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1、BEYOND THE DEALWhy Brand Migration Makes Or Breaks M&APRO-LOGUEM&A is experiencing a resurgence after a lengthy down period.Several factors contribute to this rebound:economic recovery post-pandemic,sector-specific growth,notably in technology,and increased private equity and corporate synergies.Wit

2、h its extensive experience working with clients undertaking brand acquisitions and migrations,Ogilvy Consulting shares its learnings alongside a new quantitative research study among top executives who have gone through M&A,done in partnership with NewtonX,a trusted B2B market research provider.The

3、study was conducted in May 2024 across the US and UK.The survey engaged 160 senior business leaders involved in brand acquisitions or migrations.Participants were selected based on their involvement in mergers or acquisitions within the past three years at companies with revenues exceeding$500 milli

4、on.Within the survey we explored their rationale for M&A,strategies for the brand migration process,their challenges,results and overall satisfaction level-all contributing to the learnings in this report.M&A is finally picking up,and this study will help executives unlock impact through their brand

5、sWHY BRAND MIGRATION MAKES OR BREAKS M&A2OGILVY CONSULTINGContents04 Introduction05 Key findings1.Not enough focus on the post-deal2.Brand migration decisions can impact business results3.Investing in people and change management are critical for success16 Summary of findings&path forwardINTRO-DUC-T

6、IONM&A is an event equal parts exhilarating and complex for both sellers and buyers,and the role of brands is significant in maximizing the benefits of any acquisition.From our survey,M&A activity is most commonly driven by the need for revenue growth.Drive revenue growthExpand into new marketsIncre

7、ase competitiveness Expand into new consumer segmentsIncrease innovation of new products&servicesGrow channels of distributionREPORTED PURPOSE OF MOST RECENT M&A ACTIVITY AMONG BUSINESS LEADERS:83%66%62%59%56%51%Ogilvy Consulting-NewtonX Brand Migration Survey May,2024Question:Which of the following

8、 best describes the purpose of your most recent brand or business acquisition or merger?Please select all that apply.INTRODUCTIONHowever,there are many pitfalls along the way.According to multiple Harvard Business Review reports,70%-90%of M&A transactions fail.Our new study reveals another astonishi

9、ng figure:The risk with M&A activity is too much buzz and focus on closing the deal and not enough on optimizing the integration phase.In this report,we suggest ways to address this blindspot to unlock more value from M&A.of executives are very satisfied with their brand acquisition and migration pr

10、ocesses.Only 7%WHY BRAND MIGRATION MAKES OR BREAKS M&A4OGILVY CONSULTING1Our study reveals that most companies did not have brand migration processes,teams or external support during their most recent M&A.The problem is even more acute in the UK,where fewer processes and support mechanisms are typic

11、ally in place compared to the US.Here,brand is often deprioritized until after the deal,meaning that key considerations for migration were not being accounted for.In both cases,there is an significant lack of process and strategy given the scale of the undertaking.Not enough focus on the post-dealOg

12、ilvy Consulting-NewtonX Brand Migration Survey May,2024Question:Which of the following most accurately describes your companys process during the most recent brand acquisition or merger?Select all that apply.We had a dedicated brand migration team that managed itWe used our company migration process

13、 in place for all acquisitionsWe did not have a system in place and defined a specific strategy for this acquisitionWe hired an external consulting agency to support usCOMPANYS PROCESS DURING THE MOST RECENT BRAND ACQUISITION OR MERGER:44%43%37%31%Dedicated migration teamMigration process in place f

14、or all acquisitionsNo process in place;defined specific strategyHired external consulting33%55%39%48%40%30%29%34%US UKKEY FINDINGSWHY BRAND MIGRATION MAKES OR BREAKS M&A5OGILVY CONSULTINGThe study shows that hiring external support from companies that specialize in transformational change can contri

15、bute to the success of a migration process,not least through the objectivity that external expertise brings.HiredDid not hireMIGRATION PROCESS SATISFACTION LEVEL FROM COMPANIES THAT HIRED VS.DID NOT HIRE EXTERNAL CONSULTINGOgilvy Consulting-NewtonX Brand Migration Survey May,2024Questions:We hired a

16、n external consulting agency to support us.What was your overall satisfaction with the brand acquisition or merger and migration process?(scale 1-10)26%74%45%55%High satisfaction(8-10)Low satisfaction(1-7)External firms bring knowledge,experience and objectivity to a process that is frequently very

17、emotional“Brand is taken very seriously at Workday.We know it is our most valuable asset,and it will help us to drive future growth.”BETH MARTINEZ,SR.BRAND DIRECTOR AT WORKDAYFor instance,Workday frequently acquires companies to deliver on the evolving needs and trends in the enterprise technology s

18、pace.The companys brand team is involved before closing a deal,and they have decision trees and guidelines in place to help make brand decisions.They manage change through a multifunctional team that includes leaders from the acquired brand.And in situations in which there is no alignment on the bra

19、nd migration decision,they use external support to lead to solutions with higher value potential.NOT ENOUGH FOCUS ON THE POST-DEALKEY FINDINGSWHY BRAND MIGRATION MAKES OR BREAKS M&A6OGILVY CONSULTING2A strong brand is an asset that can align an organization.With a purpose and vision a brand can help

20、 drive engagement and create deeper customer relationships.Acquisitions have the power to become a catalyst for organizational growth,so deciding how to handle the acquired brand is critical.Despite 68%of companies deciding on branding before or during closing,a sizable portion still grapple with th

21、eir post-acquisition brand strategy.Having a brand migration strategy is key,and strategies vary dependent on the circumstances of the brands involved.Brand migration decisions can impact business resultsM&A is a moment in which brands can add or subtract significant valueBRAND MIGRATION STRATEGIES

22、DEFINE IF AND HOW THE BRAND EVOLVES AFTER M&A%of brand migration strategies,in which brands were integrated to the business:58%Kept acquired brand as it was,integrating it to the business20%Migrated to the brand making the acquisition11%Kept the acquired brand with a new endorsement6%Migrated to a n

23、ew sub brand5%Migrated to a totally new brandOgilvy Consulting-NewtonX Brand Migration Survey May,2024Question:Which of the following most accurately describes your companys brand migration strategy(i.e.,how the brand name and identity changed)after the most recent acquisition or merger?KEY FINDINGS

24、WHY BRAND MIGRATION MAKES OR BREAKS M&A7OGILVY CONSULTINGBrands are kept unchanged in 58%of the cases For consumer packaged goods(CPG)companies like Mondelz and The Coca-Cola Company,M&A is critical to diversify their portfolios,respond to evolving consumer preferences,and remain competitive in a ma

25、rket increasingly driven by health-conscious,environmentally aware,and digitally savvy consumers.Their most common strategy is to maintain the integrity of the brands they acquire,leaving them mostly unchanged.In 2022,Mondelz International made a significant move in the snack bar category with the a

26、cquisition of Clif Bar&Co.for approximately$2.9 billion.The deal was aimed at bolstering their position in key consumer needs such as health,nutrition,and energy.Similarly,The Coca-Cola Company has been consistently expanding its portfolio through acquisitions in the beverage space.The company retai

27、ns the brands it acquires to strengthen its competitive presence,particularly as category lines blur and consumer demands become ever more specific.A notable example is Coca-Colas acquisition of BodyArmor,which enhanced its advanced hydration portfolio and helped narrow the competitive gap with Peps

28、iCos Gatorade.In cases where brands are left unchanged,it is even more important to guarantee rigorous change management processes to effectively integrate teams,operations,and customer management.BRAND MIGRATION DECISIONS CAN IMPACT BUSINESS RESULTSKEY FINDINGSWHY BRAND MIGRATION MAKES OR BREAKS M&

29、A8OGILVY CONSULTINGBrands migrate to the acquiring brand in 20%of casesIn sectors like Technology,Finance,and B2B,it is common to see brands being acquired for their specialized capabilities or customer base,with the acquired brands often migrating under the acquirers brand to enhance overall brand

30、strength.Google acquired the smart home company Nest Labs for$3.2 billion in 2014.Initially,Nest products continued under their own branding.However,in 2018,Google began integrating Nests software and brand into its Google Home ecosystem to solidify Googles position in the smart home market and stre

31、amline its product offerings.Capital One acquired ING Directs US business in 2012,making Capital One the largest direct bank in the US at the time.By 2014 it had fully integrated the online bank under the Capital One brand,a move that capitalized on Capital Ones existing brand recognition while abso

32、rbing ING Directs customer base.In these migration cases,a best practice to keep the acquired brand team involved in the migration process,aligned with the future vision for the business,and internal champions of the change.BRAND MIGRATION DECISIONS CAN IMPACT BUSINESS RESULTSKEY FINDINGSWHY BRAND M

33、IGRATION MAKES OR BREAKS M&A9OGILVY CONSULTINGBrands change to a new identity in 22%of casesFor those brands that change to a new identity on acquisition,this result in an endorsement(11%),a sub-brand(6%)or a totally new brand(5%).New brands are typically created in cases of mergers,with endorsement

34、 and sub-brand strategies chosen when there is need to balance autonomy and show a clear connection to the parent brand.BRAND MIGRATION DECISIONS CAN IMPACT BUSINESS RESULTSKEY FINDINGSEndorsement example:Salesforce acquired the workplace messaging platform Slack for$27.7 billion in 2021.It quickly

35、applied an endorsement approach to add Salesforces enterprise credibility to Slack and signal a connection to and integration with the broader Salesforce ecosystem.Sub-brand example:Workday acquired Adaptive Insights in 2018 for around$1.55 billion and used a sub-brand strategy to add Adaptive Plann

36、ing to its portfolio.As a leader in cloud-based planning software,Adaptive Insights helped Workday extend its brand equity beyond its core HR solutions by integrating financial planning and analysis tools.New identity example:Stellantis was formed in 2021 when Fiat Chrysler Automobiles(FCA)and Peuge

37、ot S.A.(Groupe PSA)merged.The merger combined two companies with fourteen brands and is using its combined resources to develop new technologies for autonomous driving,new energy vehicles and other innovations.The name Stellantis comes from the Latin verb stello,which means to brighten with stars”.W

38、HY BRAND MIGRATION MAKES OR BREAKS M&A10OGILVY CONSULTINGThe brand decision is both rational and emotionalOur study quantifies the factors influencing brand migration decisions,and reveals that most factors are similar across different types of branding decisions,whether keeping the acquired brand,m

39、igrating to the acquiring brand,changing to endorsement,sub-branding or developing a new brand.However,there are some important differences for each brand strategy.As seen in the Google and Capital One examples,brands are often migrated to the acquirers brand when the goal is to strengthen the paren

40、t companys brand,enhance clarity,and consolidate the overall portfolio.Cases where a new identity is created whether as a sub-brand,endorsement,or entirely new brand are primarily driven by opportunities for growth.While many rational factors play a role,brand decisions are also often deeply emotion

41、al,due to each brands unique history and the relationship that founders,employees and customers have with it.FACTORS INFLUENCING THE BRAND MIGRATION DECISION BY TYPE OF BRAND MIGRATION3Growth opportunityBrand consistencyLeveraging brand equityStrengthening the brand making the acquisitionBrand clari

42、tyPortfolio consolidationInvestment requirementCompetitve threatRisk of changeComplexity of migration processRisk averse management76%81%86%58%69%71%59%63%66%52%88%63%53%69%60%47%59%40%41%50%54%49%50%29%38%41%40%39%41%34%31%31%29%Ogilvy Consulting-NewtonX Brand Migration Survey May,2024Question:How

43、much did each of the following influence your brand migration decision?BRAND MIGRATION DECISIONS CAN IMPACT BUSINESS RESULTSKEY FINDINGS Kept acquired brand as it was Migrated to the brand making the acquisition Changed to endorsed/sub-brand or new brandGray:responses with an index 120 against total

44、 sampleRed:responses with an index 80 against total sampleWHY BRAND MIGRATION MAKES OR BREAKS M&A11OGILVY CONSULTINGDifferent brand strategies can lead to different results M&A is disruptive,and to maximize value-and the chances of a successful migration it is important for customers to believe in t

45、he benefits of the merger or acquisition.Here brand plays a critical role,galvanizing employees and demonstrating commitment to the business ambition.While change is commonly perceived as a challenge among employees and customers,both appear to have more positive reactions and increased engagement w

46、hen changes are made to the acquired brand(endorsed,sub-brand or new brand).This demonstrates that investing in a brand migration and owning the moment of change can have a positive impact at the point of transition.IMPACT BY MIGRATION STRATEGY Kept acquired brand as it was Migrated to the brand Cha

47、nged to endorsed/sub-brand or new brandEmployees reacted very positively to the brand acquisitionCustomers reacted very positively to the brand acquisitionIncrease in engagement&interactions with customers13%25%29%27%25%34%67%72%77%Ogilvy Consulting-NewtonX Brand Migration Survey May,2024Question:In

48、 the months following the acquisition or merger,have you noticed increase/decrease/stability on the following?BRAND MIGRATION DECISIONS CAN IMPACT BUSINESS RESULTSKEY FINDINGSWHY BRAND MIGRATION MAKES OR BREAKS M&A12OGILVY CONSULTING3Investing in people and change management are critical for success

49、When it comes to challenges during brand migration,our study shows that change management is the primary challenge This is even more true in the UK where differing employee opinions and changes in leadership are generally more challenging.CHALLENGES DURING BRAND MIGRATION48%35%32%30%30%30%26%17%17%1

50、3%10%Change managementOperational issuesDiffering opinions among leadershipDiffering opinions among employeesChanges in leadershipEmotional attachment to the brandLack of alignment on the brand end-stateLack of knowledgeCost of marketingDealing with new vendors/agenciesBrand impairment costsOgilvy C

51、onsulting-NewtonX Brand Migration Survey May,2024Question:How much did each of the following cause a challenge during the brand migration process?Humans by nature are protective of their legacies,customers and brands.When a brand is introduced to a new ecosystem without clear direction on roles,blen

52、ding the cultures is more difficult and we often see territorial behavior.Change management is the#1 challenge and is even more significant for businesses that kept the acquired brand 55%Kept Acquired BrandMigrated to Acquirer BrandChanged brand44%37%KEY FINDINGSWHY BRAND MIGRATION MAKES OR BREAKS M

53、&A13OGILVY CONSULTINGLeaders know they need to manage change,but it is not easyNo two M&As are the same,and a cookie-cutter approach can rarely be applied.A critical part of the migration is to manage the commitment curve of employees in order to design the right experiences and strengthen customer

54、relationships.In our experience,emotional attachment to brands and founders can hinder the effectiveness of the change management process.Therefore,investing in collaboration,alignment,and clear communication is crucial.INVESTING IN PEOPLE AND CHANGE MANAGEMENT ARE CRITICAL FOR SUCCESSCollaboration

55、across our teams and acquired company teamExecutive alignment and directionBrand migration team integrating business and brand managementBrand migration procedures in placeFast migration decisionOutside supportWHAT WORKED WELL DURING THE BRAND MIGRATION PROCESS72%70%55%46%37%30%Ogilvy Consulting-New

56、tonX Brand Migration Survey May,2024Questions:Did you have a change management process in place through the acquisition or merger?How important is it to have a change management process in place during M&A?How effective do you believe it was?What worked well during the brand migration process?KEY FI

57、NDINGS89%PEOPLE ARE CENTRAL TO TRANSFORMATION;WITHOUT PROPER CHANGE MANAGEMENT,M&A IS SET UP TO FAIL92%But only 58%said their changemanagement process was effectiveof companies had a change management process in place after a merger or acquisition of leaders said change management is important durin

58、g the M&A processWHY BRAND MIGRATION MAKES OR BREAKS M&A14OGILVY CONSULTINGInvesting in the migration will help engage hearts and mindsPRIORITIZED INITIATIVES IMPLEMENTED AS PART OF RE-BRANDING/MARKETING POST-ACQUISITION OR MERGEROgilvy Consulting-NewtonX Brand Migration Survey May,2024Question:Whic

59、h of the following initiatives were implemented as part of re-branding/marketing post-acquisition or merger?Client-facing communication campaignChange in website design and layoutInternal change in communicationsDigital/performance marketingEmployees and sales force trainingInternal campaign with em

60、ployees68%68%68%75%80%80%INVESTING IN PEOPLE AND CHANGE MANAGEMENT ARE CRITICAL FOR SUCCESSIt is easy to get caught up in the short-term buzz of the M&A deal,but without a sustained brand investment the momentum gained can rapidly dissipate.Sixty percent of the companies surveyed spent over$5MM on m

61、arketing post-migration,an investment deemed critical to signal change and commitment.While initiatives vary,from our study client-facing communication campaigns,websites and internal communications are prioritized to help assure,guide and engage stakeholders post-M&A.KEY FINDINGSWHY BRAND MIGRATION

62、 MAKES OR BREAKS M&A15OGILVY CONSULTINGSUM-MARY1 2 3THE POST-DEAL PERIOD DEMANDS MORE FOCUS AND PROFESSIONALISM (PROCEDURES,BRAND TEAM,OUTSIDE SUPPORT,ETC.)THE BRAND MIGRATION DECISION SHOULD BE CASE-BY-CASE AND CAN IMPACT RESULTS WITH CUSTOMERS AND EMPLOYEESCHANGE MANAGEMENT IS THE#1 CHALLENGE AFTE

63、R AN M&A DEAL;ONLY 58%SAID IT WAS EFFECTIVE45INVESTMENT IN COMMUNICATION WITH CLIENTS AND EMPLOYEES IS CRITICAL FOR SUCCESSA HOLISTIC TRANSFORMATION INVOLVES AN UNDERSTANDING OF BUSINESS,BRANDS,OFFERINGS,EMPLOYEES AND CUSTOMERSLess than 10%of executives who went through acquisition and migration pro

64、cesses are very satisfied.And the right brand migration strategy can lead businesses to a strong upside,whereas the wrong strategy or pushing decisions to the future,can dilute value.FROM:Approaching M&A with only the“transaction”in mind,focusing on short-term value gainTO:Viewing it as a holistic t

65、ransformation with brand,people and processes at the core to unlock valueHolistic Brand Migration StrategyBusiness AmbitionBrandsOfferingsEmployeesCustomersSUMMARY OF FINDINGSThere is a need for a mindset shiftWHY BRAND MIGRATION MAKES OR BREAKS M&A16OGILVY CONSULTINGA path forwardStarting the proce

66、ss before the deal closes is essential to lowering the failure rate.For most M&As,news coverage tapers over six months;the only way to unlock value is to continue strengthening the brand,client relationships and the internal teams that will deliver results.It requires a disciplined path forward.Unco

67、ver and planSurface Barriers to understand Surface Barriers to understand cultures and points of friction.Operational issues and functional integration will consume resources.Do Your Due Diligence by assessing brand equities across a range of metrics to avoid emotional brand decisions.Kicking the ca

68、n down the road creates future problems.Lean into Experts by bringing in third parties to reinforce neutrality,apply proven expertise and establish a cadence that keeps integration on track.Excite and embedLaunch and Excite by staying close to customers and galvanizing employees and partners.Celebra

69、te the new and respectfully retire legacies.Invest and Support Treat your brand as an asset and recognize that it needs adequate resources to perform as a growth vehicleTransform and Lead Embrace change,question the status quo,and build around the future of the categoryLearn and improveMeasure and A

70、ct Measure key drivers and attributes that strengthen brand while helping client-facing teams better deliver on customer needsCodify and Iterate Learn from the process and journey to codify,iterate and prepare for future acquisitions.SUMMARY OF FINDINGSDimensions of the path forward:WHY BRAND MIGRAT

71、ION MAKES OR BREAKS M&A17OGILVY CONSULTINGHow we can supportBelow are some of the ways Ogilvy Consulting support clients maximize the value of their M&A through a Holistic Brand Migration Strategy.Business Transformation Strategy Sizing&Business Planning Brand Tracker&Scorecard Brand Valuation Brand

72、 Naming&Migration Brand Architecture Brand Purpose&Positioning Brand Messaging Brand Launch Roadmap P&S Innovation Offerings Launch Roadmap Offerings Messaging Talent performance&Identification measurement Employee Value Proposition Org Design Change Management Internal brand launch Customer Segment

73、ation Customer journey Audience Targeting Audience messagingSUMMARY OF FINDINGSHolistic Brand Migration StrategyBUSINESS AMBITIONBRANDSOFFERINGSEMPLOYEESCUSTOMERSWHY BRAND MIGRATION MAKES OR BREAKS M&A18OGILVY CONSULTINGWe help design growth answers for businesses and brands by unlocking insights fo

74、r short-and long-term impact with an unusual combination of rigor and creativity.AUTHORSTatiana Lindenberg Global Consulting Principal,USBrand Architecture&Portfolio SAndrew MartschenkoGlobal Consulting Principal,USBrand Architecture&Portfolio SMark Dewings Global Consulting Principal,UKBrand&Market

75、ing ICharlie HarringtonGlobal Consulting Director,UKBrand&Marketing Innovation CONTACTOR VISIT US AT PARTNERNewtonX is the worlds leading B2B research company enabling enterprises to make more confident decisions.They deliver primary research at scale by fielding large-scale quantitative surveys,facilitating qualitative interviews,engaging in long-term consultations and creating customized research plans.Visit to learn more.https:/ US