This added value can be used to your company's advantage to charge price premiums, lower marketing costs and offer greater opportunities for customer purchase. One of the best examples of Brand Equity is in the soft drink industry. Due to the company's long-term marketing efforts and protection, enhancement and nurturing of their brand name, Coke is one of the most recognizable brands in the world. If someone suddenly took their brand name and Brand Equity away from them, Coke would lose hundreds of millions , if not billions, of dollars. This includes lost sales, lost marketing dollars and lost promotions, additional marketing costs to promote a new brand, and significantly lower awareness and trial rates for their new brand.
Brand name can give comfort to buyers unsure of their decision by reducing their perceived risk.
Maintain higher awareness of your products. Use as leverage when introducing new products. Often interpreted as an indicator of quality. High Brand Equity makes sure your products are included in most consumers consideration set. Your brand can be linked to a quality image that buyers want to be associated with.