Module 2

Corporate Image and Branding - Components and importance of

corporate image, Identification and creation of a desired image,
Types of Brands and brand building, developing brand loyalty and
brand equity.
Corporate image
• A corporate image depicts all what the company stands for and how it
is perceived as in the marketplace
• A firm’s image is dependent on the feelings consumers and businesses
have about the overall organization and its individual brands.
• It is important to know the image as perceived by the consumers
(rather than the image thought to be by the managers)

• Use of various promotional tools do impact the consumer

perceptions.
 A research study done showed
following components:
• Primary component of a
corporate image is customer
perceptions of goods and
services offered by the firms.

• Second - the willingness of a

firm to stand behind its
goods and services when
something goes wrong.
• Third - the way the firm
deals with customers; such
Components of a Corporate as being pleasant, helpful, or
professional

Image
Corporate Tangible Elements
1. Goods and services sold
Intangible Elements
1. Corporate, personal,
Image – 2. Retail Outlets where the and environmental
policies
Tangible & 3.
product is sold
Factories where the
2. Ideals & beliefs of

Intangible product is produced

3.
corporate personnel
Culture of country &
Elements
4. Advertising. Promotions,
& other forms of location of company
communications 4. Media reports
5. Corporate name & logo
6. Packages & labels
7. Employees
 Evaluations of vehicles
The corporate
image of an Is it a foreign or Indian company?
automobile
Customer views about the
company like company’s advertisements
Maruti Suzuki
Reactions to the local
Limited will dealership
be based on: Assessments of
employees/mechanics of the
company
The role of EXTENSION OF
POSITIVE CONSUMER
FEELINGS TO NEW
ABILITY TO
CHARGE
CONSUMER
LOYALTY THAT MAY
ENCOURAGE
corporate PRODUCTS PREMIUM
PRICES REPEAT
PURCHASES

image –
company
perspective
POSITIVE WORD- ABILITY TO FAVORABLE
OF-MOUTH ATTRACT QUALITY RATINGS FROM
ENDORSEMENTS EMPLOYEES FINANCIAL
OBSERVERS AND
ANALYSTS
Extension of positive feelings to new
products
The role of a Corporate Image-Consumer Perspective

• Assurance regarding purchase decisions of familiar products

in unfamiliar settings
• Assurance about the purchase when the buyer has little or
no previous experience with the product
• Reducing search time in purchase decisions
• Providing psychological reinforcement and social acceptance
of purchases
How to promote the desired image?
• The image being promoted must accurately portray
the firm and should be consistent with the quality of
the products and services
• Reinforce/rejuvenate the current image – it will be
easier to do so than trying to change a well-
established image
• Trying to change the images people hold about a firm
is rather difficult – in some cases it may not be even
possible to modify or create an entirely new image
(New Coke 1985)
• Negative or bad press can quickly destroy an image
that took years to build – once it is damaged it may
require a great deal of time to recover the lost
reputation
Rejuvenating an image

REJUVENATING AN IMAGE HELPS THE KEY TO SUCCESSFUL IMAGE REENGINEERING IS TO BE

A FIRM TO SELL NEW PRODUCTS CONSISTENT WITH A PREVIOUS IMAGE WHILE AT THE SAME
AND ATTRACT NEW CUSTOMERS. TIME INCORPORATE NEW ELEMENTS TO EXPAND THE TARGET
SEGMENT
 Procter and Gamble
From Soap opera to content advertising

• The consumer goods company, whose products include Pantene

shampoo and Tide, is one of the world’s largest advertisers,
spending $6.75 billion on advertising in its 2019 financial year.
• Moving away from “annoying” ads and toward funding shows
and other types of content that are “creative” rather than
cluttering.
• It’s funding a new show on National Geographic called “Activate,”
a six-part season focusing on extreme poverty, inequality and
sustainability, produced with not-for-profit Global Citizen and
production company Radical Media.
• Donations of Always sanitary towels to schools in African
countries, or its Tide “Loads of Hope” initiative, where it launders
clothes free of charge for those affected by extreme weather,
such as the Ohio tornadoes in May.
• Move toward “creative partnerships,” where the company aims
to have an editorial rather than a purely promotional tone in its
marketing.
2013 2017 2019
Touching Lives, Improving lives
Rebranding

The pizza word

was removed
so that
Dominos had
the flexibility to
add new
product items
Changing an image – when customer
survey indicates that they are not happy

• It is difficult to change the image

people have about a company
• It becomes necessary when
target market shrinks or
disappears, or its image does not
match the industry trends or the
consumer expectations
• Changing a name or image of a
brand would require more than
one well-made ad. or press
release. It may begin with
internal company employees
and products and then move
outward to suppliers, other
businesses, and certainly
customers
Changing an image

When honey brands

including Dabur was
accused of adulteration,
Dabur invested in a series
of advertisement to
change its brand image
Corporate Names, Logos
• Corporate name is the banner under which all operations occur.
• It is the cornerstone of a company’s relationship with its customers
and sets an attitude and tone and is the first step toward a
personality.
• Corporate names can be classified into four categories.
Corporate Names
• Overt names – reveal what business the company is in: Jet Airways
• Implied names – imply what the company is about: IBM (International
Business Machines)
• Conceptual names- Google portraying the idea of place where you can
find a lot of things, Krispy Kreme suggesting confectionaries with tasty
crème
• Iconoclastic names – which does not reflect the company’s products
but instead something that is unique, different, and easily memorable:
Apple Computers, Monstor.com, Idea and Gucci
First 2 categories are easier to market because they will be recalled by
the customers. The other 2 categories require greater marketing effort.
Corporate Logos
A corporate logo is symbol used to identify a company and its brand
and helps to convey the overall corporate image. It should be
compatible with the corporate name.
1. Logos should be easily recognizable
2. Elicit a consensual meaning among those in the firms target market
(Successful logos elicit shared meanings across the consumers, a
process known as stimulus codability. Logos with high degree of
codability are readily recognized)
3. Evoke positive feelings
Branding
• Brands are names assigned to individual goods or services or to a
group of complementary products.
• An effective brand name allows the company to charge more for their
products. Strong brand names provides customers with assurances of
quality and reduce search time.
• Company name as brand name – Tata – salt to trucks, Godrej – Steel
cupboards to hair dyes, Videocon – All electronic appliances. Other
companies are - LG, Virgin, Philips, Samsung etc
Types of Brands
1. Family brands – A group of related products sold under one name
• HUL has gone for family brand names in case of Cosmetics – Lakme and
Loreal – Kissan for processed food like squashes, jams, sauces etc.
• Nestle’s Maggi for soups, sauces, ketchups, in addition to noodles.
• Individual brand names – HUL, in its soaps division goes for individual names
for each product like Dove, Lux, Pears, Lifebuoy, Liril and Hamam
• Umbrella brands – Term used to indicate family brand or company name.
example – Johnson and Johnson
2. Brand extension – The use of an established brand name on products or
services not related to the core brand.
Dettol – Antiseptic liquid to Soaps, sanitizer even Kitchen dish cleaner
Brand Names
3. Flanker brands – The development of new brand sold in the same category as another product. Example HUL having surf, wheel and Rin in washing powder
category.
A flanker brand is a new brand introduced into the market by a company that already has an established brand in the same product category.
The new brand is designed to compete in the category without damaging the existing item's market share by targeting a different group of
consumers.
Titan introduced its first watches in the medium-priced, medium quality segment of the market. Then added premium brands like Titan Edge, Nebula, and
Xylus.
4. Co-branding – Offering 2 or more brands in a single marketing offer.
Eureka Forbes jointly promoting water purifier, Aquaguard and Euroclean, vacuum cleaner

• For co-branding to succeed, the two brands must separately have brand equity – adequate brand awareness and sufficiently positive brand image. The
most important requirement would be that there should be a logical fit between the brands.

• Ingredient Branding – promoting the ingredient brand example intel processor, Teflon coating etc.
• Carl Zeiss camera lenses in Sony digital cameras, Intel Inside, Taco Bell tacos and Lay potato chips made with KC Masterpiece barbecue sauce
• Cooperative branding – The joint venture of 2 or more brands into a new product or service.
Citibank + jet airways = credit card
• Complementary branding – The marketing of 2 brands together for co-consumption.
5. Private branding – proprietary brand marketed by an organization and sold within the organization's outlets.
Example big bazaar marketing its own brand ‘tasty treat’.
A private brand is a good that is manufactured for and sold under the name of a specific retailer, competing with brand-name products. 
Building powerful brands
• Powerful brands result from careful planning, substantial investment.
1. Creating awareness
2. Creating unique proposition, authenticity
3. Build trust
4. Offer value, act responsibly
5. Should be associated with one prominent characteristic

Business and retail customers trust powerful brands.

Brand Loyalty
• It is the ultimate objective of brand building.
• Brand loyalty means customers purchase only one brand
• The Brand Keys customer loyalty engagement index suggests that
emotion and value are the core drivers of brand loyalty rather than
rational thought.
• Loyalty results from the consumer’s experience with the brand and
emotional connection he has with it.
Brand Equity
• Brand equity represents the set of characteristic that are unique to a brand
• Brand equity helps to fight the brand parity issues
Advantages of brand equity:
1. Allows manufacturers to charge more
2. Creates higher gross margins
3. Provides power with retailers and wholesalers
4. Captures additional retail shelf space
5. Serves as a weapon against consumers switching due to sales promotion
6. Prevents erosion of market share