ABSTRACT
The subjective understanding of brand equity refers to the consumers’ perception of the brand and is strategically valuable for brand management. A brand can be extended into new product categories. Brand extensions are often necessary when adapting to changes in the environment or in order to reap the full benefits of a strong brand. A successful brand extension should respect the brand essence and thereby be based on the core of the brand and be true to the brand vision. An exclusive elite of valuable brands can claim icon status, which is considered the holy grail of brand management. An iconic brand holds references that most people agree upon and it obtains that status by playing an active role in contemporary culture. A brand sometimes ages and declines in strength because as time goes by it loses its relevance and attractiveness for consumers.
