A corporate brand is a single, clear promise that a company makes and fulfills for its stakeholders. Branding is the strategic process of establishing both the tangible and intangible attributes to differentiate your company and give it focus to consumers and others. Therefore, it is imperative for companies to define their value proposition by showcasing their products and/ or services unique from others to gain competitive edge. If not, then customers may default to the most basic option of differentiation -- price. Unlikey, for pharma companies - the low-price game is a lose-lose proposition irrespective of making sales. Best Practices, LLC undertook this study to help corporate leadership understand the importance of a corporate brand. Branding is the strategic process of establishing both the tangible and intangible attributes to differentiate your company and give it focus to consumers and others.

1. Best Practices in
Building Your Corporate Value Proposition
Research Findings from Best Practices, LLC

2. Building a Corporate Value Proposition Overview
This presentation was compiled from various primary and secondary research conducted by
Best Practices, LLC.
Study Objective & Methodology
1.
Companies that are defining their
value proposition understand that
this is the first step in clearly
identifying how their products and/or
services are different from the
competition – in essence what sets
them apart.
Key Topic Areas
• Understanding Corporate Value
• J&J Case Study: Origin on Trust
• G.E. Healthcare’s
Healthymagination
• Eli Lilly Case Study on Social
Responsibility
• Corporate Brand Planning
Processes
• Why Focus on Customer Loyalty?
• Achieving the Corporate Value
Proposition
If a company cannot define some
unique feature or benefit that makes
it stand out, then customers may
default to the most basic option of
differentiation -- price.
For pharma companies, playing the
low-price game is a lose-lose
proposition -- even when they make
sales.
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3. Understanding the Corporate Value Landscape
A corporate brand is a single, clear promise that a company makes and fulfills for its
stakeholders. Branding is the strategic process of establishing both the tangible and
intangible attributes to differentiate your company and give it focus to consumers and
others.
Brand Story
Provides inspiration and motivation
for customers, employees and
stakeholders. Ued in corporate
identity articles, special events and
new product launches.
Tagline
Traditionally referred to as the
corporate "slogan". Examples:
Federal Express- The World On
Time; Saturn- A Different Kind of
Car Company.
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Vision
Core Identity Concepts
Expresses the philosophy
driving the organization – your
destination in the next 3 to 5
years.
Aligns the associations you want to
create and maintain. Look to
resonate with customers and
differentiate brand. Should be easy
to communicate and consistent for all
products.
Building Your
Corporate
Brand
Brand Promise
Distills what the customer will receive.
Drives the value proposition and
provides differentiation.
The Value Proposition
Represents the functional and
emotional benefits customers
expect to receive from your
company. Reflects a balance
between the aspirations and reality
of what you can deliver.
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4. What is a Brand?
• A brand is a promise.
– Promises must be believable and consistent through
time
– Promises must be delivered upon
– A promise helps cement the relationship between the
company, product or service and its customers
“The reason we brand is to 'own' a piece of our customers’
gray matter…we want our product to be differentiated in
our customers’ minds”
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5. Provide Info at a Corporate and Product Level
Pharmaceutical companies can no longer just focus on individual brands when
discussing their pharmaceutical products. Physicians, patients and pharmacists are
wanting to see linkage between the corporate brand and product brand.
– Traditionally in our industry, product brands have functioned
alone, without a corporate brand.
– Today, research shows customers prefer to see a link
between a corporate brand and product brands.
100
100%
97%
94%
80
60
40
Product only
20
Product/corporate link
4%
1%
Don’t know
3%
0
Source: Landor
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Consumers
Physicians
Pharmacists
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6. Origins of Trust: A Case Study of J&J
J&J has established a level of trust with its stakeholders through the last 120-plus years.
Its Credo was established in 1943 and is part of the daily fabric or the organization. It
calls the value it places on trust its “TRUSTMARK.”
• During the Civil War, 75% of wounded
soldiers died from infection
• 1886: Johnson brothers (Robert Wood,
James Wood, Edward Mead) embraced
concepts of antisepsis
– began manufacturing sterile gauze and
cotton
• Begin publishing “how-to” medical
guides
• Medicinal plasters
CREDO
• Statement of Business
Ethics
• Responsibility to:
– doctors, nurses, patients,
mothers, fathers
– employees
– communities in which we
live and work
– shareholders
• Truly a guide; used daily
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7. Adopt Organic Organizational Structures
• Organic
• Mechanistic
- Open Channels of Communication support the free flow of information
in the organization
- Structured Forms of Interaction
- Restricted Operating Styles
- Open Operating Styles - allowed to
vary freely
- Formal Authority and Chain of
Command for Decisionmaking
- Autonomous and Distributed
Decision-making - based on
expertise
- Reluctant Adaptation - captive of
history and SOPs
- Emphasis on Accomplishment – as
opposed to formal procedures
- Emphasis on Procedures
- “Collective Intelligence” of the
organization engaged in
decisionmaking process
- Tight Control
- Senior Leadership and Managers
make decisions absent
involvement of subordinates
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8. Corporate Citizenship at Novartis
Novartis focuses some of its corporate citizenship to supporting the eradication of AIDS
in Africa. AIDS orphans are a key target of Novartis, starting with its pilot program in
Tanzania and has moved to 12 other countries.
“Our corporate citizenship policy
reflects our commitment to the
10 principles of the United
Nations Global Compact.”
“Our corporate citizenship policy
reflects our commitment to the 10
principles of the United Nations
Global Compact.”
“The Novartis Code of Conduct sets
out the standards of ethical
behavior that we expect from
Ethical business our associates and
underpins all that we do.”
Throughout the world, Novartis
country organizations are active in
corporate citizenship.
To learn more about Novartis’
program for AIDS in Africa
Click Here
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“We endeavor to ensure the
livelihoods of our people while
being a good neighbor.”
“Our purpose is caring and curing
for patients, one reason why we
are expanding access to
healthcare around the world.”
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9. Why Focus on Customer Loyalty?
• Customer satisfaction is not enough
• Assists growth targets by keeping the business we already
have
• Growing new customers costs significantly more than
maintaining the ones we have
• Addressing loyalty drivers wins Dow account share
• Vital to employee morale and satisfaction
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10. Establish Marketing Points of Connection with
Customers and Business Functions
A World Wide Marketing division can play a key role in driving product development by
researching and identifying customer needs and working with internal business
functions to create and launch new products.
Marketing’s Role in a Market-Driven Business Model
Identify
Need
• Strategic
Marketing
identifies
user need.
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Assess
Market
Potential
• Marketing
Programs
conducts
market
research
to assess
potential.
Generate
Product
• Partnership •
Marketing
evaluates
partner
synergies.
• If no synergies
available, R&D
creates new
product.
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Launch
Product
Marketing
Programs
conducts a
multi-stage
product
launch
process.
Sell
• Marketing
Programs
provides
sales
collateral.
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11. About Best Practices, LLC
Best Practices, LLC is a research and consulting firm that conducts work based on the
simple yet profound principle that organizations can chart a course to superior
economic performance by studying the best business practices, operating tactics and
winning strategies of world-class companies.
Best Practices, LLC
6350 Quadrangle Drive, Suite 200,
Chapel Hill, NC 27517
919-403-0251
www3.best-in-class.com
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