Growing a brand in a sector where products or services are perceived as identical is tricky. However, it’s still possible to build a recognisable brand in a typically unbranded market. While it’s challenging, it’s a significant opportunity for those who do it well.
Before you start defining what makes your brand different, it helps to have strong operational foundations in place. Early decisions around how you handle company formations or structure your operations can impact long-term brand growth. Getting formation right is your first step. After that, you can focus on branding with more confidence in your compliance.
In this article, 1st Formations, UK leaders in company registration explains how to build a brand that can compete in competitive markets.
How to Grow a Brand in an Unbranded Market?
In an unbranded market, products appear undifferentiated. As a result, consumers tend to focus on price when making a purchasing decision. Examples of unbranded products include fuel, medicines, and building materials.
Competitors often use similar messaging and service models, which makes meaningful differentiation more challenging. However, with the right approach, you can successfully create a brand in an unbranded market. For example, many people buy branded over-the-counter pharmaceuticals that contain the same ingredients as a non-branded equivalent.
Why Branding Matters Even When Competitors Offer the Same?
If your product or service is exactly or almost the same as those offered by competitors, your branding becomes even more important. In these markets, your brand may be your most meaningful point of difference.
With a strong brand, you can reduce price sensitivity and build loyalty in low-loyalty markets. A clear brand identity can also help customers identify your product as the better option, even if the differences from others on the market are minimal.
Identifying What Makes Your Business Different
Even if your unbranded product is like others in the market, your business will likely still have some differences from its competitors.
To create a strong brand, try to uncover genuine points of difference in how you do things. For example, consider:
- The customer experience you offer (including speed, convenience, and reliability)
- Any specialist knowledge or niche focus within your team
- Quality assurance of your produc, it may be similar to others, but it may have some unique features
Differentiation should always be practical and evidence-based. So, ground your differentiation in facts, not feelings.
If you’re struggling to work out how you stand out, take a moment to think about your competitors. You may find it helpful to make a list of what they overlook and then evaluate how your business can fill that gap.
Building a Brand Identity That Stands Out
To create a stand-out brand identity in a crowded market, you need some key components:
- Clear value proposition
- Simple, recognisable messaging
- Visual consistency across all branding (i.e. packaging, advertising, social media, etc.)
- A personality that aligns with customer expectations (e.g. approachable, expert, efficient, etc.)
It’s worth thinking about the emotions or outcomes you want customers to associate with your brand. Consider the problems you’re solving and how you can communicate your solutions clearly. If there’s anything that you do that your competitors don’t, be sure to emphasise that too. For instance, a packaging update that highlights eco-friendly ingredients can immediately signal a difference.
Using Trust and Credibility as Differentiators
Credibility can cut through an unbranded, price-driven market. If consumers know they can rely on you, they may be more willing to pay a higher price.
Practical ways to build trust through branding will depend on your sector, but you could try:
- Creating unbiased education content: Sharing useful knowledge with your audience can help people trust you.
- Publishing case studies: Customers will feel more confident if they can read stories of other people’s success with your products or services.
- Being transparent with your processes: Being willing to share information about your business and how you operate can help potential customers understand what you do.
- Providing social proof: Reviews are an excellent example of social proof. Many customers find it helpful when a business publishes customer reviews on their website.
When you combine transparency with real-world evidence, you help customers move from comparing prices to recognising genuine value.
Creating a Customer Experience That Reinforces Your Brand
Branding isn’t just about visuals. It’s the entire experience of a brand.
Your customer experience should embody your brand. If you have a friendly persona but unhelpful staff, your branding will be damaged.
Consider optimising:
- Any onboarding processes for new customers, subscribers or clients
- Your communication style, including the copy on your website and how you speak to customers on the phone or in person
- Support responsiveness, offering great service can be a brand differentiator
- Transparency around pricing of processes; if you want customers to trust you, you need to be honest
Small refinements, such as streamlining your enquiry process to be more efficient, can reinforce the values you want customers to associate with your brand.
Communicating Your Brand Clearly and Consistently
Message consistency is essential in markets where customers struggle to see distinctions.
To grow a brand, focus on messages that highlight practical and measurable benefits, and avoid generic, unprovable claims. Clear explanations tend to resonate more than technical or abstract claims because customers in unbranded markets make fast, value-based decisions.
It also helps to use the same tone, wording, and value proposition across all your marketing and any communication touchpoints. Consistency in your messaging can help increase trust and credibility.
Leveraging Your Brand as You Grow
Expanding in an unbranded market can be difficult, but using your brand story in marketing can help drive growth. While consistency is key, you should still be prepared to adapt your positioning as competitors evolve. It’s important to keep up with the competition while staying true to your unique selling point (USP).
As you grow, you may add new products or services to your offering. Whenever you launch something new, make sure it ties into your core brand positioning. Otherwise, you may find that it’s necessary to create distinct brands for different ventures.
Start Your Branding Journey With Strong Foundations
Strong business foundations can support your branding ambitions. If you form your company with the help of a professional service provider like 1st Formations, you’ll be in a stronger position to start building a credible presence. Getting compliance right is a crucial part of establishing a business. 1st Formations can help you manage admin, freeing more time for branding.
Standing out in an unbranded market is possible with clear positioning, consistent communication, and customer-focused differentiation. Although unbranded markets can be challenging, taking practical steps to get company formation right and investing in effective branding can help you reach your business goals.
