IBM: The Company’s Branding Strategy
IBM (International Business Machines) is among the world’s largest information technology corporations, offering a broad range of hardware, software, and services.
Fondly called the ‘Big Blue’, IBM started its journey in hardware production in 1911 when it was founded. It has prospered for decades to become a major supplier of mainframe computers. Today, IBM is not solely committed to producing hardware, but software and services too.
IBM’s Branding Strategy
IBM’s key selling point can be said to centre on its legacy. For a brand that has existed since the beginning of the 20th century, it has proven itself as a titan in the technology industry. Having witnessed major technological evolutions and transformations over the years, it has adapted to become stronger, more sophisticated, and better equipped to serve its customers.
Rediscovery And Strategic Growth
IBM’s story wasn’t always rosy. In the early 90s, the company suffered a major loss of $5 billion and was on the verge of collapse. The CEO at the time Louis Gerstner, Jr. decided it was time to restructure and rebrand the company. To do this, the brand referred to a quote of one of its founding fathers, Thomas J. Watson;
“All the problems of the world could be settled easily if only men were willing to THINK”.
By reconsidering and rebranding this idea, IBM was able to take itself into a prosperous future.
- Internal developments
The company started by resolving its internal systems. This included reducing expenses, selling off assets and restructuring the organisation into a unified system.
- Product reimagination
This was probably its most significant change; the product re-brand. The company truly transformed itself by shifting its focus from mainframe selling to a more service-oriented approach. This involved providing solutions from e-commerce optimisation to the global energy crisis.
“Let’s Build a Smarter Planet”
In 2008, IBM teamed up with “Ogilvy and Mather” for its e-Business campaign, “Let’s Build a Smarter Planet”. This timely launch came during the time of a global recession. The purpose was to promote a business environment seeking solutions to the world’s pressing problems.
Smarter Planet launched with the goal of communicating IBM’s determination to share knowledge, and start conversations with customers. It also aimed to inspire its workforce of over 400,000 people to see the value of their thinking and research.
The big idea was a call to action, a commitment to shared knowledge that would solve problems, and a promise to its customers. Smarter Planet was a rebranding campaign deeply rooted into IBM’s vision and business practices.
The rebranding strategy aimed to solve the world’s inherent problems by sharing knowledge that would be useful. Rather than focus on selling, the campaign encouraged conversations among its audiences.
During the period, IBM in collaboration with Ogilvy and Mather as a creative partner released a series of thought leadership pieces in The Wall Street Journal every Monday.
Summarily, IBM re-invented its brand, a 20th century company, from mainframe selling to a modern service-oriented and solutions-based company.
