The keeping of an organisations promise can lead to corporate brand equity; this is when consumers hold favourable, strong, and unique associations about the corporate brand in memory (Keller 1993). There are many advantages of corporate branding as corporate brands represent the class and well known by every body, for example once David Beckham said, “I can’t even imagine using any nothing else then Adidas”. Though he is the contracted model for Adidas but at the same time it reflects that Adidas as luxurious and expensive item and also a status symbol. This made sports people with money buy that item. Rolex watches can also be an example for this, Rolex are known as the watches for high-class people. This makes people with money buy the Rolex watches to show the class. This is the brand equity of Adidas and Rolex.

Brand equity can be transferred to other products as well. This can be seen in the case of VW buying the Skoda. Before VW took over Skoda’s sales were declining but in recent years Skoda has improved and its sales has gone up as well due VW’s transferred its brand equity to Skoda. G.M motors have also bought different corporate brands such as Daewoo and Volvo and have transferred the brand equity to them brands.

This does not stop here there are so many other benefits an organistaion can have by having a corporate brand. Newman (2001) suggests that success rate of a new product or service can increase by twenty percent if it has a corporate brand behind it. Also costs could be reduced when launching the product or service than if it did not have a corporate brand supporting it.

This is due to the trust and credibility build by the organisations. Consumers prefer to stay with the organisation they have dealt with before. When Mercedes build the 4*4 people have bought the vehicles even though it was the first time Mercedes has launched a 4*4 vehicle. Mercedes has achieved this through due to the string branding and consumer trust on them.

Corporate brand has a longer life as compare to other resources with in the company. For example Coca Cola the brand is much older then the plants and location used to make it. It is also older then the human resources those make the product. Grant (1991) stated that the corporate brand tends to decay slowly, and strong corporate brands can decrease the competition in the market. Products have shorter lifecycle so corporate brands are preferred over just product brand.

A corporate brand is an intangible asset so it is difficult to copy as it is not a product from a production line. Corporate brand represents a logo or a slogan that is protected by laws, which are in place. Slogans or logos are more secure then the product it self as it is easy to copy a product but it is nearly impossible to copy a logo.

Corporate brand helps achieving the economies of scope, which means it is less costly for a firm to produce two separate products than for two specialized firms to produce them separately. For example Nike has a slogan of “Just Do It” across the globe and through its advertising Nike can promote its different products and services.

Due to advancement in technology and in communication world is becoming a small community. Consumers are more knowledgeable then ever. Globalisation is common between all the big organisations. Corporate brand is important for the globalise organisations to show that their core value is same wherever the product is.

Corporate branding is also very useful when organisations want to enter into a new market. This can be seen when Samsung entered into mobile communication market, Samsung did not have much experience in mobile market but their recent mobile model Samsung D500 has outclassed Nokia and Motorola’s models. This is gain mainly through innovation but brand equity played its part as well. Samsung is brand which consumers can trust and is known for a time.