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Marketing Letters

, Volume 11, Issue 3, pp 210–220 | Cite as

Leveraging Equity Across The Brand Portfolio

  • Carolyn J. Simmons
  • Barbara A. Bickart
  • Lauranne Buchanan
Article

Abstract

Industry informants suggest that the equity of well-known, established brands can be leveraged to create value for unfamiliar or less-established brands. To the extent that cues in the retail environment imply some commonality between the high-equity brand and the less-established brand, benefits to the less-established brand may be expected. We refer to this implied commonality as strategic equivalence. Sharing the retail brand portfolio with high-equity brands is one way of establishing strategic equivalence. Display structure—whether the brands are displayed separately or intermixed—can also affect perceptions of strategic equivalence. In two studies, we demonstrate the ability of high-equity brands to increase the value of lower-equity brands in the same retail department and the ability of display structure to moderate this effect.

Brand portfolio retail display structure leveraging equity economic value of brand markdown strategic equivalence 

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Copyright information

© Kluwer Academic Publishers 2000

Authors and Affiliations

  • Carolyn J. Simmons
    • 1
  • Barbara A. Bickart
    • 2
  • Lauranne Buchanan
    • 3
  1. 1.MUniversity of VirginaCharlottesville
  2. 2.School of Business—Camden, RutgersThe State University of New JerseyUSA
  3. 3.The American Graduate School of International ManagementUSA

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