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Do brands stand tall post-acquisition?

What happens to strong brands after they are acquired? Do they get overlapped by the parent company's persona, or still manage to stand tall? afaqs! finds out.

Three brands - Set Wet, Livon and Zatak - changed hand twice in recent times. In 2010, these three brands, owned by Paras Pharma, were bought over by Reckitt & Benckiser (R&B). However, 18 months later, they changed hands yet again - this time from R&B to the Indian FMCG major, Marico.

So what happens when brands are acquired or merged, that too so often? Industry observers opine that usually, in low-to-medium involvement category, the consumer is unperturbed by the change. And, if the brand holds a strong identity, the effect is zero. Unless the company makes an effort to communicate the same, consumers wouldn't even be aware of any such change.

"If the brand is Dettol, how does it matter who owns it," states Anand Ramadurai, head, marketing, MIRC Electronics.

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