One of the best examples of brand equity is in the soft drink industry. Without a brand name and all of the marketing dollars that have gone into it, Coca-Cola would be nothing more than flavored water. 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.