Why Corporate Brand Building Makes Sense

It has become very difficult for the companies to solely rely on product/service differentiation strategy for achieving sustainable competitive advantage. This is because today's consumers make their decision only after taking social, ethical, and environmental aspect of the product/service into consideration. This has necessitated a increased emphasis on corporate brand building to gain competitive advantage.

The exercise of brand-building is not simply directed towards consumers but also towards different audiences, such as, employees, investors, government and non-government organizations, and so on.

Brand Enhances product value:

If communication and re-positioning of your product has been done correctly then corporate brand-building can surely enhance the value of products. This point is quite evident in the case of Horlicks, who with the assistance of a corporate branding agency, completely changed the positioning of their product from a simple malted-milk drink to the one with great health benefits. This strategy allowed Horlicks to keep their prices well above their consumers.

Even if you're unable such direct benefit, corporate branding would certainly help your brand in building a different persona, which will lead to attraction and loyalty of consumers and other partners.

Eases the process of new product introduction:

A well-established brand is good for the overall health of the corporation. If a corporate brand endorses some new product, then by the simple law of association alll the consumer loyalty and trust is also applied to the endorsed product. Thus, company with a good brand can introduce new products in the market with much ease.

Create a sense of unitariness:

With good corporate brand, the organization can easily engage in brand stretching and brand extension. That is to say, the organization can introduce products of unrelated areas without risking any sense of cognitive dissonance in consumers. This immunity is provided by well-corporate brand, as it provides a sense of unitariness.

Internal Brand Building:

As mentioned, corporate branding is highly useful for engaging with external audiences. This benefit is not just limited to that and can be extended to internal environment too. A good corporate brand helps in enhancing employees' performance, loyalty, and morale. This can be achieved by making the employees understand the the purpose and value of the company's brand and by encouraging them to support the brand.

Initiating your own brand-building:

The most fundamental step would be to clarify and update the corporate vision, mission, and strategy. Following this you can modify the persona, promise, tagline, positioning, and description of your brand. For a comprehensive strategy, a corporate branding agency can also be contacted. Regardless of the path you select, you must initiate your corporate branding strategy immediately.