Brand Equity

Brand loyalty

Coca-Cola’s coke product is one of the global brands that have had high consumer loyalty for many years. Brand loyalty is the repeat purchases of a particular brand by consumers based on the perception of high quality and favorable service. Coke’s brand loyalty is quite strong; over time, the company has changed its cans, but consumers have never run away from it but rather remained loyal (The News World Report, 2022). Coca-Cola Company achieved and maintained Coke’s brand loyalty by maintaining same pricing for about 70 years amid the increasing demand.

Coca-Cola Company maintained a cost leadership strategy in a competitive beverage market and managed to keep the prices of its drinks down throughout a generation, thus earning consumers’ loyalty (The News World Report, 2022). According to the TradingPlatforms.com analysis, Coca-Cola has 93.3% of the brand strength index score, making it America’s strongest brand. (Palmquist, 2016). The brand strength index is calculated from brand loyalty by consumer perception and preferences. Coca-Cola’s brand loyalty is undeniable because of the popularity of its Coke beverage among consumers.

Brand awareness

Brand awareness is the number of people who know the product and can recognize it amongst many competitors’ products. Coca-Cola’s Coke product has the highest brand awareness across the world. It is estimated that about 7.1 billion people globally would recognize Coca-Cola’s logo when they see it; this is about 94% of the global population (MMA, 2015). Coca-Cola managed to build Coke’s massive brand awareness through aggressive advertising using multiple media such as television, radio, magazines, and online (Finkle, 2018). Coke’s popularity was decreasing among the millennials. However, the company countered the decrease by launching new campaigns to create more awareness among the younger generations (MMA, 2015). To reconnect with the millennials, it came up with the “Share a Coke” brand awareness campaign to captivate their emotions so they can consume it more.

References

Finkle, C. (2018). What is Brand Awareness? Retrieved from https://brandmarketingblog.com/articles/branding-definitions/what-is-brand-awareness/

MMA. (2015). Coca-Cola Roja: Coca-Cola “Share a Coke” Brand Awareness. Retrieved from https://www.mmaglobal.com/case-study-hub/case_studies/view/36603

Palmquist, M. (2016). What Can the Cola Wars Teach Us about Brand Loyalty? Retrieved from  https://www.strategy-business.com/blog/What-Can-the-Cola-Wars-Teach-Us-about-Brand-Loyalty

The News World Report. (2022). Coca-Cola is the Strongest Brand in the US, With a Brand Strength of 93.3%. Retrieved from https://www.thenewworldreport.com/coca-cola-is-the-strongest-brand-in-the-

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Respond to the following in a minimum of 175 words:

Brand Equity

Consider a product you are familiar with.
Discuss its brand equity in at least 2 of the following areas: brand awareness, brand loyalty, perceived quality, brand associations, or brand assets.