Overview to Brand Mergers

Partnerships of different brands belonging to the same sector; It is a preferred business model as it has advantages such as more effective marketing management, efficient use of resources and cooperation.

Brand mergers are risky processes that require good preparation in proactive processes. The changes can also create negative effects on the target audience. If the brand merger process is not successful, competitors may steal your share and market share may be lost.

Combining brands; their non-compliance with company cultures, business processes and many other issues can cause irreversible damage to a brand.

For example, the Tikveşli brand was damaged in the merger of Tikveşli and Danone. To give another example, in partnership with Sony and Ericsson, the Ericsson brand has disappeared within Sony.

Based on these examples, we can say that attention should be paid to ensure equivalence in the combination of two brands. Topics that require attention are the first to come to mind; corporate color usage, font usage, concepts that customers are accustomed to seeing, etc. it can be listed as.

While expanding these titles, it should be remembered that brand mergers bring about a transformation of values, perception change and customer migration, and an action plan should be prepared on how to protect the brand that decides to merge. In this action plan, topics such as marketing channels, promotion of brands, consumer and market penetration should also be included in addition to financial and legal protection measures.

Structural Types of Brand Mergers

Brand mergers occur with four different structural changes;

Assimilation: Here, the merge happens under the roof of the powerful brand of the brand merger. Brands that are considered to be equivalent can be assimilated by the other brand over time. On the other hand, the current perceptions of brands and the future goals of this merger may be determinant. The important thing is to adapt the disadvantaged brand’s customer group to the new brand harmlessly. This merger requires much less communication budget and energy than others.

Complete Merger: It is a type of merger that occurs when the names / powers of the brands in the same field come together. Although there is a perception that a strong brand is ahead in this type of merger, sometimes the brand holds itself in a position to approve. In the example of Turkcell Superonline and Garanti BBVA, we can see both types. However, in both cases, the strong brand will remain essential. It can be introduced as a new brand name by using abbreviations in the company combination. Care should be taken that the other brand is not assimilated / perceived by the consumer in the same way in full mergers.

From scratch: Brands that merge make a new partnership where they create a brand new brand. In this case, brands can come out with a new identity by clearing the old foundations of the new brand. For example, Avea, which was born from the partnership of Aycell and Aria.

Fusion: In this type of merger, the merging of two brands creates a new energy. This innovation can find reality from time to time with visual identity and from time to time with small touches. The change in the visual identity of the Yapı Kredi Bankası acquired by Koç can be given as an example of this merger type.

Brand partnerships can also take the form of collaborations limited to new products. For example, Milka has partnered with Oreo and Bonibon to launch a new product.

Brand partnerships can also take the form of collaborations limited to new products. For example, Milka has partnered with Oreo and Bonibon to launch a new product.

In order not to damage your brand; You should make sure that nothing changes for the consumer or that the changes noticed do not have a negative impact. When brands are merged, it is necessary to consider to what extent the following factors will change for consumers:

  • Brand Awareness
  • Perceived Quality
  • Brand Image
  • Loyalty

Brand merger will only be in administrative-finance issues and if the consumer does not notice, there will be no negative change in your target audience. However, at this point, a definite answer must be given to the following question; “Will the consumer be aware of this merger or not?”

If they are going to be aware, first of all, how to create visual identity should be considered. Will a new logo be created or will old logo elements be synthesized? Will a new brand be created as a name, or which of the next brands will be above the hierarchy?

What will be the purpose presented to the consumer in the common story of the merged brands? Particular attention should be paid to this issue.

How will the differences between the workforce, pricing policy and mentality of the merging brands be balanced, and how will tolerance be provided for the consumer?

What unique selling promise will the merged brands create for the consumer?

A successful brand partnership can be achieved with the preparation of an effective action plan for all these factors, but it should be taken into account that mergers are not an event but a risky process that requires a long and professional support.

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