Corporate Identity and Communications - Creating a Competitive Advantage - Assignment Example

Corporate Identity and Communications - Creating a Competitive Advantage Table of Content Task 1: Page Number Introduction..................................................................................................................................3 Corporate Personality..................................................................................................................3 Corporate Identity.........................................................................................................................4 Corporate Image............................................................................................................................5 Communication.............................................................................................................................6 Conclusion......................................................................................................................................7 Task 2: Introduction.........................................................................................................................................8 Marketing Communications...........................................................................................................9 Marketing Mix to Reach the Channel Members............................................................................11 Conclusion....................................................................................................................................12 References...................................................................................................................................13 Report 1.1.0 Introduction This report will detail the main concepts about corporate identity and explain how the external and the internal audiences are reached effectively using corporate communications. From this perspective, I will attempt to propose the development of integrated marketing communications that are aimed at the multiple stakeholders of the selected organization and are focused upon delivering a consistent brand value. The report begins with the definition and discussion on the concepts of corporate personality, corporate identity and corporate image. It then evaluates how the selected organization uses these to develop corporate communications for its external and internal stakeholders. 1.2.0 Corporate personality Corporate personality determines how the organization is viewed by the stakeholders and what personality traits maybe attributed to it by them. A corporate personality is largely based on how the organization behaves towards its internal and external stakeholders. It is manifested through corporate identity – the concept of the organization that people have in mind and it impacts the development of the corporate image – the perception or image that people formulate in mind when they think about it. Corporate personality is embedded in its aims, visions and culture, which in turn determine what actions it will take towards the internal employees or stakeholders and external customers and other agencies. 1.2.1 Culture Organizational culture is made up of the set of values and norms that the organization’s members share and cherish (Cummings and Worley, 2005). These sets of values dictate the attitudes and behaviour of the organization’s employees towards each other as well as with the external stakeholders of the organization. For example, a strong cultural orientation towards respecting the customers enables LG employees to provide great customer service. The customers, as a result of their interaction with the employees tend to consider LG as a sympathetic and caring organization. Further, culture also incorporates the values and believes, structure and systems and the visible artefacts. Values and Believes Values and believes that the organization holds dictate the acceptable actions and behaviours that the organization or the employees may indulge in. These also dictate the HRM policies, product and market decisions and general attitude towards the society and the environment that the organization displays (Richard, 2003). Corporate culture manifests itself in customer interactions and employee relations and forms the basis of corporate image. Structure and Systems The organizational structure dictates the power and work relationships and guide information and communication flow. As such, organizational structure acts as a framework that contributes to the building of the organizational culture. It dictates how open the communications are, how much information does the organization shares with its employees and how much it trusts them and if the organization believe in participative decision making. Visible Artefacts Artefacts are the visible or the tangible aspects of culture and these may include the rituals and the ceremonies (for example, TGIFs, new hire welcomes, offsite visits etc); symbols and slogans (for example, ‘don’t be evil’ is a slogan internal to Google); stories and narrative (about how the founders started and the ideals that they espoused); and tokens and paraphernalia (having a hall of fame where achievers pictures are displayed). The visible artefacts display the culture and also encourage pride and loyalty among the employees (Richard, 2003). 1.2.2 Visions and missions Organization visions determine where the organization wants to be in the long term and organization mission determines the rationale for the existence of the organization. Both these concepts give out the personality of the organization as they guide the course of actions and the basic mindset and values with which the organization proceeds towards attaining its objectives. A vision determines how the organization’s employees perceive themselves as a part of the organization. For example, in the case of Google, its vision is ‘to organize the worlds’ information to make it universally accessible and useful’. This vision guides the innovative environment that Google provides its employees by giving them flexibility and freedom, providing them with great HR packages and facilitating their merit based progress. The vision dictates the creation of a culture of openness and creativity and guides the employees to acquire responsibility towards the customers, the general public and the environment. 1.3 Corporate Identity According to Cornelissen (2008), corporate identity is the external picture of the organization that is presented to the stakeholders. It enables the stakeholders including the general public and the investors to identify the organization readily and avoid any confusion with other organizations. It also gives a sense of consistency and enables the external audience as well as the internal employees to form their expectations about what the organization stands for and what to expect from it in different circumstances. Corporate identity is the tangible part of corporate personality, and it is developed through the following: Products and Services - it is something that can be developed through the quality of the products and services that the company offers. This is essential as the customers tend to formulate a perception about the company based on their experience with the products or the services. Location or Place of Distribution – Location is also an essential aspect of determining the corporate identity. This is because, the location or ambience where the company outlets operate from, the ambience of the shop or the service delivery space makes a direct impression on the customers and they tend to link the experience with the corporate own image (Baker, 1994). Behavior of the company – Corporate identity is largely formulated on the basis of the first hand interaction of the customers with the organization’s personnel or their complaint resolution departments. How the company treats the employees – is it sensitive and responsive, are the personnel efficient and knowledgeable, does it value its customer’s time and money (Luk and Layton, 2002) – all help the customers in developing a perception about the company and hence contribute to the overall corporate image. Ethics and Environmental Awareness – The customers also form an impression about the organization based on its attitude towards environment and ethical conduct. An organization that undertakes environmental protection seriously, or that is attached with social welfare projects like P&G’s SHIKSH 07 program in India (Peters, Ravindran and Srivastava, 2007), is viewed more favourably by the customers and has a positive corporate identity. The corporate identity is expressed through all the communications – its products and service quality, its distribution centres, employees, its attitude and behaviour towards customers and its attitude and actions towards society and environment. The tangible manifestation of the corporate identity leads to the actual understanding of the corporate personality for the external audience. 1.3.1 Products and Services Organizations’ products or services are the first line of interaction with the company, and the customers largely base their opinion about the company on the experience that they have with the products or with the services (Van den Bosch, 2005). For example, McDonalds is known for its standardization of products and menus and its dedication to provide quality control along with an experience of family outing. The company’s corporate identity is reflected in the actual products, its outlet’s ambience, its employees’ attitude and behaviour towards the customers. In this case, it can be seen that the product and the service are part of the company’s corporate identity. 1.3.2 Communications Corporate identity is reflected in the company’s logos, trademarks, symbols or any other external communication that it makes. These external communications can also be in the form of the employee’s uniforms, their attitudes, advertisements or press releases or any other information that is issue from the organization (Balmer and Gray, 2000). Communications form an important aspect of corporate identity and this can be seen in the case of British Airways problems with changing its logo on the tailfins of its aircrafts. British Airways introduced country specific logos designed by artists for its international flight carriers, and ended up in putting off the internal British public and government. The change of logos immediately communicated that the British Airways is diluting its ‘British’ identity, and the company was almost accused of changing its loyalty from being a British Airlines, with disastrous results. 1.4.0 Corporate image Corporate image is the perception about the company that is held in the minds of the people – both external and internal people. A company’s corporate image is a wide encompassing concept, and it immediately creates linkages in the minds of the people about what the organization does, how it performs on quality or service delivery, what’s its stake on the environment or political agendas of the day, is it ethical or does it care for its customers, employees or shareholders. Corporate image is developed by a variety of ways – including the direct communications like the logo, trademarks, advertisements, public releases, websites of the company, its products , to many but a few. In addition, the image is also created by the trade and industry analysts, non-governmental organizations, labour unions, environmental protection agencies, to many but a few, (Kiriakidou & Millward, 2000). The corporate image is a crucial factor as it determines whether the customers are positively inclined towards the organization or not. An example of how the corporate image can be affected adversely by external agencies is seen in the instance of KFC, an international brand of fried chicken outlet. KFC has been involved in venomous campaigns from environmentalists and animal rights organizations that have accused them of cruelty to animals. On the other hand, Virgin Airlines has developed a positive corporate image for itself as a fun, competent and reliable organization based on its brand ambassador and owner Richard Branson. 1.5.0 Communication with stakeholders The corporate personality, corporate identity and the corporate image have a massive impact on the how the various stakeholders of the company look at it and also guide their behaviour. The following paragraphs reflect on how they impact the communications with the stakeholders. 1.5.1 External Stakeholders The external stakeholders consist of the customers, the competitors, suppliers, government, and the environmental or the social agencies. These people are important to the organization due to various reasons – Customers – Customers are the most essential stakeholders for the company as these are the people who actually buy the products or avail of the services and hence ensure the survivability or the profitability of the organization. Corporate image dictates if the customers consider the products and services of an organization worthwhile to spend their money and time on. Competitors – The market competitors because they set the pace for growth or prices, and also dictate the acceptable standards of quality for the customers. The competitors provide a benchmark for the customers against which the corporate image is judged and its products and services rated. Suppliers – Suppliers are important external stakeholders as their own survival and profitability depends on the paying capacity of the buying organization. The suppliers are important for an organization as they may impact on the company’s products quality or delivery schedules. The organization needs dependable suppliers who are also flexible and accommodating to its need. This is achieved only when high quality suppliers view the corporate image positively and are attracted to do business. Government - The government provides the legal and the regulatory environment within which the business is conducted, and as such it is the custodian of the playing rules. By way of legislation and taxes, the government controls the profitability or the activities of the organization. Organizations with good corporate image may expect to earn a favourable impression from governmental agencies which helps in smoothening formalities. Environmental and the Social agencies – The environmental and the social agencies are committed to ensuring that corporate do not cross the line and abuse the natural or the social habitats. As such they influence the government to formulate legislation and undertake preventive action against companies. An organization with a positive image may expect a favourable attitude from these external agencies. An organization therefore needs to be careful about its corporate personality and try to project itself in a positive light so that the external stakeholders are pleased. It can develop a personality of a corporate that is socially responsible – for example, the Body Shop is viewed as a company that is ethical and sells only natural cosmetics (Habisch, et al, 2005). Corporate identity is how the external stakeholders actually understand the corporate personality, and it is reflected in the products and services, symbols and logo, and marketing communications (Post, 2002). In the case of British Airways, it was the corporate identity that was threatened as the external stakeholders rejected the change in the logo. Next, an image of the company is based on its overall impact in the minds of the stakeholders. When the British Airways changed its logo on the aircrafts, its image of a truly British Airline was shattered which gave its rival, Virgin Airlines and opportunity to add on an image of the UK flag on its aircrafts to projects its own image as a British Airline. 1.5.2 Internal Stakeholders The internal stakeholders or the employees of the organization and the investors and the stockholders of the organization are also equally impacted upon by the corporate personality, identity and image of the company. Employees - Corporate personality, like that of Google as being an ethical and innovative organization, affects the employees own attitudes and behaviours towards the organization as well as towards the customers and partners. Explicit communications to employees about the visions, mission and the culture of the organization ensure that the employees are aware of what code of conduct to adopt. Also, the way organizations treat employees – appraise performance, show fairness in promotions and bonus etc. – give out positive signals to the employees and increase their loyalty and commitment. Management and Owners - Corporate identity enables the stock holders and the investors to understand the image and potential of the organization and to gauge its future progress and growth. The corporate identity can be developed via various types of communications – advertisements and public relations, or through acts that communicate a positive identity – like the organizations’ consistent performance, its social responsibility programs, its recruitment, hiring or training programs Corporate identity and image, enable the employees to feel proud of themselves if they think that the organization has a positive image and reputation. Conclusion The report discussed the concepts of corporate personality, corporate identity and corporate image and also evaluated the various ways in which communications can be developed aimed at creating a positive corporate image for the various stakeholders. Report To: The Marketing Manager From: The Marketing Assistant Date: 9th December 2010 Subject: Marketing Communications Mix 2.1.0 Introduction The current report is prepared by me in response to the request made by my marketing manager regarding the development and detailing of a marketing communications strategy for the new range of products of our company, namely ColorSoft, White Detergent, Nyle Liquid Wash and Pro Max. The report will evaluate and contrast the two basic strategies – namely the pull strategy and the push strategy and then detail the characteristics of marketing communications mix that can be used to reach the channel members. This report is to be distributed among my colleagues in the company, Corona Detergents. Corona Detergents Ltd. is a privately owned company that is about two launch two main brands of washing powders for domestic uses – ColorSoft Detergent Powder (which is aimed at washing for colored clothes) and the White Detergent powder (aimed at the whites and the linens). It will also introduce various smaller brands like the Nyle Liquid, a detergent cum fabric softener that is used for silk and other delicate fabrics, and Pro Max that it promotes as a detergent for the washing machines. The market for domestic detergents is highly saturated with a variety of local as well as multinational organizations serving the market. It is also highly differentiated as the companies offer different brands for different niche markets – like for whites, silks, fabric softening , to many but a few. The products are differentiated with respect to the basic purpose that they intend to serve and also on the basis of add on features of value that can be derived. For example, Brite, a direct competitor for ColorSoft, poses itself as a product that adds life to the clothes plus that leaves a distinct floral scent after each wash. The market is not differentiated and the products are highly substitutable with each other. The prices are nearly same for each niche brand – for example, Color soft and Brite are available in packs of 1 kg for $5 while White Detergent Wash and its direct competitor FenaSurf are priced in the range of $3.5 per Kg pack. The owner companies simply target an existing market and try to provide some value addition in terms of product features or attributes that could attract the customers. Currently, HLL Ltd., a subsidiary if the international marketing organization, Unilever, is holding the leadership position with a 40% market share with respect to the detergents markets total sales. Brilliant Detergents Ltd. falls at the 2nd position with a market share of 30 % followed by Nirma Enterprises which captured 25% of the sales in the year 2009. Brilliant Detergents is a subsidiary of another international organization and uses high technology to facilitate its supply chain and logistics. Nirma Enterprise is a local manufacturer like the Corona Detergents Ltd., but it relies on the vast and extensive network of distributors and retailers that its parent company – Nirma Industries Ltd. has built for its diverse mix of products ranging from consumer FMCG goods to grocery items. The remaining 5% of the market is taken up by small local manufacturers that price the product at low process or sell in very small size packets. 2.2.0 Marketing Communications Corona Detergents is looking for penetrating the market and increasing its marketing share of the overall market by 20% by the first 6 months and then to capture an additional 20%-25% market share by the year end thus placing itself at a leadership position. The focus is therefore placed at developing an appropriate marketing communications mix based on the two basic strategies of pull marketing and push marketing which can be applied to the channel members. This section discusses and contrasts the two strategies, push and pull in the following paragraphs. 2.2.1 Push Strategy A Push strategy is directly aimed at pushing the product through the intermediary wholesalers or the retailers so that they prominently display the product in the stores and enthusiastically sell the product to the end customers. This strategy is useful in the case the product is such that customers do not spend too much time on making the purchase decisions, for example soaps, grocery, stationery, to many but a few. Often the buying behaviour is influenced by the display at the stores, the shelf space or position allotted to the products, the discounts offered or the suggestions made by the retail sales people (Kotler and Keller, 2008). The customers do not go through the elaborate decision making process that occurs in the high involvement products like clothes or consumer durables. Instead, an on the spot decision is made on the bases of how much the store is promoting the product. This in turn comes back to the fact that how much the manufacturer is able to push the channel members in supporting and promoting its products. Communication Flow The flow of the communication is from the manufacturer to the channel members to the customers. Here there is still a need to create awareness about the product in the minds of the end customers through advertisements, but the final decision is made in the store and hence the communications (for example, prominence of display, discounts, offers, to many but a few) within the store are essential. The external communications to the customers are largely in the form of print or television advertising or non-personal advertising (Kotler and Keller, 2006). The personal forms of communications like the email or direct mails, to many but a few. (Or DRIP marketing communications where the messages are periodically delivered to the customers via emails, direct letters, to many but a few.) are not needed for the end customers. However, regular inputs and communications of offers are required to be conveyed to the channel members and hence a newsletter or periodic email is a good way to keep them updated. Flow of goods In the case of push strategy the flow of goods occur from the manufacturers to the channel members to the end customer (Percy, 2008). The manufacturer produces a specific quantity of goods based on a forecast and then tries to push the goods across the distribution channel and to the customers. 2.2.2 Pull strategy Pull strategy is used as a strategy of directly communicating to the customers and influencing them to ask for the product at the retailers. In this case, the customers are highly involved with the products (for example, in the case of cars, designer clothes, TVs, to many but a few) and like to spend time in evaluating the features, benefits and costs of the products before they actually reach the retail outlet. The purchase decision about the brands and about the desired features is already made and the customers then only have to look for the stores or outlets where they can buy the product. The manufacturers in this case have to depend upon exhaustive marketing communications aimed directly at the customers and these require more personal type of communications. Direct mail, sales letters and catalogues, emails, newsletters , to many but a few. can be delivered to the prospective customers with latest information about products, services or benefits. Here, DRIP marketing is essential as the customers can receive timely and periodic reminders and suggestions that influence them evaluating the products that they want to buy (Stratton, 2010). Communication Flow In the case of pull strategy the flow of communications is from the manufacturer to the customers and from the customers to the retailers. This means that the manufacturers directly target the customers with their messages, and the customers then demand the products from the retailers (Kotler and Keller, 2008). However, this does not mean that the manufacturers completely ignore the channel members, but requires keeping the channel partners in the loop, letting them know that the products will fetch large number of customers or large revenues, and helping them with the product display or arrangement if needed. Flow of goods The flow of goods here is largely dictated by the actual demands/or intentions to buy by the customers. The customers can search for products through the websites, search engines or through the dealers or retailers, and based on these demands, the retailers or other channel members send the requisitions to the manufacturer who proceeds to develop the products (Kotler and Keller, 2008). 2.3.0 Marketing Mix to Reach the Channel Members The above sections of the report highlighted the two strategies and also evaluated them in terms of their utility for the manufacturers. However, a marketing communications plan is never made solely on the basis of just one strategy or the other. A mix of the two strategies is used to target both the customers and the channel partners so that a more holistic approach can be utilized. For Corona Enterprise’s objectives of acquiring a leadership position in 2.3.1 Personal Selling Personal selling is a strategy where the representatives of the manufacturer visit the channel members with information about products (price, benefits or value added feature of the product that will attract their end customers, market survey reports that show customers are willing to buy). The representatives also provide details of promotional discounts, wholesaler discounts or attractive buying plans for the channel members (Percy, 2008). In addition, the dealers can be offered prizes for selling a selected amount, and push money or discounts to encourage the dealers to stock and sell the products. 2.3.2 Point of Purchase In addition to the attractive communications to the channel members there is need for the manufacturer to provide support in store in terms of point of purchase communications. These communications may consist of the following: 1. Ensuring that the retailer gives a prominent display in the store where the products are visible, look attractive and are easily reachable for those looking for detergents. 2. There are adequate promotional displays like shelf signs, danglers or pointers extolling the monetary discounts and the products special features. 3. Sales persons dedicated to pushing the in-store sales may communicate the benefits to the end customers directly and influence them. 2.3.3 Advertisements While it is essential to have push communications aimed at the wholesalers, there is also a need to create awareness about the product using the print, online or the electronic media (Kotler and Keller, 2008). As the market is full of similar products, it is essential that the brand name remains at the top of the mind recall, and hence, periodic television or print and radio advertisement can help in maintaining an appropriate recall and recognition of the brand when our customer is in the store. 2.3.4 Sales Promotion Sales promotion consists of all the activities that an organization undertakes in order to sell its products. In addition to the advertisements, personal selling, point of purchase, there are other sales promotion activities like contests, sweepstakes, free samples, gifts, free related merchandize etc (Mitchell, 2005). 2.3.5 Exhibition Exhibitions are a great way to showcase the products and services of the organization and to create publicity. The exhibitions could be accompanied by sales promotional activities as listed above and also include selling the items at discounted rates or with additional benefits. Conclusion The current report contrasted the pull and the push strategy for marketing for the new range of products to be launched by Corona. The report also contained a list of the marketing communications strategies that can be employed for ensuring the success of the products. References Task 1 Baker, J., Grewal, D. and Parasuraman, A. (1994). The influence of the store environment on quality inferences and store image. Journal of the Academy of Marketing Science, 22, 328-39. 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