Layers of Brand Identification and Equity

Crocobob is one of our first two Paw Pets, which you probably already know but a re-introduction is always better than none at all. We created cartoons in order to increase the level of product identification for children and adults who care that Paw Pets are more than just a toy. But what is that really worth? How does one judge the value of having a cartoon, or company that goes beyond the obvious to create layers of brand equity? It's tough because you can't track sales or quantify results... so what do you do?

I'm sitting in a coffee shop working on Advanced Financial Management (a class for my MBA) and I can't help but think about my real company and if I'll actually use the formulas... I am now memorizing how to find over and under-applied overhead costs, overhead rates, weighted average process costing method and direct material and labor variances etc. and I CAN actually see the real world connection to my business.

These are things I WILL be calculating when my business grows, these are things I could be quantifying but will not. Why you ask? My answer is clear and it's because I am in charge of marketing and sales. Once we have figured out that our margin is good enough to keep us in business then making predictions as a young company isn't worth the time; things just change too quickly. Please don't tell my partner I said this because he lives for these things and is constantly reminding me that we aren't out of the red yet. We've been in business just over a year so this situation is not only common but if your business is doing well you are probably deeper in debt because you have placed re-orders and are spending on advertising etc. for the next big push.

Although it's difficult to see the value of "qualifyable" things, such as a logo or name and the associations attached to them, they are the soul of your business. If a company goes public you can immediately see what this soul is worth because the value of the company must now be judged as a whole, not just as a reflection or balance of assets, sales and the quantifiable. Think of Coca Cola and ask yourself if you think that their logo is worth more than all of their other assets? (I would argue it is, and so much so that it's actually a silly question)

Crocobob now has a story, written by a high school student in a contest that I set up. Her whole family went out and bought a Crocobob and so did her friends and their friends. Now, Crocobob isn't just a toy named after my business partner (which is already one layer beyond just being a product) he is a vegetarian crocodile that hangs out with a dancing pink hippo and a lost purple shark. This identity came from a young mind and now when she, her family, her friends or anyone who knows the story sees that little green toy, they will be filled with excitement and have a story to tell their friends and others that I will soon call "customers".

So always make sure that your are weighing in more than just the quantifiable and constantly think about the intangible aspects of business. If you are a chart person, make a 3 dimensional chart with 3 axis and plot points for your sales and growth but also plot the value of your brand equity, relationships and the rest of the intangibles that make businesses successful.