According to Aaker (2004, p. p. 7):
As the brand that defines the organization that will deliver and stand behind the offering, the corporate brand is defined mostly by organizational associations. Organizational associations may be relevant to product brands, but the number, power, and credibility of organizational associations will be greater for a brand that visibly represents an organization. In particular, a corporate brand will potentially have a heritage, assets and capabilities, people, values and priorities, a local or global frame of reference, citizenship programs, and a performance record.
Here are examples that highlight the importance of corporate branding:
- A firm’s perceived quality “is a critical asset contributing to its brand equity. In the U.S. vehicle market, we have seen Japanese and European vehicles have a higher resale value than similar U.S. cars. This is consistent with the strength of Japanese firms’ [corporate] brand equity, despite the closing of the reliability gap.” (Cole and Flynn, 2009, p. 89)
- As the world’s leading fast-food chain, McDonald’s has been criticized in traditional and new media for “unhealthy” food offerings. As the leader, McDonald’s has become a flashpoint for protests, despite its addition of numerous healthy items. The corporate brand rubs off on all the items that the company markets. One academic article asked: “Can McDonald’s Food Ever Be Considered Healthful?” (Lee and Savitt, 2009).
- In the telecom service industry, there are many corporate branding challenges. According to Dubey and George (2012, p. 65): “Airtel, India’s leading telecom, has undergone massive rebranding to create a uniform global identity. The competitive challenges exacerbated the need for Airtel to fundamentally rethink its brand position. However, the immediate motivation for Airtel to rebrand itself was to reposition itself as a global telecom player after acquiring a number of overseas telecom companies.”
- Starbucks has been a worldwide success able to charge premium prices for coffee and other food items. The firm has created a distinctive corporate brand that sets an umbrella image for the entire Starbucks’ experience. As Seaford, Culp, and Brooks (2012, p. 43) report: “The goal was to target young and middle-aged professionals, particularly middle to high social classes. It created a clearly differentiated brand image that fostered a personal connection between customers and Starbucks. In so doing, Starbucks provided an inviting and refined place for these people to relax despite demanding schedules.”
- Fast Retailing (FR) includes the UNIQLO, GU, and Theory retail chains. FR’s corporate reputation is clear and has evolved: “In 1984, the [CEO] named the first store Unique Clothing Warehouse (later, UNIQLO) to clarify the store concept. In 1991, the name was changed to Fast Retailing because of a desire to act quicker. When FR went public, it set down 23 management principles, and emphasized customer orientation, flexibility, speed, a merit system, and corporate identity. In 2004, FR totally redefined its identity ‘to create truly great clothing with new and unique value.’” (Huang, Kobayashi, and Isomura (2014).
Self-Branding
Each topic discussed thus far–evolution of branding concepts; brand positioning; generating brand equity/strength; role of communications, including new media; and corporate branding–has a significant effect on self-branding. Those concepts put self-branding in context.
