This is why organizational and managerial processes are in focus in corporate
branding: only in that way can the distinctive identity of the corporate brand be
reflected in and nurtured by the way the organization works. Strategy making in
corporate branding should take a multidisciplinary approach because it involves
not only marketing, but multiple functions and departments.
Alignments between the origin and everyday practices of the organization
[organizational culture]; where the organization aspires to go [strategic
vision]; how the organization is perceived by external stakeholders [images];
all nested in perceptions of who the organization is [identity].
(Schultz et al. 2005, p. 24)Corporate branding focuses on developing distinctive features of the organization
through organizational and managerial processes. Breaking down the silos
between marketing (externally focused) and organizational development (inter-
nally focused) and using internal organizational resources to build brand identity,
image, reputation and corporate branding have increasingly become an integral
part of brand management, and practitioners ascribe corporate culture as one of
the most important aspects when conceptualizing the domain of identity. The case
of how Lego has shifted from a focus on product branding to corporate branding is
a good example of how this shift can be done in practice.
The ‘brand–consumer’ exchange
In the identity approach, a reliable image and reputation are assumed to be key
determinants of consumers’ brand choice. In the other six brand approaches, the
52 Seven brand approaches
Box 5.2 From product to corporate branding at Lego
In the mid-1990s Lego – the fourth biggest producer of toys in the world –
was caught in a general decline in the toy market. For most people Lego is
synonymous with the Lego brick, which was also the focus internally. The
product focus was perceived as an impediment to growth. Lego had to
reinvent the company by implementing a shift from product branding to
corporate branding. The identity (internally) and image (externally) of Lego
underwent analysis. It was found that the image of Lego was indeed strong
among many stakeholders as a producer of toys enhancing creativity and
learning. The strategic vision of the company had to be aligned with this
image. Management moved away from defining themselves as producers of
Lego bricks to defining themselves as leaders in the business of creativity
and learning.
Adapted from‘Are the strategic stars aligned for your
corporate brand’ (Hatch and Schultz 2001) and
‘Brand culture’ (Schroeder and Salzer-Mörling 2006)