant brand values. Brand equity is created

through strategic investments in communication and market education and appreciates

through economic growth in profit margins, market share, prestige value, and critical associations.

Generally, these strategic investments appreciate over time to deliver a return on investment. This is

directly related to marketing ROI.

For Example, The additional money that consumers are willing to spend to buy a pair of Nike shoes

rather than the ordinary pair of Chinese show is an example of brand equity.

The situation when brand equity is important is when a company wants to expand its product line. If the

brand's equity is positive, the company can increase the likelihood that customers will buy its new

product by associating the new product with an existing, successful brand. For example, if Apple comes

up with a new device, they would likely keep it under the same brand name, rather than inventing a new

brand. The positive associations customers already have with Apple would make the new product more

tempting than if the device had an unfamiliar brand name.

http://en.wikipedia.org/wiki/Visual_brand_languagehttp://en.wikipedia.org/wiki/Brand_languagehttp://en.wikipedia.org/wiki/Strategichttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Profit_marginhttp://en.wikipedia.org/wiki/Market_sharehttp://en.wiktionary.org/wiki/prestigehttp://en.wikipedia.org/wiki/Association_(psychology)http://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Return_on_investmenthttp://en.wikipedia.org/wiki/Marketing_ROIhttp://en.wikipedia.org/wiki/Marketing_ROIhttp://en.wikipedia.org/wiki/Return_on_investmenthttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Association_(psychology)http://en.wiktionary.org/wiki/prestigehttp://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/Profit_marginhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Strategichttp://en.wikipedia.org/wiki/Brand_languagehttp://en.wikipedia.org/wiki/Visual_brand_language

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Nike - Brand Equity:

Since its creation in 1971 in the USA, the Nike swoosh is still one of the world's most valuable brand

despite of the severe crises. Ranked at 26 on the list of Interbrand's "Best Global Brands" in 2012 with a

brand value at $15.1 billion dollars. Nike is the best among sports brand, they left the big competitors,

Adidas and Puma far behind (Interbrand report, 2012).

Nike Logo

About Nike

The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Phil

Knight, and officially became Nike, Inc. on May 30, 1978. The company takes its name from NIKE the

Greek goddess of victory. Nike markets its products under its own brand, as well as several other sister

brands such as Umbro and Converse.Nike sponsors many high-profile athletes and sports teams aroundthe world, with the highly recognized trademarks of"Just Do It" and the Swoosh logo. Nike offers a wide

product portfolio of sport-inspired lifestyle apparel, accessories and equipment. Nike provides athletic

footwear for athletes all over the world. The company also offers special shoes and equipments for

sports as Football, Cricket, Basketball, and Golf. Such diverse product extensions enable the company to

satisfy the varied athletic needs of its customers.

Nike and its rivals

Sportswear has been a thriving market in recent years. Nike has experienced intense competition from

the moment its first sporting shoes being introduced to their customers. Globally, this market is

dominated by two of the giants Nike and German based company Adidas. Puma falls close third in this

prolific list.

Adidas was truly the first sports company, it was founded in 1920. In the 21st century, the brand has

steadily affirmed its position and seems on rebirth. Adidas brand increased its value at 9%, ranked 60th

on the list of Best Global Brands 2012 and continued to take the second largest sporting goods

manufactures behind Nike (Interbrand, 2012)

http://en.wikipedia.org/wiki/Bill_Bowermanhttp://en.wikipedia.org/wiki/Phil_Knighthttp://en.wikipedia.org/wiki/Phil_Knighthttp://en.wikipedia.org/wiki/Just_Do_It_(Nike)http://en.wikipedia.org/wiki/Swooshhttp://en.wikipedia.org/wiki/Swooshhttp://en.wikipedia.org/wiki/Just_Do_It_(Nike)http://en.wikipedia.org/wiki/Phil_Knighthttp://en.wikipedia.org/wiki/Phil_Knighthttp://en.wikipedia.org/wiki/Bill_Bowerman

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Functional and emotional features of the brand

Since Nike was set up by someone who has "a deep passion for athletics and running", it should come

no surprise that product is important. Products that is comfortable, "authentic, functionally innovative

and uniquely designed. The innovative technology is considered as one of the defining dimensions of

Nike's brand identity and corporate culture.

Functional benefit is the fundamental and traditional features to communicate with customers.

However, if Nike just provided high quality running shoes to enhance athletic performance", Nike would

not be strong brands. Big brands need to be beyond the purely functional ties. They should create a

more strong emotional attachment with core consumers because "emotional benefits add richness and

depth to the brand and the experience of owning and using the brand"

Story- I still remember a pair of Nike shoes in my show rack when I was merely 3 or 4 years old. I fell in

love with that white beauty and a black swoosh. I generally used to get a swoosh when I was good in my

class and I used to resemble the goodness with that logo. I thought getting swoosh was definitely better

in my class room and teachers gave us rewards. Wearing something with swoosh is definitely the best.

Believe me or not I still have that pair of worn-out Nike shoes with me.

Nike must have understood the recipe well. The "Just do It" campaign in the early 1990s would be a

perfect example. Losing ground to archrival Reebok which was quick initiative on designing "style",

"fashion" aerobics shoes in 1980s, Nike responded dramatically and forcefully by launching the "Just do

it" campaign which was mainly focused on person wearing on products instead of product itself.

Brand Awareness

Brand awareness is the first and crucial stage of consumer's preference. It refers to the strength of abrand's presence in the consumers' mind. Nike has been successful in building awareness. The "Swoosh"

symbol has been appeared everywhere, on shoes, hats, billboards and football balls across the globe.

True to be told, the recognition of the 'swoosh' is extremely high. As it was my recall of Nike.

Sponsorships and advertising are two channels that Nike has applied to enhance its brand image and

awareness. Among these strategies, athlete endorsements could be considered as the most significant

success of Nike brand.

Nike has been invested millions of dollars to associate their brand names with easily recognizable

athletes with the aim of brand image building. Athletes at the top of their respective sport such as Roger

Federrer, Rafel Nadal, Tiger Woods, Lebrone James, Christiano Ronaldo are well liked and respected by

members of the brand's target audience are chosen as endorsers to associate the Nike brand.

Though Adidas was an older brand than Nike, due to American influence in our part of the world than of

the Germans, with Hollywood movies playing in our TV Sets in early 90s, Nike got so called free

promotion in our market. I remember Adidas coming into picture only during late 90s and early 2000s

with growing sporting events. Thats why my Top of the Mind recall for a sporting wear is always Nike.

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Being an American Brand, Nike was always aggressive towards to its marketing. The global factor which

they have targeted is paying off. They spend millions of dollar to promote their swoosh. Nike was always

with Tennis, Golf, Basketball, Baseball and Football. They were a late entry in Cricket which is a huge

sport in this part of the world. Reebok, Puma and Adidas were already enjoying the market share of

cricket when Nike came in. Nike had a clear cut approach and snapped in Indian Cricket teams Official

Kit manufacturer and Bang they striked Gold. Indians are the biggest cricket fanatic in the world and

they have targeted them.

With that Nike also have a big contract signed with AS Roma. My Favorite Football team from Rome,

Italy. I am very much excited with this deal taken place as a Nike well-wisher; this deal has certainly

upgraded its brand equity on me.

References:

http://en.wikipedia.org/wiki/Brand_equity

http://www.investopedia.com/terms/b/brandequity.asp

http://www.ukessays.co.uk/essays/marketing/nike-brand-equity.php#ixzz2XraE4Kro

http://en.wikipedia.org/wiki/Brand_equityhttp://en.wikipedia.org/wiki/Brand_equityhttp://www.investopedia.com/terms/b/brandequity.asphttp://www.investopedia.com/terms/b/brandequity.asphttp://www.ukessays.co.uk/essays/marketing/nike-brand-equity.php#ixzz2XraE4Krohttp://www.ukessays.co.uk/essays/marketing/nike-brand-equity.php#ixzz2XraE4Krohttp://www.ukessays.co.uk/essays/marketing/nike-brand-equity.php#ixzz2XraE4Krohttp://www.investopedia.com/terms/b/brandequity.asphttp://en.wikipedia.org/wiki/Brand_equity