The Importance Of Brand Equity

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Brand equity is defined through five different components: brand loyalty, familiarity and recognition of a brand name and/or symbols, perceived quality of products under the brand name, associations including how the brand is positioned relative to competitors, and other brand assets like control of distribution outlets (Aaker 1991, p 3). To elaborate on brand loyalty, it includes the ability to retain satisfied customers (Aaker 1991, p 3). Brand equity also is composed of the cultural relations a brand establishes with its potential or actual customers (Sinclair 2008, p 219). Within this, brands have the option of going global, or retaining a national stance. Brands that remain on the national level have interests in retaining national unity and belonging, and the nation almost becomes the brand, or presents itself in that way (Sinclair 2008, 220).
Vegemite succeeded with this: the brand is almost synonymous with the country of Australia. Additionally, the company has followed Aaker’s form of brand equity almost exactly. Because of the fact Vegemite has been around for 74 years, Australia’s population has become accustomed to the brand (Keinan & Farrelly & Beverland 2012, p 5). People are loyal to it, and continue to come back to the brand as it currently has about 80% household penetration (Keinan & Farrelly & Beverland 2012, p 2). With Aaker’s second part of brand equity, the familiarity and recognition of the brand name is something that Vegemite has conquered. It is

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