Maximising Marketing Impact During Mergers and Acquisitions
Pursuing a multi-brand company strategy is a wise decision for companies seeking growth and market leadership. Mergers and acquisitions (M&A) in the United Kingdom alone are expected to surpass £13.5 billion by 2024. A multi-brand approach provides several advantages, including portfolio diversification and risk reduction.
However, while the benefits are enormous, successfully implementing a multi-brand strategy is a difficult task. This complexity results from merging brands with their own identity, culture, and marketing strategy. To thrive, initiatives must be tailored to respect and magnify each brand’s unique personality while still matching with overall business goals. This blog will look at how to handle these obstacles using evidence-based solutions and key action takeaways to implement for your business.
Understand the New Ownership Structure
One of the first steps after a M&A is to clearly define and communicate the new structure to both internal and external stakeholders. Research shows that customers respond positively to brands that convey clear principles, beliefs and values. A 2018 study found that 66% of consumers would switch a product or service they typically buy to one from a purpose-driven company. Therefore, it is vital to evaluate whether the acquired brand will maintain its identity or rebrand under the new group umbrella.
Key Actions
- Evaluate Brand Alignment: to understand whether the acquired business aligns with the larger group. If they do, reinforce these shared values in marketing communications.
- Transparent Communication: to ensure everyone is aware of the new M&A.
Strategising Marketing
Maintaining brand loyalty post-acquisition is crucial. Studies have shown that brand consistency is key to retaining customers. For instance, a McKinsey & Company report uncovered that consistent brand messaging across all touchpoints can increase brand revenue by up to 23%. To leverage this, businesses can combine resources to enhance marketing efforts of the acquired brand.
Key Actions
- Consistent Messaging: that not only is transparent, but remains consistent across all channels.
- Leverage group resources: to enhance cross-promotion, larger campaigns and data-driven strategies.
Harnessing the Power of Digital Marketing
In the digital age, marketing is not just a support function but a driving force behind the success of any acquisition. Digital marketing offers opportunities to connect with customers, personalise communication and track campaign effectiveness in real-time. Some of the results we have seen after the adoption of digital marketing strategies could be a deciding factor to the acquisition success. For instance, we saw a staggering 1,066.67% increase in organic conversions after implementing a SEO strategy.
Key Actions
- Data-driven campaigns: that utilise advanced analytics for personalised campaigns which resonate with the unique audiences of each brand.
- SEO and Content Marketing: to ensure that the acquired brand maintains visibility and relevance.
- Developing Omni-channel Marketing Approach: that aligns online and offline efforts, creating a seamless customer experience across all touchpoints.
Defining and Understanding the Audience of Each Business
But before we start anything else, it is critical to understand the audience when managing multiple brands. Each may have a distinct customer base with specific needs and preferences. Accenture Strategy conducted a study that found that 73% of consumers prefer brands that tailor experiences to their needs. We can support this through a case study that saw the generation of 3,885 leads after clearly defining target audiences. In light of this, audience segmentation becomes essential in post-acquisition marketing strategies.
Key Actions
- Identify and Segment: the unique audiences for each brand.
- Personalised Marketing: tactics that resonate with each audience.
Communication Strategy
As previously stated, clear and consistent communication is vital during and after the integration of a new company. Employees must be aligned with new marketing directions to avoid mixed messages as well and customers. According to the Harvard Business Review, companies with strong internal communications are 50% more likely to have lower employee turnover, which directly impacts customer satisfaction and brand loyalty. And we have found that digital PR is an excellent way to manage the overall reputation of a business.
Key Actions
- Internal Communication: is essential to ensure all employees understand the new marketing strategy and role.
- External Communication: is key to communicate changes to customers through PR campaigns and outreach to maintain transparency and trust.
The Verdict
Successfully maximising M&A requires a strategic approach to all business aspects, especially marketing. While the strategy offers significant opportunities for growth and risk mitigations, the complexities of integrating these brands come with challenges. By implementing the key actions outlined in this blog businesses can not only preserve but enhance the value of their acquired brands, ultimately driving long term success.
At DNRG, we specialise in optimising marketing strategies during M&As to ensure brands achieve their full potential. If you’re looking to maximise the impact of your efforts, we’re here to help. Contact us to learn how our expertise can drive business success through performance-based solutions tailored for M&As.
