Branding is a way to distinguish one product from others by using marks, symbols or names. Businesses use it to promote their products among consumers and create a loyal consumer base. Our guide branding will introduce you to the basics of creating a good branding policy.

Brands, today, have become one important aspect of any business, especially Product Differentiation. They attache value and quality to the products being marketed. Due to the popularisation of social media, branding has become even more important.

Significance of Branding

Branding helps distinguish one product from its competitors. The process of branding tells the consumers about the qualities of the product so that they can choose for themselves. It also helps producers separate their product from others that could be cheaper and more inferior.

Our guide to branding will help you understand how the process of branding helps producers and consumers in making better decisions.

Product Differentiation – The first aspect of branding is to create a difference with other products. Companies use certain logos, designs, or trademarks to identify their products and market them as different and better than other products.

Brand Equity – Branding is an asset in the balance sheets of companies because of its importance. It adds to the company’s net worth and has a monetary value known as Brand Equity

Loyal Base – Another important aspect of branding is to create a strong, loyal base of customers. Branding separates a product from other generic productions. For example, there are a lot of companies producing soft drinks, but Coca-Cola stands out and has a certain following.

Guide to an Effective Branding Policy

An effective branding policy helps in building the value of the company. It enhances the company’s image and its reception among people. Here are 4 essential features of a good branding policy: 


A brand’s job is to make people aware of the company and its products. If people recognise and remember the brand, they’re more likely to invest their hard-earned money in it.

They are also more likely to recommend the brand to others, adding to the consumer base. An effective branding policy aims at catching eyeballs to increase its visibility among the people.


A brand often connects with certain attributes like image, status, personality, and values. For instance, Apple represents status and sophistication. Its tag line “Think Different,” immediately offers a certain degree of distinction and makes the product more desirable.

Another example is Nike, whose tag line, “Just do it,” creates a sense of excitement and conveys the idea that the brand owners embody the same personality.


A brand maintains the same quality and standard among its products across the board. In this way, consumers get quality products from the brand. For example, KFC’s ‘fried chicken’ recipe tastes the same all over the world.


An effective branding policy works towards expanding the brand to promote products other than their original one.

A good example of this is Coca-Cola, where the company sells other drinks under its umbrella term, apart from Coke. The recognition and values that the brand represents filters down to the other products as well. Thus, the other drinks begin to attract a similar customer base.

The 3 P’s in Our Guide to Branding

People – The first step toward building a good brand is determining the target audience. If the audience doesn’t connect with the brand, it won’t sell. There’s already enough choice for people to choose from. Therefore, researching the market scenario is essential to building a successful brand. 

Purpose – The brand should follow the mission of the company. Therefore, everything that comprises a brand, design, logo, tag line should follow the philosophy of the company. Consistency in the company’s objectives will create a successful brand.

Principles – The brand should be true to the principles and values of the company. As there are several products competing for attention in the market, a good brand should be able to tell its own story. In this way, it portrays its values to set itself apart from its competitors.

The process of branding began with the aim of differentiating one’s products from that of others. The role of branding has evolved over the years and has become more significant today. A brand not only separates but also tells a story, it builds relations and imparts character to products.  


Branding isn’t just about products any more, either. Through the popularisation of social media, the concept of branding itself has changed and is now associated with lifestyle and life choices. The research being conducted into the strategies of branding is quite advanced and constitutes an industry in itself. 

Thus, this guide to branding is a very important aspect of businesses today. For a business to succeed, it needs to have an effective strategy in place to build its brand adequate resources directed towards brand development. This way, the business can carve out a niche for itself and survive in a competitive market.

About the author

EWOR is a school conceived by Europe’s top professors, entrepreneurs, and industry leaders. We educate and mentor young innovators to launch successful businesses.

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