Corporate Brands With A Heritage

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CORPORATE BRANDS

WITH A HERITAGE

ABSTRACT
This paper articulates a concept of heritage brands,
based primarily on fi eld case research and studies of
practice
A heritage brand is one with a positioning and value
proposition based on its heritage
They describe how to identify the heritage that may
reside in a brand and how to nurture, maintain and
protect it, particularly through the management
mindset of brand stewardship to generate stronger
corporate marketing.

KINDS OF BRANDING ASSOCIATED


TO HERITAGE
Retro branding: Retro branding diff ers from heritage
brands in that it is branding related to a particular
epoch and often with a nostalgic character. Example :
Volkswagens Beetle
Iconic branding: For us, whereas many iconic brands
(culturally dominant and distinctive), such as Nike,
may be regarded as heritage brands, not all iconic
brands necessarily are heritage brands.
Heritage marketing: The budding fi eld of Heritage
Marketing is, on many levels, quite distinct from
what we treat.

HISTORY AND HERITAGE


An historical overview is necessarily grounded in the
past.
Corporate heritage brands embrace three timeframes: the past, the present and the future.
Heritage brands are distinct in that they are about
both history and history in the making.

CORPORATE MARKETING
O v e r the l a st de ca de, a signifi ca nt shi ft of e m pha sis se em s t o
ha ve oc c u rre d in te rm s of bot h m a r ket ing sc hola r sh i p a n d
m a na gem e nt pr a ct ic e, a s m ore a tte ntio n is being pa id t o
o rga niz a ti on s bey on d t he ir produc ts a nd ser v ic es.
Ba lm e r c a l ls t h is a re a c or por a te m a r ket ing, a nd i n tro du c ed a
c or por a te m a r ket in g m i x c onsi sti ng of t e n el em en t s (T he 1 0 Ps of
C or por a te m a r ket in g). Re ce ntly refi ned to 6
T he six ele m en t s a re
c or por a te ide nt it y (c ha r a ct er ) ,
c or por a te co m m u ni c a ti ons (c om m uni ca tions) ,
sta ke holder s (c on stit uenc ie s) ,
c ov e na nt ( co r po r a te br a nd prom ise ),
c or por a te im a ge a n d re puta t ion (c once pt ua l isa t ion )
o rga nisa ti on a l cu l tu re s (c ult ure ).

RESEARCH METHODOLOGY
Searched for brands with heritage and also people
with experience in managing such brands.
In total, we have explored the heritage of more than
20 brands in a multiple-case design. Volvo, IKEA, BBC,
Jaguar, IBM, SEB (Wallen- berg Bank) and Patek
Phillipe are in- depth case studies, while the other
brands such as Bentley have served as illustrations.
Conducted more than 30 one- to-three-hour
interviews with executives experienced in being
stewards of brands with a heritage or heritage
brands.

DEFINING A BRANDS HQ
Here are fi ve major elements that indicate whether
and how much heritage may be present or potentially
found in a brand.

A C OM PAN Y W IT H A TRAC K RE C OR D FOR D E L IVE RI N G


VALUE T O C UST OM E RS AN D N ON C US TOM E R
STAK E H OL D E R S OVE R
(A LO N G) TIM E
Track record means demonstrated performance
proofthat the company over time has lived up to its
values and promises.
Companies such as Johnson & Johnson, Volvo
(continuously synonymous with safety), Coutts and Co
(centuries-old banking expertise) and Nordstrom
(consistently strong service ethic) create and confi rm
expectations about future behavior to diff erent
stakeholder groups.

A COMPANY WITH LONGEVITY


Longevity alone does not necessarily result in a
heritage brand, but it can be a key element.
This can be especially true for large multigenerational family-owned corporations such as S C
Johnson, Ford where the family name is on the door
According to the reading longevity refl ects a
consistent demonstration of other heritage elements
(especially track record and the use of history) under
many CEOs, such that one can believe they are
ingrained in the organization's culture.

A C O M PAN Y W IT H LO N G-H E LD , ART IC U L AT E D C ORE


VALU E S GU ID IN G IT S C O RP O RATE B E H AVIOU R AN D IT S
C H OIC E S RE GAR D IN G P OL ICY AN D AC T ION S
Long-held core values form the base for the
positioning expressed as a promise in external
communication, and internally guide behaviour and
actions as mindsets.
The telecom company LM Ericsson honours three core
values: professionalism, respect and perseverance.
CEO Carl-Henric Svanberg comments upon
perseverance: In 129 years [Ericsson] have never
left a customer, and we have never left a market
(Ericsson internal document, 2006).
When core values fulfi ll the role that is when the
brand strives to live up to, they become an integral
part of the brand identity and, with time, the brands
heritage.

A COMPANY WHOSE PAST IS REFLECTED AND


EXPRESSED IN COMMUNICATIONS ESPECIALLY
VIA THE USE OF SYMBOLS
Monarchies are a prime illustration of an institution that
uses symbols to express its meaning and heritage.
NIKE
For the sport-based company Nike, the Swoosh has
become an internationally recognised symbol that not only
identifi es the company but also signals what it stands for.
JAGUAR
Jaguars two most important symbols
The Growler that sits on the steering wheel
The Leaperon the bonnet.
The big recognition point is the Leaper Jaguar has an
animal-like feeling about it that you cannot get from
straight lines

A COMPANY THAT CONSIDERS ITS


HISTORY IMPORTANT TO ITS
IDENTITY
In some companies, history is important to identity
who and what they are. For heritage brands, the
history infl uences how they operate today, and also
choices for the future.
PATEK PHILLIPE
For the Swiss watch company Patek Philippe, since
1839 is a vital part of its communications.
Heritage is also a key part of the advertising, and on
the website the chronology of the company history is
prominently featured
You never actually own a Patek Philippe. You merely
look after it for the next generation (website and ads).

BENEFITS OF HERITAGE
Heritage can provide a basis for distinctiveness in
positioning, which can generate competitive advantage
E.G translating into higher prices and margins, and
retaining customers to whom heritage is meaningful.
Heritage can add to the brands value proposition with
depth, authenticity, and credibility for the customer/
consumer.
Heritage can help build a special relationship with a
range of non- customer stakeholders
An example is gaining support for the company in diffi cult
times such as a sudden product problem for which the
company was not responsible.

FINDING AND LEVERAGING BRAND


HERITAGE

Unc o ve r the he rit a g e


T he fi rs t p la c e t o lo ok w hen see k ing to unc ov er a b ran d s he rita g e is
t ra c k re c o rd . Be c au se it co ns titu te s d em o nstra te d p e rf o rma nc e of
d e liv er ing va lue t o c o nsum er s/ b usine ss-t o - b usine ss ( B 2B) c us tom e rs,
is c o nsid e r t o b t he mo st sig nifi c a nt el em e nt of b ra nd he rita g e.

Ac tivate the her it ag e


W hic h e lem e nt s o f her it ag e s hould b e p ursue d ? T he y sug g es t th re e
q ue stion s t o he lp f o c us this stag e o f the eff or t:
H o w d oe s t he c o rp o ra t e re ali ty me a sure up in term s o f he rita g e on
ea c h o f the fi v e H Q d ime nsio ns?
W he re is t he c o mp any d iff e rentia te d in term s o f the stre ng th of it s
her itag e ve rs us p r in c ip a l co m p e titor s in c urren t or asp ired
m ar ke tp la c e s
H o w c an t ha t d iff eren t iatio n b e tra ns- la te d m ea ning f ully in t he
m ar ke tp la c e as a p a rt o f the b ra nd s value p rop o si- tio n and
p o sitio ni ng ?

Protect the heritage


The view is that the goal of fi nding and activating a
brands heritage is to extract value from the heritage.
But when extracting threatens to become exploiting,
a company must have an established function to help
protect the heritage.
Brand stewardship serves this purpose
Four principal ways of thinking that characterise how
successful brand stewardship operates regarding
heritage. These together constitute the mindset of
heritage brand stewardship.

A SENSE OF RESPONSIBILITY
An omnipresent sense of responsibility for the brand
is the broadest dimension of stewardship cited in
interviews
Erik Belfrage, long-time personal advisor to the
Wallenberg family: The brand is bigger than you
are? Well, this is true for all of us in this house [fi rm].
The Wallenbergs themselves are the brand.We need
to be very careful handling the brand and our
heritage (March 2006).

LONG-TERM CONTINUITY
When you are assigned to the responsibility for a
brand ... you have become part of a long process. You
treat what has been done before with respect, and
you want to leave an even stronger brand to the
person who comes after you Luic Tassel, Marketing
manager, Procter & Gamble (August 1997).
Beyond continuity alone is the search for continued
improvement. Patek Philippes Director of public
relations Jasmina Steele described this
baton pass aspect of stewardship: Each generation
brings something to the brand. Without handing on
knowledge and tradition we would have to start the
brand all over again (January 2007).

SAFEGUARDING TRUST IN YOUR


BRAND
Maintaining trust is a vital element in stewardship for
heritage brands. This is particularly true when there
is more to lose because trust has been widely cited
as important to the brand.
The BBC heritage includes two trust-related long-held
principles widely communicated on its website:Trust
is the foundation of the BBC and We are
independent, impartial and honest.

ADAPTABILITY
Despite the importance of safeguarding brand
heritage, stewardship does not mean inaction or
discouraging change.
On the contrary, adaptability is a very important
element of stewardship. People with fresh ideas
should have the opportunity to under- stand and
share insights on what the company is all about.
Indeed, sometimes one needs to change in order to
stay the same.
Example
modifying the product or its positioning without
aff ecting the underlying values of the brand meaning.

CONCLUSION
A BRAND WITH A HERITAGE HAS A STORY TO TELL
Brand heritage is an often unrecognized and
frequently under tapped corporate asset.
The process is to uncover, to extract, to protect and
to nurture the value of a companys or organisations
brand heritage.
We believe heritage brand stewardship is an
important vehicle for companies to protect their
heritage and foster a heritage-oriented mindset.
Heritage is and can be a vibrant part of how
companies think about themselves and the values
they off er their stakeholders.

THANK YOU

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