July 15, 2023

Elevate your business with these 5 types of branding strategies

Having a branding strategy is one of the most important things you can do for your business. Distinguishing your brand from the crowd and establishing a solid identity can not only elevate your service offering, but also create trust in potential clients.

If you're looking for ways to separate yourself from a "sea of sameness" and improve your company branding, this article should inspire you to look at your business's branding strategy in a new light.

But first, let's get started with some fundamentals.

Branding strategies

What is a branding strategy?

Before diving deep into the different types of branding strategies, it's essential to clarify what a branding strategy is.

A branding strategy is a long-term plan for the development of a brand to achieve specific goals. A well-defined and executed branding strategy affects all aspects of a business, and brand positioning can directly speak to consumer needs, emotions, and competitive environments.

A great example of a brand identity done well is Airbnb. Their brand differentiation strategy was so powerful that it completely shifted the paradigm of the hospitality industry. By focusing on belonging and inclusivity, they managed to create a global community of hosts and guests, making travel more personal and enriching.

How does branding strategy drive growth?

Many founders and creatives I talk to ask if branding can drive growth. The answer is a resounding yes. A study by Marq reported that consistent brand presentation across all platforms can increase revenue by up to 33%. A well-thought-out branding strategy can work wonders for a business. It impacts customers' perceptions of your brand, instills confidence, and significantly influences their purchasing decisions.

5 different types of branding strategies

So now that we know a bit more about branding strategy and its ability to drive growth let's look at some of the different types of branding strategies available to founders when thinking about branding their company or product.

1. Company name branding

As the term suggests, company name branding involves using the company name as the brand for all products or services.

Apple is the defacto example of company branding at its best. By leveraging their strong company name, they have created a cohesive product ecosystem that enjoys high customer loyalty and recognition because they consistently focus on producing high-quality, innovative products.

2. Individual branding

Individual branding is a strategy where each product has its unique brand name, independent of the parent company name.

A classic example is Procter & Gamble, which houses more than 60 brands, each with its own identity targeting various customer segments. This diversified portfolio has been a key contributor to their sustained market success, creating dozens of successful brands outside the parent company.

3. Attitude branding

Attitude branding is a unique approach where the focus isn't on the product or service, but on the attitude or the way of life the brand personifies.

One of the most outstanding examples of attitude branding is Nike. They sell the idea of athleticism, the "Just do it" attitude, which has led to a passionate customer base and enduring market leadership.

Red Bull is another excellent example of attitude branding. The brand doesn't just sell energy drinks; it promotes a lifestyle of high-energy, extreme sports, and adrenaline-fueled activities.

Their tagline "Red Bull gives you wings" amplifies this attitude of pushing boundaries and associates itself with the thrill and excitement of the numerous extreme sports events it sponsors.

4. Brand extension branding

Brand extension branding involves leveraging the goodwill of an existing brand to launch a product in a different segment.

A classic case is Virgin Group. Known initially for Virgin Records, they successfully extended the brand into diverse sectors such as airlines, trains, mobile services, and even space travel.

5. Private-label branding

Private-label branding occurs when products manufactured by one company are sold under another company's brand.

An example of this strategy in action is the range of "Amazon Basics" products offered by Amazon.

While different manufacturers make the products, they carry the Amazon Basics name, and thus are associated with Amazon's reputation for reliability and value. This helps build consumer trust and loyalty, as customers feel they are getting a reliable product without a high price tag typically associated with brand-name goods.

Conclusion

As we've seen, choosing a branding strategy is critical for founders eager to build a successful brand and drive growth. The key lies in selecting the method that best aligns with your business goals, customer base, and market environment.

By learning from successful brands like Airbnb, Apple, Procter & Gamble, Nike, and Virgin Group, you can harness the power of a well-executed branding strategy to propel your brand and differentiate it from the rest.

I hope you found these insights helpful and are ready to implement them in your own business.

Frequently Asked Questions

Why is a strategic brand plan crucial for my business?

A strategic brand plan or branding strategy is pivotal as it carves out a unique identity for your brand, enabling it to stand out from competitors and fostering customer loyalty. It shapes how consumers perceive your brand, impacting their purchasing decisions and stimulating business growth and profitability.
How does a branding strategy influence my company's market position?

A robust branding strategy can position your business as a leader, innovator, or valuable contributor in your market. By defining your unique selling proposition and communicating it effectively to your target audience, you can set your products or services apart, giving your company a competitive edge.
How can branding strategy enhance customer loyalty and advocacy?

A strong branding strategy can foster customer loyalty by consistently delivering value and building an emotional connection with your audience. Loyal customers are more likely to become brand advocates, spreading positive word-of-mouth and helping attract new customers.
What role does a branding strategy play in product launch success?

A well-crafted branding strategy plays a pivotal role in product launch success. It helps create anticipation and demand before the launch, ensure a consistent message across all marketing channels, and align the new product with your brand identity, all contributing to a successful product introduction.