CORPORATE BRANDING FOR SERVICES MARKETING COMPANY

Still with Dr. Ned Roberto and Ardy Roberto, according to them, Corporate branding current best practice is a 2-tier branding strategy, not a 3-tier. It is corporate branding on its own and not in relation at all to product branding.


Illustrating with their examples, as to discuss the corporate branding of service marketing company, are the existing companies corporate branding:

HSBC: The World’s Local Bank

Corporate Core Brand: HSBC
Corporate Sub-Brand: The World’s Local Bank

Microsoft: Your Potentials, Our Passion

Corporate Core Brand: Microsoft
Corporate Sub-Brand: Your potentials, Our passion

Bank of Philippine Island (BPI): A Tradition of Leadership

Corporate Core Brand: BPI
Corporate Sub-Brand: A Tradition of Leadership

Metro Bank: You’re in Good Hands

Corporate Core Brand: Metro Bank
Corporate Sub-Brand: You’re in Good Hands

Fedex: We live to deliver

Corporate Core Brand: Fedex
Corporate Sub-Brand: We Live, To Deliver

The First tier is of course the corporate CORE BRANDING, which function mainly is to differentiate one company from the other. From the above you know their corporate core branding.

The Second tier is the SUB-BRANDING, which shows the company’s position or its abilities with regards to their service.




Corporate sub-branding is different from product product sub-branding. To clarify, there are two things to be noted. The first is the way the corporate sub-branding is executed. That is a question of the framing or wording of the corporate sub-brand as a corporate positioning. As from the example above, lest ask, who is talking or saying each of those corporate positioning promises or claims. From the above example, “the Worlds Local Bank” of HSBC’s corporate sub-branding, it is the company who is saying it. With, “Your Potentials, Our Passion” , still the company (Microsoft) who is talking. As also from the above example’s corporate sub-branding it is the company who are talking.


Now, the question is, Is this a wrong way of doing corporate sub-branding? Not an issue. It is a question of what is better.

What is better than the alternative of framing the sub-branding claim where it is the consumers who are talking rather than the company?

As a good example, lets take with McDonald.

Corporate Core Brand: McDonald’s
Corporate Sub-Brand; “ Love ko to”, or “I Love This” in English.

What is the relevance of doing corporate sub-branding where the consumers is talking the company’s position or claims?

When the source of the corporate sub-branding is the consumers, the message acquires a high identification value to the target consumers. It is because they like hearing what they themselves said. The message takes on the character of testimonial. As such being in testimonials character, it is 10 times more persuasive than a laboratory supported claim.



Now, how about corporate sub-branding for a new services company?


Aside from communicating the corporate positioning, can corporate branding second tier serve another marketing function? Yes, it can under another set of marketing circumstances. Again, from the example given by Dr. Ned Roberto and Ardy Roberto, with the “Isla Lipana and Company” It is actually the second largest auditing company in the Philippines. But it is a relatively unknown corporate brand to the general public. Even in the business community, its corporate core brand has low total unaided awareness ratio and even lower top of mind awareness.






What second tier branding strategy is appropriate to effectively address this problem? To overcome an awareness hurdle, its second-tier branding need is a legitimator. That is a maker, who’s known to the general public. And so Isla Lipana and Company did not resort to a corporate sub-branding to communicate its corporate positioning. Instead, it chose mark branding for its second-tier. Its 2nd-tier reads as,

Corporate Core Brand: Isla Lipana and Co.

Corporate Mark Branding: “A Member Firm of PricewaterhouseCoopers”


As the global leader in auditing services, PricewaterhouseCoopers is lending, in this case, its reputable name to overcome the general public skepticism over Isla Lipana corporate brand arising out of low awareness and market ignorance.

And So, in the 2-tier corporate branding strategy, the second tier is a matter of the corporate need and problem. If the need is to position the company, the second tier must serve this purpose via sub-branding move. This was true from the five examples. However, if the company’s branding problem is to overcome low corporate brand awareness, then the second tier must address that problem via the mark branding options as in the case of Isla Lipana and Co.


Back to CORPORATE BRANDING with regards to Pro…

ROLES OF CORPORATE BRANDING WITH REGARDS TO GOODS OR PRODUCTS MARKETING

While reading news paper, on Friday, January 11, 2008, of Philippine Daily Inquirer, the leading and of general circulation news paper in the country, I spotted Dr. Ned Roberto and Ardy Roberto’s column entitled “ How important is corporate branding in consumer goods marketing and in services marketing ”, and I realized that the topic is so interesting to the corporate world, to entrepreneurs, and as well as to those who are planning to establish their own company, so I decided to write something about it. My write up deals more of my analysis or based on my perspectives from the writers perspectives, as I deal with the important points from their column, so as to avoid copying their ideas, as well as to any legal consequences that I might be bound. Noticing that the tittle of my topic is different from the above mentioned respectable marketing guru’s, as to have distinction(s).

To begin with, let me first define branding. Branding is the act of naming or marking, as to have identification and/or distinctions from the rest. Corporate Branding is basically with the concept on branding as I have defined, to identify it or to differentiate it from existing or competing corporate or business entities. Aside from the fact that the legal statutes and government regulations requires the branding to be unique and distinct for the purpose mainly of differentiation, such requirements plays an important role for the company itself as the company builds its identity and gains its reputation and good will with its market, as well as for its products or services marketing, expansions and credit. Although the company’s growth lies more with its marketing strategies and or products or services they are selling, that’s where corporate branding comes in with regards to goods and services marketing. How you brand the company or your company is related with the types of goods, services or industry the company is dealing with, although it is more of board directors or management decision. Corporate branding with product branding itself, the former has role(s) too with the latter or vice versa, differentiating it with branding (your) company who offers services. Corporate sub-branding plays an important role(s) too.

I made my analysis with NOKIA (one of the leading mobile phones manufacturers) with their corporate branding and their corporate sub-branding in relation to the products they are dealing with (mobile phones).


As you can see with NOKIA any advertisements, prints or video ads, you notice that there always a word “NOKIA”, captioned and boldly written and below it are the words “CONECTING PEOPLE”

Now, although I don’t know the history of how the company named themselves as NOKIA, as I have previously mentioned above, it is more of board of directors or management decision or perhaps it is derived from the geographical location of the company or the value of the word in its location. From the foregoing, you will see that the company knows the value of corporate sub-branding with their corporate branding in its totality with the products they are dealing with.

Lets Identify its corporate and sub-corporate branding or name The corporate identification is NOKIA Connecting People.

Its CORPORATE BRAND: NOKIA
Its CORPORATE SUB-BRAND: Connecting People

Now, as you already know that NOKIA is into mobile phone manufacturing industry. Given the fact that people needs to communicate every minute, around the world. Nokia makes mobile phones. What does mobile phones do? Of course, for communications. When we communicate with each other, we are connected. Since Nokia manufactures mobile phones for communications, it establishes connections. Using the words “Connecting People” as their corporate sub-branding, implies that their company and their products are into communications, with the goal of connecting people. Now, the question is how you connect people? NOKIA answers that, simply by NOKIA mobile phones.


Lets go to the Roles of Corporate Branding in terms of Product or Goods Marketing.

According to Dr. Ned Roberto and Ardy Roberto, (calling them Roberto’s for brevity), they are suggesting that the appropriate strategy in product branding is a “3-tier branding strategy”. Form the foregoing, I am borrowing the 3 strategies from Dr. Ned Roberto and Ardy Roberto, as to make my own analysis with my own examples or illustrations.


The First tier is “CORE BRANDING”. The marketing function of this tier is basically to differentiate the brand from all others in the product category to where it belongs. As this purpose, also happens to be a requirement in registering with the government for appropriate legal protections.

Example: Nokia 6110 – the phone is distinct with rest of the phones manufactured by the company (NOKIA) itself, as it is also distinct from the phones made by SAMSUNG, ALCATEL, MOTORALA, and SONY ERICSSON. Not to mention physical attributes of the phone itselt.



The Second tier is “SUB-BRANDING” The marketing purpose of this strategy is to communicate the brand’s positioning, that is its promise of satisfying its target market priority values better that competing products.

Example, lets take a look, on how it goes, with the Nokia 6110 – Navigator, the mobile phone manufactured by NOKIA.

CORE BRAND: “Nokia 6110”
SUB-BRAND: “The navigator or simply navigator”.


As you can see, NOKIA company’s positions, with their product particularly with Nokia 6110, sub-branding it, as navigator, promises to their markets that the phone is capable of navigation. Where as the outstanding feature of the Nokia 6110 is fully integrated with GPS Navigation Solution with Nokia Navigator application and navigable map for turn-by-turn voice-guided navigation. With such sub-brand the company ( NOKIA) smoothly conveys to its markets its latest phone with outstanding features. Also in the same way prospective buyers could easily grasp what the Nokia 6110 has.

Another example, is the GATORADE energy drink, the official NBA sport drink, as a THIRST QUENCHER. As you can see in its label of the GATORADE bottle, its Core Brand is the word “Gatorade” itself, boldly written, with the words “thirst quencher” captioned below it, as its sub-brand. Now what does Gatorade do? It’s simple as an energy drink. And what does energy drink do? Also simply revitalizes and energizes you. So when you are thirsty, you need water to revitalize and energize you. As a thirst quencher, Gatorade simply does it for you. And that is the company’s position with their product “Gatorade, thirst quencher”.



Finally, the Third tier is “MARK BRANDING” Its marketing function is to legitimate the brand in terms of its maker’s reputation. From the above example, in the case of Nokia 6110, although you won’t see within the phone any mark as to show who manufactured the phone, but the CORE BRAND (Nokia 6110) or the product itself, speaks of who manufactured the phone. As in the case of Gatorade, where the products are sold around the world just like in the Philippines, its mark branding says: “Produced and manufactured in the Philippines, Under license from Stokely-Van Camp Inc., By Pepsi Cola Products Philippines Inc.”


It is clearly, in the third tier, that the role of corporate branding in product branding is the latter’s legitimator. In such way, it implies that the product is made by any other than this reputable, respectable and world recognized manufacturer, as it also functions to eliminate doubt form the consumers to the product itself with regards to its quality and nutritional values, as well as it increases the company’s credit capabilities, as in the case of Gatorade from my example where investors, would easily seen that the local manufacturer is backed up by an international company or is trustworthy company having obtained a license from the international company . According to the Roberto’s, Mark Branding is just another term for Corporate Branding, which I agree.


As you notice in the case of NOKIA in my example, its corporate branding is part of its core brand of their products. As you also notice that this techniques puts the company and products in advantage position, as it shows the company and the products (mobile phones) are one or wholistic. It’s actually the corporate brand and the core brand speaks for them. Its just like NOKIATM says “I am a reputable, respectable and world wide recognized phone manufacturer and I make Nokia Phone”, and the Nokia 6110 says “I am a Nokia phone, manufactured by NOKIATM, a reputable, respectable and world wide recognized phone manufacturer.

Dr. Ned Roberto and Ardy Roberto, recommends that in terms of product branding you have to incorporate or integrate corporate branding with your product branding.


In such way, your company and your products are one. It eliminates doubt to your products. It boast company’s visibility. Products good will, is company’s good will and vice versa (in holistic approach). You save money in terms of advertising, where when you advertise your product you advertise your company, and when you advertise the company it is as if you advertise your product more effectively( in terms of, as example, when the product is already out in the market). Incorporating company’s branding with product branding is also a best strategy for, I believe, when you are new to the market.

Now, how about Corporate branding with regards to services marketing? Particularly for a new services company.