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The distinction between equity and value becomes clear if we imagine two firms bidding to purchase a brand from a third firm.
Likewise, the value of the brand to a particular bidder may increase (decrease) if the new owner is (not) able to leverage existing brand equity.Starting with marketplace activity, individual-level outcomes (eg purchases) are aggregated up to a brand level and these brand-level outcomes directly impact the value of the brand.Ultimately, the value of the brand impacts shareholder value.We suggest that it is possible for a pioneering brand that has established a new category to build brand equity during the time when competitors do not yet exist. Introduced in October 2001, we suggest that its continued leadership more than five years after introduction is due to the positive equity built during the time before it faced competition.Likewise, it should also be possible for a brand that has a legal monopoly and faces no competition, to build brand equity, just as it should be possible for a store brand or ‘value’ brand to build equity without the manifestation of large sales numbers or price premiums. A small sample of Ph D students at a large Midwestern US university all agreed that Rolex has brand equity.Thus, we suggest it is not possible for a brand to have no brand equity.Because it is hard to imagine a brand void of any associations, some level of brand equity, even if small, must always exist; however, this equity is established by the existence of associations in memory, not by outcomes such as purchase.Because Quaker Oats was unable to increase supermarket and drug store sales enough to compensate for lost convenience and gas station sales, Quaker was forced to sell Snapple for a mere 0m only three years later.In this case, Snapple's brand value decreased enormously over the three years that Quaker Oats owned it, but this decrease may have had nothing to do with its brand equity, which could have stayed the same over this time period or even increased due to its new exposure in supermarkets and drug stores.presents a simplified version of the process a firm might follow to value a brand.Basically, the valuation process is approached from the perspective of the firm and involves ‘following the money’ as it flows from the marketplace into the firm and then tracking how this activity impacts shareholder value.