Identity in action - corporate identity

Communication World, Sept, 1990 by Laurence D. Ackerman

To capitalize on this economic trend, Amex decided not to change the basic strategy of the American Express card, but to offer a companion card to "members only" whose track record qualified them as superior credit risks. The Optima card was born, the credit boom was penetrated, and the integrity of the "crown jewel," the American Express card, was preserved.

Launched in 1987, Optima has gained critical share in strategically important markets globally. In 1987, Optima was voted by Fortune magazine "One of the 10 best products of the year" in its annual survey.

Texaco:

Consolidate Identity,

Seize the Moment

Over the course of the 1960s and '70s, Texaco's petro-marketing position went from first to fifth. Operating division autonomy led to broad inconsistencies in how the famous Texaco identity was portrayed which, in turn, diluted the company's overall retail image. Gasoline through-put fell well below US national averages.

The early '80s were a turning point for Texaco. The decision was taken to consolidate the Texaco identity in domestic as well as overseas markets and, at the same time, establish a new, vital look for the entire retail operation that centered around the re-introduction of the Texaco star as the focal point.

Coincidentally, there was a marked trend in fast food and "convenience" store growth in the United States. Texaco's retail gasoline operations were prime real estate--superbly positioned to capitalize on this trend by adding convenience outlets--StarMarts--to the facilities.

The introduction of Texaco's "System 2000" led to a 77.9 percent increase in gasoline sales at redesigned stations where direct before-and-after comparisons were possible. Per site volumes rose, on average, from 28 gallons per month to 160 gallons per month in a two-year period. Texaco's stations had become magnets for consumer attention and dollars.

Summary

Each of these companies knew how to use identity as a catalyst of strategic success. Each is stronger today than before. Most importantly, each has put into place a framework for growth in the 1990s that builds off of inherent capabilities which identity has helped to communicate, in the final analysis, to exploit for economic advantage.

What, then can we expect of identity in the 1990s? In brief:

* It will be a means of structuring a unified image for global enterprises for whom consistency of reputation is paramount no matter where they do business;

* It will be a clear statement of executive commitment to building long-term value for customers and shareholders, alike; a signal of management's desire to stay the course;

* It will reflect the "maker's mark"-- the organization behind the brand, the highest form of competitive differentiation;

* It will become a standard way of exploiting nascent economic trends whose impact spells significant business opportunity for smart competitors.

In short, identity in the 1990s will be an essential means of creating value--delivered by employees, recognized by customers and funded by invetors for whom return on investment is the bottom line.