Why is it that some businesses and products become winners, while others fall behind? The answer lies in a smart branding strategy, so let’s look at one of the key rules of branding. You see, most business owners believe growth means expansion. They add more products and cast a wider net, but it doesn’t help. The companies that dominate their markets actually do the opposite.

For example, Chevrolet attempted to market ten different car models simultaneously. Such a move only created confusion. Customers couldn’t articulate what Chevrolet represented (except for the Corvette, which stood alone with a clear identity). American Express made the same miscalculation when it launched dozens of credit cards, attempting to become a financial supermarket. As a result, their market share shrank.

This may sound counterintuitive, but the power of a brand is inversely proportional to its scope. A narrow focus creates strength in consumers’ minds. Due to our psychology, we instinctively trust specialists over generalists, since specialization signals mastery. If you needed heart surgery, would you choose a general practitioner or a cardiologist? This same mental shortcut applies when customers evaluate brands.

And it works in all industries. For example, Howard Schultz built Starbucks into a billion-dollar empire by refusing to be just another restaurant. He decided to place a bet on coffee expertise, and it paid off! Try to find someone who’s never heard of Starbucks coffee. Or here’s another example: Subway decided to specialize in submarine sandwiches rather than competing across the entire fast-food spectrum.

A really curious thing is that actual quality matters less than perceived quality. Your product might be objectively superior, but if customers don’t perceive it that way, it’s commercially irrelevant. So keep in mind that brands are not built solely on quality. Of course, your product has to meet the standards and satisfy the customers. But what you really want to achieve is owning one crystal-clear idea in the collective mind.

In a universe of similar products, which word defines yours? Just like Mercedes-Benz is perceived as prestige or Volvo as safety, you need to find your word. Remember that a brand is an idea or concept you own in the customer’s mind. That is why you must narrow your brand’s focus to become memorable.