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Have you ever come across this very basic question?
Is a company recognized by a brand or a brand is known by its company name?
Sometimes, yes; there may be an occurrence of confusion that brands and companies are two different entities and have different meanings and purposes. It is necessary to put the company’s name at the front to reflect what the company's dealing with. Similarly, a brand is the face of the company with which the consumers will build trust. They both play significant and distinguished roles in the marketing and advertising field. Therefore, brand and company are different, but intermingled.
How can one analyse and recognize the difference? Let us understand both in different perspectives by definition and its usage.
A brand represents a company’s products or services. A company is being differentiated from other companies in the market with a company name. Whereas a brand name works as a differentiator from the products or services of other companies.
A company can have many brands with many names that serve different purposes in the market. For example, Inditex is the world’s largest fashion retailing company that has eight brands: Zara, Pull & Bear, Massimo, Dutti, Bershka, Stradivarius, Oysho, Zara Home, and Uterqüe.
Some popular brands may have the same name as their company’s name if they feel the convenience to refer all their products or services with one single name, such as Sony, Nike, etc.
The brand name is an intangible asset of a company dealing with different products or services. To do registration of a brand name or trademark, the application shall be done under the trademark department. No name search is required for trademark registration. Conducting free public trademark is only required.
A company is an individual legal entity having its name and business. It includes legal procedures like the filing of income tax returns, annual filing, etc. The name of the company is registered under the Ministry of Corporate Affairs. In this case, a name search is required under the company name database.
A brand creates an urge for buying or using and builds an emotion while thinking about certain products or a company. It is a promise to the customers which they recall and are loyal to. It is created to spread awareness, build trust, to meet customers’ expectations and demands. For instance, the brand iPhone caters to lifestyle and serves as a trusty image regarding the company or various products category under the company name Apple Inc.
On the other hand, a company stands intending to produce and promote its products and services. It is an organization that cares about profits and revenue.
Let us first be clear with what we are discussing.
Brand: Depending on the products and services, a company proposes a brand name with the purpose of sales and advertisement. It does not require any legal suffixes. As an example, Zara is a Spanish clothing brand. A brand can serve multiple categories. Zara primarily started with clothing, but additionally puts their paws on shoes, swimwear, beauty, and perfumes.
Company: The name of a company is given under the Companies Act with the purpose to make a profit by delivering products or services. A company must have a suffix with either LLC, private limited company, Corp, or other various legal endings depending on its presently operating business structure. For example, Coca-Cola Company, ABC Private Limited Company, etc.
Therefore, company is an organization and brand reflects the image and personality of the company’s products and services. The two things can overlap, but knowing the differences help the organization to market efficiently and the consumers to understand their products or services properly.
Brandbajade.com provides services to its clients with naming of a new brand or renaming of an existing brand. Brandbajade.com also develops brand guidelines which have lasting impact on the brand and company’s performance.
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