Types of corporate branding options

There are many models that can be used to develop a corporate branding strategy, the following is one such model proposed by branding guru Wally Olins. Essentially, there are three basic types of corporate branding options that an organisation can adopt.

a. Monolithic strategy is when a single corporate brand name is being used for all its products and services. In Singapore, NTUC adopts a monolithic strategy with its social enterprises, such as NTUC Fairprice, NTUC Foodfare, NTUC Healthcare, NTUC Income, etc. The advantage of a monolithic strategy is that each brand can ride on the success (and reputation) of its parent and need not spend too much money on developing its brand compared to an entirely new brand. The disadvantage is that a failure in one brand may hurt the rest of the brands. Another disadvantage is that it may be very hard to control so many brands under one parent.

b. Endorsed strategy is when one corporate brand name originally being used in one product category / segment is being used to serve a different category / segment. GM (General Motors) adopts an endorsed strategy with its GM car brands Cadillac, Chevrolet and Buick, which each of them having their own unique brand identity and positioning. The advantage of endorsed strategy is that while it rides on the good name of its parent, it is also free to develop and differentiate itself in a certain market segment. In addition, the problems or crisis from one brand does not affect the other brands. The disadvantage is that it will dilute the parent brand equity.

c. Branded strategy is when a company uses separate brand names for different products, and puts different management teams under each of these brands. Procter & Gamble adopts a branded strategy with the hair-related product brands such as Wella, Rejoice and Pantene, all of which are branded separately and the parent is not visible. The advantage of branded strategy is that the success or failure of one brand does not affect the other brands of the company. However, promotional cost will be higher, and this strategy may create problems for companies wanting to build corporate reputations.

 

Are you still confused by the different corporate branding options? Contact Shaun Lee today for help!