Accenture Case – Rebranding a Global Brand
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CASE STUDY : ACCENTURE
REBRANDING A GLOBAL BRAND
COMPANY KEY ISSUES:
Accenture is a multinational consulting, technology services and outsourcing company headquartered in Dublin, Ireland since 2009. The company employs 257 000 people in more than 200 countries all over the world with a net revenue of US 27.9 billion in 2012. Until 2009, Accenture was incorporated in Hamilton, Bermuda. The firm formerly known as Andersen Consulting was created in 1989 and was the business and consulting division of the accounting firm Arthur Andersen founded in 1913.
In 1942, Arthur Andersen & Co created a first version of the consulting unit, forming the administrative accounting group
In the 1950s the firm started presenting consulting services to their clients and renamed the unit the administrative service division
In 1954, the firm installed the worlds first business computer for General Electric
In 1979, the corporate renamed the administrative services division and called it the Management Information Consulting Division ( MICD)
In 1989, was created Andersen Consulting
In 2001 was adopted the name Accenture, marking a final separation with Arthur Andersen& Co
COMPANY COMPETITORS
Accenture operates in different fields , dividing Its activities between Communication , Media and Technologies, Financial services , Products, Resources, and the Public service. Therefore, the company has many competitors to share the market with, among them :
Deloitte Touche Tohmatsu Limited commonly referred as Deloitte is one of the largest professional services network in the planet employing over 200 000 employees in more than 200 countries. The companys services include audit, consulting, financial advisory, risk management and taxing which makes it a direct competitor to Accenture.
International business machines corporation ( IBM ) founded in 1911 is an american multinational employing over 430 000 professionals. Their activity evolves around consulting services, hardware and software. IBM is considered as the main competiture of Accenture due to similarities that both companies share.
Tata Group created in 1868 is an indian conglomerate company operating in 80 countries and employing over 455 000 people all over the world. The firm has a wide range of activities including communications, chemicals and consulting. One of the major companies of the group Tata Consultancy Services competes with Accenture due their similar activity and also due to the fact that Tata groups services are most cost effective and thus have a competitive advantage in the market.
CASE QUESTIONS
1.How would you characterize Andersen Consultings brand equity in the late 1990s ? What factors and decisions contributed to the building of this equity ?
In the late 1990s, Andersen Consultings brand equity was strong. As a matter of fact, the company benefited from a high level of awareness from clients and potential customers. Indeed, thanks to a wide and diversified marketing campaign, the total brand awareness increased from 32 to 79 percent between 1990 and 1993. Andersen Consulting was renowned in the United States and in other countries to be a leader in assisting companies in integrating new technologies to their business but also in helping setting up new strategies. Also, in order to build a strong brand awareness, the firm invested considerable amounts of money in 1998 for a marketing campaign including print and innovative airport posters in 30 countries aiming mostly business areas and economic and business magazines. An important part of this investment was spent sponsoring sports and cultural events such as the formula one auto racing, the Andersen Consulting Match Play Championship or the Van Gogh exhibit in Washington D.C .
The choice of the events to sponsor was obviously not random as it targeted business executives and CEOs for them to consider the firm as a creative leader in different domains such as IT and not only in consulting.
In addition to that, in order to know exactly the source of their brand equity and thus how to strengthen it , Andersen Consulting updated their logo in order to differentiate themselves from Arthur Andersen & Co and remove all the confusion that was in some potential customers mind. The tagline evolved from “Arthur Andersen & Co, SC” to a simple ” Ac”, showing that the firm provided different services related to technology and consulting. In the same spirit, the company hired PR firms to boost their image in press releases, industry publications and in major events to enhance the brand awareness and to mark their difference with other competitors such as IBM by presenting Andersen Consulting as a technology provider, a consultancy firm and as a corporate that helps other companies set up strategies and evolve in a competitive environment.
The factors that contributed to the building of this equity are:
The wide marketing campaign to launch the rebranding of Accenture Consulting and present it as a separate and independent entity.
The new logo showing the spirit of the brand positioning and the personality of the brand
The television spots during major events such as the New Years Eve launching
The decision to move to an eCommerce business environment
The companys vision statement : ” To help our clients create their future” showing their positioning as a corporate helping other firms reach opportunities
2.Compare the characteristics of Accentures brand equity to those of Andersen Consulting. Do you think the rebranding and repositioning of the company successfully transferred the equity from the old name to the new one ?
Accentures brand equity and Andersen Consultings have points of parities but also some differences. Indeed, the first rebranding of Andersen Consulting in 1999 prepared the company for the next step which is Accenture.
Elements of Andersen Consulting brand equity :
Name: Andersen Consulting: showed the core activity of the firm but didnt give an account of the wide range of other services provided