WINNING BIG BY FAILING SMALL:

INTERNAL BRANDINGBy

CHARMAINE CRUZ, MAChief Executive Officer

PROVOCATEUR PR

PRESENTED DURING THE BRAND COUTURE CONGRESSSUNTEC SINGAPORENOVEMBER 18, 2009

WHY INTERNAL BRANDING?

• Al Ries: Cherchez le creneau

• University of Southern California:

– “a decision science really doesn’t exist in the areas of leadership & human capital…”

WHY INTERNAL BRANDING?

• Prahalad: HR is strategy

– “If there are no physical assets and you don’t necessarily have great financial assets to allocate, you only have people assets to allocate. It forces people to be more HR-oriented”

– “Physical assets go on your balance sheet, capital goes on your balance sheet and people do not.”

– Examples: AirAsia, Google

• Neuroleadership

WHAT’S INTERNAL BRANDING?

• Ahmed & Rafiq, 2003

– A coordinating philosophy. It includes internal and external relationships…and examines all activities involved in satisfying customers throughout the internal supply chain…It focuses on customer satisfaction and organizational productivity through constant improvement of employees’ performance and their environment.

WHAT’S INTERNAL BRANDING?

• Merging of Organizational Development and Principles of Branding

WHY IS IT IMPORTANT?

• Harvard Business Review:

– “It’s the best way to help employees make a powerful connection to the products and services you sell”

SIMPLIFIED BRANDING FRAMEWORK

VISION

MISSION

GOALS

(MICRO)STRATEGY

EVALUATION

BRAND

YOUCONSUMER

EMPLOYEEVALUES

VISION

ORGCULTUREBRAND

OVER-ALL OD FRAMEWORK

MISSION

GOALS

(MICRO)STRATEGY

EVALUATION

INTERNAL BRANDING:The Integrative Approach

EMPLOYEEVALUES

VISION

MISSION

GOALS

(MICRO)STRATEGY

EVALUATION

ORGCULTUREBRAND

ORGANIZATIONALCOMMITMENT/

BRAND LOYALTY

YOUCONSUMER

PROCESS OF INTERNALIZING THE BRAND

Simoes & Dibb (2001)

Internalizing the brand involves explaining and selling the brand to employees and sharing with employees the research and strategy behind the presented brand. It involves creative communication of the brand to the employees. It involves training employees in brand-strengthening behaviors, rewarding and celebrating employees whose actions support the brand. Most of all, internalizing the brand involves involving employees in the care and nurturing of the brand.

INTERNAL BRANDING AT WORK

• P&G (AG Lafley, 2008):

– Shifted mission from ‘To meaningfully change the everyday lives of the customers we serve’, to ‘CONSUMER IS BOSS.’ Then asked the employees to take it to heart.

– Re-trained staff, held meetings & trainings for them to take the revised mission to heart.

– Saw change in employee behaviour, shift from personal egos to greater good of consumers.

INTERNAL BRANDING AT WORK

• P&G (AG Lafley, 2008):

– Emphasized the importance of innovation as a driving force in improving not only the bottom line, but the organization as well, thus,…INNOVATION CULTURE.

– Fixed organizational structure and systems

– Focus on Innovation led to increase in sales from USD 39,000,000,000.00 t0 USD

80,000,000,000.00 in a span of 8 years.

INTERNAL BRANDING AT WORK

• Jet Blue (Leberecht, 2004):

– Internal communication and feedback mechanism.

– Service first, brand second

– “Internal branding makes employees want to work for what customers value about their organization…it then leads to a marketing strategy that occurs…on its internal level, as an ongoing change management in which change means the changes in the customers’ attitudes and expectations.

INTERNAL BRANDING AT WORK

• Disney (Charland, 2001):

– “Built its entire employee infrastructure—from hiring to training and hr policies—specifically to support and promote the attributes and messages of its BRAND.”

– Has a brand equity team that monitors exposure of brand and which includes employee service and behaviour.

– “Thus, employees have a clear idea on what the brand stands for”

CONCLUSION

• Internal Branding Leads to greater Brand Loyalty and Organizational Commitment even Increase in Sales

• Turkoz & Akyol, 2008

– A high level of internal marketing leads to a higher level of company performance.

– Internal marketing improves customer satisfaction by creating employee satisfaction, and this increases company performance.

THE END

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