Corporate Branding


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Corporate Branding

  1. 1. CORPORATE BRANDING The New Global Trend Anupama & Nizar
  2. 2. “ India has the brand capital.It has the intellectual capital.All we need is a sense of belief in ourselves that we can turn our natural advantages into the creation of global brands ”. -DIRUBAI AMBANI
  3. 3. <ul><li>Manual Castells :- </li></ul><ul><li>A new economy emerged around the world </li></ul><ul><li>Shift in the power away from nations towards multinational </li></ul><ul><li>Partnership with foreign companies </li></ul><ul><li>Developing cross –border buyer-supplier relations </li></ul><ul><li>Performance of the companies is directly linked with the strength of their brand name. </li></ul>
  4. 4. <ul><li>Meaning of Corporate Branding </li></ul><ul><li>It is not a by-product,ad campaign,logo,or a slogan </li></ul><ul><li>It is the product of millions of experiences that a company creates </li></ul><ul><li>Davis:- </li></ul><ul><li>Composite of all the experiences, encounters & perceptions a customer has with a company. </li></ul><ul><ul><ul><li>i.e build trust in the company & not in a particular product. </li></ul></ul></ul>
  5. 5. <ul><li>Aaker:- </li></ul><ul><li>Represent an organization that stands behinds products in spirit & substance </li></ul><ul><li>Reflects its heritage,value, culture, people,& strategy. </li></ul><ul><li>The very essence of a company are value& priorities; </li></ul><ul><li>i.e,innovation,perceived quality,customer concern </li></ul>
  6. 6. <ul><li>Product Branding vs. Corporate Branding </li></ul><ul><li>Davis:-it strives to build trust in the brand by allowing the consumer to fit product perception & brand image into one. </li></ul><ul><li>Product branding model clearly delineates the corporate brand from its range of stand-alone products. </li></ul><ul><li>e.g. Unilever, P&G, CavinKare, Paras etc. </li></ul><ul><li>Its main advantage is the easy entry & exit. </li></ul>
  7. 7. <ul><li>It is expensive to build multiple brands & </li></ul><ul><li>making it difficult to establish strong linkage </li></ul><ul><li>between the corporate entity & its portfolio of </li></ul><ul><li>Brands. </li></ul><ul><li>Hatch & Schultz, distinguish 6 differences </li></ul><ul><li>between product & corporate branding; </li></ul><ul><li>The shift in focus from product to corporation </li></ul><ul><li>of the branding effort. </li></ul><ul><li>A different exposure to the organization,which </li></ul><ul><li>makes the firms behavior & its interaction with </li></ul>
  8. 8. <ul><li>society much more visible . </li></ul><ul><li>The relation of the brand with all the company stake holders, not just customers. </li></ul><ul><li>The requirement of organization wide support. </li></ul><ul><li>The temporal dimension of corporate brands includes past & future, not just present. </li></ul><ul><li>The greater reach of corporate brands than product brands is that they take on more strategic importance . </li></ul>
  9. 9. <ul><li>Need for Corporate Branding </li></ul><ul><li>Every successful corporate brand has the </li></ul><ul><li>capacity to communicate its company’s core </li></ul><ul><li>beliefs & attitudes to its target customers. </li></ul><ul><li>Strong corporate brands have average 5% higher </li></ul><ul><li>Return to their share holders than weak brands. </li></ul><ul><li>The founder & Chairman of Sony, late Akio Morita, </li></ul><ul><li>says that ,the company name is the life of an </li></ul><ul><li>Enterprise. </li></ul>
  10. 10. <ul><li>It carries responsibility & guarantees the quality of the product. </li></ul><ul><li>Very appropriate to service industries. </li></ul><ul><li>A strong corporate brand commands a premium price & makes marketing more efficient. </li></ul><ul><li>The world’s No.1 mobile ph manufacturer, Nokia, has been steadily working on its corporate brand name & the mgt of consumers perceptions over the last few years. </li></ul>
  11. 11. Corporate branding process <ul><li>Are built over time </li></ul><ul><li>“ corporate branding must reflect the organizations core values” </li></ul><ul><li>Discovery process </li></ul><ul><li>Strategy </li></ul><ul><li>Communication </li></ul><ul><li>Management </li></ul>
  12. 12. 1.Discovery process <ul><li>Understand the prospective audiences </li></ul><ul><li>Company should have a clear idea about the market </li></ul><ul><li>Leads to the allocation of resources not just in terms of marketing, but also interms of mkg, mfg, HR, R&D etc. </li></ul>
  13. 13. Case in point : Philips and acer computers <ul><li>- “ Let’s make things better” </li></ul><ul><li>- broken “made in Taiwan” to become the </li></ul><ul><li>world’s third largest manufacturer of PCs </li></ul><ul><li>Careful construction of a strong brand image </li></ul><ul><li>helped to succeed even in Japanese market </li></ul><ul><li>“ aim is to become more consumer-oriented” </li></ul>
  14. 14. audiences?? <ul><li>Not only external customers but also internal customers, i.e., employees </li></ul><ul><li>The people of an organization provides the basis 4 the corporate brand image </li></ul><ul><li>Case in point : IBM in E-Business(1997) </li></ul><ul><li>First brought the idea to its internal customers, educated & trained the employees on E-Business </li></ul><ul><li>then it went to the outside customers </li></ul>
  15. 15. 2.Strategic process <ul><li>Develop a strategy to communicate the vision of the brand </li></ul><ul><li>In the globalize world, the only alternative to differentiate the company is its brand </li></ul><ul><li>case in point : LG Electronics India Pvt.Ltd. </li></ul><ul><li>It was able to compete a nationwide launch within 5 months </li></ul><ul><li>Others taken 2 years for doing the same </li></ul><ul><li>Others ignored the eastern India </li></ul>
  16. 16. <ul><li>Strategy used : differentiated its products on the basis of technology </li></ul><ul><li>Televisions : Golden Eye </li></ul><ul><li>Refrigerators : Preserve Nutrition </li></ul><ul><li>Washing machines : Chaos punch Plus Three </li></ul><ul><li>Cricket Game in Televisions in 2003 </li></ul><ul><li>Resulted in 15% increase in TV sales </li></ul>
  17. 17. <ul><li>“ Building a strong brand equals building a strong brand experiences ” </li></ul><ul><li>- Walt Disney </li></ul><ul><li>Essentials </li></ul><ul><li>Build a corporate identity </li></ul><ul><li>(name, logo, house colors, tagline etc) </li></ul><ul><li>Build a corporate image </li></ul><ul><li>(the perception of the public about the company) </li></ul>
  18. 18. 3.Communication process <ul><li>Includes understanding the market leverage that the company has, the customer base, the opportunities that exist in the market </li></ul><ul><li>Done by </li></ul><ul><li>- advertising </li></ul><ul><li>- promotional efforts </li></ul><ul><li>- PR brand building </li></ul>
  19. 19. <ul><li>Case in point : Nike and BP </li></ul><ul><li>British Petroleum merged with Amoco rebranded itself as BP by launching “beyond petroleum” – campaign </li></ul><ul><li>76% employees were favorable towards the brand </li></ul><ul><li>90% employees felt that the company is going in the right path </li></ul><ul><li>Nike “Just Do It” </li></ul>
  20. 20. 4. Management Process <ul><li>Ensures that the experiences get from the company are consistent with the brand strategy </li></ul><ul><li>Is both internal and external </li></ul><ul><li>Continuous and should be linked with the culture </li></ul><ul><li>“ Cultural facet provides a link between brand and fire, particularly when they bear the same name (IBM, Nestle, Sony etc) </li></ul>
  21. 21. <ul><li>M anagement </li></ul><ul><li> ( Top management(CEO) </li></ul><ul><li> CEO BRANDING, Social capital ) </li></ul><ul><li>Internal Media </li></ul><ul><li>(Middle managers, (TV, print, www </li></ul><ul><li>Employees ) Surveys) </li></ul><ul><li>External </li></ul><ul><li>(products-customers, </li></ul><ul><li>Geographical spread, </li></ul><ul><li> public, govt etc </li></ul>
  22. 22. <ul><li>Case in point : Culture at Pan Public Hotel Group </li></ul><ul><li>President Ichigo Umerhara – corporate brand champion </li></ul><ul><li>Mission: “to take people successfully to places they have never been before” </li></ul><ul><li>Staff are called as ‘associates’ </li></ul><ul><li>“ hire on attitudes and train on skills” </li></ul><ul><li>No HR department and they call that as </li></ul><ul><li>‘ people Innovation’ </li></ul><ul><li>Departments </li></ul><ul><li>This has created the culture </li></ul>
  23. 23. Corporate Branding- Indian Scenario. <ul><li>The ability of Indian companies to prosper & be competitive internationally has a lot to do with the home base; </li></ul><ul><li>For Indian brands to really make it big internally, what will be needed is a leadership that matches international standards. </li></ul>
  24. 24. <ul><li>Limitations of Corporate Branding </li></ul><ul><li>The corporate-centric model of building brand has obvious advantages, but it has some inherent dangers also. </li></ul><ul><li>If the brand image is not consistently managed it may result in the loss of its value. </li></ul><ul><li>Wrong strategic decisions will results in adverse effects on the profitability & performance of the company. </li></ul>
  25. 25. <ul><li>Conclusion </li></ul><ul><li>It should be managed as any other long term asset. </li></ul><ul><li>It is a strong tool for realigning a corporate strategy. </li></ul><ul><li>As Klenin suggests,” brand builders are the primary producers in our so-called knowledge economy”. </li></ul><ul><li>Its role never disappears,& remains the </li></ul>
  26. 26. <ul><li>standard which the company upholds. </li></ul><ul><li>A well-drafted & professionally managed corporate branding strategy & the implementation plan can help to drive profitability & share holder value aligning the interest of the stakeholders, the mgt & the company. </li></ul>
  27. 27. <ul><li>For queries please contact </li></ul><ul><li>Professor and Head, Dept. of Mgt studies </li></ul><ul><li>NMCC Marthandam </li></ul><ul><li>Tamil Nadu </li></ul><ul><li>E-mail: </li></ul>