Importance of Branding Company IBM
When we think about IBM the first thing that comes to our mind is the blue subtle logo comprising of three letters I-B-M, which stands for International Business Machines. IBM is a company that is older than the slice of bread and Band-Aid. The company started in 1911, was founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed 'International Business Machines' in 1924. IBM is incorporated in New York. The company is over a century old now. Initially the company (CTRC) was formed after the amalgamation of four different companies namely, Bundy Manufacturing Company, Computing Scale Company of America, International Time Recording Company and Tabulating Machine Company. Initially the company dealt in electric tabulating machines, time recorder machines (to record arrival and leaving time of employees), computing scales and other business process machines. Today IBM deals into computer hardware, software and consulting services. IBM is also a research organization holding the record for most U.S patents generated by a business for 27 consecutive years. The company has created a significant name for itself in the global commerce and is known for its innovation, exceptional customer service and employee and customer satisfaction. It can be said that IBM is a B2B company which has created a valuable and trustworthy brand identity even after facing challenges ranging from great depression, World War I & 2 and failing to clone makers during the initial PC era. So how even after facing so many challenges IBM has remained sustainable and created such a great brand equity for itself. There are many important lessons we as marketers could learn from IBM which being a b2b company has attained such great brand reputation. From the study made by me I have found out the 3 factors which have added value to the brand equity of the company and they are; Company Values, Subtle Campaigns and The Big Blue. So let’s look at the factors one by one.
Company Values
One the key factors that has actually helped IBM scale heights and create a significant brand image is the company’s values. The company’s value as per their website are:
- Dedication to every client’s success
- Innovation that matters, for our company and for the world
- Trust and personal responsibility in all relationships
And it is with these values that for over 100 years IBM has been delivering value to stakeholders, demonstrating the sustainability of their business practices and ability to transform as the markets and industries change with time. They have nearly 400,000 employees and conduct business in more than 175 countries. Also have an extensive, integrated supply chain of about 14,000 suppliers operating in almost 100 countries. The foundation of these values were laid back when Thomas Watson Sr joined as the General Manager and later on served as the president from 1914 to 1956 of IBM (then CTRC) after resigning from National Cash Registrar in 1914. As soon as he stepped in the organization he made significant changes and brought a revolution in how traditional business was conducted in America at that time. Watson Sr. played a crucial role in establishing what would become the IBM organization and culture. He launched a number of initiatives that demonstrated faith in his workers. He hired the company's first disabled worker in 1914, he formed the company's first employee education department in 1916 and in 1915 he introduced his favorite slogan, 'THINK,' which quickly became the corporate mantra of IBM. Watson boosted company spirit by encouraging any employee with a complaint to approach him or any other company executive – his famed Open Door policy. He also sponsored employee sports teams, family outings and a company band, believing that employees were most productive when they were supported by healthy and supportive families and communities. These initiatives – each deeply rooted in Watson's personal values system – became core aspects of IBM culture for the remainder of the century.
Subtle Campaigns
IBM has suffered a lot during its tenure as mentioned the great depression, two world wars and major product failures and even failure in entering into personal computer space even after being a pioneer in the industry. Yet the company has managed to stay sustainable and working to this day. With various marketing efforts like ad campaigns and content revolving around values and vision of the company and the mantra of the organization “THINK”. Subtle ad campaigns about innovation and empowerment of humanity have helped IBM to sustain worldwide. IBM was many of the few B2B campaigns who run advertising campaigns on broadcast media and also proving to be effective. Today IBM creates a lot of content for digital media especially YouTube. Along with various creative campaigns IBM has also launched various notable marketing efforts like: Watson on Jeopardy.
Watson, IBM’s supercomputer named after the company’s founder, Thomas J. Watson. The supercomputer project flew under the pop culture radar until 2011, when IBM announced that it’d play Jeopardy (a classic game show -- with a twist. The answers are given first, and the contestants give back the questions) against two of the game’s former champions, Brad Rutter and Ken Jennings. Watson played and, it won — and by a huge margin. Watson soon became a celebrity and saw increased sales.
Watson won $1 million us dollars in total, which the company split in half and donated to two charities. Surprising part about the game wasn’t Watson’s victory — it was how quickly the machine calculated answers to questions and stated them in colloquial English. With that kind of power, it’s not surprising that there was more to Watson. The result of this marketing effort led to increase in IBM’s popularity and credibility. Today Watson serves in the health care industry and in cancer treatment. It guides the doctors and nurses with its huge collection of historical data about the disease. And soon expanding to more verticals.
Other notable efforts include “Smarter Planet” a platform similar to TedTalks but completely controlled by IBM encouraging formation of new ideas to improve and sustain human life and humanity. The recent campaigns include Cognitive Era and Smart loves problems revolving around the company’s values of innovation and sustainability.
Company Logo
One of the most effective value in IBM’s strong brand persona comes through its subtle blue logo. The logo has gone through several changes over the period of time. Initially the companies amalgamated into forming CTR prior to amalgamation had their own logos for running the business. But later after the amalgamation in 1911 of the companies by financier Charles Flint the logo was initially changed to CTR and stayed until 1924 when the company name was changed to International Business Machines (IBM). The person responsible for the name change was the president Watson Sr. he did not like the long name of the company (CTRC) and thought it was too vague and confusing hence in 1924 he changed the name and a new logo was formed for IBM. The logo was more contemporary sans-serif type and in a form to suggest a globe, grilled around by the word international. It began with a change to the logotype, the first in 22 years. The new logo appeared on the masthead of the January 1, 1947 issue of Business Machines with surprisingly little fanfare. The familiar 'globe' was replaced with the simple letters 'IBM'. Soon before Watson Sr. died Watson Jr. his son had taken over IBM and in 1956 he moved quickly using actions and symbols to signify a new era. A subtle logotype was created by notable graphic designer Paul Rand, solid and balanced look was given to the logo comprising of the letters IBM.
In 1972, the company created a new logotype. Designed by Paul Rand, horizontal stripes now replaced the solid letters to indicate 'speed and dynamism.' In the last century, the basic design has remained constant, one of the most recognized logotypes in the world and used by the company till this day.
They keep experimenting with the logo and innovating designs to follow trends and stay sustainable in the coming years.
Hence in conclusion, IBM has used exceptional branding techniques to remain significant and sustainable in the market. The branding efforts by IBM are probably best compared to any B2B business in the world. What we can learn from IBM’s case is that in order to create a great brand you need:
- Values – The story of the company and what it stands for in this world.
- Marketing/Promotional Methods.
- Brand image/Look and feel one which is more connecting with the world.
Hence, if you are a startup, MSE or large enterprise if you have values that want to change the world and stay efficient follow the above methods. The scope of branding is not restricted to these factors or learnings, as Watson Sr. says “Think, think and we can explore this space of branding and pave way for better future.'
Sources
- https://www.ibm.com/in-en
- https://en.wikipedia.org/wiki/IBM
- https://www.webfx.com/blog/marketing/case-study-3-b2b-marketing-campaigns-by-ibm/
- https://thedesignlove.com/case-study-the-ibm-logo-evolution/
