We’re going to answer the question, “Why is a strong brand identity important?”
McDonald’s, MTV, Disney and Starbucks. They have one thing in common; a strong brand identity.
Yes, they’re all successful in what they do, but their individual brand identities help them stand out from the crowd and catch the eye of the consumer.
What is Brand Identity?
Brand identity is how the business or company would like to be seen by the consumer.
Their brand name, logo, website and other visual elements of the company all contribute to the overall brand identity.
However, how a business wants to be perceived and how they are actually perceived are two different things.
Brand image is how the consumer views the business or company. If this becomes negative, then the company has to reconsider rebranding the company or it may risk a dive in sales and business.
For example, Hedi Slimane rebranded Yves Saint Laurent in 2012. By the end of 2013, the company had net sales of €556.9 million. An increase on the €475 million the year before.
Why is a Strong Brand Identity Important?
A strong brand identity can be the difference between a good and a mediocre company.
There are many companies that get to a point where the brand identity outgrows the quality of the product.
For example, Starbucks are the first name anyone thinks of when the word ‘coffee’ is mentioned.
When you boil it down, there isn’t actually anything that special about the caffeine product that Starbucks provides, but this doesn’t stop the company selling an estimated 3.8 billion cups of coffee a year.
So if it isn’t the quality of the coffee that keeps loyal customers returning day after day, what is it? Could it be the strong brand identity?
Consumers wear it as a badge of honour when they carry a cup bearing the green siren.
They like to be associated with the brand as Starbucks is seen as ‘cool’ and ‘sophisticated’.
Consumers also strive to fit in. They see other people drinking Starbucks and want to be a part of it.
Everyone decides to jump on the bandwagon, which further propels the business to successful heights. Indeed, Starbucks’ elevation above its is a prime example of why a strong brand identity is important.
The Impacts of a Strong Brand Identity
Think about the most famous companies and businesses in the world and you can guarantee that they have a huge number of followers.
A good way to gauge this is the amount of followers/likes they have on the world’s most popular social networks.
Summary – why is a strong brand identity important?
The bottom line is, no successful company has become so without having a strong brand identity.
A company do well from having loyal customers and creating a strong brand identity can ensure this.
Applied VC specialises in creating unique business plans, of which brand identity is an important part.
For more answers to “why is a strong brand identity important?” or any other business plan advice do get in touch on 020 7099 4963 or email us at firstname.lastname@example.org.