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What is Branding?

Today’s Tip

Best Practice: Branding is the process of creating a brand; a perception that people have in their mind about a company.

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Today’s Article:  What is Branding?

Branding is the process of creating a brand. A brand is more than a name and logo. It is the perception that people have in their mind about a company, product or service. There are four types of brands: unintentional, intentional generic, value added and luxury brand.

When a company just selects a name and logo without going through a branding process, they are creating an unintentional brand. What brings people to a company, product or service is not just a catchy name and logo – it is what value it provides. Without going through a well thought out branding process, there will be missed opportunities for greater success.

When a company selects a name and logo by going through a branding process, they are creating an intentional brand. Intentional brands position the company, product or service for more sustainable success by maximizing all the opportunities to create success. There are three types of intentional brands: generic, value added and luxury brand.

According to a generic brand is a no-name’ or non-decrepit brand that is not advertised, and is sold at a price substantially lower than the comparable branded products.

A value added brand has more value or desirability added into the company, product or service and charges a higher price. A luxury brand is built on status or prestige and has the highest price.  We do not have to look any further than bottled water bought in a grocery store to see this.  See below, all three water bottles are 1.5 liter in size and spring water. The difference is the brand.

Bottled Water

Laura Lynn (Generic grocery store brand) 1.5 liter of spring water $.78
Deer Park (valued added brand) 1.5 liter of 100% natural spring water – U.S. source $1.18 (sells for 66% more)
Evian (luxury brand) 1.5 liter of natural spring water – French Alps source $2.48 (sells for 148% more)

An intentional brand goes through a brand development checklist process: review of company offering (product/service description),  knowing who your customer is and what they want (target market analysis), knowing what your competitor’s offer (competitor analysis), selecting a pricing strategy (price analysis), clarifying your value proposition (competitive advantage).

With this brand analysis information, a brand strategy can be created with clarity that connects customers with the best brand promise, brand personality, value proposition and price. With the brand analysis and strategies developed, the brand image and systems can be developed with a brand guide to direct the implementation of the brand.

Do not be in a hurry just to get open. Remember you only have one chance for a first impression – do it right the first time. We all know the winner of the tortoise and hare race. Create a solid foundation to build your business on.  The brand is the solid foundation. It is easier to grow a profitable company when you attract people based on what they desire versus having to try to sell them something.


Image greenblack check mark 22306943Action Step: Write down whether you will be using an unintentional brand or intentional brand. If you’re selecting an intentional brand, will it be generic, value added or luxury?

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