What form of branding is needed now?

To whom do corporations belong?

Corporations, as tools for creating profit for capital investors, have always been required to continually enhance performance and expand, with investor relations departments busily presenting the accounts each quarter. In the recent branding boom, likewise, the focus of discussion has been on how branding can be used as a tool to increase corporate value.
However, we now realise that, along with corporations becoming subjects for buying and selling, loyal and outstanding human resources are being lost to other companies more and more, resulting in the aspirations and spirit which bind these organisations together becoming diluted.
Some corporate managers misunderstand branding, regarding it as some kind of short-lived process of alchemy whereby a virtual image can be created which exceeds the actuality. ‘What is a corporation?’ ‘To whom do corporations belong?’ As we are now in the 21st century, perhaps the time has come to answer these questions afresh. The resulting responses will, we believe, lead us to a new role and mission for branding.

A tool for enriching humans and society

The following is from a famous speech made in 1960 by David Packard to the employees of Hewlett Packard:
‘I want to discuss why a company exists in the first place. In other words, why are we here? I think many people assume, wrongly, that a company exists simply to make money. While this is an important result of a company’s existence, we have to go deeper and find the real reasons for our being. As we investigate this, we inevitably come to the conclusion that a group of people get together and exist as an institution that we call a company so they are able to accomplish something collectively that they could not accomplish separately — they make a contribution to society, a phrase that sounds trite but is fundamental. You can look around and still see people who are interested in money and nothing else, but the underlying drives come largely from a desire to do something else — to make a product — to give a service — generally to do something that is of value.’

Here, people are at the heart of the corporation and there is a common aspiration and desire to enrich humans and society. These words have been handed down to the present in the corporate philosophy known as the HP Way.

In recent years, investors have begun to focus on CSR (Corporate Social Responsibility) activity because of its expected link with long-term business stability. At the same time, it is increasingly the case these days that the corporations judged as likely to enjoy stable growth in the future are precisely those which, like HP, have a clear and appealing philosophy.

Corporations are there for humans and society. How can they bring the maximum happiness, beauty, and enrichment to people and society? How can corporate managements show leadership regarding this objective? These are what would seem to be the new issues for branding.

Branding and identity management

The kind of branding required now can be broadly divided into the following four.
1. The construction of a clear vision (basic philosophy and/or desired future profile) to act as the wellspring of corporate activity; and ‘identity management’ through penetration of this vision as the organisation’s backbone and to encourage all staff to act accordingly.
2. Having a good understanding of the stakeholders who support the corporation. This includes understanding the expected value of specific target groups.
3. The setting of a brand value promise that matches the expected value of target groups.
4. The designing of brand drivers to deliver the value promise to the target groups.

The most important thing in these activities is of course what kind of vision is conceived and what kind of value promise is made to the stakeholders. Furthermore, the links in this value chain must be aligned as a whole in a consistent fashion.
To this end, the corporate organisation must share these values cross-sectionally and must constantly undertake mutual confirmation of their importance.

Branding frame

Seven formulae for new branding

New branding develops depth through the solution of the following seven equations.
In this book, each case is examined from these seven perspectives.

1. Philosophy and identity management:
   Stating clearly the purpose of the corporation’s existence, on which basis it acts in the interest of society as a corporation that is admired and has a sense of duty.
2. Repositioning and superiority through compartmentalisation:
   By effecting a schema change in its core business areas, the corporation moves into new areas and arouses potential customers.
3. Communication and expression to motivate people:
   Working on people’s 'sensus communis’ to convey messages and images.
4. Merchandising of products and services:
   Investing products and services with the ideas of the corporation while regarding them as media for the value promise.
5. Public participation and social marketing:
   Delivering the message of the corporation’s social value to create a new community in which the public participates.
6. Business structure and brand architecture:
   With a complexity of businesses and products, strategically expressing brand architecture by organising the structure.
7. Inner branding and management:
   Ensuring penetration of the philosophy and value promise throughout the organisation and pursuing sustained management.