Insights

Stand By Your Brand
Report

Stand By Your Brand

Battered for years in the business press, and suffering declining store sales, Sears continues to anchor malls across America.

In what seems like a few short years, Samsung has evolved from a value buy in home electronics to a company known for driving innovation throughout the home and across screens.

What secret do these very different entities have in common? Each of these companies is managing two critical assets—brand equity and corporate reputation—to support overall company business goals. A strong branded house built over years buy some time for corporate reinvention, or it can raise a challenger company to leadership status as the product portfolio gains critical mass; a house of brands can allow individual product brands to continue on a successful path, while defending corporate reputation from a relentless press.

In our connected world, one corporate misstep can go viral and result in adverse impacts on products linked to the company through masterbranding. The inverse is also true: As challenger companies bet their reputation on their product lines through masterbranding, they can quickly develop a reputation for quality, vision and innovation, not just among consumers, but among various stakeholders that have a say in their success. Thus, it’s critical to understand the mutual impact of corporate reputation and brand equity across industries.

The Relationship Between Corporate Reputation
and Brand Equity

The alignment between the EquiTrend and Reputation Quotient scores is quite close among consumers, but it also suggests that the relationship differs by industry.

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Stand By Your Brand

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