How to Rebrand After a Merger

Branding challenges can exist for any company that has just gone through a merger.

Mergers can create an identity crisis for a company if not handled properly. Whether it is the company being merged or the acquiring company, giving short shrift to corporate branding issues during a merger is a recipe for future problems. This can be especially true for public-facing companies but is no less an issue for companies where only internal audiences will become aware of a new sibling company.

Things You'll Need

• Market research
• Advertising
• Public relations

Instructions

1. Initiate discussions immediately in the marketing department about positive and negative consequences on corporate identities as a result of a merger. Internal consensus should be garnered as to whether the merged company will assume the name of its new parent company and what the advantages and disadvantages might be in doing so. Assuming a new corporate name is the death of a corporation; however, many operational efficiencies might be realized from such a move. If the merged company will retain its name, the corporate brand will continue as if no merger occurred. This too could create problems along personnel lines if the role of the new sibling is not clearly defined.

2. Conduct research with all groups that will be affected by a potential merger. Determine whose name will survive post-merger or if a new entity will be born. The goal of the research is to float the idea of the merger and see what negative and positive feedback is created. If the company is large and public facing, plan to conduct focus group research in top revenue-generating markets with consumer and trade groups. If the merger will be of concern to only internal audiences, survey key trade accounts at the merging and acquiring companies to gauge reactions. Determine if others think the fit works and if not, why not.

3. If the company is public facing, advertising must be developed to communicate a new company name and logo if a name change has occurred. Also, any changes in product line or service as a result of the merger must be communicated and celebrated. Ensure consumers that nothing will be lost in terms of products and services they've come to expect. Advertising should create awareness of any changes that might effect business, such as if a product line will no longer exist. If packaging changes will result, continue to display the old product brand name in smaller size type along side the new name to eliminate consumer confusion at retail. Plan to run merger advertising and use merger packaging designs for six to 12 months after the merger. Individual product advertising from the merged company should continue to run as normal during the corporate transition.

4. Recognize that a merger is a major change and that people deal with change differently. Ensure corporate brands don't suffer by going into a merger with open eyes and opening the eyes of others to a positive view of the change to come. Mitigate any branding negatives associated with the merger using public relations in trade media. Press releases should go out to key financial and business publications noting any changes or additions to the board of directors, key senior management and overall business of the company. Give the rationale for the death of a corporate name. Assure that the merged companies will benefit consumers and shareholders even more.

References

• Branding a Merger
• Branding the Merger

Resources

• Targeted Advertising Group