If you think that creating your personal brand is not all that important, think again.  Brand equity is a term that describes the financial value of a brand, the value that it contributes to the bottom line profit of a business.  Brand equity in your luxury real estate marketing practice is the added value in revenue that your brand generates based on the degree to which you achieve top-of-mind status among potential referral sources.  The best way to grow brand equity and achieve top-of-mind status is to “own” or dominate a specific category or niche within your luxury marketplace. 

Is the taste of Coca Cola, the formula of ingredients added to sugar-sweetened sparkling water, really that much better and more valuable than Pepsi or other colas? The brand value of Coke is in the top-of-mind status that Coke enjoys among consumers. According to Business Week’s 2009 Top 100 Global Brands, Coca Cola is number one most highly valued brand in the world.

“Owning” an idea or category of goods or services, like the sub-category of ‘colas’ in the broader category of soft drinks, is the ultimate aim of branding.  Toyota is #8 on the list with the greatest brand value of all global car manufacturers.  When you think of Toyota what idea comes to mind?  Toyota owns the word “reliable”.  A Toyota is a reliable, moderately priced car.

Toyota is not a luxury car. But, did you know that Lexus, #96 on the list, is made by Toyota? They have done a masterful job of building separate sub-brands that are sharply focused on specific car categories and then dominating those niches.  Other Toyota brands (not on the list) are the Prius which is the “proven leader in Hybrid technology”, and the Scion, a winner in the youth category.

What idea or category of car does #49 Ford own?  In contrast to Toyota, the Ford brand is on so many models and categories of cars that it has diluted its brand equity. Ford does outsell all other truck manufactures in the US by a considerable margin and therefore, owns this category. 

Pick a category within your luxury real estate marketplace that you would like to own.  Build your brand around this niche. Then, watch your brand equity grow!

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6 Comments on Luxury Real Estate Branding: How to Grow Your Brand Equity

SEP
08
2010
451,406 Points 64 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Excellent post- and point well made. We just had a car related discussion on Inna's post.
11:17am • #1
929,592 Points 13 Featured Posts Called Shot Master

Allison,

We appreciate your comments. who is Inna and I would love to read her post.  Wishing you continued success.
11:35am • #2
538,567 Points 5 Featured Posts Outside Blog Attended Rain Camp

I know this is a bit off topic, but Cherise's sister is dating a very close relative to the owner of Coca Cola.  And yes, you're post is right-on.... g
2:34pm • #3
929,592 Points 13 Featured Posts Called Shot Master

Gordon,

Hope it works out for Cherise's sister, and thanks for your comment.  Alexandra
2:36pm • #4
191,994 Points 2 Featured Posts Called Shot Master

I did not know Lexus was made by Toyota!! "You learn something new every day, and if you don't, you're not paying attention," is what my father-in-law used to tell me.

I like Honda better but own a Toyota right now! Go figure.

Branding and recognition is SO important in the real estate business especially, because the competition is fierce. I work for a Keller Williams branch in Louisville (we have two branches) and our branch alone has over 100 agents. This doesn't even count all the other brokerages.

Thanks for the blog post.
5:52pm • #5
SEP
09
2010
929,592 Points 13 Featured Posts Called Shot Master

Lynda,

Thank you for your insightful commentary.  We feel that in real estate brand is especially important.  Sometimes one gets lumped with everyone else just because they are part of a group, helpful at times and harmful other times. 

Lexus/Toyota has done a really good job keeping the two brands separate.
10:17am • #6


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Ron & Alexandra Seigel (Luxury Real Estate Marketing)

Carpinteria, CA

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ra@napaconsultants.com

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