75 Percent of Multi-Brand Company Executives Report that Parent Brand is As Important as Product Brands

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Jul 24, 2012, 10:00 ET

NEW YORK, July 24, 2012 /PRNewswire/ -- According to a survey by global public relations agency Weber Shandwick and KRC Research, 75 percent of executives at companies that manage products under multiple brand names now believe that a strong parent brand reputation is as important as the company's individual product brands.

Alongside that finding, a majority of these companies have increased their corporate reputation-building efforts in the past few years.

This third installment of Weber Shandwick's global research, The Company behind the Brand: In Reputation We Trust – Multi-Brand Spotlight, explores how executives in companies that market their products under multiple brand names differ from those companies who market mostly under one brand name in their approach to building reputation. It addresses why it may be critical for product brands to be transparent about their ownership, even in cases where a company has made thoughtful and strategic decisions to lessen the exposure of the corporate brand.

The first segment of the study, released in early 2012, reported on the growing interdependence of product brand and corporate reputation in this new see-thru, nowhere-to-hide global marketplace. The findings alerted marketing and communications executives to a tectonic shift in communicating the voice of the "enterprise" to key stakeholders. The survey among nearly 2,000 consumers and executives in two developed markets (U.S. and U.K.) and two developing markets (China and Brazil) was conducted by KRC Research in late 2011.

"For today's well-informed and highly connected consumer, purchase decisions are increasingly based on the company behind the brand and what that company stands for," said Leslie Gaines-Ross, chief reputation strategist at Weber Shandwick. "Historically, multi-brand organizations more extensively marketed their product brands over their corporate brands, but their future success might entail determining how to bring the corporate brand forward to realize the full potential of all their reputational assets."

Increasing Consumer Scrutiny of the Parent Brand

Despite the agreed upon advantage of leveraging the parent brand to enhance the reputation of the product brands, the survey also revealed that many multi-brand executives aren't fully embracing consumers' increased scrutiny of the company behind the products they buy. While more than eight in 10 single-brand executives recognize that consumers are increasingly checking labels and doing research to identify the company behind the brand, significantly fewer multi-brand executives recognize how proactive and discerning consumers are about what they buy.

	Single-Brand Executives	Multi-Brand Executives
Percent completely/mostly agree…
More and more, consumers are checking labels to see what company is behind the product they are buying	84%*	74%
More and more, consumers are doing research to learn about the companies that make the products they buy	85%*	69%
* indicates the group is significantly higher

There is considerable risk in failing to fully appreciate the drive of the consumer to know where his or her money is going. "Unless it is a strategic imperative to reduce the visibility of the parent brand, any product advertising, labeling or additional relevant customer information should clearly identify the enterprise brand," said Micho Spring, Weber Shandwick's Global Corporate practice chair. "Otherwise, consumers are left to do their own investigative work. And, they will do it and announce any discrepancies to the world."

Overlooking Opportunities to Communicate Reputation is Risky

When consumers talk about a company, they most frequently discuss its products. Approximately seven in 10 consumers (69 percent) say they frequently or regularly discuss how they feel about a product they bought. Rounding out their top five talking points are customer service, how employees are treated, company wrong-doing and their feelings about the company as a whole (its reputation).

In line with consumer interests, multi-brand executives say they are promoting company reputation as much as product reputation (81 percent and 80 percent, respectively). However, they fall short of communicating some key drivers of company reputation compared to their single-brand counterparts, particularly how employees are treated. There is a particularly large gap between single- and multi-brand companies when it comes to communicating about their workplace (73 percent vs. 52 percent, respectively). All companies have employees and how those employees are treated matters to consumers. "Companies that are proud of their records for employee satisfaction should not be reluctant to communicate these qualities and tout their awards or placement on 'best of' lists. These credentials help drive the overall reputation of a company, regardless of how many brands it markets, and possibly influence purchasing behavior," Gaines-Ross said.

For more detailed information, please go to our executive summary.

For additional information on our award-winning global services focused on building reputations and brands in an ever-changing transparent environment, please contact Weber Shandwick's Corporate and Reputation services at [email protected].

About the Study
The online research was conducted with KRC Research in October/November 2011 among 1,375 consumers and 575 senior executives in companies with annual revenues of $500 million or more. Respondents were located in four key markets: two developed markets (U.S. and U.K.) and two emerging markets (China and Brazil).

About Weber Shandwick
Weber Shandwick is a leading global public relations firm with offices in 81 countries around the world. The firm has won numerous awards for innovative approaches and creative campaigns, and it has deep expertise in social media and digital marketing. Major practice areas include consumer marketing, healthcare, technology, public affairs, financial services, corporate and crisis management. Weber Shandwick is part of the Interpublic Group (NYSE: IPG). For more information, visit http://www.webershandwick.com.

About KRC Research
KRC Research is a full-service market research firm that specializes in the kind of research needed for effective communications—communications that reach, engage and persuade. A unit of the Interpublic Group of Companies (NYSE: IPG), KRC Research offers the quality and custom service of a small firm along with the reach of a global organization. For over 30 years, KRC Research has worked on behalf of corporations, governments, not-for-profits and the communications firms that represent them. Staffed with market research professionals from the worlds of political campaigns, consumer marketing, journalism and academia, we are flexible, practical, creative, knowledgeable and fast, combining sophisticated research tools with real-world communications experience. For more information, visit www.krcresearch.com

Contact:
Rachel Manfredo
Weber Shandwick
1-212-445-8171
[email protected]

SOURCE Weber Shandwick