eureka was acquired by Midea Group to dominantly 'strengthen' the US market with a well-known (traditional) American vacuum cleaner brand.
Simple thinking behind:
high(er) Brand Awareness = easily more Sales (than using the Midea brand)
However, seldom the pure acquisition of a brand is a 'that easy' solution.
A strategy has to be in place why you purchase(d) the brand + what is, or at least can be, your strategy with this new brand 'asset'.
The undeniable + ultimate goal is always 'at least one' of below
= yes, shall mean you do not have to opt for all 3 - at least not at the same time:
- 📈 Grow Sales Volume
- 📈 Grow Market Share
- 📈 Grow Margin
Have in mind, even acquiring a brand to just destroy it or discontinue it
= is a well-known strategy many companies have applied to grow e.g. market share (of yet another brand).
Worst case scenario (is mostly) not having any strategy at all.
Preparing your strategy which includes brand building = using + improving the brand equity = aiming for higher sales and/or margin, an initial deep + thorough market analysis is required. A dedicated (and skilled!) team needs to understand the market/brands/competitor landscape + present 'their' respective brand strategy to all stakeholders.
Brand Strategy is not shooting a fancy new Brand Film!
...but includes a meaningfully (means on brand!) + competitive 'product portfolio', too.
In the eureka case, unfortunately, the global product team gave the responsibility to an in-experienced = in-capable local team which with their agency came up with very generic marketing jargon like:
"...because we understand our consumers,
we produce innovative products
which effortlessly make life easier..."
Indeed, all 4 aspects are always needed to be fulfilled:
- addressing consumer-centric insights = (core target) consumer (unfulfilled) needs
- offering relevant + meaningful product features = which reflect back + underpin the pre-defined brand positioning
- attracting + enabling (potential) consumer getting 'it' done effortlessly to enjoy life 'a bit more'
- bonding (newly) satisfied consumers by turning them into loyal (repeating) customers + brand ambassadors
Not sure how the eureka case has been developing after my departure.
While I was there, it was a classical case of:
- no clear nor new brand strategy, due to having:
- the wrong people acting in by insecurity driven silos
- spending budget on 'something' to do 'something'
- while hardly trying to leave the HQ brand team out...
Hell no, that's not a special case, but, in my opinion, happening to more than 2/3 of M&A's
- while HQ + local teams 'should' collaborate instead of...
- but, hey, that is another topic and not purely Brand Positioning related
= not here, not now... 🤪*
* I am currently working on a book with all those anecdotes = #staytuned
wrt eureka
- What a missed opportunity...
- Only the future will tell...
- Afterwards we are always smarter...
- Everyday is a school day...
- Let's keep an eye on eureka.com