Brand identity – how does it affect branding and why is it important?

Easy and quick brand identification is one of the keys to its market success. Creating a brand with a distinctive identity can take time and skill, but in the long term it can bring great benefits to your business.

From this article you will learn:

• What is brand identity?
• What is the difference between brand image and brand identity?
• What can you gain from a consistent brand identity?
• What elements are included in a brand identity?
• How to create an effective brand identity?
• What are examples of well-known brand identities?

Brand identity – definition

Brand identification (sometimes called ‘branding‘) describes the process of creating a unique name and image for a product or service in the minds of consumers. It is a combination of multiple elements (name, logo, slogan or communication style) and the customer experience associated with the brand. The combination of these elements helps to create a recognisable brand image, while also building the brand’s reputation and core is the brand pillar.

A well-designed brand identity should convey the company’s core values and its unique characteristics that set it apart from the competition. It should also attract and maintain customer loyalty. It is vital to the success of a company because it helps build trust in the brand, increases brand awareness and influences consumer purchasing decisions.

Brand identity is the process of creating a unique name, image and other distinctive features for a product or service to help differentiate it in the marketplace.

Definition of brand identity

Brand identity includes a logo, slogan, design and communication style that create a recognisable brand identity in the minds of consumers. The main objective of brand identity is to build a strong relationship with customers, shape their perception of the brand and influence their purchasing decisions.

Brand image vs. brand identity

Brand image and brand identification are closely related but have different meanings:

• Brand identification is the process of creating unique brand attributes and a company’s conscious strategy to differentiate itself in the market.
• Brand image, on the other hand, describes customers’ perceptions and feelings towards a brand as a result of their interaction with it. Although brand identification is controlled by the company, brand image is dependent on the audience and their experiences.

Benefits of brand identification

Brand identification plays a key role in the running of any business and translates into the long-term success of the company. A well-designed identity increases brand recognition and makes your company stand out in a crowded marketplace. It also attracts the attention of potential customers, which can result in stronger relationships in the future.

Brand identity also adds credibility to your company’s operations. If your brand is consistent and professional, it can inspire greater confidence in your customers, which can lead to increased sales and market share. At the same time, it gives your company a competitive advantage – with the unique attributes and values communicated through brand identity, your company stands out from the rest.

Brand identity is also a key element of a company’s positioning. It defines what your brand is and who it exists for, allowing you to target products to the right audience. A consistent identity also provides clear direction for marketing strategies, keeping them consistent across all forms of communication.

Elements of brand identity

Brand identity comprises a number of key elements that together create a unique brand identity. All of them together form a comprehensive picture and it is important that they are consistent and work well together. We are talking about elements such as:

• Name – the basic and key element of brand identity. A good name should be unique, easy to remember and pronounce and create a marketing message containing the most important information about the brand or product.
• Logo – a graphic representation of the brand, helps with brand recognition. It should be simple but distinctive, and capture the ‘essence’ of your brand well.
• Colours – an important part of brand identity as they strongly influence emotions and brand imagery. The colours you choose should reflect the values of your business and set your brand apart from others.
• Typography – the type and style of fonts used in branding has a strong impact on brand perception. Well-chosen typography can reinforce a brand’s personality.
• Slogan – a short, memorable sentence that summarises the brand’s mission or values. It should be easy to remember and communicate unique characteristics.
• Brand voice – the style and tone of communication, both written and spoken, should be consistent across all channels and reflect the brand personality.
• Customer experience – all customer interactions with your brand, from customer service to the buying experience, should reflect its values and build positive associations.

Creating a brand identity

Creating a brand identity is a strategic and creative process that requires an understanding of your business, market and audience. During the creation process, it is important to regularly review and adapt the company’s growth strategy and changes in the market. Creating an effective brand identity can be helped by:

Understanding the company’s mission and values

Creating an effective brand identity starts with a deep understanding of your own mission and values. The mission is the goal you are working towards as an organisation. Values are the principles that guide your company’s actions.

Mission, vision and values of the company should be consistent and reflect what your organization is, what principles it wants to operate by and what it wants to achieve. Without this, it can be difficult, if not impossible, to create a brand identity – mission and vision statements help shape how your company is perceived by customers and other stakeholders. They often serve as the foundation for other brand identity elements such as a logo, slogan or brand voice.

Defining the target group

Defining your target audience requires understanding and identifying who is most likely to be interested in your products or services. It takes into account many factors, such as demographics (age, gender, education level, income), geography (location, place of residence), psychographics (lifestyle, values, interests) and behaviourism (purchasing behaviour, brand loyalty).

It is also important to deeply understand your target audience , which means knowing their needs, expectations, motivations, the problems they are trying to solve and their preferred communication channels. In this way, you can deliver products and services that meet or even exceed their expectations, thus building strong relationships.

However, it is important to bear in mind that the target group will change and evolve as the market, technology and the company itself develops. For this reason, it is necessary to regularly update the data about it in order to maintain the effectiveness of your activities.

Competitor analysis

Competitor analysis allows you to assess how your competitors are positioning their brands, their unique characteristics, their strategies. A SWOT analysis, on the other hand, will show what their strengths and weaknesses are. All this gives you valuable information that can shape your own brand. You may, for example, notice that certain elements of the identity are particularly effective in your sector, so you can work out how to adapt them to your own brand while keeping it unique.

Competitor analysis also allows you to understand what determines success or failure in your sector. This allows you to avoid mistakes and maximise your chances of success. An in-depth understanding of the competition and your industry is key to creating a distinctive brand that is likely to succeed in a crowded marketplace.

Creating a brand name and logo

The brand name and logo are two of the most recognisable aspects of brand identity, which play a key role in communicating with customers and differentiating the brand in the marketplace. They form the foundation of the brand identity, build recognition and relationships with customers and express the values and personality of the brand.

The name is the first element with which a potential customer comes into contact. It should therefore be unique, easy to remember and pronounce and reflect the nature of your business. The choice of a suitable name should take into account aspects such as the availability of an Internet domain, trademark law, the meaning of the name in different languages and cultures, as well as its emotional resonance with the target group.

A logo, on the other hand, is a visual symbol of the brand that makes it easy to identify. Like the name, it should be simple but distinctive, and easily recognisable. It should also meet a number of technical requirements – we are talking about scaling to different sizes, remaining effective without colour (e.g. for black and white printing) and being flexible so that it can be used on different platforms and in different contexts.

Choice of colours and typography

Colour and typography are two powerful tools that influence how a brand is perceived by its audience. Both should be thoughtfully and consistently used in all aspects of brand communication.

The colours you choose for your brand are extremely important. Different shades can evoke different emotions and reactions in people. Red can be associated with energy, passion or danger. Blue, on the other hand, can evoke feelings of calm, trust and stability. It is therefore worth choosing colours that reflect the values and emotions you want to associate with your brand.

Typography, on the other hand, or the way text is presented, is very important for brand perception. Different fonts, like colours, can evoke different associations – fonts with strict, simple shapes can be associated with modernity and minimalism, while more complex typefaces can evoke feelings of elegance, tradition or luxury.

Formulating the brand voice

Brand voice is the style and tone in which your brand communicates with your audience. It is one of the most important tools in building relationships. A brand’s voice is a reflection of its personality and should be consistent across all customer touchpoints. It also sets your brand apart from others.

Whether your voice is formal or informal, it should be consistent with your brand and its values. It helps customers better understand what your brand is, what its values are and what they can expect from it.

Creating the customer experience

Customer experience is the sum of all customer interactions with your brand. It consists not only of what the customer feels when they use your product or service, but also how they are treated by your customer service, how easy they can find information on your website or even how a purchased product is packaged. The better the experience, the greater the customer’s engagement with your brand.

Every touchpoint should reflect what your brand promises and deliver a consistent experience. Every interaction should reinforce your brand and build a relationship with the customer. This means that the customer experience is integral to your brand identity – it should consistently reflect your brand values and help shape positive perceptions of your brand in the marketplace.

Maintaining consistency

Consistency in brand identity is essential for building trust, recognition and a strong position in the market. A consistent brand identity creates a strong, recognisable and trusted brand image that helps to attract and retain customers, building loyalty and long-term relationships. Each element of the brand should create a unified image, consistently presented across all communication channels and customer touchpoints.

Consistency helps customers regardless of location or context to quickly identify your brand. This lets customers know what to expect, which is key to building and maintaining trust in your brand and shows that you are consistent in your message and values.

Examples of brand identification

Examples of effective brand identity can be found in many different sectors. The three companies listed below show that a strong and consistent brand identity can lead to becoming a global symbol. They refer to:

• Starbucks – the coffee giant’s logo, a mermaid in a round medallion, is instantly recognisable around the world and all of the chain’s shops have a similar design, consistent with the brand’s colour scheme, consisting mainly of shades of green, black and white.
• Amazon – the simple but strong logo, which depicts a smile going from the letter ‘a’ to ‘z’, symbolises that the company offers everything from A to Z. The colours – black and orange – are consistently used across all materials. Amazon’s brand voice is focused on customer service, reflecting the company’s mission.
• McDonald’s – the logo, a golden arched ‘M’, is one of the most recognisable symbols in the world. The brand consistently uses yellow and red in its packaging, advertising and restaurants. It also has a unique brand voice that is friendly and family-oriented, with a customer experience focused on speed and convenience.

Through a consistent name, logo, colours, typography and brand voice, you create a unique identity that sets you apart in the marketplace. You increase recognition, build trust and customer loyalty. By creating a consistent experience, you attract and engage your target audience.

Identity helps your business to consistently communicate your brand values and message. Constraints may include changing trends and market expectations, but the benefits – brand building, competitiveness and long-term success – make brand identity indispensable for any business.