Corporate Branding Strategy

Abstract:

Almost all the Big Corporate Houses adopt Corporate Branding Strategy in order to gain profit by generating economies of scale. But, the fact is that, though the corporate house benefits from this strategy in case of launching a new product, this Corporate Branding Strategy has negative effects too.

Corporate Branding Strategy refers to the Branding Strategy of the big corporate houses. Under Corporate Branding Strategy, the organizations use their corporate name in the Brand Name of all of their products. All the big corporate houses like Pepsi, Coca-Cola, IBM follow this Branding Strategy.

Benefits of Corporate Branding Strategy

The greatest benefit of Corporate Branding Strategy is that it can generate economies of scale. As the Corporate House uses its name in the Brand Name of all its products, one single advertising campaign can promote all of its products. This single campaigning facility in turn generates economies of scale.

The company also benefits from the Corporate Branding Strategy when it prepares to launch a new product. The new product of the big corporate house naturally develop an acceptance range as the corporate brand name already has a strong presence in the market.

Disadvantages of Corporate Branding Strategy

The main disadvantage of this Corporate Branding Strategy is that, when all the products having the same corporate brand name are promoted through single advertisement, the unique characteristics of every single products are not properly highlighted.
It has also been observed that, sometimes corporate brand names become synonymous with a specific product category. People even refer to a same category product of a different company by the popular corporate house product name.

Here it can be mentioned that the Corporate Branding Strategy is not only adopted by new companies but also by the older ones. When old companies try to sweep their past commercial record and strive hard to acquire market share in a completely new way, they adopt Corporate Branding Strategy. This phenomenon is generally termed as Rebranding. In the recent past, when McDonald's went through rebranding it followed Corporate Branding Strategy.