The Importance of Brand Identity and Brand Strategy

While at O2 Consulting our focus is on lower funnel SEO and SEM marketing, it is imperative to understand the importance of brand strategy and brand identity.

What is brand identity?

Brand identity, when done properly, is a trait that should be conveyed when customers think of your brand. In the consumer products category some characteristics a brand may want to convey are Luxury, Quality, Value, Innovation, or a combination of the above.

Often companies that wants to offer products with different characteristics and target audiences, will create additional brands, so as not to dilute their existing brand identity.

This is very common among auto manufacturers who have a line of products under one brand to appeal to the broader public, then have an additional brand to target the luxury market (Ford own Lincoln, GM own Cadillac, Toyota own Lexus, Hyundai own Genesis, Nissan owns Infinity and Volkswagen own Audi), luxury car buyer’s may pay $100k for an Audi, but would be hesitant to do so for a Volkswagon.

These companies have successfully created luxury brand identities via marketing, and have a brand strategy to develop products that match their brand identity.

Why is Branding and Brand Identity Important?

The most obvious purpose for having a brand identity and creating a branding strategy is marketing. Many companies allocate a large portion of their marketing budget for “upper funnel marketing” and while some of that marketing maybe for specific products, a large portion of it is for brand marketing. If your brand doesn’t have a consistent brand identity, then upper funnel, brand marketing will not be effective.

Additionally, having a strong brand identity can create “free” marketing; either in the form of complimentary product offerings to existing customers, or from potential customers who have seen your products elsewhere.

Brand strategy begins with product development.

Creating a brand identity isn’t just about slapping on a logo to a variety of products, but should be part of the product development stage. Whether luxury, value, quality or any other brand identity you create, each product should be developed with that in mind.

Kitchen Aid has created a strong brand identity for quality products and does an excellent job of branding their products visually, not just with a logo, but by having a similar aesthetic.

One aspect of branding that is often overlooked is that your brand should convey expertise in a specific category. Toyota has a strong brand and excellent reputation for quality, but that won’t necessarily transfer if Toyota decided to get into the sneaker business.

Brand Identity isn’t only for product manufacturers, but is equally important for businesses in retail, healthcare, or service industries. Creating a clear brand strategy and strengthening your brand identity is an essential part of any marketing strategy.

For a free digital marketing consultation, reach out to O2 Consulting