How to apply Pareto`s principle in product branding

Pareto`s principle
Photo by: Scott Thomson

Pareto`principle says that 80% of the effects are caused by 20% of our actions or expressed in another way 80/20. This is not a law, because the quotient can be varied according to our actions. Especially, if we focus on the essential things when we act, a better effect can be caused by fewer actions.  This principle can be applied on many domains like the branding of your product.

When consumers see your product they first see its brand and they have certain expectations from your product based on its image. The brand is far more than the objective value of your product and contains informations characteristics, quality and presentation. Finally, the consumer buys the brand and not the product itself so you should really focus on building your brand.

How to apply Pareto`s principle on the process of product branding?

1. step: Identify the brand type, that causes the major results for your long-term business… 

a) Note on a piece of paper which kind of brand you want to create! Select one of the following categories, in which your product should fall in: 

  • no brand (e.g. material goods)
  • brand as a reference point (e.g. product from a certain country)
  • brand as personality (e.g. Levi`s Jeans)
  • brand as ikon (e.g. Adidas)
  • brand as business (e.g. Ikea)
  • brand as policy (e.g. the Body Shop)

b) Write down which attitudes you connect with your product:

  • Which feelings are you connecting with it? How would you name them?
  • How do you perceive it? What are you thinking about it?
  • What behavior do you connect with it?

c) Are your attitudes fitting to the brand you want to build (compare a) with b)? 

2. step: Search for key information for making your product more competitive now…

  • Interview potential target customers/clients and introduce your product to them. Find out what they wish and what they are still missing in your product. What do they think about it? What do they communicate directly or indirectly?
  • Make a list with all the mentioned issues you have found out within the interviews to make your product more competitive, because only in the interaction with your customers/clients you can complete the branding process.

3. step: Use your resources correctly in adapting your product

  • Now have a look at your issues list (see step 2) and see how you can adapt them practically. Write next to the issues the solutions you will implement next.
  • Take only the important issues (see step 2) and reduce or eliminate points that make no sense to you or do not effect in a considerable enhancement of your product.
  • Spend more time on implementing those real important things, whereas reduce others that do not count that much in this period. As said in Pareto`s principle focus only on the essential things, then you will obtain better results by fewer actions. 

I would be really curious to see if this structuring helped you in adapting your product, making it more competitive and therefore more qualitative. Because a qualitative product influences your brand in a positive way.



  • Kirchler, E. (2011). Wirtschaftspsychologie. Individuen, Gruppen, Märkte, Staat. 4. vollständig  überarbeitete Auflage. Hogrefe: Göttingen.

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