Now recognised as a necessary part of brand building, internal branding ensures that a firm’s employees are involved in the delivery of the brand promise. It is the process of making employees understand what the brand stands for, leading them to act in a way that is consistent with the values and goals of the brand.
When done properly, internal branding helps employees internalise company values. It has been shown to be an important factor in building a positive work environment. A positive climate that involves information sharing prevents costly turnovers, leading to better productivity. Internal branding also encourages positive employee attitude, resulting in greater customer loyalty and sound financial performance for the company. Internal branding strengthens credibility and reputation while increasing brand equity.
At a time when employers are urged to re-design the workplace to make employees more productive, many Singapore companies have undertaken internal branding. There is now a need to delve deep into how internal branding is practiced by SMEs and how it affects local companies.
StrategiCom, the E50 Association, and the Nanyang Technological University, will conduct a study that investigates the extent of Internal Branding. Entitled “The StrategiCom-E50 Study on Internal Branding and Its Influence on Productivity”, the study will explore the extent and importance of internal branding in local companies. It will also investigate the influence of internal branding on productivity.
The project will answer the following research questions:
- Do Singapore SMEs see the importance of internal branding?
- What efforts have been done in terms of internal branding among these SMEs?
- Do Singapore SMEs perceive the internal brand to have an effect on productivity?
The research team will be led by StrategiCom CEO and Group Principal Consultant Dr Wilson Chew. The project will feature interviews with150 CEOs of companies belonging to the Enterprise 50 Association. Results will be corroborated by rigorous secondary research and will be presented in a press conference in March 2012 during the Singapore Brand Conference 2012.
Says Andy Lim, President of the Enterprise 50 Association, “SMEs make a huge contribution to the economy but searching for ways to improve our productivity is a daunting task. Internal branding is a promising solution, but some local companies remain unconvinced of how effective it is. This is why E50 members will be involved in this study—to convince SMEs of the necessity of internal branding.”
“Singapore’s economy remains resilient, but there are still fears that our economy will be affected by the events in Europe and North America,” says StrategiCom CEO Dr Wilson Chew. “This is the right time for companies to find ways to increase productivity and we have strong reasons to believe that internal branding can be a powerful tool within the organisation. Before Singapore companies should seriously consider it, they need to analyse how it functions within the local context. This study will fulfil that need.”
