Brand Equity

Brand equity is the incremental value that a brand derives from the thoughts and feelings that it evokes.

Prior to its launch in 1985, 190,000 taste tests undisputedly confirmed that consumers preferred the New Coke formulation. What mattered, however, was the extraordinary affinity for Coca-Cola, the brand. This state of mind that aroused the outpouring of affection for the brand is its source of equity.

Ultimately, as depicted in Exhibit 2.0, factors such as awareness, perceptions, imagery and attitudes are the key drivers of brand equity.