Corporate brand value
James R. Gregory
Coca-Cola and Colgate-Palmolive reap huge value from their corporate branding. P&G and others are starting to realise the opportunity.
Consumer packaged goods companies like Unilever, Procter & Gamble and Nestlé have struggled with the idea of full-fledged support of their corporate brands. The main focus of their branding efforts should be where it is - on their product brands. I understand and support that focus but, on the other hand, there is tremendous value to marketing the corporate brand and it doesn't have to take away from product branding. Why then do some consumer companies fumble rather than capitalise on corporate branding?
The connection between corporate image and market capitalisation is evident from empirical research conducted by academics, consultants, and branding firms, and is used daily by enlightened corporations. Unfortunately, due to GAAP (Generally Accepted Accounting Principles) accounting standards, the connection remains ‘virtual’ by finance, rather than being universally recognised as a driving force for corporate growth. Measuring and valuing brands has advanced by light years over the past two decades, but the accounting profession has been slow to recognise the huge, and growing, value of the intangible asset known as the ‘corporate brand’.