Brand after merger
Posted: Sun Feb 02, 2014 11:55 pm
This "problem" bugs me since Cap2. The brand your subsidiary owned, completely disappears after the merger.
I understand different brand strategies could make the new combined brand difficult to calculate. But it doesn't make sense customers suddenly forget what a product was like and its associated concepts over-night. I think the new brand should be the weight average of old brands from parent and child company.
If both parent and child company use unique brand, than it should be simple that a new brand is the weight average of
((market share % of parent) * (parent brand strength) + (market share % of child) * (child brand strength)) / (combined market share % of both parent and child)
If the child company uses ranged or corporate brand, than the child brand strength will be diluted and distributes to different products. (it could be simply divided into equal parts base on number of products produced, and weight adjust according to market share owned). If the parent company uses ranged or corporate brand, than the child brand strength will also be added as similar but in reverse.
I think this should help merger becomes a more useful tool even at early stage, rather than just for showing off your wealth.
I understand different brand strategies could make the new combined brand difficult to calculate. But it doesn't make sense customers suddenly forget what a product was like and its associated concepts over-night. I think the new brand should be the weight average of old brands from parent and child company.
If both parent and child company use unique brand, than it should be simple that a new brand is the weight average of
((market share % of parent) * (parent brand strength) + (market share % of child) * (child brand strength)) / (combined market share % of both parent and child)
If the child company uses ranged or corporate brand, than the child brand strength will be diluted and distributes to different products. (it could be simply divided into equal parts base on number of products produced, and weight adjust according to market share owned). If the parent company uses ranged or corporate brand, than the child brand strength will also be added as similar but in reverse.
I think this should help merger becomes a more useful tool even at early stage, rather than just for showing off your wealth.