A brand is an asset just like a factory and plant machinery. A brand does not become an asset as soon as it is it is born. It is ‘ built’ ‘ up over a period of time. Brand equity is the result of the process of brand building. Aaker calls brand equity a set of assets associated with the brand, which provide value to its customers. In short, brand equity  represents the value inherent  in a well-known brand name. A strong brand equity means easy acceptance of new products, willingness to pay more for the brand, preferred shelf-space. A strong brand equity gives financial clout to the company. Brand with strong equity can be bought and sold.

Which assets lend the brand its equity ? These are brand awareness, brand loyalty, perceived quality of the brand and the brand associations. These four set of assets are created and enhanced by the brand managers to built brand equity. Brands are developed over a period of time – they are not made in a day. The process of brand building is continuous. Brand building process starts with product development, positioning and launch, brand development, brand association and brand extension – brand improvement.