Corporate branding involves a company applying its name to a product, building brand loyalty and increasing sales. It should be easy to recognize, legally protected and suggest the image of the company or product. There are also extensions to corporate branding, such as store branding and co-branding. However, one poor branded product can cause negative word of mouth and damage the company’s reputation.
Corporate branding refers to a company applying its name to a product. The product and company name become the trade name. The company may advertise many of its products under one brand name in a practice called household branding or umbrella branding.
By using corporate branding with a successfully marketed product, a company can familiarize consumers with its products and build brand loyalty. If the public likes a product from this company, they may look for the brand name when purchasing other products. Corporate branding is usually only successful if the company is well known and sells reliable products with a positive image. One of the disadvantages of corporate branding is that the company can only be identified with one type of product.
To consumers, corporate branding represents a level of quality they expect from the company. They will expect every product under the same brand to have the same level of quality that they are familiar with. The company can increase sales by comparing one of their most popular products to another company’s similar product, showcasing sales data to back up their promise. Brand value is determined by the profits made from the products. If profits are high, the manufacturer is able to charge more for their product.
When applying corporate branding to one or more products, companies need to follow a few guidelines. A corporate brand should be easy to recognize and attract attention. It should also be legally protected and suggest the image of the company or product.
Ideally, the brand should be easy to pronounce and easy to remember. A major brand product typically costs more to purchase than a budget brand. Consumers pay for the name and the quality of the product that the name guarantees.
There are some extensions to corporate branding. A trademark can be used for a number of products in the family brand, or all products can be given different brand names in a practice called individual branding. When large retailers buy goods in bulk and then put their own branding on them, this is called store branding, label branding, or private label. Co-branding is when two or more manufacturers come together to sell their products. When a company sells the right to use its trademark to another company for use in another location or for non-competitive purposes, this is called a trademark license.
Corporate branding has the ability to make a product very successful. If the brand has a track record of a quality guarantee, then there are huge amounts of money to be made using the name. However, just one poor branded product can cause negative word of mouth, affecting the sales of all other products with the same name and causing irreversible damage to the company.
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