19 Jun Brand Equity and the Logo Connection
If you are starting a business you know there are several things that you need to get together in order to begin on the right foot. A business plan, a website, a product, etc are a must as you build your business.
However, branding will be major component of creating your business’s identity.
Branding has many components that together will show what you can bring to the table as a business. One of those major components is your logo.
Your logo will help to build recognition for your brand. It is the symbol of your business and it shouldn’t be taken lightly.
The temptation however is to simply look at many of the large companies and become influenced by their simple almost abstract logos and feel that you want to go in that direction.
It’s a normal reaction to want your business to be seen in the light of these large brands. After all you’ve poured your hard work, money and time into launching your business why not emulate the big guys?
Apple, Nike and even the Shell gas station logo are all super simple, right? An apple, a swoosh and a yellow shell. It makes sense that successful brands have super simple logos.
So why not whip up a quick logo and make it yours? After all, that’s what everyone is doing, right?
Well if you look at how these companies started out, many of them had more intricate logos which became more simplified over time. The reason is that over time they were able to build brand recognition, credibility and brand equity.
Have you ever wondered how these larger brands get by with simple logos?
Well-Established Brands Own More Equity
Brand Equity is a phrase used in the marketing industry for well-known brand names that consumers believe is better than lesser known names. These brands also have the capability to generate more money from it’s product or services.
Well established brands can leverage their brand equity in the minds of consumers without a fancy logo. The value of their brand is immediately recognized by their logo even if it’s a simple and abstract image whereas a newer brand with less equity does not have that type of impact with it’s consumers.
Well Established Brands Have More Resources
Here’s an exercise for you. Think of the top five brands that come to mind when you think of insurance companies.
We probably thought of the same five.
At the end of the day even individuals who use companies other than the top five will think of the companies that have the resources to push their brand out the most to the public.
Smaller brands do not have the resources to rent commercial time during the super bowl or run national commercial spots several times a day on several major channels.
By making sure that you leverage a highly recognizable logo for your brand you will start to plant seeds and grow brand equity faster than a more abstract logo. Over time your logo can be refined and simplified as your brand grows and your logo has meaning in the hearts and minds of your customers.
Many Well-Established Brands Have Been Around a Long Time
Did you know takes 5-10 times for someone to recognize your logo when they see it? Imagine having your brand pushed out for decades. Some brands have been around for over a century! A brand that has equity through many years has generational brand recognition.
In addition these brands with longevity also have multi-generational leverage. Many insurance companies that have been around for years have built in advertisement when parents tell their adult children which insurance companies they have trusted over the years.
Don’t underestimate the value of consistency and longevity in building your brand’s equity.
Well-Established Brands Have More Services
Imagine if Apple just used a computer in their logo? It wouldn’t make sense because they now offer so many more products. Apple also has expanded into other types of media as well.
A simplified logo allows the unique value of their brand to be recognized across all of their platforms. If you saw a car with an Apple logo there are certain things that you would expect to be part of the car that is unique to the Apple brand like high quality design, user friendliness, and innovation.
So What’s a New Brand to Do?
When developing your brand and your logo think about how you can make it memorable within the first few times it is seen by the consumer. Make sure it is something that will highlight something unique about your services or product.
If you are already building your brand decide if it’s time to re evaluate your logo to see how you can make the most of your current brand equity.
A logo can be simple but each part of it must be well designed and be tied to the brand itself.
If you need some help to build your brand contact us for a free consultation.