A brand is much more than a name or a logo. A brand results from the sum of perceptions, emotions and promises that a company conveys and that are perceived by a particular audience.
A strong and recognisable brand is an intangible asset that adds value to a business and increases its competitive power. Brand strategy should be understood as a comprehensive plan of action in the market, ranging from the creation of an original visual identity to the definition of tone of voice, values and unique commercial propositions that distinguish the company from all its competitors and make it easy for consumers to understand and remember.
For any business, but especially for medium-sized companies competing in a saturated market, a robust brand strategy is essential for capturing attention and creating emotional connections. Brand identity, as part of that strategy, helps define how the brand is seen, remembered and preferred.
A brand identity is made up of several elements that, together, shape public perception. It is worth recalling these elements so that informed decisions can be made about the future direction of a brand:
- Brand name: The first and perhaps most enduring impression. It should be distinctive and easy to remember. The name will become the repository of consumers’ trust, so it is important that it supports communication rather than creating confusion or misunderstanding whenever it is written or spoken. Particular attention should be paid to problematic sounds or potentially misleading similarities.
- Logo and visual elements: These include the design, colours and symbols that visually identify the brand. Here, simplicity should be the rule, because when it comes to visual identity, anything that does not add value subtracts value.
- Colour palette: Colours have a strong emotional impact and help evoke specific feelings. A colour should be chosen that is appropriate to the type of business or to the personality we want to attribute to the brand.
- Typography: The fonts used play an important role in communicating personality and professionalism. A typeface should be chosen that makes the name easier to understand and remember, while avoiding excessive emphasis on the typography itself, as this may undermine the brand’s communication purpose.
- Tone of voice and communication: The way the brand communicates with its audience, across all touchpoints, should be consistent and aligned with the brand’s values. It is also important to define the brand’s imagery, establishing a standard or style for images with identity-building value.
- Values and Mission: These define the brand’s purpose and guiding principles, reinforcing the reason for its existence. When well defined and clearly presented, they are highly valuable internally as a means of bringing employees together, and externally because they form the basis of the promise made to customers.
Each of these elements should be coherent and aligned with the brand’s purpose in order to create a strong and cohesive brand experience. A well-built brand identity generates recognition, loyalty and differentiation in a competitive market.
Benefits of brand identity
A strong and clear brand identity brings significant benefits to a business. For this reason, the primary objective of a marketing strategy must necessarily be to build a brand identity capable of securing a place in consumers’ memories.
The strength of an identity is therefore demonstrated by the speed with which relevant levels of brand awareness are achieved within the sector, segment or niche in which we wish to compete, and by the volume of references to the brand whenever the products or services in its area of activity are discussed.
Among the main benefits resulting from a clear and strong identity, we can highlight:
- Market differentiation: In an era of intense competition, a distinctive brand captures attention and stands out among all the available options. Companies that invest in a strong identity are better able to compete on factors other than price.
- Emotional connection with the audience: Brands with clear and strong identities can create deeper emotional connections, turning customers into supporters or even advocates of the brand.
- Credibility and trust: Consistent and well-defined brands convey greater professionalism and credibility, both of which are crucial to attracting and retaining customers, particularly in highly competitive sectors or where products and services are poorly differentiated.
- Facilitating purchasing decisions: When a brand is easily recognised and associated with positive attributes, the customer’s decision-making process becomes easier, as a positive perception of the brand increases the tendency to focus on the benefits and positive externalities of the purchase.
- Resilience in times of crisis: A strong brand identity contributes to a company’s ability to overcome potential product or process crises, as its customer base is more likely to remain loyal and a trustworthy public image allows stakeholders to give the company time and goodwill to recover.
These benefits of a strong and clearly defined identity are essential for all companies, but they are particularly decisive for medium-sized firms operating in highly competitive markets. Companies in the middle of the table — neither small nor large — generally face greater marketing and communication difficulties compared with larger competitors with substantial marketing budgets, which tend to use their market power to overshadow weaker rivals.
Consistency and effectiveness
A successful brand identity is the result of a well-managed strategic process and an investment effort that is consistent with the business plan, which will make that investment viable and give practical meaning to the decisions taken by shareholders.
To build an effective and powerful brand identity, it is important to prepare a comprehensive framework of logical requirements before investing in branding, because without a fully developed and stable conceptual foundation, beginning the process of designing the brand is highly risky.
Some of the preliminary questions that need to be addressed are:
- Define the target audience: Knowing the audience to whom we want to present our commercial propositions is essential for creating a brand identity that is meaningful to that audience. Understanding the people with whom we want to build relationships, and understanding their needs, values and preferences, allows us to adjust the brand’s communication and positioning.
- Develop a value proposition: Formalising the value proposition should make the essence of the brand clear, explain why it deserves to be considered an option by consumers, state what differentiates it and define what customers can expect from it. This clarifies the company’s basic promise and provides a point of reference for both employees and customers.
- Create a brand story: Every brand should make an effort to create a founding narrative, because the brand’s story helps humanise the business by presenting its unique biography and expressing, in an authentic and engaging way, the values, motivations and commitments it demonstrates to society.
- Establish visual and communication guidelines: A style guide is essential for maintaining consistency in the brand’s language, both visually and textually. Choices should be made regarding the aesthetic style to be followed in images and the type of vocabulary to be preferred in texts. Uniformity and consistency over time reinforce brand memory and ensure that every element contributes to a cohesive identity.
- Strengthen the brand personality: Personality is a complex concept and difficult to manage, but defining it clearly is crucial to creating an emotional connection with the audience. Analogies and parallels with human personalities are frequently used to illustrate a brand personality more effectively. For a young and dynamic brand, communication may be more casual and modern; for a luxury brand, a more formal and elegant tone may be more appropriate. What a brand says contributes to its personality, but what it does matters even more. The balance between words and actions, wrapped in style, will ultimately shape the brand’s true personality.
- Invest in coherence and consistency: A clear brand identity is built through consistency across every interaction. Throughout the entire relationship and customer experience, the same values should be demonstrated, the fundamental commitment should be confirmed and the style of the message should be respected.
Examples of success
Apple: One of the world’s most recognised brands, Apple has built an identity around simplicity, innovation and premium design. Every element of its identity — from its minimalist logo to the in-store experience and tone of communication — conveys sophistication and exclusivity. The slogan Think Different is not merely a phrase, but the essence of its brand strategy.
Nike: The sports brand Nike is a perfect example of how a strong identity can create a global community of fans and loyal users. The slogan Just Do It reflects its philosophy of overcoming challenges, while the consistent use of black and white tones and the iconic swoosh logo reinforce its athletic and determined spirit.
Starbucks: Starbucks has created a brand identity centred on customer experience and the idea of being the “third place” between home and work. The brand conveys a sense of comfort, quality and connection, while the consistency of its physical spaces and packaging, combined with its philosophy of social responsibility, contributes to a brand experience that goes beyond coffee.
Each of these examples illustrates the power of a clear brand identity to create a lasting bond with customers. Medium-sized companies can learn a great deal from these strategies by finding ways to translate their values and differentiating factors into a consistent brand experience.
By creating a strong and consistent brand identity, a company not only establishes a solid base of loyal customers but also strengthens its position in the market, differentiates itself from competitors and, at the same time, builds long-term value.
Consistency, clarity and alignment between the brand and its values are crucial to effective communication and the development of a strong reputation. And reputation is the key to success in the business world.
Paulo Fidalgo
CEO of Marketividade
