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The power of #brandequity
In 2000, #Bournvita underwent a transformation in its marketing mix.
Before then, Brand equity ratings placed it lower than #Milo although Bournvita was leader by sales volume & revenue. As a result, Milo’s retail price commanded a premium to Bournvita’s. We discovered that when we attempted to sell at par, Bournvita sales would drop, & that optimal sales happened at about 10% lower price. This wasn’t satisfactory for us as market leader as it meant we were losing money per sales made, so an objective of the relaunch was to improve brand equity in order to price at least at par with Milo.
Price upon relaunch was moved up to 5% closer to Milo as we still didn’t feel confident to drive price parity.
Relaunch went well & brand equity check after 6 months indicated that Bournvita’s perception had significantly improved & stronger than Milo. This gave confidence to price at par with Milo & further price increase was effected. Despite this, sales & market share continued to increase with higher revenues as a result of the higher prices. This was the power of brand equity at play. This applies to human brands as well, and shall be the focus on the soon-to-launch online course on building a stronger #personalbrand. #lucent
Author – Lampe Omoyele