Corporate Brands with a Heritage 2007 PDF

Special Issue Papers Corporate brands with a heritage Received (in revised form): 29th May, 2007 MATS URDE is assistant professor and Head of the Brand Man...

Special Issue Papers Corporate brands with a heritage Received (in revised form): 29th May, 2007 MATS URDE is assistant professor and Head of the Brand Management Research Programme at Lund University, Sweden. His published work has appeared in leading journals such as European Journal of Marketing, Journal of Marketing Management and in the Journal of Brand Management on ‘Monarchies as Corporate Brands’ (with Balmer and Greyser, 2006). He is the author of Brandorientation (1997) on corporate branding and corporate values foundations with a focus on core value-based brand building. He has served as an advisor on brands strategy and corporate brand management to Volvo, Ericsson, Akzo Nobel and The Swedish National Symphony Orchestra among others. He has been a member of the Electrolux Brand Award jury for eight years. STEPHEN A. GREYSER is the Richard P. Chapman Professor (Marketing/Communications) Emeritus at Harvard Business School, where he specialises in brand marketing, advertising/corporate communications and sports management. He is former Editorial Board Chairman of the Harvard Business Review. For eight years, he was also Executive Director of the Marketing Science Institute. He is responsible for 16 books and many articles, and over 300 published case studies. Recently, he co-authored Revealing the Corporation (Routledge, 2003) and several publications on Monarchies as corporate brands. He also wrote ‘Insights into Brand Crises’ (2007). JOHN M.T. BALMER is Professor of Corporate Marketing at Brunel University in London, and formerly Professor of Corporate Brand/Identity Management at Bradford. His published work has appeared in leading journals such as California Management Review, Journal of Business Ethics, Long Range Planning,The British Journal of Management and European Journal of Marketing. He is co-author (with Stephen A. Greyser) of Revealing the Corporation (Routledge, 2003) on corporate identity, image, reputation and corporate branding, an article on corporate marketing, European Journal of Marketing (2006), and ‘The Crown as a corporate brand: Insights from Monarchies’ (with Greyser and Urde) Journal of Brand Management (2006). He is the founder-director of the International Corporate Identity Group (1994), launched at the House of Lords in 1995. He has served as an advisor on corporate brand/identity management for the BBC, the WPP Group and Mercedes Benz among others. Keywords Abstract heritage brand; This paper articulates a concept of ‘heritage brands’, based primarily on field case research and studies brand stewardship; of practice. We define brand heritage as a dimension of a brand’s identity found in its track record, corporate marketing; longevity, core values, use of symbols and particularly in an organisational belief that its history is monarchies; heritage important. A heritage brand is one with a positioning and value proposition based on its heritage. quotient; core values The work grew from our lengthy study of monarchies as corporate brands. We describe how to identify the heritage that may reside in a brand and how to nurture, maintain and protect it, particularly through the management mindset of brand stewardship to generate stronger corporate marketing. Journal of Brand Management (2007) 15, 4–19. doi:10.1057/palgrave.bm.2550106; published online 27 July 2007 BACKGROUND We first recognised the value of heritage The purpose of this conceptual paper based when we studied monarchies as corporate Mats Urde Lund University, on case studies is to explore, investigate and brands.1,2 This case study led us to seek School of Economics and Management define heritage as a part of corporate brand and study other brand situations where Department of Business Administration identity. Our goals are to uncover heritage heritage seems to play an important role P.O. Box 7080, SE-220 07 Lund Sweden and to understand better how to activate, and adds value. Tel: + 46 (0) 42 343444 nurture and protect heritage in the process By brand heritage, we mean a dimension E-mail: mats.urde@ brandorientation.se of corporate branding. of a brand’s identity found in its track 4 © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 15, NO. 1, 4–19 SEPTEMBER 2007 www.palgrave-journals.com/bm  CORPORATE BRANDS WITH A HERITAGE record, longevity, core values, use of and the marketing of heritage (see below). symbols and particularly in an organisa- From a strategic perspective, it has been tional belief that its history is important. noted that when a company’s brand is A heritage brand is one with a posi- infused with a heritage, this can provide tioning and a value proposition based on leverage for that brand, especially in global its heritage. For example, in the watch markets.5 Corporations have also realised industry, both Patek Philippe and Tag that encouraging consumers to collect Heuer are brands with heritage.We would, artefacts associated with brand heritage however, consider Patek Philippe to be a can foster consumer loyalty.6 heritage brand because it has chosen to Let us briefly examine three kinds of emphasise its history as a key component branding from the literature associated of its brand identity and positioning. Tag with heritage, and contrast them with our Heuer does not; thus, we see it as a brand approach: with a heritage, but not a heritage brand. Retro branding: Retro branding differs To make heritage part of a brand’s value from heritage brands in that it is branding proposition is a strategic decision. related to a particular epoch and often We believe ‘heritage brands’ constitute with a nostalgic character,7 such as a distinct branding category, with its Volkswagen’s New Beetle. We think that own set of defining criteria and a specific brand heritage draws from and clarifies approach for effective management and the past and also makes it relevant for leadership. Below we describe five contemporary contexts and purposes.This elements that define what we term a view reflects Lowenthal’s.8 brand’s heritage quotient (HQ). We also Iconic branding: For us, whereas many present our view of the brand stewardship iconic brands (culturally dominant and necessary to manage brands with a heri- distinctive), such as Nike, may be regarded tage. We place our work in the context of as heritage brands, not all iconic brands the nascent area of corporate marketing; necessarily are heritage brands. The work our primary focus is on corporate heritage of Holt9 has been particularly influential brands, with additional reference to in the area of iconic brands. Holt cites the product/service branding. importance of mythmaking in the process of transforming a brand into an iconic brand. To us, mythmaking is relevant but HERITAGE AND LITERATURE not vital for heritage branding, although We believe our approach to brand heritage it can be a component of building and is one way to strengthen corporate-level sustaining a heritage brand. marketing for those organisations where Heritage marketing: The budding field of heritage applies. For us, heritage is an ‘Heritage Marketing’10 is, on many levels, integrated component of the character of quite distinct from what we treat. This liter- such brands. ature is primarily concerned with tourism and the heritage industry.11,12 As such (typi- cally but not totally) the area focuses on Heritage and branding brands that are aligned to a particular era, The importance of different facets of for example, Boston’s Freedom Trail. Such heritage now enjoys some prominence a focus is retrospective, whereas ours (in within the marketing literature. Examples relation to heritage brands) is both forward- are consumer consumption of heritage3,4 looking and retrospective. © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 15, NO.1, 4–19 2007 5  URDE, GREYSER AND BALMER Overall, compared to these ideas, our make a convincing case regarding the sali- view of heritage is simultaneously more ence of heritage while noting that what expansive and more focused. Our perspec- is often perceived to be of considerable tive is neither limited to a genre of organ- antiquity may have a less illustrious prov- isations (such as those with longevity or enance and sometimes may be bogus. In nostalgia as a major characteristic, eg, a similar vein, the influential corporate heritage marketing), nor to a single kind identity consultant and writer Wally of brand positioning (retro), nor to only Olins15 provided an insightful overview the most culturally dominant brands of how tradition can be invented by (iconic). We concentrate on an idea corporations as well as by nation states.23 (heritage) that can reside in many hetero- Management scholars have also noted the geneous organisations, but must be genre’s importance, since Business History harnessed and employed as a strategic is an important stream of research and resource13 in order to generate value as scholarship. In terms of corporate identity, part of corporate marketing. of note are Balmer’s17 retrospective of the historical development of the BBC, the study of the British Building Society Heritage and history industry,24 and Phillips and Greyser’s16 On the surface, the difference between study of Bank One. This work flags the heritage and history may seem minor. As importance of historical roots of corpora- Lowenthal8 cogently articulated, history, tions and industries and advances the view however, explores and explains what is that in examining their past organisations may often an opaque past; in contrast, heritage discover their future.17 Melewar18 asserted clarifies and makes the past relevant for that history was a key corporate identity contemporary contexts and purposes. We trait. Significantly, Holt25 argued the think much the same applies to brands same in relation to brands by stating that when viewed through the lens of heritage our comprehension of them is in part in contrast to that of history. That is, dependent upon a cultural historian’s heritage helps make a brand relevant to understanding of ideology. the present and prospectively the future. Regarding organisational identity, a Our analysis of the literature confirmed broadly parallel perspective has been the importance of adopting an historical adopted by Carroll19 in his useful over- perspective.We are sensitive to the fact that view. Other relevant literature includes Business History represents an important Ooi21 who examined the strategic impor- stream of scholarship within the canon of tance of business history and noted the management literature, as typified by the efficacy of melding stakeholders’ emotions, Journal of Business History. We call parti- experiences and thoughts by the corpora- cular attention to the work of Hobswawn tion in communicating an organisation’s and Ranger,14 Olins,15 Phillips and Greyser,16 history. Research undertaken by Gioia Balmer17and Melewar18 within the broad et al.20 concluded that a prerequisite for context of corporate identity. We also note effective organisational change was due contributions to the related concept of regard for an organisation’s historical roots; organisational identity by Carroll,19 Gioia they noted that history had a material et al.,20 Ooi,21 and Parker.22 effect on organisational adaptation and Of special pertinence is the work of change. Finally, in an empirical study of historians Hobswawn and Ranger,14 who a small English-based financial services 6 © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 15, NO. 1, 4–19 SEPTEMBER 2007  CORPORATE BRANDS WITH A HERITAGE institution, Parker22 noted how managers Balmer’s28 most recent corporate marshalled history in a very selective marketing mix has been refined to include way as a means of supporting the institu- six elements (The 6Cs of Corporate tion’s future directions; this revealed marketing) and, importantly in the context history as resource that was malleable of this paper, gives prominence to corpo- and was subject to manipulation and rate brands as a key element of the mix. reinterpretation. The six elements are corporate identity A key difference between the perspec- (character), corporate communications tives of history and heritage in corporate (communications), stakeholders (consti- branding contexts relates to the temporal tuencies), covenant (corporate brand dimension. An historical overview is promise), corporate image and reputation necessarily grounded in the past. Corpo- (conceptualisation) and organisational rate heritage brands embrace three time- cultures (culture). frames: the past, the present and the future. We consider corporate marketing to Consequently, in articulating the essence be an organisation-wide philosophy. It of a heritage brand, we advance the view also should accord importance to the cor- that a brand’s distinctive, and historical, porate brand promise/covenant.2,26,30,31 traits have been invested with meaning Further, we think corporate brand manage- and value that afford benefits to brand ment is tightly coupled to corporate communities of today and tomorrow just marketing, in that corporate brand manage- as in previous decades or centuries. As ment requires a concern with areas of such, the brand’s traditions have a salience communications, identity, constituencies for the present: value is still being invested and so on. As such, the corporate marke- in the brand as well as extracted from it. ting perspective may have utility in our Heritage brands are distinct in that they broader consideration of corporate are about both history and history in the heritage brands. making. METHODOLOGY Pertinence to corporate marketing An important source of our views on Over the last decade, a significant shift of heritage brands was our study on monar- emphasis seems to have occurred in terms chies as corporate brands.1,32 We found of both marketing scholarship and monarchies to be heavily symbolic in their management practice, as more attention is communications, to employ history as an being paid to organisations beyond their important part of their identity and (obvi- products and services.2 (Space does not ously) to have significant institutional permit a broad review here; we have longevity. A number of parallels between focused on our own published research.) branding for constitutional monarchies This development has led Balmer26–28and, and for corporations are explained in the more recently, Balmer and Greyser2,29 to accompanying box, ‘Royal heritage: Why advance the view that this represents a monarchies are corporate brands’. new strand of marketing thought and From a methodological point of view, practice. Balmer26 calls this area corporate our case study on monarchies increased marketing, and introduced a corporate our theoretical sensitivity,33 and inspired marketing mix consisting of ten elements and guided us to the concept and pheno- (The 10Ps of Corporate marketing). menon of brand heritage. We sought to © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 15, NO.1, 4–19 2007 7  URDE, GREYSER AND BALMER explore heritage as part of a brand’s past, others. We searched for brands with present and future identity. heritage and also people with experience The methodological challenge was to in managing such brands. In total, we have find a way to identify and examine brands explored the heritage of more than 20 with a heritage and how they are managed. brands in a multiple-case design. Volvo, We decided to use case study research IKEA, BBC, Jaguar, IBM, SEB (Wallen- following a long tradition34,36 at the berg Bank) and Patek Phillipe are in- universities of two of the authors (Lund depth case studies, while the other brands and Harvard). Case study research allows such as Bentley have served as illustrations. the investigation of complex, fuzzy and We have conducted more than 30 one- dynamic phenomena where context is to-three-hour interviews with executives essential, and there is no limit to the experienced in being stewards of brands number of variables and links.36 It further with a heritage or heritage brands. allows one to be inductive and not be We have tried to explore as many forced by received theory, instead letting aspects of heritage brands and their reality emerge from the empirical data, management as possible following the thus generating new theory. The most logic of the indicator–concept model.37 consistent application of this strategy is The selection of brands to investigate and grounded theory where we also found people to interview has to a large extent insight, but we did not do a full-fledged been guided by theoretical sampling,38 grounded theory study.33,37,38 that is, sampling on the basis of concepts A guiding strategy in selecting methods and routes that have proven relevance for and research techniques is to get the best the evolving theory. possible access to the phenomenon in The themes and concepts in our study focus, thus enhancing the validity and have emerged through a process of a relevance of the study.19 To access the continuous interaction between the phenomenon of heritage brands, we had empirical observations from our fieldwork the prior experience of the monarchy (level 1) and the emerging theoretical study and its unusual personal access to concepts (level 2).40,41 For example, the key figures who (in our terms) defined five elements of the HQ framework and and managed the brand. In alignment key concepts of brand stewardship have with this, we applied a multi-method emerged42 based upon our fieldwork over approach, which is common in qualitative two years. Systematically we have explored research today.36,39 In addition to inter- links between different indicators and views and grounded theory, we drew on core concepts in our approach to heritage ethnography with observation, and the brands. study of literature, archival records, The degree of generalisation in the company internal documents, advertising results of a primarily inductive, theory- (over time), as well as our own profes- generating study such as ours is related to sional experience with other categories of the concepts emerging from the fieldwork. brands. It is all within the spirit of trian- It is important to note that the individual gulation,39 using multiple sources of cases are specific or substantive,43 while evidence to offset possible bias caused by the derived concept, grounded in empi- a specific method and technique. rical data, may be general or universal. We followed several of the case study To try to verify our findings, we research strategies laid out by Yin40 and have asked a number of people we have 8 © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 15, NO. 1, 4–19 SEPTEMBER 2007  CORPORATE BRANDS WITH A HERITAGE interviewed ‘Do the framework and Track Record Longevity concepts we have described ring true with your brand experiences?’. This is a way to Brand evaluate and test the ‘fit’ and ‘work’ 33,30 Stewardship History aspects of our findings and concepts. important to Core Values Identity Use of Symbols DEFINING A BRAND’S HQ Figure 1 The elements of brand heritage All brands have a history.44,45 Some brands have a heritage. And a few have made their heritage a valuable corporate asset. For mindset for nurturing, maintaining and some that value remains hidden. Finding protecting brand heritage. (in the sense of understanding) the heritage in a brand may well be a path to A company with a track record for unlocking its value for the company by delivering value to customers and enabling the brand’s past and present to noncustomer stakeholders over strengthen its future. (a long) time Let us note that it is not necessary to By track record, we mean demonstrated be a heritage brand for a company to be performance—proof—that the company successful. By the same token, being over time has lived up to its values and successful does not mean that a company promises.30,31 Companies such as Johnson necessarily is a heritage brand. However, & Johnson (supported by its organisationally when heritage is part of a company’s powerful Credo), Volvo (continuously brand identity, it can indeed be synonymous with safety), Coutts and Co valuable. (centuries-old banking expertise) and We believe that a heritage brand can Nordstrom (consistently strong service be recognised by the presence of certain ethic) create and confirm expectations about characteristics. Based on our case studies future behaviour to different stakeholder of many companies and industries, the groups. Thus, accumulated credibility and more one sees certain characteristics trust are typically part of a heritage brand. around and in a brand, the more likely it The importance of this element of heri- is that brand has a high HQ. tage as a foundation of how an organisation Here are five major elements that indi- sees itself today and for the future was cate whether and how much heritage may explained to us by Volvo Cars former be present or potentially found in a brand. CEO Hans-Olov Olsson: The more there are and the more powerful their presence, the higher the brand’s HQ. ‘Heritage provides a legacy that offers us a timeless relationship to the market/customers, What we present here is a conceptual society partners, and employees. Over time framework for HQ. With further research people recognise and expect that the company and/or proprietary company information will continue to deliver on these commit- such as stakeholder surveys, we think HQ ments (safety, quality, environment, design). could be developed further, ultimately It sets Volvo apart from other car companies into an index. In Figure 1, these elements —it is hard [for others] to copy and be surround ‘brand stewardship’, which we trusted. Our brand is the history and the consider to be an essential management future’ (April 2005). © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 15, NO.1, 4–19 2007 9  URDE, GREYSER AND BALMER A company with longevity In a very different realm, dedication is Longevity alone does not necessarily a long-held core value of monarchies, result in a heritage brand, but it can be a particularly constitutional monarchies. key element. This can be especially true Queen Elizabeth II, on the 25th anniver- for large multi-generational family-owned sary of becoming Queen, reaffirmed a corporations such as S C Johnson, Ford pledge she had made many years before: and Anheuser Busch where ‘the family ‘When I was 21, I pledged my life to the name is on the door’. Although most service of our people, and I ask for God’s heritage brands have been operating for help to make good my vow. Although that many years, we have found it is possible vow was made in my salad days when for a company to qualify as a heritage I was green in judgement, I do not regret brand within a generation or two. or retract one word of it’ (Shawcross, 2002, Longevity in our context is difficult to p. 19).47 measure precisely. For our purposes: we Long-held core values form the base think ‘longevity’ reflects a consistent for the positioning expressed as a promise demonstration of other heritage elements or covenant in external communication, (especially track record and the use of and internally guide behaviour and actions history) under many CEOs, such that one as mindsets.48,31 When core values fulfill can believe they are ingrained in the the role as tenets49,50 that the brand strives organisation’s culture. to live up to, they become an integral part LMVH Group CEO Bernard Arnault of the brand identity and, with time, the considers timelessness to be an important brand’s heritage. brand attribute. But, he explains: ‘The problem is that the quality of timelessness takes years to develop, even decades. You A company whose past is reflected cannot just decree it. A brand has to pay its and expressed in communications dues—it has to come to stand for something especially via the use of symbols in the eyes of the world’ (Harvard Business Monarchies are a prime illustration of Review, October 2001, p. 122).46 an institution that uses symbols to express its meaning and heritage. These include the monarch’s motto as well as the Crown A company with long-held, and the uniformed royal guard. For the articulated core values guiding its sport-based company Nike, the ‘Swoosh’ corporate behaviour and its choices has become an internationally recognised regarding policy and actions symbol that not only identifies the For some companies, continuity and company but also signals what it stands consistency of core values underlie and help for. define corporate strategy and become part Jaguar’s two most important symbols of the heritage. The telecom company were described to us by Simon Wilson, LM Ericsson honours three core values: head of market research, who characterises professionalism, respect and perseverance. Jaguar as ‘beautiful fast cars’: ‘The “Leaper” CEO Carl-Henric Svanberg comments is the big symbol of Jaguar. There are two upon perseverance: ‘In 129 years [Ericsson] symbols, the “Growler”—that sits on the have never left a customer, and we have steering wheel—and the Leaper—on never left a market’ (Ericsson internal the bonnet. The big recognition point is document, 2006). the “Leaper”. … Jaguar has an animal-like 10 © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 15, NO. 1, 4–19 SEPTEMBER 2007  CORPORATE BRANDS WITH A HERITAGE feeling about it that you cannot get from incorporates a value proposition based on straight lines’ ( January 2006). heritage. Meaningful use of symbols in commu- By way of review, the more these five nication is another dimension of heritage elements are present in a brand the higher brands. We find such symbols in the form its HQ will be. Illustratively, in higher HQ of logos and design ‘looks’ (eg, Tiffany companies heritage is important to the Blue, Bang & Olufsen design, Burberry organisation internally and is also perceived pattern). For brands with high HQ, these externally to be relevant and valuable to symbols sometimes achieve an identity of their customers and noncustomer stake- their own and stand for the brand—the holders. five rings of the Olympics, the Mercedes star, for example. These symbols have acquired a deeper meaning. UNDERSTANDING HERITAGE As we have stated, having a heritage does not in itself create value, only the oppor- A company that considers its history tunity to do so. Why would a company important to its identity want to use its heritage in today’s compet- In some companies, history is important itive modern business environment? Is to identity—who and what they are. For heritage simply for archival reference, such heritage brands, the history influences as in conjunction with significant corpo- how they operate today, and also choices rate anniversaries? for the future. At IKEA, history is impor- In our view, there is no contradiction tant internally although it is not central between using and expressing one’s to the company’s external communica- heritage and having the company be (and tions. Jon Abrahamson, who works di- be seen as) up to date, cutting edge, high rectly with founder Ingvar Kamprad, tech and modern. expressed to us the importance of a living The reason companies with heritage history: ‘My personal conviction is, when should use it is to take advantage of differ- IKEA has come to the end of road entiation that is valuable for the customer/ (far into the future I am sure), one will consumer and other stakeholders, be able to trace the decline and fall to distinctive for the brand, and difficult decisions, attitudes, and actions that stood to imitate for the competitors. More in opposition to the IKEA values and specifically: heritage’ (May 2005). For the Swiss watch company Patek — Heritage can provide a basis for Philippe, ‘since 1839’ is a vital part of its distinctiveness in positioning, which communications. Heritage is also a key can generate competitive advantage, part of the advertising, and on the website for example, translating into higher the chronology of the company history prices and margins, and retaining is prominently featured. Patek Philippe customers to whom heritage is mean- underscores succinctly their view of ingful. how heritage is an integral component — Heritage can add to the brand’s value of their products: ‘You never actually proposition with depth, authenticity, own a Patek Philippe. You merely look and credibility for the customer/ after it for the next generation’ (website consumer. For example, some automo- and ads). Patek Philippe’s positioning bile brands are marques that speak © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 15, NO.1, 4–19 2007 11  URDE, GREYSER AND BALMER effectively to consumers by connoting nurtured in a heritage-oriented mindset. a heritage of engineering excellence, More specifically, if a company does not style and/or prestige. have or see an obvious heritage, how — Heritage can help build a special should it go about finding it? If it has relationship with a range of non- identified elements of its heritage, how customer stakeholders. An example is should it activate that heritage? And, if gaining support for the company it wants to protect the heritage, what in difficult times such as a sudden management approach should it employ? product problem for which the company was not responsible.Another example is that heritage may make Uncover the heritage it easier to recruit (and retain) execu- We think the first place to look when tives and employees. Heritage may seeking to uncover a brand’s heritage also build internal commitment and pride is track record. Because it constitutes to be part of a brand ‘bigger than demonstrated performance of delivering oneself ’. value to consumers/business-to-business (B2B) customers, we consider it the most Reflecting across all five elements that significant element of brand heritage. constitute heritage brands, we recognise Companies may find it in customer-based that they often are woven into the fabric beliefs about company performance and of an organisation, its culture and memory. in the company’s own articulated state- At the same time, the elements of heritage ments long associated with marketplace also can be part of the lives of customers successes. and other stakeholders. The true value of Let us give an example from our field- brand heritage, however, is how it trans- work. Scanpump, a well-established B2B lates into impact. This point was clearly company producing pumps for the pulp expressed to us by 3M’s International and paper industry, wanted to revitalise Director Dawn L. McGinley:‘Our heritage the brand. The company started to look of innovation rests on relevance, genuine at those initiatives that their customers difference, and meaning to people in their and stakeholders have appreciated and daily lives’ ( January 2007). valued over the years, and which have Again, a brand with a heritage may been particularly successful in the market- become a heritage brand. We view this place. They found that the pumps were essentially as a strategic decision. appreciated for their durability. The examination also, however, revealed that customers—knowing much about pumps FINDING AND LEVERAGING BRAND themselves—appreciated speaking with HERITAGE true pump specialists. This finding led to Thus far, we have defined the key dimen- identifying ‘specialist serving specialist’ as sions of a heritage brand and have shown an emotional core value to complement examples of how heritage has been put the more functional one, ‘durability’. This to work for brands. helped to reposition the brand and move Managing heritage effectively encom- the business more towards solutions and passes three principal processes: first the service. heritage must be uncovered, secondly it As the Scanpump case illustrates, the must be activated, and thirdly it must be search for key elements of a track record 12 © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 15, NO. 1, 4–19 SEPTEMBER 2007  CORPORATE BRANDS WITH A HERITAGE may reveal a company’s what you do; the that the institution should be a ‘seminary search for the underlying values may of “useful learning”’. reveal a company’s who you are. We consi- We advise a company looking for der these two to be related but different heritage to examine its origins, articulated significant components of identity. statements and long-held agreed-upon With an understanding of track record values. It should also try to find what and associated core values, one can under- customers have appreciated about the take a more focused examination of mean- company over the years. ingful events in company history. When using this approach to identifying heritage, Activate the heritage the most important criterion is the power Which elements of heritage should be of an event’s meaning to stakeholders, not pursued? We suggest three questions to simply the potential for celebration. help focus this stage of the effort: A relevant example was the 2006 50th anniversary celebration of the yacht manu- — How does the corporate reality facturer Grand Banks. It focused on loyal measure up in terms of heritage on customers:‘We want to celebrate the distin- each of the five HQ dimensions? guished community of loyal Grand Banks (Reminder: Few companies will have owners around the world’ (Website). meaningful heritage in very many). A more widely known illustration is — Where is the company differentiated 3M’s stated core purpose,51 ‘Solving in terms of the strength of its heritage unsolved problems innovatively’. The versus principal competitors in current phrase goes beyond the words alone and or aspired marketplaces? stands for a heritage and a documented — How can that differentiation be trans- track record. In 1995, 27 per cent of 3M’s lated meaningfully in the marketplace sales came from products introduced as a part of the brand’s value proposi- within the previous four years.52 Today, tion and positioning? 3M uses a more advanced measurement of innovation that also takes into account Careful and honest consideration will the significance of innovations. 3M’s define the best opportunities for where International Director Dawn L. McGinley and how to use a company’s heritage. The told us: ‘Innovation has been part of the principal vehicles for activating a brand’s 3Ms value set since the beginning’ (January heritage include product design, commu- 2007). nications and the brand’s history itself, as Sometimes, such a search results in a shown in these examples. discovery of brand heritage. One of us In developing its eye-catching XK was involved in 1996 when the University model, Jaguar attempted to overcome of Strathclyde in Glasgow was preparing what could be characterised as a long to celebrate the bicentenary of its founding. period of rather static appeal in its product An examination of the vision espoused design. Jaguar’s Simon Wilson told us: ‘There for the University by its founder (John is definitely a recognition within the Anderson) led to both a rediscovery and company that the brand must get in touch confirmation of its focus on applied with the real Jaguar values.This is what the research and teaching. This resulted in the new XK model was all about. Introducing formal adoption of a University motto, a new product design at Jaguar demands which reflected the words of the founder— careful attention to the brand values and © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 15, NO.1, 4–19 2007 13  URDE, GREYSER AND BALMER the heritage. In principle one must ask: Protect the heritage Does this new design reflect what the Our view is that the goal of finding and brand stands for?’ ( January 2006). activating a brand’s heritage is to extract In terms of communications, Siemens value from the heritage. But when extracting demonstrated what we consider a very threatens to become exploiting, a company effective translation of heritage for the must have an established function to help present and future, via its long-running US protect the heritage. Brand stewardship corporate advertising campaign ‘That was serves this purpose (see below). then. This is now’.53 Initiated in 1990, the The demise of the accounting firm campaign compared a series of Siemens’ Arthur Andersen stands as a classic illustra- discoveries and innovations from its 19th tion of a company, which strayed from its century history with recent advances in the heritage. Its decades-old core values were same fields. One illustration was Roent- rooted in integrity, which we consider gen’s first X-ray images, patented by central to the brand essence of any major Siemens in 1895 as the world’s first X-ray accounting firm. Yet no one—especially tubes; modern magnetic resonance image the CEO—seemed ready to stand up and technology is the analogue. In our view, this exercise the corporate brand stewardship approach reflects a deep heritage success- role as a countervailing force, and divert fully adapted to the present marketplace. It the company from the behaviour (with demonstrates our earlier point that using Enron) that led to reputational distress and heritage as part of one’s current identity is subsequent financial disaster. not contradictory to being up-to-date. A third lever for activating a brand is the brand history itself. Sometimes this BRAND STEWARDSHIP IS comes from reactivating a brand heritage ESSENTIAL from an earlier time. Other times it may For those companies that have found be found via acquisition. An example of their heritage, or think they may have it, the former is the Hungarian brand of herb we strongly advise the incorporation liqueur Zwack Unicum, which had been of a brand stewardship function as part a strong brand prior to World War II, but of using brand heritage (Figure 1). This had to rebuild its brand after decades of applies to both leveraging heritage, that neglect during the Communist period. is, successfully making heritage an asset— An example of ‘heritage by acquisi- and protecting one’s heritage. We believe tion’ is the purchase of the Bentley auto- companies should have an explicit motive marque by Volkswagen in 1998; brand stewardship function (even if not by this resulted in Bentley emerging phoenix- this title). Although best undertaken by like as a stand-alone institutional brand. people, the corporate culture may serve For 12 years from its founding in 1919, the same purpose in the form of a protec- Bentley had been an independent firm tive mindset. before being acquired by Rolls Royce. More specifically, stewardship tries to As one senior Bentley executive told us: leverage brands for positive value creation, ‘What is phenomenal about the Bentley such as through co-branding or choice of brand is that everything that we had done joint-venture partners. At the same time, in that short period ultimately has given stewardship also calls for protecting us the ability to revive the brand many the equity of the brand and its symbols years later’ (February 2006). from exploitation, such as from potential 14 © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 15, NO. 1, 4–19 SEPTEMBER 2007  CORPORATE BRANDS WITH A HERITAGE negative associations or overstepping the stewardship cited in our interviews. Strong bounds of one’s brand charter. voice for this idea came to us from Erik From our interviews and other research, Belfrage, long-time personal advisor to we have gathered and framed a number the Wallenberg family: ‘The brand is of actions that we associate with brand “bigger” than you are? Well, this is true stewardship in behalf of heritage brands. for all of us in this house [firm]. The These are as follows: Wallenbergs themselves are the brand. We need to be very careful handling the brand — You know the brand is ‘bigger’ than and our heritage’ (March 2006). you are. — You know you are a link in a long chain. Long-term continuity — You would like to leave an ‘even Baron Eric de Rothschild states on the stronger brand after you’. company’s website: ‘I am just a passing — You take a long-term perspective housekeeper of Chateau Lafite Rothschild’. encompassing a knowledgeable retro- Long-term continuity on behalf of the spective. brand is closely related to responsibility. This — You treat what has been done before dimension of stewardship is present in a wide with respect. range of institutions, as shown in the follow- — You have a focus on and an under- ing perspectives drawn from our interviews: standing of your company’s core ‘When you are assigned to the responsibility values and their link to heritage. for a brand … you have become part of a — You recognise the value and impor- long process.You treat what has been done tance of symbols and symbolic actions, before with respect, and you want to leave and know how to use them consistent an even stronger brand to the person who with the core values. comes after you’ Luic Tassel, Marketing — You have the ability to know when manager, Procter & Gamble (August to accommodate change that involves 1997). the brand’s heritage. ‘One is dedicated. No matter the situation — You are prepared to say ‘no’ with in the country, you know—and the people know—that you will be there’Crown Princess reference to your company’s heritage, Victoria of Sweden (December 2003). reputation and future … and also to say ‘yes’ when appropriate. Beyond continuity alone is the search for continued improvement. Patek Philippe’s In turn, we have distilled these and Director of public relations Jasmina Steele related ideas into four principal ways of described to us this ‘baton pass’ aspect of thinking that characterise how successful stewardship: ‘Each generation brings brand stewardship operates regarding something to the brand. Without handing heritage. We think these together cons- on knowledge and tradition we would titute the mindset of heritage brand have to start the brand all over again’ stewardship. (January 2007). A sense of responsibility Safeguarding trust in your brand An omnipresent sense of responsibility for We have stated that trust and credi- the brand is the broadest dimension of bility constitute key attributes of heritage. © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 15, NO.1, 4–19 2007 15  URDE, GREYSER AND BALMER Maintaining trust is therefore a vital Everything would be a version of what element in stewardship for heritage brands. you already had. Of course, what you need This is particularly true when there is to do to engage is to use those elements more to lose because trust has been widely of thinking that allow you to design a car cited as important to the brand. like that at the time, and bring it into the future. And design a car that gives you a Consider the blow to the BBC’s reputa- modern car’ ( January 2006). tion by the 2004 Lord Hutton report on its questionable journalistic reporting on Each Swedish monarch selects a motto for Iraq, in light of the BBC’s heritage his own reign. Here King Carl XVI Gustav of cherishing the values of impartiality and interprets for us the meaning of his motto, independence. The BBC heritage includes ‘For Sweden—With the times’: two trust-related long-held principles ‘“For Sweden—With the times”. To me widely communicated on its website:‘Trust it means being a monarch in a modern is the foundation of the BBC’ and ‘We are society—that is, to adapt the role by independent, impartial and honest’. meeting the demands of a changing world. The departure of key senior BBC exe- Not being ahead of the times, not being cutives in the aftermath of this crisis illus- behind the times. But rather being in our trates another important aspect of heritage time. It’s about sensing feelings and what is brands, namely the responsibility felt and right at the time—what the Swedish people taken by individuals. CBS had an ana- wish and expect from a modern Monarch’ (February 2004). logous experience during the 2004 US election. A BRAND WITH A HERITAGE HAS Adaptability A STORY TO TELL Despite the importance of safeguarding Brand heritage in our view is an often brand heritage, stewardship does not mean unrecognised and frequently undertapped inaction or discouraging change. On the corporate asset. We have described the five contrary, adaptability is a very important elements constituting heritage brands and element of stewardship. People with fresh illustrated with examples how organisations ideas should have the opportunity to under- have employed their heritage. The process stand and share insights on what the company is to uncover, to extract, to protect and to is all about. Adaptability is a key to main- nurture the value of a company’s or organi- taining a brand’s relevance over time. Indeed, sation’s brand heritage. We believe heritage sometimes one needs to change in order to brand stewardship is an important vehicle stay the same. Examples include modifying for companies to protect their heritage and the product or its positioning without foster a heritage-oriented mindset. affecting the underlying values of the brand We conclude with four questions for meaning. those interested in finding and using The power of this idea is reflected in heritage in their brand’s identity: quotes from two very different entities, — Do we recognise the heritage elements the automobile industry and the monarchy. in our organisation … does it have Jaguar’s Simon Wilson told us: meaningful HQ? ‘Heritage, inappropriately applied, could — Are we (or should we be) putting lead you or entrap you into replicating heritage to work as part of corporate those designs you have for the moment. positioning and communications to 16 © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 15, NO. 1, 4–19 SEPTEMBER 2007  CORPORATE BRANDS WITH A HERITAGE customers and noncustomer stake- We believe, however, that there is a key holders? difference in motive for branding on — If we are using heritage, are we behalf of monarchies compared to unlocking/extracting its full value for branding in the corporate world. Compa- the present and future? nies try to employ branding concepts and — Do we have the corporate mindset approaches to leverage their brands in to nurture and protect our brand order to improve their financial balance heritage? sheets and shareholder value. In contrast, we see monarchies typically as trying to A company’s heritage transcends its history. employ them to enhance the country’s A brand with a heritage has a story to tell. social balance sheet and core values. Heritage is and can be a vibrant part of The accompanying chart illustrates how companies think about themselves further the comparative worlds of corpo- and the values they offer their stakeholders. rate brands and monarchies, using impor- tant elements of the vocabulary of corporate branding and their analogues Editorial BOX for monarchies. To us this comparison not only shows that monarchies have many Royal heritage: Why monarchies are characteristics of heritage brands, but it corporate brands also clarifies why our research on monar- Our own recognition of the value of chies informed our thinking about the heritage emerged from our lengthy study HQ. In turn, we think these insights from of monarchies as corporate brands.1,32 monarchies as brands can enhance corpo- Our view of the parallels was reinforced rate perspectives on their own branding. by a direct statement of His Majesty King Carl XVI Gustav of Sweden when he told Corporate brands and monarchies: us: ‘My role is to represent Sweden and Comparative phrases to be a symbol for my country; some people would use the modern word Corporate brands Monarchies “trademark”’ (Stockholm, May 2003). We saw these centuries-old institutions as CEO Monarch Logotype Coat of arms analogues to corporate brands, albeit with Corporate tagline Royal motto some key differences, such as lifetime Brand loyalty Willingness to support reigns and inherited family incumbency. Target market and Country citizens The idea that monarchies are heritage noncustomer and a wide range of stakeholders stakeholders brands is supported by ‘high HQ’ on Identification of the Symbol of nationhood such dimensions as longevity, the importance enterprise, often of history to identity, and the significant and multinational Corporate statement/ Covenant extensive use of symbols. Moreover, we brand promise consider brand stewardship (by royal families Corporate advertising Communications without and royal courts) to be a vital element of the and other corporate advertising, for ‘managed communications visibility’ organisational culture of modern constitu- Co-branding Royal warrant (‘By tional monarchies. It helps guide how appointment of …’) monarchies present themselves to their Budget Appanage people and maintain willingness to support Corporate brand Stewardship management the (monarchy) brand.32,54 © 2007 PALGRAVE MACMILLAN LTD 1350-23IX $30.00 BRAND MANAGEMENT VOL. 15, NO.1, 4–19 2007 17  URDE, GREYSER AND BALMER Acknowledgments (11) Herbert, D. T., (ed.) (1995) ‘Heritage, Tourism We appreciate the time and ideas of numerous exec- and Society’, Pinter, London. utives who kindly shared their experiences and (12) Prentice, R. (1993) ‘Tourism and Heritage insights with us via interviews and field visits. We Attractions’, Routledge, London. especially thank senior members of the Swedish (13) Urde, M. (1999) ‘Brand orientation: A mindset Royal Court and the Swedish Royal Family for meet- for building brands into strategic resources’, ings with us. 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