- July 31, 2012
- Posted by: essay
- Category: Free essays
In the contemporary business environment, branding may be a key factor that determines the commercial success of a company and its progress in the market. In this respect, it is very important to develop a positive brand image of a company among its target customers. Speaking about Accuro, it should be pointed out that the company has faced a serious problem of branding the new company on the basis of several existing ones. In such a situation, the company actually attempts to accomplish a very significant process of branding in a relatively short period of time that may be not very effective. In this respect, it is necessary to analyze possible strategies and approaches to branding that could facilitate this process for Accuro.
First of all, it should be said that the company’s decision to create the new brand is strategically correct. At the same time, it is necessary to realize the fact that the formation of a new brand is quite a complicated process and the company will inevitably face serious difficulties. For instance, the creation of the new brand implies significant expenses on its promotion since the new brand and, thus, the new company will be actually unknown to customers.
Consequently, customers may be quite apprehensions and more likely to make their choices in favor of the brands they know well. Also, the creation of the new brand should be carefully planned and prepared since it is important that the new brand contributed to the formation of the positive image of the company and stimulated customers to chose Accuro, instead of other brands.
In such a situation, it is possible to recommend avoiding the rapid and abrupt change of brands. What is meant here is the fact that the three companies that have been recently acquired by Accuro could continue their functioning under their traditional brands, at least for a certain period of time. In fact, the new company could demonstrate positive performance uniting several brands and it is possible to find a lot of examples of large multinational companies that use this strategy in their market expansion (Peters, 173). At any rate, Accuro will need some transitional stage for the creation of the new brand instead of the existing ones. Therefore, the radical change of the brand can hardly be effectively implemented in a short period of time.
Alternatively, it is possible to attempt to create the new brand and simultaneously preserve the elements of the traditional brands of the acquired companies. To put it more precisely, it is possible to use the brand of Accuro simply to unite the three newly acquired companies but preserve their traditional brand names along with adding the new one, i.e. Accuro. Basically, such an approach to branding of the new company seems to be the most effective since, on the one hand, it preserves the traditional brands of the companies and, therefore, contributes to the maintenance of the positive market performance through the preservation of traditional customers groups of these brands. On the other hand, the combination of the new brand with old ones gets customers used to the new brand and, in the course of time, it will be possible to totally replace old brands by the new one, when Accuro becomes well-recognizable and popular company.
Thus, it is possible to use different strategies to branding and chose any one of suggested above, but it is necessary to remember that the primary goal of branding is a customer. Consequently, it is necessary to take into consideration the position of customers while replacing the existing brands by the new one.