Comparing brand equity valuation with in-market performance

Date of publication: September 14, 2003

Abstract:

The paper examines the relationship between brand equity and in-market performance.A comparison of brand equity and market performance shows that mostly brand equity is a strong indicator of market share, suggesting that brand equity building strategies need to be adopted to drive future market share. However there are cases where brand equity does not correlate with market share and understanding the reasons driving the discrepancy becomes critical in managing the brand's under-utilized potential. In these cases, there is frequently a marketing fundamental other than brand equity that can be addressed to help build market share, which can be distribution, pricing, targeting or some other key marketing element.

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