The Importance of Branding in Business
1. Introduction
In todays business world, the success of brand development depends on various strategic plans that take the brand to the next level. Each brand has its own distinctive side. The study of brands and their characteristics is a branch of marketing known as branding. This involves creating a unique name, symbol or design that represents a product or company and instilling this in the minds of consumers.
2. What is a Brand?
A brand is a combination of a name, term, design, symbol, or other feature that identifies one seller’s good or service as distinct from those of other sellers. A brand may identify one item, group of items, or all items of that seller. If used for the latter purpose, it is called a private label brand (Preston, 2012).
3. Characteristics of a Brand
There are many characteristics that make up a brand. Some of these include:
– A name: This is the most basic and essential element of a brand. It is what customers will use to identify the product or company and it needs to be easy to remember and pronounce.
– A logo: This is a graphical representation of the brand that can be used on products, packaging, stationery, and promotional materials. It should be simple and easy to reproduce.
– A slogan: This is a short phrase that encapsulates the essence of the brand and what it stands for. It needs to be memorable and meaningful.
– A design: This encompasses the overall look and feel of the brand including colours, fonts, and images used. It should be consistent across all touchpoints.
– A tone of voice: This refers to the way in which the brand communicates with its audience. It should be appropriate for the target market and reflect the personality of the brand.
4. Types of Brands
There are four main types of brands:
– National brands: These are brands that are known throughout the country and have high levels of awareness. They are usually associated with quality and reliability.
– International brands: These are brands that have been launched in multiple countries and have a global reach. They often have higher price points than national brands due to their premium positioning.
– Local brands: These are brands that are specific to a certain region or city. They often have strong ties to the local community and can be seen as more trustworthy than national or international brands.
– Private label brands: These are store brands that are sold by supermarkets and other retail outlets. They are usually cheaper than other types of brands but may not be seen as being as high quality.
5. The Process of Branding
The process of branding involves creating an identity for a product or company and then promoting it to customers through marketing initiatives such as advertising, PR, and social media. The goal is to build up equity in the form of customer loyalty and goodwill so that customers will continue to purchase the product or use the service even when there are competing options available (Kapferer, 2012).
The most important part of branding is understanding what makes your product or company unique and then communicating this to customers in an impactful way. It is also important to keep track of how customers perceive your brand over time and make sure that your marketing campaigns are aligning with these perceptions.
6. Starbucks as a Case Study
Starbucks is a global coffee chain that was founded in 1971 in Seattle, USA. The company has since expanded to over 28,000 stores in 76 countries around the world. Starbucks is the largest coffee chain in the world and is known for its premium positioning and high-quality coffee.
The Starbucks brand is built on tradition, elite, and Europe. These three pillars have helped the company to expand into new markets and become a major player in the global coffee industry.
In recent years, Starbucks has been focusing on expansion into Asia, Latin America, and Eastern Europe. The company sees these regions as having huge potential for growth and has been investing heavily in opening new stores and developing new products specifically for these markets.
Starbucks cafes are now a common sight in major cities around the world and the company has become synonymous with coffee culture. The Starbucks brand is positioned as the most trusted brand in the world and values such as quality, trust, and community are at the heart of everything they do.
The company has also been successful in extending the Starbucks brand beyond coffee with initiatives such as the launch of their own line of branded products (e.g. bottled Frappuccinos) and the development of new store concepts (e.g. Starbucks Reserve Roastery).
The Starbucks branding strategy has been extremely successful in making the company one of the most recognizable brands in the world.
7. Conclusion
Branding is a critical part of any business and there are many different factors to consider when developing a brand strategy. It is important to understand what makes your product or company unique and then communicate this to customers through marketing initiatives such as advertising, PR, and social media.
Starbucks is a great example of a company that has been successful in branding their product on a global scale. The company has built up a strong identity based on tradition, quality, and trustworthiness which has helped them to expand into new markets and become the largest coffee chain in the world.