A Brand is the image and personality of a product or service that a business provides. A product’s features, such as logos or slogans, make it unique and different.
Branding was originally used hundreds of years ago to differentiate cattle. Cattle ranchers used branding irons to burn symbols on their livestock. They branded them so that slaughterhouses could identify from which ranch the cattle came.
As commerce evolved, these symbols became synonymous with the reputation and quality of the goods, laying the foundation for modern branding practices.
Farmers also branded their livestock so that it would be easier to find them if they were stolen.
However, brands are now more than just a means of differentiating products. Today, brands also convey a ‘promise.’ The promise is that the product you buy will meet the standards the manufacturer seeks to deliver.
Brands are intangible reputational assets. In fact, they are the most valuable asset of many corporations. Intangibles are assets you cannot touch, they have no physical form but are valuable for the company.
Why is branding important?
Quality branding can result in higher sales of a product. In fact, even products that are associated with certain brands benefit from higher sales too.
A good example would be someone who enjoys Coca-Cola and tries other soft drinks by the company. The Coca-Cola Company also sells Sprite, Fanta, and Powerade.
The positive brand image of Coca-Cola helps drive a consumer to other Coca-Cola Company products.
Some companies give each of their products its own brand name. We call that strategy individual branding. It contrasts with umbrella branding, in which the whole product range has the same name.
The psychology behind branding
Brands have a psychological as well as an experiential aspect.
Put simply; the brand experience includes “all the interactions people have with a product, service, or organization.” says Marty Neumeier. Neumeier is Director of Transformation at Liquid Agency Inc.
Brand image is the consumers’ perception of certain brands. Not only does it provide a mental image for the consumer, but also emotional value.
For example, Volvo is famous for its safety while we all see Ferrari as sporty. A positive brand image can do wonders for a company.
Establishing a brand
When brands develop a high degree of popularity, or they become famous, they have brand recognition.
Brand recognition can grow. In other words, its popularity can increase. Eventually, it becomes a brand franchise.
Having brand recognition means that you are on people’s radar. How can brands improve their recognition? By increasing awareness of the brands.
Brands want people to know they exist, so they expand their reach. Marketing executives can achieve this through advertising, word-of-mouth, and engagement in the community.
Once brands have proved themselves in the market, they want customers to return. They gain customers by providing a compelling experience.
If a company can sustainably achieve this, then consumers remain happy. It is important to continue nurturing a sense of loyalty toward specific brands.
Brand management is the marketing technique that aims to improve the reputation of brands or products.
The ultimate goal – brand loyalty
All brands in the market want their consumers to come back on a regular basis.
Companies achieve brand loyalty if they prove to their consumers that their priorities include maintaining individual customer relationships.
This loyalty transcends mere satisfaction, often creating an emotional attachment to the brand that can withstand market changes and competitive pressures.
Some loyal customers even refuse to purchase knock offs (brands that sell at a much lower price).
Rebranding
Rebranding is the process of changing a company’s image and feel, i.e., changing its brand. The aim is to create a completely new image, so that the company is attractive to consumers.
We can also use the term for products and services.
Marketing executives rebrand to raise awareness of a company’s new identity.
Examples of rebranding in history
Many companies throughout history have had to reinvent themselves to address negative perceptions or appeal to new audiences. Below, are two notable case studies of successful rebranding from different industries. Each example highlights what the brand was like before, why they chose to rebrand, what changes they made, and how it all paid off.
Apple
In the mid-1990s, Apple was on the edge of bankruptcy. People saw it as a dying computer company with a messy range of products. However, when co-founder Steve Jobs returned in 1997, Apple launched a bold rebranding campaign to position itself as a creative rebel in the tech industry. This involved unveiling a simpler, monochrome logo (replacing the old rainbow apple) and a famous ad campaign known as “Think Different”, which honored visionaries like Albert Einstein and Mahatma Gandhi. Apple also released the colorful iMac, showing a fun and forward-thinking style. It didn’t take long after this rebranding effort for the company to regain market share and shake off its old image. Since then, products like the iPod and iPhone have pushed Apple’s new identity to new highs, with the company reaching a $1 trillion market valuation.
Old Spice
Old Spice has existed since 1938, but by the 2000s, it was in need of big branding refresh to appeal to younger consumers. The company launched a significant rebranding campaign in 2010. As part of the rebranding campaign, new funny and outrageous ads, like “The Man Your Man Could Smell Like” commercials starring Isaiah Mustafa, were launched. These over-the-top, fast-paced, and comedic ads went viral on TV and social media, giving Old Spice a modern, fun image. They also redesigned product packaging to look more current. The results were immediate: sales soared. Old Spice soon became the top-selling men’s body wash in the United States. By embracing humor and rebranding, Old Spice went from a tired old brand to a favorite among younger shoppers.
Key Takeaways:
- Know When to Change: Many rebrands happen because a brand’s image is no longer working. Recognizing that moment is crucial for survival.
- Stay True to Core Values: Even though rebrands involve change, the best keep the heart of the brand alive.
- More Than a Logo: While logos are important, deeper changes in products, messaging, and customer experience matter more.
- Bold Messaging Pays Off: Sometimes a big, attention-getting marketing campaign can completely reshape how people see a brand.
- Measure the Impact: A real test of rebranding is in the results: higher sales, market share, and stronger customer connections. These examples shows how a well-planned rebrand can lead to lasting success.
Video explanation
This educational video explains what a ‘Brand’ is using simple and easy-to-understand language and examples.