Companies that acquire a brand may think they “own” it, but they are really brand stewards. They are responsible, like parents, to protect and grow the brand so it will continue to thrive under their stewardship.
Many brands have survived multiple owners. Many have died in the hands of poor brand stewardship. What are the rules that brand stewards must adhere to in order to keep brands healthy, growing, and valuable after acquisition?
1. Respect the integrity of the brand.
Is the brand just a label to move more of the acquirer’s product, or is it its own entity with nuances and properties that existed long before the acquisition? What does the brand stand for beyond the product?
2. Honor the brand promise.
Interview the users of the brand until you understand what they expect in terms of product, price, performance, marketing, and community involvement. Radical changes in how the brand has been perceived can be detrimental.
3. Don’t fix it if it ain’t broke.
Resist the “it-wasn’t-invented-here” mentality that views the acquisition as an opportunity for people to make their mark, even at the detriment of the brand.
4. Use evolution, not revolution.
Sure, some brands need a facelift, repositioning, or a complete makeover, but do it slow, carefully, and in stages so you don’t lose what you already have or confuse the market. The brand already has a following, and that’s why you bought it.
5. Understand all the facets of the brand.
Resist the corporate inquiry, “Just tell me the one thing that makes this brand work.” Likely, it is many things. Quick answers may satisfy the lazy, but an in-depth analysis can result in the discovery that you acquired a brand with multiple unique advantages.
6. Don’t exceed the “Brand Width.”
If the brand begins to expand due to your superior distribution, influence, or marketing budget, resist the urge to keep adding more product choices. This can cause the brand to lose its identity in the minds of the consumers.
7. Don’t oversimplify the brand.
Just because you may not fully understand the reasoning behind some aspects of the brand, like packaging or other nuances, don’t give permission to your production and marketing people to “simplify” it. Maybe this would make their jobs easier, but consider what it will do for the brand’s authenticity and distinctive image.
8. Honor the Brand Culture.
Brands should be more than the products they represent by standing for something beyond their mercantile value. Just trying to “milk” the brand’s popularity can only go so far before it becomes just a logo used for a particular commodity.
9. Don’t corporatize the brand image.
Standardization can make the work easier and can reduce costs, but what if the sales drop? The assumption behind most standardization is that the sales will continue at the same level they were before. Will they?
10. Make the best use of the brand’s former salespeople.
Ask what they think the particular selling points and unique advantages of the brand are. Hire the best salespeople and make sure your sales, marketing, and production staff listen to them.
By understanding that the brand had a life, personality, niche, and attraction of its own before it was acquired, the new brand steward can take the helm without wrecking the ship. By carefully studying and appreciating what was purchased on multiple levels, your staff can better resist the urge to make big changes right off the bat. The good brand steward will make the right decisions to grow, improve, and add value to the brand they are now responsible for.
Who We Are
Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.
Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.
They offer their Guiding Principles for Success (GPS) & Shelf Smarts courses to help consumer product brand builders achieve success. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.
Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular business site at www.thebarefootspirit.com.
To make inquiries for keynote speaking, trainings or consulting, please contact email@example.com.