Internal Branding

Master Thesis, February 2003 Internal Branding - How to Make Employees Live the Brand Supervisor: Frans Melin Authors: Anna Holmgren Linda C Schori Malin Wingård Abstract TITLE: Internal Branding – How to Make Employees Live the Brand DATE OF SEMINAR: 28th February 2003 SUBJECT: FEK591 Master Thesis, Marketing, 10p AUTHORS: Anna Holmgren, Linda C Schori, Malin Wingård SUPERVISOR: Frans Melin, Assistant Professor, Department of Business Administration, School of Economics and Management, Lund University, Sweden COMPANIES: Pågen AB, SAS Airline, Öresundskraft AB KEYWORDS: Core Values, Corporate Brand, Implementation, Internal Branding PURPOSE: The purpose of this master thesis was to investigate the phenomenon of internal branding, with the aim of creating a process model to be used as guidance by companies when implementing an internal branding strategy in the organisation. METHOD: To carry out our research, we performed a theoretical as well as an empirical study. The empirical study consisted of the undertaking of three case studies with the companies stated above being the objects of research. As our method for the collection of empirical data we used semi-structured interviews, which were conducted with 2-3 representatives of each of the selected case companies. CONCLUSIONS: Our findings indicate that an internal branding process consists of four sequential steps: initial work, creation of vision and core values, adaptation, and follow-up and evaluation. Moreover, we have found that certain pre-requisites need to be fulfilled before the undertaking of the process, among these that the goals of the process are clearly defined and that the process is fully supported by the company management. Further, our model the circle of adaptation demonstrates concrete measures that companies can take in order to make their employees live the corporate brand. Preface This master thesis was written during four months in the winter of 2002/2003. Working on the thesis has been very interesting and provided us with a deeper knowledge of the phenomenon of internal branding as well as contributed to an improvement of our ability to think and reason analytically. We would like to show our sincere gratitude and appreciation to the people that have helped us during the process of writing and hence made this thesis possible. First of all, we would like to thank our supervisor, Assistant Professor Frans Melin, for inspiration and support during the process. We would also like to thank Eva Malmberg, Ewa Dahlqvist and Georg Kittel at Pågen AB, Kerstin Edenby-Stross and Stefan Bjurholm at SAS Airline, Anders Mathiasson and Karin Hallgren at Öresundskraft AB, who very helpfully provided us with valuable information. At last, but not least, we would like to thank our families for their support and understanding during all the long hours that we have spent in front of the computer… Lund, February 2003 Anna Holmgren Linda C Schori Malin Wingård TABLE OF CONTENTS Table of Contents 1. INTRODUCTION .............................................................................................................................................5 1.1 BACKGROUND................................................................................................................................................5 1.1.1 Importance of Branding ........................................................................................................................5 1.1.2 From Product Brand to Corporate Brand.............................................................................................5 1.1.3 Why Internal Branding..........................................................................................................................6 1.2 PROBLEM DISCUSSION ...................................................................................................................................6 1.3 PURPOSE ........................................................................................................................................................7 1.4 SPECIFICATIONS AND DEMARCATIONS...........................................................................................................7 1.5 THEORETICAL AND PRACTICAL RELEVANCE..................................................................................................8 1.6 TARGET AUDIENCE........................................................................................................................................9 1.7 GUIDE TO THESIS ...........................................................................................................................................9 1.7.1 Thesis Outline........................................................................................................................................9 2. RESEARCH APPROACH..............................................................................................................................11 2.1 OVERALL APPROACH...................................................................................................................................11 2.1.1 Choice of Subject.................................................................................................................................11 2.1.2 Choice of Method ................................................................................................................................11 2.1.3 Weltanschaung ....................................................................................................................................12 2.1.4 Theoretical Frame of Reference..........................................................................................................12 2.1.5 Criticism of Sources and Literature ....................................................................................................13 2.2 PRACTICAL APPROACH ................................................................................................................................14 2.2.1 Case Studies ........................................................................................................................................14 2.2.2 Interviews ............................................................................................................................................16 2.3 REFLECTIONS AND CRITICISM OF CHOSEN RESEARCH APPROACH...............................................................17 3. BRANDING......................................................................................................................................................20 3.1 BRAND IDENTITY AND BRAND IMAGE .........................................................................................................20 3.2 THE CORPORATE BRAND .............................................................................................................................21 3.3 ACTIVATION OF THE CORPORATE BRAND....................................................................................................22 3.4 INTERNAL BRAND LOYALTY........................................................................................................................24 4. INTERNAL BRANDING................................................................................................................................26 4.1 DEFINITIONS OF INTERNAL BRANDING ........................................................................................................26 4.2 INTERNAL BRANDING THEMES ....................................................................................................................27 4.2.1 Communication ...................................................................................................................................27 4.2.2 Recruitment .........................................................................................................................................29 4.2.3 Employee Motivation...........................................................................................................................31 4.2.4 Role of Management............................................................................................................................32 4.3 CRITICISM OF INTERNAL BRANDING ............................................................................................................33 5. IMPLEMENTATION STRATEGIES...........................................................................................................35 5.1 IMPLEMENTATION OF INTERNAL BRANDING ................................................................................................36 5.1.1 Ind’s Implementation Strategy ............................................................................................................36 5.1.2 Employer Brand Evolution..................................................................................................................37 5.1.3 Brand Experience Mapping.................................................................................................................38 6. THEORETICAL FRAMEWORK .................................................................................................................41 6.1 CORPORATE BRAND IDENTITY AND ACTIVATION ........................................................................................41 6.2 INTERNAL BRAND BUILDING .......................................................................................................................42 6.3 INTERNAL

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