Myths Of Branding Pt. 3: Strong Corporate Names Don’t Need Other Brands

By Lexicon Branding

Over the last 30 years, we’ve developed brand names that innovate and inspire for products ranging from cars to corporations. For the next two months, we’ll be releasing weekly posts dealing with branding myths we’ve frequently heard, in an effort to debunk and demystify much of the mystery that surrounds both the process and the strategies of branding.

Myth # 3: If a company has a strong corporate name, it doesn’t need any other brands.

Two weeks ago, Google announced its new umbrella company. This unexpected move – placing Google inside the cocoon of the freshly minted Alphabet – says a lot about the power of strategically creating distinct brands.

Google was originally founded for a fairly specific purpose, but within the past few years, the fiercely innovative tech behemoth has expanded its interests with a range of endeavors. With the creation of this holding company, Google can continue to pursue its core competencies, while new Alphabet sub-brands can explore the other territories into which Google had begun to tiptoe. This allows individual brands to develop focus and create memorable identities, and having the Alphabet backing gives these nascent projects the Google credibility endorsement without diluting the Google brand. There’s also the practical consideration of creating separate brands, from an investor standpoint; it allows stakeholders to see where money is going and to see who is under-performing and who is exceeding expectations.

This synergy of powerful master brands working in conjunction with powerful sub-brands is not a novel concept. Even well-established corporations have allowed themselves to be defined by their products, using their name to bolster brands and then allowing those brands, in return, to support the corporate promise.

The prolific 3M is a great example of a company that leverages its corporate identity to enforce new brands, while using the strength of long-established brands, such as Scotchgard and Scotch Tape, to reinforce the 3M corporate promise.

“I know that other companies have tried to consolidate and have one corporate brand,” says Dean Adams, Director of Corporate Branding at 3M, “but we have a different view. The corporate brand takes on the role of authority and credibility, but consumers want to look underneath the brand,” explains Adams.

For example, Scotchgard makes a special promise about making things look new longer, and the brand’s strength works as tangible evidence, proving 3M brand’s corporate promise. Conversely, one of the company’s newer brands, Command (a removable adhesive strip used to attach items to walls) doesn’t have the same credibility as some of their more established brands.

“We really leverage the 3M brand, using its strength to build the brand Command,” says Adams.

Interestingly, one of 3M’s most recognized and successful brands, Post-it notes, began life much like Command, with a number of names plastered on its packaging. When the product was launched 25 years ago, it carried trademarks for Scotch, 3M, Post-it, Plaid and a few others. But according to Adams, once 3M saw what it had, the other brands were dropped pretty quickly, and the ubiquitous Post-it was born.

It’s natural to strive for one, strong corporate identity. Brand stacking can be tiring for a consumer and branding is often a calculated risk. Branding, however, can empower the corporate identity. Allowing products to stand on their own with unique brand identities can be more digestible for consumers, and their success will inevitably climb back up to the company level, reinforcing a corporate promise and potentially carrying the company to new heights.

Fact: Companies miss many opportunities to create strong corporate assets when they rely on a narrow corporate brand policy.