| Corporate brand by any measure is very important to | | | | known for a time. |
| contemporary organisations. Corporate brand has | | | | According to Balmer (2001) a corporate brand is seen |
| become a valuable asset for a company, which some | | | | as a rare entity due to brands unique pattern of |
| times have value beyond the book value. | | | | development. Companies with corporate brands have |
| To answer the question stated above it is important to | | | | competitive advantages over those that do not have |
| explain what a corporate brand is. It is then also | | | | corporate brand. The brand name, logo plays a vital |
| important to look into the issue how a corporate brand | | | | role in awareness and it also provides the peace of |
| is beneficial to an organisation. What kind of financial | | | | mind to customers. Olins (2001) classed Manchester |
| benefit it can give to an organisation and to what | | | | United and British Airways as organisations with |
| extent it helps organisations to gain competitive | | | | corporate brands. Reason that these organisations |
| advantages over its competitors. | | | | have corporate brands is because that's how they |
| There are several definitions of corporate brand | | | | presented their brands through marketing such as T.V |
| presented by different authors and scholars. Some of | | | | advertising, Billboards and other marketing campaigns. |
| the defamations are as follow: | | | | These companies have spend millions of pounds on |
| David A. Aaker defined corporate brand as "As the | | | | advertising to have a corporate brand, as organsiations |
| brand that defines the organisation that deliver and | | | | with corporate brand believes that this will give them a |
| stand behind the offering, the corporate is defined | | | | competitive advantage. It can be stated by considering |
| primarily by organisational associations. In particular, a | | | | Olins statement that corporate brand is important for |
| corporate brand will potentially have a rich heritage, | | | | the organisations. |
| assets and capabilities, people, values and priorities, a | | | | Davis suggests corporate brands are not required by |
| local or global frame of reference, and a formance | | | | some companies, for example those that may have a |
| record." | | | | portfolio of brands such as Unilever and Proctor and |
| (Brand portfolio strategy by David A. Aaker, California | | | | Gamble, tends to use the branding of products rather |
| management review vol46 no3 spring 2004.) | | | | than implementing a corporate brand. This issue of |
| According to Balmer (2003) the corporate brand is | | | | importance of having a corporate brand has not been |
| seen as a sixth identity type referred to as the | | | | taken by these major organisations in past for |
| covenanted identity, which is viewed as independent | | | | example surf is a product by Unilever. Unilever's |
| and distinct. Balmer (2001) developed the mnemonic | | | | general emphasis is on product branding as compare |
| C2ITE (Cultural, intricate, tangible, ethereal and | | | | to one corporate brand. But the importance of a |
| commitment), this reflects the corporate brands unique | | | | corporate brand has been explored on these big |
| attributes and helps understand key characteristics of | | | | companies. |
| the corporate brand. | | | | Balmer stated in his journal of general management |
| While Lawer and Knox (2004) state that a corporate | | | | "Mighty proctor and gamble who traditionally espoused |
| brand is a way to conceive, manage and | | | | the idea that their brands should stand on their two |
| communicate corporate brand values in order to guide | | | | own feet, have realised the importance of managing |
| managerial decisions, actions and normative firm | | | | Proctor and Gamble as a brand. The company's chief |
| behaviour. It can then state that brand is generally the | | | | executive decided that in the future the company |
| name of a product or mark of ownership. | | | | would be presented as the ultimate corporate brand." |
| So being able to express its self truly and openly and | | | | (Corporate Branding and Connoisseurship by Balmer |
| then communicate the message to its consumers | | | | J.M.T Journal of management Vol 21 no 1 autumn |
| clearly. | | | | 1995.) |
| "The corporate branding philosophy, at it's core, | | | | From statements above it can be stated that |
| represents an explicit covenant between organisations | | | | corporate brand provides loyalty which means that |
| and it's key stakeholder groups, including customers" | | | | consumers will only stick with one brand and will not |
| (Balmer & Greyser, 2003) | | | | choose any other product. This can true in the case of |
| Corporate branding can be defined as "Corporate | | | | products like Rolex or Mercedes but when it comes to |
| branding refers to the practice of using a company's | | | | ever day's essentials such as milk and bread |
| name as a product brand name. It is an attempt to | | | | corporate branding is in that important, as we will not |
| leverage corporate brand equity to create product | | | | travel an extra mile to get a Safeway milk. Many |
| brand recognition."wikipedia.org/wiki | | | | people will just go to a nearest corner shop or a |
| Corporate_branding | | | | service station to get a bottle of milk. |
| The keeping of an organisations promise can lead to | | | | Organisations are now dealing with the much bigger |
| corporate brand equity; this is when consumers hold | | | | challenge in term of branding. It has discovered that |
| favourable, strong, and unique associations about the | | | | corporate brand has complicated and difficult rapidly |
| corporate brand in memory (Keller 1993). There are | | | | changing fundamentals. Balmer (2001) states that |
| many advantages of corporate branding as corporate | | | | corporate brands are cultural as they reflect the |
| brands represent the class and well known by every | | | | organisations subcultures. Consider the example of |
| body, for example once David Beckham said, "I can't | | | | Mercedes its corporate brand stands for high class, |
| even imagine using any nothing else then Adidas". | | | | luxury and high performance and it can be clearly seen |
| Though he is the contracted model for Adidas but at | | | | in sub culture of C-class S-class and M-class. |
| the same time it reflects that Adidas as luxurious and | | | | The key question arises here should organisations |
| expensive item and also a status symbol. This made | | | | adapt the concept branding? Corporate brands have |
| sports people with money buy that item. Rolex | | | | generally longer life cycle then the product brand. |
| watches can also be an example for this, Rolex are | | | | There is a bigger drawback attached to corporate |
| known as the watches for high-class people. This | | | | branding as if a company gets a bad publicity of its |
| makes people with money buy the Rolex watches to | | | | corporate brand it will affect its all the products. Balmer |
| show the class. This is the brand equity of Adidas and | | | | (2003) describes corporate brand as having the role of |
| Rolex. | | | | a driver for many stakeholders, therefore highlighting |
| Brand equity can be transferred to other products as | | | | the increasing importance of corporate branding. Olins |
| well. This can be seen in the case of VW buying the | | | | suggested that the organizations with no understanding |
| Skoda. Before VW took over Skoda's sales were | | | | of what are they about tend to fail in long-term. |
| declining but in recent years Skoda has improved and | | | | Corporate branding must be used properly and |
| its sales has gone up as well due VW's transferred its | | | | organisation with strong corporate branding must not |
| brand equity to Skoda. G.M motors have also bought | | | | take advantage of strong branding and keep the |
| different corporate brands such as Daewoo and | | | | promises and behave in an ethical way. Coca Cola |
| Volvo and have transferred the brand equity to them | | | | has used the advantage unethically when first |
| brands. | | | | introduced its water Dasani in U.K and it was later |
| This does not stop here there are so many other | | | | discovered it was nothing but Tap water from general |
| benefits an organistaion can have by having a | | | | water supply. It can also be seen in McDonald's case |
| corporate brand. Newman (2001) suggests that | | | | that they portray themselves as an organisation that |
| success rate of a new product or service can | | | | care about its customers by offering them clean food |
| increase by twenty percent if it has a corporate brand | | | | but there has been occasions when some of |
| behind it. Also costs could be reduced when launching | | | | McDonald's outlets were forced to close down due to |
| the product or service than if it did not have a | | | | supply of unhealthy food. It is important for the |
| corporate brand supporting it. | | | | organisations with strong corporate branding such as |
| This is due to the trust and credibility build by the | | | | Coca Cola, and Mercedes to stick with the values |
| organisations. Consumers prefer to stay with the | | | | they present. |
| organisation they have dealt with before. When | | | | Essay above suggests that the corporate brands are |
| Mercedes build the 4*4 people have bought the | | | | created to obtain the significance awareness in a |
| vehicles even though it was the first time Mercedes | | | | competitive market. Corporate brand have impact both |
| has launched a 4*4 vehicle. Mercedes has achieved | | | | externally and internally. Corporate brand have many |
| this through due to the string branding and consumer | | | | benefits such as gaining the competitive advantages |
| trust on them. | | | | over its competitors and achieving the economies of |
| Corporate brand has a longer life as compare to other | | | | scale. Organisation must manage their corporate |
| resources with in the company. For example Coca | | | | brands effectively and efficiently in order to get the |
| Cola the brand is much older then the plants and | | | | maximum benefit. |
| location used to make it. It is also older then the human | | | | It can also conclude from the authors mentioned |
| resources those make the product. Grant (1991) stated | | | | above that many organisations without a strong |
| that the corporate brand tends to decay slowly, and | | | | corporate brand will face difficulties in coming future. |
| strong corporate brands can decrease the competition | | | | So organisations without a corporate brand such as |
| in the market. Products have shorter lifecycle so | | | | Proctor and Gamble and Unilever have to work |
| corporate brands are preferred over just product | | | | towards achieving one strong corporate brand. |
| brand. | | | | Effective and strategic support of a corporate brand |
| A corporate brand is an intangible asset so it is difficult | | | | can make it easier for organisations to do business. |
| to copy as it is not a product from a production line. | | | | Corporate brand is stronger then the quality and price |
| Corporate brand represents a logo or a slogan that is | | | | of a product but to make it successful right strategies |
| protected by laws, which are in place. Slogans or logos | | | | are required. |
| are more secure then the product it self as it is easy | | | | So as John Stewart, former CEO, Quaker stated, "If |
| to copy a product but it is nearly impossible to copy a | | | | this business were split up, I would give you the land |
| logo. | | | | and bricks and mortar, and I would take the brands |
| Corporate brand helps achieving the economies of | | | | and trademarks, and I would fare better then you." |
| scope, which means it is less costly for a firm to | | | | Bibliography |
| produce two separate products than for two | | | | Ackerman L.D., (2000) Identity is Destiny, Leadership |
| specialized firms to produce them separately. For | | | | and the roots of value creation, Berrett-Koelher |
| example Nike has a slogan of "Just Do It" across the | | | | publishers |
| globe and through its advertising Nike can promote its | | | | Argetni P & Druckenmiller B, (2004) Reputation |
| different products and services. | | | | and the Corporate Brand, Corporate Reputation |
| Due to advancement in technology and in | | | | Review |
| communication world is becoming a small community. | | | | Balmer J.M.T. & Greyser A.G., (2003), Revealing |
| Consumers are more knowledgeable then ever. | | | | the Corporation, perspectives on identity, image, |
| Globalisation is common between all the big | | | | reputation, corporate branding and corporate-level |
| organisations. Corporate brand is important for the | | | | marketing, Routledge, Cornwall |
| globalise organisations to show that their core value is | | | | Balmer J.M.T Journal of management, Corporate |
| same wherever the product is. | | | | Branding and Connoisseurship Vol 21 no 1 autumn 1995. |
| Corporate branding is also very useful when | | | | Balmer. J (2001) ' The Three Virtues and Seven |
| organisations want to enter into a new market. This | | | | Deadly Sins of Corporate Brand Management' Journal |
| can be seen when Samsung entered into mobile | | | | of General Management, 27, (1), 1-17 |
| communication market, Samsung did not have much | | | | Barich, H and Kotler, P/ (1991), "A framework for |
| experience in mobile market but their recent mobile | | | | marketing image management", Sloan Management |
| model Samsung D500 has outclassed Nokia and | | | | Review, Vol. 32, No. 2 |
| Motorola's models. This is gain mainly through | | | | David A. Aaker, California management review, Brand |
| innovation but brand equity played its part as well. | | | | portfolio strategy vol46 no3 spring 2004. |
| Samsung is brand which consumers can trust and is | | | | Davis S. |