Question

Topic: Branding

Parent Company Branding

Posted by Anonymous on 6/13/2011 at 10:03 PM ET 500 Points
We currently have a parent company in place. the parent company has a well known reputation in its respective market. It has 2 subsidiaries. It also have a division, which has grown to become a company in its own right and will become a subsidiary now as well. Everyone agrees on this point.

The subsidiaries are similar business lines, 2 slightly compete with each other but not in the same geography. The biggest difference between the parent and subsidiaries are the geographies they target.

There is a common theme amongst all companies in terms of product/service offerings.

Question is: As the 'division' is now becoming it's own company, should there be a 'holding company' instead that then houses all 4 (parent company would no longer be the parent, it would be one of the holdings), as well as the other 3.

Is there anything to be lost by making the parent at the same level as the rest and having a holding umbrella instead. We downplay the parent for the other subsidiaries as they have their own strong brands.

Trying to figure out the pros and cons of this.....
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RESPONSES

  • Posted by SteveByrneMarketing on 6/13/2011 at 11:17 PM Accepted
    I see you asked a similar question on 6/14/2009. If you are still wrestling with the same parent/division/product branding strategies, please contact me (see my email in profile). This story is too involved to resolve in this forum.

    Steve
  • Posted on 6/14/2011 at 4:28 AM Accepted
    The answer to your question depends on many factors. It's not a simple yes/no answer based on a few factoids. And it's a very serious decision you're facing, so don't risk listening to a superficial response.

    In general, you have the basis for a separate brand/business when you have different target audiences and/or different positioning benefits.

    For more than that you ought to seek outside professional advice. There are a number of qualified consultants on this forum. Just look through the profiles of top experts, or post a project in the Hire an Expert section (in the right column of this page). Or take Steve Byrne up on his offer.
  • Posted by BizConsult on 6/16/2011 at 11:41 AM Accepted
    Be sure to also consider the marketing / branding implications of the naming structure. For example, for each name:

    - What is the level of awareness/recognition?

    - What attributes are associated with them?

    - What imagery/equity do they have?

    Then think about:

    - Can/should the naming hierarchy be made consistent across brands? Sounds like you're saying 'no' - if so is the parent / holding name adding anything?

    - Do they reinforce each other or do they make it harder to understand what is being offered and/or just convolute the advertising, selling materials, packaging, etc.?
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