Brand Theories - Perspectives on brands and branding [1 ed.] 9789144116242

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BRAND

MANAGEMENT

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research community. of brand orientation to the the processes of which in "an approach Brand orientation was defined as creation, development and protection of the organization revolve around the with target customers with the aim brand identity in an on-going interaction

by introducing the concept

in ofbrands"(Urde, 1999, ofachieving lasting competitive advantages theform such as Nestlé, Nicorette,

research on companies p. 117). Case study-based that could no longer be Volvo, DuPont and Tetra Pak revealed practices Market orientation had included solely under the label of market orientation.

BRAND ORIENTATION:

MANAGING

ORGANIZATIONS

FROM A BRAND

PERSPECTIVE

points of departure and mindsets in understanding, defining and managing

brands. These two paradigms apply to different types of organizations (such

commercial corporations or non-profit organizations), brands (such as product or corporate) as well as brand structures (such as "house of brands" or "branded house") and how they are managed. The quintessential brand versus market-orientation questions can be stated as follows: "To what extent as

should an organization be guided by its identity?" and "To what extent should it be responsive to others' views and wishes?" (Urde & Koch, 2014).

become marketing's major paradigm since the late 1980s with its philosophy and meeting the stated or hidden needs and wants of customers and markets (Kohli & Jaworski, 1990; Narver & Slater, 1990). However, with the introduction of the brand orientation philosophy, that focuses

on

identifying

Brand orientation frameworks

natural

Brand orientation is a multidimensional construct that rests on two major foundations: a cultural and a behavioral. Froma cultural perspective, brand

In "brand-oriented organizations", the objective was to create value and meaning witlhin the boundaries of the brand's identity. As a consequence,

organization's thinking and reflected in organizational values and beliefs. Conversely, the behavioral foundation of brand orientation should focus on implementing certain behaviors and

the brand had become a strategic hub for stakeholder interaction without

activities for building brand-oriented capabilities.

unconditionally catering for any customer wishes at any given time. Revealing the brand as being, or at least having the potential to

The cultural and behavioral perspective in brand orientation

be the

and needs were no longer perceived only basis for an organization's marketing and brand development strategy.

customer wants

to

be, a strategic resource for achieving lasting competitive advantages was inspired by the resource-based view of the firm (Barney, 1991), the concept of strategic intent (Hamel & Prahalad, 1989), visionary companies (Collins & Porras,

200s), and the brand as part of the culture of an organization (Schein, 2010). These perspectives had increasingly come to intluence the strategic management field, which was previously dominated by viewing strategy formulation as first and foremost coping with industry competition. In the resource-based view of the firm, the two fundamental assumptions are

resource heterogeneity (that is, firms have diferent resources) and resource

immobility (that is, resources cannot be easily transferred to, or copied by, other firms). Brands as resources can therefore represent a sustainable

competitive advantage if they are. for example, valuable, rare, durable or difticult to imitate or substitute. Early brand orientation case studies demonstrated that integrity and competence are essential for the creation,

development, and protection of brands that have an identity and not just an interchangeable image. In essence, market orientation and brand orientation represent different

orientation should be embedded in the

Cultural brand orientation can be described as a construct consisting

of several elements that highlight the overall importance of branding to

an

organization. For example,

o THE AUTHORS AND STUDENTLITTERATUR

truly

brand-oriented

organization

is

characterized by branding's influence on all marketing activities, its strong

interdependency with overall strategy, or its long-term brand planning

seen

as critical for future success (Wong & Merrilees, 2007) Behavioral brand orientation is linked to certain brand-oriented capabilities

such as distinctive, functional, value-adding, and symbolic capabilities, which lead

to

weaker

or

stronger brands depending

on

their activation

(Bridson & Evans, 2004). Moreover, capabilities related to maintaining the relevance of an organization's brands and the ability to deliver superior value

to stakeholders (interaction), an organization's ability to integrate marketing activities (orchestration), and an

organization's ability

to understand

stakeholders' attitudes and feelings about the brand (affect) form additional dimensions of the behavioral approach (Ewing & Napoli, 2005).

o THE AUTHORS AND STUDENTLITTERATUR

26

a

21

BLOCKI

BRAND MANAGEMENT

BRAND ORIENTATION: MANAGING ORGANIZAT!ONS FROM A BRAND PERSPECTIVE

PERSPECTIVE

orientation Towards a holistic perspective of brand

brand

fruitful to conceptualize Recent research suggests that it is most and a behavioral perspective. orientation pluralistically from both a cultural the cultural level, before it can However, a brand must first be established at For example, drive brand-oriented behaviors and actual implementation. model includes cultural Baumgarth's (2009, 2010) brand orientation "norms" (norms of brand layers of "values" (brand orientation as a value), orientation), and the fourth orientation), and "artifacts" (artifacts of brand The first layer (values layer "behaviors" (behavior of brand orientation). influences the next (norms dimension), which in turn affects the

and Melin (201) base their operationalization of brand orientation on eight dimensions: approach, implementation, operational development.

relationships. identity development and protection, goals andfollow-up, top management participation and responsibility and roles. Figure 1.1 illustrates

those dimensions identifying the "anatomy" of brand orientation. Considering the author's finding that "approach " and "implementation

are the dimensions with the greatest impact on brand orientation, every employee should prioritize the brand, not just a few dedicated top managers.

Companies are also advised to incorporate all those dimensions in some

dimension),

Table 1. ists layers ofbrand orientation (artifacts and behaviors). examples each representing the cultural (values, norms, artifacts)

next two

several

and behavioral part of a brand orientation.

Approach

Another rather holistic perspective on brand orientation covers significant elements of brand management implementation besides conceptualizing the

Responsibility

surely essential approaches of a philosophy. culture and mindset. Gromark

Implementatlon

and roles

Table 1.1 Cultural and behavioral conceptualization of brand orientation (based on

Baumgarth, 2010) Values

Norms

Artifacts

Behavior

Deciding brand issues at the top management level.

Adhering to

Employees

Investing in image

displaying visible branding elements

advertising

Differentiating the brand towards

corporate design guidelines. Integration of brand communication

competitors brands. methods Continuance in brand positioning over a long time

Goals and

the brand's intended

follow-up

Relationships

position. about the status quo

Managers having

resources.

Instructing new

Regular meetings

Operational development

Teaching employees

employees about

statements.

Brand Orientation

about the brand.

reflect the brand identity.

clear responsibility for the brand

participation

Stands at trade fairs

Written specification of brand positioning

period. Brand investments also in times of Scarce financial

during all customer contact.

Top management

of the brand.

Brand stories reflect the brand's intended

ldentity development

Conducting market

and protection

research studies concerning the brand on a regular

basis.

Figure 1.1

position.

THE AUTHORS AND

Holistic brand orientation dimensions (Gromark & Melin, 2011)

THE AUTHORS AND STUDENTLITTERATUR

STUDENTLITTERATUR

29

BRAND MANAGEMENT

BLOCK 1

PERSPECTIVE

I BRAND ORIENTATION:MANAGING ORGANIZATIONS FROM A BRAND PERSPECTIVE

way

to

represent

performance.

A

a

holistic view of brands and to cater for positive brand relationship between brand orientation and

positive

been demonstrated by a few empirical studies corporate performance has brand orientation elements have in different contexts and when various been activated (Baumgarth, 2009, 2010; Bridson & Evans, 2004; Gromark

&Melin, 2011; Napoli, 2006; Wong & Merrilees, 2008).

in crisis situations such as service recovery (after a service or product failure). Interestingly, employees seem to direct their trust more towards their leader than towards the brand due to their closer emotional relationship with leaders. In conclusion, it is suggested that leaders are clearly a critical

precursor for a brand orientation system to work. Brand orientation and the role of internal branding

Key antecedents of brand orientation:

identify

objectives

Leadership and internal branding

Organizational

Studies on explaining what factors contribute to brand orientation, as well

the mission, vision and intended position of the brand (Urde, 1999). The

as the impact of brand orientation are still rather limited. Nevertheless,

higher the identification of company members with the brand-oriented

members should

with the

of the

organization when becoming brand oriented and constantly support

leadership (Vallaster & de Chernatony, 2006), internal branding (Wallace,

organization, the higher the degree of brand orientation of the company

Buil, & de Chernatony, 2013), as well as organizational resources and

will be. This also means that when focusing on a brand orientation, brand

(Huang& Tsai, 2013) have been found to be antecedents of brand-

leaders and other key organizational actors need to start by enhancing the

oriented companies. In other words, becoming brand-oriented is closely tied

identification of employees with the organization in order for companies

structure

to

organizational

context

to sustainably promote brand orientation (Huang & Tsai, 2013). This is,

(objectives, policies, relationships, etc.).

a challenging task considering that managers are often seen to match brand orientation behaviors while front-line employees are often

however, Brand orientation and the role of leadership

closer to a market orientation and vary in relation to brand value buy-in

Leadership by the CEO and senior management teams is known to have a strong influence on brand orientation systems including both its direction

implementation (Vallaster de Chernatony, 2006). Two types of leadership are often discussed in the literature: transformational and transactional leadership. In a brand management context, transformational leadership is understood as a leader's approach to appeal to followers personal values and convictions, thereby them to and

of the

&

brand; in contrast, transactional

motivating

act on

behalf

leadership is outlined as a leader's approach to motivating followers to act on behalf of the brand through contingency rewards such as material advantages (Morhart, Herzog, & Tomczak, 2009). A recent study in the service industry has shown that brand-specific transformational leadership has a positive impact on brand orientation, while brand-specific transactional leadership is ineffective in cultivating brand orientation behaviors (Punjaisri, Evanschitzky, &« Rudd, 2013). More specifically, it is trust in the leader, trust in the brand, and brand identification that mediate brand-specific transformational leadership effects 30

THE

AUTHORS

(Wallace et al., 2013). Even though it has been shown that organizational

brand-supportive

behavior

can

STUDENTLITTERATUR

strength

and

cross-functional department integration (Huang & Tsai, 2013; Matanda & Ndubisi, 2013) functional or divisional silos (or subcultures within an contribute to the can be counterproductive. Such silos might

organization)

failure of implementing a brand orientation in spite of a strong brand vision and management commitment (Gyrd-Jones, Helm, & Munk, 2013). It is therefore useful to apply a more contextual perspective on internal branding of brand-oriented behavior. As Gyrd-Jones and and the

implementation

colleagues succinctly state, silos are unlikely to disappear easily and

brand

leaders must acknowledge and work with, not against, silos in developing

visions and values.

THE AUTHORS AND STUDENTLITTERATUR AND

enhance internal brand

31

PERSPECTIVE

BLOCK

1

Brand

BRAND

MANAGEMENT

orientation

Considering the

in

1

nature

of brand

conceptualization of brand

orientation has

capabilities (the ability to be significantly different from competitors concerning design, function, quality or other characteristics) in order to have higher brand orientation, thus run. in the long creating favorable brand equity

higher product

the

Brand orientation and

high rankings for-profit business (Small and

benefit from

global brand"

such

service differentiation a

high level of brand orientation. Vuitton and their constantly think of Apple, Mercedes-Benz or Louis in "best

or

for-profit firms

Consumer-oriented brands

Just

PERSPECTIVE

internal branding, or low-cost brand marketing and communication techniques. Nevertheless, it is still essential for organizations to possess

management, a

yet to emerge. The insights into brand orientation approaches give following context-specific field of application. distinctive characteristics of each

dominant

BRAND

SMEs, might still become brand oriented by focusing on brand leadership,

different contexts

highly context-specific

MANAGING ORGANIZATIONS FROM A BRAND ORIENTATION:

evaluations. However, other

as B-to-B (Business-to-Business)

Medium-sized

Brand orientation and non-profit organizations

a

firms

areas

or

Brand orientation studies in the non-profit sector have adapted the concept

of

to meet the particular characteristics of charities, educational institutions,

SMEs

Enterprises) still require further research

social services, and other non-profit organizations (Ewing & Napoli, 2005;

into

helps firms in these industries in the market to increase their brand equity and overall performance a have to found positive influence on place. Brand orientation has been the B-to-B sector (Baumgarth, 2010). company performance specifically in

how and to what extent brand orientation

Another study discovered that consumer-focused SMEs typically start with

Hankinson, 2001; Lee, 2o13; Napoli, 2006). Brand orientation in the nonprofit sector can be defined as the organization-wide "process of generating and sustaining a shared sense of brand meaning that provides superior

value to stakeholders and superior performance to the organization" (Ewing & Napoli, 200s). In this context, a positive association has been found between brand orientation and organizational performance in the way that

a minimalist approach to brand orientation, progressing to an emergent

successful non-profit organizations tend to be more brand-oriented than

and finally to an integrated version (Wong & Merrilees, 2005). Integrated brand-oriented firms have both a different mindset about the importance of branding in the marketing strategy and the willingness to invest in the brand

their less successful counterparts (Napoli, 2006). This makes sense, since

they implement their brand strategy. Another study recently showed that it is the level of brand orientation that differentiates declining.

International Committee of the Red Cross, or Save the Children, a greater

stable and growing SMEs most clearly (Reijonen, Párdányi, Tuominen,

(Hankinson, 2001). It is also worth considering that charities and other

in the way

by making the brand an intellectual and behavioral priority for all national affiliates of, for example, larger charity organizations such as Oxfam, the sense of "oneness" and intra-organizational co-operation might be achieved

Laukkanen, & Komppula, 2014); in other words, growing SMEs are

non-profit organizations generally have far more complex organizational

significantly more brand-oriented (but also more customer-oriented) than their stable or declining counterparts. These findings also support the idea that over time it is a combination of brand- and market-oriented elements to varying degrees (and not a tug of war between these two mindsets) that is critical in catering for a firm's growth (Urde, Baumgarth, & Merrilees, 2013). While it is generally assumed that need to invest in

aims than commercial firms (for example, Amnesty International's aim to

amounts of resources to build

to the aligning of image and identity, stakeholder access and dialogue, and

companies

a

brand,

resource

large

abundance

is not

a

compulsory requirement for brand orientation (Huang & Tsai, 2013). Companies that might not possess plentiful resources, such as start-ups or 32

"help fight abuses of human rights worldwide"). Against that background, it is clear that becoming brand-oriented is a long-term process that requires persistence, determination and the overcoming of obstacles. Implementing

changes

in

non-profit organizations

the

AUTIHORS

AND

STUDENTLITTERATUR

essentially about balancing and

balancing of market requirements against organizational identity (Le,

2013). The specific characteristics of non-profit organizations (namely, T H E AUTHORS AND STUDENTLITTERATUR

THE

is

maintaining relationships with various stakeholders, especially with respect

33

BLOCK

1

BRAND

different and

MANAGEMENT

more

PERSPECTIVE

1 BRAND ORIENTATiON: MANAGING ORGANIZATIONS FROM A BRAND PERSPECTIVE on organizational complex goals and a greater emphasis

brand orientation culture) are a good fit with the overall

mindset.

should first define and adopt brand-oriented values. Then they should

formulate brand-oriented norms, via branding manuals and positioning statements. As the next step, they should deploy brand-oriented artifacts as

Brand orientation and place branding place branding has characteristics that distinguish sectors (Hankinson, it from branding in both the for-profit and non-profit in developing a brand 2012). This in turn requires certain adaptions to nations, orientation measure for places o r destinations (with regard reflect the nature of place regions, cities or towns). It must, for example,

There is

consensus

that

elements ofbuilding design. Lastly, they are advised to adopt brand-oriented behaviors, such as implementing control mechanisms and engaging in

corporate identity campaigns. Brand orientation and the public and political sectors Brand orientation has also entered public organizations and their

brand management as a coordinated rather than a line-managed activity

management. In contrast to a public sector's typical overreliance on the

and the fact that place brands are co-produced by independent service organizations and other stakeholders. For example, "producing" the place brand Sweden is inevitably a joint effort by a network of service industries such as tourism or cultural institutions. Moreover, extending the role of

customer in

branding beyond marketing communications to include service delivery and the customer experience, as well as relying on external partners to deliver the brand experience, has special relevance to place branding. This is why the

important role of internal stakeholders (that is, citizens) in place branding should be highlighted specifically (Baxter, Kerr, & Clarke, 2013). If a place

conjunction with the introduction of "new public management", brand orientation is suggested as an alternative providing a holistic and

more

perspective (Gromark & Melin, 2013).

balanced

brand orientation is discussed

as

specifically, being more robust because it emphasizes More

continuity coupled with dynamics and interaction, thereby diminishing the risk of shortsightedness and reactivity often found in a market orientation. Moreover, the authors argue that brand orientation has the ability to create legitimacy and trust - also in terms of the brand's implicit promise, which

brand, such as a city, is not supported by internal identities, resources, and

provides citizens with a tool for evaluation of democratic institutions, and in turn makes it easier to demand accountability.

capabilities, it risks losing integrity and trust and thereby being hindered

the

from becoming brand oriented.

Other studies also refer to "political brand orientation" and define it as

degree to which a party values its brand and brand building practices (Cass &Voola, 201). Secing the act of being elected fundamentally as a marketing problem focuses the attention on political party managers,

Brand orientation and the arts sector

politicians and party members and how they perceive their brand and how

Just think of names such as MoMA, Tate, or Guggenheim and one realizes

they can develop and manage key party capabilities that allow them to sense and link with its "marketplace".

that these brands compete not only for visitors but also for recognition. But how? Research has shown that brand orientation has a positive impact on, for example, museum performance (Baumgarth, 2009). Now what does performance mean in this context? According to Baumgarth, museum performance consists of cultural performance (expansion of the collection, conservation of exhibits, execution of scientific research, etc.) and market

performance (visitor satisfaction, increase in visitor numbers, attraction of sponsors, etc.). For effective implementation of brand management in the arts sector, managers responsible for cultural institutions such as museums

Recent developments: Brand and market-oriented

positioning

Defining brand- and market-oriented positioning In an

o THL AUTHORS AND STUDEN'TL.ITTERATUR

to

integrate

market orientation and brand orientation

perspectives, Urde et al. (2013) explored other possibilities and combinations paradigms, thereby going beyond a "tug of war" between them.

ol the two

TE

34

attempt

AUTHORS

AND

STUDENTLITTERATUR

35

BLOCK 1

BRAND

MANAGEMENT

PERSPECTIVE

BRAND ORIENTATION:MANAGING ORGANIZATIONS FROM A BRanD PERSPECTIVE

Synergistic combinations,

more

specifically hybrid

forms between

brand

be possible dynamic were found orientation and market orientation, to discuss brand- and market-oriented trajectories over time. One way or fortification of brand orientation, trajectories (that is, the development context of positioning brands. market orientation, or hybrid forms) is in the and suggesting an alternative way to By revising the positioning concept the concept, Urde and Koch (2014) proposed two basic approaches to

categorize

to positioning: market-oriented positioning and brand-oriented positioning

This implies understanding positioning not from the predominant market-oriented (outside-in) side, but also from a brand-oriented (inside-

out) perspective. Urde and Koch (2014) defined market-oriented positioning as "an outside-in approach that defines and implements an intended position with

values. Table 1.2 contrasts market- and brand-oriented positioning regarding point of departure, approach, key concept, prominence, and strategic focus. Essentially, an organization's approach can be brand-oriented or market oriented, but will more realistically be a combination of the two.

Brand-and market-oriented schools of positioning Part of the synergistic combinations between brand and market orientation

different schools of positioning (illustrated with

metaphors of games) that can be applied at distinct points in time in managing brands. Table 13 presents the five distinct schools of positioning, the objectives with which

are

they are associated and the typical techniques and concepts used in their application. Each positioning metaphor is located on a continuum of market-

brand image as its point of departure and continuing frame of (p. 482). The brand image, as perceived by customers and non-customer

oriented versus brand-oriented

stakeholders, is the focus of this positioning approach. In contrast, brand-

First, the objective of jigsaw puzzle positioning is optimization by means of

oriented positioning was defined as "an inside-out approach that defines

finding unmet customer needs and wants. Over time, brand image surveys

reference

and implements an intended position with brand identity as its point of

positioning.

departure and continuing frame of reference" (p. 482). This implies that

satisfying customers' needs and wants occurs within the boundaries of the

Table 1.3 Market- and brand-oriented schools of

brand's core identity, infuenced by the organization's mission, vision and

Orientation

Market oriented

Table 1.2 Market- versus brand-oriented

positioning (Urde & Koch, 2014)

Market-oriented positioning

Brand-oriented positioning

Point of depar

External market demand and

Internal strength-driven brand

ture

industry structure

potential

Approach

Outside-in

Inside-out

Key concept

Image

ldentity

Prominence Strategic focus

36

Positioning metaphor

Puzzle

Finding lacking pieces in the market

puzzle.

Market and brandoriented

Combination Brand-and market oriented

Brand oriented

Wordplay Exploiting

Wild-Card

Chess

Dominoes

Poker

the meaning of words to reach desired brand associations.

ldentifying and creating

Strategizing

Matching

to create fit with market

identity with selected market

positions.

and

Optimization

Communi-

Innovation

Identifying

cation

and

Finding

Finding new, untapped,

Coordination Findinga fit between the

Selection Selecting and fortifying

exploiting

mental space

market space to bypass

business and the brand

market

Market (customer) over resources

Resources (brand) over market

(customer)

Positioning the brand to satisfy

Positioning the brand to satisfy

the needs and wants of the

the needs and wants of the

unmet

to position

customer and non-customer

customer and non-customer

stakeholders

stakeholders - within the

Customer needs and

boundaries of its identity

wants.

the message in prospects minds.

0

THL AUTHORS AND

uncontested demand, market space. resources, capabilities.

Objective

(brand)

o

positioning (Urde & Koch, 2014)

STUDENTLITTERATUR

TIE

AUTUORS

AND

STUDENTLITTERATUR

competition. strategy.

positions based upon

identity.

37

PERSPECTIVE MANAGEMENT

IBRAND ORIENTATION: MANAGING ORGANIZATIONS FROM A BRAND PERSPECTIVE

BRAND

l

BLOCK

projects, but they essentially also driver for brand positioning occur during the initial activities, which typically constitute positioning white spots" in the market for businesses can

be

a

Finding stages ofpositioning plans. or

defining

outside-in,

the territory for

a

on

are

main

examples of

conduct market and

Many companies positioning charts and perceptual

market-oriented activities.

research and construct Statistical the external data gathered.

consumer

based

repositioned brand

multi-dimensional

analyses,

such

scaling, are effective techniques

as

to

maps

conjoint

identify

analysis offers differ on predetermined attributes and perceptions of how competitive reveal underserved market segments value propositions. Such analyses may For example, parent companies with or market niches worthwhile entering. of brands (such as Procter & Gamble, Henkel, or Unilever) can a or

portfolio

use

such maps too

to

competing Second, the

ensure

that their brands within the same

category

are not

closely with each other.

objective of wordplay positioning is to find mental space to

position the brand's message in the minds of customers and other stakeholders - a mainly market-oriented activity that possesses brand-oriented elements.

Exemplary activities revolve around drafting communication material in collaboration with external brand consultants to creatively differentiate the

strategy fit. For example, in cases of brand mergers and acquisition (such as

Lenovo's acquisition of IBM's PC division) chess-type positioning thinking and acting is required in order to make the most appropriate decisions concerning the specific roles of brands in a brand portfolio and architecture.

Fourth, the objective of dominoes positioning is the matching of values in order to build a "line" of linked values over time. This approach is evident when firms engage in selecting market positions based upon brand identity to fortify them over time. Drawing on a track record of achievements and heritage and developing this in an evolutionary manner is the logical choice of such a brand-oriented inside-out approach. Take Hilti's evolutionary brand development as an example. The Hilti brand, with its professional power tools and drills, positioned itself in association with "creating enthusiastic customers" based

on a

"caring and performance-oriented

culture" foundation early on. Integrity, courage, teamwork, and commitment are matched in order to build a line of linked values in a manner similar to the game of dominoes. Finally, the objective of wild-card poker positioning is to find new,

untapped market space and bypass competition. Successful businesses

brand, or running workshops to define an intended position with words.

where entrepreneurs identify and create uncontested market space through economic or cultural innovation are examples of brand and market

For example, brand slogans such as "Australia's Fresh Food People" by the

orientation activations to

Australian grocery retail chain Woolworths aim to position the brand in the customer's mind and at the same time deposition a major competitor (Coles). Such slogans may change but certain rhetoric elements

(such as emphasizing

varying degrees. Take Amazon as an example for creating categories. Amazon is transforming the retail landscape by introducing technology and service innovations on a continuous basis to markets

or

improve the customer experience and strengthen its brand at the same time.

"fresh food") remain stable over time.

Third, chess positioning has the objective of finding a fit between the corporate strategy and the brand strategy with brand, and market-oriented elements. These types of discussions occur when brand-related position are discussed in conjunction with overall corporate strategy as well as decisions regarding the focus or refocus on specific wanted position attributes of the brand, for example in times of crisis, need chess-type thinking and acting. Linking competitive positioning of the firm and its

issues when

business

areas

with the

strategic positioning of its brands requires multi achieve the goal of finding a strategy brand fit. An

level involvement to assessment of brand resources and brand identity or customer insight and

Challenges of becoming brand-oriented in complex

organizations Most research into brand orientation assumes that organizations as be market-oriented, brand-oriented, or have a form

can

hybrid

a

whole

(Urde et (e.g. financial,

al, 2013). While research has emphasized certain barriers human, or time resources) to becoming more brand-oriented, the discussion often

stays on an organizational level instead of also shedding light on group or individual levels. Koch (2014), for example, illustrated that in

-

segmentation studies is often required when firms aim fora business && brand

multi-business firms (where business units

THE

38

THE AUTHORS AND STUDENTLITTERATUR

AUTHORS

focusing

on

a

corporation

is structured around

particular products,

AND STUDENTLITTERATUR

customers,

or

modular

geographies), 39

BRAND ANAGEMENT

BLOCK

PERSPECTIVE

BRAND many

derentralized

sub-divisions that

businesses brand-oriented discussing

represent

account when themselves need to be taken into

ORIENTATION: MANAGING ORGANIZATIONS FROM

From this a

strategic

business level that might have become platform for action and interaction with the target groups are limited to being an unconditional response to what was

perspective,

brands on

a

strongly embedded in the organization's emplovees identities are likely to meet high

culture, any changes threatenina resistance. This mechanism is activated when corporate level imposes changes that are incompatible with the business unit's sub-culture or own cultural heritage (Koch, 2014). Conseruentir. there are elements of keepingtrue to oneself and not doing everything requirad by corporate level if it is not assessed as useful for the -context of the sub-division's own nurtured culture. The example of

necessarily demanded by corporate level internally. This adds

ABB illustrates this dimension.

Conclusions

a

giobaly operating engineering corporation focusing mainly

on power and automation technologies. ABBs businesses are structured in management scheme that currently comprises five divisions and multiple nits and product areas. ABB has adopted a strategy in which the mother

a

brend guarantees the quality and added value of the whole While the corporate brand ABB can first be assessed from a

portfolio.

corporate-

ievel

perspective

of being

brand- or market-oriented towards its dverse stakeholders, there exists a second observable dimension. The more

internal

relationships between corporate level and multiple business units can be understood from a brand orientation perspective. During ABB's corporate-level plans to reposition the brand as an industrial IT leader

around the millennium (a rather market-oriented move, following the rend of IT developments), a product area in one of ABB's divisions resisted the implementation of changes that would have resulted in removing their brand name from their product's communication. This example heritage shows how the same corporation can at the same time be market-oriented ABB corporate level) and brand-oriented a

resulting friction

(ABB business level). Such

can

productive conflict, as on course.

it

be

destructive, but, importantly, it can also be a might keep the overall organization and its brand

This is because

during

such

a

conflict-laden process,

actors

organizations are engaged in selection practices of what counts, what matters, what is of true relevance, and essentially searching for what is

in

valuable from Ihe case

a

long-term strategic perspective.

example encourages exploring an approach to brand orientation variety while sustaining some form of "brand togethernesS

that embraces

40

not

AUTHORS

AND

STUDENTLITTERATUR

to

the brand orientation

unconditionally responding to what customers externally demand at any given time. In this way, the discussion of market orientation and inside-out and brand orientation goes beyond a simplified outside-in account instead. distinction, taking internal dynamics and conflict into

dimension of not

ever-present and they want to be observed - whether corporate, consumer, service, industrial, non-profit branded world, the or place brands. Considering this attention-catching In

brand

today's

society,

brands

are

reader should be reminded of the quintessential brand- versus market

"To what

questions introduced at the beginning of this chapter: and "To what extent should a n organization be guided by its identity?" and wishes of others?" Against extent should it be responsive to the views

orientation

that background, brand orientation

alongside

its market orientation

creating points counterpart is an essential philosophy for any of form sustainable advantage a and competitive of differentiation context the on embodiment depending specifñc type of brand with varying brand orientation as a cultural and behavioral of the brand. to be considered in

-

Illustrating

brands and brand management also requires emphasizing brand the importance of leadership and internal branding. In cases where orientation is anchored in culture, behavior, and leadership there is support

approach

to

brand-oriented culture and behavior has a positive all the organizational performance metrics. Yet, despite

for the notion that influence

on

a

potential advantages it should be pointed out that changes

to

organizational

if culture and behaviors might be met by resistance from the employees they don't see the benefits of change. While this is true for any kind of change, it is especially relevant in the context of brand orientation or becoming brand oriented. One should

not

expect and believe that brand

orientation

take time, demands fix". Becoming truly brand-oriented will or reducing of barriers, and, investments, and requires the overcoming importantly, a great deal of patience.

is

a

quick

THE AUTHORS AND STUDENTLITTERATUR THE

BRAND PERSPECTIVE

enormous

mindsets and behaviors. In brand-oriented organizations, where values are

ABB is

A

41

BLOCK 1

BRAND

MANAGEMENT

PERSPECTIVE

BRAND ORIENTATION: MANAGING ORGANIZATIONS FROM A BRAND PERSPECTIVE

Questions for discussion 1.

news

in business newspapers. Do

Read marketing-related company market or brand orientation you notice elements of

philosophy?

discussion and research. International Journal of Nonprofit and Voluntary Sector Marketing 6(3): 231-242. Huang, Y. T. & Tsai, Y. T. (2013). Antecedents and consequences of brand-oriented

Discuss your findings. 2.

Hankinson, P. (2001). Brand orientation in the charity sector: A framework for

executive Put yourself in the shoes of a brand manager given the the organization more brandmanagement mandate to make barriers might s/he encounter in the oriented. What

potential

Discuss. process of becoming brand oriented? their and brands positioning strategy based on 3. Find examples of your own interest or experience. Discuss the type of positioning

school and how some brands are brand- rather than market-oriented

companies. European Journal ofMarketing 47(11/12); 2020-2041 Koch, C. (2014). Corporate Brand Positioning-Case Studies across Firm Levels and Over Time. (Doctoral dissertation) Lund University. Kohli, A. K. & Jaworski, B. J. (1990). Market orientation: The construct, research propositions, and managerial implications. Journal of Marketing: 1-18. Lee, Z. (2013). Rebranding in brand-oriented organisations: Exploring tensions in the nonprofit sector. Journal of Marketing Management 29(9-10): 1124-1142. Matanda, M. J. & Ndubisi, N. O. (2013). Internal marketing, internal branding, and organisational outcomes: The moderating role of perceived goal congruence.

Journal of Marketing Management 29(9-10): 1030-1055.

and vice versa.

Melin, F. (1997). Varumärket som strategiskt konkurrensmedel. Om konsten att bygga upp starka varumärken. (Doctoral dissertation) Lund University. Morhart, F. M., Herzog, W, & Tomczak, T. (2009). Brand-specific leadership:

References Barney, J. 1991). Firm resources and sustained competitive advantage. Journalof

Management 170): 99-120.

Turning employees into brand champions. Journal ofMarketing 73(5): 122-142. Napoli, J. (2o06). The impact of nonprofit brand orientation on organisational

performance. Journal of Marketing Management 22(7-8): 673-694

Baumgarth, C. (2009). Brand orientation of museums: Model and empirical results.

Narver, J. C. & Slater, S. F. (1990). The effect of a market orientation on business

International Journal of Arts Management: 30-45. Baumgarth, C. (2010). "Living the brand": Brand orientation in the business-tobusiness sector. European Journal of Marketing 44(5): 653-671.

O'Cass, A. & Voola, R. (201). Explications of political market orientation and

Baxter, J., Kerr, G., & Clarke, R. J. (2013). Brand orientation and the voices from

within. Journal of Marketing Management 29(9-10): 1079-1098. Bridson, K. & Evans, J. (2004). The secret to a fashion advantage is brand orientation. International Journal of Retail & Distribution Management 32(8): 403-411. Collins, J. C.& Porras, J. I. (2005). Built to Last: Successful Habits of Visionary Companies. Random House. Ewing, M. T. & Napoli, J. (2005). Developing and validating a multidimensional

scale. Journal of nonprofit Business Research 58(6): 841-853. Gromark, J. & Melin, F. (2011). The underlying dimensions of brand orientation and its impact on financial performance. Journal of Brand Management 18(6): 394-410 Gromark, J. & Melin, F. (2013). From market orientation to brand orientation in the public sector. Journal of Marketing Management 29(9-10): 1099-1123. Gyrd-Jones, R. I, Helm, C. & Munk, J. (2013). Exploring the impact of silos in achieving brand orientation. Journal of Marketing Management 29(9-10): brand orientation

1056-1078.

Hankinson,

G. (2012). The measurement of brand orientation, its performance impact, and the role of leadership in the context of destination branding: An

profitability. Journal of Marketing: 20-35. political brand orientation using the resource-based view of the political party.

Journal of Marketing Management 27(5-6): 627-645. Punjaisri, K., Evanschitzky, H., & Rudd, J. (2013). Aligning employee service recovery

performance with brand values: The role of brand-speciñc leadership. Journal of

Marketing Management 29(9-10): 981-1006. Reijonen, H., Párdányi, S., Tuominen, S., Laukkanen, T. &Komppula, R. (2014). Are growth-oriented SMEs more likely to adopt market and brand orientations?

Journal of SmallBusiness and Enterprise Development 21(2): 250-264. Schein, E. H. (2010). Organizational culture and leadership. John Wiley & Sons.

Urde, M. (1994). Brand orientation

-

A strategy for survival. Journal

of Consumer

Marketing iu(3): 18-32. Urde, M. (1997). Märkesorientering - Utveckling av varumärken som strategiska

resurser och skydd mot varumärkesdegeneration. (Doctoral dissertation) Lund

University. Urde, M. (1999). Brand orientation: A mindset for building brands into strategic resources. Journal of Marketing Management 1s(1-3): 117-133. Urde, M. & Koch, C. (2014). Market and brand-oriented schools of positioning. Journal of Product e Brand Management 23(7): 478-490.

exploratory study. Journal of Marketing Management 28(7-8): 974-999. THE

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AND STUDENTLITTERATUR

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BRAND MANAGEMENT PERSPE C TIVE N

Urde, M., Baumgarth, C., & Merrilees, B. (2013). Brand orientation and m arket orientation - from alternatives to synergy. Journal of Business Research 66(1): 13- 20 _ Vallaster, C. & de Chern atony, L. (2006) . Internal bra nd building and structu ratio n: The role ofleadership. European Journa l of Ma rketing 40(7/8): 761-784. Wallace, E., Bui\, I., & de Chernatony, L. (2 013). Bra nd orientation and bra nd values in retail banking. Jo urnal of Marketing Ma nagemen t 29(9- 10): 1007-1029. Wong, H. Y. & Merrilees, B. (2005). A brand orientation typology fo r SMEs: A case research approach . Jou rnal of Product & Brand Management 14(3): 155-16 2. Wong, H . Y. & Merrilees, B. (2007). Closing the m arketing strategy to per fo rman ce gap: The role of brand orientation. Jou rnal of Stra tegic Ma rketing 15(5): 387- 40 2 _ Wong, H. Y. & Merrilees, B. (2008). The perfo rmance benefi ts of being bran d-orie n-

a: LU

lo..

Corporate Brand Identity and Image: To Align or Separate - This is the Question

~

::z:

u

VE R ONI KA TARN O VSKAYA

tated. Journal of Product & Brand Management 17(6): 372- 383.

Keywords: corporate brand, brand identity, brand image, brand alignment, brand misalignment, mixed approach

What is the best way to develop a strong corporate brand? In 2014, the three leading global brands were Apple, Google, and Coca-Cola (Interbrand 2014). While Coca-Cola has enjoyed the leadership position for several decades, it has recently slipped from the # 1 to #3 place, leaving the top positions to the high-tech and Internet darlings - Apple and Google (together valued at around 226 million USD). Apple's proud # 1 place signaled that Steve Job's 2001 vision of Apple becoming the "digital hub" of its consumers' lives (Macworld Expo 2001) has finally been fulfilled. With its two new iPhones, Apple Pay and Apple Watch (unveiled 2015), Apple has successfully moved into new geographical markets (Asia) and new industries (e.g. healthcare and the automotive industries). Google has further strengthened its market position through technological innovations and personalized information solutions. Both of these brands work hard on strengthening and sharpening their images for both consumers and businesses but, when asked, many consumers would still associate Google with the search engine while Apple has clearly outgrown its original image of a cool computer. Organizations with strong corporate brands have succeeded in embedding their values in multiple products and services. However, some brands are firmly associated with the original identity instilled into them by managers and founders while others have acquired new identities different from the intended, and even multiple images in the consumer minds.

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There are many questions that come to mind when dealing with strong brands like Apple and Coca-Cola, IKEA and Body Shop, to take just a few. How important for companies are the images of thei r brands, or in other words, the meanings that consumers and other stakeholders attach to th em? To what extent should the image building process be fueled by brands' internal features that create their individuality - in other words, a brand identity? What is the best way to develop a strong corporate brand - should managers strive for the perfect fit between the intended identity and the multiple meanings that consumers and other stakeholders ascribe to the brand? Or should they allow the market actors themselves to adapt the brand meaning to their specific contexts? Finally, is there any realistic choice for managers, in other words, how much can they steer their brands? These questions will be discussed in this chapter through a deep probe into the core research literature on corporate branding. Featuring the distinguished authors of 29 research articles in the leading international journals and several books, the chapter will focus on three specific approaches to corporate branding- alignment, misalignment (separation), and the mixed approach (Mingione, 2015). For each of these three perspectives I will discuss the seminal works and illustrate them with case examples. I will also argue that there is no single best way to manage the corporate brands and that the deliberate, contextual and stakeholder-sensitive approach with a thorough attention to brand meanings, contexts and stakeholders' environment is necessary for corporate brand management in the 21 st century.

Corporate brand identity and image revisited Before delving into the specific approaches to corporate brand management, it is important to achieve a common understanding of the concepts of corporate brand, brand identity, and brand image. The chapter will focus on corporate brands only, for several reasons. Corporate brands differ from product brands in their broader focus on the whole organization behind the brand (as contrasted with a specific product) and their communication domain encompassing multiple stakeholders (and not only customers) (Balmer & Gray, 2003; Hatch & Schultz, 2003). Corporate brands are also guided by values that are usually closely linked to a company's culture and the personal values of its founders, as for example IKEA is guided by a set

CO RJJ O llA T H llf!AND /DEN'f'f'f'Y A N D fM AG ll : T O A LI GN OR SE PARAT E · ··

of values coined by its founder Ingvar Kamprad more than 50 years ago. Product brands, on the other hand, carry values created by brand strategfats - those values are often invented, not genuine. For many successful firms, corporate and product brands share the same name, as with Apple, Google, Coca-Cola, and IKEA mentioned above, and others such as BMW, Volvo, Nike, reflecting the trend of decreasing the number of product brands and strengthening the unifying corporate brand. A corporate brand is a much more complex entity than a product brand because the whole organization embodies the values that are associated with the brand and represents an informal contract bet ween the corporate brand and its various stakeholders (Balmer & Greyser, 2003). Thus, corporate brands are seen as distinct identity types, which might differ from other, multiple identities pertinent to an organization (Balmer, 2008) . This distinctiveness can be seen in the ability of corporate brands to have a life of their own in that "they can be bought, sold and borrowed" (Balmer, 2008). For example, the Absolut Vodka brand was bought by the French Pernod Ricard Group for 5.63 billion euro. Similarly, the Volvo Cars division of the Volvo Group was sold to Geely Automobile of China for 1.8 billion USD. In both cases, the key production facilities and even R&D of the corporations were not acquired, and remained in part in Sweden. In spite of their distinct character, corporate brands still suffer from certain "fogginess" as far as their conceptualizatio n is concerned. A universally accepted definition of a corporate brand is still lacking in the academic literature. In general, a corporate brand is defined as "a sum of values that define the organization" (Ind, 1997) and involves "the conscious decision by senior management to distill and make known the attributes of the organization's identity in the form of a clearly defined value proposition" (Balmer, 2001). To further stress the specific features of a corporate brand, Balmer and Greyser (2003) used the metaphor of a "superior organizational lens" to describe its ability to communicate, differentiate, and enhance the essence of the organization to its stakeholders (Balmer, 2001). Thus, IKEA's corporate brand is about Swedish design, low price, and functionality, while Volvo's brand is about quality, safety, and the environment. The central values that underpin the brand form the cornerstone of its identity or "what organization is about" (Balmer, 2001). In other words, a corporate brand identity is "a distillation of key corporate identity attributes"

0 THE AUTHOR S AND STUDE NT LIT T ERAT UR

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(Balmer, 200 9), being closely linked to the organization's other, multiple identities but at the same time separated from them by its central position for the whole organization. The identity-based view of the corporate brand considers identity as a primary driver of all its brandi ng and broader marketing activities. This is due to the observations that brand identity is rooted in the organizational ethos, its culture and its heritage wh ich, taken together, ere.ate the sense of individuality that differentiates the brand. Brand identitv is concerned with how employees and managers make their brand uniqu~ and it is built, first of all, from their shared mental associations that they communicate via multiple touch points with customers and other stakeholders. Brand image, on the other hand, is about the ways in which customers and other stakeholders perceive the brand, and since they can perceive it in many different ways, multiple images of the same brand are held by different stakeholders. For example, some recent studies show that IKEA is perceived as local and cheap by Swedish consumers, Scandinavian and modern by Russian consumers, and Western and expensive by Chinese consumers. On the other hand, the attitudes towards IKEA as a company, the IKEA store, and IKEA products are quite similar across these national groups, implying that image is a complex, multidimensional phenomenon (Burt, Johansson, Toelander, & Anselmsson, 2010). Moreover, image is volatile and its formation is contingent over the context of consumption and the individual features of the consumer or other stakeholder who comes into contact with the brand. Since a corporate brand has multiple stakeholders, and for many global brands there are also multiple geographical and cultural contexts, the sheer multiplicity of brand meanings and perceptions represents a serious challenge for both brand managers and academics. Hence, the importance of closing the gap between brand identity and brand image has been the focus of many academic studies, while the strong reliance on the alignment between identity and image has become the leitmotif of many business plans and strategy canvases of well-known brands. The next section will focus on the theories of corporate brand alignment, with their key strengths and contradictions.

2 CO RP ORA T E B R A N D ID EN T I T Y AN D ! MAGE: T O A LI GN O R S EPA R A T E ·· ·

Theories of corporate brand alignment - it is all about gaps The growing interes t in corporate marketing and brandi ng during the last two decades has been fuel ed both by the need recognized by managers of international firms to streamline their product brand portfolios and u nite them under a consistent corporate brand umbrella, and the intensifying cross- discipline research integrating the separate streams of organizational studies, corporate com munications, design, and market ing (Balmer, 1995 , 200 9 ) . By definition, the co rporate bra nd represented the most relev an t instrument for corporate brand alignment due to its focus an d value-based nature. By adopting the whole idea of corporate branding as the leitmotif for organizational marketing, firms have started implementing a number of organizational changes leading to a broader adoption of corporate brand rhetoric and related organizational practices. Thus, even such prominent examples of "houses of brands" (i.e. firms carrying a wide range of standalone product brands [Aaker, 2004]) such as Unilever and Procter & Gam ble have dramatically reduced their product brand portfolios and strengthened their corporate brand (the umbrella brand referred to as a "branded house" [Aaker, 2004]) through design and communications. (Unilever has cut the number of product brands it sold from 1, 600 to about 400 since 20 0 0 . Procter & Gamble will narrow its focus to 7 0-80 major brands and shed as m any as 1 100 in the coming years. ) In a similar vein, the academic thinking has d eveloped towards the stronger convergence of marketing and organizational theories and formation of corporate branding as a more pronounced and independent field of studies (Balmer, 2008; Knox & Bickerton, 2 003; Knox, Maklan, & Thompson, 2000). A large number of scholars have contributed w ith a variety of conceptual models aimed at identifying the key components of the corporate brands, highlighting the eventual inconsistencies between them , and, as a major goal, strengthening the brand via their alignment. Among the most recognized models of corporate brand alignment is the "Vision1 Chief Executive A.G. Latley, who came out of reti re ment last year fo r a second stint a t the company's helm, said P&G will na rrow its focu s to 70 to So of its bigges t brands a nd shed as many as too others whose performance has been lagg ing. http://www.wsj.com /a rticles/ procter-ga mble -posts- higher-profit -on- cost-cutting-1406S92304

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Culture-Image" (VCI) model by Hatch and Schultz (2003) (see Figure 2.1), who called these underlying components the "strategic stars" of the corporate brand and provided the "Corporate Brand Toolkit" for managers to assess the gaps between the corresponding elements of the corporate brand. Their major postulate in this model was the call to academics and practitioners to recognize the strong potential of a corporate brand as a gravitation point for the whole organization and attraction center for its stakeholders. It is not surprising that this particular model has become extremely popular among both these groups as it coincided in time with the serious attempts to develop their corporate brands undertaken by many leading firms at that time (e.g. British Airways, Alfa Laval). This has happened in spite of a certain conceptual weakness of the model, lacking the explicit notion of the corporate brand and subsuming it behind the metaphors of gravitation and attractive forces . Toe lack of clarity and certain "fogginess" of the VCI model were recognized by other scholars who added the missing components to the model and developed it further. One of the most often cited articles on branding by de Chernatony (1999) and the following works by de Chernatony and Harris, (2000) and Harris and de Chernatony, (2001) offered the extended models for managing the corporate brand as consisting of the brand's vision, culture, positioning, personality, and presentation (the brand identity components) which have to be aligned with brand reputation. Special attention is drawn to the quintessence of the corporate brand - its vision and

VISION

CORPORATE BRANDING

CULTURE

~

I

~ Figure 2.1 Vision-Cu lture-Image (VCI) model by Hatch and Schultz (2003).

50

CO l(l'O l(AT E II RA ND J D IJN T I T Y A N D I MA GE: T O ALIGN OR SE PARAT E

va lues rooted in the organ izational culture. The importance of values had been emphasized ea rlier (Collins & Porras, 1994) but their centrality to the corporate brand was stressed for the first time by de Chernatony (2002), who also stated that while the concept of a brand is independent of its context, it is the enactment of the corporate brand that makes it different from the product brand. This latter statement implies that corporate brand values should not only be rooted in the organizational culture as such but also linked to employees' individual values, as well as to the values of external stakeholders (customers and other groups). The special focus on corporate brand values as the "backbone" of the brand has become the landmark of further studies in corporate branding, best exemplified by the works by Urde, who also coined the notion of brand orientation as an organization's conscious policies driven by its brand (Urde, 1994, 1999, 2003). The strong belief that "a corporate brand cannot be stronger externally than internally" (Urde, 2003) or, in other words, the recognition of the primary role of brand identity over brand image, is characteristic to these studies, which has also strongly influenced the development of the whole "alignment" stream ofliterature. Although emphasizing the primacy of the internal dimension of the brand, the need to balance it with the external dimension is proclaimed by many authors. Thus, the identification and closure of gaps between identity and image, or internally and externally perceived values of the brand, are at the center of Urde's later studies (2009), proposing the "Core Value Grid" for diagnosing the nature of internal and external values, whether they are aligned (true-hollow) or misaligned (potential-aspirationa l). On a more macro level and with closer attention to multiple identities of a corporation, the A4CID model of Actual (what the firm's identity is indubitably found to be), Communicated (what the firm claims its corporate brand to be), Conceived (what the corporate brand is seen to be), Covenanted (what the corporate brand promise is), Cultural (what the brand culture is found to be), Ideal (what the corporate brand needs to be), and Desired (what senior managers wish the corporate brand to be) identities of an organization places the corporate brand in the center of this constellation as a specific type of covenanted identity (Balmer, 2012). In doing so, the specific nature of a corporate brand as being a covenant (contract) between the organization and its external stakeholders is additionally stressed (see also earlier works by I:> HIE AUTHORS AND STU DENT LI T T URATUR

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Balmer [2001]). Corporate bra nd becomes "the principal identity mode from which others should be appraised and brought into meaningful alignment" (Balmer, 2012). The dramatic consequences of brand misalignment are shown in the examples of case studies such as Hilton Hotels, where two corporate identities shared the same brand (Balmer & Thompson, 2009) and British Airways, where the tensions between customers and employees almost destroyed the corporate brand (Balmer, 2009; Hatch & Schultz, 2003). Another good example of m isaligned identities and their outcomes for the organization is the BP brand. Since the 1990s, BP has invested in a new positioning of a green, ethical, socially-responsible brand, which might be seen as a Desired Identity (see above). However, this image was seen as dissonant with its actual mission of oil exploration, refining, and distribution, often with a clear environmental threat. Further, a series of environmental disasters, the worst being the Deepwater Horizon oil spill in 2010 when millions of barrels of oil were released in the Mexican Gulf, destroying the marine and coastal flora and fauna, has caused wide-spread cynicism towards BP's green positioning. According to the environmental activist group Greenpeace, only 1% of BP's activities come from sustainable sources, making its positioning even more questionable. Thus, by aligning its brand (Covenanted identity) with its desired but unrealistic and hard-to-achieve identity, BP has actually jeopardized both its Actual and Communicated identities (Balmer & Greyser, 2003). On the whole, the alignment research has proven its resilience over more than two decades and its impact on knowledge development is significant from both epistemological and ontological perspectives. Firstly, most frameworks are either derived from or tested on the various case studies, thus applying the qualitative research methodology for model building, leading to the highly interpretative, contextual types of results. Nevertheless, the models and frameworks are often treated as general and contextindependent, leading to a great variety of normative conceptualizations (e.g. gap reduction) and beliefs adopted as the final truth (one of the major beliefs is the idea that alignment of the corporate brand is, first, a desirable goal for all firms and, second, a realistic goal). Secondly, the field is characterized by an abundance of different definitions attached to the same concepts (e.g. . feeling of frustration . a certam brand identity, corp orat e b ran d) , creatmg 52

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CO l(POnATE ~RA ND I DP.NT / TY AND I MAGP,: TO ALIGN OR SEPARATE ·· ·

among the readers. Moreover, the lack of clarity in the conceptual apparat us has resulted in the broader acceptance of the most cited and simplest models by practitioners, who have also introduced them as organizational practices of the leading firms (e.g. Volvo, Tetra Pak, Alfa LaYal). The shortcomings of the alignment research have been recognized by a growing stream of critical literature questioning its postulates and advocating another view of corporate brand management - the misalignment.

Can misalignment be good for a brand? The advocates of corporate brand misalignment (Cornelissen, Christensen, & Kinuthia, 2012; Gyrd-Jones, Merrilees, & Miller, 2013) have criticized the established "truth" of the alignment gurus on several issues: their underestimation of the existence of multiple contexts for corporate branding, their lack of attention to stakeholders other than customers related to the corporate brand, and finally, their oversimplification of the corporate brand nature as such. Firstly, the variety of contexts in which corporate branding takes place, especially for international and global firms, has to be taken into consideration. In fact, almost all strong corporate brands are, indeed, of a global scope (e.g. Volvo, IKEA, Tetra Pak, Apple, Google, Body Shop, and Skype). Moreover, in the increasingly digital environment of our lives, even small and unknown corporate brands can become global almost overnight. This implies the need to adapt corporate branding strategies to these new cultural and/or digital contexts. As early as the beginning of the 2000s, scholars warned of the negative consequences of the failure to adapt the brand to different cultures. Thus, Tesco, Marks & Spencer, and J. Sainsbury were broadly cited as typical examples of such failures (Balmer, 2012; Burt, Mellahi, Jackson, & Sparks, 2002). These firms should have chosen separate corporate brand identities instead for pushing towards consistency across different markets. A more recent example of a failure to compete with the same brand identity in two culturally different markets is Wal-Mart's withdrawal from Germany. The company entered Germany in 1997 with its proven (in the US, Canada, and Mexico) corporate brand promise of everyday low prices and aggressive hospitality aimed at customers, which, in combination with its large assortment, worked well in the US and

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some other markets. However, the German competitive landscape, which is characterized by an increasing growth of discounters and consumers' aversion to American over-hospitality, combined with the incompatible HR policies regulated by trade unions, resulted in very poor sales performance, huge losses and final withdrawal in 2006 (Christopherson, 2007). This example is also relevant in light of the second critical issue mentioned below: the brand's lack of attention to other (than customers) stakeholders. Second, in the increasingly complex competitive environment within which global firms with strong brands are operating, they need to take into close consideration the variety of different stakeholders who have an interest (stake) in the company. Among these groups are customers (end-consumers), employees, suppliers, media, officials, financial, environmental groups, etc. Clearly, these groups have different views and expectations of the company and perceptions of its brand, depending on their direct or indirect contact and dependence on it. In the case of Wal-Mart in Germany, consumers did not like the forced hospitality of the store employees, while American consumers took it for granted. Similarly, German employees frowned on Wal-Mart's cheerful organizational practices and long working hours, which were considered normal by the American employees. Trade unions in Germany have criticized Wal-Mart for its negligence oflabor legislation, which was unthinkable in the US. Clearly, all these groups, despite belonging to one geographical market, had different perceptions of the brand, which makes it possible to argue that striving for "gap reduction" in the internal and external perceptions of the corporate brand is too simplistic and even absurd. Indeed, several studies have not only proven that these gaps exist, but also proved that they might be favorable for the organization (Davies & Chun, 2002; Roper & Davies, 2007). Even employees emphasized the importance of firmly controlling their "symbolic" appearance as the necessary condition for the brand 's internal consistency. Among examples of such employee symbolism is the young age of fashion retailers' staff (e.g. Abercrombie and Fitch) and age/nationality diversity of furniture retailers (e.g. IKEA). Drawing on examples similar to the above and logical inferences from the alignment models, several authors stress their inherent contradictions and oversimplification of the process of meaning construction, which is individual and contextual (Cornelissen et al., 2012). Moreover, the need to account for the increasingly dynamic, networked, and virtual environment

CO RP O RAT E IJR AND I DEN T ITY A N D IM AGE: TO AL I GN OR SEPARATE ·· ·

of many corporate brand s is stressed, while alignment models are criticized as paradoxical, as they impose the static balances on the inherently dynamic phenomenon (Gyrd-Jones et al., 2013). Given the multiplicity of contex ts and stakeholder meanings involved in corporate brands, some authors suggest a novel characteristic of" discursive constructs" for corporate brands, which is in stark contrast to one-way brand promise or unilateral brand covenant (Balmer 2001, 2012). Indeed, in the alignment theory trad ition, the unilateral nature of corporate branding stems from the primacy of brand identity dictated and controlled via gap assessment by the firm. The idea of a corporate brand embraces the inherent ambiguity of meanings att ached to the brand by internal and external stakeholders and flexibility of inter pretations of brand key components. The most ardent supporters of the misalignment approach even suggest that a corporate brand should strive for an "asymmetrical" or "separating" approach allowing different images held by different stakeholders to enter the brand identity scope (Anisimova, 2010; Anisimova & Mavondo, 2010). Interestingly, some loyal supporters of the alignment approach admit the rigidity of their approach and comment on the possibility of an alternative approach for organizational strategic advantage in the networked, dynamic environment (Balmer, 2012) . Similarly, Urde (2003) adds the need for corporate brand values to be dynamic and relevant for customers and other stakeholders over time. On the whole, it might be argued that the misalignment research still holds a somewhat defensive position in relation to the alignment studies, which, in spite of the weaknesses discussed above, still dominate the academic arena and inform the practices of leading firms continuing to invest heavily in the consistent corporate brands. Many such firms become the darlings of the stock exchange and excellent targets for acquisitions. One of the most recent examples is Axis Communications, a network video surveillance leader with HQ in Lund, Sweden, which was acquired for an astonishing 2.8 billion US dollars. Axis has recently invested heavily in its corporate brand with consistent brand promise and values across all its markets.

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Is a middle ground possible for a corporate brand? Given two contradict ory perspective s to corporate brand manageme nt discussed above, the question is: how to find the middle ground and whether this middle oround is a sound solution. As discussed in depth by Mingione " of each approach suggest certain "cosmetic" measures (2015), the advocates to accomm odate the opposite school of thought. Tims, alignment scholars 12 suooest a certain decrree of flexibility for the brand (Balmer, 20 ) , while " "" nt authors recommend alignment of key components of the brand, misalignme e.g. core values and promise (Gyrd-Jones et al., 2013). That leads the "middle ground" scholars to a proposition of a "mixed" approach - a dynamic process that mixes both aligned and separated approaches (Mingione, 2015). However, the question remains - which elements should be aligned and which can be left out? Is there any general recommendation for companies regarding how to make this decision? From the recent research literature, there appear to be very few studies that develop this "mixed" line of thinking, among them the idea of the brand's dynamic (rather than static) alignment (Melewar, Gotsi, & Andriopoulos, 2012), the concept of the discursive brand in corporate branding (Leitch & Motion, 2007) and the notion of the corporate brand as a dual (dialectical) contract between the firm and its stakeholders (Tarnovskaya, 2015). Interestingly, each of these three groups of authors talks about the inherent paradoxes of corporate branding that managers must be aware of. The first group of authors (Melewar et al., 2012) suggests reconciling the contradicto ry approaches via a dynamic rather than static alignment of corporate brand configurations. This approach looks at corporate branding as a continuous process rather than a snapshot of organizatio nal reality as in traditional thinking (Balmer & Gray, 2003; Knox & Bickerton, 2003) and emphasizes the inevitable change in brand values, stakeholder perceptions, and other brand dimensions reflecting the changing environment. Thus, dynamic and static approaches are seen as alternative ways to manage corporate brands. Another suggestion for corporate branding in the increasingl y interactive , networked and volatile environme nt is to complement the normative view of a ~rand as an organizational resource defined and controlled by managers via alignment (Balmer, 2001) with a socially-constructionist approach that fully embrace_s th~ multiple meanings attached to the brand by its stakeholde rs, co-creatrng it on a par with managers (a broad discourse). As it might be

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extremely challenging to capture the multiple and continuous ly changing stakeholder perceptions, a certai n "norm ative touch " is suggested as far as the brand 's value proposition is concerned. Thus, corporate brand ing involves two pairs of paradoxes - static/dynamic and normative/socially constructe d - that create tensions in the branding process. A very good example of a dynamic brand with a mixed strategy is Dove with its Real Beauty Campaign. Dove is a more than 100-year-o ld product brand of moisturizi ng soap that has always been adYertised as a better alternative to normal soap. In their bold attempt to re-position the brand from a soap to a brand supporting women's hidden desires to feel beautiful as they really are (natural beauty as opposed to the industry-dr iven image fixation), which started from a different outdoor campaign featuring real women in October 2005 (see Figure 2.2), Dove managers embraced social media by posting The Evolution Video (see Figure 2.3) on YouTube in Octob-er 2006. The one-minut e video showed an ordinary woman being transforme d into the stereotype of a beautiful woman with the help of Photoshop, implying that the idea of beauty created by the cosmetics and fashion industries was very far from reality. Within three months this spot was viewed three million times, encouragin g Dove to develop the campaign further by launching a web-site, discussion forums for women and other initiatives aimed at girls' education and women's support. All these activities have receiYed such overwhelm ing support, with millions of women advocates sharing their stories and volunteerin g on many social media platforms (YouTube, biogs, Facebook) , that managers were no longer able (or willing) to control the conversatio ns around the brand. The true citizen brand has emerged with multiple meanings attached to it by its customers. Millions of similar videos were created by users themselves. Among these overwhelm ingly positive associations there were also critical voices accusing Unilever (the company behind Dove) of double standards, since its other brand Axe, aimed at men, still exploited the stereotypes of male dominance over women and exposed their sexuality. Until recently, Dove has continued with its Real Beauty campaigns, aimed at customer involvement and meaning co-creation 2 via social media (among them are Dove sketches and women's choice ). https://www. 2 Dove sketches https://www.youtube.com/watch?v=litXW91UauE; choice youtube.com/ watch?v=7Dd M-4siaQw

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Dove Campaigns exemplify the mixed strategy, since the brand's new "Real Beauty" positioning has been decided upon by managers, who have also initiated the actual video launches. However, the meanings attached to these videos, and their subsequent re-makes by customers, were completely outside the managerial reach. A more philosophical stance towa rds a new conceptualization of a corporate brand by the second group of authors (Leitch & Motion, 2007) draws on the social theory of Michael Foucault (1972) to deepen our understanding of the nature of corporate brand as a discursive phenomenon. As featured by the Dove example above, an open and dynamic corporate brand with a minimum of managerial control is intrinsically a constellation of multiple discourses by its stakeholders (e.g. women in the Dove case) who actively create and co-create (through forums and discussions) a whole plethora of brand meanings. For example, some consumers might still think of Dove as a silky soap at best while others can associate it with an active stance for the right of women to be themselves - beautiful as they are. However, as argued by the authors, depending on the power relationships between the stakeholder groups involved in the brand meaning creation, some ideas can be elevated to the level of established "truth" while other ideas might disappear in the choir of voices. Thus, Unilever managers with their multimillion-dollar budget behind the campaigns are potentially more powerful than critical consumers accusing Dove of double standards. On the other hand, the inherent democracy of the Internet allows many polar meanings to co-exist. Thus, the challenge for brands is to maintain the balance - a strategy that safeguards interpretive openness rather than interpretive control and closure, while at the same

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In addition to maligning customers, Ryanair is never reluctant to mislead them. The rock-bottom prices quoted in ads are often difficult to fi nd in practice. [... ] The specials, likewise, are less special tha n they appear, not leas t the Easter specials, which didn't apply to fl ights over the weekend itself. ( BRO WN , 2 0 06 , P. 6 0)

In spite of these highly ambiguous marketing practices that make consumers fume with anger towa rds Ryanair, the same consumers use the service to fly cheaply, even if they do so in anger. In other words, according to this framework, Ryanair is not actually competing in the travel market providing a service like other airlines; they compete (albeit in a somewhat questionable way) on cultural innovation, as a sort of mythical villain. As the villain in the flight market, they are helping consumers to resolve cultural contradictions by offering those who wish to travel cheaply the opportunity to do so while channelling their frustrations at being cheapskates/br oke/gullible, etc., through the generally accepted open hatred of Ryanair (mal)practices. In Holt's terminology, the Ryanair brand competes successfully in a "myth market". As portrayed above, I suggest that we call it "the market for brands to hate". This makes for a mysterious appeal as the brand that consumers can readily "love to hate" (BBC Panorama, 2009). Ryanair seems to enjoy taking advantage of travellers looking for a cheap bargain, making their offer cheap but also opaque - and they win business in this way. I will go into this analysis of Ryanair and this myth market in more detail in a later section, as an example of how to use the "cultural innovation" model for a basic cultural branding analysis.

Why study cultural branding - and why these two models? Cultural branding is firmly based on theory from sociology

The main researchers and theories from sociology on which Holt draws in both models are: 1.

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Barthes - symbolic value of myths in creating a seemingly real connection between paradoxical states, such as water/oil, fresh/oily something which Barthes himself connected with the abilities of ads

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and brands to tell a story and make connections that were seemingly impossible sound plausible. _ Bourd ieu - a theory of "cultural capital " - a taste system based 2 on t he class system he calls "distinction", upheld by class-based manners and tastes which Bourdieu names one's "habitus". _ Simmel - the "trickle-down theory," meaning that the tastes and 3 fashion s of the upper classes are mimicked by the lower classes. This creates a movement where the upper classes then choose other ways to express their good taste, and this is eventually emulated by the lower classes, and so it goes on. As these three are foundational tenets that cultural branding builds on, the reader may want to revisit the original theories. Holt combines them to show how the strength of a myth can leverage the brand, because it can be made to work in accordance with these three principles, and become important parts of people's lives and their aspirations to convey and embody a certain identity which works for them in the society that they live in today, and its moral "codes", or silent agreements on how to behave and whom to be (Holt, 2004, p. 57; Holt & Cameron, 2010, p. 90). I will continue by further discussing why, and how, cultural branding deserves to be used and studied more widely.

The turning point that cultural branding may represent to many readers This chapter serves as an introduction to Holt's two main cultural branding models that formalize and describe the way that marketers work with c~ltural branding (see Figure 5.1 and Figure 5.2, below). Inevitably, shortcuts will £ be ma d e, and mformation · - lost. I therefore suggest that any rea d er who eels in need of more information turns to Holt's books and looks at the models and cases there. This perspective can be a turning point and a positive new beginning for some readers, while for others it will be bard to digest in the light of previously learnt strategy. Students and managers alike have been using the tradit"iona 1paradigm . since the early 1970s, when it• was seen as a revo 1u t·10nary Way of building strong brands. The devotion to a paradigm is not easily ~ 'l'H~

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overthrown by another model - and cultural branding is not even centred in the business literature, but in sociology! Generally, the traditional strategic brand management paradigm is the only type of research that students have been studying up to that point, so many feel as if they themselves, and the quality of their education, are being critiqued. Holt's research has made explicit the theories underlying the work of advertising agencies when creating campaigns that help make strong brands. For many practitioners in advertising, cultural branding is "stating the obvious" - it describes the way that they use their intuition as marketers in their daily routines. In other words, this kind of analysis is something that practitioners add to their understanding of brand strategy, as they learnt it at business school, only when they start working as marketers. Like Holt, I believe that it is time to make this a strategy taught at business schools.

How come one model is not enough? Why do we need two versions of the model - that from 2004 and that from 2010? I believe Holt was hoping that the second version would be easier to understand because it presents what to do in "steps", so that there is a sense of a built-in starting point and progression, rather than a sense that you can start anywhere in the model, and that almost anything can happen in the process. In other words, the second model seems more orderly. Another main difference between them is that the "myth market" model contains an element called "populist worlds", whereas this was eliminated from the corresponding "cultural innovation market" model, where the type of subcultural material produced in "populist worlds" is instead described simply as "source material". The wording "source material" does not imply in any way how complex this material is. In other words, it is preferable to have an explanation and a terminology for this, in order to understand what is particular about this strategy. This is one reason why the first version of the model is more useful in the classroom - it inspires analysis of the word usage as well as of the model, whereas the second model is aimed at a faster route from reading to applying it.

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Description of Holt's (2004) structure of the rnyth market model overall description of the myth market model Holt (200 4) a rgues that iconic brands compete in "myth markets" _ they have to deliver on a relevant myth that consumers can use to solve problems in their daily identity construction. The theory centers on a model that maps out what the myth market consists of - what elements of the cultural landscape a brand needs to strategize to compete in the myth market. On the left of the model, between National Ideology and Citizens' Identity Projects, a Cultural Contradiction evolves. This contradiction is "experienced as desires and anxieties" - which means that consumers feel that there is some desire that needs to be met, or anxieties that need to be addressed - and they can be located in between what citizens want to do in their own personal identity projects, and what they feel that they are able to do depending on national ideologies at the time. For example: if you are interested in running, and you have personal goals for how far to run each week and what to wear when running - this

The Structure of a Myth Market

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National Ideology

PopuliU Worlds

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l Cultural Contradiction (experienced as desires and anxieties)

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Figure 1: Adapted from Holt (2004, p. 58)

Figures ·1 The Structure of th e Myth Market (adapted from Holt, 2oo4, p. ss).

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is part of your personal identity project. You might then feel that you get positive feedback from the media in general, the attitude of leaders, and people around you - staying fi t is part of the n ational ideology of your country right now so there is a lot of positive reinforcement of this life-choice in ads and in the media. However, if you are not interested in staying fit, you may find that the opposite is true, and then your anxieties and desires are not fuelled by these media and ad messages. In this case, you are experiencing a cultural contradiction between what you are pursuing personally, and what national ideology prescribes.

Solving the cultural contradiction Toe tensions that come from knowing about the national ideology, and placing oneself in the context of it, give rise to a need to have a symbolic outlet for the desires of anxieties created in relation to the national ideology in combination with one's own identity project. So if you are not interested in health, you may look for brands that can solve your current contradiction in terms of not having an identity project that is aligned with national ideology on health (see for example Cederstrom & Spicer, 2015). That brand might, for example, focus on how it is important to be a good friend, or pet owner, or sometliing else that you feel that you are doing well and can be proud of, as one important part of your identity project. The right hand side of the model is directly connected with the cultural contradiction because this is the material that explains how the cultural contradiction can be handled by consumers, and is already handled by citizens. Here, Populist Worlds are where Identity Myths are created, feeding into Cultural Contradictions. Populist worlds are subcultures outlets for ~ore or less extreme expressions of the identity project. In the case . . of runmng to stay fit , a su bcu1ture might be a small group of runners with. a Facebook group wh th h . ere ey s are theu statistics and pictures from their latest run and dec·d 1 . ,, ' eon meet-ups to go running. The material create d t here is source material" fo 1"d . r entity myths which can explain what the cu 1tura I contradiction consist Of F th . s • or marketers, it is important to follow e expressions that source m t . 1 brand and t k a ena takes in relevant subcultures for their ' o ma e sure they follow . change in national ideology. any changes that indicate an impending

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What a shift in National Ideology means When national ideology changes, it is important for an iconic brand to be part of that, because that can potentially shift the whole landscape of why consum ers want a certain brand. The brand needs to target the appropriate desires and anxieties of consumers - consequently, if these change, the brand needs to change with it. Iconic brands do not target groups of consumers; they target desires c!.nd anxieties that are placed with in this matrix of the Citizens' Identity Project and the National Ideology. The shift in national ideology is perhaps easier to show in an American context than in a Swedish context. Just imagine the shift in the collective continuousness of Americans when Barack Obama was elected the first African American President, or when same-sex marriage was legalized throughout the USA. Major political and societal changes change the way that the overall national ideology is shaped, and these things have an impact on what kind of message iconic brands should have, according to Holt (2004). Because the notion of a national ideology, and its impact on brands and branding, is new to many business students when they turn to Holt's theory, this can be an overwhelming concept when learning this model. In addition, because national ideology is not readily visible in an international context, but has to be defined and analyzed after choosing a country culture to focus on for the brand in question, students often find tliis concept daunting, and initially, in a sense, difficult to relate to.

Understanding what a myth is, and seeing that it is implicit in the second model When working with this model, it is important to apply it to one or more companies, because that is how an understanding of the main concepts of what constitutes a brand myth is created. Holt (2004) presents several cases from his consulting work with iconic brands. Holt and Cameron (2010) present a more applied series of cases which presents a separate strategy relating to how each case brand tackles the model of cultural branding. In the Myth Model (Figure 5.1) , the main issue is how the brand's myth needs to be able to change when national ideology changes - this in order for the brand's myth to continuously target the desires and anxieties that

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are accurate at the time. In other wo rds - the desires and anxieties that are caused by trying to incorporate the national ideology in one's personal identity project will change when national ideology changes. The brand 's myth targets the consumer's desires and anxieties, and if the myth does not shift when that national ideology does, then it will be targeting desires and anxieties which no longer actually exist, and they will inevitably no longer be a relevant brand for these consumers. In the second model, describing how to strategize the structure of a myth market has been replaced with how to strategize the m arket for cultural innovations. (The second model [Figure 5.2] does not use the notion of national ideology, and the model does not mention myth markets either, as Holt and Cameron have chosen to call it all "cultural innovation".) However, these two maps or models are essentially maps of the same strategy. Having said that, I will briefly go through the second model and m ake comparisons between the two.

Cultural Innovation Theory Historical change

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Description of Holt and Cameron's (2010) cultural innovation theory model . Th is model, as opposed to the myth market model ' includ es competitors. There is also an arrow drawn from left to right showing that the "historical change" which takes place is affecting the entire model, strategy, and impact. Apart from this, all other elements of the model are also represented in the previous m yth market model. The idea here seems to be to make it more clearly a marketing model. This model has a linear structure, and it uses some terminology that marketers are more familiar with. There is no "national ideology" in this model, it has been substituted by Ideological Opportunity which can be read as an expression of a changing national ideology, in combination with the consumer's identity project (desires and anxieties) combined under one label. The very moment when there is a change in the national ideology is termed Social Disruption and is central in this model. Cultural innovation using source material (called Identity Myths in the myth model) are the change agents that the brands use to stay relevant with their cultural innovation. Finding cultural innovation means finding the relevant myths. In other words: the model does the same thing as the myth model did, but it does not use the language of sociology (myth, identity project, ideology), but switches to a more business-centred approach, with "innovation", a timeline, and competitors, included in the model.

Ideological Opportunity Demand for Better Ideology, by consumers (experienced by them as desires and anxieties)

Examples explaining how to use the two models - Hello Kitty and Ryanair I will u se t wo examples to further describe the two models. Please note that th ese are examples, and not full cases. Explaining how a successful brand of your choice works as an icon is what I hope you will be able to do after reading this chapter, so r will focus on presenting you with the models for it.

Social Disruption In Society

Source Material Subculture. Media Myth. Brand Assets.

~owever, it is my hope that the brands chosen here convey the idea of what nd iconicity" stands for, as they are instantly recognizable, global bra s.

Figure 2: Adapted from Holt & Cameron (2010, p. 12)

Figure 5.2 Cultural Innovation Theory (adapted from Holt and Ca meron, 2010, p. 12).

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The Hello Kitty brand used to exemplify the Structure of the Myth Market model Hello Kitty is a brand centred on a plush (or comic strip) cat. In Japan, where the cat originates, her success might be explained easily by the countr y culture's elevation of "cuteness" (Kawaii), manga comics, and cosplay (i.e. adults usi ng cute Kawaii plush costumes; see e.g. Kawamura , 2012; Okazaki & Johnson, 2013) . However, how can we explain the cat's success, far and wide, outside Japan? It is an iconic, global brand, and adults as well as children own and cherish Hello Kitty possession s. I will attempt a category by category explanatio n of the Myth Market model. My first goal here is to show how the model can be used to explain how a brand is iconic; in other words, the goal is not to give final evidence that Hello Kitty is iconic in this particular way but to demonstra te the mode] in a plausible way.

National ideology: "Nations require a moral consensus to function." (Holt,

p. 57). In Swedish culture, the general cultural ideal regarding adults in relation to playing is that adults are not supposed to play with dolls or other toys because, as in other Western cultures, this can be seen as a sign of not having developed properly into maturity (see Bryant, Beilby, & Harringto n, by 2014). An adult playing with dolls would generally be considered strange most because this, in ion others, for example. However, there is a contradict people do not actually want to stop playing entirely just because they grow up. Playing is desired, but most people are very anxious to do it in a socially acceptable way, if they are going to do it. For example, some people collect antique dolls, others collect a series of dolls - such as Star Wars figures, for example. Collecting and being a fan is usually culturally and socially accepted, whereas outright playing is not. 2004,

Citizens' identity project: Most adults seem to want to be taken seriously

h. H and feel responsible and mat 1s t owever, ure. · does not exclude the need H to sometimes be playful · ow can you engage m play, and at the same time b t ·f th come acr.oss as a responsible adult? (Sport has otite b n een e answer, u 1 · . off the table_ what is left?) we ta ke this

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Cultural contradict ion (A nxiety/De-s ires): Adu lts do not play with dolls and Ot her toys - that is the general expectation · In reali·ty, ad ult consumers can, quite frequently , get away with playing with the right kind of toy _ so the right brand can solve the contradiction between being expected not to "'play" and actually needing to continue playing (i n some sense) even as an adult. For example, this might be Hello Kitty, Harry Potter memorabilia, or Wii consoles. These are then not defined as "playthings"; rather they are seen as kitsch, collectible memorabi lia, and "games". These brands need to be careful so that they are seen as part of an adult world, and not primarily as children's toys. According to Kazuo Tohmatsu, Head of PR at Sanrio Japan (the company behind Hello Kitty) it was only in the mid-gos that the brand became popular with adults, due to a shift in culture. Some of the first adult products were mobile phone accessorie s, and it did not take many months before women and men, college girls and office workers were using them. Howe,er, it had already existed for over 30 years as a children's brand. Thus, there is a contradict ion. Adults "should" not play with toys - but in a sense they still do. Anxieties and desires of various kinds result from this contradiction; what is seemingly unaccepte d can become accepted in certain constellations of, for example, timing and brand, and framing it as "collecting". Populist world/Sou rce material: Modern Japanese culture. Here, play is integrated into the adult world. The games and films of one's childhood are also sources of this type of populist world - through an idealized past filled with (by now) iconic figures . Nostalgic characters become important in a way that can be explained, as in the case of Hello Kitty: you may have "known" her since you were a child and/or you may be a collector. vVith Hello Kitty, you can be a fan, and the contradiction can thus be solved. Myth Market/Re levant Identity Myths: Growing up usually brings increasing responsibi lities, and also a sense of responsibility - playing with toys is less age-appro priate when you reach high-school age than it was when you were three. However, we do like our super heroes, and the Harry Potter movies th seemed to attract fans regardless of their age. Although adults playing wi dolls is generally considered weird, most adults interested in these m_ovi~s and stories are considered perfectly normal. Likewise, because Hello Kitty is

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so well-known, she is generally not seen as simply a plush toy, but embodies symbolic capital as a champion of cuteness. Hello Kitty can communicate playfulness, and "geekiness" on the part of the consumer, but she does not automatically carry a shaming aura of "adult playing with toys". She is an icon that people welcome into their lives to add a playful element, and fandom. 'Ille brand has taken the opportunity to create socially accepted ways for adult consumers to play through the symbolical meanings that Hello Kitty has gained over the years , and perhaps a shifting national ideology that is more tolerant towards play at all ages. The way around the Anxiety/Desire has been to watch movies, read books, play video games, and collect iconic toys that are more or less accepted (the list can be made longer). In other words, toys are still usually not accepted for adults (unless you are in Japan), but there are ways that society agrees on some more or less accepted brands of toys and silently agrees not to call them toys, and not to think of them as such either. A company that wants to take this opportunity must know how to present these to adults as "games", or "cuteness", and collectible items. Tuey need to be far enough removed from a simple children's toy to meet this opportunity, stave off the anxiety and create desire for the brand. Of course, this is not an easy task for a brand, and not many brands reach iconic status. Many of those who do, lose their appeal along the way because they do not develop a new "myth treatment" (Holt, 2004, p. 64) when times change and · the anxieties and desires in consumers shift.

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compete outside of benefits. I will argue that Ryanair can be both a "villain" (uncomfortable in various ways, adds costs along the way) and a "saviour" (cheap flights for everyone) at the same time, and this is the myth of the brand which makes it possible to really "love to hate" it. The steps of the model are not numbered when we first encounter it (p. 12). The original also contains a slightly different version with numbered steps (1-6, on p. 197) for those who might be interested in this. However, for the purpose of this chapter, the basic innovation model is more interesting in relation to the previous myth model. New concepts here are blue ocean vs. red ocean. The red ocean is the competitive area where most competitors are making an offering - in terms of competing on benefits, the red ocean is the low-cost segment for Ryanair. Blue ocean is the ideological innovation space that is free of competition - it consists of culturally framed opportunities that exist and need to be met but have not previously been thought of (or met) by any other brand. The blue ocean is by nature hard to survey, and this is the initial challenge. Finding the relevant way to compete, given that the innovation has not been considered among competitors, is tough.

Cultural orthodoxy/red ocean: This is where the competitors tend to compete. For Ryanair and its low-cost segment competitors, this is in price, and in using limited time campaigns to gain attention. Bold colour is used. Ryanair does this too, and has claimed bright yellow. (They use dark blue as well, although this is not a feature that distinguishes the brand from competitors.)

Ryanair used to exemplify the Cultural Innovation Theory model Ryanair is the airline everybody "loves to hate" (BBC Panorama, 2009). It is a relatively clear-cut example of a brand that positions itself on "cultural innovation" rather than on benefits. The low price is a benefit, but for Ryanair, the benefits end there. So why choose Ryanair rather than, for example, Easy Jet - another company competing on price, with a less well-known bra nd ? One an swer to this question is that the Ryanair brand somehow actually appeals to consumers - but how? I will use Ryanair to exemplify Holt a nd Cameron's model, and not the other way around. Consequently, the brief analysis presented here cannot prove anything, but it makes it possible to see Ryanair in the light of the idea of "cultural innovation" as a fruitful way for brands to analyze the way that they

Social disruption: More people than ever before are interested in flying cheaply (also shown as "Historical change" at the top of the model). Young people fly more than they did before low-cost airlines existed (BBC Panorama, 200 9). Some of the travellers are not really ready to accept the uncomfortable features of low-cost flights, but they do it anyway to save money (ibid.). They are the consumers who are more likely to hate Ryanair, although they use their services.

D emand for a better ideology: Let us suppose that t h e a b ove "soc1·a1 ~sruption" creates a high number of grumpy passengers on ~ach low-~ost flight. These are people who wish they were elsewhere but are still responSlble 121

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for their own situation, having both reluctantly and smugly bought these cheap tickets themselves, feeling very thrifty at the time of purchase. When they are travelling, they spend a lot of time regretting their economical decision to go with Rya nair, so they need to be able to let this out. They do not expect a better situation to come their way, but feel they should at least be able to complain about the situation they are in, to work off steam.

Ideological opportunity: Providing an outlet for whining and complaining, allowing passengers to feel like real low-budget travellers. Lousy flight times/ service/airline/leg space/shuttle connection (etc.) - complaining is the norm with Ryanair. You can always complain about it with other passengers, and you can email and complain to the company - it is part of the Ryanair culture. The CEO himself has set the bar: it is ok to be grumpy and complain; in fact, it is expected. That said, this is all about complaining, not about getting any understanding replies, or reimbursement or the like. Complaining itself is part of the culture, not listening or providing. Michael O'Leary "will only do business on his terms" (BBC Panorama, 2009). He makes Ryanair "the Cu Chulainn of civil aviation" (Boru, 2006). In other words, he acts like a relentless Irish hero, treating competition as a fight he will win no matter what, or who, tries to stop him. This makes an adversary of anyone who gets into a discussion, although a good fight is always appreciated. Anyone is welcome to complain publicly - it is all seen as good publicity, even when it is actually bad (BBC Panorama, 2009; Brown, 2006).

Source material: People's stories, negative publicity/documentaries (e.g. "Why hate Ryanair?" a BBC Panorama documentary from 2009), the myth of the miserly CEO Michael O'Leary, the "false" press releases, and the brand's flat yellow colour which is also a feature inside the planes. These are all source materials for the cultural innovation of the brand that you "love to hate" (BBC Panorama, 2009) - the cheap villain/saviour. A myth is usually comprised of two oppositional functions - things that should not really go together, although the brand makes it work (see Barthes, 1957), and that is how they respond in a unique and culturally viable way to the "ideological opportunity" of this particular blue ocean. As people started flying with low-cost airlines on a larger scale, the "demand for a better ideology" arose because flyers needed to be enabled to vent their frustrations, 122

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and keep getting low-c~st tick~ts all the same. With Ryanair, you can keep cornplaining to Ryanair, to friends, family and colleagues, and still keep flying with them - it is all part of the arrangement, made possible through the rnyth of the cheap villain brand.

Blue ocean: Ryanair has found that presenting the CEO as a relentless spokesperson, and issuing press releases with outrageous messages such as "we are going to charge for the toilet visits" (BBC Panorama, 2009) are innovative ways to reach out to consumers through causing an outrage. This is "innovation" in terms of blue ocean, notably: 1) because nobody else is doing it, and 2) because the strategy works although no other competitor seems to really understand why it has been so successful. It is "cultural innovation" because it is done in a way that responds to consumers' anxieties and desires in this context. Is it ethically viable? In Ryanair's case, this can be discussed.

Critique of cultural branding Whereas Holt's perspective is widely accepted and used in CCT, there is also a critical strand of research which is not convinced that the strategy makes for empowered citizens. The critics often propose that as much as brands are symbolic resources, they are not resources that consumers need in their lives (Klein, 2000; Lash & Lury, 2007). They argue that the brands have grown too powerful, and that consumers need to act first and foremost as "citizens" and fight back, taking back the public space from brands posting ads and sponsoring events. When compared to the example of Ryanair above, one can argue that the symbolic value of the myth is not available to those who cannot afford Ryanair flight tickets. However, while Klein thinks that people have given up their power to brands, Holt thinks that people are the owners ~f brand culture just as much as the companies are. The debated queS t ion lS 111 b' . a sense, about what difference consumers can make in their own l"ives ased on the choices given to them in a branded society. nd ,, . O ther criticism is built firstly on the argument that all bra s are villains". Brands have often been accused of creating a need in th e market place O 1 . fi h ted need (Galbraith, ' n Y to play the rescuer that satls es t at crea 1958). Because cultural branding shows how brand meaning is co-created 123

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between consumers and companies in a cultural context, many would wish to see an extension of the theory in which consumers can find a way to free themselves of the brands, and of the market (e.g. Gustafsson, 2oo6· Kozinets, 2002). However, this has not been possible because commercial brands presuppose the existence of a market. It is probable that as long as we have a consumer culture, brands will be more powerful than individuals (see Gustafsson, 2005). This "relevance of brands vs. power of the market" dispute continues to provide ample material for researchers.

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Sean Duffy for valuable comments on the first draft, leading to a ~anbW . . .. · derstanding of how cultural branding is viewed by practitioners, deeper un more widely.

)

Conclusions In particular, from using the two models we can learn that myths play a huge role in brand success. In the two models, what has previously been branding "intuition" about using myths to create strong brands becomes theorized, and possible for students to learn. An understanding of using myths in brand building is highly useful for anyone working with brands in practice because today large brands seldom compete on benefits - they compete on cultural innovation.

References Aaker, D.A. (1996). Building Strong Brands. New York: The Free Press. Arnould, E.J. and Thompson, C.J. (2005). Consumer Culture Theory (CCT): Twenty Years of Research. Journal of Consumer Research 31(4): 868-882. Barthes, R. (1957). Mythologies. Paris: Editions du Seuil. BBC Panorama (2009). Why Hate Ryanair? Documentary, first aired on October 12, 2009 . Link: http://youtu.be/isc L1083c9k Accessed: Aug. 30, 2015. Boru, B. (2006). Ryanair: The Cu Chula inn of civil aviation. Journal of Strategic

Marketing 14(1):45-55. Bourdieu, P. (1984). Distinction: A Social Critique of the Judgement of Taste, Cambridge, MA: Harvard University Press. Brown, S. (2006). Ambi-brand Culture: On a wing and swear with Ryanair. In Brand Culture, Jonathan E. Schroeder and Miriam Salzer-Marling (Eds.). New York: Routledge, pp. 50-66. Bryant, K.N., Beilby, D.B. , and Lee Harrington, C. (2014). Populating the Universe: Toy Collecting and Adult Lives. In The Ashgate Research Companion to Fan

Cultures, Linda Duits, Koos Zwaan and Stijn Reijnders (Eds.). Surrey: Ashgate Questions for discussion

a) Try to find three significant differences between the traditional Strategic Brand Management perspective and the Cultural Branding perspective.

1.

b) Why is the traditional perspective challenged by this perspective? In other words, why can they not co-exist peacefully? 2. a) Can you think of any other iconic brands besides those mentioned here? b) Try to analyze one of those brands in line with Holt and Cameron's (2010) Cultural Innovation Theory model, by following the structure of the analysis of Ryanair. 3. Which of the two models (myth model vs. innovation model) do you

prefer to use in order to analyze a global brand as a cultural contributor of important symbolic value? Write down three reasons for your choice, based on the information provided in this chapter. 124

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Publishing. Cederstrom, C. and Spicer, A. (2015). The Wellness Syndrome. Oxford: Polity Press. Galbraith, J.K. (1958). The Affluent Society. Boston: Houghton Mifflin. Gustafsson, C . (2005). Trust as an instance of asymmetrical reciprocity: An ethics perspective on corporate brand management. Business Ethics: A European Review 14(2): 142-150. GuStafsson, C. (2006). Brand Trust and Authenticity: The link between truSl in brands and the consumer's role on the market. European Advances in Consumer

Research 7: 522 _ 527_ Holt, D.B. (1998). Does Cultural Capital Structure American Consumption? Journal H of Consumer Research 25(1): 1-25. olt, D.B. (2002). Why Do Brands Cause Trouble? A Dialectical Theory of Consumer Culture and Branding. Journal of Consumer Research 29(1): 7o-9o. . Holt, D.B. (2004). How Brands Become Icons: The Principles of Cultural Brarz dmg. H Cambridge, MA: Harvard Business School Press. olt, D.B. and Cameron, Douglas (2010). Cultural Strategy: Using r:wo~ative I< Ideologies to Build Breakthrough Brands. New York: Oxford University Press. awamu y L d ra, • (2012). Fashioning Japan ese Subcu Itu res. on n- Berg Publishers.

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Kozinets, R.V. (2002). Can Consumers Escape the Market? Emancipatory Illu minations from the Burning Man. Journal of Consumer Research 29(1): 20-38. Lash , S. and Lury, C. (2007). Global Cult ure In dustry. Cambridge: Polity Press. Okazaki, M. and Johnsson, G. (2013). Kawa ii: Japan 's Culture of Cute. London: Pres1e) Publi shing. Okazaki, M. (2014, Nov.1). Hello Ki tty: Still fabulous at 40. 711e Japa11 Times. Simmel, G. (1957). Fashion. '/h e American Journal of Sociology 62(6): 541- 558.

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foundations of stnkeholder mark eting encourages marketing academicians and practitioners to broaden their focus from considering a limited number of stakeholder groups, such as customers and employees, to exploring the multiplicity of stakeholders, their dynamic interrelationships, and the evolving stakeholder networks (Hillebrand, Driessen, & Koll, 2015). Following th e stakeholder approach, marketing managers should develop branding strategies taking into account the expectations of internal and external stakeholders forming the stakeholding communities for their companies (Gregory, 2007). Some studies proposing to classify the stakeholder groups into a company's primary stakeholders (such as employees, customers, suppliers, etc.), and secondary stakeholders (such as the media, public opinion, governments, NGOs, etc.) emphasize the significance of their contributions to brand value (Jones, 2005). Furthermore, in addition to considering the main stakeholder groups, such as business actors, political actors, social and other actors, effective branding strategies need to be derived by accounting for reactive (either resistant or supportive), passive and proactive behaviors of these multiple actors (Tarnovskaya, 2012). The contemporary branding research conducted within various streams of branding literature provides excellent examples of studies demonstrating the roles and impact of various stakeholder groups on outcomes of branding strategies. Previous research on corporate branding, reputation and co-creation demonstrates the importance of the alignment between a vision aspired to by managers, an organizational culture experienced by employees, and an image perceived by all stakeholders (Hatch & Schultz, 2001). The corporate branding tool kit demonstrates that managers must take into account the perceptions of all stakeholder groups when developing their vison for the company and corporate brand (Hatch & Schultz, 2001). Employees guided by a supportive culture must act upon this vision, and meet the expectations of different stakeholders. As a result, each stakeholder group will form their impression of the company through associating certain images with it, interacting with employees, and to some extent co-creating the brand by providing inputs to the strategic brand management process (Hatch & Schultz, 2001). The further applications of these theoretical propositions in specific contexts advance the knowledge on the wider consequences of a stakeholder approach. For example, prior findings confirm that the

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ement of brand communities in the co-creation 0 f 6 d . enga g . ... ran meanings and . nd value creates poss161ht1es for th e society to guide k . b1a . . . mar eting managers . their dec1s10n-mak111g, and even to exercise a cer ta,· 1 1n . . n contro over the . ons of internat10nal corporations (Hatch & Schultz ) ac ti , 201.0 . Another influential work within the stream of resea h . re on corporate branding and co -creat10n proposes the stakeholder-brand value model emphasizing stakeholder value relations (Jones, 20 05) . Based on this model marketing managers need to facilitate the interaction with multiple groups 0 ~ strategic stakeholders, who are capable of affecting each other's perceptions about the brand through their actions. Marketing managers can address the tensions arising between different groups of stakeholders by prioritizing stakeholders based on their value contributions (Jones, 200 5). Furthermore, marketing managers can support the implementation of branding strategies by adjusting them based on the consideration of characteristics and expectations of each stakeholder (Jones, 2005). Later developments in this stream of research show the critical role of even opposing stakeholders within a company's stakeholder ecosystem, and the relevance of their contributions in a wider sociopolitical system (Gyrd-Jones & Kornum, 2013). A more specific application of the stakeholder approach in corporate branding indicates the central role of corporate communication for successfully implementing branding strategies (Gregory, 2007). In addition to defining core values and communicating them to the community of stakeholders, the marketing managers need to act as facilitators in the evolving and dynamic process of brand negotiation by the stakeholding community (Gregory, 2007). The active engagement of stakeholders in refining core values and creating brand meanings shapes an informed knowledge base which can guide managers in developing actions to adjuS t th eir branding strategies (Gregory, 2007). The assumptions of this conceptual model indicate that multiple stakeholders with different intereS ts and power m11st be mvolved · in negotiating the corporate bran d an d Providing relevant . co n t n·b utions . to the strategic brand managemen t pro cess · To succeed m th · . h k t" ng managers need e implementation of branding strategies, t e mar e 1 t0 d h" h will support the evelop a more open and collaborative st y1e, w lC Id sim 1 · b different stakeho ers u taneous process of the brand value co-creatwn Y (Iglesias , I n d , & Alf;aro, 2013). h b isiness-toThe conceptual developments in the stream 0 f researc on t 135

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business (B2B) marketing indicate possibilities for applying the stakeholder approach for the analysis of various phenomena in a B2B context. Some initial propositions adYa ncing the stakeholder approach are made by seminal stud ies incorporating the network perspective developed by the IMP researchers (Hakansson, 1982). The consideration of different stakeholders within a business network foc uses on actors performing activities and creating value by transforming the resources available to them (Anderson, Hakansson, & Johanson, 1994). The fundamental principles of the network perspective include the consideration of dyad ic business relationships benveen multiple actors in the business network (Anderson et al., 1994). A broader view demonstrating different levels of network management expands these assumptions beyond considering the focal networks of particular companies (Moller & Halinen, 1999). Previous research highlights the dynamic nature of business nen-vorks and relationships by assessing the wider emi.ronmental context, where companies are embedded in networks of industries (Moller & Halinen, 1999). Following the nenvork perspective, branding studies conducted in a B2B context contribute to the stakeholder approach by providing empirical evidence about the direct and indirect participation of network actors in branding (Mala.ska, Saraniemi, & Tahtinen, 2011). This theoretical view shows that the nature of brand identity and perceived brand image are continuously created and affected by different network actors through their participation in branding activities. Therefore, the success of branding strategies can be determined by various more or less influential stakeholders through their direct branding activities such as influencing the functional brand value, providing references, creating word-of-mouth, co-promoting, and other activities (Malaska et al., 2011). Also, different stakeholders can be involved in indirect branding activities such as influencing management decisi ons, provid ing feedback and advice, offering financial support, and other activities (Mala.ska et al., 2011). Marketing managers might be limited in their ability to control these indirect or direct branding activities triggered by other stakeholders. Nevertheless, they can encourage and mobilize stakeholders to conduct activities supporting a more effective implementation and positive outcomes of branding strategies (Malaskii et al., 2011). Within another stream of branding literature focusing on place branding, 136

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articipatory involvement of multiple stakehold . the P . l . . ers is seen as a necessity . . the contrnuously evo vmg marketing environm t (K 1n . . . en avaratz1s, 2012) en developmg brandmg strategies, marketing m . · Wh . anagers are motivated empower different stakeholder groups who can 1 .. to . . P ay critical roles in -creating and co-managing their brands (Kavaratzis ) c0 , 20 12. Furthermore . . ' th is research stream advances the stakeholder approach bY questionmg ,,,.,e assumptions indicating the need to create a convergent b d . sO,,, ran meanmg hich is relevant for all . . stakeholder groups (Merrilees , Miller, & Hermgton, W ) . Instead, marketm~ managers are advised to reconsider their branding 2012 strategies to embrace divergent perceptions of various stakeholders, and handle a multi-faceted nature of brand meanings (Merrilees et al., 2012). The conceptual models considering multiple stakeholders in a context of place branding provide additional inputs to the further development of a stakeholder approach and demonstrate its possible applications in branding research. In practice, marketing managers at IKEA facilitate contributions of multiple stakeholders to brand value by establishing a supportive organizational culture and collaborative environment. Contributing activities by different stakeholder groups not only enhance the brand value of IKEA, but also serve as a platform for preventing problems and overcoming potential scandals. For example, when the rumors first arose regarding the use of child labor in manufacturing IKEA products, the corporate brand and the brand values were questioned by customers and other stakeholders. Overall, due to their complex value chains, many multinational companies fail to exercise control over the actions of some actors present within their networked supply and demand chains. Although the IKEA managers devote many resources to developing st rong relationships with trustworthy suppliers, manufacturers, and o~er sub-contractors, the complex value chain limits their control over spec~fic · sed of usm 0 actors and their actions. To protect the brand from bemg accu child labor and to prevent these practices, IKEA has issued a special code · b " (IKEA 2015). of conduct titled "The IKEA Way of Preventing Child La or ' bl· ted to implement I h O iga bn t e event of violations, sub-contractors are co . "ld 1 b 10 · the future. If a su rrective actions and to stop utilizing chi a or co A ill terminate the contract h Ch"ldren ntractor fails to change these practices, IKE w NICEF nd Save t e 1 w·th 1 the company. IKEA collaborates with U a I:)

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in their work on preventing child labor and supporting child ren's rights. Toe company encourages all stakeholders to contribute through their own actions on addressing this important issue, which is beneficial for the successful implementation of branding strategy by IKEA. In a B2B context, the strong IKEA brand is supported by a global network of different partners and organizations, which work closely with marketing managers and assist them in the implementation of branding strategies. For example, the active involvement of local companies and their support made it possible for IKEA to succeed in entering the Russian market, and, later, in establishing a strong competitive position in Eastern Europe. In turn, the commitment of IKEA to its partners in Russia enabled IKEA to change attitudes and behaviors of employees in these companies, and also to develop their applied standards (Tarnovskaya et al., 2008). In general, IKEA has changed the nature of competition in this country and norms of behavior in the whole industry, which was beneficial for society as a whole (Tamovskaya et al., 2008). Theoretical propositions and empirical evidence confirming the importance of a stakeholder approach for successfully developing and implementing branding strategies can be also found in other streams of branding research. For example, branding studies conducted within the streams of research on relationship marketing, international marketing, and internet marketing indicate the need to integrate this approach in theoretical models. In managerial practice, the successful and failed examples related to the implementation of branding strategies confirm the importance of considering multiple stakeholders for marketing managers working with global brands in large established companies, such as IKEA, but also for owners of small businesses aiming to achieve strong positions in the competitive marketplace.

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·Ie the classica l views on developing branding t . • • • • s rateg1es capture the Wh J . reas and activities underlymg a successful bra d' core a . . . . n mg strategy, they do xphcitly consider the impact of, and dynamic rel t· h' ot e a ions 1ps between 11 ·a-erent stakeholders, who in many cases can determine th e outcomes of, d111 .1a nding strategies. Contemporary branding research br d . . . oa ens th'1s view b by demonstrating the vital mputs of various groups of relevant stakeholders to the strategic brand management process. This chapter has illustrated the key assumpt~ons and theor~tical contributions made by previous branding studies, which have applied a stakeholder approach within different research streams. The overview of classical theories and contemporary branding research presented in this chapter includes only some selected works, which were used to exemplify the principal views on developing successful branding strategies. The readers are recommended to explore other contributions in branding research which advance the two approaches addressed in this chapter. In general, the emerging interest in stakeholder marketing and the assumptions highlighted in prior branding studies creates a fruitful foundation for exploring branding phenomena by taking into consideration the multiplicity of stakeholders. To illustrate the relevance of the stakeholder approach for marketing managers, this chapter has presented practical examples demonstrating the successful and unsuccessful outcomes of branding strategies implemented by IKEA. The practical examples showing failed attempts of marketing managers to implement branding strategies have drawn attention to the challenges related to the adoption of the stakeholder approach. The successful practical examples have confirmed lasting positive effects of this approach for different companies, stakeholder groups and society. To conclude, the acknowledgement of diverse groups of stakeholders and their impact on outcomes of branding strategies is critical 1

•

for avoiding the expansion of the new marketing myopia.

Conclusions The changing nature of the modern marketing environment creates additional challenges for companies aiming to build strong brands. Considering this complexity and varying conditions, marketing managers responsible for developing a core vision for a brand cannot be assumed to have sole accountability for the success or failure of branding strategies. 138

Question s for discussion . 1·

Search fior news reports focusing on a services industry and select two examp1es. The chosen examples should demonstrate how one servic es company has failed and another services · company has th succeeded in implementing their branding strategy. Compare ese 139

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two examples and discuss the roles of different stakeholder groups which have affected the outcomes of branding strategies in these particular cases. 2. Select two brands competing in one product category - one well-known global brand and one new brand that has entered the market during the last year. Discuss the challenges and opportunities related to the implementation of the stakeholder approach for developing branding strategies for these two brands. 3. Select one established B2B brand and draw the exemplary business network including the key actors critical for this company. Discuss how each particular actor can contribute to enhancing the brand value of this company. Explain how different stakeholder groups involving the key actors can affect the success of branding strategies implemented by the selected company.

References Aaker, D.A. (1991). Managing Brand Equity: Capitalizing on the Value of a Brand Name. New York: The Free Press. Aaker, D.A. (1996). Building Strong Brands. New York: The Free Press. Aaker, D.A. (2004). Leveraging the corporate brand. California Management Review 46(3): 6-18. Anderson, J.C., Hakansson, H., & Johanson, J. (1994) . Dyadic business relationships within a business network context. Journal of Marketing 58(4): 1-15. de Chernatony, L. (1999). Brand management through narrowing the gap between brand identity and brand reputation. Journal of Marketing Management 15(1-3): 157-179. Eriksson, N. (2012, Oct. 1). Ikea kastar ut kvinnorna. Aftonbladet. http://www. aftonbladet.se!nyheter/article15531597.ab (accessed on Sept. 1, 2015). Freeman, R.E. (1984). Strategic Management: A Stakeholder Approach. Boston: Pitman. Gregory, A. (2007). Involving stakeholders in developing corporate brands: The communication dimension. Journal of Marketing Management 23(1-2): 59-73Gyrd-Jones, R.I. & Kornum, N. (2013). Managing the co-created brand: Value and cultural complementarity in online and offiine m ulti-stakeholder ecosystems.

B RA N DI N G STRAT E GIES · . A STAKEHOLDER APPROACH

. M.J. & Schultz, M. (2010). Toward a theory ofb ran d co-creatio · h· f-latc h, n wit 1mplicafor brand governance. Journal of Brand Ma . nagement 17(8): 590-60 . t10ns 4. . ·ti brand, B., D riessen, .P.H., & Koll, 0 . (2015). Stakehold er mar keting· • Th )-l1 e . eoret1ca 1 c undations and required capabilities. Journal oif the A d ca emy of Marketin 10 g Science 43(4): 4 11 -4 28 · f H. (ed.). (1982). International Marketing and Pu h . re asmg o Industrial . . . Goods: An Interaction Approach. Chichester: Wiley.

u" kansson,

na

Iglesias, O., Ind, N ., & Alfaro, M. (2013). The organic view of the brand: A brand value co-creation model. Journal of Brand Management 20 (8): 670 _688 _ EA (2015 ). Corporate website: www.ikea.com (accessed on Sept . I, 2015 ). IK Interbrand (2014). Best Global Brands. 2014 Rankings. www.bestglobalbrands.

com/2014/rankingl Jones, R. (2005). Finding sources of brand value: Developing a stakeholder model of brand equity. Journal of Brand Management 13(1): 10-32. Kapferer, J.-N. (1992). Strategic Brand Management: New Approaches to Creating and Evaluating Brand Equity. London: Kogan Page. Kapferer, J.-N. (2012). The New Strategic Brand Management: Advanced Insights and Strategic Thinking. (Fifth Ed.). London: Kogan Page. Kavaratzis, M. (2012). From "necessary evil" to necessity: Stakeholders' involvement in place branding. Journal of Place Management and Development 5(1): 7-19. Keller, K.L. (2003). Strategic Brand Management: Building, Measuring and Managing Brand Equity (Second Ed.). Upper Saddle River: Prentice Hall. Keller, K.L. & Lehmann, D.R. (2006). Brands and branding: Research findings and future priorities. Marketing Science 25(6): 740-759. Kotler, P. & Pfoertsch, W. (2007). Being known or being one of many: The need for brand management for business-to-business (B2B) companies. Journal of Business

& Industrial Marketing 22(6): 357-362. Leek, S. & Christodoulides, G. (2011). A literature review and future agenda for B2B branding: Challenges of branding in a B2B context. Industrial 1Warketing

Management 40(6) : 830-837. _ Levitt, T. (1960). Marketing myopia. Harvard Business Review 38(4): 45-56. Merrilees, B., Miller, D., & Herington, c. (2012). Multiple stakeholders and multiple _ city brand meanings. European Journal of Marketing 46(7/8): 1032- 1047-

s.,

& Tahtinen, J. (20n). Network actors' participation m 52 . B2B SME branding. Industrial Marketing Management 4o(7): u44-n Moller, K.K. & Halinen, A. (1999). Business relationships and networks: Managerial 413 - 427· challenge of network era. Industrial Marketing Management 28 (5): . k A C Purnell L & De Colle, p ' ,. armar, B.L., Freeman R.E. Harrison, J.S., Wic s, · ·• d 1y 0 r Management -rt. A ' ' S. (2o10) . Stakeholder theory: The state of the art. we ca err ~

Malaska, M., Saraniemi,

Journal of Business Research 66(9): 1484-1493. Hatch, M.J. & Schultz, M. (2001). Are the strategic stars aligned for your corporate brand? Harvard Business Review 79(2): 128-134.

Annals 4 (1)-· 40 3-445. . b iness-to-business R oberts, J. & Merrilees, B. (2007). Multiple roles of brands m us k 1· 22(6)· 410-417. . . · services. Journal of Business & Industrial Mar e 111g

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CHAPTER 7

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