Challenges in creating a unique brand identity

Creating a unique brand identity is a crucial aspect of building a successful business. A strong brand identity helps distinguish your company from competitors, connects with your target audience, and builds brand loyalty. However, the process of establishing a distinctive brand identity comes with its own set of challenges. This article will explore some of the common challenges businesses face when trying to create a unique brand identity and provide insights on how to overcome them.

• Treating brands as assets

Treating brands as assets refers to recognizing and valuing a brand as a valuable and strategic asset for a company. A brand represents the perception and reputation of a company, its products, and services in the minds of consumers. Just like other tangible and intangible assets such as buildings, equipment, or patents, a brand can contribute significantly to a company’s overall value and competitive advantage.

Brands can be valued financially, either as standalone assets or as part of a company’s overall valuation. Several methods can be used to determine the value of a brand, such as market-based approaches, income-based approaches, or cost-based approaches. The specific approach depends on factors like the brand’s industry, market position, and financial performance.

Treating brands as assets can indeed pose challenges to building a strong brand identity. Here are some ways in which this approach can create challenges:

1. Overemphasis on Financial Metrics: When brands are treated purely as financial assets, there can be a tendency to prioritize short-term financial metrics over long-term brand building. This can lead to decisions that focus on immediate financial gains at the expense of building a strong brand identity. A brand’s identity is built on consistent values, positioning, and emotional connections with consumers, which may require long-term investments that don’t necessarily yield immediate financial returns.

2. Lack of Authenticity: Treating brands primarily as assets can sometimes result in a focus on superficial or cosmetic changes rather than deep-rooted brand identity. Authenticity is a critical aspect of brand identity, and it is built through genuine brand values, purpose, and meaningful interactions with customers. If a brand’s identity is driven solely by financial considerations, it can undermine the brand’s authenticity and create a perception of insincerity among consumers.

3. Neglecting Emotional Connections: Building a strong brand identity involves creating emotional connections with customers. Brands that are treated as mere assets may prioritize transactional aspects and overlook the emotional dimension. However, emotional connections are vital for building brand loyalty and advocacy. Neglecting these emotional connections can result in a weak brand identity that fails to resonate with consumers on a deeper level.

4. Inconsistent Brand Messaging: When brands are treated as assets, there is a risk of brand messaging becoming fragmented or inconsistent. Different parts of the organization might focus on maximizing financial value without considering the broader brand identity and messaging. This can lead to a lack of coherence in brand communication, confusing consumers and diluting the brand’s identity.

5. Limited Flexibility and Adaptability: Treating brands as assets can sometimes lead to rigidity in brand management. The emphasis on preserving and maximizing the financial value of the brand may discourage experimentation or adaptation to changing market dynamics. However, a strong brand identity often requires the ability to evolve, stay relevant, and adapt to shifting consumer preferences and market trends.

let’s explore a few real-life examples that highlight these challenges:

1. Volkswagen (VW) Diesel Emissions Scandal: Volkswagen, a renowned automotive brand, faced a major setback in 2015 when it was revealed that the company had installed software in its diesel vehicles to manipulate emissions tests. This scandal severely damaged VW’s brand reputation and identity. Prioritizing financial considerations over ethical practices and brand integrity, VW compromised its brand identity as a trusted and environmentally responsible automaker. The incident highlighted the risks of neglecting brand identity in favor of short-term financial gains.

2. McDonald’s “I’m Lovin’ It” Campaign: McDonald’s, a global fast-food brand, launched its “I’m Lovin’ It” campaign in 2003, aiming to establish an emotional connection with consumers. While the campaign achieved initial success, critics argued that it focused more on financial objectives by targeting younger demographics rather than staying true to the brand’s identity. Some critics felt the campaign diluted McDonald’s core values, emphasizing sales over maintaining a consistent brand identity built over decades.

3. New Coke Failure: In 1985, The Coca-Cola Company decided to introduce a new formula for its flagship product, Coca-Cola, known as New Coke. The decision was primarily driven by market research and financial considerations. However, the change sparked widespread backlash and negative customer sentiment. Consumers felt a strong emotional connection to the original Coca-Cola brand identity, and the introduction of New Coke was seen as a betrayal. Ultimately, Coca-Cola had to reintroduce the original formula as Coca-Cola Classic due to the brand identity crisis caused by New Coke.

• Market Competition

In real-life scenarios, market competition can indeed pose significant challenges to a brand’s identity. Here are some examples of how market competition can impact brand identity:

1. Copycat Brands: When a brand successfully establishes a unique identity and gains popularity, competitors may attempt to imitate their branding elements, such as logo design, color schemes, packaging, or messaging. This can create confusion among customers and dilute the original brand’s identity. The challenge for the original brand is to defend its unique identity, protect its intellectual property, and differentiate itself from copycat brands.

2. Pricing and Value Perception: In highly competitive markets, price becomes a crucial factor for consumers. Competitors may engage in price wars or offer discounts and promotions to attract customers. This can challenge a brand’s identity if it is positioned as a premium or luxury brand. The brand must find ways to communicate and justify its higher price point by emphasizing superior quality, craftsmanship, or unique value propositions to maintain its brand identity and justify its pricing strategy.

3. Market Saturation: When a market becomes saturated with similar brands offering comparable products or services, it becomes challenging for any single brand to stand out. This saturation can lead to a loss of brand differentiation and identity, as customers may struggle to distinguish between brands. To overcome this challenge, a brand needs to consistently innovate, focus on unique selling points, and reinforce its brand identity through targeted marketing efforts and customer engagement.

4. Changing Consumer Preferences: Consumer preferences and trends are constantly evolving, and new competitors may emerge that cater to these changing demands more effectively. This can challenge a brand’s identity if it fails to adapt and meet evolving consumer needs. Brands need to stay agile, conduct market research, and regularly reassess their positioning and identity to ensure they remain relevant and aligned with their target audience.

5. Negative Competitive Influences: If a competing brand faces a public relations crisis, product quality issues, or other negative incidents, it can impact the perception of the entire industry. This negative association can spill over to affect other brands in the market, including their identity and reputation. Brands must proactively manage their reputation, communicate their unique value proposition, and reinforce their positive brand identity to mitigate the impact of negative competitive influences.

Forinstane

Dollar Shave Club has focused its positioning on affordability and convenience, creating a relatable brand for the average consumer. Whereas their competitor Gillette is more expensive and has a very masculine tone to their messaging and branding, Dollar Shave Club is more cheeky and casualGillette has a very sleek look and  actors who look like models. Dollar Shave Club features average looking people across a wide age range who are more relatable to consumers.

Case Study : 

Pepsi and Coke marketing campaigns.

The Pepsi Challenge signaled a major shift in the winds of the cola landscape. In 1975, Coke was the 800 lb. gorilla in the cola market holding the #1 position for decades. A superior distribution system, effective marketing (before it was called marketing) and incredible brand loyalty created legions of happy customers.

Pepsi was the new kid on the block looking to prove something. They were hungry and willing to mix it up. A savvy exec at Pepsi came up with a bold revolutionary strategy to do just that.

That idea was the Pepsi Challenge. Pepsi went inside malls around the country and invited people to do a blind taste test between Coke and Pepsi. The results were remarkable; people picked Pepsi over Coke by a significant margin.

Pepsi happily touted the results in a TV campaign showing people, much to their own surprise, picking Pepsi.Coke got jumpy. They felt compelled to respond. They started issuing press releases questioning the results and responded with ads saying Coke was better. They came across as defensive and paranoid. Their PR campaign denials were a disaster.

Pepsi had momentum. Coke was backpedaling, fearing a market share freefall. What was Coke’s answer?

Since everyone actually liked Pepsi better (after all that’s what the results proved), let’s be more like them and change the secret formula to copy Pepsi. Bluntly, if you can’t beat ’em, join ’em.

Pepsi coming up with the challenge. It was flat-out brilliant. Incredibly bold. Visible. They set the tone for the conversation. They had a lot to gain and, with fewer customers than Coke, not much to lose. Shrewdly, they started testing the concept out in Dallas, expanded it to a few more cities to get validation of their strategy, and ultimately rolled it out nationwide.

Coke was too jumpy. They overreacted emotionally out of fear. Bad move.

The brand attachment to Coke was so strong, people were willing to look past what could have been their new favorite to keep the brand because they had become so comfortable considering themselves a Coke drinker.

Ultimately, the campaign failed in its execution because it didn’t do a good enough job changing consumers’ buying habits. The creative vision behind the campaign was fantastic. It made an also-ran a household name. It was powerfully viral and certainly must have gotten people to think about switching to Pepsi. But, it failed to make consumers switch. While Pepsi eventually picked up market share, did it some from celebrity endorsements or from the Pepsi Challenge? One thing’s for sure: there wasn’t a sales spike after the Pepsi Challenge.

• Brand Consistency over time as a challenge for brand identity

Brand consistency over time can indeed be a challenge for maintaining brand identity. While consistency is crucial for establishing a strong and recognizable brand, several factors can make it difficult to maintain consistency over an extended period. Here are some challenges that organizations may face:

Evolution and growth: As companies evolve and grow, their products, services, target audience, or market positioning may change. This evolution can pose a challenge in maintaining consistent brand identity over time. It becomes essential to align the evolving brand strategy with the existing brand elements and ensure a smooth transition without diluting the brand’s core identity.

Organizational changes: Changes within the organization, such as mergers, acquisitions, or restructuring, can impact brand consistency. Different cultures, processes, and practices from merging companies may result in inconsistency in brand messaging, visual identity, and customer experience. It requires careful integration and communication to maintain a consistent brand identity throughout the transition.

External influences: External factors, such as market trends, consumer preferences, or competitive landscape, can create pressure for brands to adapt their messaging or visual identity. While it is important to stay relevant, sudden shifts can disrupt brand consistency. Balancing the need for innovation and adaptation with the preservation of core brand elements is a challenge.

Communication across channels: With the rise of various communication channels, including digital platforms and social media, maintaining brand consistency across all touchpoints can be challenging. Each channel may have its own unique requirements and limitations, making it difficult to present a consistent brand experience. Brands must carefully adapt their messaging and visuals to suit each channel while still maintaining the overall brand identity.

Human error and inconsistency: Brand consistency relies on the actions and decisions of individuals responsible for implementing the brand across various touchpoints. Human error or lack of understanding can lead to inconsistencies. Companies must invest in training, clear guidelines, and regular communication to ensure employees and partners understand and adhere to the brand’s guidelines consistently.

Lack of monitoring and enforcement: Without regular monitoring and enforcement mechanisms, brand consistency can gradually erode over time. It is essential to have processes in place to review brand materials, conduct audits, and address any deviations from the brand guidelines. Clear accountability and regular evaluations can help identify and rectify inconsistencies.

To overcome these challenges and maintain brand consistency over time, organizations should invest in brand management strategies, including:

Robust brand guidelines: Develop comprehensive brand guidelines that clearly outline the brand’s visual identity, messaging, tone of voice, and brand values. These guidelines should be easily accessible to all stakeholders and regularly updated to reflect any changes or adaptations.

Internal communication and training: Educate employees about the brand identity and guidelines, ensuring they understand the importance of consistency and how to apply it in their respective roles. Regular training sessions, workshops, and internal communication can reinforce brand consistency.

Centralized brand management: Establish a centralized brand management system or team responsible for overseeing and coordinating brand implementation across different touchpoints. This helps ensure consistent messaging, visual identity, and customer experience.

Regular audits and evaluations: Conduct periodic audits of brand touchpoints, both online and offline, to identify any inconsistencies and deviations from the brand guidelines. Regular evaluations help identify areas that require adjustment or improvement to maintain brand consistency.

Collaboration and communication: Foster collaboration and communication between different teams and departments involved in brand implementation. Clear channels of communication and regular check-ins can help align efforts and prevent inconsistencies.

Brand monitoring tools: Utilize brand monitoring tools and technologies to track brand mentions, customer feedback, and brand sentiment across various channels. This can help identify any inconsistencies or reputation issues and take timely corrective actions.

By addressing these challenges and implementing effective brand management strategies, organizations can maintain brand consistency over time, ensuring that their brand identity remains strong, recognizable.

• Creating new sub categories a challenge to building brand identity

Creating new subcategories can present challenges to building brand identity in several ways:

1. Brand Cohesion: Introducing new subcategories may risk diluting the core identity of the brand. If the subcategories are not carefully aligned with the brand’s values, personality, and positioning, it can create confusion among customers and weaken brand recognition. It’s crucial to ensure that the subcategories reinforce the overall brand identity and contribute to a cohesive brand experience.

2. Consistency: Building a strong brand identity requires consistency across all touchpoints. When introducing new subcategories, it becomes essential to maintain consistency in messaging, design elements, and brand voice. Any inconsistencies in how the subcategories are presented can undermine the brand’s perceived reliability and erode trust among customers.

3. Customer Perception: Introducing new subcategories may alter how customers perceive the brand. Depending on the nature of the subcategories, customers may associate different attributes or expectations with each subcategory, potentially leading to fragmented perceptions of the brand. Balancing the introduction of new subcategories while maintaining a clear and unified brand perception can be a challenge.

4. Brand Stretch: Creating new subcategories often involves brand stretch, where the brand expands into new areas. While this can offer growth opportunities, it also carries risks. The brand’s expertise and credibility in the existing category may not necessarily translate to the new subcategories, potentially impacting the brand’s perceived relevance and authority.

5. Competitive Differentiation: Introducing new subcategories requires careful consideration of the competitive landscape. It’s crucial to differentiate the brand from competitors while ensuring that the new subcategories align with the brand’s unique value proposition. Identifying gaps in the market and crafting subcategories that effectively set the brand apart can be a complex task.

Here are a few examples that illustrate how creating new subcategories can pose challenges to building brand identity:

1. Apple and Apple Watch:

When Apple introduced the Apple Watch as a new subcategory within their brand, it presented a challenge in terms of maintaining brand identity. Apple’s core identity had been strongly associated with computers, smartphones, and software. The introduction of a wearable device like the Apple Watch required careful positioning and messaging to ensure that it aligned with the brand’s aesthetics, user experience, and technological innovation, while still being perceived as an integral part of the Apple ecosystem.

2. Coca-Cola and Coca-Cola Life:

Coca-Cola, a renowned brand in the beverage industry, faced a challenge when introducing Coca-Cola Life, a subcategory that offered a lower-calorie option sweetened with natural ingredients. The introduction of this subcategory aimed to cater to health-conscious consumers, but it required careful messaging to ensure that it did not overshadow Coca-Cola’s iconic brand identity or dilute its core association with classic, sugary soft drinks.

3. Nike and Nike Golf:

When Nike expanded into the golf equipment market with the creation of Nike Golf, it faced challenges in maintaining its brand identity. Nike was primarily known for its athletic footwear and apparel, and entering the golf category required establishing credibility and expertise in a new domain. Nike had to carefully position Nike Golf to ensure it aligned with the brand’s core values of performance, innovation, and athleticism, while still resonating with golf enthusiasts and professionals.

4. Amazon and Amazon Prime:

Amazon, known for its vast e-commerce platform, ventured into the subscription-based service category with Amazon Prime. While expanding its offerings beyond traditional online retail, Amazon had to ensure that Amazon Prime maintained the same level of convenience, reliability, and customer-centricity that the brand was known for. Introducing a new subcategory like Amazon Prime required clear messaging and integration into the overall brand experience to avoid any disconnect with the existing brand identity.

These examples demonstrate how introducing new subcategories within a brand can pose challenges in maintaining consistency, managing customer perceptions, and aligning with the brand’s core values. Successful integration of new subcategories requires a thoughtful approach that considers the brand’s identity, target audience, market dynamics, and strategic positioning.