Question

Topic: Branding

Is There Need For A Group Name?

Posted by Anonymous on 11/26/2009 at 9:14 AM ET 250 Points
The group has 3 brands, A, B & C (B2B). Each brand offer distinct services to the same group of clients. B & C are competitors to A target clients. As such, the 3 brands keep a distance from each other; we don't openly put the 3 brand name together. A is the market leader in its services category. Both A & B are the more established brands.

The current arrangement works well so far, however, it is also self-limited at times. There is no integrations among the brands and no coordinated efforts to cross sell. e.g. Client may want A, B & C services, but we don't go in to pitch as a group for fear of losing our existing clients if they find out of the relationship of A, B & C.

Our competitors are providing all 3 services (same as our 3 brands) under the same brand name. They offer clients one-stop services and also can leverage on cross-sell.

We are thinking of creating a group name (umbrella name) that link the 3 brands together. e.g. A is part of 123group, B is part of 123group... We think this will provide a strategic link and cross-sell opp, reinforce our group heritage and strength. Each brand will still retain its unique selling proposition. However, we also are concern how Brand A clients might perceive this change (reasons as mentioned at the beginning).

Is it wise to create an umbrella name at this stage? Does it add any value to the 3 brands in the long run?

Your views would be much appreciated.

Lynn
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RESPONSES

  • Posted by Gary Bloomer on 11/26/2009 at 9:34 AM Accepted
    Dear mcphersonlynn,

    If your overall group name is well known, I'd say yes, adding the three individual names to it gives each individual element more clout, more punch, and greater name recognition.

    When people read "XYZ Company: Part of the Big Name Group" they make stronger connections.

    As a naming technique I think COMBINING strengths has more power, particularly if your aim is to reach people who already know your group name and who know the XYZ name as individual elements, but who may not know the association between the two.

    I hope this helps. Happy thanksgiving.

    Gary Bloomer
    Wilmington, DE, USA
  • Posted on 11/26/2009 at 9:46 AM Author
    Gary, thanks & happy thanksgiving to you too.
    Just to clarify, we don't have a group name yet. We are thinking if we should create one to provide a link to the 3 individual brand and at the same allow the individual to retain its own elements.
    Lynn
  • Posted by Markitek on 11/26/2009 at 10:03 AM Accepted
    I'm trying to see what problem you're trying to solve, or what goal you're trying to achieve, by creating a family brand. You are number one, and two of your products are established in the market. All seems well to me.

    Let's think about what real value or benefit you'll get from the change . . . after you've paid significant sums to make it happen. Brand awareness can't be the answer, because you're the market leader. Cross sell, you mentioned, but I'm not sure how the brand structure will impact that. The part about competitors having A, B and C functionality in a single product is of interest: maybe you need to integrate them and create some kind of suite. But I would think the exercise here is to create a clear rationale for the value of it: how much additional revenue do you think you'll earn, and why.

    There's a feeling here for me that you've got a 5, 6,7 and 8 of hearts, and a 9 of diamonds, and you throw down the 9 to see if you can improve your straight to a flush. Not worth the gamble I think.

  • Posted on 11/26/2009 at 9:02 PM Accepted
    My first reaction was exactly the same as that of markitek -- leave well enough alone. But then it occurred to me that this is a question that can be very easily tested via an online concept test in which you measure intent to purchase for two concepts that are identical except for inclusion of an umbrella/group name in one but not in the other.

    We've done this sort of concept testing several times before and feel like we have gotten clear direction from the results. Some clients even came back for second and third applications of the technique, so they must have felt they received value too.

    On something this important, you owe it to yourself and your business to not guess at the answer to your question, even with input of experts (who don't really understand the specific situation or marketplace). Find a market research professional who knows what to do and let them set up a proper research study for you. You'll be glad you did it once you have the result.

    If you need a recommendation let me know offline using the email address in my profile.
  • Posted on 12/3/2009 at 6:51 AM Author
    Thank you all for the comments. There was a suggestion that a brand audit workshop is necessary. While we are established brands, we do not have a spell out defintation per se regarding our positioning, brand values, etc. I have not been involved in brand projects before. I was told a research could take months. Given the resources constraints and that we want to define our strategy by Feb, is there a shorter way to approach the audit process?

  • Posted on 12/3/2009 at 2:42 PM Moderator
    Brand audit research does not need to take months. It depends on the scope, structure and purpose of the research. If you are open to an "abbreviated" brand audit, we can probably help. My guess is that it would take 3-4 weeks from approval to proceed. Budget would depend on the category, the target audience, and the kinds of parameters you want to measure.

    There are also some other ways to get at the issues (besides a brand audit study). We can discuss if you like.

    P.S. Is your February deadline self-imposed/arbitrary, or is there a good business reason for it? If you could get a better answer, or save some money, could you live with March? April?
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