While a correlation between sales and brand equity may be expected, you need to dig deeper to establish if there are issues to address.

In the previous article we focused on the scenario when sales were decreasing, and brand equity was increasing. We ascertained that a price increase, low quality creative, or a change in media strategy could be the reason for that. We saw that to better diagnose the problem it was important to look at sales as “base vs. incremental,” and suggested different strategies for addressing declines in short and long-term brand metrics.

In this piece we will look at the situation where sales and brand equity move in the same direction (whether that be positive or negative), and the possible strategies brands can adopt to stay ahead.