Perspectives · Principles

Premium brands choose depth, not breadth.

Expanding into many segments may sound wise, but for premium brands, it is often the first step towards dilution.

Quick summary

Premium brands create value by focusing on a specific customer segment and serving them deeper than any competitor, rather than trying to appeal to everyone. When the identity system is designed with that depth, the entire visual language, typography, colors, and presentation become signals that resonate between the brand and the right people it seeks to reach. Trying to please multiple segments at once does not strengthen the brand; it only dilutes it.

A premium brand is not stronger because it serves more people. It is stronger because it serves the right people, deeper than any competitor dares to. This is the principle that divides two completely different approaches to building a brand: diving deep into one audience or spreading wide across many segments. The choice you make will determine how the entire identity system will be constructed.

Wider does not mean stronger

There is a common misconception during growth phases: that a brand needs to look more familiar to the masses to reach more people. The typical result is a diluted color palette for "safety," messages rewritten for "everyone to understand," and designs gradually losing the details that distinguish them from the rest of the market.

This is not expansion. This is dilution.

Byron Sharp in his book How Brands Grow points out that larger brands often have a broader customer base because they are easier to recognize, not because they try harder to please everyone. Recognition is the result of consistently repeating a clear set of identity signals, not the result of diluting those signals to avoid offending anyone.

A brand is a person's gut feeling about a product, service, or organization.

Marty Neumeier, The Brand Gap

When a brand tries to create a "good feeling" in everyone at once, the result is often not creating any special feeling in anyone.

What does depth in identity design look like?

Designing an identity system in depth means that every choice stems from knowing exactly who you are talking to and what they need to hear.

A brand serving first-time home buyers will use a different visual language than a brand serving third-party real estate investors. Those two segments have different needs, different decision-making speeds, and what they need to feel when looking at the brand is also different. Using the same identity system for both serves neither fully.

Kapferer describes six facets of brand identity through his lens of identification: visual appearance, personality, culture, type of relationship with customers, the user image that the brand reflects, and the self-image users see in themselves when using that brand. The last two facets, reflection and self-image, only function when the brand knows it is speaking to a specific type of person. If the segment is too broad, those two facets become empty.

38%The higher price that a brand is perceived to be "meaningful and different" can suggest compared to the average competitor. Source: Kantar BrandZ (~2020).

The identity signal is a unique language

Jenni Romaniuk, in her research on brand identity assets, measures the value of an identity signal along two axes: the level of customer recall when encountered (Fame, or familiarity), and the extent to which it is uniquely associated with that brand without being confused with others (Uniqueness, or distinctiveness).

Brands that go broad often sacrifice uniqueness to increase fame. They use familiar colors, common fonts, and industry-similar messages for fear of appearing strange to those who do not know them. As a result, customers remember the industry, not the brand.

A brand that goes deep accepts that a portion of viewers will not understand it immediately, or even dislike it. In return, the right people will recognize it right away and feel that the brand is for them.

50 millisecondsThe time it takes for the first visual impression to form when a user looks at an interface. Source: Lindgaard et al., Behaviour & Information Technology (2006).

Identity system design for a specific audience

When Sinh Vũ begins to build an identity system for a brand, the first question is not "What do you want to look like?" but "Who is looking at this and what do they need to feel?"

That answer determines which typeface is used, as typography (the visual language of text) sends signals about personality and trustworthiness before the reader has read a single word. It determines how many colors are in the color palette and which color is dominant, as color is an asset to own, not just decoration. It dictates how the brand imagery looks, as stock photos (pre-shot images sold en masse) and custom brand photography convey two completely different messages about the level of care taken by the creator.

Every decision in the system is a sentence in a conversation with a specific person. If you don't know who that person is, the conversation will go nowhere, no matter how good the design technique is.

+32 points%The additional revenue of companies that invest the most in design compared to others over five years, based on a survey of 300 companies. Source: McKinsey & Company, The Business Value of Design (2018).

When should you expand your segment?

Not every brand should narrow down forever. But order is important.

A brand should go deep first: choose a segment, serve them well enough that they don't need to look elsewhere, and build enough identity assets for that segment to recognize the brand without needing to see the logo. At that point, expanding to a second segment is building on a solid foundation, not diluting from the start.

Expanding early without depth is betting that the marketing budget will compensate for the brand's lack of clarity. Sometimes it works in the short term. In the long run, you will have to spend more each year to maintain that level of recognition, rather than accumulating valuable identity assets that work on their own.

Wally Olins reminds us that a brand is expressed through four things: product, environment, communication, and behavior. When those four elements tell a unified story to a specific audience, the brand accumulates value. When they tell four different stories to four different segments, the brand spends rather than accumulates.

The Kantar BrandZ data on the 38% price differential comes from a synthesis of multiple industries and markets. This figure varies significantly by industry and specific competitive context. Use it as a directional reference, not a number that applies uniformly to every case.

What the identity system cannot do without this foundation.

A beautiful identity system without a clear target strategy will function like an expensive suit tailored to the wrong size. It looks good on the rack, but it doesn't fit anyone, and no one wants to wear it.

Sinh Vũ sees this repeated in many projects: a brand has a beautiful logo, consistent colors, but when asked "What does your ideal customer look like?" the answer is often "Anyone could be my customer." That is precisely when the identity system begins to operate less effectively, even though it still looks good technically.

Premium brands do not build identities to look premium. They build identities so that the right people look at it and think: "This is for me."

References

Marty Neumeier, The Brand Gap (2003). Byron Sharp, How Brands Grow (2010). Jenni Romaniuk, Building Distinctive Brand Assets (2018). Jean-Noël Kapferer, The New Strategic Brand Management (2012). Kantar BrandZ Global Report (~2020). McKinsey & Company, The Business Value of Design (2018).

Frequently asked questions

Does a premium brand necessarily have to be expensive?

Not necessarily. Premium here means that the brand chooses to serve a specific user group with a higher level of attention and quality than the industry average, rather than trying to reach every segment. The price is a result of that choice, not a starting point.

If I narrow my audience, will I lose potential customers?

In terms of quantity, it can decrease. But the remaining customers will recognize your brand faster, pay better prices, and refer others more because they feel that brand is truly meant for them. Kantar BrandZ reports that brands rated as 'meaningful and different' can command prices up to 38% higher than the average competitor.

What does the visual identity system have to do with selecting a target audience?

Directly relevant. Every design decision, from typography, color palette to information layout, sends signals to a specific group of people. A system designed for everyone often doesn't truly communicate with anyone. When you know exactly who you are speaking to, every design choice has a reason, and the entire system becomes naturally consistent.

← Back to Perspectives