The strong brands value and the brand equity foundation are based upon two main performances: the tangible and the intangible one. Let us see more clearly what it means.
Researches show that brands with a high level of ROI and profits focus both: on their tangible and their intangible assets, and tangible and intangible aspects of their relationships with consumers. Brands with these two aspects present are much stronger than the brands with only one of them present. The ratings of the brands with the brand equity foundation, laid on both of those aspects, are several points higher than those, missing either one of them. That is a considerable difference. Let us take a closer look at each of the value of the brand aspects.
1. Let us start with the intangible one. Many companies produce good and even unique products and they believe that it is enough for reaching a success in business. However, today, when the competition between manufacturers of the same kind of products arrives at a very high level, manufacturing high quality products do not suffice any more for attaining a financial success and winning the market. Consumers are lost in the variety of choice the market offers them. They look for some sort of a guide and your intangible brand asset can satisfy well that need. If you become emotional about your products and lay your brand equity foundation upon some psychological values, it would help you create a closer bond with your customers. Your goal is to become special for your consumers. You can take a unique spot in their hearts and minds by offering them more than products. When people buy a Volvo, they buy Safety. When they purchase Mercedes, they purchase a high social status. When they drink Pepsi, they become a part of a New generation. With Nike, people become stronger and more able to cope with the world's challenges. These companies sell more than products; they sell emotions and psychological values. They sell what people really desire to buy and what people long for. They sell dreams, but only those, which come true!
2. That is where the tangible aspect comes in. There is no use in selling dreams that will not come true, when people start using your products. There is enough disappointment in the world and people will not pay for getting another one. If you make a brand proposition, then you have to match it with your products' quality and advantages. The brand equity foundation has to be laid upon the ability of your products to match up to the main brand promise you give to your customers. Your customers have to have a first hand experience with your products and not be disappointed about them. Then, the value of the brand will increase for them, and you will be able to build a special and unique bond and win loyalty of your consumers. Otherwise, you will not only lose these customers, you will gain a risk of ruining your business, since there is a chance for them to become your loyal critics.
As it was mentioned in the beginning, the companies with these two tangible and intangible aspects, laid in their brand equity foundation, gain more success than those, with only one of them present. Focusing on both of these aspects makes companies more stable and able to survive in the present day business environment.