Corporate identity, image and

brands

Btech: Hospitality Hospitality Management 4

Learning outcomes • understand the concepts of corporate identity and corporate

image • recognise the process involved in developing a corporate

identity programme • identify the importance of corporate identity and image for

an organisation’s overall communication plan • understand the concepts of brand and branding

History of Corporate Image Emerged around the middle of 20th

century Originally understood as symbolism

Definition: Corporate Image …what makes a company unique and special.

It’s the company's approach to business, its values and business culture.

This will be reflected in the way the company works, the quality of its products, its communication and marketing strategies, its management and leadership style and its visual appearance.

Definition: Corporate identity

Van Riel (1995: 27) : Corporate identity can be seen as ‘the self-portrayal of an organisation, i.e. the cues or signals it offers via its behaviour, communication and symbolism’.

Corporate identity …can be defined as ”the sum of all

methods an organisation uses, willingly and unwillingly, to identify itself to its public. This is based on an organisation’s philosophy (goals, vision, mission), history, people and its aesthetic expression. “

Corporate culture One of the most important parts of Corporate

Image is corporate culture Corporate culture focuses on the human part of

the organisation, the ‘language, norms, folklore, ceremonies, and other social practices that communicate the key ideologies, values and beliefs guiding action'. (Morgan, 1986: 135)

Identify the following Good Bad Reason

Image

Identity

Culture

Aim of a corporate identity Internal goals: Raising motivation and morale Rationalisation and cost reduction Inspiring confidence among the external target

publics Acknowledging the vital role of the customer Acknowledging the vital role of financial target

groups

The components of Corporate Image strategy

Corporate behaviour Visual identity Corporate communications

Corporate behaviour How an organisations interacts with its employees customers financial stakeholders government and society

Happy??

Think Point (see case study) Do you believe that FNB’s advertising

campaign was a good one?

Corporate behaviour Corporate behaviour follows the

parameters of the lived corporate culture

This requires careful design and implementation of a corporate vision or mission

Vision/mission A vision or mission contributes to the

organisation’s goals in a variety of ways: • It informs stakeholders about the desired values

and norms of the organisation. • It contributes to the development of specific

guidelines for employees and their work

Vision / mission cntd • It supports management in providing appropriate

and systematic leadership for the organisation.

• It can show the individual employee how he or she can contribute through their own behaviour to the achievement of the organisation's goals.

• A vision or mission is also of external value as it defines how an organisation perceives itself.

Example: DUT VISION A preferred university for developing leadership in technology and productive citizenship. MISSION Our mission is to excel through: A teaching and learning environment that values and supports the university community. Promoting excellence in learning and teaching, technology transfer and applied research. External engagement that promotes innovation and entrepreneurship through collaboration and partnership. CORE VALUES Respect, Recognition, Opportunity and Access Loyalty, Dignity and Trust Transparency, Openness, Honesty and Shared Governance Responsibility, Accountability, Collegiality and Professionalism

Visual identity or corporate design It’s the visual representation of an

organisation’s identity

'The visual style of a company influences its place in the market, and how the company's goals are made visible in its design and behaviour.' (Olins, 1989).

Corporate design includes various elements Logo Colours Typefaces for stationary and slogans

Logo Its aim is to 'encapsulate in a simple memorable form

the central attribute or attributes of an organisation [and to] trigger appropriate associations and responses' (Bromley, 1993: 158)

Characteristics of a logo • It attracts attention and works as a

signpost. • It is informative and memorable. • It is of aesthetic value that doesn't date

easily. • It can easily be adapted to a variety of

contexts and frameworks

Colour Another design element that can be used for

quick identification purposes Red colour of Coca-Cola Blue Boots Green: Marks & Spencer Orange - clever example of combining colour &

slogan

Logos, Colours & Typefaces

1880s 2005

Typefaces The use of a particular typeface can also

express identity through the use of conservative typefaces such as Courier or Times or more innovative designs such as Avant Garde.

However, it is crucial to consider the lifecycle of style elements and the costs involved should they date quickly.

The British Airways logo was designed in 1997 by Newell & Sorrell.

The colours are blue (Pantone 281) and red (Pantone 485). The additional colour is grey (Pantone 877).

British Airways uses its proprietary typefaces Mylius Sans and Mylius Serif, both designed by Rodney Mylius at Newell & Sorrell.

The T-Mobile logo was designed in 2001 by Interbrand Zintzmeyer & Lux . The colours are magenta (Pantone Rhodamine Red) and grey (Pantone Cool Gray 7). T-Mobile uses its proprietary typefaces TeleAntiqua and TeleGrotesk, which are based on ITC Century and Neue Helvetica respectively.

Corporate communication …refers to all communication strategies, tactics

and techniques an organisation uses to represent itself, its products and services to the target audiences.

…helps to transmit the corporate identity internally and externally through strategically planned and coordinated efforts.

Design process - ctnd As Bromley points out: 'The design process can

be sophisticated, comprehensive and expensive. Complex organisations need to co-ordinate design proposals with corporate policies and practices. This maximises the benefits of their visual identity because the visual identity has to work effectively across divisions within the company, across products, across communications (stationery and packaging), across cultures and over a considerable period.' (Bromley, 1993: 159)

Corporate image

Corporate identity refers to the self-presentation of an organisation.

The identity is relayed in various ways to the publics who interpret the organisation’s behaviour, directed communication and symbolisms.

The individual members of those publics then form an image of the organisation which is based on their interpretation of the identity.

This might also be influenced by direct experiences they had with the organisation or by accounts of opinion leaders such as family, friends, the media, etc.

The importance of a favourable image “A positive corporate image is a condition

for a continuity and strategic success. It is no longer solely the field of attention of marketing, but a strategic instrument of top management”

CEO Dutch KLM, De Soet

Benefits of a favourable image A sound CI is a incentive for the sales of

products & services It helps the company recruit the right employees It is important to the financial world & investors A sound corporate image creates emotional

added value for a company which ensures that a company is always one step ahead of its competitors.

Benefits of a favourable image Research has shown that 9 out of 10

consumers report that when choosing between products that are similar in quality and price, the reputation of the company determines which product they buy!

Example: Woolworths

SUMMARY: CI & Reputation The concepts of image and reputation are laden with different

meanings.

Perception is important because it effects our behavior Unlike images a reputation is formed over a long time

In considering perceptions held of an organisation consideration

should also be given to the image/reputation of the industry, country of origin, corporate and product brands, as well as those of its subsidiaries.

Brands and branding The particular concern here is with the ways in

which an increasing number or products or services have come to be regarded as brands.

It was not always so, and in many poorer parts

of the world today brands still do not occupy the position they do in the so-called developed countries. Staple foodstuffs, for example, are bought and sold on markets in developing countries without being branded.

History of brands In the 19th century the link between

consumer and producer was broken Intermediaries such as wholesalers and

brokers tried to exert influence on consumers

Manufacturers hit back by branding their products with distinctive name and appropriate marketing communications

History of brands Some of the most familiar brands date

back to 19th century

Heinz - since 1869 However, the pendulum

has recently swung back in favour of retailers, especially supermarkets, which now vigorously brand themselves and their products.

What is the appeal of brands? Two dimensions: 1) Brand appeal for the consumer 2) Brand appeal for the producer

Brand appeal - consumer Authenticity Consistency ‘At its simplest, a brand is a recognisable and

trustworthy badge of origin, and also a promise of performance.’ (Cowley 1996: 21)

E.g.:

Brand appeal - consumer Rational or functional appeal Helps them to make a choice saves time and effort through a reduction

of perceived risk Based on trust

Brand appeal - consumer E.g. many adults continue to use a brand

such as Johnson’s because it evokes childhood memories

Or many Scots reaffirm their cultural identity by drinking Irn-Bru instead of Coca-cola

Even people can be brands E.g. David Beckham Paid himself £19.7

last year out of endorsements according to his company

Named as the biggest “personal” brand ever

Brand appeal - producer The role of of brands today is so big that

brand equity (formerly goodwill) can be a company’s most important asset.

E.g. When Nestle bought Rowntree Or value of dot.com companies

Trends in brands Growth of own label or private brands A decline in brand loyalty due to products

becoming virtually indistinguishable and customers’ price awareness and growth of sales promotions

Brands conclusions As Klein says, brands have come to dominate

the world of commerce and much more besides, to the extent that we now live in a ‘branded world’.

Brands matter to organisations because they are major assets.

They consequently need to be managed carefully, with occasional adjustments being made in response to marketing research, but without compromising core values.

Brands - conclusion cntd. At the end, they matter because they embody

meanings for consumers. It is clear that in the information age this is now truer than ever.

As products and services quickly become essentially indistinguishable from the competition, they rely increasingly on branding to differentiate themselves and their users.