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The Importance Of Branding

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The Importance Of Branding


Branding is a practice in the field of marketing, in which a company or a person coins a name. This helps the product or service to stand out from the competitors.

When a company like McDonald’s is mentioned, the iconic yellow ‘M’ comes to mind immediately. This is a result of effective branding over several years and has consistently kept the multi-million dollar burger chain. Relevant and identifiable even with changing trends and markets. In this way, branding is extremely important for any company and can make or break your business.


Common disbelief is that branding is simply a logo or tagline. It is in fact something much larger – including each aspect of a consumer’s overall experience. Branding is essentially the way consumers perceive or consumer’s psychology towards a product when they think or hear about that product or company.

Brand name

Uniqlo, the Japanese casual wear designer, and retailer, partnered with Novak Djokovic. It is one of the world’s best tennis players, to make an entry into the European market. This strategic importance of branding move paved the way for Uniqlo’s smooth entry into Europe by creating a hype about the brand. Branding promotes a sense of recognition. A prominent and consistent identity helps the brand by registering a certain image in the customer’s mind. They continue to recall when they hear of the brand in other spaces.

For a company, making their brand stand apart from the crowd is crucial. Elements such as the logo of a company are extremely important, as they are essentially the face of the brand. Lacoste, the French clothing brand, has arguably the most unique logo – a bright green crocodile. French tennis player René Lacoste created the logo. He was nicknamed “the crocodile” due to his distinct playing style. the importance of branding states that,  this unique brand image has made Lacoste instantly recognizable around the world.

Branding Goals

Branding is not only important for creating an impression on the consumers, but it also tells the market what to expect from a specific label. For instance, brands like Louis Vuitton are famous for their iconic handbags and travel bags, rather than their clothing lines. Business sustainability in both the local and global markets, creating a strong and well thought out image is crucial. For a status savvy customer, owning a Hermes Birkin is invaluable, as Birkin bags are only made by Hermes and cannot be found elsewhere. Purchasing such an expensive item brings a lot of joy and satisfaction to the customer simply due to their immense attachment to the brand image of the company, and the status value it has created.

As such, branding holds great importance for all companies, whether large or small, as it is the first point of interaction between the company and its consumers. It also creates revenues and market share, creates consumer preferences for the brand, prevents new competitors from entering the market, increases the brand’s market value and helps the brand in attracting new consumers from different segments.

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