A company thrives only when it has been branded in the right manner. The power of branding plays a crucial step in any business. Without strategic branding, we would not be able to differentiate a Starbucks from a Cafe Coffee Day. They would all be generic cafes in the eyes of customers.
The brand of a company can be its name, colour palette, slogan, tagline, visual identity, and most importantly, its logo. Studies have even shown that a consistent colour palette increases brand recognition by 80%. So, companies can create a brand identity by just using the same colour palette.
Elements of Branding
It is important to have a strong branding strategy that will help guide your brand towards the direction of success. Here are a few elements of branding that must be taken into consideration while you plan your branding strategy.
1. Define your brand
One of the first things that you must do is define what your brand stands for. The way you brand your company will create brand recognition, confidence, and trust. If you convey what your brand delivers, then customers will come to you with certain expectations. As a company, it becomes your duty to fulfill these expectations of your customers.
When you define your brand, you make a promise to your customers. You can use slogans and taglines to convey these brand-defining messages. Take the example of Coca-Cola. When we see any visuals from the brand, we know exactly what their beverages are. We immediately remember the taste and feel of their products. The company has done a good job in defining its brand as the “real thing”. People still prefer to have Coca-Cola over a Pepsi because it delivers the customers’ expectations from the beverage. Their tagline “Taste the Feeling” still resonates with customers due to the power of branding.
2. Identify your target audience
In order to formulate an effective branding strategy, you must identify your target audience. Knowing your target audience will not only help you create the right kind of content for your brand, but it will also help in effectively reaching customers who too may be interested in your product or service.
A well-defined target audience will help you identify your customers’ demands. For example, if you are running a cosmetic brand, then knowing the current needs of the market can help you expand your business. If customers are looking for cruelty-free or vegan cosmetic products, then you can initiate a new product category that meets the needs of the customers. This way, you can increase your profits and at the same time, brand yourself as a company that engages in ethical product practices.
3. Stand out from your competitors
Yet another important role of branding is knowing what differentiates your company from your competitors. You will need to ask yourself questions such as, “Which of my products and services are better than my competitors’?” or “What is my brand’s USP?”
When you offer a product or service that is “branded” and well-known, then you can charge more for the said commodity. This is why companies such as Coca-Cola price their beverages at a higher price than other generic beverage companies. It is because there is a demand for Coca-Cola that stands out amongst its competitors.
This demand is created due to the trust that grows amongst customers. They keep coming back because they already know the taste, feel, and experience of the beverage. Having a quality product or service is needed in order to stand out in the market.
Importance of Branding
1. Creates loyalty
Brand loyalty is created in the minds of customers because of good branding. With consistent branding, loyal customers become the local spokesperson for your company. If your company ever faces difficult times, these customers will support you by spreading positive messages about your establishment. They will bring in new customers and help increase the overall brand identity of your business.
2. Clarifies brand identity and creates focus
Another power of branding is that it helps position your company to win. Your company’s brand identity becomes like your statement of purpose because it describes who you are and what you promise to provide to your customers. Anything that does not align with your brand identity can be discarded or repositioned. This brand identity helps you and your organization stay on target and not move in circles.
3. Branding will guide advertising and marketing
If you don’t have a well-defined brand identity, it will be almost impossible for you to know what to say to your customers. Branding helps companies recognize the language, tone, voice, and personality associated with the company. Without these elements, you may be advertising to no one in particular and seeing what works. But the problem is that marketing and advertising company is not cheap. Big budgeted firms shell out lakhs and crores of rupees on ads with no clear brand strategy or emotional trigger. This is hands down one of the biggest damages that companies face.
With the power of branding, you can reach out to specific, niche customers who will be interested in your product or service. Put in the effort to understand your customers and their emotions. Use that to guide every single marketing strategy from thereon. The return on investment will show sooner than later.
4. A compelling brand attracts top talent
Today’s job market is highly competitive. Several mid-size firms post job openings and receive very few or no applicants. Existing employees in these firms have to work twice as hard in order to achieve organizational goals.
But there are often a few companies that never have any issues in finding the right candidates for job positions. These are well branded and highly credible companies in the market that everyone wants to be a part of. These companies always “win” and every applicant wants to be a part of a company that is reputed and is known for achieving big goals. Applicants will always be attracted to companies that do good work and look good on the resume.
If you actively participate in branding your company as a highly reputable firm, then you will never face any issues in acquiring the best talents. Highly experienced and skilled applicants will flock towards your direction and help you grow your business.
Now that you have understood the power of branding and the benefits of branding, you must understand that branding is more than just a marketing practice. It is a procedure that requires attention and discipline. You will have to give equal parts importance to leadership, planning, direction, communication, etc., in order to create a perfect branding strategy. So reach out to a branding company in India like ourselves and make the best of your business.
Does branding really matter?
Great branding make any company more desirable to its target audience. Having a strong brand works to build customer recognition.
When should you do branding?
When you just established a business, it is the best time to start the branding. It will help to attract your ideal customers.
What is the purpose of a logo?
It is a combination of both text and visual, it represents your business and tells people what your business is all about.
What are the most famous brands?
Apple, Google, Coca-Cola, Microsoft, Starbucks are some popularly known brands.