Virtues and Challenges of Corporate Branding

In its simplest definition, corporate branding is simply the act of a company applying their name to their products. Sometimes this refers to only a single product, or it can refer to a number of products made by the same company in a practice referred to as "family" or "umbrella" branding because it covers more than one item.

There are number of advantages to corporate branding. Not only does it help to familiarize the public with whatever products the business manufactures, but it can also encourage brand loyalty. If a customer likes one product by that company, they may be encouraged to buy other products they sell. However there is a risk that the company may become known overwhelmingly for only one or two products and then encounter difficulty when they try to branch out into other commercial fields. Yet when done effectively corporate branding can help businesses compete with other brands because customers already feel that they know what to expect as opposed to other lesser known brands.

It is especially important to have a logo or other graphic design in order to help the public quickly identify your corporate brand. The brand logo should be easy to recognize, simple to pronounce and be able to attract attention. It should also be something that can be fully protected legally from copying or infringement by competitors. Remember, consumers will pay extra for products with brands they associate with extra quality, so preventing other companies with lower standards from exploiting your corporate brand is essential.

Corporate branding can be transferable outside the company under certain circumstances. Sometimes large retailers will buy products in bulk from other manufacturers and place their brand name on them. This is called "store branding" or "private branding" and is especially effective in the bargain market where price rather than quality is the consumer's main interest. Sometimes a brand owner will sell their logo to other companies that make similar products or for charitable purposes. Such brand licensing can be risky however, since it puts your brand in the hands of parties over whom you may have limited control.

When done right corporate branding can greatly enhance a product's success. If done badly and if the corporate brand becomes tied to scandal or poor quality it can actually destroy a business. That is why most companies hire professionals to promote and protect their corporate branding.