Acquire, Then Rebrand

Acquiring another corporation usually means that the acquiring company's name will be the name of the newly merged entity. There is one factor that can change that -- one that is stronger than anything else. What is it? It is you, the consumer.

There is nothing that stirs fear in corporate boards of directors more than negative consumer feedback. The way a company is perceived -- through marketing of its product line to community involvement -- will determine whether the company ultimately succeeds or fails. Thus, it is the buying public -- consumers -- who truly determine the direction a company moves. Lost sales = a sinking business.

In acquiring another company, usually the larger company does one of two things:

1. It takes the smaller company and absorbs the company within the body of the parent organization. The acquired company retains its name and, for all practical purposes, appears to be a separate company. Consumer confidence in the brand remains static in this case. What is an example of this? Check out the companies/products owned by Beatrice Foods.

2. The acquired company is absorbed in totality; the name, assets, product line are all folded into the acquiring company. Little or nothing of the old company's name remains. An example of this is Cingular Wireless' takeover of AT&T Wireless.

In the second example, consumer confidence can be shaken especially if the Board of Directors missteps and fails to anticipate the public's reaction to the acquisition. A time honored brand, loved by consumers, disappears and consumers react negatively.

What are some good alternatives for Boards to consider? Basically there are two options:

1. Rebrand the name to reflect the joining together of two perceived equals. A case in point is the oil industry where you have ExxonMobil and ChevronTexaco to name two. Obviously, the first name is the premier name, but consumers still see the "loved" second name and are reassured.

2. Rebrand the name to reflect the more popular name even if the acquired company is smaller in size. KMart and Sears got "hitched" and the company was renamed Sears Holding. KMart was the acquiring company but the Sears name has less baggage than the bankrupt KMart name. The combined entity has gone one step further by maintaining separate stores with separate names, at least for now. Consumers who like the venerable Sears name can still be confident that it is "business as usual" for the retailer.

There are variations of the two options that Boards may need to consider. Witness BP's acquistion of Amoco: the name says BP, but the pumps say Amoco. Guess whose gasoline is perceived to be the better of the two?

In summation, the consumer ultimately decides whether your rebranded product will succeed or fail. Not bringing consumer sentiment into the mix early on in the acquisition process is potentially dangerous and can be expensive to remedy later on.

Matt Keegan's writing site can be viewed at http://thearticlewriter.com

---

What Make Us Unique and Different

Starting a business can take a lot of time, money,... Read More

Optimize Your Mailing List For Better Results

A list of customers who have previously bought from you... Read More

Branding Yourself To Increased Profitability

Successful Realtors know the importance of branding their identities into... Read More

The Keys to a Great Logo

Logo, graphic, icon, logotype, typogram, logoform, image?call it what you... Read More

Three Brand Identity Myths That Will Bring Your Business Down

To begin, let's define "Brand Identity," which is the combination... Read More

Why Should I do Business With You?

It's the question that is on the minds of all... Read More

Branding: Bring Back the Jingle!

Did you grow up in the '70s and '80s? If... Read More

Branding On The Web Is Like Mining For Fools Gold

I am sick and tired of marketing geeks touting the... Read More

Corporate Identity - A Rough Guide

A rough guide to corporate identityThe tabloids report the millions... Read More

How Much Is A Great Business Logo Really Worth?

A great logo can help a business project a positive... Read More

Could Ray Kroc have founded McDonalds in the Era of Sarbaines Oxley?

Over regulation of our free markets is stifling our growth... Read More

Importance of Business Branding

Branding is very important to a business, whether it is... Read More

Corporate Logo Design ? 6 Keys to Success

A corporate logo design should be highly instrumental in building... Read More

The Trust Issue In Marketing

One of the prime motivating factors in the purchase decision... Read More

What About Me? What You Need To Know About Me-Marketing

What about me? Are you asking yourself this question? If... Read More

Corporate Branding and Professional Logo Design

Any business with the minimum interest to be successful should... Read More

A Successful Failure

A successfully positioned business sometimes doesn't win a new client.... Read More

How Will Your Visitors Remember You And Your Business? Brand Yourself From The Crowd...

Big and Yellow 'M' reminds you McDonalds... 'DELL' with oblique... Read More

Pressure Washing Companies and Co-Branding

Pressure washing companies often miss what we call 'super niche'... Read More

Branding Article: Pepsis Missed Brand Opportunity

I love Pepsi. It's that slightly sweeter taste and the... Read More

Branding - More Than Just a Statement - A Memory Scar

Conjure up in your mind broad rolling meadows with runs... Read More

Are You Brand Worthy?

Branding is one hot topic, although it is wildly misunderstood.... Read More

Getting Started in the Mail Order Business. How Much Does It Cost?

INTRODUCTION To get any business started successfully takes many ingredients.... Read More

Notable News - The Branding Myth

How many times have you heard of seen advertising for... Read More

Quick Tactics To Brand Your Business And Make More Sales

This may come as a surprise... to you, but Branding... Read More

Company Vehicles Have Advertising on Them; Tips on Driving in Parking Lots

Try to avoid backing up whenever possible. Occasionally some one... Read More

The Face of Your Business, Part I

When we initially started our businesses, we had to decide... Read More

A Lesson in Branding from Paris Hilton

I have never been a fan of Paris Hilton.I see... Read More

Hiring the Right Graphic Designer for Your Small Business

Every small business needs it, but not many have it.... Read More

Build Brand Value BIG Time

Ask your self this question, In which business are we... Read More

Logo-ize For Instant Identification & Increased Awareness

The task of creating an indelible impact on the memory... Read More

Brand Building For Profit: The Colour Behind the Brand and Why I Wear Red Ties!

Colour is essential to building a strong brand.Many of you... Read More

Brand Building 201: Finding The Ideal Way

The strongest and longest lasting brands branch off of an... Read More