Corporate brands of all sizes are critical to contemporary organizations. The corporate brand has become a valuable asset for the company, which has several times value beyond the book value.
To answer the above questions, it is important to explain what a corporate brand is. It is then also important to look into the matter of how a company’s brand is beneficial to an organization. What financial benefits it can give to an organization and how far it helps the organization to gain a competitive advantage over its competitors.
There are several definitions of corporate brands presented by different authors and scientists. Some insults are as follows:
David A. Aaker defines a corporate brand as “As the brand that defines the organization that delivers and stands behind the bidding, the company is defined primarily by the organization’s association.In particular, the corporate brand has the potential to have rich heritage, assets and capabilities, people, values and priorities, local or global reference frames, and disability records. ”
(Brand portfolio strategy by David A. Aaker, California management review vol46 no3 spring 2004.)
According to Balmer (2003) the corporate brand is seen as the sixth type of identity called the identity of the agreement, which is seen as independent and different. Balmer (2001) developed the mnemonic C2ITE (Cultural, complex, real, refined and committed), reflecting the unique corporate brand attributes and helping to understand the key characteristics of corporate branding.
While Lawer and Knox (2004) argue that corporate brands are a way to understand, manage and communicate the value of a company’s brand to guide managerial decisions, actions and normative corporate behavior. It can then be said that the brand in general is the name of the product or the sign of ownership.
So can express himself real and open and then communicate his message to his customers clearly.
“The corporate branding philosophy, in essence, is an explicit agreement between an organization and a group of key stakeholders, including customers” (Balmer & Greyser, 2003)
Corporate branding can be defined as “Corporate branding refers to the practice of using a company name as a product brand name.This is an attempt to leverage the company’s brand equity to create product brand recognition.”
Guards of organizational appointments may cause the company’s brand equity; This is where consumers hold good, strong, and unique associations of corporate brands in memory (Keller 1993). There are many advantages of corporate branding because the corporate brand represents the class and is known to every body, for example once David Beckham said, “I can not even imagine using anything other than Adidas”. Although he is a contract model for Adidas but at the same time reflects Adidas as a luxury and expensive item as well as status symbol. This makes people sport with money buying that stuff. Rolex watches can also be an example for this, Rolex is known as a watch for upper class people. This keeps people with money buying Rolex watches to show their class. This is the Adidas and Rolex brand equity.
Brand equity can also be transferred to other products. This can be seen in the case of VW buying Skoda. Before VW took over Skoda’s sales declined but in recent years Skoda has increased and sales have increased and VW has successfully transferred its brand equity to Skoda. Motor G.M also buys different corporate brands such as Daewoo and Volvo and has transferred brand equity to their brands.
This does not stop here, there are so many other benefits that an organization has with a corporate brand. Newman (2001) argues that the success rate of new products or services can be increased by twenty percent if it has a corporate brand behind it. Also costs can be reduced when launching a product or service rather than if the company does not have a corporate brand that supports it.