How can a company increase its value and become a preferred choice in a highly competitive market? This is a management issue faced by many companies. “Corporate branding” is gaining attention as a solution. However, many people may know the term but are unsure of “where to start specifically” or “what kind of effects it has,” preventing them from taking the first step.

This article provides an easy-to-understand explanation of corporate branding, from basic knowledge to practical implementation and success stories. It is designed to help those in charge of improving their company’s brand value to develop a concrete action plan.

What is Corporate Branding? A Management Strategy to Enhance Corporate Value

Corporate branding refers to the overall strategic activities aimed at enhancing the value of a company by viewing the company itself as a brand. It involves clarifying not only visual elements such as logos and slogans, but also the company’s philosophy, vision, culture, and attitude toward society, and communicating these to both internal and external stakeholders (customers, employees, shareholders, business partners, etc.) to foster empathy and trust.

Differences from Product Branding

Corporate branding is often compared to “product branding.” The difference lies in the scope of the target.

While product branding aims to convey the appeal of individual products and services and promote sales, corporate branding aims to enhance the overall credibility and appeal of the company, thereby positively impacting all business activities. An excellent corporate brand serves as a solid foundation supporting individual product branding efforts.

Why is Corporate Branding Important Now?

In modern times, the importance of corporate branding is increasing. This is due to market maturation and the diversification of values. First, it is becoming difficult to differentiate solely based on the function and quality of products. In many markets, technology has become commoditized (generalized), and consumers now place importance not only on “what” they buy but also on “from whom” they buy.

Whether or not they can empathize with a company’s philosophy and attitude toward social contribution is becoming a factor in purchasing decisions. Second, the competition for talent is intensifying. Younger generations, in particular, have begun to place importance not only on salary and benefits but also on the significance of working for that company and its contribution to society. Clearly articulating a company’s vision and values is essential for attracting talented individuals who match the company and preventing mismatches after hiring.

Four Benefits of Corporate Branding

By strategically engaging in corporate branding, companies can gain various benefits. Here, we will explain four representative benefits.

Benefit 1: Strengthen Competitiveness and Differentiate in the Market

By clarifying the company’s stance and values, customers will choose products and services not only based on price and function but also for reasons such as “because I can trust this company.” This allows companies to break away from price competition and build a stable revenue base. In addition, when developing new businesses, the trust of an established corporate brand can provide a boost and facilitate smooth market entry.

Benefit 2: Secure Excellent Human Resources and Improve Employee Retention Rate

The number of applicants who empathize with the company’s philosophy and vision increases, reducing hiring mismatches. Because they join the company with an understanding of its values, they are more engaged and more likely to be active in the long term. This is also called “employer branding” and is an important aspect of corporate branding.

Benefit 3: Acquire Social Credibility and Enable Favorable Fundraising

Consistent messaging and sincere corporate activities lead to trust not only from customers and business partners but also from financial institutions and investors. By increasing the evaluation of the company’s future prospects and stability, fundraising such as loans and investments can be facilitated.

Benefit 4: Improve Employee Engagement

Each employee understands and takes pride in the value that their company provides to society. This is called “internal branding” and directly leads to increased employee motivation and reduced turnover. If employees become “fans” of their company, their words and actions will have a positive impact outside the company and become a powerful source of brand communication.

How to Proceed with Corporate Branding [Explained in 7 Steps]

Corporate branding cannot be carried out on a whim. It is necessary to take a medium- to long-term perspective and execute it systematically. Here, we will introduce the seven basic steps.

Step 1: Formation of a Project Team

Corporate branding is not something that can be completed by a specific department alone; it is a company-wide effort. The first step to success is to form a cross-functional project team with members from each department, including management, marketing, public relations, human resources, and sales. In particular, strong commitment from management is essential for driving the project forward.

Step 2: Current Situation Analysis and Clarification of Issues

First, start by objectively understanding your company’s current situation. Utilize frameworks such as 3C analysis (Customer, Competitor, Company) and SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to investigate your company’s position in the market and how it is perceived both internally and externally. Questionnaires and interviews with employees and customers are also effective methods.

Step 3: Formulation of Brand Identity

Based on the issues and strengths identified in the current situation analysis, define the core of the brand (brand identity), which is “who the company is and where it is going.” This is often composed of the following three elements and is also called “MVV.”

• Mission: The mission that the company should fulfill in society, the significance of its existence
• Vision: The future image of the company as it pursues its mission
• Value: Values and action guidelines for realizing the mission and vision

Step 4: Design of Brand Experience

Translate the formulated brand identity into a form that stakeholders can experience. Specifically design visual elements (visual identity) such as logos, taglines, and designs, as well as the wording used on the website (verbal identity), and create guidelines to ensure consistency.

Step 5: Internal Penetration (Internal Branding)

The people who should most embody the brand are the employees who work for the company. Share the formulated brand identity with all employees through internal newsletters, training, workshops, etc., and implement measures (internal branding) to get them to understand it as their own. Without employee understanding and empathy, external communication will lack consistency.

Step 6: External Communication (External Branding)

After solidifying the foundation with internal branding, begin external communication (external branding). Continue to communicate a consistent brand image at all customer contact points (touchpoints) such as websites, social media, press releases, and events.

Step 7: Effect Measurement and Improvement

Corporate branding is not something that ends once it is done. Conduct brand awareness surveys and employee satisfaction surveys regularly, such as quarterly or semi-annually, to measure the effectiveness of the measures. It is important to review the strategy based on the results and repeat improvements in order to evolve the brand in line with the times and continue to enhance its value.

Specific Measures for Corporate Branding

The following are examples of specific measures to promote internal and external branding.

Examples of Internal Branding Measures

• Production and Distribution of Brand Books: Create a booklet summarizing the company’s mission, vision, and code of conduct, and distribute it to all employees.
• Carrying Credo Cards: Employees always carry a card with the code of conduct written on it so that they can be aware of it in their daily work.
• Communication through Internal Newsletters and Intranets: Regularly share introductions of employees who embody the brand and related initiatives.
• Implementation of Training and Workshops: Provide opportunities to deepen understanding of the brand and consider how it relates to their work.

Examples of External Branding Measures

• Website Renewal: Refresh the design and messaging based on the new brand identity.
• Content Marketing: Communicate the company’s expertise and values through owned media and blogs to build relationships with customers.
• PR Activities: Spread the word about the company’s initiatives to society through press releases and information provision to the media.
• Holding and Sponsoring Events: Hold events where people can experience the brand’s world view and sponsor activities that are highly compatible with the company’s philosophy.

Strategic PR activities and digital communication are essential for the success of corporate branding.

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Three Points to Succeed in Corporate Branding

Finally, we will explain three essential points for successfully leading corporate branding.

Point 1: Gain Strong Commitment from Management

Corporate branding is a management strategy that involves the entire company and requires a significant amount of time and cost. It is essential that management deeply understands its importance and demonstrates strong leadership. The top themselves must act as the face of the brand and continue to communicate messages internally and externally, which will determine the success or failure of the project.

Point 2: Involve the Entire Company and Maintain Consistency

The brand image is formed not only by the website but also by the words and actions of sales representatives, the response of customer support, the quality of products, and all other activities of the company. It is important for all departments to share the brand’s goals and take consistent actions in their daily work in order to build a trusted brand.

Point 3: Continuously Work with a Long-Term Perspective

Brand value cannot be built overnight. Rather than seeking short-term results, it is necessary to take a long-term perspective of 3 to 5 years and persistently continue measures. It is also important to review and evolve the brand in line with social changes and business growth.

Conclusion and Next Steps

Corporate branding is not just an image improvement strategy, but a core management strategy for creating the company’s future. By re-examining the company’s raison d’être and consistently communicating its value internally and externally, it is possible to establish a competitive advantage, strengthen organizational capabilities, and achieve sustainable growth.

In addition, in today’s world where the market environment and social values are rapidly changing, it is important not to stick to a once-built brand, but to flexibly review its existence in accordance with the changes of the times and update the branding itself.

Please refer to the steps and points introduced in this article and start working on your own company’s corporate branding.

SUNNY SIDE UP will support you as a partner for PR and strategic branding, not only in the early stages of the company’s founding but also in times of change and other situations. If you are interested in improving corporate value and building relationships with stakeholders, please feel free to contact us via the inquiry form.

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