When brands collide: dealing with acquisitions and mergers

A friend who is a former Brandvelope client recently asked a question I’ve had to answer a lot over the years: what are the most important things to consider when two brands come together? Good question…

A friend who is a former Brandvelope client recently asked a question I’ve had to answer a lot over the years: what are the most important things to consider when two brands come together? Good question.

The nature of the beast: risky but potentially awesome

In my friend’s case, his company is going through a friendly corporate merger / mutually agreed upon buyout – probably the best case scenario for a scenario where two established brands come together. It’s not a hostile takeover or a desperate fire sale, and the executive teams are merging as well, so players from both sides get to help make the calls.

But whether it’s a friendly handshake or a bitter feud, any time two companies come together for whatever reason, there is always uncertainty, turmoil, and potentially, lost or confused customers. And one of the touchiest issues is the brand assets – corporate, product, and otherwise.  Which brands, if any, will survive?

But wait a minute. Before you think about any of this, you need to work on one thing…

The one big question you need to answer

What is the big customer win? 

Essentially, you need to figure out as soon as possible why a customer would want your brands to come together. Not you. Not the other company. Not the shareholders or bankers. The people who pay you to do what you do.

I always tell my clients to think of this: “What do you want your key customer contact to tell their boss in plain, human language to keep them calm when they hear a big change is coming?”

Because if you don’t answer that question, they’ll find their own answer. And you may not like what they say.

And you can bet they’re not going to want to say “they’re hoping to make more money” and they definitely won’t quote that bit in your Press Release where you say “this will enable our newly combined entity to maximize market and production efficiencies and better address global supply chain… (etc. etc.)”

The story you want them to tell is the single most important thing you will decide – and it will make all the other decisions much, much, easier.

10 important brand decisions:

  1. How and when you will communicate to customers (hint: early and often)
  2. What you promise them (early and often – about the services they rely on)
  3. Who to put on your internal change team (and you need one).
  4. Which corporate brand adds more value (not always the bigger company).
  5. Whether to merge names or choose one (or consider launching a new brand).
  6. What products and projects need to die or be phased out (and do it).
  7. What products and services should survive (and be promoted to marquee brands)
  8. Whether to use launch as a chance to make a big splash (in the old market or even a new one).
  9. Whether to use launch as a chance to refresh approach to technology (CRM / Social media / Web site).
  10. How and when to use outsiders like me (because you often need someone to moderate who can say important things insiders can’t)

Oh, and did I mention to keep everyone focused on the big customer win?

 I’d love to hear from you if you have examples of brand mergers that have gone very right or very wrong. What do you think?

Sorry Ashton Kutcher. That’s a wipe-out.

Yesterday, a friend linked to the video below, wondering why Ashton Kutcher and advertiser popchips would post such a “racist video”. Then an online debate broke out about whether it is racist or not. I won’t paddle into that one, but I will offer this…

Yesterday, health a friend linked to the video below, wondering why Ashton Kutcher and advertiser popchips would post such a “racist video”. Then an online debate broke out about whether it is racist or not. I won’t paddle into that one, but I will offer this…

(Guitar Riff. Maniacal laughter.) WIPEOUT!!!

Anyone who’s had a joke fall flat knows that  humour is a tricky balance. It’s like surfing a wave. You’ve got to ride the edge between keeping your audience laughing and “sucking water” (so to speak).

But “edgy” humour is an even bigger wave, and humour dealing with controversial topics like gender, race, is the biggest, nastiest wave of all. Only the most skillful comedians can hold themselves on that edge without making people angry.  Peter Sellers did it brilliantly in The Party by creating a character that with stereotypes, but ends up making most of us love him. Will some people be offended? Sure they will. But most will sense the risk, see your skill, and cringing, go along for the ride.

Ashton Kutcher? Sorry my friend. Stick to the small waves.

Or better yet. Stay on the beach.

Update: The ad has been pulled by popchips.

Modest Proposal: re-brand France’s World Cup team

Call it football, information pills futbol, order or soccer, France has shown us all how not to play the beautiful game (or any other).

Well, after Team France’s epic failure to either a) live up to expectations at FIFA World Cup South Africa 2010 or b) even remotely play together as a team, the branding experts at Beg to Differ humbly suggest a new, historically evocative team name.

Steve Jobs announces “the greenest Apple product ever”

Another revolution from Apple? This one’s alive.

Just when you think the god-like product development powers of Steve Jobs couldn’t go any further, shop he launches a product that creates life itself. Let the hyperbole begin!

Behold: the ChiaPad.

“I really cannot say enough about this latest miraculous, viagra life-affirming, intuitive, and super, super green device, so I will continue to say it for the next 3 .5 hours.”
Steve Jobs at the ChiaPad unveiling

The new device is a joint project between Apple and Joseph products – makers of the classic Clapper and Chia technologies.

The shell of the device looks like an  iPad made of fired clay. But that’s where the similarity ends, because inside, the operating system is pure Chia.

Says Jobs: “You just add water and watch your content grow! It’s that easy.”

Apple officials were quick to dismiss as “fuzzy headed” the critics who have called the device a “closed ecosystem” that can only grow plants approved and sold by Apple.

And they also insist that while the ChiaPad might seem similar to several other devices on the market, the red clay is actually terracotta, and definitely not adobe.

“This changes everything you thought you knew about touch-sensitive herbal neo novelty technology,” says Jobs in the Webcast of the launch.

His demo was of course greeted with rapturous self-flagellation by Apple fans worldwide and long lineups at Apple stores, even though the product does not actually ship for several months.

Other features:

  • Herbal, organic and fully biodegradable.
  • Rain tolerant for true cloud computing.
  • Familiar interface for millions of iSod users.
  • Clap on. Clap off.
  • Thousands of apps available like Herb 2007 office suite, iMow, and Farmville – Monoculture Edition.
  • Battery cannot be removed, and don’t even mention Flash.
  • If you order NOW, we’ll throw in a second ChiaPad at no extra charge along with Ginsu Knives, a new ChiaPhone (data plan not included), and a Chia Head Steve Jobs (right).