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The paper highlights that in the process of identifying the brand essence, it is not enough to simply carry out quantitative research, but an in-depth study of the city's history and culture is also necessary - language, customs, myths, legends, symbols, values, and lifestyle. Valid responses on specially designed questionnaire for this research were collected in the city of Vranje from 389 participants (195 valid responses by residents and 194 by the visitors) while 16 participants participated in qualitative research (focus groups and semi-structured in-depth interviews). Determining the city brand essence requires the application of different research methods and techniques to understand the overall city's tradition and culture. A complete success in city branding can only be achieved if the brand essence is clearly defined, i.e. if this "core" generates enough of the brand's internal energy. Proposed solutions should provide an easier "orientation" in finding and managing the brand essence of the city. In this way, it is possible to discover the "heart and soul" of cities and activate their hidden potentials for brand development.