Large companies from multiple sectors such as Philips, Unilever or Apple understood the importance of the corporate brand a long time ago, paying attention to its definition and its alignment with everything they do and represent. It is already well established that corporate branding is essential to provide direction and purpose to the business. On the other hand, it also helps improve the image of sub-brands and individual products, helps attract and retain talent, and provides protection against reputational damage when problems arise.

Corporate branding is responsible for building the global brand that mints and protects all of a company’s product and service brands. It is part of a planned strategy that culminates in corporate identity, brand identity and brand image, which are distinct concepts that are often interchanged.

It should be clarified that corporate identity identifies all the tangible elements that differentiate one company from another. Brand identity is based on the previous definition and incorporates the intangible elements necessary to construct its own meaning, providing a specific visual and verbal representation. Finally, brand image defines the set of external perceptions that the audience has about the brand. The three are intertwined, but each should be considered separately in the brand-building process.

The development of a strong corporate brand starts from a clear strategic vision that incorporates a compelling purpose, shared with all employees through the corporate culture and, externally, through consistency in everything the brand does and offers.

Related content. You may be interested in:

Corporate culture

BENEFITS OF CORPORATE BRANDING

The benefits of consolidating the corporate brand are many, below I detail the main ones that can be grouped from different perspectives:

  1. People, Talent & Organizational Development

  • Cohesion of behaviours. A clear understanding of who the company is and what it stands for ensures that teams act in alignment with what the brand stands for.
  • Increased talent retention and attraction. Clarity about what it means to be part of the organization increases the satisfaction and interest of professionals.
  • Reduction of the costs derived from the contract, as a result of the previous point.
  • Increased productivity, as a result of engagement.
  1. Business

  • Alignment and understanding throughout the organization of what moves it, why it is important and how this becomes a benefit for all stakeholders, increasing their trust.
  • Optimization of the customer experience, as employees act according to the corporate culture with clarity, conviction and trust.
  • Building corporate reputation, which reduces risks in the face of problems and provides greater opportunities for expansion.
  1. Marketing & Sales

  • It enhances economies of scale by covering the set of possible multiple product/service brands, since all of them are under the umbrella of the corporate brand.
  • Increase in the value of product and service brands as the capital of the corporate brand is consolidated over time and meanings are transferred.
  • Greater effectiveness in the face of new product/service launches, as potential buyers are familiar with the corporate brand and its reputation.
  • Strength in sales negotiations, since a strong corporate brand consolidates a stronger negotiating position and more favorable conditions.
  • Greater recognition and consolidation of more sustainable relationships with customers.

It should also be noted, from an external perspective, that the increase in recognition and greater awareness of the corporate purpose by society, gives it a higher level above competitors in terms of its perception.

Let’s also not forget that, linked to a solid strategy, a strong corporate visual identity adds enormous value to the brand heritage and may, in fact, be its strongest asset. If developed properly, it will create a bond between the company and its customers, helping to set the stage for all future customer interactions.

 

Carlos Puig Falcó

CEO of Branward