Surviving the Collision: Navigating the Disruption of Brand Culture in M&A

(Vox360 editorial) – When a company undergoes a merger or acquisition (M&A), the resulting entity often faces various challenges in the integration process. One of the critical challenges is managing the combined entity’s brand identity. M&A activities involve combining two or more companies with different cultures, strategies, and brand identities.

However, effective brand management can help companies navigate the M&A process and create a solid and recognisable brand identity. A recent example of effective brand identity management in M&A is the merger of T-Mobile and Sprint. In 2020, the two companies completed their union, and they chose to retain the T-Mobile brand as the primary brand identity for the combined company. The new T-Mobile brand identity was launched with a new logo and brand messaging highlighting the company’s commitment to innovation and customer service. This successful branding strategy helped T-Mobile gain market share and establish itself as a leader in the telecommunications industry.

Companies should perform branding activities during a merger or acquisition to ensure that their customers, employees, and stakeholders understand the new company’s identity, values, and offerings.

Here are some branding activities that companies can perform during an M&A:

1. Develop a new brand identity: If the merged or acquired companies will operate under a new name, it’s essential to develop a new brand identity that reflects the new company’s vision, mission, and values. This may include creating a new logo, brand guidelines, and messaging.
2. Communicate the new brand identity: It must be communicated to all stakeholders, including employees, customers, and partners. This can be done through various channels, such as press releases, social media, and email newsletters.
3. Create a brand positioning statement: A brand positioning statement summarises the new company’s unique value proposition, target audience, and critical benefits. This statement can guide marketing and communication strategies and ensure consistency in messaging.
4. Develop a marketing plan: A marketing plan can help ensure the new company’s brand is communicated effectively to target audiences. The method may include strategies for advertising, content marketing, events, and social media.
5. Train employees on the new brand: Employees are essential ambassadors for the brand. They should be trained on the new brand identity, messaging, and values to ensure that they can effectively communicate with customers and stakeholders.
6. Conduct market research: It’s essential to conduct market research to understand how customers and stakeholders perceive the new brand. This can help identify areas for improvement and inform future branding activities.

By analysing the brand architecture, developing a brand essence, analysing brand equity, developing a brand positioning, and creating a brand portfolio strategy, companies can establish a strong brand presence in the marketplace and communicate effectively with stakeholders.

During merger or acquisition, organisations have four primary strategic branding options; what are they, and how can they be implemented?

1. Maintain both brands: This option involves maintaining the existing brands of both the merged or acquired companies. This strategy is typically used when the brands are complementary and there is little overlap between their offerings or customer base. To implement this option, the companies should communicate the decision to their stakeholders, ensure consistency in messaging and visual identity, and develop a brand architecture that clearly defines the relationship between the two brands.
2. Merge both brands: This option involves merging the existing brands of both the merged or acquired companies into a new brand. This strategy is typically used when the brands are similar and significant overlap exists between their offerings or customer base. To implement this option, the companies should develop a new brand identity that reflects the new company’s vision, mission, and values, communicate it effectively to their stakeholders, and ensure consistency in messaging and visual identity.
3. Retain one brand and phase out the other: This option involves retaining one of the existing brands and phasing out the other. This strategy is typically used when one brand is more vital or more valuable than the other, and it makes sense to consolidate the brand portfolio. To implement this option, the companies should communicate the decision to their stakeholders, ensure consistency in messaging and visual identity, and develop a brand architecture that clearly defines the relationship between the retained and phasing-out brands.
4. Create a new brand: This option involves creating an entirely new brand that reflects the merged or acquired companies’ vision, mission, and values. This strategy is typically used when the existing brands do not fit the new company’s direction or when a new brand can create a stronger market position. To implement this option, the companies should develop a new brand identity that reflects the new company’s vision, mission, and values, communicate it effectively to their stakeholders, and ensure consistency in messaging and visual identity.

Across-the-board, the strategic branding options available during a merger or acquisition depend on the nature of the companies involved and their business objectives. By carefully considering the strengths and weaknesses of each brand and the potential impact on stakeholders, companies can choose the best strategy for their situation and implement it effectively.

However, managing brand identity during M&A can be complex and requires expertise in both branding and marketing. This is where a digital marketing agency like VOX360 can play a critical role.

VOX360 is a full-service digital marketing agency with extensive experience in helping companies successfully implement brand strategy during M&A. Here are some reasons why you should consider approaching VOX360 for your branding needs during M&A:

1. Expertise in brand strategy: VOX360 has a team of branding experts who can help you develop a brand strategy that aligns with your business objectives and resonates with your target audience. They can help you choose the right branding option for your M&A, whether maintaining both brands, merging both brands, retaining one brand, phasing out the other, or creating a new one.
2. Experience in managing brand identity: VOX360 has experience working on brand identity during M&A, which includes developing a brand architecture that clearly defines the relationship between the brands, ensuring consistency in messaging and visual identity, and communicating the new brand identity effectively to stakeholders.
3. Digital marketing expertise: VOX360 is a full-service digital marketing agency that can help you leverage the latest digital marketing channels to promote your new brand identity. They can help you with everything from search engine optimisation (SEO) and social media marketing to email and content marketing.
4. Customised solutions: VOX360 understands that every company’s branding needs during M&A are unique. They can customise their branding solutions to meet your specific needs and budget.
5. Results-oriented approach: VOX360 takes a results-oriented approach to branding and marketing. They measure the success of their branding campaigns based on key performance indicators (KPIs) such as brand awareness, customer engagement, and revenue growth.

In conclusion, brand management is a critical aspect of any M&A transaction. Companies must carefully consider their brand identity and how it will be managed throughout the M&A process to ensure a successful outcome. Whether the decision is to maintain both brands, merge both brands, retain one brand and phase out the other, or create a new brand, effective brand management can help create a solid and recognisable brand identity that resonates with customers, employees, and other stakeholders. To successfully manage brand identity during M&A, companies should prioritise clear communication, ensure consistency in messaging and visual identity, and develop a brand architecture that clearly defines the brand’s relationship. With these strategies in place, companies can navigate the complexities of the M&A process and emerge with a solid and unified brand identity that sets them up for success in the future.