Page 83 - Corporate Communication

Cornelissen-03.qxd 10/9/2004 9:04 AM Page 72

72 Mapping the Field

Table 3.2 Identity structures
Identity structure Definition Example

Monolithic Single all embracing identity (products all Sony, BMW, Virgin, Philips
carry the same corporate name)
Endorsed Businesses and product brands are endorsed General Motors, Kellogg,
or badged with the parent company name Nestlé, Cadbury
Branded Individual businesses or product brands each Procter & Gamble (Ariel,
carry their own name (and are seemingly Ola), Electrolux (Zanussi),
unrelated to each other) Unilever (Dove)

For each organization, according to Albert and Whetten, its particular combination of
identity anchors imbues it with a set of distinctive attributes and values that are core,
30
distinctive and enduring to it. For example,many people would argue that Sony’s dif-
ferentiation in the marketplace is quality consumer products, and it certainly has ability
in that area. But what makes Sony truly unique is its core ideology of ‘miniaturization’,
of producing ever smaller technology.This feature of miniaturization,which is grounded
in a drive for technological innovation, is at the heart of Sony’s organizational identity,
and having been carried through in all products, services and communications (i.e.
Sony’s corporate identity) it has set the company apart from its direct rivals, and is likely
to continue doing so. Equally,Virgin, a company that is active in very different markets –
airlines, mega-stores, cola and mobile phones – has meticulously cultivated the value of
‘challenge’ with all of its employees. Headed by its flamboyant CEO Richard Branson,
Virgin has carried its core identity of challenge through in its distinctive market posi-
tioning of David versus Goliath:‘we are on your side against the fat cats’.This projected
corporate identity has led to the widespread perception that Virgin is a company with
a distinctive personality: innovative, challenging, but fun.

Corporate versus brand identities

The Sony and Virgin examples illustrate the point that a company’s organizational
identity or core ideology can give it a distinctive edge in its positioning within the
marketplace and in its reputation with stakeholders. But, importantly, core values or a
company’s ideology do not always play a part in the identity that an organization crafts
and puts out in the marketplace. Companies such as Unilever and Procter & Gamble
follow a so-called branded identity structure where neither the company’s name nor its
core values figure in the positioning and communications of its products (see Table 3.2).
This is a strategic decision to position and bring products to market each with their own
distinct name and values,instead of badging all products with one and the same corpo-
rate name.This strategy is preferred for organizations where a tightly defined organi-
zational identity is missing, where the parent company therefore also lacks a strong
corporate identity (and reputation!), and where an organization is addressing very
different market segments through the different products in its product portfolio.
The choice of a branded identity structure has served certain companies well,and
will continue to do so. But more companies, it appears, are now moving to endorsed