CORPORATE BRANDING

Venera Turaeva

TABLE OF CONTENTS Corporate Brand vs Product brand

Brand Hierarchy

Holistic approaches to Corporate Branding

Corporate identity and image change- the case of Arçelik

“Turkey’s most admired companies 2009 & 2010”

DEFINITION Corporate Branding- is the practice of using a

company's name as a product brand name. It is an attempt to use corporate brand equity to create product brand recognition.

Ex: Nike

Product Branding- where each product has a unique brand name and the corporate name is not promoted to the consumer.

Ex- Marlboro

PRODUCT BRAND VS CORPORATE BRAND

Source: Hatch M.J. & Schultz M., (2008) Taking A Brand Initiative: How companies can align strategy , culture, and identity through corporate branding

Product brand Corporate brand

Scope and scale One product or service, or a group of closely related products

The entire enterprise, which includes the corporation and all its stakehilders

Origins of brand identity

Advertisers’ imagination informed by market research

The company’s heritage, the values and beliefs that members of the enterprise hold in common

Target audience Customers Multiple stakeholders (includes employees, and managers as well as customers, investors, NGOs, partners, and politicians)

Responsibility Product brand manager and staff, Advertising and Sales departments

CEO or executive team, typically from Marketing, Corporate Communication, Human Resources, Strategy, and sometimes Design or Development departments

Planning horizon Life of product Life of company

11.5

BRAND HIERARCHY LEVELS

Family Brand (Buick)

Corporate Brand (General Motors)

Modifier: Item or Model (Ultra)

Individual Brand (Park Avenue)

CORPORATE OR COMPANY BRAND For legal reasons, company or corporate brand

is almost always present somewhere on the product or package

For some firms like General Electric (GE) and Hewlett-Packard (hp), the corporate brand is virtually the only brand

Some firms combine their corporate name with family brands or individual brands (Siemens- Siemens Transportation Systems)

In some cases, company name is virtually invisible and receives no attention in marketing programs

HOLISTIC APPROACHES TO CORPORATE BRANDING

1. M.J.Hatch and M.Schultz – The VCI (Value- Culture- Image) Model

2. Balmer- The new identity management mix

3. Rode- Holistic approach to corporate branding

HUTCH & SCHULTZ’S APPROACHAccording to the authors a successful

corporate brand is the coherence between:

1-what the company’s top managers want to accomplish in the future (their strategic vision )

2-what has always been known or believed by company employees (lodged in its culture )

3- what its external stakeholders expect or desire from the company (their images of it)

HUTCH & SCHULTZ’S APPROACH

Source: Hatch M.J. & Schultz M., (2008) Taking A Brand Initiative: How companies can align strategy , culture, and identity through corporate branding, San Francisco, Jossey-Bass, page 11

BALMER’S APPROACHAccording to Balmer an objective of a

corporate identity management is the acquisition of corporate brand. Some of these objectives are:

Fostering a sense of individuality Achieving differentiation in a competitive

environment Providing a platform for coherent corporate

communication Nurturing understanding and commitment

among stakeholders Attracting and retaining customers and

employees

BALMER’S APPROACH

Source: Balmer J.M.T., (2001), “Corporate identity, corporate branding and corporate marketing: Seing through the fog”, European Journal of Marketing, Vol .35, № 3/4, page 263

•The objective of acquiring a favorable corporate image has fallen out offavor since the concept of the corporate image is fraught with difficulty

RODE’S APPROACH

Corp.Branding = Corporate Identity + Corporate Image

Internal part of corporate brand:

Sum of…•Corporate culture•Corporate design•Corporate behavior•Cor.Communication

External part of corporate brand:

Exposed to company audience..•Customer•Supplier•Investor•Analyst•Public

RODE’S APPROACH

Source:Rode V. & Vallaster Ch.,(2005), “Corporate Branding for start-ups: The crucial role of entrepreneurs”, Corporate Reputation Review,Vol.8 № 2, pp.122

CORPORATE IDENTITY ELEMENTS Corporate culture- core of the corporate

identity. Its main component- mission statement- includes the core values of the company which provides key guidelines for all managerial activities and decisions.

Corporate design- visual aspects of the corporate brand like name, slogan, jingle and character

Corporate behavior- refers to how human resource processes are managed (recruiting, empowering, supporting employees)

Corporate communication- both external – advertisements (consumers), sponsorships (public) and internal- among its employees, and different management levels

CORPORATE IMAGE Corporate image is built through various

ways of interaction with company’s audience. These include:

External communication- traditional corporate advertisement

Customer relationship programs/direct marketing- sponsorships of sports events, concerts, etc

Social Responsibility programs- programs aimed at increasing welfare of the public, communities

COMPARISON OF DIFF.APPROACHESCorporate Brand

Corporate Image

Corporate Culture

Hatch & Scuhultz

Corporate Identity

Element of Corporate Identity

Element of Corporate Identity

Balmer Corporate Identity

Not considered

Core to Corporate Identity

Rode Corporate Identity + Corporate Image

External part of corporate brand

Core to Corporate Identity

ARÇELİK CORPORATE İDENTİTY AND İMAGE CHANGE

Researches held in 2000 revealed that Arçelik was percieved by customers as “old”, “rooted”, and “not trendy”, whereas its competitors were perceived as modern and eye-catching.

Decided to change its corporate identity through its corporate design- logo, creating a new character

Reason: now consumers, especially ones in group ages of 18-30, who are also potential customers in the long-run, were brand conscious, brand image was their 1st consideration in choosing home appliances

Old logo- emphasize its ability to produce, prioritized producing than customers

New logo- emphasize customer-oriented, innovativeness, technology owning characters of Arçelik

Corporate culture- has the same cultural values with Koç Holding. Wasn’t effected much by the change, just more emphasis on being “customer-oriented”

Corporate behavior- some additions and corrections made like being customer- oriented, and new ways developed in managing it, and improving its points of sale.

Corporate communication- internal- employees were informed about reasons for change and its process through “Aydabir” magazine within the company, external-corporate advertisement

MAJOR CHANGE-CORPORATE DESIGN Visual identity- best reflects the corporate

identity New logo- small letters- closeness to customers,

red slipped square- warmness, technology, smile. Technology ownership, use of tech to ease your life

Çelik robot- is actually Arçelik itself- emphasize how its richness of technology and innovation, always beside the customers, in a warm relationship with them, trying to realize their wishes

RESPONSES TO NEW IDENTITYIt is not an easy task to adapt your

audience to a change in your corporate branding. Though Arçelik’s new corporate identity and image was told to be a successful one, based on researches three types of responses were seen:

1. “Those who really liked the change”2. “Those who said “”why did you do it? Don’t

change your logo”3. “Those who liked logo, but think that there

wasn’t a need for a change and who didn’t appreciate this change”

TURKEY’S MOST ADMIRED COMPANIES This research on “Turkey’s most admired

companies” is being held by Swiss- based Human Resource solutions firm in cooperation with the business magazine Capital

This research includes data related to critical issues such as corporate social responsibility, employee satisfaction, customer satisfaction, reputation of firms in question and how they are percieved by professional managers. According to surveyed managers, those companies who offer high quality products, are innovative, emphasis on employee, invest in employee development, recognize the rights of the corporation are in the forefront.

TURKEY’S MOST ADMIRED COMPANIES

Rank 2009 20101 Turkcell Turkcell2 Arçelik Garanti Bankasi3 Garanti Bankası/Koç Holding Arçelik4 Coca-Cola Company Koç Holding5 Sabancı Holding Eczacıbaşı Topluluğu6 Eczacıbaşı Topluluğu Coca-Cola7 Unilever Unilever8 Ülker Procter&Gamble

9Türkiye İş

Bankası/Procter&Gamble Ülker

10 Doğuş Holdingİş Bankası/Doğuş

Holding11 Türk Telekom Microsoft12 Vestel Sabancı Holding13 Borusan Holding Vodafone14 Microsoft BSH/Efes Pilsen15 Toyota Borusan Holding16 Siemens Sanayi Vestel/Siemens17 BSH THY18 Efes Pilsen Ford19 Akbank Shell/Enka

20 Tüpraş Tüpraş/Anadolu

Grubu

THANK YOU!!!

REFERENCES1. Keller, K.L., (2008), Strategic Brand Management: Building,

managing, and measuring brand equity, 3rd edition, New Jersey, Pearson

2. Hatch M.J. & Schultz M., (2008) “Taking A Brand Initiative: How companies can align strategy, culture, and identity through corporate branding”, San Francisco, Jossey- Bass

3. Balmer J.M.T., (2001), “Corporate identity, corporate branding and corporate marketing: Seeing through the fog”, European Journal of Marketing, Vol.35 № 3/4, pp. 248-291

4. Rode V. & Vallaster Ch.,(2005), “Corporate Branding for start-ups: The crucial role of entrepreneurs”, Corporate Reputation Review,Vol.8 № 2, pp.121-135

5. Ovalıoğlu N., (2007), “Kurumlarda kimlik ve imaj değişimi süreci: Arçelik firması örneği”, Yüksek lisans tezi, Ankara Üniversitesi

6. http://www.hurriyet.com.tr/ekonomi/14295569