10. Brand Mergers and Acquisitions

To grow the brand, beat the competition and gain more market share, brands may decide to acquire or merge with a competitor brand. In some cases as well, when a brand is no longer profitable, they may be acquired by a bigger and more established brand. The management of this process is critical, as it can influence the success of the merger or acquisition. Brand mergers and acquisitions create multiple brand entities, which are uniquely positioned and directed at a segment. This strategic decision brings the possibility of growth, but can mean streamlining the brand portfolio, reducing the number of brands and making the portfolio more manageable. In this chapter we will explore branding from a holistic perspective, with a focus on brand management. As many brands come together, through merger or acquisition, there is a need to manage these brands and integrate them accordingly. Mergers come with operational and financial challenges, but our focus here is the business challenges. To understand the motivation for mergers, understand the challenges and discuss how to deal with them.