Brand Identity: What It Is and How To Build One
Brand Identity: What It Is and How To Build One Definition Brand identity is the outward-facing aspects of a company brand, including consumer perception, colors, design, and its logo. Brand identity is every manner in which customers experience and perceive a company, from visual (such as logos) to customer service interactions and advertising communications. While examples such as Apple Inc. (AAPL)’s simple design or NIKE, Inc.’s (NKE) “Just Do It” slogan illustrate the potency of brand identity, there is much more to it than simply developing the coolest logo. Whether a firm is a start-up or a mature company, knowing how it can create and sustain a successful brand identity as part of a greater business strategy may mean the difference between success and merely existing—or even failing—in the current competitive environment. Key Takeaways Brand identity fuels financial performance by allowing firms to achieve higher prices and retain customers even in bad market times. Successful brands develop their brand identity strategically over time and keep it at their core recognizable. A brand identity needs to be constantly rechecked with regard to market shifts, competitor actions, and changing customer expectations. A unified brand identity can turn a firm into its most priceless asset, as witnessed by private equity buyouts of large firms just for the usage of their branding. What Is Brand Identity? Brand identity is more than a firm’s visual business card—it’s also a strategic instrument that has the ability to make a real impact on its bottom line. Think about the ways brands influence your own purchasing decisions. Suppose you’re choosing between two hotels on Expedia.com. You’d be comparing lots with roughly the same prices, and your choice would probably depend on your view of a brand’s dependability, service level, and total experience. These impressions aren’t simply the result of your past experience with a hotel chain. They are constructed through repeated messaging and delivery in every touch point. Executed properly, this should yield concrete results for a business. Here’s what a well-developed brand identity can do: Allows premium pricing by delivering perceived value above utilitarian benefits Lowers customer acquisition costs by increasing recognition and recall Bolsters survival in market downturns by building loyalty builds entry barriers for competitors by filling differentiated market spaces Enhances employee commitment through giving clear purpose and direction View this post on Instagram A post shared by BRAND & GRAPHIC DESIGN AGENCY (@pinkponycreative) Fast Fact Brand identity is more than a corporation’s design business card—it’s a strategy that can make a noticeable impact to its bottom line. Think about how brands influence your own purchasing decisions. Imagine you’re selecting two hotels on Expedia.com. The economic value of brand identity can be significant. In Forbes’ 2024 rankings, top brands such as Apple Inc. (AAPL; $241.2 billion) and NIKE, Inc. (NKE;$39.1 billion) have immense monetary value. However, they would be worth far less if Apple and Nike were deemed not to deliver on what their branding indicated. For small companies, the impact of brand identity may be less but is nonetheless essential. A restaurant’s homogenous service style, decorating schemes, and social media are able to engender loyal patrons who will pay a premium, even in a saturated marketplace. If you operate a small company, the most important thing is to make your brand identity genuinely represent your operational capability while making you stand out relative to alternatives for your desired customers. Forbes 2024 Top 50 World’s Most Valuable Brands Forbes’ annual ranking of the world’s more valuable brand takes into account revenue performance, earnings power, and brand impact specific to an industry to estimate how much a brand itself—apart from tangible assets—adds to company worth. The below rankings show a fascinating trend: while technology brands lead the pack, businesses across industries from luxury to consumer goods have developed multi-billion dollar brand values based on unique market positions. Brand Brand Value 1 Yr Value Change Industry 1 Apple Inc. (AAPL) $241.2B 17.00% Technology 2 Alphabet Inc. (GOOGL) $207.5B 24.00% Technology 3 Microsoft Corporation (MSFT) $162.9B 30.00% Technology 4 Amazon.com Inc. (AMZN) $135.4B 40.00% Technology 5 Meta Platforms, Inc.’s Facebook (META) $70.3B −21.0% Technology 6 Coca-Cola Co. (KO) $64.4B 9.00% Beverages 7 The Walt Disney Company (DIS) $61.3B 18.00% Leisure 8 Samsung Electronics Co. Ltd. (SSNLF) $50.4B −5.0% Technology 9 Louis Vuitton $47.2B 20.00% Luxury 10 McDonald’s Corporation (MCD) $46.1B 5.00% Restaurants 11 Toyota Motor Corp. $41.5B −7.0% Automotive 12 Intel Corporation (INTC) $39.5B 2.00% Technology 13 NIKE, Inc. (NKE) $39.1B 6.00% Apparel 14 AT&T Inc. (T) $37.3B −10.0% Telecom 15 Cisco Systems Inc. (CSCO) $36B 4.00% Technology 16 Oracle Corp. (ORCL) $35.7B 11.00% Technology 17 Verizon Communications Inc. (VZ) $32.3B 2.00% Telecom 18 Visa Inc. (V) $31.8B 18.00% Financial Services 19 Walmart Inc. (WMT) $29.5B 12.00% Retail 20 General Electric $29.5B −14.0% Diversified 21 22 Budweiser $28.9B 6.00% Alcohol 23 SAP SE (SAP) $28.6B 0.00% Technology 24 Mercedes-Benz $28.5B −14.0% Automotive 25 InternationalBusiness Machines Corporation (IBM) $28.2B −10.0% Technology 26 Marlboro $26.8B −6.0% Tobacco 27 Netflix Inc. (NFLX) $26.7B 72.00% Technology 28 BMW $25.9B −13.0% Automotive 29 American Express Company (AXP) $25.1B −3.0% Financial Services 30 Honda $24.5B −5.0% Automotive 31 L’Oréal $22.8B 23.00% Consumer Packaged Goods 32 33 Gucci $22.6B 22.00% Luxury 34 Hermès $21.6B 19.00% Luxury 35 Nescafe $20.4B 14.00% Beverages 36 Home Depot Inc. (HD) $19.2B 6.00% Retail 37 Accenture PLC (ACN) $19.1B 15.00% Business Services 38 PepsiCo, Inc. (PEP) $18.2B −3.0% Beverages 39 Starbucks Corporation (SBUX) $17.8B 5.00% Restaurants 40 Mastercard Inc. (MA) $17.3B 23.00% Financial Services 41 Frito-Lay $16.3B 11.00% Consumer Packaged Goods 42 IKEA $15.8B 3.00% Retail 43 44 Zara $14.7B 9.00% Retail 45 Gillette $14.5B −13.0% Consumer Packaged Goods 46 HSBC Holdings PLC (HSBC) $14.4B 12.00% Financial Services 47 Audi $13.8B −3.0% Automotive 48 JPMorgan & Chase & Co. (JPM) $13.7B 11.00% Financial Services Building a Brand Identity Developing a worthwhile brand identity involves systematic investment and prudent implementation throughout a company’s media (social media, in-store