Strength. Power. Dominance. Familiarity. Acceptance. These are the benefits from a successful corporate brand.

Corporate branding is the process of using the company’s name on its products. By building on the strength of the company’s equity, corporate branding attempts to transpose the corporate brand to create brand recognition to its products. It is otherwise known as family or umbrella branding. Disney, for example, has capitalized on the corporate branding strategy by prominently displaying its company name, Disney, on all its products. Same is true with Apple, McDonalds, Coca-Cola and IBM.

Indeed, we have seen many companies being wildly successful at utilizing corporate branding to market their products. Far more than the unique identity created by an ordinary brand, there is enhanced value in corporate branding. Here are the advantages of corporate branding:

Corporate branding is cost-efficient. It is undeniably more economical to market, advertise and promote just a single brand name that encompasses several products. All you need is one advertising campaign for everything you have on the market. In effect, corporate branding is hitting more than two birds with one stone – definitely less expensive when it comes to economies of scale.

It is also easier for new products to gain market acceptance. Since potential buyers are already familiar with the corporate name, it is easier for them to welcome the new product that your company has come up with. Instead of spending millions of dollars in launching a new product into the market, a strong corporate name can get this job done easily since people are already familiar with the corporate brand.

Of course, capitalizing on a corporate brand has its drawbacks, too. There is the danger that your company’s diverse products will no longer be treated individually. Corporate branding quite clearly lessens product differentiation and reduces the focus on the uniqueness of each product. There is also the unfortunate phenomenon wherein a corporate name has become so synonymous with a product or a category. Examples of those corporate brands that have become so associated with a particular product of a company are Tupperware, Kleenex and Tampax. In fact, Thermos has become so synonymous with those ubiquitous vacuum flask containers that it has practically become a generic word or a common noun and no longer a brand. The most obvious downside to corporate branding is that the brand name has become generic through constant use and association with a product. It could even lose its trademark protection by acquiring a generic meaning among the general public.

To employ corporate branding in your own business, focus on your company in its entirety. Corporate branding is not only limited to the quality of your products. It encompasses your company logo, customer service, employee relationship, advertising and web presence. Anything about your company that the public comes into contact with are part of your corporate brand. Thus, you should take care to put a positive impact on just about everything that your presence touches.

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