Corporate Identity in a Global Market: the Challenge of the Jotun Company

Corporate identity in a global market: the challenge of the Jotun company

Skjerven, Astrid / Professor PhD / Oslo and Akershus University College / Norway

Corporate identity / Globalization / Jotun / Dubai / China / The branding of the Norwegian firm Jotun is an example of this Branding / Akzo Nobel schism, which the following study aims to demonstrate. It consists of a comparison between Jotun’s engagements in two different countries, The Arab Emirate of Dubai and The People’s Republic Globalization is creating universality, but also estimation of dif- of China (PRC). The former was established when globalization ference. This is a challenge to firms that are working globally. A was at its initial stage, the latter when it had become more mature. corporate identity should be comprehensible universally, but To throw light on the characteristics of Jotun’s branding policy, a also attractive in various countries. The branding of the Norwe- description of the corporate identity of its major competitor Akzo gian firm Jotun is an example of this schism. The study shows Nobel is included. The logo is regarded as the main element of a that Jotun’s competitiveness would be improved by communi- firm’s visual identity, and therefore constitutes the core object of cating its origin and making culture based local adaptations to the investigation. It is based on literature, archival studies and in- its products. terviews in Norway, Dubai and China.

1. Identity in the era of globalization 2. The corporate identity of Jotun The prevalent process of globalization has led to a certain uni- The still mainly family owned group of firms Jotun has its head formity and sameness all over the world. This fact has been given office in the city of Sandefjord, situated by the Oslo Fjord. It is much attention, and adaptations to the situation have become one of the world’s leading manufacturers of paints and other pro- common practice. Gradually it has become evident that the protective coatings and powders. The group has 8000 employees, cess has also created a contrary tendency, a cultivation of the 70 companies and 38 production facilities on all continents and regional, local and individual. In this way it contains its own op- is represented in more than 80 countries. Its operations cover posite. One might also say that it consists of two poles. According development, production, marketing and sales of products for to the view of the sociologist Scott Lury, contemporary culture is the shipping, industrial and residential markets. continuously expanding and is becoming more extensive, leading to universalization. At the same time, and at a corresponding The characteristics of Jotun’s identity have their origin in its his- pace, it is becoming increasingly intensive as regards relations, tory. The company was founded by Odd Gleditsch in 1926 as a media and pace of life. This has caused an opposite effect: the personal enterprise, characterized by inventiveness, strong fam- creation of difference, and a higher estimation of it.1 The phe- ily ties and international ambitions. The site was the small city nomenon is closely related to that of so called glocalization with of Sandefjord, at that time the centre of the thriving Norwegian its slogan “think globally and act locally”. The term stands for an whaling industry. The name Jotun was inherited from a company ambition to combine the idea of globalization with that of local that had been taken over and used as a starting point for the new considerations.2 It is getting increasing support, and has led to a enterprise. The term derives from Old Norse mythology and means greater appreciation of local culture. giant. An illustration of this fantasy creature was initially used as a logo. In 1942, after many trials and failures, a penguin inscribed In a world where everything seems to become more alike, it has be- in a circle was finally chosen as motif. While the circle symbolised come of increasing value to be able to stand out as different from the world, the bird’s qualifications for the choice has been told to others and to display a unique identity. The identity is regularly be its tolerance to wind and bad weather, like good paints.3 The constructed on the basis of local, regional or national cultural tradi- founder’s experience with these animals at whaling expeditions in tions. The phenomenon comprises all entities, like nations, groups, the Antarctic might also have been of importance. Additionally, the persons and business enterprises. It constitutes a great challenge great resemblance with the logo of the recently founded British to firms that are working globally. A corporate identity that fulfills publishing house Penguin makes it an obvious model. the requirements of the era has to be comprehensible at a universal level and at the same time attractive in several countries and to In 1976 the logo was given a more professional design, and the different cultures. This has become a key success factor. It seems penguin’s wings made spanning the globe. The work was done to be of particular relevance for the private market segment, which by Jotun’s Marketing Manager Arne Langnes.4 The choice of the is the most intimately related to the construction of personal iden- lively and strong colours yellow, red and dark blue seem to have tity based on cultural variations. been a matter of habit, but the multinational firm Shell’s colour

1 LASH 2010. 3 BRYN 1998. 2 ROBERTSON 1992. 4 Ibid.

Skjerven , Astrid 2012. Corporate identity in a global market: the challenge of the Jotun company. In Farias, Priscila Lena; Calvera, Anna; Braga, Marcos da Costa & Schincariol, Zuleica (Eds.). Design frontiers: territories, concepts, technologies [=ICDHS 2012 - 8th Conference of the International Committee for Design History & Design Studies]. São Paulo: Blucher, 2012. ISBN 978-85-212-0692-7. DOI 10.5151/design-icdhs-041 Corporate identity in a global market: the challenge of the Jotun company

scheme might also have had influence on the decision.5 Dark in the Netherlands in the 18th century, Akzo Nobel has gradually blue may have been preferred to black because of the negative developed into a huge conglomerate of firms by purchasing other associations that colour evoked in the Arab world, or because of companies in various parts of the world. It is therefore a global its reference to the sea, the home of the penguin. Since then a firm in a literal way that Jotun is not. visual identity program has been developed, with the penguin as the core element. In 2010 it was updated and the penguin made The name contains a reference to its founding company as well slightly more stylised. The job was done by Metro Design, a small as to the famous scientific researcher Alfred Nobel, who had ties studio situated in Sandefjord. to two of the purchased companies. The present logo was originally designed in 1988 by the legendary Grand Old Man of visual The slogan “Jotun protects property” has been used on a stand- corporate identity, Wally Olins. In 2010 it was redesigned by one ard basis during the last couple of decades. It points at the firm’s of his former studios, the world spanning Saffron bureau, in col- customer orientation and its offer to take care of their assets. laboration with Pentagram and the illustrator Martin Rijven. The rebrand was awarded with a placement on the shortlist of the Whenever presenting the firm the motif of the penguin is exten- Transform Award for rebranding and brand transformation that sively used, mostly in the form of photographs that underlines year.6 It consists of the torso of a man with his arms stretched its resemblance with human beings. Even Jotun’s set of values, out. It is a modern paraphrase of the classic Greek “Metric re- loyalty, care, respect and boldness, is put forward as if derived lief”, symbolising metric systems based on the human body. from the animal. This gives the impression of care for human life The only colour is blue in various shades.7 In this way the logo and accordance with nature. This almost naïve approach appeals demonstrates an emphasis on scientific research and rational directly to people’s feelings and creates personal identification thinking, as opposed to Jotun’s more customer oriented and with the firm and its products. sentimental approach. The slogan ”Tomorrow’s answers today” supplies the identity with a dynamic drive and the ambition to be Since the turn of the century, when globalization had become in the forefront of solutions for the future. The identity contains the buzz word for most business development, Jotun has been subdivisions by country, with separate sets of values etc. The presenting itself solely as a global firm. No reference to its lo- subdivisions make it easy to implement national adaptations to cal or national origin is being made. The global engagement and the products. competence is seen as a value in itself and sufficient to meet the needs of all market segments. Compared with Jotun, Akzo Nobel has a more flexible, but also a more complex identity than Jotun. For a firm of this size it is In spite of the global outward identity, the firm is still deeply quite natural. But even more important is the fact that it reflects rooted in the city where it was founded. The penguin motif con- the firm’s factual identity to a higher degree than that of Jotun, stitutes a parallel to that of the whale, which was often used in where there is a weaker correspondence between communicat- connection with the whaling industry. Also the penguin had been ed and factual identity. This probably constitutes a competitive used in that connection. The colour of blue was frequently cho- advantage. sen, since the city is situated by the sea. It is also nicknamed “The blue city by the Oslo Fjord”, with reference to its political conservativeness. Consequently, property, and the protection 4. The success of Dubai of it, is a major priority, which is reflected in Jotun’s slogan. The International expansion has been on Jotun’s agenda since the use of internal or local staff for the highly professional task of post war era. Its first foreign production plant was put up in Libya designing logo and visual identity program points at a certain lo- in 1962. In 1975 it was replaced by an enterprise in Dubai.8 The cal preference. Many of the board of directors have their origin in young nation had recently discovered oil and opened for foreign the region, and the Gleditsch family is still playing a major role in investments. Simultaneously it had started a modernization pro- the management, now represented by its third generation. These cess and created a market for Western goods. Consequently, facts are not put forward when the firm is presenting itself. It Jotun was given exceptionally good conditions for its work. Since seems to be regarded as something that could stand in the way the start it has been a success, both as regards production and for branding itself as a global firm. sales. Jotun has even been chosen as the supplier of paint for several of Dubai’s iconic landmarks, among others the Burj Dubai and the Burj Khalifa, the world’s tallest building. 3. The corporate identity of Akzo Nobel Jotun’s probably greatest competitor, Akzo Nobel, is the world’s The favourable climate for foreign enterprise is not the only rea- biggest firm in the field of protective coatings. It has 60.000 em- son for the good results. Since the start the involvement has ployees in all parts of the world and covers all product categories been built on personal relations and cultural empathy. When and market segments. It has defined a corporate identity that is initiating the engagement Jotun hired former representatives quite different from that of Jotun. It is clearly related to the firm’s 6 www.identityworks.com/reviews/2008. history, as well as to its ambitions for the future. Having its origin 7 www.akzonobel.com/uk/aboutus (2012). 5 ALMESTRAND 2010. 8 BRYN 1998.

Design Frontiers: Territiories, Concepts, Technologies 220 Skjerven, Astrid

of the UK protectorate of Dubai, who had intimate experience owned firm Cosco in building a production plant. The engagement with the political and cultural conditions.9 The emir, who accord- comprises production units, research and development and the ing to tradition governed the country like a family firm, was ap- whole range of products. 16 It has also achieved the contract for proached by Jotun’s managing director Odd Gleditsch Jr, son of the paints of the Taizhou Yangtze Bridge, the world’s biggest and the company’s founder.10 There was a certain parallel between one of China’s most prestigious building projects.17 The sales of all the roles of the two, both being heads of family run enterprises. its product categories for industrial use have shown a substantial They also shared an interest in hunting and birds, and spent growth. As regards coatings for private consumers, which consti- time together where these interests were cultivated. This added tutes China’s biggest and most competitive of the product seg- to the success and to the popularity of the logo, and probably ments, the sales have as yet been moderate.18 made the Antarctic penguin more familiar to the desert people. According to its status as a global enterprise Jotun’s strategy is While today business relations have become less personal, they to treat all national engagements in a universal way. Local adap- have continued to be built on knowledge with the local culture. tations are supposed to occur by hiring mostly local staff.19 This This has made it easy to identify needs for adaptations of Jotun’s has led to technical adaptations according to climactic require- products. ments, but little focus on national culture and private consump- tion. Decorative products are marketed and sold without adapta- The engagement comprises all product categories and mar- tions to national preferences. This is even the case with one of its ket segments. Adaptations have been particularly extensive in major products in the category, the interior paint Lady, originally the lucrative private market, comprising coatings for people’s developed for the Scandinavian market and its tastes.20 In com- homes. In addition to physical protection, these products have parison, in the UAE the paint as well as its name and wrapping a decorative function. Based on the firm’s general multi-colour has been carefully redesigned to meet local preferences.21 Nei- system and product range it has developed goods that are tai- ther does Jotun take advantage of the Chinese people’s prefer- lored for these customers’ culture and tastes.11 They consist ence for the colours of red and yellow, which fits with the colour of bright and often gleaming pastels in shades that are seldom scheme of the firm’s visual identity. used in the Scandinavian countries. They are marketed accordingly, and are addressed directly to their target groups.12 So In this way Jotun makes itself stand out without any national called Inspiration Centers have also been set up.13 or local characteristics, while the inhabitants of GPR are treated as global citizens. This was the case with Jotun’s engagement at the World Expo in Shanghai in 2010. While other Norwegian 5. The challenge of China business interests showcased themselves in a national or Scan- As a major world power, China plays a leading role in the glo- dinavian frame of reference, Jotun’s contribution was a concert balization process. The nation is characterized by long dynas- that praised cultural diversity, without giving any indication of tic traditions and a highly renowned culture. It is undergoing a its own cultural belonging.22 This demonstrates braveness, self- vast industrialization process by ways of Western technological confidence and creativity. But by not placing itself on the map in standards and its citizens have become slightly “westernized”. A the world of cultural diversity it missed the opportunity to give its consumer market for Western brand goods has emerged.14 Dur- identity a historical foundation and make it unique. ing the last years the country has become increasingly aware of the values of own national traditions. At the same time there is an emerging openness towards ideas from foreign national or 6. From global to glocal identity regional cultures. In 2011 Jotun made its best financial results ever, and they continued to grow in 2011.23 This means that the group of firm’s Jotun’s engagement in PRC is among its biggest and strategically corporate identity is successful and fits well into the globalized most important. It started in 1993 and belongs to a later stage world. However, Jotun has as yet not taken into account the rap- in its history, when it had established itself as a global enterprise. idly growing phenomenon of glocalization and the increasing The engagement in the country was handled accordingly. It was importance of displaying difference. It has kept its identity as caused by the fact that since the opening of its borders to busi- global only. ness with the foreign world in 1979, many European industrial undertakings and thereby many of Jotun’s customers had been To optimize its results and secure its competitive edge for the transferred to PRC.15 It started a cooperation project with the state 16 LARSEN 2010. 9 BRYN 1998. 17 www.coatingsworld.com/2010. 10 HERMANSEN 2006. 18 JOTUN 2010. 11 HERMANSEN 2006. 19 ALMESTRAND 2010. 12 JOTUN UAE 2006. 20 LARSEN 2010. 13 www.coatingsworld.com/2007-09-19. 21 www.coatingsworld.com/2010. 14 JACOB 2011. 22 QUIDE 2010 . 15 ALMESTRAND 2008. 23 JOTUN 2011 and 2012.

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future, Jotun needs to create a more clearly visible identity by Jotun 2006 Konsernmagasin 2005-2006. indicating its local origin. This is what Akzo Nobel has done. It should also put stronger emphasis on making product adapta- Jotun 2006 Penguin Magazine, 2. tions according to local tastes. This is not achieved only by hiring local staff, but needs a more active approach. It requires strategic Jotun 2010-12 Annual Reports 2009-2011. measurements and product development of a cultural kind. Jotun has surely got what it takes: an interesting local origin, an engag- Jotun Uae (2006) Brochures. ing history and experience from around the world. Larsen, L. 2010 Interview with Jotun’s Manager of Colour Schemes April 4. The engagements in Dubai and China are different with respect to time of initiation, size, business conditions and culture. But they Lash, S. 2010 Intensive culture: Social theory, religion and contemporary also have similarities, dealing with monopoly states recently capitalism. London: Sage. opened to foreign investments, and representing cultures radi- cally different from those of Norway. As the globalization process Naglestad, B. 2010 Interviews with Jotun China’s general manager of has taken a turn towards higher estimation of the glocal perspec- coatings May 22 and September 9 2010. tive, the case of Dubai has gained a renewed relevance. The approach towards the giant and proud republic of China has to be Quide, C. 2010 Concert theme “coloured by culture” held at Expo. China another than the one used in tiny Dubai. But what the case of daily October 26. Dubai demonstrates is that knowledge of the local culture constitutes a great potentiality for and necessary ingredient in product Robertson, R. 1992 Globalization: Social theory and global culture. Lon- development and strategic branding. Jotun should make use of don: Sage. this experience in its work in China as well as the rest of the world. www.akzonobel.com/uk/aboutus/company_overview/identi- References ty/12.04.2012. Almestrand, K. 2010 Interview with retired Jotun Group Managing Director February 19. www.coatingsworld.com/cintents/view_breaking-news/2007-09-19.

Bryn, T. 1998 Vision, colour, form: The history of Jotun. Sandefjord: Jotun. www.coatingsworld.com/issues/2010-03.

Hermansen, A. 2006 Interview with Jotun’s General Manager in Dubai. www.coatingsworld.com/issues/2010-11.

Jacob, R. 2011 “Tastes of the newly wealthy”, Financial times March 7. www.identityworks.com/reviews/2008/AkzoNobel.htm.

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