Land Rover was a precursor of environmental branding even before Ford Motor took over the company. For instance, these British SUVs were typically displayed on podiums shaped like giant wooden compasses, underscoring the off-road, but nonetheless conservative, attitude of the brand. Also, in many showrooms, canoes and fishing and hunting gear would further convey an active outdoor lifestyle. Outside, a flashy test course was designed to emphasize the many wilderness-friendly characteristics of the products, and reinforce the brand attributes. Thus the retail space was fully aligned with the message conveyed through the product design, TV commercials, ads, website, and direct mailing. Environmental, or retail, branding was part of a 360-degree strategy.

Environmental branding is powerful in many ways. It is a three-dimensional experience, which considerably adds to the rather limited expression of the brand on a flat screen. In a retail store, there is no channel surfing and no TiVo (a digital video recorder that allows skipping television commercials at the touch of a button). On Chicago's North Michigan Avenue, Nike built the most extravagant shoe store since the markets of Istanbul. It has the height, darkness and grandeur of a gothic cathedral. To capitalize on the theme, the television commercials, website and merchandising of Nike depicted the same gothic atmosphere.

There is no other situation in which a brand manager has such a level of control over the brand experience. Moreover, the brand experience can be delivered with all its complexity and nuances. Environmental branding can literally delight the five senses and provide memorable experiences. Barnes & Noble bookstores are weekend destinations in the US. Part of the success is in the training of personnel, which is knowledgeable and respects the readers that patronize the store. More importantly, however, visitors are welcomed with the aroma of freshly brewed coffee. Thus, even the sense of smell can quite easily be touched with the smart use of aromatic brews and leather chairs.

Environmental branding is a combination of mood, look, and sensory perception created by the environment and the front-line personnel. It is complementary to product design, advertising, merchandising, web design, PR and generally everything that the customer can see, touch or perceive.

Environmental branding involves professionals from different disciplines, such as interior designers, architects, and hiring and training consultants. The management of the project should however remain under the authority of the brand manager, who will keep the team focused on capturing the positioning three-dimensionally... and within budget.

Branding a space does not have to be expensive. Actually, it can often fit within the budget constraints of an existing construction or remodeling project. A reasonable increase to a conventional budget can even trigger a disproportional increase of revenues and profitability, as many movie theaters have recently experienced. Whereas margins on movie tickets are slim, environmental branding allows movie theaters to retain their audience, who then spend more on drinks, food and video games.

The challenging issue is truly for the creatives to optimize the impact of the design within the set budget. This is the time when the client is exposed to actual samples of material—such as fabrics, stones, metals, and colors—that give a more realistic perception of the textures and surfaces. The review of the best possible materials, lighting systems, and architectural structures can become a long and grinding process, but it is worth it. For example, the creative use of colored glass (in sunny climates) can compensate for the lack of expensive lighting systems; brushed or blackened steel can be as striking as more noble metals; and video projectors can animate the dullest walls and panels like magic.

Most people have a hard time visualizing something that does not yet exist. An environmental branding project therefore makes extensive use of visual aids such as renderings to help the client—at all levels—and the vendors achieve consensus around a new design. These renderings can be paintings or Photoshopped pictures, capturing on flat boards the creative vision of the designers. They will be particularly useful in market research, to test customers' responses to specific design concepts.

Environmental design does not stop at the bricks and mortar. It should strive to delight the five senses. For instance, high-end department store Nordstrom employs a pianist in its environmental branding concept in the US. The live performance of classical pieces reinforces the high-end positioning of the store, while differentiating it from competition that plays conventional Muzak over speakers. Nordstrom also understands the importance of involving the personnel in the environmental branding concept. The Seattle-based company focuses attention on the recruiting, training, and compensation plan of its front-line personnel. This focus is reflected in the attitude of staff, which does not appear to be driven by bonuses. To the contrary, the salespeople are open, pro-active, helpful and caring, to the point where they regularly follow up with a thoughtful "Thank you" note in the mail.

This kind of white-glove treatment is to be expected in a luxury segment. Nevertheless, Ikea demonstrates that low end does not imply a poor buying experience. The Swedish company takes full advantage of the three-dimensional nature of its products to furnish its stores. Grounded in Scandinavian culture, Ikea is casual and respectful of the visitor in the same way as Barnes & Noble. Similar to the American bookstore, Ikea offers coffee—sometimes free of charge to enthusiasts who show up before opening hours—and even meals. Everything is done to keep entire families on the premises as long as possible, until the purchasing decisions are final. At a time of high customer expectations, which is intensifying dramatically in service industries, many could gain inspiration from this soft approach to salesmanship.

The softness is constantly delivered thanks to well-measured customer-control processes. Staples and Home Depot, specialty stores in the office supply and DIY fields, respectively, have both paid particular attention to processes that control the waiting time at checkout. For Staples, it goes to the heart of the brand's DNA, captured in the trademarked slogan "That was easy." Belgian supermarket GB addresses the same issue from a different angle: Video screens hang over checkouts to entertain customers while waiting.

Unfortunately, these processes are too often afterthoughts in environmental branding projects. As a result, unacceptable lines can be seen at service counters, check-outs, women's restrooms, and elevators. Those issues are not always easy to fix after the grand opening, and can surreptitiously affect the brand image.

Vincent Grimaldi de Puget is a leading brand strategist. He is a partner at GRIFIN PARTNERS, focusing on capital investing and business restructuring, and a visiting professor at US and European business schools.