Designing a Brand Roadmap for Holding Companies (Case Study: Golrang Industrial Group)

Aim and Introduction: The strategies for managing a holding company's brand require a deep understanding of brand concepts and the holding’s activities. The more aligned the supportive programs of holding companies and their strategic business units (SBUs) are, the more positive the impact will be on brand identity creation, feedback, and shared communication between the holding’s brand and its SBUs. Considering the need for holding companies to develop a brand roadmap to gain a suitable position in the competitive markets of each of their businesses, as well as the existing research gap in this field, the present study aims to formulate such a roadmap through a multi-level approach.
Methodology: From the perspective of research philosophy, the approach to the brand roadmap in holdings is pragmatism. The research approach is inductive, the strategy is a case study, the method is a simple exploratory mixed-methods design, the time horizon is cross-sectional, and the data collection tools include semi-structured interviews and an expert-oriented Best-Worst Method (BWM) questionnaire. The target population consisted of branding and marketing experts and managers within the Golrang Industrial Group, selected through purposive and theoretical judgmental sampling. In total, 14 individuals were interviewed until theoretical saturation was reached. Furthermore, experts and managers from the marketing departments of the Golrang Industrial Group, along with other branding and marketing specialists, were asked to complete the prepared questionnaire. In total, 12 experts completed the BWM questionnaire. To assess the reliability of the interviews, the test-retest reliability technique was employed. In the first phase, a case study was conducted on the Golrang Industrial Group to extract the components and elements of the brand roadmap. In the second phase, the Best-Worst Method was utilized to prioritize the factors at each level.
Findings: The results revealed that a brand roadmap with three levels was designed. At the first level, the identification of branding objectives was addressed; at the second level, the identification of branding strategies and tactics was addressed; and at the level of influencing factors, the identification of intra- and extra-organizational factors affecting branding in holding companies was addressed. In total, to answer the first research question, 52 codes related to branding objectives in holdings were obtained. Subsequently, a set of concepts was developed. Ultimately, after iterating through the codes, 12 concepts were identified as branding objectives in holdings: "improving brand financial performance," "creating brand prominence," "enhancing brand equity," "increasing brand trust and reinforcement," "enhancing company reputation," "fostering value creation," "strengthening strategic brand positioning," "increasing bargaining power," "improving brand perceptions," "achieving economies of scale and diversity," and "attaining market intelligence." Based on the results, it was determined that at the first level, the objectives included creating differentiation, improving brand positioning, and generating economic value. For the second level, 62 final codes were extracted, from which 7 concepts were identified as branding strategies in holdings: "brand portfolio strategies," "branding strategies," "brand management," "brand complements," "brand initiatives," "stakeholder collaboration," and "social media management." In total, branding strategies and tactics in holding companies encompassed brand architecture, brand engagement, and brand ingenuity. Finally, at the third level, 112 final codes and 32 concepts related to factors affecting branding in holding companies were identified, including "organizational resources, capabilities, and competencies," "customer knowledge," "competitive intensity," "financial investment," "organizational culture," "branding policy," "corporate governance," "branding expertise," "intra-organizational changes," "national and international partnerships," "market characteristics," "strategic intelligence," "national and international alliances," "inter-organizational relationship management," "organizational design," "innovation strategy," "brand development strategy," "globalized trade," "customer culture," "sustainability issues," "national and international laws and regulations," "technological trends," "political issues," "economic issues," and "government policies regarding industries." Ultimately, multiple intra- and extra-organizational factors were identified, encompassing the macro-organizational environment, market and competition, organizational capability management, intra-organizational behaviors and interactions, organizational growth and development, and brand portfolio management.
Discussion and Conclusion: Possessing dynamic capabilities related to product development, branding, and globalization will accelerate and facilitate the globalization of holdings. Therefore, holdings must possess and master the necessary capabilities for their customers’ brands. Additionally, organizational culture plays a role in the branding of holdings. Thus, in some cases, the organizational culture may require review or reinforcement. Furthermore, to strengthen their position in competitive markets, holdings must pursue an innovation strategy. This means that a robust strategy for building a brand directly impacts the competitive advantage of holding companies and has a spillover effect on innovation. It should be noted that financial investments will influence the likelihood of adopting innovative brand strategies. For example, many companies offering luxury products, such as the top four—LVMH, Gucci Group, Prada, and Richemont Group—spend millions of dollars on developing a comprehensive corporate brand identity as part of their branding strategy. A holding can choose various approaches depending on its dominant strategic orientation along the two dimensions of ambidexterity—namely, innovation and branding activities. In addition to being innovative, holding companies need to develop strong and unique connections in the minds of consumers, which requires sustained long-term investment, so that consumer brand awareness and mental imagery result from the holding’s historical investment in branding. It appears that three internal factors—decentralization, low investment in marketing, and managerial leadership style—contribute to explaining the lack of success in developing holding company brands. Indeed, these factors should be at the forefront of holding companies’ attention. Holding companies can engage in national and international partnerships or alliances with industry peers within their supply chain or commercial exchanges, enabling them to create, strengthen, or, if necessary, even eliminate brands. It should be noted that for holdings aiming for globalization, it is essential to implement fundamental changes in their organizational processes and structures. Furthermore, holding company managers are advised to use the brand as a tool to align their employees, ensuring that their brands are presented as intended. A notable finding is that, due to the diversity and volume of holdings’ activities, the variety and number of stakeholders are also significant. Hence, collaboration with brand stakeholders is of particular importance. For instance, if a holding company seeks to engage with its shareholders to create a brand, it is recommended to interact with shareholders or other stakeholders to foster innovation in products/services. Consequently, holding managers should leverage the brand to inform, design, and manage not only the customer experience but also how the holding interacts with business partners, investors, and other stakeholders with whom the organization is connected. Interestingly, to achieve the potential benefits associated with developing brands through a corporate social responsibility approach, holding companies must actively participate in communication processes and dialogues with their primary and secondary stakeholders. Finally, depending on their brand architecture, holding companies can adopt one of the strategies of a house of brands, endorsed brands, or a branded house. Moreover, when examining the extensive list of holdings employing co-branding, it becomes evident that co-branding/brand co-creation is a significant branding strategy for them.
Keywords: Brand Roadmap, Branding, Brand Architecture, Holding