Extract
[...] The different types of strategies 1.2.1.1. If the target brand is known When the target brand is known, the goal of a name change is to restructure the brand portfolio in order to focus on profitable and relevant brands (cash cows or stars). 1.2.1.1.1. The guarantee - Definition : The guarantee consists ofto transfer the initial brand (often weak or only local) under the guarantee of a target brand (stronger or more international) » (Lai, Aime, 2016). Quite often, a group umbrella brand absorbs a daughter brand before making it disappear completely from its portfolio. [...]
[...] The substitution naming change strategy is all the more effective when the products of the concerned brands are specific compared to the competition. In fact, in this case, the target brand's consumers will more easily accept the change in nominal identity and will buy the products under the new name without worrying about the change. When an initial brand changes its name to a target brand, we can speak of success only if, and only if, we can measure after a certain time: - an increase in market share and revenue of this brand (quantitative objective) - A positive evolution of the target brand's notoriety after the absorption of the initial brand (qualitative objective) In both cases, it is of course necessary to exclude external factors (macro and micro) that could respectively influence the growth of sales or notoriety. [...]
[...] BCG Matrix, Product Life Cycle and Portfolio Restructuring Often, a change of name of a brand is part of a company's desire to restructure its offer (the portfolio of brands is too diversified, the group has just carried out a merger and acquisition operation, etc.) Portfolio Restructuring : A group sometimes decides a name change after studying the BCG Matrix of product portfolio management. (Baynast, Lendrevie, Lévy, 2017) A marketing manager will, for example, bet on a product that generates a lot of cash (Cash Cow) or has high growth potential (Star) and decide to save the Dilemma and Dead Weight products by changing their brand name. The latter are often absorbed into strategic brands (Star or Cash Cows) The study of Life Cycle of the product or of a brand also constitutes a reason for a name change. [...]
[...] A name change impacts the marketing strategy, and vice versa. The responsibility that then falls to these teams is to ensure a certain coherence and continuity after the name change: - PRODUCT : the Product Marketing (or Development Marketing, or Strategic Marketing) manages the graphic identity, signage, product composition, maintenance of organoleptic qualities and recipe, variations, labels, etc.We change the name, but not the taste ». According to Kapferer (2007), product innovation in the case of a name change must always be subtle and finely mastered (market studies necessary beforehand). [...]
[...] Marketing & Communication 1.2.2.1. External 1.2.2.1.1. To consumers (targets, clients and loyal customers) To maintain the loyalty of faithful consumers to a brand after it has changed its name, it is necessary to do story-telling in order to disseminate a clear and precise message explaining the reasons for such a change. Several effective tools must be deployed: the press release, the advertising slogan, the fun and impactful communication campaign on social networks, etc. According to Lai and Aime (2016), when a name change involves the transfer of consumers from one brand to another, it is necessary to respect four criteria: - Use a clear slogan, such as Danone (Bio in Activia): ""Nothing changes except his name » - Implement the change step by step but within a relatively short timeframe - Maintain the target brand's visual identity - Axis its communication on a media and non-media strategy, according to the triptych:Prevent, transfer, consolidate ». [...]
