Why branding?

Posted in Our thinking on Jun 01, 2019

Simply put, the goal is not only to sell. What a shock!


Isn’t that the point of business? No, profit is a result of doing business. The profit comes at the end, and it happens so only if you have diligently performed all the necessary steps along the way. And indeed, not so long ago, the aim was pure profit. Don’t get me wrong, it still is quite an important aspect of the business, but what has also proven to be equally important today is creating a value, and the value is always followed by profit.

That added value is the relationship you have with your customers, your employees, stakeholders, suppliers, and basically anyone that gets in contact with your brand. Only when that value has been created, the profit will appear in one’s bank account.

How do you create the added value today?


In a world with an infinite number of similar products and services and highly competitive markets, it is hard to differentiate yourself. You can not reinvent the wheel. So, how to distinguish oneself? The answer is simpler than it seems.


Coca-Cola apparently knows the answer – It sells sparkling liquid which everyone knows isn’t quite the best thing for your health due to a large amount of sugar. And yet, after more than a century, we keep drinking it with a smile. Apple also knows the answer. They managed to sell a record number of cell phones, although the device has pretty much the same specifications and functionalities as their competitors'. McDonald’s as well. They serve 67 million people around the world every day, in spite of its well known bad influence on people’s health and various campaigns that were created in order to raise people’s awareness of unhealthy ingredients in their products. The products might not be healthy but the brand sure is!

They all know that the functionality and tangibility do not make a difference, so they are directing their resources towards something that has a much stronger impact – the emotion. They turned to something much deeper and elusive, people’s imagination and desires, and it's proved to be highly profitable. People will remember the feeling they experienced by consuming your product and not only how it smelled, tasted or was shaped. In essence, they will remember the feeling you brand gave them. This feeling is created through a well-thought-out branding and brand communication.

Now, to return to our first point, the goal is not just to sell - the goal is to sell again. That is why branding is important.

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