Kristine Christensen
Exam number: 278218
Corporate Branding in Corporate Values with LEGO and Mattel as examples
Corporate Branding in Corporate Values
-with LEGO and Mattel as examples
Author: Kristine Christensen (278218)
Instructor: Poul Erik Flyvholm Jørgensen
January 2011
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Master thesis: Cand.ling.merc – International Market Commnunication & PR, English
Department of Language and Business Communication
Aarhus School of Business, Aarhus University
Executive Summary
Branding has come to be about much more than just the products. Nowadays, organisations also brand the “soft values” of the organisation, the enterprise as a workplace and the organisationas a responsible corporate citizen. Since the emergence of the term “the politically conscious consumer”, organisations have been forced to create alignments between the internal and external communication, and the corporate identity and the corporate values. Naturally, alsothe toy business is affected by the interest in “soft values”, as this line of business is characterised by an eternal demand for development, innovation and transparency. Besides, consumers want to make sure that the toys they buy are manufactured under safe conditions, and that it does not contain any dangerous chemicals. What is more, the toy business is a line of business, which has two consumer target groups; namely parents and their children.
The scope of this thesis is to discuss whether or not there are competing discourses when communicating corporate values to two different target audiences, with LEGO and Mattel as examples. Empirically, this thesis will be based on an analysis of the communicated values by LEGO and Mattel, based on written material taken from both organisations websites. Thus, it will also be discussedhow the division of terminal and instrumental values might represent the competing discourses, how the discourses help establish the actual target audiences and how the corporate identities of both LEGO and Mattel arerepresented by comparing the communicated values and the corporate values.
The thesis is conducted by the means of a quantitative analysis from a hermeneutic perspective, and is based on carefully selected communicated material taken from LEGO and Mattel’s corporate websites.
The theoretical part of this thesis is based on theories provided by leading researchers within the field of corporate branding. The focus is on the elements of a corporate branding strategy; namely the corporate mission and vision, image, reputation, culture, identity and values, and how all these elements interact and are dependent on one another. Yet, the focus will be on the corporate identity and the corporate values. The methodology for this thesis is based on the article “Communicated values as indicators of organisational identity: A method for organisational assessment and its application in a case study” by Philip Jerod Aust (2004), and Milton Rokeach’s classification of values from the book “The Nature of Human Values” from 1973. A reviewed version of Rokeach’s value system forms the basis for the analysisof LEGO and Mattel’s communicated values.
The analysis is divided into four levels:
- Analyse the occurrences of the communicated values in the analysed material.
- Discuss the division of instrumental and terminal values and how this division might represent the competing discourses of the toy business.
- Discuss how the discourses might represent the actual consumer target audience.
- Discuss how the identities of LEGO and Mattel arerepresented by comparing the communicated values and the corporate values.
In the first level of the analysis, it became obvious that LEGO and Mattel communicated distinct values, and that the number of occurrences of the communicated values also differ to a great extend.
The findings in the second level underlined that LEGO and Mattel focus on two different discourses when communicating values, seeing that Mattel focuses on the discourse “Playing” and the actual fun in playing, while LEGO focuses on the discourse “Learning” and the development of the child.
In the third level presentations and definitions of the two discourses “Playing” and “Learning” are presented, in order to be able to establish the actual target audience, and to answer the sub-research question whether the choice of discourses is culturally related. The findings in level three established that LEGO and Mattel target two different consumer target groups, as Mattel focuses on the children, whereas, LEGO’s main target audience is the parents. In terms of answering the research sub-question, the findings showed, that LEGO’s choice of discourse is culturally related, while Mattel’s choice of discourse is not culturally related.
The findings in level four highlighted that LEGO does not succeed in creating alignment between the corporate values and the communicated values. Mattel, on the other hand, does succeed in creating alignment between the corporate values, the communicated values and the choice of discourse.
All in all, this thesis establishes that organisations within the same line of business can focus on two very distinct discourses, which is reflected in the corporate values and in the communicated values.
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Table of contents
1Introduction
1.1Problem statement
1.2Delimitations of the theory
1.3Delimitations of the empirical data
1.4Theory and method
1.5Structure of the thesis
2Product branding and corporate branding
2.1Product branding
2.2Corporate branding
2.3The differences between product branding and corporate branding
3Corporate branding as a strategy
3.1The elements of a corporate branding strategy
3.1.1Image
3.1.2Reputation
3.1.3Vision and mission
3.1.4Culture
3.1.5Identity
3.1.6Values
3.1.7Discussion of the elements
3.2Summing up
4Analysis method
4.1Rokeach’s Value Theory
4.2Aust’s method for analysing communicated values
4.3Final analysis method
5Introducing LEGO
6Introducing Mattel
7Analysis of the communicated values
7.1LEGO
7.2Mattel
7.3Summing up
8Discussion of the division of instrumental and terminal values
8.1LEGO
8.2Mattel
8.3Summing up
9Discussion of the target audiences
9.1Playing
9.2Learning
9.3Summing up
10Discussion of the identities
10.1LEGO
10.2Mattel
10.3Summing up
11Conclusion
12Bibliography
12.1Books
12.2Articles
12.3Websites
12.4Appendix
Kristine Christensen
Exam number: 278218
Corporate Branding in Corporate Values with LEGO and Mattel as examples
1Introduction
Corporate branding is receiving more attention from practitioners and academics than ever before. Also, corporate management knows that building a strong and focused corporate brand must be top priority. In a world with countless products and where choices are based on several other factors than rationality, brands have become essential when consumers buy.Because competition in almost all markets has increased, organisations need to have strong corporate brands to survive. Brands help consumers differentiate the various products, from those of competitors. Furthermore, brands help consumers define who they are. Who we work for, the clothes we wear and the cars we drive are all elements which illustrate who we are, the values we possess and how we want to be perceived, and according to Morsing and Kristensen (2001):
Consumers are concerned about their own identity, and they connect it closely to their consumption. They want a good story to tell about their consumption pattern
(Morsing and Kristensen 2001; 26)
However, a brand is more than just a name and a logo,a brand needs to represent the core values of the organisation, so the various stakeholders know what it does and what it stands for.
Corporate values have become one of the most cited buzzwords within the field of corporate branding. The interest in immaterial values, such as social responsibility and environmental responsibility, have increased during the last decade and the term “the politically conscious consumer” has become more widely used than ever. To the politically conscious consumer, business ethics and corporate values, also referred to as “soft values”(Thyssen 2007; 173), play an important role in a purchase situation, which put demands on the organisation to uphold and make their core values visible. And this thesis deals with, how organisations communicate and uphold these soft values.
Yet, the interest in soft valuesalso means that it is not enough for organisations merely to communicate their core values. Organisations also have to signal transparency when it comes to answering questions about how their production contributes to nature and less pollution, on what grounds they chose suppliers etc. (Morsing and Kristensen 2001; 26).
However, the demand for soft values is not only external. Also internally, the demand has increased. Core values have intrinsic meaning and importance to organisation members, as management and employees stick to these values and incorporate them into everyday business operations. Moreover, communicating corporate values also becomes crucial when attracting new employees, as values have become an important criterion when choosing employer (Sandstrøm 2006; 7).
The toy business is naturally also affected by the great interest in “soft values”. This line of business ischaracterised by strong competition and an eternal demand for development and improvements. What is more, the toy business is constantly met by a demand for transparency. Consumers want to make sure that the toys they buy are manufactured under safe conditions,and that it does neither contain any dangerous chemicalsnor has any small or loose parts. Additionally, the toy business is one of the few lines of business, which has two consumer target groups; namely parents and their children, and fulfilling the core values of both groups can be somewhat complex. Assumedly, parents want the best, safest, and most educational toys for their children, while, children demand constantly innovative, modern and fun toys.
1.1Problem statement
For corporate values to be perceived as credible they should be communicated properly. For this reason, this thesis seeks to address the challenges in communicating values by analysing and discussing, how organisations with twoconsumer target groups communicate their corporate values, when the demands of both groups are somewhat complex. This leads to my research question:
Are there competing discourses when communicating corporate values to two different target audiences?
In continuation of this research question,asub-question also arises:
-If there are competing discourses,are these discourses culturally related?
Empirically, the thesis will be based on LEGO and Mattel, and the analysis will be based on communicated values conveyed in written material taken from both organisations’ corporate websites. The theoretical part will be built on corporate branding theory with special focus on corporate identity and corporate values.
1.2Delimitations of the theory
In this thesis, the concept of corporate branding in corporate values will be discussed with focus on the business-to-consumers area; hence, the business-to-business area will not be discussed into depth. The basic concepts behind these two areas often overlap, and often researchers do not separate the two areas. Thus, the theoretical part of these two areas is to some extend based on branding in general.
This thesis will focus on corporate values, corporate vision and mission, corporate image, corporate reputation, corporate culture and corporate identity from a corporate branding perspective and not from a corporate communication perspective. When analysing from a corporate branding perspective, it is the consumers and their perceptions of the organisation, which are in focus.
In the literature researchers and academics often distinguish between the two terms corporate identity and organisational identity. However, the differences between these two terms are somewhat indistinct; as it appears that they overlap and supplement each other. Hence, in this thesis both terms will be defined under the term corporate identity.
Due to the space limitations and the actual scope of this thesis, a cultural analysis will not be made. The analysis and discussion of howLEGO and Mattel’s choice of discourse might represent the actual consumer target audience will be based merely on articles describing and examining the values of Danes and Americans.
In relation to the analysis method of this thesis, a limitation has also been made. The value system developed by Rokeach in 1973 is very comprehensive, and several of the values listed in this value system do not have any relevancyfor LEGO and Mattel and the scope of this thesis. Thus, the focus will be on the values that are relevant for answering the problem statement of this thesis.
In the thesis, there will be distinguished between communicated values and corporate values. The communicated values describe the values conveyed in written material presented by organisations, while, the corporate values are the values organisations state as core values on the corporate websites.
1.3Delimitations of the empirical data
LEGO and Mattel are selected, because both are leading organisation on the national market as well as on the international marked. Due to this position, it is assumed that both organisations use many resources on creating and maintaining the corporate brand identity. The empirical data part of the thesis will be based on written material obtainable from LEGO and Mattel’s corporate websites.The analysis will be conducted on: a) the corporate values stated on LEGO and Mattel’s corporate website; b) the corporate mission and vision of LEGO and Mattel; c) the code of conduct of both organisations; d) six press releases from 2008 - 2010 from LEGO and Mattel; e) the 2009 Annual Report from Mattel and the 2009 Progress Report from LEGO. The press releases have been chosen with a view to have variety in the topics, portraying how both organisations communicate their values in times of regression and progression. The code of conduct of both organisations has been chosen, because it reports on how LEGO and Mattel do business, and in a report like this the corporate values should be repeated frequently. Mattel’s 2009 Annual Report is selected due to the letter from the CEO in the beginning of the report. An annual report, and in particular the letter from the CEO, gives a glimpse of how the year has been and the goals for the upcoming years. The analysis will only be conducted on the pages 1-31, as the rest of the report only consists of numbers and figures.LEGO’s 2009 Progress Report has been selected instead of the 2009 Annual Report, as the number of values communicated in the Annual Report was scarce. The reason behind the variations in the analysed material, is because it is believed that it will give a more comprehensive and realistic picture of how LEGO and Mattel communicate values.
In order to remain fully objective in the analysis of LEGO and Mattel’s communicated values, a deliberate choice of not contacting the organisations has been made. LEGO and Mattel have thus not had any influence on the content and on the analysis of this thesis.
It is realised that from the analysis, it will not be possible to draw any general conclusions on how core values are communicated when having two consumer target groups, as this would require a more profound analysis of several organisations corporate communication. It is believed, however, that this thesis can be used as a starting point for researchers in multinational organisationswith two target groups, who wish to communicate their core values in a more strategic manner.
1.4Theory and method
The methodology of this thesis is based on a quantitative analysis from a hermeneutic perspective. A hermeneutic perspective deals with how a text or other meaningful units are understood[1], and in accordance with the hermeneutic perspective, there will be a theoretical pre-understanding by dividing the thesis into a theoretical part and an empirically part. In the following the theory and method for the thesis will be elaborated.
The theoretical part has the purpose of introducing the concept of corporate branding and the elements, which constitute this concept.
First, the concepts of product branding, corporate branding and the main differences of these two concepts will be presented. These concepts are presented to give a broad perspective on the term branding. The focus will be on the theories provided by Nicholas Ind, Lars Sandstøm and Mary Jo Hatch and Maiken Schultz, as they are all researchers within the area of branding and corporate branding. Mary Jo Hatch and Maiken Schultz are in particular pioneers within the field of corporate branding, as they believe that branding, corporate identity, corporate image and corporate culture are essential elements in a successful corporate branding strategy.
Subsequently, corporate branding as a corporate strategy is presented, and the relationship between the different elements in a corporate branding strategy are introduced. These elements are presented to place a corporate branding strategy in a practical context.
Most of the researchers in this thesis, are pioneers and leading within their field. In the section describing corporate reputation, the theory provided byGrahame Dowling is used, both because of his expertise within the area, but also due to his marketing theoretical approach. In terms of corporate identity,Cees B.M. Van riel and Charles Frombrun and Wally Olinsare selected due to their marketing theoretical approach and their expertise within the field. Mary Jo Hatch and Maiken Schultz and T.C. Melewar are also researchers within the area of corporate identity; however, they perceive corporate identity as an element rooted internally in the organisation.These introductions, to the various elements of a corporate branding strategy, are used to form a discussion of, how LEGO and Mattel manage to create consensus between these elements by communicating the corporate values.
The paragraph concerning corporate identity is further supported in the paragraph on corporate values, which constitutes an exposition on the widely cited value expert Milton Rokeach’s value theory and classification of values. This theoretical exposition of the classification of values is used to analyse the communicated values of both LEGO and Mattel, in order to determine the number of occurrences of the values and the consequences of these occurrences.Johan Van Rekom et al. and Philip Jerold Aust provide a clarificationof how values are used in a corporate context, seeing that expressing core values and living the values have become the essence of modern business management. This clarification forms the basis of a discussion between the communicated values and the corporate values and their influence on the corporate identity.