CREATING CORPORATE VISUAL IDENTITIES A case study approach

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CREATING

CORPORATE VISUAL IDENTITIES

A case study approach

E. Schutter University of Groningen Faculty of Economics & Business

Master’s degree program Strategy & Innovation

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ABSTRACT

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1. Introduction

The battle for consumer attention is intensifying ever more. Logos, color and slogans are important weapons that companies can use to get this much wanted attention. It is a fact that our brain is better in remembering and recognizing shapes and colors than just words (Wheeler, 2003).

The logo is the most important form that a company can use to draw attention. Organizations like Apple, McDonalds or Nike need only show their logo and consumers automatically come up with of all kinds of brand associations. The logo functions as a simple visual representation of the entire corporation. Some companies have even managed to associate themselves with just one color; IBM (blue) or Kodak (gold) are well known examples. Meanwhile T-mobile is trying to claim the exclusive right to use the color magenta. Also font types can be used in such a way that they are linked to a company. Helvetica for instance is a font often used by American corporations, such as 3M and American Airlines.

All these visual elements can be very powerful tools that help to draw consumer attention and construct favorable brand associations. It is very important however that these visual displays are consistent with the actual product or service proposal of the organization and with the corporate brand itself. A misfit can lead to confusion, false expectations and dissatisfied stakeholders and should therefore be prevented.

It can be very difficult for marketing managers and graphic designers to come up with the right kind of visual appeal. It can be even harder to come up visuals that correspond with the values the corporation holds high and wants to communicate to its stakeholders. Because visual identities are so important for the success of companies, it is worth investigating the process of their creation. Especially when one considers that back in 1994 USA based companies alone spent $120,000,000 on the creation and implementation of logos (Anson, 1998).

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viewed by external stakeholders and with the future of the organization but also with the communication design agency and its view on how CVIs should be designed.

The main research question is ‘How is a new corporate visual identity designed by a communication design agency, and what aspects have an influence on the outcome of the design process?’ To answer this question a number of sub-questions will have to be addressed. These include:

• What is a corporate visual identity and what is its importance?

• Which factors influence the process of establishing what a new CVI should communicate?

• What is the role of the communication design agency in the process of establishing what a new CVI should communicate?

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2. Corporate Visual Identity

This chapter explains the importance of Corporate Visual Identity. The first section provides a short introduction on corporate marketing. The second section introduces and defines factors that are expected to be important as providers of input for the creative process that is researched; these concepts are corporate identity, strategic vision and corporate reputation. They form the foundation of a corporate brand (Hatch and Schultz, 2003). The third section deals with the concept of corporate visual identity. The chapter discusses the relation between the concepts of corporate identity, strategic vision and corporate reputation. It also discusses their role in the process of selecting what a new CVI should communicate. The final section deals with managing the process of getting a new CVI. The section also provides a conceptual model which includes the variables that influence the process of CVI creation.

2.1 Corporate Marketing

This research is placed in the field of corporate marketing. Corporate marketing is becoming a new marketing paradigm (Balmer, 2001a). It is no longer the product that is branded, but the entire corporation moves center stage. Corporate marketing is of strategic importance to the organization because the corporate brand relates to all the corporate stakeholders and it has a great influence on the internal organization (organizational structure and culture for example) (Hatch and Schultz, 2001, 2003). By comparison, the importance of product brands is functional for the company because it is only important for the sales and marketing departments. Corporate marketing differs from product branding in a number of other ways also (see Table 1).

A brand is defined as a “cluster of functional and emotional values, which promise a particular experience” (de Chernatony, 2002). A good corporate brand not just promises a particular experience but also stimulates associations with the companies past and contains an element of what is to come in the future (Olins, 1989). Corporate brands therefore are constructed using the vision of management, which is concerned with the future, and its heritage which is partly represented by what the company is about. Brands are externally perceived by its stakeholders, and thus also need to consider their reputation.

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of what the organization’s identity is. Corporate Identity is the most frequently used concept to describe this.

Table 1: Differences between corporate branding and product branding (Hatch and Schultz, 2003)

Product brands Corporate brand

Focus attention on The product The company

Managed by Middle Manager CEO

Attract attention and gain support of

Customers Multiple stakeholders

Delivered by Marketing Whole company

Communications mix Marketing communications Total corporate communication

Time horizon Short (life of product) Long (life of company) Importance to company Functional Strategic

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Figure 1: Model of the corporate identity management process (Stuart, 1999)

The first part of the model, within the square called ‘Organisational Culture’, is concerned with the organization and how it perceives itself. The part right of the square deals with how the organization is perceived by its external stakeholders. This research does not view the corporate strategy, and related to this the top management vision (the second column in figure 1), as something that precedes corporate identity. The research views the three concepts as related and assumes that they influence each other. The following sections discuss these three important concepts: the identity of the organization, the strategic vision and how the organization is perceived externally.

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organizational culture is something that is managed internally, but it is, at least partially, influenced by its external environment.

2.2 Building the Corporate Brand

2.2.1 Corporate Identity

Corporate marketing triggered an interest in capturing the elements that define the identity of the organization. Many concepts have been introduced by researchers in order to describe the corporation its ‘private self’. The concept that is used most often is that of corporate identity but it is clearly not the only one. Table 2 gives an overview of some concepts presented by several authors that try to define the identity of the corporation.

Table 2: Corporate Identity and related concepts – perceived by internal stakeholders

Concept Author Description

Corporate Identity Schmitt and Simonson (1997) The degree to which the firm has achieved a distinct and coherent image in its aesthetic output. Corporate Identity Van Riel (1997) Self presentation of an

organization, rooted in the behavior of individual members, expressing the organization’s “sameness over time” or

continuity, “distinctiveness” and “centrality”.

Corporate Identity Balmer (2001a) A summation of those tangible and intangible elements that make any corporate entity distinct.

Corporate Identity Balmer, Bernstein, Day, Greyser, Ind, Lewis, Ludlow, Markwick, van Riel, Thomas (1995)

Strathclyde Statement:

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individuality that can help to differentiate the organization in its competitive environment. Organizational Identity Albert and Whetten (1985) Organizational Identity consists

of the organization’s central, distinctive and enduring aspects. Organizational Culture Hatch and Schultz (2003) The internal values, beliefs and

basic assumptions that embody the heritage of the company and communicate its meanings to its members; culture manifests itself in the ways employees all through the ranks feel about the company they are working for.

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concept of corporate identity and defines it as follows: corporate identity is based on what the organization views as the corporate values, aims and ethos and is that which makes an organization distinct. It is externalized by all corporate communications, including visual identity, behavior of personnel and by the actions made by the organization.

For the purpose of managing corporate identity Balmer and Soenen (1999) make a distinction between 4 types of identity:

• Actual Identity

• Communicated Identity/Conceived Identity • Ideal Identity

• Desired Identity

Actual identity refers to the values held by staff and management and to how these are made concrete. This can be traced in product type and quality, performance and behavior of the organization and behavior of internal stakeholders. In this set of different identities actual identity is the same concept as corporate identity.

Communicated identity is a dual concept. Balmer (2001a) later separated it into communicated and conceived identity. How the organization is viewed by its external stakeholders is called the conceived identity. It is influenced by the reputation of the country of origin, the reputation of the entire industry and other external factors. It is presented in this section because it is included in the original ACID set by Balmer and Soenen but because it deals with how the organization is perceived and therefore could also be discussed in the following section. Communicated identity deals with how the identity is communicated using total corporate communications.

Ideal identity is a conceptual identity that represents the ideal identity for an organization at a given moment. Of course it is hard to determine what a perfect identity should be but thinking about the ideal identity can help the organization focus on key aspects of their corporate identity. Desired identity is the identity the management has envisioned for the organization. It can be found back in the corporate mission or in other communications made by the management. Fantasies of this identity are “hidden, but powerful realities” (Balmer, 1999). It connects closely to the notion of strategic vision discussed below.

2.2.2 Strategic Vision

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what the organization will become in the future.” When changing the strategic vision it is important that this stays connected with the heritage of the company. Successful companies redefine and reinvent their core values in order to come up with a new vision, not by creating a revolutionary vision (Hatch and Schultz, 2003). Although it is closely related to the notion of desired identity discussed earlier, strategic vision should have its foundation in the corporate identity. It must be backed up with some rational argument whereas desired identity could be just a managerial fantasy. Strategic vision is part of the organizational strategy and expressed by its mission statement.

2.2.3 Corporate Reputation

There is a difference between the corporate identity, which is the self-perception of the organization, and how this is perceived by important external stakeholders. This section discusses important concepts that deal with the externally perceived organization. Table 3 gives an overview of these concepts.

Table 3: Corporate Reputation and related concepts – perceived by external stakeholders

Corporate Image Gray and Balmer (1998) That which comes to mind when one hears the name or sees the logo of a particular firm. Corporate Images Hatch and Schultz (2003) Views of the organization

developed by its

stakeholders; the outside world’s overall impression of the

company including the views of customers, shareholders, the media, the general public, and so on.

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interpret a company’s initiatives and assess its ability to deliver valued outcomes.

Corporate Reputation Gray and Balmer (1998) Corporate reputation […] indicates a value judgment about the company’s attributes.

The main difference between image and corporate reputation is that image is a individual’s impression, whereas reputation is a collective impression. In this regard the concept of Corporate Images by Hatch and Schultz (2003) is connected to corporate reputation rather than image. Einwiller (2003) states that reputation emerges when information about an object (in this case an corporation) spreads via a network. As reputation is a collective impression, it is more difficult to change than image. Additionally, because reputations emerge via social networks it might be that they cause a bandwagon effect and individuals no longer create an image for themselves but adopt the socially accepted reputation. Changes in reputation however can be made by changing the image stakeholders have. When stakeholders change the image they have of the corporation, the reputation will gradually change too. Reputation is formed outside the organization and is the view of external stakeholders. It equals the concept of conceived identity discussed earlier. A solid and positive reputation can be a valuable strategic resource for a corporation. Dowling (2006) summarizes the benefits of a good reputation: sales go up because customers find it easier to choose the brand by conjuring positive associations and because of the consumer willingness to pay extra for the product or service because of the ‘performance bond’ posted by the company. A company can also use its reputation as an umbrella, launching new products that immediately benefit from the positive associations customers have with the company. A good reputation creates customer loyalty, which decreases variance in sales. Next to improved sales a good reputation increases the length of the period in which a corporation can enjoy profitability (Roberts and Dowling, 2002) and it makes attracting investors and good personnel easier.

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• Employees (who are internal stakeholders, so this group is not relevant when the concept of corporate reputation is discussed)

• Customers • Investors • Suppliers • Partners • Regulators • Special interests • Local communities

2.3 Creating a Corporate Visual Identity

2.3.1 The Concept of CVI

Corporate Visual Identity is an important part of the corporate identity mix. Melewar and Jenkins (2002) have established that the common parts of the Corporate Identity mix in academic literature are:

• Communication and Visual Identity • Behavior

• Corporate Culture • Market Conditions

The CI mix can be used to manage the corporate identity in order to make sure that the desired identity and the actual identity are properly aligned in the corporate brand. Especially behavior, communication and visual identity can be used to influence the corporate reputation. Melewar and Jenkins admit that the different elements will sometimes overlap. Also elements of the corporate identity mix can influence each other, which makes it more difficult to distinguish them from each other. Van Riel and Balmer (1997) have proposed a CI mix that includes behavior, symbolism and communication but for this particular research the CI mix of Melewar and Jenkins is used, as it gives a more prominent place to visual identity.

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Table 4: Corporate Visual Identity

Corporate Visual Identity Brooks, Rosson and Gassmann (2005)

Corporate Visual Identity consists of corporate name, symbols and/or logo types, slogans, typography and colors. Corporate Visual Identity Balmer (2001a) The way a company presents

itself through symbols (e.g. logo) and words (e.g. name).

Corporate visual identity is an important element in the corporate branding effort. Shapes, colors and company name are important elements of total corporate communications. They can be used to communicate the corporate values to internal and external stakeholders. For example financial service providers, for whom corporate branding is very usable since it is hard to differentiate in product offerings, can make use of their CVI to draw consumer attention towards the company and its corporate values (Berens, van Riel and van Bruggen, 2005). Also for Virgin, the famous UK-based company, CVI is an important instrument in its corporate branding effort. Consistent use of the graffiti-style fonts allowed Virgin to transfer its brand values to its different business units (Olins, 2000).

2.3.2 CVI and Brand Values

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organizations try to link corporate values to their brands (King, 1991; Mitchell, 1994). As values, incorporated in these three concepts, give an organization its distinctiveness it is also logical that these concepts are used.

The concepts of corporate identity, strategic vision and corporate reputation are crucial input for the corporate visual identity design process. These concepts should be aligned (de Chernatony, 1999). He states that visible artifacts such as logos, building architecture and office design are part of the corporate culture and need to be audited regularly to make sure they communicate the same message. When visible artifacts originate from the same underlying values the chance of misalignment becomes less probable, and the corporate brand remains credible.

It is established that in the case of a corporate brand, brand values are part of (a) the corporate identity (which determines which values are nurtured within the organization and are viewed as typical for that organization internally), (b) strategic vision (which articulates which values should be delivered, now and in the future, by the organization) and the (c) corporate reputation (which deals with the values attributed to the brand by its external stakeholders). A mismatch between the external perception of the corporation and the character of the brand is called a “projection gap” (Schmitt and Simonson, 1997). Such a gap can lead to a less than optimal brand performance. Schmitt and Simonson even go as far as stating that an aesthetic brand strategy will fail without investigating the private self, the mission and vision, the personality and core competencies first.

Hatch and Schultz (2001, 2003) stress the relatedness of the culture, vision and image of the organization. These concepts correspond with corporate identity, strategic vision and corporate reputation respectively. Misalignment of one of these elements can cause damage to the brand, as they illustrate using the case of British Airways. Hatch and Schultz (2001, 2003) discuss 3 types of misalignment:

• The vision-culture gap. This gap typically emerges when the vision of the management is to ambitious to implement for the organization.

• The image-culture gap leads to confusion among customers about what the company stands for.

• The image-vision gap creates a conflict between how the company is perceived by its stakeholders and the vision of the management. When a company’s vision is not aligned with what the customer expects from it, problems will arise.

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corporate identity and corporate reputation) are interrelated makes it crucial that all three of them are considered when providing input for the new corporate visual identity. A projection gap can come into existence when one of them is neglected thus diminishing the success of a new CVI. On the other hand, when given proper attention these concepts provide valuable input when a new corporate visual identity is made. When they are used the resulting CVI supports the consistency of the corporate brand and clearly communicates its values. Such a CVI would be a valuable strategic asset indeed.

2.3.3 Managing CVI creation

The reality of the CVI creation process is often different from what is described above. Balmer and Soenen (1999) discovered that many new CVIs, as part of identity change programs, are meant to communicate a new identity to internal and external audiences. This changed identity is the one the management has in mind for the company. This makes CVI change solely based on strategic vision: the management apex envisioned what the company should be and consultants translated this vision into a new CVI. Therefore Balmer (2001a) concludes that most identity change programs had an overtly corporate communication and design emphasis. It might not be recognizable for customers and it might cause skeptical employees because of the difference between reality and what the CVI tries to carry out. The result of such a process certainly will not be a visual identity that reaches its full potential.

Because of the substantial investments that are usually made to create a new corporate visual identity and broadcast it amongst company stakeholders, it is important to carefully manage the CVI creation process. The problem described above is an important one but the reality of CVI creation knows more difficulties.

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visual identities and collects them into a pool for their customer, this gives them an important role in the process of coming up with a new CVI. It is also expected that the communication design agency plays a role in establishing what the new CVI ought to communicate apart from being an objective collector of values: the graphic design agency its strategic view and its specialization however can influence which values are selected. Also the experiences of the communication design agency can influence the selection process. All in all it seems reasonable to assume that communication design agencies have a strong influence in the process of establishing what a new CVI is going to communicate. The research will test this assumption. The factor is included in the conceptual model as ‘influence of communication design agency’(d).

A company can have different reasons to adopt a new CVI. Henderson and Cote (1998) list some of these reasons:

• a merger or acquisition

• divestitures or movement into global markets • managerial or strategic shift

• retain a fresh, modern look

Whatever the motivation will be, it will influence the focus of the process. A managerial or strategic shift as motivation for changing the CVI will probably mean that the concept of strategic vision receives extra attention during the establishment of the values that must be carried out by the new corporate visual identity. Or when a projection gap is detected the unaligned factors will probably receive extra attention in order to establish a common ground that can be used to construct the new visual identity. It is assumed that a variable ‘the reason for CVI change’ (e) will influence the selection of brand values.

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reputation so probably will try to influence the process of establishing what a CVI should communicate more than companies that do not give as much attention to these factors. This assumption will be tested using the variable ‘importance of CI, strategic vision and corporate reputation’ (f).

Based on the literature discussed above the process of establishing what the CVI should communicate is modeled, along with the factors that influence this process.

Figure 2 - conceptual model for establishing the CVI message

2.4 Summary

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The chapter also dealt with the influence of the communication design agency, the reason for CVI change and the amount of attention for CI, strategic vision and corporate reputation by the customer organization. It is expected that these variables also have influence on the CVI formation process. The conceptual model, displayed in figure 2 shows all the used variables.

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3. Research Design

3.1 Methodology and Data Collection

A case study approach was used to construct the new theory about the designing of CVIs. This approach is preferred as cases provide rich information that is useful for the initial stages of theory building. Eisenhardt (1989) states that usually any number of cases between four and ten is sufficient for this type of study. This research includes five cases to test the variables included in figure 2. Due to time constraints it is hard to include more cases. Additionally the research focuses specifically on communication design agencies so the findings of these cases should be enough to allow for some generalization.

Because it is especially interesting to see how professional CVI development is carried out only the larger communication design agencies were included in the sample. Each case was used as a stand-alone entity in order to prevent premature conclusions. The findings of the within-case analysis were compared in a cross-case search for patterns. I have tried try to explain conflicting findings by analyzing differences between the cases involved in the study.

Multiple data collection methods were used in this study. Sources of data include interviews, magazines, websites, articles and internal documents. Using multiple data sources allows the use of triangulation; using a combination of methodologies in the study of the same phenomenon (Denzin, 1978). Triangulation helps to make the findings more reliable and improves their validity. Furthermore it prevents that findings are attributable to a single method artifact (Jick, 1979). This ensures that the resulting theory becomes more reliable.

The interviews were semi-structured. This gives the freedom to investigate certain unexpected answers further and it makes sure that the interview questions do not force the acquired data in a certain direction. One specific assignment done by the communication design agency will be discussed during each interview. Each interview had the duration of approximately one hour and was recorded using a memo recorder. Later the interviews were transcribed and analyzed to help build the cases.

3.2 The Sample

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building effort in their activity portfolio. The agencies from the sample have been selected using a number of criteria: CVI design needed to be an important part of their portfolio, the agency needed to have large and professionally run customer organizations (as a confirmation of the communication design agency’s reputation) and of course the agency needed to be willing to cooperate. The selection was made using suggestions from experts from the graphic design industry, mostly employees from communication design agencies that were consulted before the sample was determined. Using this ‘peer selection’ made sure that only respected and professional agencies were included in the sample. The selection of recommended agencies was approached in order to ask for their cooperation. In total seven agencies have been approached and five of them were willing to cooperate and were able to provide information to build a relevant case. The selection ensures that the findings indicate how corporate visual identities are built in the Netherlands on a professional level. The following paragraph provides a description of the communication design agencies that are in the sample.

The CVI change in the first case has been carried out by a communication design agency that was founded in 1994. It now has 20 employees divided between two offices; one in the north and one in the west of the Netherlands. All customer organizations are from the Netherlands and come from different sectors. Among its customers are magazines, airlines and organizations from the energy sector. The agency is active in all forms of graphic design, both for printed media and digital: CVIs, websites, magazines, posters, CD covers, books, brochures and more. When a new CVI is designed employees of the agency always talk with the customer organization, usually the CEO, in order to formulate a document that describes what the CVI should express. Sometimes external strategy consultants are involved in the project to help doing this.

The second communication design agency, consulted to construct the second case, focuses specifically on developing brand identities and CVI design. It has two directors: one designer and one strategically oriented person. It was founded in 1983, has 35 employees and is based in the west of the Netherlands. In order to formulate brand identities of customer organizations the agency has developed its own method which can be used to extensively map the customer organization. Since 2004 the agency also involves external stakeholders of the customer organization in the projects it carries out. Its customer portfolio consists of Dutch organizations from many different sectors; financial services, government and retail are some of the more important ones. Important customers are a governmental organization, a large chain of supermarkets and a financial service provider.

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the west of the Netherlands. Its customers are international and national organizations. Important sectors for the agency are the governmental sector, the financial services sector and the cultural sector. The agency does not work for the retail sector. Important customers are a large municipality, a Dutch railway company and a investment company. The agency is well known for its ability to consistently carry out the identity of its customer organizations. The agency has won the Dutch Design Award in 2006 for the CVI that is discussed in the third case. Also in 2007 the agency won a European Design Award for an exhibit it designed.

In the fourth case, the CVI change project discussed was carried out by one of the largest communication design agencies in Europe. It was founded in 1963 and has 120 employees. It started as a graphic design agency but at the end of the nineties it shifted its focus towards corporate identity. The agency consults its customers on all aspects of corporate identity and, as a part of this, designs CVIs. Customers are mostly national but some international organizations also belong to the agency’s customer portfolio. The agency has three offices in the Netherlands and one office in Belgium. Most of its customer come from the service sector, followed by trade and commerce, the third important sector is the government. Some large customers are a national Dutch newspaper, a large non-profit organization, and an airline. In 2005 the agency won the Red Dot Award, a German award rewarded by the Design Centrum Nordrhein Westfalen.

The last communication design agency that was involved in this study calls itself a multidisciplinary design agency. Next to graphic design its portfolio also includes industrial design, architecture, and multimedia design. It has some 85 employees and has its office in the southwest of the Netherlands. The agency started in 1992. It has won awards for many of its works, including the European Design Award, the iF Communication design award and the Best of the Web Award. Important customers are the Dutch government and a large chain of supermarkets.

The following table provides an overview of who were interviewed. Each interviewee was selected because he or she was involved in the CVI change process from the start to the end, and therefore was a rich source of information.

Table 5: interviewed personnel for cases

Case Number Number of people interviewed Function

1 2 Project manager, Designer

2 1 Account manager

3 2 Senior project manager, Senior communication

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4 1 Managing director

5 2 Design director, Advisor

Because of time constraints I choose to only contact communication design agencies. Personnel of customer organizations was not interviewed because of this. Because customer organizations and communication design agencies could not be approached both, the research has used communication design agencies as the most important source of information; they have extensive experience and knowledge concerning CVI changes.

3.3 Industry Description

According to the statistics there are some 47,000 people who work in the design industry in the Netherlands (Centrum voor Beleidsstatistiek, 2007). The sector within this industry that is of particular interest for this study is labeled ‘communication design’ as it includes the graphic design companies. This sector includes publicity agencies and publicity design, and -consultancy agencies (Standaard Bedrijfs Indeling, 2003). It employs 80% of the population of 47 thousand. More than 50% of the Dutch designers have not completed any design study. Also 75% of all people who have an educational background in design are not employed as a designer, but some of them have jobs that are related to the design sector. The sector is heavily concentrated in Amsterdam.

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number of design agencies in the Netherlands 10000 10500 11000 11500 12000 12500 13000 2000 2001 2002 2003 2004 2005 year n u m b e r

number of design agencies

Figure 3: number of ‘communication design’ agencies (CBS, 2007)

3.4 Measures

All relevant concepts must be defined precisely in order to be able to create reproducible results. In this section important concepts are defined and described. The specification of corporate identity, strategic vision and corporate reputation is particularly crucial as these are interrelated and need to be disentangled in order to get a clear view of their particular influence on the process that is being studied. This section also discusses how the influence of these factors will be measured during the research. Additionally specifications will be given on how (a) the influence of the communication design agency, (b) the influence of the motivation for CVI change and (c) the influence of the amount of attention for corporate identity, strategic vision and corporate reputation by the customer organization will be measured as objectively as possible.

It must be noted that this study has not tried to make an exhaustive list of variables that influence the process of CVI creation. Only the variables that are expected to be the most important during the studied process have been used. The importance of these variables is grounded in the literature used in the second chapter.

3.4.1 Corporate Values

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brand values of the corporate brand. These are the values that need to be communicated by the new CVI in order to establish or reinforce the corporate brand. Therefore what needs to be measured first in each specific case is which values were selected and used to develop the new CVI. The motivation for these values will be researched to determine where they originate from.

3.4.2 Sources of Corporate Values

Corporate identity

This research uses the following description of corporate identity: corporate identity is based on the corporate values, aims and its ethos and is that which makes an organization distinct. It is externalized by all corporate communications, including visual identity, behavior of personnel and by the actions made by the organization. It is investigated whether CI plays an important role in the CVI formation process by examining how much attention the communication design agency has for this concept. A communication design agency can study the CI by interviewing employees from different layers of the customer organization, by taking surveys, by examining the customer organization’s past and behavior of personnel and management. Also using research on the corporate identity of the customer organization performed earlier is a good way to get insight in the CI. Special attention will be given on whether agencies really contact employees of the customer organization in studying CI or limit themselves to inquiries addressed at marketing or corporate communication managers. It is assumed that involving more employees in the CI exploration gives better and more reliable results. A selection of methods used to identify corporate identity is presented by van Riel and Balmer (1997). This selection includes (a) heuristic analysis of the organization’s roots and of conflicts within the organization, (b) the laddering technique, (c) Balmer’s Affinity Audit and (d) the Rotterdam Organizational Identification Test. Use of one of these methods by the graphic design agency is a strong indicator of the central role of corporate identity in the CVI creation process.

Strategic Vision

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organizational strategy is leading and the acquired information from the management fits the customer organization’s strategic history. Communication design agencies run the risk of using information that does not really concern the strategic vision, when this step is omitted.

Corporate Reputation

Corporate reputation is described as follows: “corporate reputation indicates a value judgment about the company’s attributes by external stakeholders”. It is important to notice that corporate reputation is a collective impression of the organization by all its external stakeholders. This does not only include customers but also other parties which deal with the customer organization. These parties can be investors, employees, politicians and more. When a graphic design agency includes corporate reputation in the process of establishing brand values, it is relevant to see whether the perceptions of all key stakeholders are identified and how this is done.

3.4.3 Variables that influence the process of value selection

Next to the concepts mentioned above, three other variables are formulated. The role of these variables can be uncovered by questions that concern the motivation to include some of the corporate values and omit others. The three variables that are expected to influence the focal process are:

• Influences of the communication design agency

These influences can originate from the way the process is carried out by the communication design agency. Henderson and Cote (1998) give the example that the communication design agency creates a pool of CVI options from which the customer organization chooses one. This is a good example of how the communication design agency can steer the process. It is also possible that the communication design agency prefers certain values because these can be translated to a CVI design easily or give a strong effect when used in a CVI. Whether this influence exists is investigated using the interview in which questions will be asked about these topics.

• Reasons for CVI change

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• Amount of attention given to corporate identity, strategic vision and corporate reputation by the customer organization

The influence of this variable is tested by investigating whether the customer organization pays much attention to these concepts. This is measured by asking the communication design agency about the amount of information it received from the customer organization on its corporate identity, strategic vision and corporate reputation. When the customer organization has researched these concepts and provided the communication design agency with the results of these investigations, it is a strong indication that the customer organization has attention for these concepts.

Also when the communication design agency is instructed in detail on what the new corporate visual identity should communicate and does not receive much freedom in this process it is a strong indication that much attention is given to these three concepts. When this information is used extensively by the communication design agency it indicates that this variable has an influence on the CVI creation process.

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4. Cases

This chapter presents the results of the five case studies. Each case starts with a short description of the customer organization and the reason for the CVI change. Although this variable is one of the last concepts in the conceptual model, it is discussed early in order to improve the readability of the cases. The third section describes the process and how this was carried out by the communication design agency. Then the role of every factor from the conceptual model is discussed. Finally a case summary is given which presents the importance of these factors in each case.

4.1 Revitalizing the corporate visual identity of an educational institution

4.1.1 The Organization

A large educational institution is central in this case. It has an annual budget of more than 500 million euro and the organizations employs 4100 people (Annual report 2006). The organization noticed that it operated in an environment that was changing rapidly; due to changes in Europe its market became more international. The organization nowadays needs to compete with similar European institutions and focusing on the national market is no longer enough. This new and international element is crucial in the strategy that is formulated in the strategic plan 2003-2010 (2003).

The former CVI dated from 1989, the new CVI has been introduced in 2007. The previous change did not provide a very extensive corporate visual identity.

Due to increasing competition and the opening up of international markets, the organization needed a strong corporate visual identity that allowed the organization to distinguish itself and to stand out both nationally and internationally. The strategic management of the organization had formulated the ambition to belong to the group of fifty of the best comparable organizations in Europe.

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problems in the counting of the total number of publications made by the organization in order to compare it with its competitors (according to the interview).

In order to create one clear identity the organization decided to adopt a new corporate visual identity that was to be used by all the departments. The new CVI should made it possible to clearly position the customer organization and should help realizing the formulated strategy.

4.1.2 The Project

Because of the extensiveness of the assignment, the customer organization first created a starting document with an external party that specializes in managing visual identities. This confidential document described what the new CVI should communicate. It was used to describe the desired identity and was mainly founded on the strategic vision of the customer organization. The international ambition received much attention. The project manager could not recall whether input from external stakeholders was acquired when this document was created. The agency itself had not contacted external stakeholders of the customer organization.

After the pitches, the board of directors, members of the communication department of the customer organization and visual identity coordinators of the other departments chose one communication design agency to develop the new visual identity. The assignment stated that the new CVI needed to give a young and recognizable face to the organization’s rich tradition and history. Furthermore the new visual identity needed to be “unambiguous, (inter)national, distinguishable and recognizable.” Additionally one of the demands was that the coat of arms, part of the visual identity since the organization was established, had to be retained.

Some modifications were made to the brand values by the communication design agency too. Spaciousness has been emphasized more strongly by the agency after some meetings with members of the customer organization because they found it very important. Space as a brand value was not explicitly mentioned in the start document. Also passion was added as a brand value. The project manager: “passion was a feeling we got from the briefing.”

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The communication design agency studied the use of colors by national competitors and prestigious comparable international organizations. They found that the national competitors mostly used blue and grey as important colors whilst internationally warm and classical colors were more often used. This led to the decision to use a more international color scheme. The color was already present in the original coat of arms but not very prominent. The selected color also supported the notion of passion discussed earlier.

Remarkably, the project manager tells that: “with this customer we had the advantage there was no strong sense of what their identity was.” Nevertheless, because of the fact that a very thorough document was created by an external party, many things were not negotiable. All in all the interviewees are content with the start document, because, according to them, it formulates what the customer organization is about.

Typically when the communication design agency receives a new assignment they typically have a meeting with members of the customer organization and sometimes with an external strategy expert. In this meeting the customer requirements are formulated. In the interview the project manager also indicated that it is important that a new corporate visual identity should make sense in the field of the customer organization: its customers must recognize it and it must be distinguishable from its competitors. But eventually the customer organization decides so the product must conform to its expectations mostly (according to the interview).

4.1.3 The Role of Corporate Identity

In the start document (that was made before the communication design agency was involved) the strategic vision of the customer organization was crucial. Also it indicates that there was no strong sense among personnel of what the corporate identity is about.

Additionally, the key terms (unambiguous, (inter)national, distinguishable, recognizable) that were used to describe the desired visual identity are not typical for describing a corporate identity, as defined elsewhere. Except for the term (inter)national, they are too functional to be used as corporate values that are embedded deep in the organization and the mindset of its employees. They do not relate to ethos or aims either.

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4.1.4 The Role of Strategic Vision

The new visual identity was important to help achieve the strategic goals formulated by the customer organization. Especially internationalization was a prominent term when the ambitions were discussed. To go even further: the international ambition formed the foundation of the start document that was used during the briefing. This is a clear indicator of the importance of strategic vision in the design of a new corporate visual identity.

4.1.5 The Role of Corporate Reputation

It is unclear whether external parties have been consulted in order to come up with input for the CVI design process. The communication design agency itself indicated that it has not done this for this specific case. Also the project assignment showed no input that was likely to come from external stakeholders. Thus, the input of corporate reputation is probably limited.

4.1.6 The Influence of the Communication Design Agency

The influence of the communication design agency was considerable. It is responsible for the translation of words into a CVI. Also the communication design agency made some adjustments to the brand values that were selected or made some of them more prominent; spaciousness and passion were incorporated in the CVI. The communication design agency was inspired to use these values after interaction with the customer organization. Both values appear to be easily translated visually.

By proposing three different directions for the CVI, the communication design agency indicates it explores the freedom it had when developing the new visual identity. Additionally, by showing a modified coat of arms, the agency eventually received permission to make adjustments to it. This made it possible to make it more spacious.

4.1.7 The Reason for CVI change

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4.1.8 Attention for CI, Strategic Vision and Corporate Reputation by the Customer Organization

The interviewees mentioned that the customer organization did not possess a strong corporate identity. This is of course a strong indication of the degree of attention the customer organization has for this concept. The strategic vision does receive attention and in 2003 a formulated strategy, including a strategic vision, was publicized. This document, or at least some of the strategic ambitions, also formed the basis for the start document that was made. The organization does annually map how satisfied its customers are. It is unknown whether these results played an important role here. Normally the communication design agency pays attention to the way external stakeholders view the customer organization but in this case this was not done.

4.1.9 Case Summary

The values that were important for the development of the CVI were (inter)national, spacious, passionate and the rich history. For the development of a new CVI corporate identity played a moderately important role. Strategic vision played an important role. Corporate reputation was unimportant. The role of these three variables is estimated based on the information provided by the communication design agency and the formulation of the assignment used during the briefing. This assignment was formulated by the agency using input from the customer organization and the start document written by the external party. Whether corporate identity and corporate reputation were taken into account by the external party that created the start document is unclear. But because it could be established what the communication design agency used as input during the process this does not weaken the case.

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4.2 Realigning one of the strongest brands in the Netherlands

A large association founded in the 19th century approached a communication design agency in 2004 with the request to adjust its visual identity. This organization is viewed as one of the largest associations in the Netherlands and almost had 3.9 million members in 2006, despite the fact that the organization has been confronted with a decline in members since 2004 (Annual Report 2006). The turnover in 2006 was 917 million euro and the organization employs more than 3800 people. Its most important sources of income are insurance, road assistance and activities as a travel agency. Compared to 2005 insurance was responsible for a larger percentage of the total revenues (figures 2006-2007, 2006). The original logo and visual identity were created in 1981. In 2004 the organization was seriously confronted with competitors in one of its core activities for the first time. That year the customer organization also decided it needed to realign its brand. The problem the association was confronted with was that it was perceived as an insurance company; very reliable and businesslike. The very well known CVI reinforced this reputation. However, they wanted to be seen as a partner for travel also. The organization its activities as a travel agency needed to be made more prominent. To do that the brand identity needed other brand values like comfort and joy. The account manager that was interviewed for this case pointed out the importance of not disregarding the old. So the old identity needed to remain intact but some additions were also needed. Due to the high costs of replacing it, the logo itself needed to remain unchanged.

It was probable that the insurance like image was caused by the activities of the organization in the fields of road assistance and of course insurance. So to change the way the organization was perceived, a more emotional and humane side had to be shown.

4.2.2 The Project

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values. Together with the board of directors the communication design agency tried to formulate the desired identity of the customer organization.

Two or three proposals were developed based upon the wishes of the customer organization, ranging from conservative to a bit more daring. The communication design agency even developed new logos for their customer in an attempt to convince them into changing their old logo. Unfortunately, this strategy did not work and no permission to design the logo was given. The communication design agency often works with directors or entrepreneurs who have a very strong vision of what they are and what they want to become. The account manager: “When there is a gap between the view of top management and that of the employees, there are often problems of an entirely other nature then just a bad visual identity. That is tricky for us because we are an advising party and eventually the customer decides what will happen. We can try to push or advise in a certain direction but ultimately it is up to the customer to decide.” However, things are changing. Nowadays it is normal that the communication design agency talks to as much personnel as possible in order to create a clear picture of the corporate identity. For this particular assignment this was not possible: “the strategic vision was used only for this assignment.” This also meant that corporate reputation was kept outside the scope of the project. Since 2004 the communication design agency is also more concerned with the corporate reputation of the customer organization: its customers are asked about their opinion, along with suppliers and other external stakeholders (according to the interview).

The communication design agency developed the following modifications to the CVI: a new color was added to the visual identity and dots, that represented geographical locations, were added. These dots are now consistently showed as a background for the logo of the customer organization. Also the communication design agency proposed that advertisements in the company magazine should become less functional and more emotional. Instead of just showing a product and its price now the emotion behind the product has become more central. The customer organization still uses these adjustments.

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The modifications made to the CVI are rather small, which could explain that little research has been performed prior to the change.

The changes to the CVI were made because the customer organization wanted to reposition itself in order to increase the revenues of its travel agency. It can be argued that this wish to reposition results from a new strategic vision. The brand values, warm and friendly, that needed to be added to the CVI originated from a desired identity and strategic vision.

The corporate reputation of the organization was not used as a provider of brand values. It did function as the foundation, in that respect that it needed to remain intact, but with new additions. The new CVI needed to add new elements to the existing corporate reputation but many of the old values were retained. No external stakeholders were consulted by the communication design agency.

The communication design agency used the strategy of showing multiple possible solutions, ranging from small to more radical. This method also provides the communication design agency with a way to influence the end result. The fact that proposals with new logo designs were not selected can be viewed as an indicator for the fact that for this assignment the agency’s influence was rather limited.

4.2.7 The Reason for CVI change

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4.2.8 Attention for CI, Strategic Vision and Corporate Reputation by the Customer Organization

In the discussion of the case it is not clear to what degree customer organization was aware of these concepts or what their influence was on the selection of brand values. However it can be stated that the strategic vision was leading in the CVI modification project and that this strategic vision also received much attention from the customer organization.

4.2.9 Case Summary

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4.3 A new visual identity for a non-profit organization

The organization that is discussed in this case was founded at the beginning of the twentieth century. Currently it has some 400 employees and an annual budget of 40 million euro (Annual report 2006). Since its origination this institution has changed considerably. It started as a depository for important cultural pieces from the Dutch colonies. Also people who were sent to these colonies received their training at the institute. Gradually more departments were added and nowadays the three most important areas of expertise are development aid and health, culture and lastly information and communication. The goal of the organization is to make a contribution to sustainable development, fight poverty, protect and exchange different cultures. Additionally it wants to raise awareness in the Netherlands for these topics (Annual report 2006). The visual identity of the organization was changed completely in 2006. The new CVI replaced the old one, which dated from 1988.

The environment of the organization has changed considerably and the management recognized the need to address these changes (Annual report 2006). One of the current developments was that the organization needed to compete with other non-profit organizations for funding; the organization as a whole is subsidized by the Dutch government and the European Union. Because of the limited availability of subsidies the organization competed with other organizations that also require funding in order to carry out their activities. A strong unified face was viewed as an important instrument to gain an competitive edge here (according to the interview).

Additionally, because the departments differ greatly in type of customers, type of employees and in core activities, a central visual identity was no longer was visible. This lack of a strong CVI raised problems for the individual departments. The old and outdated visual identity did not help the departments much in gaining an advantage over their competitors (according to the interview).

4.3.2 The Project

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be carried out. The first phase, and the one which is most important for this research, is called the strategy phase. “In this phase the brand values are determined, along with the brand structure and a profile,” tells a senior project manager of the communication design agency. Once this is done the designers start drawing the first basics for the new visual identity.

“We had to find what binds them” tells the communication expert that was involved in the project, “the problem was that they needed to become a single organization, which they weren’t at the time.” First desk research was done in order to get a better understanding of the customer organization. The communication design agency had no clear picture of what the customer organization stood for so it was unbiased towards it.

After the desk research, interviews were held with key persons within all departments. These were managers in high positions within their respective departments. The communication design agency assumes that these key persons represent their department and thus can give a good picture of the identity of their part of the organization. The views of important external stakeholders were also used in order to come up with the right kind of visual appeal. However the communication design agency was not allowed to conduct its own research on this topic. The reason that this was not possible was probably a political one (according to the interview). What the communication design agency could do was use the results of research on the reputation of the customer organization that was commissioned by departments themselves.

Two workshops were held with key persons of the different departments and with the directors of the departments. To start the conversation, they were confronted with input that the design agency had gathered from the interviews and from the research on the reputation that had been done. During the workshops a common point of departure for the new brand was established by using words and images.

The strategic vision of the customer organization was also examined. The question that was connected to this aspect and was asked was ‘what is the destination of the organization?’. The strategic goals of the organization were deemed important and needed to be taken into account. Due to the process of CVI change, the mission statement of the customer organization was eventually changed. Insights that led to the change in mission statement originated from conversations between the team of the communication design agency and the CEO of the customer organization.

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were central in this profile and every department could relate to them. The words were knowledge, choice and chances. Every department worked on the spreading of knowledge in order to improve the chances everybody gets and to give them choices, albeit in different ways. Other words that were used as a point for departure were: foreign, worldly, worthy, exchange (of knowledge), growth and cooperation (according to the interview).

Employees of the communication design agency that worked on this project indicated that the structure of the organization plays a significant role in the process. Island structures, like the one this particular customer organization has, make it much more complex to come up with the right brand values. Everybody wants to have a say in the process, whereas in project done for more hierarchical customer organizations, the director decides what will be done. However, it is stressed in the interview that the preferred approach is that everybody in the customer organization is heard when a new visual identity is developed. But the customer organization decides whether this expensive approach is taken. As stated earlier, in this particular case management en directors of the departments were involved.

The communication design agency that developed this new CVI is very thorough according to the interviewees. “What we want is that the story makes sense. We don’t have any preference for certain brand values,” tells a senior communication advisor. That is why the agency specializes in making CVI’s for service organizations, government and business to business customers: “we don’t just develop fashionable visual identities.” The agency wants to find what makes their customer typical and uses that to distinguish it from its competitors.

The new CVI was nominated for the Dutch design awards 2006. It had become an extensive project in which the total CVI was redesigned and a new brand was created.

Desk research to get a sense of what the organization is helpful in discovering the corporate identity of the customer organization. It can give insights in the history of the organization, which is important when looking at CI. Furthermore the interviews with the directors and the key figures within the different departments were clearly used to find the values that are grounded within the CI. The keywords that described the brand and visual identity are befitting of an organization like the one central in this case, and could very well describe its corporate identity.

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communication advisor that was interviewed for this case indicated that the communication design agency usually wants to talk with personnel from every layer of the organization but in this project that was not done.

The interviewees indicated that the strategic vision or mission was used but eventually changed as a result of the CVI change and identity formulation process. This is remarkable and shows that developing a new CVI can have a profound effect on the customer organization.

Research done on the reputation of individual departments was used to prepare the workshops. Normally the communication design agency does its own research on the corporate reputation of the customer organization, but here this was not allowed. One can imagine that the influence of the input provided by the corporate reputation is present, but not dominant. Additionally, the research was only concerned with some of the departments of the customer organization and not the whole organization. Therefore, it can be said that the importance of corporate reputation is low.

The agency can influence the process of establishing the brand in a number of ways. The input that is used during the workshops is delivered by the communication design agency. This provides an opportunity to steer the process in a certain direction. It could not be established whether this has been done to influence the process of value selection.