Cheers to Brand Equity
Before any holiday, my husband and I take a trip to the liquor store to stock up on libations. The store we go to is massive. Bottles upon bottles are neatly displayed on shelves. But there is one aisle that stands out to me and one brand within that aisle. The aisle I'm referencing is the champagne aisle, and the brand is Veuve Clicquot. Its stunning yellow label stands out from the darker palettes that the other bubbly options chose. The matching bright colored packaging increases the perceived value to anyone who lays their eyes on it. Surely, a bottle of champagne presented in such a way and exquisitely packaged is high quality and well respected. And sure enough, it is.
The Veuve Clicquot brand has done an extraordinary job of establishing brand equity. Kotler states that brand equity is "the added value endowed to products and services with consumers." He explains that the three main brand equity drivers are brand elements, marketing programs, and associations.
Here is how Veuve Clicquot has excelled at all three:
The most significant brand element is Veuve Clicquot's signature yellow color that is used on its label and packaging. By creating a recognizable product, it is easy for any consumer to recall the brand. The specific shade of yellow is timeless and appealing across numerous demographics. Additionally, each bottle comes in a beautifully designed box, which increases its perceived value while adding to the level of luxury and fashion this brand identity exudes.
Veuve Clicquot runs multiple marketing activities to help communicate the brand to its consumers. Their social media is filled with artistic and vibrant imagery. They've run ads that feature models being shot by fashion photographers, like this one (Links to an external site.). They sponsor events like the Polo Classic and other VIP events worldwide. The Veuve Clicquot brand exudes an affluent lifestyle but is not as stuffy as its competitors.
LVMH is the corporate brand that encompasses Veuve Clicquot, Dior, Hermes, Louis Vuitton, and many more prestigious brands. Being a part of this distinguished and elevated company helps consumers associate the Veuve Clicquot brand with the other brands' attributes under the LVMH umbrella.
Overall, LVMH has successfully created brand equity for its Veuve Clicquot brand. They have not only delivered a quality brand and product consistently to consumers, but they have put themselves in the position to reap the benefits of doing so. In establishing brand equity, they can increase brand loyalty, customer loyalty, and greater financial returns.
