Diversified companies face challenges in their marketing outreach that need to be addressed. Goals should be set to overcome those challenges. The greatest challenges have to do with diversity. Diversity can lead to lack of focus and poor marketing communication. If objectives are met, diversity can become a strength.
Challenges
The main challenge is how to better manage marketing for diverse businesses under one corporate umbrella. Those diverse businesses were probably stand-alone companies at one time. They all had separate marketing departments and separate brands. They were probably bought and assembled into one corporation with the aim of reducing costs and leveraging each others strengths.
Cost reductions usually come by integrating systems, de-duplicating personnel, and sometimes reducing interest on debt if the acquiring company has a better debt rating. Marketing is sometimes left alone because of a lack of overlap in that area. Put another way, there is a perceived lack of synergy in the marketing departments.
Opportunities for Betterment
Integration should be the goal. Not necessarily complete integration, because the individual brands still have value. Nevertheless, some overarching corporate image should go along with the individual brands so the market can start to see some connectedness.
Some grouping of the diversified companies is desirable. Those groups should ideally have overlap among buyers of the products. That’s because the marketing outreach should start to converge so that a buyer of one product, service, or solution can recognize kinship with the other brands.
An important goal of branding is developing brand loyalty. It makes perfect sense to leverage the brand loyalty of one brand to develop loyalty toward its kin. Customers like companies for lots of reasons, including quality, value, design, customer service, etc. By not leveraging these qualities between brands, the parent company is not getting full value out of its structure.
Similarly, if one brand is clearly better and more recognizable over another, serious consideration should be given to eliminating the weaker brand. The stronger brand can absorb it.
Contact Think of Whiting
Contact Think of Whiting to help organize your brands and to develop a marketing and brand integration strategy.