Corporate Branding Efforts Boost Revenues
Is corporate branding an effective tool in driving revenue growth for an organisation? What does corporate branding encompass anyway?
Based on a recent research study conducted among 100 companies listed on Singapore Stock Exchange, corporate branding has a significant link to a company’s financial performance rather than just a mere glossy marketing façade.
This study reveals that organisations who have deployed a 360-degree approach on their corporate branding strategies have gained positive revenue growth rates as opposed to organisations who settled for less strategies or nothing at all.
The study, conducted by StrategiCom, a B2B consulting firm, was aimed at analysing the corporate branding strategies of Singapore-listed companies and whether there is a significant correlation between these strategies and companies’ financial performances. Specifically, the study sought to provide answers to the following questions:
The study polled 100 senior-level executives of Singapore-listed companies from various industries such as agriculture, chemical, commodities trading, construction & real estate, consumer business, education, engineering services, manufacturing, marine & offshore, medical & healthcare, information and communication technology, information technology, precision engineering, printing & publishing, professional services and transport & logistics. These senior-level executives comprise executive chairmen, chief executive officers, managing directors, chief finance officers, directors and general managers.
Corporate branding strategies of Singapore-listed companies, as defined in the study, encompass three key areas: Internal Communications, Relationship Management and Marketing Communications. Findings show that majority of the Singapore-listed companies are keen to carry out all these three areas of corporate branding which was observed to have significantly contributed to their companies’ financial boost.
79.2% of all the companies who undertook a holistic approach on corporate branding have gained consistent revenue hike from financial year 2006 to 2008. These companies have also recorded a higher average annual revenue growth rate as opposed to companies with limited range of corporate branding activities from financial year 2006 to 2009.
The research findings also stressed the fact that an all-rounded approach to corporate branding has financial benefits not only to Singapore-listed companies but for small and medium sized enterprises (SMEs) in general. “For a long time coming, we have not been able to see the direct correlation between brand-building efforts and revenue. The findings in this study now bring clarity to the fact that there are tangible benefits when companies take brand building efforts seriously,” says StrategiCom Chief Executive Officer Dr Wilson Chew.
An all-rounded approach to corporate branding alone, however, may not suffice without proper integration of all the communications platforms specifically targeted to appropriate stakeholders. According to the study, effective corporate branding strategies must start from within the organisation. There must be a constant communication of the organisation’s brand positioning, values and differentiation to all employees who are essentially brand ambassadors of the company to external stakeholders.
The study also suggests the use of online branding platforms such as corporate websites, social networking and Web 2.0 tools, online forums/blogs and employee intranet systems to reach out to a diverse range of stakeholders. These online branding platforms provide a coherent, quick and cost-effective way of communicating to various stakeholders and to the global business arena.
Says Dr Chew, “We now live in a borderless world due to the internet. Companies can leverage on this powerful platform to build a strong online ‘shop-front’ to generate powerful positive perceptions among potential customers their own chosen markets. But the internet, as we know it, can also be a platform of brand destruction. Companies need to understand that it is a part of their business, for good and for ill, whether they like it or not”.
Headquartered in Singapore and Glasgow, StrategiCom is a global B2B brand strategy consulting firm with 11 offices and 110 consultants and researchers around the world. The firm is dedicated to the contribution of knowledge in the field of brand strategy.
The industries it serves include Information Technology, Oil, Gas & Petrochemicals, Commodities Trading, Business Services, Pharmaceutical, Medical & Healthcare, Transport & Logistics, Construction & Real Estate, Precision Engineering, Electronics Manufacturing.
StrategiCom’s consulting specialists, researchers and proprietary methodologies provide the catalyst for companies to transform from traditional businesses into differentiated brands.