What is branding and how does it work?

Brands are everywhere and have become a popular buzzword in recent years. Some people believe branding is just a logo with pretty graphics, but it's much more. In simple terms, a brand is an organization, product, or service with a distinct personality—a ‘feel’. Its purpose is to project clear values and aims.

Iconic brands from around the world

Products are what the organization makes and sells.

Let’s look at a classic example, Apple. Apple sells premium products; they highlight beautifully designed, clean, and simple products. The product projects the idea of what they want you to think about their company. Apple is an example of a product-led brand because they use their products to distinguish themselves from the competition, not necessarily because it’s better but because it’s unique.

The physical environment of a brand can include the layout of items/stalls, interior decoration, or the experience of the place.

Consider fo example, when you go to a fish market, there’s fish everywhere. You will see scales used for measuring fish, fishermen and their boats, and there is the smell as well. All fish markets are environmentally led. The same applies to hotels; most people go to a hotel because of the environmental factors.

Communication is how the organization talks about itself and to its audience.

An example of a communication-led brand is Nike. Nike’s identity revolves around its consistent messaging and promotion. There isn't anything special about a Nike-branded t-shirt, but we want it because of the message behind Nike. This is a very powerful form of branding as it can infiltrate our culture and lifestyle.

Service plays a major role in our purchase decisions; you wouldn’t want to pay for poor service, would you?

Service plays a major role in our purchase decisions; you wouldn’t want to pay for poor service, would you? It is important to note that in a service-led organization, the people who work for the organization are the brand. Service brands are difficult to manage because they depend on the attitude and mood of the workers, whereas something like a product brand does not. Let's look at a good example of a bad service brand, KFC. In Trinidad and Tobago, KFC has a bad reputation for poor customer service. The cashiers move slowly, they don’t seem to care and have an attitude; and while this may not be true all the time, it has created enough of a perception that it has become part of the brand."

In conclusion, branding extends beyond logos—it encompasses products, environment, communication, and behavior. Apple and Nike demonstrate how aligning these elements creates powerful connections. Conversely, mishandling aspects like service can damage reputation. Crafting a compelling brand narrative is crucial for shaping perceptions and consumer behavior. Learn more in Wally Olins: the brand handbook.

Reference: W. (2017). Wally Olins: the brand handbook. Thames & Hudson.