What is branding? Introducing the objectives, benefits, and methods
Here, we will introduce the advantages and method when it comes to branding, as well as how to launch a brand using selling services on Amazon.
What is branding?
The meaning and definition of branding
Branding is about increasing brand value for customers through fostering empathy and experiences with the brand, building an image of the company and its products held by customers and society as a whole, and trying to differentiate it from other companies. By aligning the image held by customers and society as a whole with the unique value the company wants to create (the brand identity), it’s possible to build a strong and distinct brand image that embodies “the company’s own character.”
What's the difference between branding and marketing?
One word that easily gets confused with branding is marketing. Branding is about building a unique image that’s different from other companies by getting people to recognize the value of the company, and its products and services. On the other hand, marketing refers to a mechanism that leads products and services to sales. Branding and marketing are deeply interconnected, with branding strategies often implemented as part of marketing efforts.
The objectives of branding
I understand that branding is about building an image of the company or its products and services and establishing uniqueness, but why is that necessary?
Here are the four main purposes of branding.
Here are the four main purposes of branding.
• Increased awareness
Increases the chance of being recalled in specific product categories.
• Gain trust from consumers
By establishing a positive image of your brand, such as “high quality” or “excellent functionality,”
consumers can confidently make a purchase.
• Differentiation from other companies
A unique brand image highlights the differences from products of other companies, making it easier for consumers to make purchasing decisions.
• Long-term improvement in corporate value
High cost effectiveness over the medium to long term can be expected, which promotes sustainable corporate growth.
For example, when looking for a specific product, many people might think, “The ●● brand lasts a long time” or “When it comes to products in this category, it's the ●● brand.” When a brand’s specific image is recognized in this way, it increases the likelihood of the product being recalled as an option when making a choice.
Elements that make up a brand
Here are some typical elements that make up a brand.
Brand name
It's important that the brand name is easy to remember and pronounce. Additionally, when the name is tied to the brand's characteristics and values, it becomes easier to remember and fosters a greater sense of attachment.
Brand color
Brand colors reinforce visual identity. The key is to choose a color that makes it possible to imagine the brand's view of the world.
Brand logo
Ideally, a brand logo should be simple yet intriguing. It’s also important that the image and characteristics of the company, product, or service are clearly conveyed.
Brand messages/slogans
This is a phrase that expresses a brand's message or value briefly. Ideally, it should be something that is easy to remember, and makes it possible to understand the characteristics and value of the product/service.
Advantages of branding
Branding can be said to be a strategy that creates important value for both companies and consumers. Here are each of the benefits that can be obtained by doing branding.
Four advantages of companies that provide brands
The following four benefits can be identified for companies or individuals who engage in branding.
1. Differentiation from other companies' products and services
Constructing a unique brand identity through effective branding and clarifying differences from similar products and services from other companies can lead to a significant impact on customer purchasing decisions. When brands have unique strengths, they tend to be easier to recognize and remember.
2. Increase profit margins by enhancing added value
Brands have added value that goes beyond product functionality and quality. Branding adds brand power to products and services, and when customers feel a special value from the brand, they also tend to show a willingness to purchase at a price that reflects the brand's value. For example, it can be said that luxury brands provide value as status symbols in addition to product value.
3. Acquire loyal customers
A loyal customer is a customer who has trust or attachment to a brand's products and services. By creating more loyal customers, the likelihood of stabilizing sales increases. Also, loyal customers may give constructive opinions and good feedback precisely because they have a deep attachment to the brand. Such voices can be utilized in product development and advertising.
4. Protection of intellectual property
The brand name, logo, and other elements introduced in Elements that make up a brand play an important role in conveying the brand image to customers and society as a whole. If you complete procedures to protect intellectual property such as trademark registration, etc., you can receive proper protection. Preventing brand names, logos, products, and services from being imitated or infringed upon prevents deterioration of brand image and stabilizes one’s brand position.
Amazon provides the programs needed to establish and protect intellectual property against malicious activity. We support the protection of intellectual property through several means, including the following.
By enrolling in Amazon Brand Registry, you can use the brand protection program.
By enrolling in Amazon Brand Registry, you can use the brand protection program.
Three advantages for customers
Customers who use branded products and services enjoy the following three benefits through branding.
1. Secure purchasing experience through quality assurance
Building a brand makes it easier for customers to grasp quality. By establishing a good brand image, even with new products, customers will already recognize and trust that “this brand delivers good performance” or “this brand is durable despite being affordable,” allowing them to make purchases confidently.
2. Reduced search costs
Imagine you go to a store to buy a particular product, and there are many different types displayed on the shelves. When customers recognize the brand in such cases, it makes their decision to purchase easier, as they may think, “I want something that lasts, so I’ll go with this brand that's known for high quality” or “This brand is reliable, so I'll choose this one.”
3. Achieve one’s ideal image
Brands sometimes play a role in establishing the customer's ideal person or image. For example, by using a brand that has organic as its identity, customers can express and reinforce their own image and stance as someone who supports organic products.
Brand building program you can use with Amazon Brand Registry
By selling on Amazon.co.jp, you can expect the benefits introduced above to be amplified. Amazon has prepared various programs to support effective branding strategies and selling, such as store pages that help differentiate you from other companies and regular discount delivery programs that encourage the acquisition of loyal customers.
Amazon Brand Registry is a program for brand owners that can be used by sellers with valid registered trademarks. If you enroll in Amazon Brand Registry, you can use a variety of programs that can help with branding and launching your brand. The following is an example.
Amazon Brand Registry is a program for brand owners that can be used by sellers with valid registered trademarks. If you enroll in Amazon Brand Registry, you can use a variety of programs that can help with branding and launching your brand. The following is an example.
Sponsored Brands
Sponsored Brands allows you to promote your brand and products with videos or still images. Engaging ads are useful for increasing brand awareness, encouraging purchases, and building long-term relationships.
Store page
Use your brand’s Amazon URL to help shoppers find your brand’s product lineup. Regardless of the size of the brand, the store provides an engaging place to introduce the brand's story, mission, and products to customers.
With Amazon, you can reach over 300 million customers around the world. Right now, we are offering an Incentive program to promote sales for Professional sellers who have started selling by allowing them to test ad configurations for free.
Sell on Amazon
4,900 JPY a month (excluding tax) + selling fees
Branding success stories
Here’s an example of a brand that has succeeded through branding strategies and selling on Amazon.
CLAYPATHY
”In 2016, CLAYPATHY was born from the simple question, ‘Does skincare necessary for the skin have to be expensive?’ ’’
CLAYPATHY is a brand focused on “cleansing,” the most important aspect of skincare, centered around [clay and herbs]. It embodies the desire to provide skincare that gently cares for both the skin and the heart. CLAYPATHY successfully combined branding strategies, such as conveying a consistent brand message, with marketing efforts focused on building a sales framework, thereby establishing its unique identity and message as a brand.
Here are factors that made CLAYPATHY’s branding successful.
Here are factors that made CLAYPATHY’s branding successful.
• Constantly asking oneself, “Is this truly necessary?”
Since starting the brand, we have remained true to our initial principles, always being mindful of “Why is it necessary?”, “Who needs
it?”, and “What do we want to deliver?”. This has helped define the direction the brand aims to take and its
target audience. CLAYPATHY has consistently focused on the key principles of "cleansing" and "affordable pricing," striving to provide skincare that nurtures both the skin and the heart.
• Regular market segment surveys to avoid deviating significantly from current trends
Since customer needs and the situation of competing companies are constantly changing, we stay mindful of the need for regular analysis and review,
ensuring that we continue to deliver products that match market demand.
• Expand awareness by selling on Amazon. Making effective use of sales promotion functions to strengthen branding
We started listing on Amazon, which has many users, in order to let more people know about the
brand. By leveraging a wide range of sales promotion tools, such as brand stores and advertising, we successfully expanded
brand awareness. Additionally, since we can collect specific data on Amazon, we take measures to understand customer needs from that data and incorporate it into new products.
“CLAYPATHY is a brand that pursues ‘just right’ for the skin. It's simple, but effective. The goal is help your skin regain its natural beauty. With that in mind, we hope to deliver skincare that gently aids the skin and mind. ”
*The above is an example and does not guarantee the same results.
Seven steps to building a brand
From here on, we’ll introduce specific brand-building steps that combine effective branding with marketing to lead to sales. Try to work through each step while keeping the following practice points in mind.
Branding - three points when implementing
• Maintaining consistency
Take care not to stray from your goals or lose sight of your target audience when branding.
• Execute each step steadily and approach it with a long-term perspective
It takes a lot of time for a brand’s image to become established in society with customers. We recommend that you build your brand steadily without setting unreasonable
schedules.
• Keep the customer’s perspective in mind
“Building a brand” is synonymous with “increasing the number of people
who have affection and trust towards the brand.” It is important to be mindful of how to foster people’s affection, trust, and empathy
towards the brand.
1. Self-analysis and clarification of vision
The first step is to deepen your understanding of your own (company) business and activities, and then analyze what kind of values will be embodied through the brand. If the core values and direction of the brand are not established here, there’s a risk of being unable to build a consistent image. The following analysis methods are common.
Analytical methods
Description
2. Determining the target audience
When deciding on a target audience (ideal increase in customers), it’s important to clarify two points: “To whom?” and “Why?”.
▪ For whom?: Who will use the product?
▪ Why?: Why use the product?
Try to create a specific image regarding what kind of value the product will provide for what kind of person. We recommend trying the “persona” method.
▪ For whom?: Who will use the product?
▪ Why?: Why use the product?
Try to create a specific image regarding what kind of value the product will provide for what kind of person. We recommend trying the “persona” method.
Specific example of a persona
• Name: Amazon Taro
• Gender: Male
• Age: 35 years old
• Residence: One of Tokyo’s 23 wards
• Occupation: Company employee
• Family composition: Lives with wife and daughter Household where both spouses work.
▪ Problem: Housework is difficult because both spouses are working.
• Name: Amazon Taro
• Gender: Male
• Age: 35 years old
• Residence: One of Tokyo’s 23 wards
• Occupation: Company employee
• Family composition: Lives with wife and daughter Household where both spouses work.
▪ Problem: Housework is difficult because both spouses are working.
3. Market segment research
Once you've decided on your brand's vision and target audience, it's time to research which markets would be best to expand in. To that end, we recommend that you conduct detailed research from the following three perspectives (3Cs model).
Customer perspective
- Grasp customer needs and trends
- Understand what customers are looking for
- Company (your company) perspective
- Confirm your company's strengths and strategies
- Company (other company) perspective
- Understand the conditions of other companies in the same industry
- Consider how your company can differentiate itself from other companies in the same industry
- Grasp customer needs and trends
- Understand what customers are looking for
- Company (your company) perspective
- Confirm your company's strengths and strategies
- Company (other company) perspective
- Understand the conditions of other companies in the same industry
- Consider how your company can differentiate itself from other companies in the same industry
Since customer needs and the situation of other companies in the same industry continue to fluctuate constantly, it’s important to conduct regular and continuous analysis, instead of ending with a one-off investigation.
4. Establish your brand identity
Establish what will mark your brand's products and services. Specifically, this is referring to brand names, logos, colors, catchphrases, etc. By establishing an identity that reflects the brand's personality, such as items that evoke a sense of attachment or are easily associated with the product, it’s possible to communicate a consistent image.
5. Determine touchpoints
A touchpoint is a point of contact with the customers you want to approach. Examples include websites, social media, newspapers, street advertisements, magazines, and stores. Find out what mediums your target audience uses most and choose effective touchpoints. Note that it is common to use multiple touch points together.
6. Conduct promotions (advertising/attracting customers)
Finally, it's time to start a marketing strategy to build a system that leads to sales. The aim is to raise awareness through promotions. There are ways to publish advertisements, post them in magazines, and send them out using social media.
By starting listing on Amazon.co.jp, which has approximately 67 million domestic users1, you can reach more customers. You can promote sales at great prices by utilizing the benefits of free shipping fees when sending products to Amazon's Fulfillment Centers (logistics bases), and free credits that can be used for advertising. There are many other benefits, so you can execute an effective branding strategy.
1 May 2024 Nielsen Digital Content Audience Ratings Monthly Total Report
Fulfillment by Amazon (FBA)
Display the Amazon Prime badge for a product
With Fulfillment by Amazon (FBA), you store your products in Amazon's fulfillment centers, and we pick, pack, ship, and provide customer service for the orders you receive. The Prime logo will appear on your products, which makes it easy for you to reach Amazon Prime members and many other customers. Help grow your business with FBA.
Advertising
Show off your products
Quickly create sponsored product ads that appear in relevant product search results and product detail pages to make it easier for buyers to find seller products. Pay only for the clicks your ads receive. Run deals or offer coupons to help increase conversion.
If you are selling on Amazon for the first time
New Seller Incentives
We are offering an Incentive program to promote sales for Professional sellers who have started selling on Amazon.
• Get 10% back from your initial 7.5 million JPY in brand sales, and then 5% back until sales reach 150 million JPY
• 15,000 JPY discount on inbound FBA shipping when using the Amazon Partnered Carrier program
• 7,500 JPY credit for Sponsored Product ads
• 7,500 JPY credit for coupons
7. Analyze and improve branding strategies
Once a certain period of time has passed since starting a branding strategy, it's time to test how much recognition the brand has gained. This important process helps confirm that your branding is going in the right direction, and that you’re not conveying the wrong message. Examples include conducting surveys on customer satisfaction and conducting comparative analysis with other companies.
It’s important to conduct analysis and make improvements regularly, and flexibly adjust branding strategies according to the market environment and customer needs.
It’s important to conduct analysis and make improvements regularly, and flexibly adjust branding strategies according to the market environment and customer needs.
Frequently Asked Questions (FAQ)
What should I prepare ahead of time to launch my original brand?
In general, the things you should prepare before you start selling your original brand include:
- Initial cost (start-up capital): The initial costs required will vary depending on the scale of your business, whether you outsource product production or make them yourself, and other factors. If you're setting up a physical store, you'll need to account for costs like tenant renovation fees and rent, so the initial expenses tend to be higher.
- Notification of commencement of business: When launching an original brand as a business, you must submit a notification of commencement of business. You need to submit it within one month from the date of the business start or other related events. Please check the National Tax Agency's website for details on the notification of commencement of business.
- Trademark registration: Trademark registration is not mandatory, but if someone else registers the same brand name, you will not be able to use it. Therefore, it is recommended to register your trademark in advance. Please check the Patent Office website for details on how to apply for trademark registration.
*The information above is current as of October 17, 2024, and we do not guarantee the accuracy, validity, or completeness of the content.
Also, when creating an original brand and selling it online, create the online store account in advance. If you want to start selling on Amazon, you can create an account with the following 3 steps.
1. Go to the page to create an Amazon seller account.
2. Register an Amazon Seller Account.
• See the registration procedure in detail
• See details about the identity verification procedure required when registering
3. Provide information and undergo review on Seller Central to comply with the Installment Sales Act.
• See details about the review procedure for the Installment Sales Act
2. Register an Amazon Seller Account.
• See the registration procedure in detail
• See details about the identity verification procedure required when registering
3. Provide information and undergo review on Seller Central to comply with the Installment Sales Act.
• See details about the review procedure for the Installment Sales Act
What are the key points for successful branding?
The following are the key points when implementing a branding strategy.
• Maintaining consistency
Be careful not to stray from your goals or lose sight of your target audience when branding.
• Execute each step steadily and approach it with a long-term perspective
It takes a lot of time for a brand image to become established in society with customers. We recommend that you build your brand steadily without setting unreasonable
schedules.
• Keep the customer’s perspective in mind
“Building a brand” is synonymous with “increasing the number of people
who have affection and trust towards the brand.” It is important to be mindful of how to foster people’s affection, trust, and empathy
towards the brand.
• Maintaining consistency
Be careful not to stray from your goals or lose sight of your target audience when branding.
• Execute each step steadily and approach it with a long-term perspective
It takes a lot of time for a brand image to become established in society with customers. We recommend that you build your brand steadily without setting unreasonable
schedules.
• Keep the customer’s perspective in mind
“Building a brand” is synonymous with “increasing the number of people
who have affection and trust towards the brand.” It is important to be mindful of how to foster people’s affection, trust, and empathy
towards the brand.
Are there any advantages to selling an original brand on Amazon?
The following are the advantages of selling an original brand on Amazon.
- Ability to attract customers: The number of monthly users in Japan has exceeded 60 million people1, allowing you to reach many users.
- Sales promotion support: Use Amazon’s tools for processing payments, managing reviews, running promotions, etc. Also, we are offering an Incentive program to promote sales for Professional sellers who have started selling on Amazon.
- Community: You can learn how to successfully sell online for free at Amazon Seller University. You can also ask questions and view other sellers' posts on Seller Discussion Forums, which is an online forum for Amazon sellers. These resources are valuable sources of information for online sales support and troubleshooting on Amazon.
- Brand building/protection: With Amazon Brand Registry, you can use brand building programs such as store pages and Vine, which gathers reviews, to improve brand awareness.
Amazon is also focusing on protecting brands so that brand owners can sell with peace of mind. Through continuous monitoring and prevention measures, over 99%2 of malicious listings are stopped before brand owners discover and report them.
Are there any incentives if I start selling an original brand on Amazon?
We are offering an Incentive program to promote sales for Professional sellers who have started selling on Amazon. By taking advantage of the benefits, you can try out various sales promotion programs at a reasonable price.
The following is an example of the benefits.
The following is an example of the benefits.
*The benefits have certain conditions. Click here for details
*This program may end without notice.
*This program may end without notice.
- Get a 7,500 JPY credit for coupon fees
- Get a 7,500 JPY credit for using Sponsored Product ads
- Take 15,000 JPY off inbound FBA shipping using the Amazon Partnered Carrier program
- When you enroll in Amazon Brand Registry, you get 10% back on your first 7.5 million JPY in branded sales, then 5% back until sales reach 150 million JPY
4,900 JPY a month (excluding tax) + selling fees
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