How to Build Your Brand Identity from Scratch
Welcome to another episode of The Bottom Line, where we explore essential strategies for achieving financial success in business.
Creating a powerful brand identity is essential for any business that wants to resonate with customers, foster loyalty, and differentiate itself in a competitive market. A brand is more than just a logo or a catchy tagline—it’s the embodiment of your business’s personality and the connection it forms with its audience. Building a brand identity from scratch can seem daunting, but by understanding the three major functions of a brand—recognition, risk reduction, and identification—and the core and equity elements that contribute to brand strength, you can create a brand that thrives in the marketplace.
The Three Major Functions of a Brand
1. Recognition
Recognition is the primary role of a brand—it enables customers to instantly recognize a product or service among its competitors. Think of brands like Coca-Cola or Apple: their logos and branding elements are so recognizable that customers know what they represent without needing to see the brand name. Building strong brand recognition helps you stand out and makes it easier for customers to choose your products.
2. Risk Reduction
When customers choose a known brand over an unknown one, they reduce the perceived risk of making a poor purchase. Familiar brands represent a certain level of quality, consistency, and reliability. For instance, when people buy from Amazon, they have the assurance of a streamlined experience and reliable customer service, which reduces the risk associated with online shopping.
3. Identification
A brand also acts as an identifier that tells customers what to expect. Nike, for example, signifies performance, athleticism, and motivation. When people see the “Swoosh,” they immediately associate it with these values. A well-defined brand identity helps customers identify with the brand on a personal level, fostering a sense of community and loyalty.
Core Brand Elements
To build a memorable brand identity, you need to focus on a few foundational elements: name, logo, and color scheme. These core elements form the face of your brand and contribute significantly to its recognizability and overall impact.
1. Name
Your brand name should be easy to remember and relevant to what your business offers. A good example of a memorable name is “Slack,” a popular messaging tool for businesses. Slack stands for “Searchable Log of All Communication and Knowledge,” which hints at the platform’s purpose without being overly literal. When choosing a name, consider if it aligns with your brand’s voice, whether it’s unique, and if it resonates with your target audience.
2. Logo
A logo is the visual representation of your brand. It should be simple, versatile, and meaningful. Take the example of FedEx’s logo: the negative space between the “E” and “X” creates an arrow, symbolizing forward movement and delivery speed. A well-designed logo not only makes your brand visually distinctive but also communicates your brand’s promise or personality at a glance.
3. Color Scheme
Colors evoke emotions and play a big role in how people perceive your brand. Studies have shown that up to 90% of snap judgments about products can be based on color alone. For example, blue is associated with trust and professionalism (as used by companies like IBM and LinkedIn), while red represents passion and excitement (like Coca-Cola and Netflix). Select colors that align with your brand personality and message, as they will influence how customers feel about your brand.
Equity Brand Elements
Beyond the core elements, there are several equity elements—awareness, loyalty, perceived benefits, brand association, and brand positioning—that deepen customer connections and give your brand lasting value.
1. Brand Awareness
Building brand awareness ensures that people recognize your brand and understand what it stands for. Strategies like content marketing, social media engagement, and consistent messaging across all channels help improve brand awareness. For example, Airbnb’s awareness campaigns focus on “belonging anywhere,” using stories from users to build a sense of community and inclusion, resonating strongly with their audience.
2. Brand Loyalty
Brand loyalty is the result of consistently meeting or exceeding customer expectations. Loyal customers will choose your brand repeatedly, even when alternatives are available. Starbucks has built loyalty through its rewards program and by offering a consistent, high-quality experience worldwide. Loyalty can be nurtured by maintaining a strong customer service strategy, rewarding repeat customers, and staying true to your brand promises.
3. Perceived Benefits
The perceived benefits are what customers believe they gain by choosing your brand. This isn’t limited to functional benefits but includes emotional and psychological aspects. For example, Apple’s customers don’t just see their products as functional devices; they view them as symbols of innovation, simplicity, and exclusivity. Communicating the unique benefits of your product can strengthen brand preference and influence customer perception.
4. Brand Association
Brand association refers to the qualities that customers instinctively associate with your brand. McDonald’s, for example, is associated with convenience, affordability, and consistency. These associations help customers make a quick decision when choosing a product. Positive brand associations can be fostered by delivering on your brand promise and aligning with values important to your customers.
5. Brand Positioning
Positioning is how you want your brand to be perceived in the minds of your target audience. Effective positioning can differentiate your brand from competitors and clarify why customers should choose you. Take Dove, which positioned itself as a brand that promotes real beauty and self-acceptance, setting it apart from beauty brands that traditionally promote idealized images. Your positioning statement should define your target audience, highlight the unique benefits you offer, and reflect your brand’s personality.
Steps to Build Your Brand Identity
To build a cohesive and memorable brand identity, follow these steps:
1. Define Your Brand Purpose and Values
Clarify why your brand exists and the values it stands for. Are you a tech company focused on innovation like Tesla, or a business promoting eco-consciousness like Patagonia? These values will shape every aspect of your brand identity.
2. Understand Your Target Audience
Research your audience to understand their needs, preferences, and values. This insight will guide your choice of brand elements and messaging. For example, if your target audience values sustainability, like in the case of the eco-friendly cleaning brand Method, reflect that in your branding, packaging, and communications.
3. Develop a Consistent Voice and Messaging
Your brand’s tone should reflect its personality. A playful brand like Old Spice uses humorous and edgy language, while a brand like Tiffany & Co. maintains a sophisticated, elegant tone. Your messaging should be consistent across all channels, creating a unified experience for customers.
4. Design Your Visual Elements
Create a memorable logo, choose a color scheme that resonates with your brand’s personality, and pick a font that reflects your style. Consistency in visual branding ensures that your brand is easily recognized and remembered. Take Netflix as an example: its iconic red and black color scheme is used across all marketing materials, creating a cohesive brand image.
5. Build Brand Equity Through Experience
Finally, strengthen your brand by consistently delivering a positive customer experience. From excellent customer service to engaging social media content, every interaction should reinforce the value of your brand. Zappos, for example, is renowned for exceptional customer service, which has built brand loyalty and solidified its reputation as a customer-centric company.
Final Thoughts!
Building a brand identity from scratch is a journey that requires clarity, consistency, and a deep understanding of what resonates with your audience. By focusing on core and equity brand elements, you can create a brand that is recognizable, reduces risk for customers, and fosters strong identification. Remember, your brand identity is not static—listen to your customers, adapt, and grow with their needs to maintain relevance and appeal in a dynamic marketplace.
Stay tuned and make every financial decision count!
References
- Keller, K. L., & Swaminathan, V. (2020). Strategic Brand Management: Building, Measuring, and Managing Brand Equity.
This book is a comprehensive guide on brand management, focusing on brand elements, brand positioning, and brand equity. Keller’s framework is highly regarded for structuring brand identity development. - Aaker, D. A. (2014). Aaker on Branding: 20 Principles That Drive Success.
David Aaker, a pioneer in branding theory, provides insights into the role of brand equity and brand associations. His principles are useful for understanding how to create lasting connections with customers. - Godin, S. (2009). Tribes: We Need You to Lead Us.
This book discusses the importance of building a community around your brand and creating a strong sense of identification among customers. It’s ideal for understanding how to foster loyalty and brand identification. - Miller, D. (2017). Building a StoryBrand: Clarify Your Message So Customers Will Listen.
Miller’s StoryBrand framework emphasizes the importance of clear messaging and identifying your audience’s needs. It’s an accessible resource for developing brand messaging and positioning. - Harvard Business Review. (2020). What is Branding and How Does it Work? Harvard Business Review.
This article on HBR explores brand recognition, loyalty, and positioning, providing an in-depth look at how brands use these elements to reduce customer risk and increase brand value. Harvard Business Review - Heding, T., Knudtzen, C. F., & Bjerre, M. (2020). Brand Management: Research, Theory, and Practice.
This book provides academic and practical perspectives on brand elements and brand equity. It offers insights into how brand elements work together to create a cohesive identity. - Airbnb Marketing Blog. (n.d.). Belong Anywhere: Airbnb’s Brand Story and Messaging Strategy.
Airbnb’s blog and case studies discuss their “Belong Anywhere” campaign, which successfully created brand awareness and community, exemplifying effective brand messaging. Airbnb Blog - The Coca-Cola Company. (2023). The Coca-Cola Brand Book.
This guide showcases Coca-Cola’s iconic branding elements, particularly focusing on logo and color consistency and the global recognition they’ve built over the decades. Coca-Cola Company - Loyalty360. (2023). The Power of Loyalty Programs in Brand Building.
This article explores case studies of brands like Starbucks and Sephora, emphasizing the role of loyalty programs in brand equity and customer retention. Loyalty360 - Brand New (by UnderConsideration).
A popular blog that frequently analyzes brand redesigns, logos, and color schemes. It offers insights into the rationale behind brand identity choices for well-known companies. Brand New
