BRAND EQUITYBrand equity refers to the essence of value or the creation of a perspective amongst consumers’ minds regarding the products and services offered through various activities hence the development of a strong brand. In other words, accountants refer to it as brand goodwill. The company Recreation equipment Inc. has a unique selection of its products which were nonexistent in other areas and this helped them develop a strong customer base.

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The company created a brand with techniques such as having its catalogue with a cliff face for climbing, a replete with a waterfall, and other displays so exciting that brought enthusiasm amongst the consumers. In addition, brand strength was developed by the expansion online and new customers were attracted. This has increased the sales for Recreation equipment Inc. by two and a half times within the previous year and it is due to the transfer of brand image online and provision of a wide range of information for their products and merchandise. Will the internet rob sales from the retail stores and cancel out that sizable investment made by the company?

This competitive positioning by the company has proved that numerous sales channels can exist and complement each other since cross-over marketers like Recreation equipment Inc. is able to transfer brand image to a greater population and the internet can equally reinforce the brand strength since the online population is on an exponential growth.

The competitive factors in play include the wide range of products and merchandise companies online who satisfy the needs of the wide ranging customers available on the internet. Also, the methods of shipping products oversees would be a challenge as competitor companies have at their disposal means of product shipment to their customers efficiently and effectively. The company faces competition from renowned brands that have larger market shares and their spread to these new frontier markets will be driven by product differentiation and brand quality as consumers keen to their satisfaction.