How and why should an organisation with a portfolio of businesses unify into a single brand and proposition?
Noisy digital mass media favours clearly articulated, authentic brand propositions. Coordination of integration across multiple digital formats is becoming ever more complex. To be trusted, digital sources of information should be easy to understand and consistent across different devices, applications and websites. Achieving the same style and tone through every medium (within a few clicks), and to be trusted, is no small feat. But organisations with a portfolio of businesses have an advantage - to be able to unify into a more powerful and enduring single brand.
Typically, customers spend more with those that consistently present a clear and simple brand and proposition. According to McKinsey, “Consumer companies have achieved rates of revenue growth two to five times higher than their historic norms and saved 20 percent of their overall marketing expenditures [with global brand rationalization]”.
While the complexity and risk can be daunting, the transition – if effective – to a single brand can provide an opportunity to rethink messaging and potentially improve market position and performance. A single brand can increase differentiation and save costs, which would otherwise be spent on maintaining duplicate brands - often overlapping or even competing with each other.
Benefits of a single brand include the sharing and use of data and insight, which boosts awareness, and expanded customer choice - based on combined capabilities. In summary;
? Clarity – everyone knows what the brand is about
? Reduced complexity (of operations)
? Marketing efficiencies
? Satisfy the most customers at the least cost
However, an effective transition requires more than a knee jerk change. Before rushing in headfirst, determine the feasibility of a single brand through various fact based analysis; market channels, segments and share, brand position, attributes, equity and heritage, perceived position and customer loyalty, etc. Check whether the market scope of each individual business, for example, is wider than the potential of a single brand. Carefully balance the market requirements of each individual business.
Listen and communicate with key stakeholders
A thorough understanding by all stakeholders on the plan to transition to a single brand is essential. Reconciling views afterwards is more difficult. Ask employees and stakeholders how they view the portfolio of businesses. Initially employees of each business are likely to feel threatened by the prospect of change. Also, understand customers’ reasons for choosing each brand over its competitors. Customers loyal to an individual business could equally appreciate a single brand. Parallel positioning, in the interim, could help achieve a gradual transition in customers’ minds.
Avoid a clash of cultures
Bring together the cultures of the individual businesses. Early employee communication can help create a more inclusive environment and deter rumour or speculation, and stem possible employee attrition. Employees want their voices to be heard and need to know that they matter. If employees understand the reason and benefits of a single unified brand, they are more likely to embrace change. Provide employees something to rally around (a launch event or workshop). An internal communication program, for example, can inspire employees’ enthusiasm.
Ensure customers are also made aware of how a single unified brand benefits them. Otherwise, it could instil concern of being affected by price hikes or a reduction in quality. Remember, client facing employees can help articulate customer specific messaging.
Understand the potential long-term benefits
While quick wins are important, it’s worth balancing them against the possible long-term improvements of brand integration across the portfolio of businesses – given the potential scale and ability to change. Particularly if there is leverage from connecting the businesses in a customer’s mind. Also, a quick brand change would likely require additional spending on promotion. Measure the strength of each business. An individual business with a strong heritage is likely to have brand equity that competitors crave. How can you preserve and use it to gain market share? How can the businesses support each other rather than operate independently?
Unifying a portfolio of businesses into a single brand can be scary, as it risks losing customers and requires changing mindsets. Unless competition for a unified position is already at your door, a timely transition instead of a drastic change to a single brand can help. You could initially focus all new marketing activities on the single brand, for example, while retaining individual business status quo. Then, there is time to transition existing business more effectively to a single brand. You could also leave intact a website for an individual business, and its content, to avoid any negative impact on digital search rankings and traffic. Once the return from a single branded website is achieved, the individual business website could be redirected. A transition plan and timeline to reach the endgame is critical.
Formulate a strategy
Business leaders are critical to the successful alignment of actions and messages of an organisation. Hold a planning session during which leaders of each business can agree on a single brand, to clearly and concisely reflect the combined strengths of a unified proposition. Also, consider whether to create a new name, logo or co-brand.
The overall strategy and roll out plan, developed cohesively (to be more effective), should include:
1. A defined concise single proposition (with distinct value positions), including the story and messages behind the brand.
2. A (stand-out) identity – logo, a distinct promise, tone and visual identity (guide) – which can be used as a foundation for all communications and activities.
3. Tools and master assets – video, brochure, datasheets, email template, advertisements, Sales presentation, etc. Every customer touchpoint should be on message.
This is only the start. For a sustained unified voice, it’s imperative that every employee understands what the single brand is about – why it does what it does. This also helps bring together the cultures of the individual businesses. Remember to sufficiently engage and empower employees (train and support them), so that they actively choose to champion a single brand and its message. Equip employees with the knowledge and tools to communicate a clear and consistent brand message. Not necessarily through a specific silo team. Instead, consider some kind of resource that transcends the entire organisation - where everyone can find consistent information.
Employees are your greatest asset, so get them on board.