Branding is to Create a Mental Space of Categorization

Branding is to create and maintain a mental space in the mind of target buyers through its leadership in a product or service category or sub-category.

A primary objective of branding is to differentiate one's offering to enable the command of a premium price and to achieve supernormal profits above the market norms. However, such supernormal profits will lure imitators, and market competition may eventually normalize these profits, diminishing the brand’s value over time.

Branding, from a strategic viewpoint, must be reviewed, renewed, reenforced and re-invented from time to time.

Consider a newly opened Thai restaurant. If it aims to create and replace the mental space of prospective consumers as a generic "authentic" Thai cuisine, it will be unlikely to succeed for that mental space is probably overcrowded. Alternatively, if the branding strategy targets the main categories instead, like "boat noodle", "tom yum (spicy shrimp) soup", or "Pineapple fried rice", it may still encounter significant challenges. This is because altering consumers’ established perceptions of what constitutes the “classic or most recognized flavor” is an onerous task.

Therefore, the restaurant might consider targeting a sub-category for branding where there is ample mental space for the Thai food enthusiasts, such as "tong yum crab soup", "Street boat noodle", or "Ching Mai Khao Soi". Aficionados of Thai cuisine are often eager to explore various styles or regional specialties, even if they have a preferred Thai dish that predominates their palate.

Branding resides within the memories of prospective customers! Memory influences purchasing decisions, and in turn, these decisions impact memory. When consumers contemplate Thai cuisine, they might initially recall tom yum soup, which could lead them to consider tom yum crab soup. In this moment, a brand could act as a key memory trigger. Being recognized as a frontrunner in specific product sub-category, often known as having a “signature dish,” can significantly contribute to brand building.

Besides the importance of mental availability, don't forget the aspect of physical availability when it comes to branding!