Corporate branding is the practice of promoting the brand name of a corporate entity, as opposed to specific products or services. The corporate brand is the “umbrella” brand that sits over all a company’s product and service brands. The scope of a corporate brand is therefore much broader than a product brand.

The way a company’s corporate brand and its product/service brands sit and interact in relation to each other is known as the brand architecture.

The benefits of a successful corporate brand

Let’s have a look at the benefits that a strong corporate brand offers the different areas and stakeholders of a business.

For human resources / organizational development

• Employee behavior’s are aligned to business goals – a clear understanding of who the business is and what it stands for ensures staff act in a way that aligns to the strategic needs of the business.
• Increased staff retention – clarity around what it means to be part of the organization increases staff satisfaction.
• Ability to attract the best – consistent word of mouth and a clear proposition to the talent market ensures the company will stand out from the myriad of competitors.
• Reduced recruitment costs – as the best talent seeks the business out.
• Increased productivity – as a result of increased satisfaction and understanding of the organization’s purpose.

For the corporate and business functions

• Deep alignment, cohesion, understanding and focus across the entire organization, of who the business is, how it is different and how that difference turns up as a benefit for stakeholders on a daily basis.
• Overall higher levels of innovation through working more constructively and collaboratively.
• Increased trust with key stakeholders – customers, employees, shareholders, distributors, partners, intermediaries etc.
• Improved and aligned customer experience, as employees communicate and deliver against the company’s overarching intent with clarity, conviction and confidence.
• Reduced confusion and ambiguity when important decisions need to be made.
• Improved returns on company programs and initiatives through increased company presence, understanding and leverage.

For marketing

• Economies of scale – one advertising or promotional campaign can serve multiple brands, as they all sit underneath the corporate brand umbrella.
• Stronger brand equity for product brands, as the positive corporate brand equity “rubs off” on the product brands.
• Increased acceptance of new products launched by the company, as potential buyers are already familiar with the corporate brand and its reputation.

For sales

• A stronger negotiating position – a stronger brand brings a stronger negotiating position and more favourable terms.
• Increased customer resonance – customers have a clear understanding of the value of the business, creating more sustainable relationships with existing customers, and providing new customers with a clear reason to choose the business.

For the value of the portfolio

• Increased value of the company’s product and service brands – as the equity in the corporate brand builds over time, there is the opportunity to transfer the benefit that it brings to the company’s portfolio of brands.
• Increased opportunities for expansion – by establishing the reputation and value of the business, we open up opportunities to move into additional markets.

For relationships with Government and media

• Supports Government stakeholders – smooths the way for Government to support our concerns, views and opinions.
• Increased positive sentiment and commentary in the media, ensuring the company’s brands receive the “benefit of the doubt” in times of crisis.
• Protection from possible industrial activity – through positive, accurate understanding of the company and its overall contribution.