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The importance of corporate brand

personality traits to a successful


21st century business
Received (in revised form): 22nd April, 2006

KEVIN LANE KELLER


is the EB Osborn Professor of Marketing at Tuck School of Business, Dartmouth College. Keller has served as brand
confidant to marketers for some of the world’s most successful brands, including Disney, Ford, Intel, Levi Strauss, Nike,
Accenture and Starbucks. He wrote the textbook Strategic Brand Management: Building, Measuring and Managing Brand
Equity and co-authored with Philip Kotler the textbook Marketing Management.

KEITH RICHEY
is an independent consultant working in New York. He holds a joint Master’s degree in Global Media and
Communication from the University of Southern California and the London School of Economics.

Keywords Abstract
corporate branding; Brand personality has been defined as the human characteristics or traits that can be attributed to
corporate image; a brand. Corporate brand personality is a form of brand personality specific to a corporate brand.
corporate values; brand Unlike a product brand personality that typically relates to consumers and user imagery for a
personality; brand specific product brand, a corporate brand personality can be defined in terms of the human
personality traits; characteristics or traits of the employees of the corporation as a whole. A corporate brand
corporate brand personality will reflect the values, words, and actions of all employees of the corporation. A
personality successful 21st century firm must carefully manage its corporate brand personality. The three core
dimensions of corporate brand personality and two traits for each dimension that are crucial for
marketplace success are outlined as Passionate and Compassionate (Heart), Creative and
Disciplined (Mind) and Agile and Collaborative (Body). These traits have an interactive effect such
that the effects of one trait can be enhanced by the existence of another.
Journal of Brand Management (2006) 14, 74–81. doi:10.1057/palgrave.bm.2550055

INTRODUCTION will be true, and the former will impact


As markets continue to mature and the latter.
competition within industries grows What a company is and how it presents
fiercer, companies will not succeed purely itself to the consumer are defined by its
on the basis of what products or services corporate brand personality. Corporate
they offer. Although these core func- brand personality is a form of brand person-
tions of the business are unquestionably ality specific to a corporate brand. Brand
still crucial, other aspects such as personality is understood as the human
company culture and corporate citizen- characteristics or traits that can be attrib-
ship have increased in relative importance uted to a brand.6 The way brand person-
in determining a company’s ability to ality is commonly explored in consumer
Kevin Lane Keller compete.1–3 As a result, the success of a research is by asking questions such as: ‘If
Professor of Marketing,
Tuck School of Business,
21st century business will be defined as the brand were to come alive as a person,
Dartmouth College, Hall
Hanover,
much by who it is as what it does.4,5 what would it be like? What would it do?
NH 03755, USA Historically, the identity of a company Where would it live? What would it wear?
Tel: + 1603 646 0393 resulted solely as the consequence of what Who would it talk to if it went to a party
E-mail: kevin.keller@dartmouth.
edu that company did. Increasingly, the reverse (and what would it talk about)?’

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www.palgrave-journals.com/bm
IMPORTANCE OF CORPORATE BRAND PERSONALITY

Although the concept of brand person- would be reflected in its set of brand person-
ality is relevant to both product brands ality traits. In this way, the corporate brand
and corporate brands, there is an impor- personality is shaped by the corporate values.
tant distinction that can be drawn between A company’s corporate brand personality
the two types of brands that affects how traits as seen by consumers and the general
the brand personality concept should be public should be aligned with the company’s
applied. A corporate brand is distinct from internally espoused values.
a product brand in that a corporate brand Only once a corporation solidifies an
can encompass a much wider range of appropriate set of personality traits that
associations.6 For example, a corporate are consistent with its values and drive
brand may be more likely to invoke asso- employee behaviours can it attain sustain-
ciations based on people and relationships; able success against its competitors. In this
programs and values; and corporate cred- paper, a perspective on corporate brand
ibility; as well as on common products personality traits is offered. Specifically, it
and their shared attributes or benefits. is contended that there are three key sets
Procter & Gamble is an example of a of traits that collectively define corporate
corporate brand that has a more broadly brand personality. Maximising perform-
defined and differently composed set of ance of the organisation on these three
associations than those associations of the sets of traits is therefore crucial for busi-
product brands it owns (eg Tide, Pringles, ness success in the 21st century.
Mr Clean, Pantene, Iams, etc.).
Consequently, corporate brands will
typically have a set of personality traits that CORPORATE BRAND PERSONALITY
is broader and differently composed than TRAITS
the set of personality traits for each product Externally, corporate brands can establish
brand owned. By its nature, a product a number of valuable associations in the
brand is defined by what it does and repre- minds of customers and other key constit-
sents, whereas a corporate brand is defined uents that can help to differentiate the
as much by who it is as what it does. Unlike brand, such as common product attributes,
a product brand personality that typically benefits or attitudes; people and relation-
relates to consumers and user imagery for ships; programmes and values; and corpo-
a specific product brand, a corporate brand rate credibility. 7–10 Regardless of how it
personality can be defined in terms of the is constituted, a corporate image will
human characteristics or traits of the depend on a number of factors, such as
employees of a corporation as a whole. A the products a company makes, the actions
corporate brand personality will therefore it takes, and the manner in which it
reflect the values, words and actions of communicates to consumers.
employees, individually and collectively. A key component of the corporate
Importantly, a successful 21st century firm image is the corporate brand personality.
must carefully manage its corporate brand In the past, brand personality has been
personality. The corporate brand personality studied at the product level. Aaker11 exam-
should reflect the corporate values held by ined the brand personality attributed to 60
the organisation. For example, if environ- US product brands and found they fall into
mental stewardship is one of a company’s five main clusters: (1) sincerity, (2) excite-
core values, then attributes such as ‘respon- ment, (3) competence, (4) sophistication
sible’ and ‘caring (for the environment)’ and (5) ruggedness (see also Aaker et al.,).12

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KELLER AND RICHEY

Creative Collaborative the organisation and influence how the


company will be viewed by others.
Passionate Compassionate
— The ‘heart’ of the company is
comprised of two traits: passionate and
Agile Disciplined
compassionate. The company must be
passionate about serving its customers
“Body” and competing in the market and
“Heart” “Mind” must have compassion for employees,
stakeholders, and members of the
Figure 1 Corporate personality traits.
communities in which it operates.
— The ‘mind’ of the company contains
Product brand personality is strongly two traits: creative and disciplined. A
defined in terms of user imagery—charac- successful company must be creative
teristics of consumers who use or are in its approach to serving its customers
intended to use a brand. Brand personality and winning in the market, while also
is seen as a means for consumers to express adopting a disciplined approach that
their actual or idealised self-image. ensures appropriate and consistent
Corporate brand personality, however, is actions across the organisation.
much more about perceptions of — The ‘body’ of the company is made
employees—both senior management and up of two traits: agile and collaborative.
customer-facing—that make up the The successful company must possess
company as well as the organisation as a the agility to profitably react to changes
whole. Corporate brand personality reflects in the market and also employ a collab-
the values, actions, and words of all orative approach that ensures it works
employees of the corporation. In a busi- well together inside and outside the
ness-to-business setting, corporate brand company toward common goals.
personality is often determined by direct
contact with a wide range of employees. Note that the identification of these three
As a result of the different focus, corporate- core dimensions of corporate brand
level traits transcend individual products personality is broadly consistent with
that the firm sells and the five product earlier academic work that empirically
brand personality dimensions. analyzed approaches to corporate identity
One useful means to characterise research and identified three core dimen-
corporate brand personality dimensions sions of the ‘Corporate Identity Mix:’
is in terms of the tripartite view of Soul, Mind and Voice.14,15
attitudes,13 which consists of affective Next, we discuss these three corporate
(feelings), cognitive (thoughts) and cona- brand personality dimensions in detail.
tive (actions) dimensions. Specifically, we For each of the three dimensions, two
believe that the corporate personality additional sub-dimensions are identified
traits of a successful 21st century business that capture the primary corporate person-
can be grouped into three dimensions ality traits within these dimensions.
related to the ‘heart,’ the ‘mind’ and the
‘body’ (see Figure 1). These dimensions Heart: Passion and Compassion
reflect three distinct sets of personality The ‘heart’ of the organisation involves
traits that can guide employees in passion and compassion. Employees of

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IMPORTANCE OF CORPORATE BRAND PERSONALITY

successful 21st century firms must be energy sources in manufacturing or


passionate about the company, its brands, programs to reduce the pollution produced
and their jobs.16,17 If they do not feel by the finished products themselves. Ben
strongly about what they do, then it will & Jerry’s demonstrated its care for the
be difficult to motivate them to adopt environment by splitting the traditional
other vital corporate personality traits. financial bottom line into a ‘double’
The passion felt by employees for their bottom line, which included a measure-
specific roles in the company must extend ment of the environmental impact of their
to their business, the industry in which it products and processes.
competes, and the products and services Passion provides the internal drive for
it offers customers. It is especially impera- employees, but it must be tempered by a
tive that employees be passionate about concern for others via compassion.18 Nike
what they do for their customers. As is an outstanding example of a company
customers are the core asset of any company, whose passion for athletics and athletes
every employee must have a strong desire has fuelled great marketing success, but is
to assist the company in its commitment compassionate to others in many different
to the customer. For example, GE ensured ways. Nike exhibits compassion to society
that the customer’s interests would remain as a whole through their various commu-
a top priority internally by establishing the nity initiatives such as the NikeGO
‘Voice of the Customer’ process for iden- program to ‘get kids moving and give
tifying what matters most to customers and them a means to do it’ and Zoneparcs in
allocating resources accordingly. the UK to transform playtime at UK
The 21st century firm must care deeply primary schools; environmental initiatives
about all its stakeholders, from its customers such as Nike Considered, which uses
to its employees to the members of the different footwear materials and construc-
communities in which it does business. tion to minimise waste and toxic substances,
Customer care, for example, can be and the Nike Reuse-A-Shoe recycling
demonstrated with customer rewards program; and corporate responsibility
programs, enhanced customer service, or initiatives through best practice methods
by responding to customer needs with in supply chain management and involve-
new products and services. Citibank’s ment with the Global Alliance.
‘Thank You’ rewards program for its
banking customers is a recent example of
a customer care initiative. Employee care Mind: Creativity and Discipline
can be manifested by enhanced benefits, The ‘mind’ of a successful business must
employee recognition programs, or profit be creative but disciplined. In particular,
participation and shareholding schemes 21st century firms must possess creativity
such as Starbucks ‘Bean Stock’ program, to overcome the trade-offs inherent in
which gives every Starbucks employee virtually all aspects of business. In many
shares in the company. Community care ways, the most fundamental challenge
can be demonstrated by corporate social of management is how to reconcile or
responsibility initiatives or cause-related address the many potential tradeoffs that
marketing efforts such as Avon’s Walk for can exist in making marketing and other
Breast Cancer. Additionally, the firm must decisions. Figure 2 lists a number of the
show care for the environment, which can different possible trade-offs or conflicts
be shown through efforts to use clean that can occur in making strategic, tactical,

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KELLER AND RICHEY

• Strategically must be made in the context of


– Retaining customers vs. Acquiring customers constrained — and often fairly limited
– Brand expansion vs. Brand fortification — resources.
– Product performance vs. Brand image
But marketers do not want to neces-
– Points-of-parity vs. Points-of-difference
sarily sub-optimise and emphasise one
dimension or the other. A better approach
• Tactically
– Push vs. Pull
would be to ‘finesse the difference’ and
– Continuity vs. Change achieve synergy between the two dimen-
– Classic vs. Contemporary image sions. Marketing balance in this way could
– Independent vs. Universal image occur by shrewdly reconciling the deci-
sion trade-offs — that is by finessing the
• Financially conflicting dimensions There is virtually
– Short-run vs. Long-run objectives no way to do so, however, without crea-
– Sales-generating vs. Brand building activities tive, imaginative solutions.
– Accountable/Measurable tactics vs. not
For example, creative advertising can be
– Quality maximization vs. Cost minimization
designed that both entertains and
• Organizationally
sells products, as was the case with the
– Global vs. Local
California Milk Processor Board’s Got
– Top-down vs. Bottom-up
Milk? campaign. Brand equity-building
– Customization vs. Standardization promotions that also move product can
– Internal vs. External be devised, as was the case with Procter
& Gamble’s promotion for Ivory soap that
Figure 2 Some marketing trade-offs
reinforced a key attribute of ‘floating’ and
a key benefit of ‘purity’ while also
financial, or organisational decisions for increasing sales. Robust brand positions
a company. can be established that stake out unique
For example, a strategic tradeoff occurs competitive territory by simultaneously
between building product performance creating points-of-party and points-
and crafting an appealing brand image, of-difference, such as was the case with
since these strategies typically require Apple’s ‘The Power to Be Your Best’ ad
different competencies and skills. Finan- campaign in the mid-1980s which recon-
cially, sales-generating and brand-building ciled the seemingly negatively correlated
activities are often in conflict. One of the benefits of ‘easy to use’ (a point of differ-
surest ways to increase sales is to reduce ence) and ‘powerful’ (a point of parity) in
the price, but sustained price reductions the minds of consumers.
may lead to consumer perceptions of the In each of those cases, creativity and
brand as ‘discount’ or ‘cheap,’ which would innovative approaches overcame tough
detract from brand strength. Additionally, marketing dilemmas. Innovations must go
the organisational tradeoff of customisa- beyond solving trade-offs, however, to also
tion versus standardisation reflects the fact address other organisational issues. Firms
that increasingly customers desire prod- must demonstrate the ability to find new
ucts and services that are tailored to their solutions to old problems. For example,
specific needs, but it is typically more Procter & Gamble, consistently among the
cost-efficient for companies to produce a most innovative packaged-goods compa-
standardised version than a customised nies, recently created a more efficient way
one. Clearly, trade-offs are pervasive and to clean persistent bathroom stains with

78 © 2006 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 14, NOS. 1/2, 74–81 SEPTEMBER–NOVEMBER 2006
IMPORTANCE OF CORPORATE BRAND PERSONALITY

the launch of the Mr Clean Magic Eraser, competing in new markets that seem more
which contains a specialty chemical foam attractive for reasons such as that they are
made by BASF. growing faster or have fewer competitors.
A successful firm must also be disci- Then, a few years later, the firm repeats the
plined in its approach to growing its busi- move, shifting again into another new busi-
ness, which in itself at times can present ness or market. The firm affected by the
a trade-off with creativity. While it is ‘grass is greener’ syndrome overlooks the
necessary to encourage and maintain crea- fact that success cannot be sustained by
tivity in the organisation, this creativity continually chasing business trends.
must be focused to a certain degree. A
successful firm must concentrate on lever-
aging its core competencies and main- Body: Agile and Collaborative
taining focus on its core business, rather Finally, the ‘body’ of the firm involves
than pursuing any new business opportu- being agile and collaborative. A successful
nity that arises. This can be best achieved 21st century firm must possess the agility
by setting appropriate priorities that to capture and deliver value to consumers
provide clear direction to all members of in the face of challenging market dynamics.
the organisation as to what its business Many changes have occurred in the
goals are and how they can be met. marketing environment in recent years.
If firms are to compete successfully in Undoubtedly, the marketing environment
today’s rapidly changing marketplace, they will continue to evolve and change, often
must transcend the current status quo and in very significant ways, in the coming
find creative ways to systematically deliver years. Shifts in consumer behaviour,
differentiated and unexpected value to competitive strategies, government regu-
consumers. For example, 3M encourages a lations or other aspects of the marketing
culture of innovation by requiring its scien- environment can profoundly affect the
tists to spend 15 per cent of their time fortunes of a firm. Besides these external
pursuing research that interests them outside forces, the firm itself may engage in a
their specific role in the company. As a variety of activities and changes in stra-
result, 3M consistently delivers innovative, tegic focus or direction that may neces-
creative, and, importantly, differentiated sitate minor or major adjustments in the
products that bring value to consumers. way that its brands are being marketed.
With the ‘15per cent rule,’ the company Consequently, effective brand manage-
manages the creativity of its employees so ment requires proactive strategies designed
that this creativity augments its core busi- to at least maintain—if not actually
ness, rather than distracting from it. enhance—brand equity in the face of all of
To further maintain discipline, the 21st these different forces.The firm must be able
century firm must resist following the latest to move forward quickly to take advantage
management fads, since frequently reorgan- of new opportunities in the market. Google
ising or restructuring a business to follow is currently capitalising on its agility to move
untested management philosophies can be rapidly into new markets such as IP
distracting and even damaging. Similarly, the telephony, wireless internet access, and video
firm must avoid the ‘grass is greener’ content provision as well as challenging
syndrome, in which the firm de-emphasises entrenched competitors in established
some existing businesses and markets in markets such as e-commerce, publishing,
favour of building new businesses and/or desktop software and classified ads.

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KELLER AND RICHEY

The 21st century firm must also adapt the financial community (shareholders,
its business model to changing conditions. investors, analysts). Relationship marketing
As noted above, it is important to apply builds strong economic, logistical and social
the appropriate level of discipline to ensure ties among all these relevant parties.
that these changes do not dilute the Successful relationship marketing offers
strength of its core business. To be truly the potential of smoother operations and
successful in the long term, the 21st century superior customer solutions. The ultimate
firm must be proactive, rather than reactive. outcome of relationship marketing is the
Being proactive requires that a firm antic- building of a marketing network—the
ipate what changes will be necessary in the company and all its supporting constituents
future and proactively address them. Inno- and stakeholders with whom it has
vation and relevance in all that it does will built mutually beneficial relationships.19
require much agility by the firm as it Marketing networks are invaluable company
ensures that it continually moves forward, assets. Increasingly, competition is not
but does so in the right direction. between companies but between marketing
Finally, the successful 21st century firm networks.Winning companies will be those
must encourage collaboration among its that build better net-works, in part through
employees and seek a closely collaborative a strong spirit of collaboration.
atmosphere with its business partners. Developing strong relationships requires
Increasingly, a key goal of marketing is to understanding the capabilities and
develop deep, enduring relationships with resources of different groups, as well as
all people or organisations that could their needs, goals and desires. Each party
directly or indirectly affect the success of must be treated differently. Rich, multi-
the firm’s marketing activities. faceted relationships with key constituents
Internally, the firm must foster a culture create the foundation for a mutually bene-
of inter-departmental teamwork. Only ficial arrangement for both parties.
when employees willingly seek opportu-
nities to collaborate can a firm develop CONCLUSIONS
the agility to overcome business challenges.
Externally, the firm must develop a network A whole greater than the sum of the
of partners that offer complementary assets parts
and competencies, have common corpo- A corporate brand personality is defined
rate values and beliefs, and jointly create in terms of three main dimensions, each of
synergistic effects. For example, Wal-Mart which can be defined in terms of two key
invites close collaboration from its biggest traits: the ‘heart’ (passionate and compas-
suppliers by requiring them to perma- sionate), the ‘mind’ (creative and disciplined)
nently staff teams at the retail giant’s and the ‘body’ (agile and collaborative).
Bentonville, Arkansas headquarters. Importantly, the effects of these three pairs
Successful collaborations result from of corporate personality traits are enhanced
relationship marketing that cultivates by each other. In other words, corporate
the right kind of relationships with the personality traits can have a multiplicative
right constituent groups. Four key constit- or interactive effect, not an additive effect.
uents for marketing are customers, For example, passion can be the engine
employees, marketing partners (channels, for creativity. Employees who live the
suppliers, distributors, dealers, university brand and are close to their customers are
scientists, agencies, etc.); and members of more likely to energetically pursue new

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IMPORTANCE OF CORPORATE BRAND PERSONALITY

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