The primary characteristic of powerful brands stem from their possession of brand equity. The group Cream Delight possesses high brand equity. In simple terms, brand equity is used to refer to the collective set of associations as well as behaviors on the part of the entire group of the brand’s consumers, channel members, along with the parent corporation. Brand equity helps the brand to command either higher margins or greater volumes or both, which could not have been commanded in the case the brand name had not existed.
The Cream Delight group has been in the business for more than 50 years and in its years of operations, it has earned significant brand equity that provides it with a sustainable, stronger, and competitive differential advantage with respect to competitors in the competitive marketplace (Chay 1988). The company aims to capitalize on this brand equity through the process of brand extensions wherein it diversifies into similar lines of business which are characterized by the same customer base (Tauber, 1981).