May 31, 2024

Navigating the House of Brands Strategy in M&A

In the ever-evolving realm of business, the markets are buzzing with activity, especially within our clientele in the private equity sector. The dynamic landscape of mergers and acquisitions (M&A) presents a complex challenge, particularly when it comes to managing a House of Brands strategy. At Commence Studio, we understand the intricacies of this approach and have honed our strategies to ensure brand integrity while fostering substantial growth.

What is a House of Brands?

A house of brands is a strategy that companies use where a parent company and the companies below it have their own unique brand identity. One of the best examples of this is P&G. P&G is the parent company with brands below it like Crest, Oral B, Gillette, etc. Oftentimes, this strategy works because each of the brands below the parent company serves a different audience, need, or benefits.
This strategy works well when serving different customers, geographic areas, or offering different services.

House of Brands vs. Branded House Strategy

If a House of Brands strategy is one side of the coin, the Branded House strategy is the other. The Branded House Strategy is used when the parent company’s brand permeates all its subsidiaries.

Branded House Examples

One of the most recent examples of the Branded House strategy is Google. Google, the search engine, continued to expand its reach into other areas, including Google Chrome, Google Maps, and Google Cloud. Each product ties into the parent brand, building customer trust even when experimenting with a new product.
For the purposes of this post, we’ll continue to look at the House of Brand’s Strategy and it’s relationship to mergers and acquisitions.

Brand Autonomy: The Cornerstone of Individuality

At the heart of our house of brand strategy for M&A is the concept of Brand Autonomy. We are committed to preserving the unique identity and core values of each brand. This autonomy is not just about maintaining a brand’s essence; it’s about fueling innovation and nurturing customer loyalty.
By allowing each brand to thrive in its own space, we create a portfolio where every entity contributes uniquely to the collective strength.

Market Positioning: Carving Unique Niches

Understanding and defining the Market Positioning of each brand is crucial to avoid internal competition. What are the USPs of each brand? What is the perception of these brands in the market? Can some brands be merged without losing customer sentiment? Is the brand archetype really speaking to customers?
These are all questions we ask when we deep dive into the brands going through a merger and acquisition.
Determining a clear, non-overlapping presence in the market for each brand gives them space to grow and flourish in their respective domains and provides the organization’s leaders the leeway to absorb or create additional brands as needed.

Cultural Alignment

We strive to align the cultures of individual brands with the larger corporate ethos. This alignment fosters a unified vision and a sense of shared purpose, all while celebrating the diversity and individuality of each brand. Think of it like a corporate tapestry. Every brand’s culture might have slight differences depending on the workforce, leadership, and customers but with an overarching cultural identity from the top, the shared ideals and plans for the future are drivers for growth.

Strategic Communication: The Thread That Binds

None of the above strategies would resonate without Strategic Communication. We maintain transparent and open channels of communication with all stakeholders. By clearly articulating the vision, the unique value of each brand, and their collective contribution to the portfolio, we ensure that everyone is aligned and moving forward together.
In the intricate dance of managing a House of Brands, the balance between unity and diversity is paramount. Need help creating a strategy for your brand? At Commence Studio, we ensure that each brand not only shines on its own but also contributes significantly to the strength and growth of the entire portfolio. It’s a delicate balance, one that we navigate with expertise and finesse.
Want to learn more about our brand identity studio? Check out what makes this creative studio in Reno, Nevada tick.
At Commence Studio, we’re not just about strategies; we’re about creating stories of success, one brand at a time. Dive into the world of strategic brand management with us, and let’s navigate the complex waters of M&A together. 🚀