Establishing Brand Equity


With a powerful logo, customers will be able to recognize a company and the products and services offered without seeing the name of the business or an advertisement of their most popular products. Branding is everything; it’s the way that a consumer perceives your company and what you can offer them, allowing your brand to drive your business forward. This is known as brand equity and it all begins with an awesome logo.

For example, the Golden Arches of McDonald’s, is a logo that has come to define the multi-million dollar restaurant chain, and increase its brand equity. Whether travelling near or far, consumers who see the Golden Arches know that a McDonald’s is just around the corner and that they can purchase a “Happy Meal”, “Big Mac” or their world famous fries, without seeing the physical name, building, or product being advertised.

The Golden Arches were introduced in 1962 after McDonald’s founders decided to create an eye-catching logo that would help people locate and recognize their restaurants. The Golden Arches, modelled after the “M” in McDonald’s, was originally part of the restaurant design but grew quickly in popularity, resulting in the Golden Arches becoming more recognizable than the chain, or the food that it serves. Whenever someone sees McDonald’s iconic “M,” they know exactly what it stands for.

Their logo also contributes to what is known as “McDonaldization,” a term used to describe how customers, no matter where they live, can receive their favourite fast food meal of the same quality. Consumers can rely on the brand, because McDonald's has successfully established brand equity.  

Consumers are also more willing to pay more for a branded product. Between two products, the one that has a reputable logo on it will often sell better than one from a no-name company, even if the price is higher. Customers see a branded product as more sustainable, trustworthy, known and of a higher quality.

In order to establish brand equity, develop a logo that best represents your business. Your logo should be unique, creative and eye-catching. Once you have developed a memorable logo, it’s time to market your brand. 

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