Organisations are now dealing with the much bigger challenge in term of branding. It has discovered that corporate brand has complicated and difficult rapidly changing fundamentals. Balmer (2001) states that corporate brands are cultural as they reflect the organisations subcultures. Consider the example of Mercedes its corporate brand stands for high class, luxury and high performance and it can be clearly seen in sub culture of C-class S-class and M-class. |
The key question arises here should organisations adapt the concept branding? Corporate brands have generally longer life cycle then the product brand. There is a bigger drawback attached to corporate branding as if a company gets a bad publicity of its corporate brand it will affect its all the products. Balmer (2003) describes corporate brand as having the role of a driver for many stakeholders, therefore highlighting the increasing importance of corporate branding. Olins suggested that the organizations with no understanding of what are they about tend to fail in long-term.
Corporate branding must be used properly and organisation with strong corporate branding must not take advantage of strong branding and keep the promises and behave in an ethical way. Coca Cola has used the advantage unethically when first introduced its water Dasani in U.K and it was later discovered it was nothing but Tap water from general water supply. It can also be seen in McDonald's case that they portray themselves as an organisation that care about its customers by offering them clean food but there has been occasions when some of McDonald's outlets were forced to close down due to supply of unhealthy food. It is important for the organisations with strong corporate branding such as Coca Cola, and Mercedes to stick with the values they present.
Essay above suggests that the corporate brands are created to obtain the significance awareness in a competitive market. Corporate brand have impact both externally and internally. Corporate brand have many benefits such as gaining the competitive advantages over its competitors and achieving the economies of scale. Organisation must manage their corporate brands effectively and efficiently in order to get the maximum benefit.
It can also conclude from the authors mentioned above that many organisations without a strong corporate brand will face difficulties in coming future. So organisations without a corporate brand such as Proctor and Gamble and Unilever have to work towards achieving one strong corporate brand.
Effective and strategic support of a corporate brand can make it easier for organisations to do business. Corporate branding is stronger then the quality and price of a product but to make it successful right strategies are required.
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