Perspectives 2008: Sliders

Martin Bishop

A new tool for aiding brand portfolio decisions

Imagine for a moment that you are the CEO of a $1 billion-plus, single-brand company that has a strong track record of growth and a valuation driven by the expectation that growth will continue. The pressure is on.

Like many other CEOs who’ve faced this situation, you start taking a look at acquisitions to help keep the fires burning. The right opportunity comes along. It’s a good fit for your organization. It takes advantage of some of your core manufacturing competencies. The price is right so you take the plunge. Great.

But now you have a branding dilemma. How best to brand this new acquisition? Your first thought may be to use your existing brand because it’s the more efficient path. But there may be some important reasons not to. What if the acquired brand has a lot of equity, or your own brand doesn’t have credibility in this new space versus its new competition? Maybe the better option would be to use the acquired brand?