The Nature of Branding

Reading time: 7min

Domain: Branding
Level: Intermediate
Type: Principle

Branding isn’t about pretty logos, fancy colors, or “good vibes.”


It’s a pragmatic tool to make more money by shaping behavior through deliberate associations.


Most founders treat branding as an afterthought or a mysterious art.

They end up in recovery position while Apple, Coca-Cola, and Harley-Davidson print money selling premium products to loyal customers.

The difference isn’t luck. It’s understanding branding as an association game.

What Branding Really Is

Forget vague textbook definitions like “a shared feeling” or “a promise fulfilled through time.” They sound nice but tell you nothing actionable.


Let’s go back to the origin: cowboys branding cattle.

Cowboys, Cows, and Logos

Imagine Michael-Fred, a rancher.

The guy keeps losing his cows in nature and it is driving him crazy. He loses money and doesn’t even know if that’s theft or just life happening here.

After some time, he begins to suspect Jean-Jérémy, his neighbor, of stealing from him.

One day, he goes to confront Jean-Jérémy. Jean-Jérémy swears to him that he has nothing to do with it.

At night, because of this whole disappearing cow thing, Michael-Fred can’t sleep.

He’s ruminating and dwelling on the whole thing... Suddenly, an idea strikes him.

Michael-Fred goes out front and, lit by the moonlight, heats a metal rod with a uniquely weird mark on it and brands each and every one of his cows.


Each cow now has a big “M-F” written on its ass.


“Every time I lose a f*cking cow, people will know and be able to bring them back to me,” he says to convince himself.

Weirdly, Michael-Fred was right.

Jean-Jérémy started to bring back M-F’s cows from time to time. M-F didn’t get back all lost cows but certainly started losing less and less money by modifying the whole town’s behavior towards his cattle.

But how did a logo branded on a cow’s ass change a whole town’s behavior?

The Associations Game

Three types of cows exist in the wild:

  • The wild cow (no logo): You see it, say “yo,” it moos back, and you keep walking. Take it, eat it, sell it, whatever. No consequences.
  • The branded cow with an unknown logo: You know it belongs to someone. You hesitate. There might be repercussions.
  • Michael-Fred’s cow (w/ recognizable logo): You instantly know the owner. If you like Michael-Fred, you bring the cow back (“Thanks, stranger!”). If you hate him, you might throw a barbecue anyway.

The logo doesn’t just mark ownership. It creates an association between the cow and Michael-Fred. That association changes your behavior.

Branding is a game of associations. Your goal is to create the strongest, most favorable ones possible so people behave in ways that benefit you at scale.


It’s large-scale education.


A brand is like a bouquet of flowers.

Your core business is the main flower. You choose its look, logo, colors, typography, guidelines, etc. Then you deliberately pair it with other flowers to create a coherent and meaningful bouquet. I.e., you make the best possible associations of flowers.

Random flowers on a table look like a weird gardening workshop is about to start.

A well-curated bouquet makes your girlfriend say “Wow.”

Cheap branding agencies stop at the visuals. Great ones build symbols AND a strategy: a plan to make powerful pairings.

Why Branding Makes Money

Let’s play “Stylish Bouquet vs. Shit Bouquet” with three giants:

  • Nike
  • Coca-Cola
  • Persi

Nike

Nike has a logo that enables strong associations:

  • Michael Jordan
  • Mbappé
  • Tiger Woods
  • leadership
  • excellence
  • victory
  • ...

The name itself means victory. Everything reinforces it.

You see the swoosh, and you think “I want to win.”

Clear bouquet.

Coca-Cola

Coca-Cola links to:

  • summer
  • beaches in Bali or Hawaii
  • friends by first name
  • family reunions
  • joy
  • relaxation
  • santa

Timeless moments and human desires that follow you throughout your whole life.

Relentlessly reinforced at the right time, like Xmas.

Pepsi

Pepsi talks about:

  • Coke
  • fleeting feeling of rebellion
  • “That’s what I like” slogan, which you can just answer “Uh, no I don’t” to

They tried changing the logo but never built real new associations.

They marked the cows’ asses, but never told who Michael-Fred is and what he’s standing for.

So, now we can’t summarize what Pepsi stands for.

Bad bouquet.

Nike, Coca-Cola, and Pepsi: Full Circle

With a good bouquet like Nike’s, you can say:
“Want to win? Buy this.”, and it works.

With a good bouquet like Coca-Cola’s, you can say:
“Want to feel happy and relaxed? Buy this.” and it works.


People change behavior.


When Pepsi says “Want a taste we’re better than a Coke,” people say “No thanks.”

How To Create a Badass Brand?

  1. Start with a weak brand (just a logo, no associations).
  2. Pair it deliberately with entities your ideal customer loves (e.g., winners in sport).
  3. Once strong, slap the logo on a generic product (e.g., shoes).
  4. A customer buys not just shoes, but “a piece of the association.” They tell their friends, “These are what MJ wears,” but really think, “I’ll become more like MJ by wearing this.”
  • You sell a premium product that feels made for them.
  • They get aspiration.
  • You get fatter margins and loyalty.

Win-win.


This is why strong brands command higher prices, easier acquisition, and stickier customers. It hits every business lever: unique, expensive, sticky, low cost.

Branding amplifies everything but does not keeping the actual promise. That’s on you and your products and services.

Sell something good!

Practical Brand Building

Branding = deliberate associations created through real results.

Good branding = pair your thing with what your ideal customer already loves, triggering positive behavior.

Practical playbook:

  1. Create symbols built to last. Logo, colors, and guidelines meant to last for decades, like Coca-Cola’s logo and bottle silhouette. Clear constraints + repetition = stronger recognition.

  2. List the right “flowers”. Deeply understand your ideal customer. What concepts, people, or values do they admire? These are your target associations.

  3. Reinforce everywhere. Every post, DM, ad, or marketing action should strengthen the bouquet. Marketing glues the flowers together to form your bouquet. Hammer down your symbols on the chosen flowers.

  4. Start small, expand later. Adjacent associations first allow you to build strength. Once anchored, add the bolder ones.

  5. Tend the garden. Plant what you chose. Repeat without shame. Pull weeds (remove the bad associations). Evolve symbols gradually. Refine the brand. Don’t burn it down by changing everything all the time.

Make The Mistakes and Learn From Them

Mistakes are inevitable.

Bud Light’s 2023 Dylan Mulvaney campaign was a massive misassociation for their core audience. Sales dropped sharply (~15-26%), costing ~$1.4 billion.

Their fix: They stopped the bad pairing and strengthened better ones (UFC, comedians).

Don’t attack the bad flower (here, the influencer). Fix the bad association by removing the bad flower and adding even more better flowers to the bouquet.

There is no 100% perfect association.

Haters will always exist.

Aim for a majority of positive associations across a wide reach.


But remember, branding is not magic. Even the strongest brand dies if they sell shitty stuff.


Deliver real value. Then brand the hell out of it.

What Happens With A Good Bouquet

If you create strong symbols, list and choose good flowers, strengthen associations relentlessly through marketing actions, and tend the garden consistently, you’ll have a unique brand that can to sell things at a premium.

Do this right, and you won’t have to fight competitors.

You’ll make your offer feel unique and inevitable.

Customers will come back for more of that unique feeling.

Now, you have the basics. Go build a bouquet worth owning.

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