Propr ietary & Confiden0al
brandgrowthstrategy
StrategicnamingformerginghealthcareprovidersAfacilitatedworkshopwithcompanyCEOs
MichaelMillion
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Situation
Thethinkingaroundtheenterprisebrandisfluid
§ FROM: Thecombined“ABC+XYZHealthPartners”holdingcompany
§ TO: Amorepubliclyfacingandsingularmasterbrandwithcertain endorsedentities
IFamasterbrand,keyquestionsremain:
§ Whichisthebestnametouse?
§ Howshouldwetransitiontothatmasterbrand?
§ Howcanweretaintheheritageandequityofbothstrongbrands?
§ Whatshouldthenewbrandidentitylooklike?
§ Whatisthebesttimingfortransition?
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Today’sObjectives
Todiscussfactorsandconsiderationsinbuildingtowardalong-termmasterbrandforthemergedenterprisebysharingourperspectivesonthesituationandpossiblestrategiesgoingforward
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§ Namingthenewmasterbrand
§ Puttingpossibleend-statesintocontext–how“masterbranded”togo?
§ Transitioningtoanend-state-factorstoconsider
§ Alternativelogotreatmentsthatmergethetwoidentities
§ Insummary-roadmapandconsiderationsgoingforward
Agenda
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ConsumersintheXmarkethavealotofchoice
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Themergedentityhasanopportunitytobreakthrough
Defineanewbrandbe@erposiConedfortoday’smarketthatleveragestheequiCesandheritageofboth
CompanyXandCompanyY
NEWMASTERBRAND
EquiCesEquiCes
CompanyY
CompanyX
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§ Perceptionsofyourcompanythatdirectlyorindirectlydrivedesirableactionsresultinginabusinessbenefitis“brandequity”
§ Whiletheseperceptionscome,primarily,frominteractions,anamecancertainlysettherightdirectionforintendedassociations
§ Anamecanhaveintrinsicvalue,andcanbeanimportantsignalofwhatthebrandstandsforandwhatitbelievestobemostimportant
§ Alocation(NorthShore)
§ Aroleinsociety(Advocate)
§ Afounder(Mayo)
§ Acorebelief(HonorHealth)
Oneofthefirstissuestoresolvewillbethename
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Optionsforthename
ABC+XYZHealthPartners
ABCHealthCare
XYZHealthCare
NewName
Combineexistingnames
Chooseoneoftheexistingnames
Createanewname
Company
YCompany
X
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Ourperspectivesonthename
Thebestcorporatebrandnameshavecertainthingsincommon:
q Theyarememorable/easytouse/generally,theshorterthebetter(Google,Twitter,Microsoft)
q Theyhaveinherentmeaningofahigherorderthattranscendsfunction(Amazon,Oracle,Apple)
q Theydon’tlimittheorganizationrelativetoproduct,geography,etc.,asitgrowsintothefuture(GEasopposedtoGeneralElectric)
q Theyarerelevantto,andhelppositiontheorganizationwithin,thecategorytheyoperate(HonorHealthasopposedtoTenetorPresenceHealth)
q Theyhelptheorganizationstandoutandgeteasilyrecognizedindifferentcommunicationforms(written,conversation,digital)
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Ourperspectivesonthename
Giventheseobjectivecriteria,webelieveABCisthebestoptiontouseforthenewmasterbrandname
q Memorable/easytouse
q Hasinherentmeaningofahigherorder
q Notlimitingastheorganizationsgrows
q Veryrelevantwithinthehealthcarecategory
q Helpstheorganizationstandoutandgeteasilyrecognized(startingwithan“A”actuallyhelps,especiallyindigitalsearch,andlistrankings)
Inaddition,it’salreadyanexistingnamewithhighequityandscaledpresenceinthemarket,andthuswon’trequireinordinateamountofresourcestobuild,likeanewnamewould
Additionally,webelieveithasnonegativeassociationsorissuestobeconsidered
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Later,we’lldiscusshowtoleveragebothbrandswhilebuildingnewmasterbrandequitiesthroughdesignelements
NewMasterBrand
Company
YCompany
X
Name(discussed)
Color
SymbolDesignElements
Typography
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§ Namingthenewmasterbrand
§ Puttingpossibleend-statesintocontext–how“masterbranded”togo?
§ Transitioningtoanend-state-factorstoconsider
§ Alternativelogotreatmentsthatmergethetwoidentities
§ Insummary-roadmapandconsiderationsgoingforward
Agenda
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BrandArchitectureSpectrum
BrandedHouse HouseofBrands
InvestmentBankingTrading&PrincipleInvestments
AssetManagement&Securities
CustomerSegments/Need-states
BrandManagementResources
Competitors
Homogeneous Heterogeneous
Centralized/limited Decentralized/Abundant
Few/Large Many/Small
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BrandArchitectureSpectrum(HealthcareExamples)
BrandedHouse HouseofBrands
Hospitals/MedicalCenters
Enterprise
MedicalGroups
InsCtutes
Health Network Affiliate
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Ourperspec0vesonthebrandarchitecture–postmerger
§ Movingtowardamasterbrandstrategymakesalotofsense,BUT…
§ ….choosingwhichnametogowithandwhichentitiestoretainlegacyidentitiesforwon’tbeaneasyone(awholesaleconversionmightnotbeadvisable)
§ Bothinstitutionshavebuiltpowerfulmasterbrandsuntothemselves(clearlybothhavea“masterbrandphilosophy”),unlikeotherswhoneverunifiedtheirbrandsandmaintainedafragmentedportfolio
§ Ensuringthetransferofequityintothenewmasterbrandwillbekey,aswellasstrategicallydeterminingwhichentitiesshouldretainthelegacyname
§ Stepsandtiminginthistransitionwillalsobekey,asweareabouttodiscuss….
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§ Namingthenewmasterbrand
§ Puttingpossibleend-statesintocontext–how“masterbranded”togo?
§ Transitioningtoanend-state-factorstoconsider
§ Alternativelogotreatmentsthatmergethetwoidentities
§ Insummary-roadmapandconsiderationsgoingforward
Agenda
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Afteranend-stateisdetermined,atransitionstrategywillbekey
Current End-StateTransition
Processtowardintegratingtheinstitutionsfromanoutward-facing/brandperspective
Howdoweeffectivelyandefficientlybuildtowardamasterbrand?
Entities• Hospitals
• Departments
• Centers
• Institutes
Offers• ClinicalAreas
• WellnessPrograms
• LabServices
Illustrative–tobediscussedlater
Company
Y
Company
X
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Casesthatillustratedifferentapproaches
Delivery/OfficeProduction Energy
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FedEx/Kinko’s2004
TransitionalCo-brand2008
Transitiontofamilybrand
Today
Kinko’sbrand,whichhadhighequityinthecategoryisretainedfor4yearstotransferequitytoFedEx
NewsymbolintroducedtocallattentiontonewtypeofentitywithintheFedExenterprise
Transitionlinetoreinforceequitytransferandestablishnew,familybrand
Priorto2004
Descriptorlineaddedtoeasetransitionandclarifyfunctionofco-brand
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§ FedExHistorically—Verydisciplinedinmanagingitsbrandarchitecture,post-M&A
§ Leveragesitsmasterbrand
§ Drivessynergiesthroughoutitsportfolio
§ Clarifiesbreadthofoffers
§ KinkosAcquisition—Migrationto“FedExOffice”
§ Intotal,a4-yearmigrationtosuccessfullytransferequitytoFedExmasterbrand
§ "Kinko'sPrintingInside”signshelpedreduceconfusionduringtransition
§ SkillfullyuseddesignandcopytoindividualizetheKinko’sofferduringmigration
FedEx/Kinkos–HighlightsofTransition
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§ UPSmadenobigbrandchangestoMBEafteritacquiredthecompanyfortwoyears(from2001to2003)
§ In2003,UPSre-brandeditselftoreflectitsbroadenedcapabilities,andevolveitspositioningtocaptureahigherorderbenefitof“synchronizingthecommerce”
§ Aspartofthesystem-widere-brandingeffort,allMBElocationswereconvertedto“UPSStores”
§ TheMBEbranddidnothavethesamelevelofequitythatKinko’shad,andthuswaseasiertoeliminate
AcomparisontoUPS/MailBoxesEtc.
2003UPSre-brandsitself/convertsMBE
2001UPSacquiresMBE
2004Sold500newUPSStorefranchise
locations
2012MallBoxesEtc.changeditslegal
nametoUPSStore,Inc.
Synchronizingtheworldofcommerce
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Movingtowardamasterbrandrequiresforethought,systemsthinking,andflexibilityforentitiesthatrequiretheirownidentitiesormoretimetoconvert
§ Establishahigh-levelvisionbeforeyoubegin…
§ Clearlyarticulatetheenterprisebrandstrategy
§ Accrueequitytomasterbrandasquicklyaspossible;whileminimizingcosts
§ …andatthesametime,paycloseattentiontodetailsandnuances
§ Needadetailedmigrationplan
§ It’sabout“substance”(e.g.,positioning)notjust“optics”(e.g.,name,logo)
§ Clarifyimpactoftransitiononallrelevantstakeholders
§ Berealisticontiming.Someentitiesmaybeabletobeconvertquicklywhileotherwillrequiremoretime
Ourperspec0vesontransi0oningtoamasterbrand
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CaseExamples–EnergyIndustry
LegacyCompanies Transi0on EndState(Corporate) RetainedLegacyBrands
-
Cobrand,withanemphasisonChevronidentity.Overtgraphicdisplayofmergedentities
Cobrand,withanewfonttreatmentfor“word-mark”;symbolborrowedfromBPvisualidentitysystem
StationBrands
ProductBrands
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§ Allthree“BigOil”mergersresultedinasinglecorporatemasterbrand
§ ExxonMobilimmediatelymergedlegacybrandsintoanewmasterbrand
§ BPandChevrontransitionedtoasingleexistingmasterbrand
§ LegacyCorporatebrandswereretained,butnotatsamelevelofbrandarchitecture
§ Corporatebrands“demoted”tostationbrands(e.g.,Texaco,Mobil)
§ Corporatebrands“demoted”toproductbrands(e.g.,AmocoUltimate)
§ Productbrandsretainedandextended(e.g.,MobilSpeedpass)
EnergyIndustry-HighlightsofTransition
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§ FromanamingperspecCve,BPandChevrongotitright—Movingtoasingle,exis0nglegacyCorporatebrandisbe@erthanmergingtwolegacybrandsintoone§ Customers—Nearly20yearslater,customersandotherstakeholdersconCnuetorefertothemergedenCtybyitspreviouslegacyname(Exxon)
§ Employees—combiningtwolegacybrandnamesintoone(ExxonMobil)didmoretoperpetuatedifferencesthantoinspireunity
§ Expression—ExxonMobilhasstruggledwiththecumbersomenatureofitslogo,andhasperiodicallytoyedwithdevelopingashorthandversionofitsname
§ IfCompanyXandCompanyYfollowtheChevron/BPexampleabove(single,exisCnglegacy),theotherbrandshouldbeconsideredforotherpartsofbrandarchitecture§ Landmark(e.g.XYZEvanston,anABCHospital)
§ Building/wingcarryingdonornames(e.g.,ZTPAmbulatoryCare)
§ Prac0ce/treatment(e.g.,XYZNameCancerCenter)
Ourperspec0vesontransi0oningtoamasterbrand
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Considerationsinmovingfastvs.slow
Cost § There’softenatrade-offbetweeninitialandlong-termcosts
SignaltotheMarket
§ Aprudentlyrapidpacewillsignaldecisiveleadership
Confusion § Gofast…butnottoofast.Neversacrificeclarity,internalorexternal
Equity § Effectivemanagementallowsforfasterspeed
§ Differentcategoriescandictatedifferentspeeds
§ Whilemore“comfortable,”aslowtransitionmissesanopportunitytobuildequityintonewbrandsooner
StrategicPreparedness
§ WhenfutureM&Aactivityisanticipated,afastertransitionisrecommended(tospeedadoption/minimizeconfusion)
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§ Namingthenewmasterbrand
§ Puttingpossibleend-statesintocontext–how“masterbranded”togo?
§ Transitioningtoanend-state-factorstoconsider
§ Alternativelogotreatmentsthatmergethetwoidentities
§ Insummary-roadmapandconsiderationsgoingforward
Agenda
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§ Youshouldadoptamasterbrandstrategybecauseofthestrength,“criticalmass,”andoperationalandfinancialefficienciesthatresultsfromasinglemasterbrand
§ ABCisthebestnametouseforthatmasterbrandbecause
§ Itisanexisting(i.e.,notnew)name
§ Hasapositive,benefit-orientedconnotation
§ Allowsforgreatestdegreeoffuturegeographicalexpansion
§ Therearewaystohonorandleveragetheheritageofbothbrands,whiletakingadvantageofthis“momentintime”opportunitytocreateanewbrand(i.e.,beyondjustthename)
§ But,alotofworkisrequiredtodothiswell…
Ourperspec0vesinsummary
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Long-termBrandBuildingRoadmap
§ STRATEGYSETTING
§ Segmentation/Targeting
§ EquityResearch§ BrandStrategy§ BrandArchitecture§ TransitionPlanning
TimePeriod1(6months–1year)
TimePeriod2(6months–1year)
TimePeriod3(Ramp-upinyear2/3)
STRATEGYSETTING
STRATEGYSETTING
§ NameDevelopmentandTrademarking
§ VisualIdentitySystem
§ Guidelines§ BrandMessaging
CREATIVEDEVELOP.
STRATEGYSETTING
§ EmployeeTraining
§ Integrationintokeyoperations
§ Governance§ EventCoordination§ Int.Communications
LAUNCHPLANNING
STRATEGYSETTING
§ Ext.Communications
§ Marketing
§ StakeholderExperience§ Identityconversion
(e.g.signage)
FOCUSEDACTIVATION
STRATEGYSETTING
§ Continuedbrandintegrationintobusiness,offers,etc.
§ System-wideidentityconversion
§ print§ digital§ environmental
§ BrandManagementSystem
§ people§ process§ tools
§ OrganizationalDesign
§ Monitoring&Management
SCALEDOPERATIONALIZATION&MANAGEMENT
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§ Thinkbeyondthelogo-howthebrandshouldbestrategicallypositionedandarchitectedtoachievebusinessandmissionobjectives,andhowitshouldbeexpressedinentitytoevokethehumansideoftheenterprise
§ Thinkaboutthesystemofentitiesandoffers,whattheend-stateshouldbeforbrandarchitecture,andhowtotransitiontheminefficient/effectiveways
§ Thinkaboutkeyinteractionswithdifferentsetsofstakeholders-requiredtogeneratemomentum,shapeperceptions,andbuildequityovertime
§ Thinkaboutthesequencingofworkrequiredtobuildtowardastrongmasterbrand–whatcomesfirst,second,third
§ Thinkabouttheteam,operatingmechanisms,governance,andthemetricsrequiredtoensureprogressandaprofessionallymanagedprocessin-tunedwiththesensitivitiesofdifferentconstituencies
Considerationsgoingforward
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