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Brand Identity: What It Is and How To Build One
What Is Brand Identity?
Brand identity describes the externally visible elements of a brand that identify and distinguish the brand in consumers’ minds. While this can include visual aspects, such as color, design, and logo, it also includes the type of language and interactions a brand has with consumers. A strong brand identity is built with a strategic intention to cultivate a certain brand image in consumers’ minds.
KEY TAKEAWAYS
- Brand identity is composed of the externally visible elements of a brand, such as color, design, and logo, that identify and distinguish the brand in consumers’ minds.
- Consistency of expression in marketing and messaging is an important part of creating a strong brand identity.
- Creating a brand identity that stands out from the competition and is appealing to your target audience is an important aspect of overall business strategy.
- Building a strategic and cohesive brand identity requires analyzing the competitive landscape and target market, and determining the company’s goals, customers, and brand positioning.
- When creating a brand identity, it’s important to consider how the identity will be expressed across different channels, such as social media.
Understanding Brand Identity
A brand identity is composed of various branding elements, like a company’s name, logo, visual elements, language and tone of voice. It also describes the way a brand interacts with consumers across different channels, such as its website, social media, and email.
A strong brand identity:
- Is recognizable by consumers and helps the company stand out from the competition
- Stands for a set of values and traits that resonate with the target audience
- Is consistently expressed across a company’s channels
- Strengthens a company’s popularity and presence in the market
- Contributes to a company’s positive reputation, communicating characteristics such as quality and reliability to build trust with consumers
A successful brand can be one of the company’s most valuable assets. Although brand value is somewhat intangible and can be difficult to quantify, companies can cultivate strong brand equity with distinctive branding and product design.
Nike, Inc., for example, owns one of the world’s most instantly recognizable logos, the “swoosh.” According to Forbes‘ “The 2020 World’s Most Powerful Brands” report, the Nike brand ranked 13 with an estimated brand value of $39.1 billion, even though, in a world devoid of brand perception, taking the swoosh off of Nike’s shoes and apparel would change nothing about their comfort or performance. The top brand on the 2020 list was Apple, with an estimated brand value of $241.2 billion.1
Building Brand Identity
The steps a company should take to build a strong, cohesive, and consistent brand identity will vary, but a few points apply broadly to most:
- Analyze the company and the market. A complete SWOT analysis that includes the entire firm—a look at the company’s strengths, weaknesses, opportunities, and threats—will help a brand understand its positioning relative to the competition.
- Determine key business goals. The brand identity should help fulfill these goals. For example, if an automaker is pursuing a niche luxury market, its ads should be crafted to appeal to that market. They should appear on channels and sites where potential customers are likely to see them.
- Identify its customers. Conducting surveys, convening focus groups, and holding one-on-one interviews can help a company hone in on its target audience and understand their needs and desires.
- Determine the personality and messaging it wants to communicate. Brands should focus on creating a consistent and specific perception rather than trying to combine every conceivable positive trait. All brand elements, including both copy and design aspects, should align to deliver a coherent image and message.
