What is brand identity? And how to create a strong brand

According to the American Marketing Association⁠(opens in a new tab or window), brand identity refers to the “visual and symbolic elements that represent a brand.” This includes a brand’s name, logo, color scheme, typography, and design elements. When these elements are brought together, they create “a recognizable image for the brand, which consumers can identify and connect with.”

Brand identity is not dissimilar to a person’s individual identity, which is the sum of their history, influences, values, belief system, and personality. As entrepreneur and best-selling author Seth Godin⁠(opens in a new tab or window) defines it, “A brand is the set of expectations, memories, stories, and relationships that, taken together, account for a consumer’s decision to choose one product or service over another.”

In essence, a brand identity represents everything a business embodies and stands for, and helps the business distinguish itself from its competition.

Thus, brand identity is an important part of a business’ overall brand strategy. By honing its identity, a business cultivates an image and unique perception in its customers’ minds. Ultimately, a brand identity’s purpose is to communicate not just what a business can offer consumers, but why they’re in business in the first place. With a fully fleshed-out brand identity, it’s easier for customers to get behind you and give their support.

And there is evidence to prove this. An Akeneo study on consumer behavior⁠(opens in a new tab or window) showed that 52% of respondents were willing to pay more for products that communicate their company’s brand values, with 82% being willing to spend up to 30% more.

Thus, a strong brand identity is more than just a story or a visual identity. Eventually, it becomes an asset to your business, influencing buying decisions and the perceived value of your products or services. Internally, a strong brand identity can also give employees a sense of purpose and connection to their workplace, and in turn, improves engagement.

Brand identity vs. brand image: What’s the difference?

It’s easy to get confused between brand identity and brand image. However, they’re very different. Understanding their differences and overlaps is important for clarity and strategic branding.

Brand identity reflects a business’ internal perspective and is created by the people behind the brand. In other words, it’s how a business wants to be perceived by the public.

On the other hand, brand image is how an audience perceives a brand. This external perspective includes the feelings, thoughts, and expectations of consumers after interacting with or encountering a brand. Unlike brand identity, brand image is not something a business can control, as it depends on consumers’ interpretations.

Here’s a quick breakdown of how the two differ:

Brand identity is:

• Defined by the brand
• Strategic and aspirational, representing the business’s vision
• Outward-facing
• Made to create a consistent and appealing representation of the business

Brand image is:

• How the market perceives the brand
• Reactive, resulting from customers’ interactions with the brand
• Inward-facing
• Cultivated by the brand to align with the brand identity and create positive associations and customer loyalty

Brand identity vs. brand equity

Brand equity can be defined as a brand’s perceived value by its customers—often as a product of a brand’s identity and image.

Positive interactions lead to positive perceptions and, in turn, build positive brand equity. In the same way, brands can incur negative brand equity too. When customers have unfavorable experiences with a brand, it can lead to a poor brand image and negative brand equity.

Having a clearly-defined brand identity is essential to the development and success of your marketing strategy. Think of it as a compass that guides all marketing, communication, and product decisions, keeping your brand consistently aligned with its purpose.

Here’s a breakdown of some of the key reasons why building a strong brand identity is important for your business:

It’s a market differentiator

The fundamental role of brand identity is to differentiate a business from other competitors in the industry. In a highly saturated and competitive global market, businesses must establish a unique identity that allows them to stand out and capture consumer attention. A strong brand identity can help position your brand distinctly in consumers’ minds and give you a sustainable competitive advantage.

For example, a brand that specializes in household cleaning products can differentiate themselves from their competitors by carving out a brand identity rooted in sustainability and eco-friendliness. By making their values clear through their messaging and packaging materials, they’re able to compete with other brands at similar or even lower price points.

It helps build trust and brand loyalty

For many consumers, consistency signals reliability. When you are able to communicate your values consistently through your brand, you can more easily facilitate brand trust, a sense of community, and belongingness among consumers.

According to a study by global communications firm Edelman⁠(opens in a new tab or window), customers who trust a brand are more likely to develop brand loyalty⁠(opens in a new tab or window).

It molds consumer perception

Brand identity is more than just the visual aspects. It’s also a tool for influencing how consumers perceive your brand. The visual elements of the brand, such as the colors and packaging, can affect consumer perception of the brand. Meanwhile, a well-crafted narrative helps consumers understand the brand’s relevance and value proposition.

Brand identity can shape how your customers interpret their experiences with your brand, helping to form specific desired associations in their minds. This lets you influence their first impression and build upon that to create your specific desired associations.

It supports brand equity

As mentioned above, a consistent brand identity can help build stronger brand equity over time. This leads to an increase in the perceived value of goods and services, and leads to positive business performance. A well-established brand identity is closely linked to higher levels of brand equity.

Strong brand equity also keeps revenue steady and reduces marketing costs. Retaining already loyal customers is more cost-effective than acquiring new ones.

Brand identity comprises various visual and non-visual elements that tell audiences what your distinctive flavor is when combined together. These elements should all come together cohesively to communicate the look and narrative you wish consumers to perceive.

The biggest and most successful businesses treat their brand identity as an integral part of their overarching business strategy. Doing so requires a lot of work, but it can increase brand awareness and recognition, eventually leading to more sales.

Here are some examples of businesses with strong brand identities:

Apple

With over $574 billion in brand value, Apple frequently tops the list of the most valuable brands in the world⁠(opens in a new tab or window).

Here’s a quick breakdown of why Apple’s brand identity, which is built upon clear messaging, distinct product design, superior quality, and lifestyle-driven community, works:

• Clear brand values: The famous half-bitten apple logo is an evolution of the brand’s original logo, which features Sir Isaac Newton reading under an apple tree. Coupled with the slogan “Think different,” Apple sends a clear message that it is a company that values innovation and creativity.
• Consistency across touchpoints: What do Apple’s devices, advertisements, website, physical stores, and product packaging all have in common? They’re all designed to provide users with a simple, sleek, and intuitive experience.
• Premium positioning: Apple offers its products at a premium price point, rarely lowering its prices to match its competitors. By positioning itself as a luxury brand, Apple creates an aura of exclusivity that other brands can’t compete with.

Coca-Cola

Coca-Cola is a classic example of a consistent brand identity that brings in a lot of monetary value. Considered a cultural icon, Coca-Cola’s distinct brand identity works because of its:

• Timeless visual identity: Coca-Cola’s swooping logo and striking red-and-white color scheme haven’t changed much over the years. The brand understands that keeping these elements largely consistent creates strong brand recognition and trust across generations.
• Emotional branding: Coca-Cola doesn’t simply sell soda—it sells happiness and nostalgia. This is exemplified by its slogans “Open Happiness” and “Taste the Feeling” and its associations with holidays like Christmas.
• Adaptability to trends: Though consistency plays a huge part in the success of a brand, brands should also know when to adapt to consumer trends. While maintaining its core identity as a delicious and refreshing drink, Coca-Cola has made efforts to provide healthier options like zero-sugar Coke and switch to more sustainable packaging.

Duolingo

The educational app is known around the world for making language learning fun and accessible. Its neon green brand color and gamified approach make it stand out among competitors, as well as its:

• Playful and distinct visual identity: Duo, the owl that serves as the app’s logo and mascot, embodies a playful and quirky persona that reflects the brand’s approach to language learning.
• Consistent tone of voice: Duolingo’s tone of voice is motivational, rooting for learners and encouraging users not to lose their streaks. By injecting a casual tone of voice and a wry sense of humor into its communication, the brand feels relatable and unintimidating to users.
• Adaptability to trends: Duolingo is a great example of a brand embracing its brand image. Duolingo’s persistent reminders have become a running joke online. But instead of pulling back, the brand doubled down and gave Duo the owl a meme-able passive-aggressive personality that resonates with its users.

Creating a strong brand identity requires research, investment, and careful execution. It is a strategic process that involves multiple steps and a concerted effort. It also demands a clear-cut understanding of the industry and your business’ values and goals.

Here’s how to build a brand identity⁠(opens in a new tab or window) for your business:

Building a strong brand identity requires a concerted effort and massive investment that you don’t want to go to waste. This is why maintaining it after it’s been established is key. Maintaining your brand identity is also an ongoing process to ensure your brand continues to resonate with your target audience through the years.

Here are some of the best practices that you should focus on:

Building a brand identity is more than simply choosing a name and a logo. It’s about defining who you are as a brand, what you stand for, and how you want consumers to remember you. As markets and customer expectations shift, staying true to your identity while staying open to change is essential to your success. When building a brand identity, always remember to be intentional, consistent, and authentic. In doing so, you can create a brand that doesn’t just stand out, but stands the test of time.