Building a winning brand identity: step-by-step guide for startups

What company do you associate the color red and youthful style with? Sure, you most likely thought of Coca-Cola or McDonalds. These are the results of these companies' amazing brand identities. Actually, this can be achieved by any business owner, regardless of the niche or size of the company. However, with the growth of a number of companies in recent times, creating a unique image for your business can seem like quite a daunting task.

Brand identity – what is it?

For many people, the term ?brand identity? means logo. However, this is not the case at all. Obviously, a logo is an important element of every business and part of the whole company's brand identity strategy. In fact, brand identity is a broader concept that defines how different your business is from your competitors.

Many of you have seen that some of the designs of some websites/apps and their philosophy seem to be completely the same. It's much easier to just opt for the “Ctrl V + Ctrl V” tactic. That way, potential customers will have a hard time understanding and remembering who you really are. Here's what Elon Musk, CEO of Tesla and SpaceX, says:

?Brand is just a perception, and perception will match reality over time.?

Marketing experts identify a few of the most important elements of brand identity:

1. Company values. These are the core principles guiding a brand’s mission, reflecting its commitment to specific ideals like sustainability, innovation, or integrity. These values shape business decisions, inspire employees, and resonate with customers, building trust and loyalty.
2. Brand image. The brand image represents how the public perceives the brand, formed by customer experiences, advertising, and public relations. It blends the brand’s visual identity, messaging, and tone.
3. Attributes. Attributes are tangible and intangible qualities that define the brand’s unique character, such as product quality, reliability, or exclusivity. These characteristics differentiate the brand from competitors, reinforcing its identity and appeal.

In 2024, every company that aims to succeed in the near future is trying to create memorable branding for their customers.

5 reasons for developing brand identity

We've compiled the five most important benefits you'll get from having powerful branding that differentiates you from other competitors.

1. Increasing customer loyalty. When brand values align with your audience's interests, it strengthens their commitment to the company.
2. Enhancing brand trust. A clear and consistent identity helps the brand to be perceived as a professional in its field.
3. Assistance in marketing campaigns. A strong brand identity makes it easier to create a unified and compelling message across all marketing channels. Imagine what effective marketing campaigns Apple or Amazon have because almost everyone knows what those brands are.
4. Better brand value. A business with memorable branding is perceived as more valuable and meaningful to customers. This can allow for premium pricing and a stronger market position.
5. A high percentage of company recognition. A vibrant identity makes a brand recognizable and noticeable among competitors. Imagine how your average sales and revenue would increase if every second user recognized your company by looking at the logo.

How to create a memorable branding?

The main mistake many startups have noticed lately is underestimating the process of creating a brand identity. Brand identity is not only about creating a memorable logo that caters to the interests and requirements of your target audience.

There are actually many more items that you have to come up with and implement into your business strategy to attract customers. Let us move on to the main part of this newsletter that will allow you to change some things in your company to increase efficiency. We have prepared a guide that consists of 4 important steps.

Step 1. Identify your target audience

Obviously, the first step in the brand identity development process is to analyze and understand the requirements.

Once you understand who your target audience is, what their interests are, and what they want to see, the brand identity development process becomes an easier task for you. If your potential customers are young people, you should use bright colors and bold fonts. If you are targeting a mature and affluent audience, your style should be more subdued. Let's break this step down with a concrete example by looking at two companies that create and sell clothing - Nike and Versace.

Nike skillfully uses a variety of approaches for different audiences, balancing youth and professional audiences. For young and active people, Nike creates advertising campaigns with bright, on-trend sneakers and an emphasis on self-expression.

Versace for the mainstream audience, the brand emphasizes Italian heritage, bold designs, and the use of expensive materials, creating an image of glamour and elegance.

Step 2. Understand your mission

Developing corporate identity that will embody your organization takes its root from understanding your mission.

When you’re clear on your mission, every branding element—from visual style to tone of voice—aligns with a purpose. A strong, mission-driven identity helps your brand stand out in the marketplace, making it memorable and meaningful to your audience.

Whether your goal is to innovate within your industry, provide exceptional service, or advocate for a cause, knowing your mission ensures that your brand identity resonates deeply with those who share your values. This clarity is what gives your branding staying power, fostering a loyal following and setting you apart from competitors.

Step 3. Develop a corporate logo

Undoubtedly, a logo is one of the most important elements of branding in general. Why is that? Users and customers see your logo on any product, page, social media, or banner. It is what makes people distinguish companies from a large number of competitors in the market.

A branded startup logo should be unique and relevant to your target audience. It should also contain elements that will emphasize its specialty. For example, in the Starbucks logo, the main feature is a female mermaid.

Step 4. Come up with a Tone of Voice

A distinctive tone of voice is essential for effective brand identification, as it conveys your brand’s personality and sets it apart from competitors. Your tone of voice shapes how customers perceive you, influencing their connection and trust. It’s not just about what you say but how you say it, making every interaction feel consistent and authentic. Whether warm and friendly or professional and authoritative, the right tone builds familiarity, helping audiences recognize and remember your brand.

To create a unique tone of voice, start by considering your brand’s core values and mission. Formal or conversational, humorous or straightforward, a well-defined tone should feel natural and reflect the brand’s identity at every touchpoint.

Final thoughts

In fact, brand identity development is a process that has a beginning but no end. This means that you have to develop basic things and constantly refine them as your business grows. Sometimes, to make your business grow upwards, you need to explore new horizons. For example, custom software can often help close important tasks and increase efficiency.

Something else to read: Top 8 Great Design Agencies in Europe

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