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Brand Identity: What It Is And Why It’s Important

As a branding company in Cape Town, we understand how an effective brand identity can build lasting customer loyalty and increased profitability

As a business owner, you have a vision for your business. You have an idea of how you want your company to be perceived by a prospective customer. The effort that goes into shaping this perception can be broken down into three aspects – Brand, Branding and Brand Identity. A successful branding effort will result in a brand that is a recognisable, trusted and consistent image of your company. It will differentiate you from your competitors and leave an impression on potential customers that will breed attention and loyalty.

What is a brand:

A brand is what sets your company apart from its competitors. It is a set of unique ideas, perceptions and feelings that people have about your business. 

What is branding:

Branding is the vehicle that aims to shape what people think about your company. While you cannot control people’s perception of your business, branding aims to steer them to see your business as you desire them to. All the effort you put into brand awareness and reputation around your products and services fall within branding. Before starting the branding process, you would need to establish what the perception is you want to impress on your customers.

What is brand identity:

The end result of the branding process results in what is known as your brand identity. It includes all the tangible elements that represent your company. These include your logo, colours, imagery, fonts, website, and tone-of-voice. 

Over the last decade South Africa has seen numerous top brands across multiple sectors rebrand in an effort to stay relevant and align their brand identity to their company values and mission.  We saw top cellular companies Telkom, MTN, Vodacom and Cell C each rebranding at least once since 2010. Mr Delivery rebranded to Mr D, Take2 to Takealot, Tyme to Tymebank and many others, including the latest rebrand just last week by payment gateway provider, Payfast. 

Research shows that through branding, companies saw increased customer loyalty and profitability. These companies build a strong brand which in turn raises their brand equity. This results in customers being willing to pay more for their products or services.

MTN Old Branding vs New Branding
Old MTN logo (left), and the new MTN logo (right) – Image Credit: MyBroadband

Why is Brand Identity Important:

Brand identity is not just the creation of visual elements for your website, social media or your stationery. Your brand identity is one of the most important aspects of your business. It creates a strong impression of the company’s values, mission, and vision and enables its differentiation from its competitors.

By creating a memorable brand identity, you will leave a lasting impression on people in the market on a psychological level. According to surveys, 89 percent of marketers value brand awareness as their primary objective over sales and lead generation. Understanding how to create a distinct and powerful brand identity can be crucial for businesses looking to make their mark in their industry.


The way a company brands itself is everything – it will ultimately decide whether a business survives
– Sir Richard Branson


Significance of Branding In South African Markets

Brand identity is the cornerstone of any successful business. It’s essential to creating a remarkable customer experience, connecting with your target audience, and ultimately, reaching higher levels of profitability. 

With South Africa’s current economy, the success of small businesses is increasingly important, with SME’s making up 60% of South Africa’s workforce. But, this doesn’t mean every business is successful. Many businesses fail within the first five years of opening their doors. Therefore, to succeed, business owners need business know-how, a product or service that is in demand and leadership skills but, these are not everything in business.

A business that has employed the right branding agency and has embarked on an efficient branding strategy can catapult itself to the top of its industry by differentiating itself from its competitors. Through strategic branding, companies can attract attention within their target audience and build loyalty that will contribute to a lasting business.

The Important role of branding companies in South Africa

With brand identity being such an important aspect of business, choosing the right branding company in South Africa can be a difficult decision. A top-class branding agency in South Africa will require a unique set of skills to help businesses build an effective brand identity. 

What goes into a strong brand identity is more than just logo design. It requires an all-encompassed understanding of consumer psychology, marketing, communication and design.

By finding a branding company with these skill sets, companies can be confident they will get a creative interpretation of their brand that speaks to their vision, mission and values as an organisation.

Brand identity is often underrated but it can influence how a customer sees your business, and ultimately their buying decision. Branding defines your business and lets customers know what to expect from your products or services.

So there you have it —- brand identity in a nutshell. It’s definitely worth developing a solid and consistent brand identity for your business. It will pay off in the long run! If you need help getting started, as a branding company in Cape Town, we offer design, digital marketing, SEO, and web design services that can get your brand on track. Contact us today for a consultation!