Handling Branding Through Mergers and Acquisitions - Page 3
2. Joint brand: This is often seen where the combined brand will be a combination of the acquired and the acquirer brand. This strategy is resorted to when M&A happens between equals. Further, both brands enjoy an equal or similar market standing, market reach and brand equity.
3. Flexible brand: This strategy is based on geographical separation. When two well known brands have come together and each of these brands are big brands in different geographical regions, then the resulting brand, though a combination of both brands, tend to reflect the dominant brand in the relevant geographical region. The General Motors – Holden brand is a good example. This strategy serves well when each brand is highly regarded in its primary region and letting go of the name will be detrimental to the brand.
Integrate the Brands with Precision
Integration is probably the most challenging of all issues after a merger. Integration, like branding, encompasses all functions of the company.
Especially when two companies have come together either through a merger or an acquisition, integration of organizational capabilities becomes quintessential for the merged entities’ survival and success.
Management should establish clear internal organizational expectations and guidelines for the interaction of employees, resources and brands to ensure that all activities are channeled towards the objective of a smoother transition.
A branding platform must be set up whereby brand managers of both companies can discuss the possibilities and future paths of individual brands. This would ensure that brand managers would work in tandem with each other.
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