January 20, 2017

Understanding brand identity and its impact on an organization

Brand identity is the true reflection that an organization portrays to its customers.  Brand identity is a reflection of the promise, from the company to its customers, assuring them of true value. It’s how customer look at the brand and how to identify the brand. It helps in distinguishing the aspects and characteristics of one company from the other. It is in fact a bridge built on trust and credibility between the company and the consumer.

Understanding a particular brand and perceiving its value can be achieved via building a strong brand identity of the product. In order to avoid any misconceptions about the company and its products, it is very important to create an identity that is in par with its image and to produce a perfect brand identity it is imperative that an organization takes stock of the following-

  • The company’s strength and weaknesses
  • The various opportunities it can cash into
  • The market towards which the company is working at
  • Their own goals and values
  • The persona it wants to project and pursue in the mindset of the consumers

Examples of building brand identity in the real world

Pantene brand identity

It is necessary to attach a particular sentiment with the identity of the brand, as it will echo the personality and the value of the product. For example if a particular brand like Pantene comes into mind it will always depict long and thick hair. The brand deals in hair & care products and its identity is in direct relation with its image projecting its advantages.

Building a identity for the brand is difficult and requires a lot of time as well as investments in promotional and brand building activities. To entice the consumers, the brand associates itself with numerous famous personalities. These celebrities help in making an instant impact on the perception of the people for the brand, by creating a unique brand identity for the products.

For example – As soon as a person thinks of the famous athlete Tiger woods, it reminds us of Gillette. Similarly, when someone thinks of Sachin Tendulkar, it reminds us of MRF (his bat). When someone thinks of Michael Schumacher, it reminds us of Ferrari. These memories go hand in hand into building a brand identity and hence result in better sales and revenues.

Sachin MRF bat as a brand identity symbol

How to build a strong brand identity?

An organized, strong and consistent marketing team should handle the development of brand identity for a firm. After determining the key goals and the particular section of the market it wants to adhere to, it becomes quite easy to create an identity that would prove to be fruitful. This identity echoes the message that a company wants to send to its clientele.

Recognition in the customers mind is instant with the right brand identity and association. It is also beneficial in building and maintaining customer loyalty. In order to create the right atmosphere for selling a product it is imperative that the brand identity should be unique and distinguished while portraying its true characteristic. The main components of the brand identity are the following-

Advantages of having a strong brand identity

  • Drives the Vision of the Company
  • Improves the work culture of the company (clear goals)
  • Improves brand Personality
  • Maintains the positioning and even improves it
  • Immediate connect with customers

Disadvantages of brand identity

  • If a company is unable to form a favorable brand identity, it may lose its positioning in the market.
  • Brand identity plays a crucial role in any organization and if not handled properly, it will showcase that the company is not in touch with the realities of the market and its current trends.
  • The inability to understand the market sentiments can have contrary affects and may lead to loss of sales and less revenues.

Brand identity vs Brand Image

Many of our readers after reading this article will be confused between brand identity vs brand image. The explanation is very simple. Identity is the way you want your customers to see you. Brand image is the realistic way that customers see you. Hence, concentrating on brand identity helps create a strong brand image. Consequentially, if you are portraying the wrong brand identity, the brand image will be even worse.

Once a brand’s identity locks itself in the consumers consciousness it is very difficult to uproot the image. The chief disadvantage of a brand identity is that if for any reason the identity does not click with the buyers, it may show adverse results and the company may take a very long time to overcome its identity crisis.

The primary advantage of building an identity for the brand is in its capacity of providing a familiarity and trustworthiness to its consumers. It can be in the form of familiar colors as if red is associated with Colgate Toothpaste and blue with Pepsi or it may also be a special tagline like “Taste the thunder” for the soft drink “Thumbs up” and “Take a break” for chocolate “Kit-Kat”.

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About Hitesh Bhasin

I love writing about marketing and advertising. Would you like to ask me a question? Kindly send your queries and feedback via this Forum. You can also get daily marketing updates via email. Let's stay in touch :)

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