Computer Power Group
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Problem of current brand management in terms of a house of brands
Right things
CEO understands and is fully aware of brand, with internal communication and consistency (Gather all management level to change the brand) Even this company is profitable but the CEO still value the brand importance
Hire external party to research (Avoid blind spot and more objective and internal friction): Historic research and Research on competitor views
As initial structure as a house of brand, they can buy and sell acquired brand easily (M&A flexibility)
No connection benefit from house of brand and easy to target different segments and allow to competing brand/creating fighter brand and also easier to carry new experiment and innovation
It may be a good idea to run house of brands to compete because competitors were highly specialized and market share are concentrated just a hand of few players. But the company should assess the synergy of each brand and whether cross selling is possible or not.
Pitfalls/Bad things
No focus group because the company should not rely heavily on external research firms
A small number of senior managers with no explicit ties to the individual operating businesses
Senior managers run many brands altogether (
(manage the holding as a house of brands, integrating only accounting and finance) They should have some synergies if they integrate each brand.
Non organized brands and post merger integration
Take action too late (CEO may already attach to the brand) 2 years after being in the position
No economy of brand, scope, scale (Require people work the same jobs in different companies)
Conflict between CPGs training companies and CPGs own staffing and placement brands
Neglect of small brands
Never conduct market research or brand review.(Should review every two years or periodically)
Require more brand expertise to run the holding firm
House of brands is hard to retain expertise which is vital to run the IT business and survive in the industry because key issue is to retain qualified people
House of brands is not suitable for fierce competition from wholesaler, which result in reducing suppliers margin
Brand Identity Model is hard to interpret. Why customers choose us, why they leave us. It is too general that no market segment is performed.
Question 2
Less is more
Which