CORPORATE IDENTITY AND CORPORATE COMMUNICATION: A CASE STUDY OF MARUTI SUZUKI LTD

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1 CORPORATE IDENTITY AND CORPORATE COMMUNICATION: A CASE STUDY OF MARUTI SUZUKI LTD Ashween Kaur Anand* Assistant professor, Department of commerce SGTB Khalsa College, University of Delhi Dr Sukhvir Singh ** Assistant professor, Department of commerce SGTB Khalsa College, University of Delhi Abstract In the present business environment companies are able to have a better bargaining power due to good corporate identity. That is why firms try various means for creating a positive reputation in the market. Using the AC 2 ID test model the corporate brand identity has been selected and the misalignment in case it is there is pinpointed. Nowadays, companies are trying to strategically use their corporate identity on a long term perspective because it acts as a competitive edge for the company. This paper highlights the importance of creating a positive corporate identity and discusses other important aspects of corporate identity and corporate communication. The paper further talks about misalignment between identities with reference to the case of Maruti Suzuki India Ltd. Keywords: corporate communication, corporate identity, misaligned identity, communication wheel. 1. CORPORATE IDENTITY Corporate identity refers to the company s nature, its mode of working and its various strengths in relation to other companies identity. Corporate identity comprises of not only the tangibles but also the intangibles like the companies beliefs, its interests or values by which it becomes possible to differentiate it from others. Generally the firms try to portray their identity through the following means such as: Business Card Logo Packaging Letterhead Advertising Signage Marketing collateral. All the above items are used in the representation of a corporate identity. For instance the mere showing of the logo helps in the easy recognition of a company. This shows to what extent the company has been able to create its mark among the customers that is helping them to have a favorable attitude towards it. Thus all these various aspects are portrayed in combination to form a company s identity. It is also the way by which the corporates are distinguished as per the customers perceptions which is also known as corporate image. 2. NATURE OF CORPORATE IDENTITY Whetten and Albert have suggested 3 attributes of identity: submit paper : editor@arseam.com download full paper : 64

2 Ashween Kaur Anand & Dr Sukhvir Singh CORPORATE IDENTITY AND CORPORATE COMMUNICATION: A CASE STUDY OF MARUTI SUZUKI LTD 1. The first aspect of identity concerns the company s essence. This is regarded as the company s identity in a scientific manner. This helps in differentiating it from others. For instance, Maruti Suzuki Ltd. carries the identity of being the people s car which is a car of small family. 2. This aspect relates to the distinguishing features that help in differentiating the company from other corporate. 3. This aspect relates to the long term identity which remains more or less the same in each year. 3. IMPORTANCE OF CORPORATE IDENTITY FOR ORGANIZATIONS 1. If a company is able to create a positive identity then selling of the company s products to the customers becomes an easier task. This in turn boosts the company s sale revenue and also its profit margins. 2. Favourable corporate identity also helps the company to raise its share values and thus attracts more investors in the market. Companies benefit from the favorable corporate identity as they are able to command higher prices on their shares as premium. 3. More employees can be attracted as a favorable identity helps them to get the satisfaction feeling by working in the company having a good image in the market. Strategic use of corporate identity- Organizations are stressing on corporate identity to clarify their mission and also to have this as a means of creating a competitive edge in the market. A positive corporate identity has helped Maruti Suzuki Ltd. in benefitting by the following strategies: Production strategy Customer s service strategy Pricing strategy Communication strategy Designing strategy From all the above strategies the company is able to benefit more as it is having a high corporate identity therefore it means that the organization by using fewer means is able to create higher value. The image of the company has an effect on the perception of the customers as its identity according to nature is contingent. This makes the company s bargaining power stronger than the parties dealing with it. Even in recruitment the best personnel is available to the company. Moreover there are benefits in the settlements concerning the interest rates or the contract terms thereby benefitting the company in financial terms. 4. AC 2 ID TEST Soenen and Balmer worked out the AC 2 ID test for the purpose of testing the identity of the company. It is basically regarded as a qualitative kind of research that was based on the consultancy of the main companies by the evaluation of the documents in this concern in order to detail the present strategies that are being used by the consultancies of the corporate identity. It is a multi discipline and is strategically designed that helps in the transformation of the corporate identity s traditional concept to a communication based system that is relying on visual designing. The following principles have been suggested by Balmer and Soenen that are involved in the diagnosis of the needed new system or the corporate identity. These are as follows: Use of the most innovative means that show a competitive edge. submit paper : editor@arseam.com download full paper : 65

3 Must be such that helps in the improvisation of the best strategies being used in regard to the management and consultancy of the corporate identity. Should try and help in getting the maximum possible objectivity in the management and consultancy in this regard. Should try to get working through consultants. Should be as simple as possible Should be easy in memorizing Thus all these principles helped in the formulation of the latest testing known as AC2ID test. In this it tries to identify five kinds of identity and then analyzing the 10 interfaces which are taking place among them. The 5 identities are given below: 4.1 ACTUAL IDENTITY All the company s present attributes help in the formulation of this type of identity. Even the different elements such as the kind of ownership or the control by other groups or by the kind of management leaders or the capital structure uniqueness affect this type of identity. The actual identity is also influenced by the various products offered by the company. Thus it affects the working of the organization on the whole. In case of Maruti Suzuki Ltd. the basic identity is of a small car manufacturer having huge customer force with excellent after sales services. 4.2 COMMUNICATED IDENTITY Various means such as radio, television, or the print media help in the creation of this kind of identity by the corporate. Both proactive and reactive means or by sponsorship various mediums are used in the creation of a statement that is directed towards the customers. This helps in assisting the overall corporate identity. But this creation of identity is regarded as a control means of creating identity. 4.3 CONCEIVED IDENTITY Such kind of identity is created due to the performance of the company and the reputation it is carrying in the market about its products. It is also regarded as a perceptual concept that indicates the corporate branding or its reputation and its image. 4.4 IDEAL IDENTITY This is regarded as the company s optimum positioning in the market during the given time period. It is generally given on the basis of the information provided by the strategic planners or on the basis of the potentialities and skills of the company. 4.5 DESIRED IDENTITY It is an identity that is found in the company s vision and missions. It is the integration of the 4 type of identities discussed above that helps in the formation of the overall company s identity. Desired identity is something which the top managers or the leaders try to visualize. 5. MISALIGNED IDENTITIES: CASE OF MARUTI SUZUKI INDIA LTD. Certain visualized misaligned identities are as follows: a. Misalignment of the communicated and the actual identities. b. Misalignment of the conceived and actual identities. c. Misalignment of the ideal and actual identities. submit paper : editor@arseam.com download full paper : 66

4 Ashween Kaur Anand & Dr Sukhvir Singh CORPORATE IDENTITY AND CORPORATE COMMUNICATION: A CASE STUDY OF MARUTI SUZUKI LTD 5.1 Misalignment of the communicated and the actual identities It is now more than three decades ever since Maruti started its operations in the Indian market. At present its actual identity is of a small and medium car manufacturer. Maruti is enjoying the trust of its customers that the management is enforcing. The company has been able to successfully pass on its corporate identity of being a global player. The basic strengths of Maruti are due to its association with its collaborator Suzuki Motors of Japan. Its communicated identity suffered a small threat from 1997 to 2003 due to the intense competition and the rising communication by the rival firms in the market. It is due to the misalignment of its communicated identity with the actual one as the city and regional offices are generally in charge of the communicated identity based on the head office policies. Generally the head office communication policies are not properly understood by the city or the regional offices resulting in the misalignment of these identities. The communicated identities are determined by the regional or the city offices, financial capabilities that can be responsible for the creation of the difference between the two identities. 5.2 Misalignment of the conceived and the actual identities There is a misalignment of the conceived and actual identity of Maruti Suzuki as it is a company which is having the actual identity of a small car manufacturer that is outperforming its rivals in the market. According to the actual identity all the vehicles are regarded as true value for money having reasonable pricing but the conceived identity has different things to suggest. Its conceived identity is that it is manufacturing cars having attributes that do not appeal and even the spare parts are of inferior quality. Even the after sales services are responsible for this kind of misalignment. Therefore Maruti Suzuki requires more innovative products that can help in bridging the gap between these two identities. 5.3 Misalignment between the Ideal and the Actual Identity Maruti Suzuki India Ltd. s actual identity is that of manufacturing reasonable priced cars appealing to a broader proportion of the total population. However its ideal identity should be that there should be wider acceptance and trust from the population. In the Indian market, Maruti Suzuki cars are not getting acceptance by the rich and the upper middle income groups. Even such type of misalignment can be rectified by launching of more innovative products and in making genuine efforts in reaching out to the ideal identity. 6. CORPORATE COMMUNICATION In the present business environment, corporate management understands the importance and the need for corporate identity or the means of its communication. In recent times consumers are trying to seek the products that are having the best quality and that are innovative. Thus it becomes necessary for the companies to get the latest information of the latest developments worldwide by various means. Effective corporate communication would assist in the improvisation of the corporate image and thereby result in better turnovers. Therefore it can be said that in this modern competitive environment the corporate need to understand the strategic usage of the corporate communication and identity rather than mere functional areas. As per Gray and Balmer the communication of the corporate comprises of 3 kinds- a) Primary Communication- This kind of communication influences the service or the product s working or the strategies or the policies of the organizations or the behavior of the workforce. b) Secondary communication- It is the kind of communication that is regarded the policies or the strategies which are being utilized or planned by the organization. It is kind of communication which utilizes the traditional channels of communication like publicity, advertisement, sponsoring or the visual manner of identifying. submit paper : editor@arseam.com download full paper : 67

5 c) Tertiary Communication It is the communication that is having a crucial impact on the third party communication. It comprises of the rivals communication, interpretation by the media or through mouth. Various environmental forces are resulting in the growth of the corporate identity s importance. Some of the environmental forces are as follows: 1. Fastening of the PLC. In the modern business environment customer is modifying its preferences with the introduction of the latest products in the market at a very fast pace. As a result the products are becoming outdated also quickly. For instance in case of the mobile handsets the quick launch of new models makes the previous ones out-dated. This is helping in the growth of the role of R&D department. Only the businesses which are able to make innovation in the latest products as per the requirements of the customers are able to succeed in the market. 2. Privatization activities The trend of companies getting privatized is leading to the problem concerning identity crises. Most of the nations are increasingly having faith on privatization for instance the Indian Government sold of its share in MUL to Suzuki Motors. This was a success as it helped in the sustenance of its reputation by utilizing effective communication of being a global player and producer of eco-friendly and customer oriented products. 3.Mergers or acquisitions or divestitures Most of the companies are choosing these strategies for the purpose of diversifications of its business but such kind of restructuring requires at times the creation of all together new identity for the newly found company by using effective communication that can help it to sustain in the market. 4. Trends of globalization and free trade culture Ever since the phase of globalization has started the companies are trying to diversify their operations beyond their own country s boundaries. These kinds of organizations are able to sustain in global markets by creating a good corporate identity. 5. Better skilled personnel shortage For any business, its human resource are the business assets which are responsible for both its success and failure in the market. Companies having good corporate identities are able to get supply of surplus skilled personnel or work forces that are keen to work in their organization. This is basically a workers psychic income. Moreover the deployment of the best skilled workers has a crucial role to play in the direct or indirect communication concerning the identity of the organization. 6. Besides these environmental forces there are numerous other factors that require the corporate communication and identity to be formulated in the most strategic way. Even the main investors in the share market are influenced in a positive manner through effective corporate communication. Moreover it assists the organization in portraying their image clarity and establishes a positive identity that is crucial for the companies to sustain the stiff competition in the market. As business activities are entirely affected by corporate communication therefore by nature this cannot be regarded as contingent. 7. NEW CORPORATE COMMUNICATION WHEEL D.Bernstein introduced the corporate communication wheel for the first time. This concept tries to detail the various complex issues in corporate communication. Later, there was a modified version of this corporate communication wheel which was launched called as the new corporate communication wheel. submit paper : editor@arseam.com download full paper : 68

6 Ashween Kaur Anand & Dr Sukhvir Singh CORPORATE IDENTITY AND CORPORATE COMMUNICATION: A CASE STUDY OF MARUTI SUZUKI LTD Figure 1: Corporate Communication Wheel There are different kinds of modifications needed in the corporate wheel according to the company s nature of business. Therefore Bernstein was of the opinion that every company needs to have its own wheel as per its requirements. There are certain steps needed in corporate communication to be strategic. They are as follows: 1. The organization requires the identification of the different parties that are requiring the organization s information. These parties can be the consumers or the stake holders or government agencies etc. 2. The organization requires the identifying of the different available channels of communication. As per their costing or the advantages and the targeted audience the different channels can be identified and compared. 3. The various parties interested need to be aligned as per the priorities. 4. Suitable communication channels can be used for effective communication for every party. 5. Based on the industry s image and the origin of the company the corporate communication can be formulated. 6. All the corporate communication is made in relation to each other under the guidance of the overall corporate communication. 8. CONCLUSION Both corporate communication and corporate identity are two sides of the same coin. They are both vital from the strategic point of view as proper communication channel helps in improvising the corporate identity and also helps in facing stiff competition in the market. In this dynamic business environment where the markets are flooded with different brands of products, good corporate identity and corporate communication help in the creation of positive attitude towards the firm and in building a unique image in the market. submit paper : editor@arseam.com download full paper : 69

7 REFERENCES AND BIBLIOGRAPHY Balmer, J. M., & Gray, E. R. (1999). Corporate identity and corporate communications: creating a competitive advantage. Corporate Communications: An International Journal, 4(4), Balmer, J. M., & Greyser, S. A. (2002). Managing the multiple identities of the corporation. California management review, 44(3), Balmer, J. M., & Greyser, S. A. (Eds.). (2003). Revealing the corporation: perspectives on identity, image, reputation, corporate branding, and corporate-level marketing: an anthology. Psychology Press. Balmer, J. M., & Greyser, S. A. (2006). Corporate marketing: Integrating corporate identity, corporate branding, corporate communications, corporate image and corporate reputation. European journal of marketing, 40(7/8), Balmer, J. M., & Soenen, G. B. (1999). The acid test of corporate identity management. Journal of Marketing Management, 15(1-3), Bernstein, D. (1984). Company image and reality: A critique of corporate communications. Taylor & Francis. Van Riel, C. B., & Balmer, J. M. (1997). Corporate identity: the concept, its measurement and management. European journal of marketing, 31(5/6), Van Riel, C. B., & Van den Ban, A. (2001). The added value of corporate logos- An empirical study. European Journal of Marketing, 35(3/4), submit paper : editor@arseam.com download full paper : 70