Internal branding is the process of a company educating, indoctrinating, and training its employees. This training not only enables workers to know the philosophy of their company, but also encourages and empowers them to live it out on the job and be loyal to the company they work for even in their personal lives. It attempts to infuse the company's products, staff, and environment with the pulse and reflection of the company's leadership and direction. Internal branding stems from the belief that every aspect of the place of business should move in the same direction.

Just as external branding can build the awareness and loyalty to a certain company or brand, so too can internal branding. When employees feel more connected and proud of the company they work for, they will generally spread the word to others. Loyal employees are also likely to perform much better on the job than those who feel no pride in their work or loyalty to their company.

Rather than just informing employees about sales goals or marketing plans, internal branding emphasizes the employee's role within the company's success. When a company is able to capture its mission and motive for business and successfully convey it to its employees, the results can be significant. Customers may gain confidence in the company and, therefore, trust that the quality, service, and outcome of their consumer experience will always hit the mark, regardless of the location.

One well-known coffee chain shut down all of its stores for a couple of hours in order to meet with employees and attempt to create an internal branding strategy. Typical focus areas in internal branding go beyond the uniform, greeting, and job description of each worker. It often attempts to share the mission and culture of the company with the employees so they, in turn, may align their work efforts accordingly.

Some businessmen believe branding to be gimmicky and a waste of time and resources. If the training and branding approach appears to be based on slogans or production goals, it will not fulfill its goal. Many believe, however, that internal branding that is done well can increase employee satisfaction and, in turn, company success.