Branding & Design
Session 1: What is corporate branding?
Covering the basis of branding, and going through the fundamental definitions of what a brand is
Introducing the course structure, flipped sessions and what is expected from you (and me)
You have a chance to get in touch with potential teammates and form groups
What is a brand?
A brand is a name, term, symbol or design, or combination of these, which is intended to identify
goods or services of one seller, or group of sellers and to differentiate them from those of
competitors.
A symbol is any object, word or action that stands for something else. There is a physical way in
which brands are symbols: the logos, names, and even color choices of a brand make it recognizable
and distinctive. But there is more: brands engage in many symbols at the same time, which are
interpreted by consumers and which, ultimately, convey meaning.
o Consumers who see the HEMA logo and immediately think of sausages / comfort / cosiness
Meaning: when a brand works, each of its elements (name, logo, even music associated with it) does
not only remind us of an organization, but also:
Imagine a consumer buying a t-shirt from the following
brands. Do you visualize the same person?
o Representative. Connection between brand and
consumer. Gives them an identity. Communicate
something about who you are.
Brands & identity
Stakeholders (everyone affected by activities of an organization or who affects the activities of an
organization) include corporate brands within their identities. This can mean, for example:
Driving an expensive car to (subconsciously?) communicate status
Looking for a part time job at Marqt rather than AH because more sustainable
Or... trying to engage with brands as little as possible (is still an attribution of meaning, and a
rejection of whatever that meaning stands for). If you don’t care / don’t engage it is still a
meaning – I don’t want to be that.
Product vs. corporate brand
Products and corporate brands can both convey emotions, ideas and memories
and can be associated with substantial value. They are, however, very different.
Product brand: can have a completely different identity than the organization
behind it (Pringles was owned by Procter & Gamble until they sold Kellogg’s in
2012). It only really concerns one product, or a small group of products. It targets consumers only
(just about selling as many as possible). It’s only meant to survive as long as the product survives.
, Corporate brand: if endorsed (HEMA) it adds to all the products of an organization, no matter
what kind. It originates form the company’s heritage, its vales and beliefs, and what members of
the organization have in common. It targets all stakeholders, including employees, managers,
suppliers and even politicians. It’s meant to be long lasting.
o Kellogg’s foundational branding in USA: history and books written about the family. Keeps
everybody connected to an organization. It creates a history with the consumers, and everybody
involved. Create meaning.
Corporate branding is hard to change (successfully):
A tale of two airlines. British Airways wanted to rebrand. Really difficult. When you called British
airways, you have built a national identity. Changing something might be challenging. You are going
to disappoint people, because it seems that you don’t care about the national identity anymore.
What British Airways did wrong:
Culture/vision gap: management Did not involve employees in the decision making behind the
airplane redesign. Planned an expensive airplane re-design as well as a plan to cut costs (likely,
resizing, personnel)
Vision/image gap: management Ignored how UK consumers would react to the airplane
redesign. Discounted the appreciation consumers from the rest of the world had about the
Britishness of BA before.
VCI alignment model
Branding also follows a sort of a vision of the organization as a complex entity that includes different
types of individuals and expectations. When something goes wrong is because there is a gap
between different categories of people that are involved in an organization.
Vision – Image gap not considering who your stakeholders are / not understanding what
consumers want / what the stakeholders want
Vision – Culture gap e.g., a conflict between the values of the organization and what is
actually carried on
Image – Culture gap issues of understanding exactly what is involved / meaning related to the
branding that you are sending to your consumers does not really match the image that they
want.
, Measuring the value of brands
Intangible assets
Economists measure the value of organization based on their assets (NL: activa), that is, the capital
that they have generated. Assets typically divide themselves in two categories:
Tangible assets: buildings, cash, investments, equipment etc.
Intangible assets: elements of value that do not exist physically, such as patents and indeed
brand equity
Brand equity represents the value of a brand in the marketplace. It is defined by 5 elements:
You cannot touch it or give it a monetary value. Very difficult to measure – e.g., extremely subjective.
Symbolic value
Consumers (but more broadly stakeholders) of certain organization attribute a value to
its brand because it defines a degree of belonging based on the creation of a common
ground of understanding. Based on the values conveyed by the brand, stakeholders:
Buy branded products, invest in the company stock, work for the company behind
the brand, promote the brand as consumers, invest trust in the brand
This symbolic value of a brand translates into financial value
It is saying something to the recognizability / meaning that is associated with your brand. Reminding
people of a certain type of relationship that is involved.
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