Developing a brand identity: a practical guide

What is brand identity versus brand image? {#markenidentitaet-vs-markenimage}

The term brand identity is often confused with brand image, yet the two concepts describe fundamentally different perspectives. Anyone who wants to build a strong brand has to understand this difference.

Brand identity is the self image of your company. It describes what your brand stands for, which values it represents and how it is positioned in the market. Brand identity is actively shaped and steered by the company. It is the strategic basis for every decision about communication and design.

Brand image on the other hand is the outside view, that is the actual perception of your brand by customers, partners and the public. Brand image emerges from the sum of all experiences and impressions people have with your brand.

The goal of professional brand development is to keep the gap between identity and image as small as possible. If your brand is perceived from the outside exactly as you defined it, your brand work is successful.

At GoldenWing we work with a proven process that takes both sides into account: first we define the desired identity together with you, then we check the current image through market research, and we close the gap with targeted measures.

Why brand identity is decisive for small and medium companies

For small and medium sized companies in Austria in particular, a clear brand identity is a decisive competitive advantage. In a market where products and services become ever more interchangeable, the brand is often the only real point of difference.

Studies show that companies with a consistent brand presentation can increase their revenue by up to 23 percent. The investment in a professional brand identity pays off directly, not only in perception but in the bank account.

You can read more about the basics in our glossary entry on corporate identity.

The 7 elements of a strong brand identity {#sieben-elemente}

A brand identity consists of several interlocking building blocks. Every element has to stand on its own and contribute to the overall picture at the same time. Here are the 7 core elements that we define at GoldenWing for every branding project:

1. Brand vision

The vision describes the long term target picture of your company. It answers the question: where do we want to go? A good vision is ambitious but attainable. It inspires employees and gives the whole organisation a direction.

Example: "We make digital excellence accessible to every company", that could be the vision of a digital agency.

2. Brand mission

While the vision describes the goal, the mission explains the path towards it. It answers: what do we do, for whom and why? The mission is more concrete than the vision and describes the daily task.

3. Brand values

Values are the guard rails of your actions. They define what matters to your company and what every decision is measured against. Ideally you pick 3 to 5 core values that are authentic and show up in daily business.

4. Brand personality

If your brand were a person, how would it behave? Brand personality makes your brand human and tangible. It influences the communication style, the imagery and the entire appearance.

Well known archetypes are:

• The hero, brave, determined, performance driven (Nike)
• The sage, competent, analytical, trustworthy (Google)
• The creator, visionary, expressive, individual (Apple)
• The caregiver, caring, empathetic, protective (Dove)

5. Brand positioning

Positioning describes your unique place in the market. It defines how you stand out from the competition and which specific benefit you offer. Clear positioning answers:

• Who are our ideal customers?
• Which problem do we solve?
• Why do we solve it better than others?
• What makes us unique?

6. Brand voice

The brand voice defines how your brand communicates. It covers tone, language style and choice of words. More on this in the section defining brand voice and tone.

7. Visual design

Visual design is the most visible part of brand identity. It covers the logo, colours, typography, imagery and all graphic elements. You will find details in the section building a visual design system.

All 7 elements have to be aligned with each other. A company that defines "innovation" as a core value but uses an outdated logo and communicates in conservative language creates a contradiction that undermines credibility.

Our branding services cover the development of all 7 elements in one integrated process. Take a look at our references as well to see how we have implemented these elements for other companies.

Running a brand audit {#brand-audit}

Before you develop or rework your brand identity you need an honest inventory. A brand audit systematically analyses the current state of your brand, from visual consistency to customer perception.

The 4 steps of a brand audit

Step 1: internal analysis

Collect all existing brand materials: logo variants, business cards, website, social media presence, brochures, presentations, email signatures. Check them for consistency. Do all materials use the same colours, fonts and tone?

Step 2: employee survey

Survey employees from different departments:

• How would you describe our brand in 3 words?
• What sets us apart from the competition?
• Which values do we really live by?
• Where do you see contradictions in how we present ourselves?

Step 3: customer perception

Run customer surveys or analyse existing data: reviews, testimonials, support requests and social media comments. Compare the customer perception with your own assessment.

Step 4: competitive analysis

Analyse 3 to 5 direct competitors in terms of positioning, visual identity and communication style. Identify gaps and opportunities for differentiation.

Brand audit checklist

The results of the brand audit form the basis for every further step. Without this honest analysis you risk turning the wrong screws.

Target group analysis for your brand {#zielgruppen-analyse}

A brand identity does not emerge in a vacuum, it has to land with the right target group. That is why a thorough target group analysis belongs in every branding process.

Creating buyer personas

A buyer persona is a semi fictional profile of your ideal customer. For effective brand development you should define 2 to 4 personas that represent your most important customer segments.

Every persona should contain the following information:

• Demographic data: age, gender, income, place of residence, profession
• Psychographic data: values, interests, lifestyle, attitudes
• Pain points: which problems does this person have?
• Goals: what does this person want to achieve?
• Media use: which channels does this person use?
• Buying behaviour: how does this person make purchase decisions?

Empathy mapping

A complementary method is empathy mapping. For every persona you examine:

• What does she think and feel? fears, hopes, priorities
• What does she say and do? behaviour in public, statements
• What does she see? environment, competitor offers, market trends
• What does she hear? recommendations from friends, media coverage, expert opinions

This analysis helps you develop a brand identity that resonates emotionally. In the end it is emotions, not facts, that drive purchase decisions.

You can read more about understanding customers in our article on customer journey mapping.

Defining brand voice and tone {#brand-voice-tone}

The brand voice is the verbal personality of your brand. It determines how your brand sounds, in every text, on every platform and in every interaction.

Voice versus tone, the difference

The voice is constant. It is the fundamental communication style of your brand, for example "professional but approachable" or "bold and direct". The voice does not change, whether you are writing a social media post or a press release.

The tone on the other hand is variable. It adapts to the situation. A brand can be humorous on social media and serious in crisis communication, but the underlying voice stays the same.

Brand voice framework

Define your voice along 4 dimensions, each on a scale:

Building a word list

Build a list of words and phrases your brand uses, and a list of words it does not use:

We say:

• "Together we develop…"
• "Your project deserves…"
• "Results based on data"
• "Transparent collaboration"

We do not say:

• "We are the best…"
• "Cheap and fast"
• "Guaranteed results"
• "One could perhaps…"

These word lists are part of the brand guidelines and help everyone who writes copy for your brand to hit the right tone. Whether intern or CEO, everyone communicates consistently.

You can see what this looks like in practice in our project references, where we have developed individual brand voices for various industries.

Building a visual design system {#visuelles-design-system}

The visual design system is the visible face of your brand. It covers all graphic elements and rules that make sure your brand appears consistently everywhere.

Logo development

The logo is the central visual element of your brand. A professional logo design includes:

• Primary logo: the main version for most applications
• Secondary logo: a simplified version for small sizes
• Symbol: the icon on its own, without the wordmark
• Clear space: the minimum distance to other elements
• Minimum size: the smallest permitted rendering

Colour palette

Colours are the strongest emotional trigger in visual branding. Your colour palette should include:

Define every colour with exact values for all media:

• HEX and RGB for digital use
• CMYK for print products
• Pantone for consistent print colours
• RAL for physical products or interior design

More on the basics of corporate design can be found in our glossary.

Typography

Choose at most 2 to 3 font families:

• Headline font: for headings and large text, it can have character
• Body font: for running text, it has to be easy to read
• Accent font (optional): for special emphasis or quotations

Define a clear typographic hierarchy with font sizes, line heights and weights for every level (H1 to H6, body copy, captions and so on).

Imagery

Imagery defines which kind of photos, illustrations and graphics your brand uses:

• Photo style: bright and airy? Dark and dramatic? Authentic and unposed?
• Colour treatment: filters, colour grading, saturation
• Subjects: people? Products? Abstract concepts?
• Perspective: eye level? Bird's eye view? Close ups?

A consistent visual style makes your brand recognisable even without the logo. Think of brands like Apple or IKEA, their imagery is so distinctive that you place it immediately.

If you want to rework your website as the central brand touchpoint, take a look at our web design services.

Creating and maintaining brand guidelines {#brand-guidelines}

Brand guidelines (also brand manual or brand book) are the rule book of your brand. They document every decision from the previous steps and serve as a reference for everyone who works with your brand.

Structure of a brand book

A complete brand book contains the following chapters:

1. Brand story: why do we exist? What drives us?
2. Brand values and positioning: what do we stand for?
3. Target groups and personas: who are we speaking to?
4. Logo system: all variants, clear space, minimum size, dos and don'ts
5. Colour palette: all colours with exact values
6. Typography: fonts, hierarchy, rules of use
7. Imagery: photo style, illustrations, icons
8. Brand voice: tone, word list, copy examples
9. Application examples: business cards, letterhead, social media, website
10. Dos and don'ts: clear examples of what is allowed and what is not

Digital brand guidelines

Modern brand guidelines are no longer only a PDF gathering dust in a drawer. More and more companies rely on digital brand portals:

• Advantages: always current, searchable, interactive, with a download area
• Tools: Frontify, Brandfolder, Bynder or custom built solutions
• Access: all employees, external service providers, partners

Keeping guidelines alive

The best brand guidelines are worthless if nobody follows them. That is why we recommend:

• Run brand workshops for all departments
• Name brand champions in every team
• Regular audits (every 6 months) to check consistency
• Provide templates for common use cases
• Establish a feedback process for edge cases

Rebranding, when and how? {#rebranding}

Not every brand needs a complete rebranding. Sometimes a brand refresh is enough to feel relevant and current again. Here are the differences:

When does a rebranding make sense?

• Your target group has changed fundamentally
• Your business model has evolved
• There has been a merger or acquisition
• Your brand image has been damaged by a crisis.
• Your brand is associated with outdated values.
• You are expanding into new markets (international)

The rebranding process

1. Analysis: why is a rebranding needed? What still works, what does not?
2. Strategy: new positioning, values, vision
3. Creation: new visual system, new voice
4. Testing: test reactions of the target group (focus groups)
5. Rollout: step by step introduction across all touchpoints
6. Communication: inform customers and partners about the change

One particularly critical point: choose the right moment. A rebranding in the middle of a crisis can be read as a distraction. Plan the relaunch during a phase of strength.

The cost of professional brand development {#kosten-markenentwicklung}

The cost of brand development varies widely, depending on scope, complexity and agency. Here is a realistic overview for the Austrian market:

Cost overview by scope

What to watch out for when you receive a quote

• Transparent breakdown: what is included in the price, what costs extra?
• Revision rounds: how many correction loops are included?
• File formats: do you receive all formats (AI, EPS, SVG, PNG, JPG)?
• Rights of use: are all rights transferred in full?
• Follow up support: is there support after handover?

At GoldenWing we offer transparent branding packages that cover all of the points above. From our experience across more than 120 completed projects we know that the investment in a professional brand identity pays for itself within the first 12 months through stronger customer loyalty and higher conversion rates.

The return on brand development

The return of a brand investment can be pinned to several factors:

• Higher prices: strong brands can charge on average 13 percent higher prices.
• Lower acquisition cost: well known brands need less advertising budget per new customer
• Better recruiting: 75 percent of applicants research the employer brand
• Higher customer loyalty: emotional brand attachment increases customer lifetime value

Next steps

If you are ready to develop or rework your brand identity professionally, contact us for a free initial consultation. We analyse where you stand today, discuss your goals and put together a tailored offer.

In addition to a strong brand identity we recommend reviewing your digital marketing strategy as well, because the best brand is worth nothing if it is not visible.

Employer branding: positioning your brand as an employer

In times of a skills shortage, which in Austria is felt most strongly in IT, the trades and care work, employer branding becomes a strategic success factor. Your brand identity influences not only how customers see you but also whether the best talent wants to work for you.

What is employer branding?

Employer branding describes the strategic build up of an attractive employer brand. It is about communicating the values, culture and benefits of your company in such a way that potential employees can identify with your brand, before they have even started their first day.

According to a study by StepStone Austria, 78 percent of applicants look at the employer brand before they apply. And 62 percent would turn down a job offer if the company has a poor reputation as an employer, even at a higher salary.

The link between brand identity and employer branding

Your brand identity and your employer branding should not be separate worlds. On the contrary: the strongest employer brands are derived directly from the corporate brand.

An example from practice:

A Viennese technology company defined its brand values as "innovation, transparency, humanity." These values were carried over into employer branding:

• Innovation led to hackathons, 20 percent free project time, a conference budget for every employee
• Transparency led to open salary bands, transparent company figures, regular all hands meetings
• Humanity led to flexible working hours, mental health support, a parental leave programme

The result: the application rate rose by 45 percent within 12 months, staff turnover fell by 30 percent.

Putting employer branding into practice

1. Define an employee value proposition (EVP):

The EVP is the promise to your employees, the counterpart to the customer promise (unique value proposition). What makes you unique as an employer?

Questions for developing the EVP:

• Why do your best employees stay with you? (Ask them.)
• What do former employees say about you? (Analyse Kununu reviews.)
• What do you offer that the competition does not?
• Which development opportunities exist?

2. Design the careers page as a brand experience:

Your careers page is the most important touchpoint for potential applicants. It should:

• Present the company culture authentically (real photos instead of stock images)
• Contain employee voices and stories
• Make the application process transparent and simple
• Work flawlessly on mobile devices (more than 60 percent of job searches happen on mobile)
• Load fast, meeting the same performance standards as your main website

3. Use social media for employer branding:

• LinkedIn: specialist posts from the team, company updates, behind the scenes
• Instagram: team events, office glimpses, employee spotlights
• Kununu and Glassdoor: respond to reviews actively, communicate openly

Employer branding for small and medium companies: realistic steps

You do not have to be Google or Red Bull to build a strong employer brand. Small and medium companies in Austria can achieve a lot on a manageable budget as well:

• Maintain your Kununu profile: free, but enormously effective. 70 percent of all job seekers in Austria use Kununu.
• Create team content: a monthly blog post or LinkedIn post about the team costs almost nothing but shows personality.
• Communicate benefits: flexible hours, the option to work from home or a public transport pass. Many small companies offer attractive benefits but never mention them.
• Shape the onboarding experience: the first day is decisive. Thoughtful onboarding shows appreciation and gets passed on by new employees.

Digital brand management: social media, website and content

Digital presence is today often the first point of contact between your brand and potential customers. Consistent digital brand management is therefore essential, and it takes more than a pretty logo on the website.

The website as the centre of the digital brand

Your website is the centre of your digital brand identity. Here you have full control over the brand experience, unlike social media platforms where algorithms and platform design shape your presentation.

Checklist for brand consistent websites:

• Colour palette: use your defined brand colours consistently on every page. Define CSS custom properties (variables) for primary, secondary, accent and neutral colours.
• Typography: at most 2 font families, one for headings, one for running text. Load web fonts efficiently with font-display: swap.
• Imagery: define a clear image style (colour filters, composition, choice of subject) and keep to it on every page.
• Tone: the copy on the website should reflect the defined brand voice, from the main menu through the error page to the cookie banner.
• Micro interactions: hover effects, loading animations and scroll behaviour are part of the brand experience. Define standards for easing functions, animation duration and interaction patterns.

Brand management on social media

Every social media platform has its own culture and way of being used. Even so your brand has to stay recognisable. The key is the distinction between consistent and adaptive elements.

Consistent elements (the same across platforms):

• Logo and profile picture
• Brand colours in graphics and templates
• Core brand messages and values
• Tone of voice (the basic tonality)

Adaptive elements (adjusted per platform):

• Content format (reels on Instagram, articles on LinkedIn, threads on X)
• Nuances of tone (a little more formal on LinkedIn, a little more personal on Instagram)
• Hashtag strategy (researched per platform)
• Posting frequency (adjusted to the platform algorithm)

Content marketing as brand building

Content marketing is one of the most effective instruments for brand building, especially for service companies and B2B firms. The key: every piece of content should carry your brand values.

Content formats and their brand effect:

• Blog articles: position yourself as an expert in your field. Do not write about everything, focus on your core competencies. A web design blog should not write about accounting software.
• Case studies: show concrete results of your work. Case studies with measurable numbers (for example "traffic up by 230 percent") build trust and the perception of competence.
• Whitepapers and guides: extensive resources that offer real value position you as a thought leader. In Austria industry specific guides work particularly well because the market is easier to survey than in Germany.
• Video content: an explainer video, a team introduction or a customer interview. Video carries personality and emotion better than any other medium.
• Podcasts: increasingly relevant in the German speaking market. An industry podcast positions you as an important voice in your market.

Brand management in email marketing

Email marketing is often overlooked in brand management, yet it is one of the most direct channels to your audience:

• Newsletter design: use your brand colours and fonts consistently
• Sender name: use a recognisable sender name (for example "Team GoldenWing" instead of "noreply@domain.at")
• Subject line: here too the tone reflects your brand voice
• Signature: every email from your company is a brand touchpoint. Standardised signatures with logo, contact details and an optional banner strengthen brand perception.

Brand strategy for small and medium companies: examples from Austria

Brand development is often seen as a luxury for large corporations. The reality: for small and medium companies in Austria in particular a clear brand strategy is a decisive competitive advantage, because it sets them apart from the mass of faceless competitors.

Example 1: a trades business in Vienna

Starting point: a plumbing business with 8 employees in Vienna, 15 years in the market, no recognisable brand. The owner complained about growing price pressure from cheap providers.

Brand strategy:

• Positioning: "the plumber you can trust", focused on reliability and quality instead of the lowest price
• Visual system: a professional logo with a tool icon, a distinctive blue and orange colour scheme, consistent branded workwear
• Digital presence: a new website with a before and after gallery, Google reviews shown prominently, local SEO work
• Offline branding: lettered company vehicles (a mobile advertising surface), branded protective covers for customer bathrooms, business cards with a QR code to the review page

Result after 12 months:

• Enquiries through the website: plus 120 percent
• Average order value: plus 35 percent (customers choose premium options more often)
• Google reviews: from 12 to 67 (average 4.8 stars)
• Referral rate: from 30 percent to 55 percent
• Total investment: around 8,000 euros (website, logo, vehicle lettering, workwear)

Example 2: a tax consultancy in Graz

Starting point: a young practice with 3 tax advisers, founded in 2021. Hard to prevail against established firms.

Brand strategy:

• Positioning: "tax advice for the digital generation", focused on digital processes, paperless accounting, start-up advice
• Brand voice: approachable and understandable instead of dry and legalistic. Tax law is explained in plain language.
• Content strategy: a weekly LinkedIn post with tax tips, a monthly blog article, a quarterly webinar on current tax changes
• Visual system: modern design with gradient accents, friendly team photos instead of the classic law office aesthetic

Result after 18 months:

• LinkedIn followers: from 200 to 3,800
• Client enquiries per month: from 5 to 25
• Average age of new clients: 34 years (unusually young for the sector)
• Brand awareness in the Graz start-up scene: 65 percent unaided awareness

Example 3: an online shop for sustainable fashion

Starting point: a Salzburg start-up with an online shop for fair fashion, 2 founders, bootstrapped without outside capital.

Brand strategy:

• Positioning: "fashion with a conscience, without compromising on style." Clearly against fast fashion, but not preachy.
• Brand values: transparency (open supply chains), quality (only GOTS certified materials), community (customers as brand ambassadors)
• Visual identity: earth tones with a distinctive mustard yellow as the accent colour, hand drawn illustrations, recycled wrapping paper with an individual stamp
• Social media: focus on Instagram with behind the scenes from production sites, styling tips, user generated content from the community

Result after 24 months:

• Instagram community: 18,000 followers (organic, without paid ads)
• Repeat purchase rate: 42 percent (sector average in fashion: 25 percent)
• Average basket: 125 euros (sector average: 85 euros)
• PR mentions: Falter, Der Standard, Woman, without a PR agency, purely through brand awareness
• Total investment in branding: around 5,000 euros (logo, packaging design, website design)

Lessons learned: what smaller companies can take from these examples

From these and many other projects we have identified the following patterns of success:

1. Clear positioning beats a broad offer: the more specific your positioning, the stronger the brand. "We do everything for everyone" is not a positioning.

1. Consistency across all touchpoints: the strongest brands of smaller companies are not the ones with the biggest budget but the ones with the greatest consistency, from the Google profile through the website to the email signature.

1. Authenticity over perfection: smaller companies have a natural advantage over corporations: personality. Use it. Real team photos work better than perfect stock images.

1. Live the brand values, do not only communicate them: the firm that preaches "digital" but sends invoices by post has a credibility problem.

Brand measurement: KPIs and tools for your brand success

"What you cannot measure you cannot manage", this quote from Peter Drucker applies to brand management as well. But how do you measure something as abstract as a brand? With the right KPIs and tools it is more precise than many people think.

Quantitative brand KPIs

1. Brand awareness:

• Aided awareness: "Do you know the brand X?", measurable through online surveys (for example with Google Surveys or Typeform)
• Unaided awareness: "Which brands do you know in category X?", more meaningful but harder to measure
• Branded search volume: how often is your brand name searched on Google? Rising branded searches are a strong signal of growing awareness. Measurable through Google Search Console or Google Trends.

2. Brand perception:

• Net promoter score (NPS): "How likely is it that you would recommend us?" (scale 0 to 10). An NPS above 50 counts as excellent.
• Kununu and Google reviews: average star rating and sentiment analysis of the review texts
• Social sentiment: the ratio of positive to negative mentions in social media. Tools like Brandwatch or Mention help with automated analysis.

3. Brand loyalty:

• Repeat purchase rate: how many customers buy from you again?
• Customer lifetime value (CLV): how much revenue does a customer generate over the whole relationship?
• Share of wallet: which share of the spending in your category does a customer place with you?

Free and low cost measurement tools

You do not need a six figure market research budget to measure your brand:

• Google Search Console (free): branded search queries, impressions and click rates for your brand name
• Google Trends (free): how search interest in your brand develops over time, compared with competitors
• Google Alerts (free): notifications when your brand name is mentioned somewhere new on the web
• Social media analytics (free): reach, engagement and follower growth on your channels
• Typeform and Google Forms (free or cheap): customer surveys on brand values and NPS
• Hotjar (freemium): user behaviour on your website, how do visitors interact with your brand?

Brand tracking: measure and evaluate regularly

A single measurement is worth little, the value lies in tracking over time. We recommend this interval:

Monthly:

• Branded search volume (Google Search Console)
• Social media metrics (followers, engagement, reach)
• Website traffic from direct visits (a proxy for brand awareness)
• New Google reviews and the average score

Quarterly:

• NPS survey (can be set up as an automated email survey after every completed project)
• Competitive benchmark (how does your visibility develop in comparison?)
• Content performance (which content strengthens brand perception the most?)

Annually:

• A comprehensive brand survey (aided and unaided awareness, brand image dimensions)
• Brand audit (checking all touchpoints for consistency)
• Strategy review (is the positioning still right? Have market or target group changed?)

Calculating brand ROI

The ultimate question: what does your brand investment bring you? The calculation is not trivial but it is possible:

Direct brand effects:

• Price premium: can you charge more than no name competitors? (Compare your average prices with the sector average.)
• Acquisition cost: are your costs per new customer falling over time? (Strong brands have lower CAC.)
• Conversion rate: do visitors convert more often because they know and trust your brand?

Indirect brand effects:

• Recruiting: can you fill positions faster and more cheaply?
• Negotiating position: do you have a stronger position with partners and suppliers?
• Crisis resilience: does your brand survive setbacks better than unknown competitors?

A rule of thumb from our experience: every euro invested in consistent brand management generates a return of 300 to 700 percent over 3 to 5 years, provided the brand strategy is sound and the execution consistent.

Brand architecture: single brand, family brand and umbrella brand strategies

As soon as a company offers more than one product or service, the question of the optimal brand architecture arises. The decision between a single brand, family brand and umbrella brand strategy has far reaching effects on brand perception, the marketing budget and long term scalability. For companies in the German speaking market, where mid sized firms form the backbone of the economy, a well considered brand architecture is a decisive competitive advantage.

The three basic models of brand architecture

Every model has specific advantages and disadvantages that weigh differently depending on company size, industry and growth strategy.

Single brand strategy (house of brands)

In the single brand strategy every product or service carries its own brand with its own name, logo and visual identity. The parent brand steps into the background or is invisible to end customers.

• Advantages: maximum flexibility in positioning, no risk of negative brand transfer, the option to address different target groups precisely
• Disadvantages: high marketing cost because every brand has to be built separately, no synergy in brand awareness
• Suitable for: companies with very different target groups and product categories
• Example from the region: Henkel with Persil, Pritt, Schwarzkopf, each brand stands on its own

Family brand strategy (endorsed brands)

The family brand strategy groups related products under a shared brand, with the parent brand visible as a guarantor of quality. The individual products or services carry their own names but are clearly assigned to the parent brand.

• Advantages: synergy through the shared parent brand, transfer of trust to new products, moderate marketing cost
• Disadvantages: limited positioning options, the risk of brand dilution with too many sub brands
• Suitable for: mid sized companies with related product lines
• Example from the region: Raiffeisen with Raiffeisen Bank, Raiffeisen Leasing, Raiffeisen Capital

Umbrella brand strategy (branded house)

In the umbrella brand strategy all products and services appear under a single brand. There are no sub brands, the parent brand is the only brand.

• Advantages: maximum synergy, the lowest marketing cost, a strong unified brand perception
• Disadvantages: high risk in a brand crisis (it affects all products), difficult with very different target groups
• Suitable for: companies with a homogeneous offer and a unified target group
• Example from the region: Red Bull, all products and activities run under the parent brand

Hybrid brand architectures

In practice most successful companies in the German speaking market use hybrid models that combine elements of different strategies. According to a study by the Vienna University of Economics and Business, 67 percent of the Austrian top 500 companies rely on hybrid brand architectures.

A typical hybrid model for a mid sized company could look like this:

• An umbrella brand for the corporate identity and B2B communication
• Family brands for the different business areas
• Single brands for flagship products or special market segments

Deciding on a brand architecture: a framework

The choice of the right brand architecture depends on several factors. Use the following assessment scheme:

• Homogeneity of target groups, the more similar your target groups, the more an umbrella brand strategy suits you
• Product relatedness, closely related products benefit from a family brand, while completely different products need single brands
• Brand equity of the parent brand, is your parent brand already well known and positively charged? Then use that advantage with a branded house strategy
• Growth strategy, are you planning acquisitions? Then a flexible house of brands strategy is advantageous
• Budget constraints, with a limited budget an umbrella brand strategy is often the only viable option

Migrating a brand architecture

Converting an existing brand architecture is a complex undertaking that in the German speaking market takes on average 18 to 36 months. Typical scenarios are:

• Consolidation, after acquisitions single brands are brought under one umbrella brand (for example after a takeover)
• Diversification, single brands are spun out of an umbrella brand to open up new markets
• Restructuring, the existing architecture is adapted to a changed company strategy

The key to success lies in step by step migration with clear communication to all stakeholders. An abrupt switch can lead to a considerable loss of brand equity.

Brand and sustainability: purpose driven branding

Sustainability has long stopped being a niche topic, it has become a central element of brand identity. Companies in the German speaking market that integrate an authentic sustainability purpose into their brand benefit from higher customer loyalty, greater appeal as an employer and stronger brand equity in the long run. At the same time the topic carries risks: greenwashing is spotted quickly by critical consumers and can do lasting damage to a brand.

The German speaking market and sustainability

The importance of sustainability for purchase decisions in the region has risen significantly in recent years:

• 79 percent of Austrian consumers say that sustainability influences their purchase decision (Austrian sustainability monitor 2025)
• 64 percent are willing to pay a premium of up to 15 percent for sustainable products
• 52 percent have switched brands in the last 12 months because of a lack of sustainability
• 83 percent of generation Z in Austria expect companies to take a clear stance on environmental and social topics

These numbers show: sustainability is not a nice to have but a business imperative. Companies that ignore this trend risk their competitiveness in the long run.

Purpose driven branding: more than marketing

A sustainable brand purpose goes far beyond marketing messages. It has to be lived throughout the company, from the supply chain through production to customer service. The most successful purpose driven brands in the region share the following traits:

Authenticity:

• The purpose is anchored in the company history or the founding values
• Sustainability goals are measurable and verifiable
• Progress and setbacks are communicated transparently
• Employees are actively involved in sustainability initiatives

Consistency:

• The purpose runs through all brand touchpoints, from the website through the packaging to the customer conversation
• Marketing statements match what the company actually does
• Uncomfortable decisions are made in line with the purpose as well

Relevance:

• The purpose addresses a topic that genuinely matters to the target group
• It offers a concrete contribution to solving a social or ecological problem
• It differentiates the brand from the competition

Sustainability communication: dos and don'ts

Communicating sustainability is a tightrope walk. In the German speaking market consumers are particularly critical and well informed.

Dos:

• Concrete numbers and facts instead of vague promises ("we have reduced our CO2 emissions by 34 percent" instead of "we care about sustainability")
• Use independent certifications (B Corp, Blauer Engel, Austria Bio Garantie, economy for the common good)
• Include the whole value chain, not only the final product but suppliers and logistics as well
• Storytelling with real protagonists, show the people behind your sustainability initiatives
• Publish progress reports, regular updates show that sustainability is not a one off project

Don'ts:

• Greenwashing, exaggerated or misleading environmental claims. In the region legal consequences are increasingly likely under the EU green claims directive
• Cherry picking, communicating only positive aspects and keeping quiet about the problematic ones
• Buzzwords without substance, "climate neutral", "environmentally friendly" or "green" without evidence and explanation
• Distraction, highlighting small sustainability initiatives to draw attention away from bigger problems

Sustainability as a differentiator

For companies in the German speaking market sustainability offers a unique opportunity to differentiate. In many industries products and services have become interchangeable, and purpose can make the decisive difference.

Strategies for differentiating through sustainability:

• Circular economy, design products so that they can be repaired, reused and recycled
• Local value creation, position production in Austria or the EU as a mark of quality and sustainability
• Social sustainability, fair working conditions, diversity and social engagement as brand values
• Transparency, open communication about supply chains, production conditions and environmental impact
• Education and empowerment, support customers in acting more sustainably themselves

Measuring the sustainability impact on the brand

To quantify the contribution of sustainability to brand identity you should collect the following metrics:

• Brand purpose score, measures how strongly consumers associate your brand with a clear purpose
• Net promoter score (NPS), segmented by sustainability conscious and less conscious customers
• Share of voice in sustainability topics, how present is your brand in the public sustainability debate?
• Employer branding metrics, number and quality of applicants, retention among talent that cares about sustainability
• Price premium, which premium can you achieve compared with non sustainable competitors?
• Customer lifetime value, do sustainability conscious customers buy more often and stay loyal longer?

A long term study by the University of St. Gallen shows that companies with an authentic sustainability purpose increase their brand equity over a period of 5 years by on average 28 percent more than comparable companies without a clear purpose. For smaller companies in the region this is a strong argument for treating sustainability not as a cost factor but as a strategic investment in brand identity.