Subject. The article discusses how brand influences corporate and financial strategies. Objectives. We determine the role of brand in setting up transformation strategies, including M&A, financial indicators of companies. Methods. We relied upon methods of economic analysis and synthesis, comparison, matching. Strategic analysis is based on renowned concepts for strategic marketing and branding, including those proposed by M. Porter, Ph. Kotler, R. Kaplan and D. Northon, V. Kvint's methodology for strategy-setting. Results. Illustrating some cases, we justify the hypothesis stating that branding plays the most significant role in setting up transformation deal strategies for consumption sectors, light industry and fashion, while transformation processes in high-tech, banking are not always accompanied with rebranding. Furthermore, we suggest how it should be assessed whether it is reasonable to save a brand in case of M&A. Conclusions and Relevance. Businesses can refer to this study and respective cases to comprehensively evaluate business transformations, including new views of the role a brand plays for the financial feasibility of M&A deals across industries. The capitalization of a newly transformed company can be increased provided rebranding is more thoroughly considered as part of M&A.
Keywords: strategy, rebranding, mergers and acquisitions, retail
Porter M.E. The Five Competitive Forces that Shape Strategy. Harvard Business Review, 2008, no. 1.
Kotler P. From Sales Obsession to Marketing Effectiveness. Harvard Business Review, 1977, no. 55, pp. 67–75.
Kaplan R.S., Norton D.P. The Balanced Scorecard — Measures That Drive Performance. Harvard Business Review, 1992, no. 2, pp. 71–79.
Kvint V.L. Teoriya i praktika strategirovaniya: monografiya [Theory and practice of strategy-setting: a monograph]. Tashkent, Tasvir Publ., 2018, 160 p.
Astapov K.L. [The role of converting transformations in the development strategy of large companies]. Finansy = Finance, 2019, no. 11, pp. 42–49. (In Russ.)
Kapferer J.-N. The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term. 4th ed. London and Philadelphia, Kogan Page, 2008, 576 p.
Porter M.E. Konkurentnoe preimushchestvo: Kak dostich' vysokogo rezul'tata i obespechit' ego ustoichivost' [Competitive Advantage: Creating and Sustaining Superior Performance]. Moscow, Al'pina Biznes Buks Publ., 2005, 714 p.
Fernandes N. Finance for Executives. A Practical Guide for Managers. 2nd ed. NPV Publishing, 2017, 350 p.
Kotler Ph., Jain D.C., Maesincee S. Manevry marketinga. Sovremennye podkhody k pribyli, rostu i obnovleniyu [Marketing Moves: A New Approach to Profits, Growth, and Renewal]. Moscow, Olimp-Biznes Publ., 2003, 210 p.
Lindemann J. Brand Value in Mergers and Acquisitions. In: The Economy of Brands. London, Palgrave Macmillan, 2010. URL: Link
Moisescu O.I., Vu D.A. Brand Integration Practices in Mergers and Acquisitions. Management and Marketing, 2013, vol. 8, iss. 3, pp. 403–428.
Chung Y., Choi J., Kim A.J., Lee H. The Effects of Mergers and Acquisitions on Brand Loyalty in Luxury Brands. Global Global Marketing Conference Proceedings, 2018. URL: Link
Yang D., Davis D., Robertson K. Integrated Branding with Mergers and Acquisitions. Journal of Brand Management, 2012, vol. 19, pp. 438–456. URL: Link
Aaker D. Sozdanie sil'nykh brendov [Bulding Strong Brands]. 2nd ed. Moscow, ID Grebennikova Publ., 2008, 439 p.
Kristal S., Baumgarth C., Henseler J. Performative Corporate Brand Identity in Industrial Markets: The Case of German Prosthetics Manufacturer Ottobock. Journal of Business Research, 2020, vol. 114, pp. 240–253. URL: Link
Flikkema M., Castaldi C., Man A.-P., Seip M. Trademarks' Relatedness to Product and Service Innovation: A Branding Strategy Approach. Research Policy, 2019, vol. 48, iss. 6, pp. 1340–1353. URL: Link
Melewar T., Gupta S., Czinkota M. Global Business Management for Sustainability and Competitiveness: The Role of Corporate Branding, Corporate Identity and Corporate Reputation. Journal of World Business, 2013, vol. 48, iss. 3, pp. 285–286. URL: Link
Mindrut S., Manolica A., Roman C. Building Brands Identity. Procedia Economics and Finance, 2015, vol. 20, pp. 393–403. URL: Link00088-X
Pantano E., Dennis C., Melewar T. Technology, Brand and People: Branding, Identity, Image and Reputation in the Emerging Technology-Mediated World. Journal of Business Research, 2020, vol. 119, pp. 410–411. URL: Link
Astapov K.L. Strategy of M&A Deals in Oil Industry (On Example of Rosneft and Bashneft Deal). Ekonomika v promyshlennosti = Russian Journal of Industrial Economics, 2020, vol. 13, no. 2, pp. 137–148. URL: Link
Khvorostyanaya A.S. Razrabotka, realizatsiya i effektivnost' strategii razvitiya predpriyatiya legkoi promyshlennosti (industrii mody): monografiya [The formulation, implementation and effectiveness of the strategy for the development of the light industry enterprise (fashion industry): a monograph]. Stavropol, Logos Publ., 2019, 202 p.
Kvint V.L. Strategy for the Global Market: Theory and Practical Applications. New York, Routledge, 2015, 548 p. URL: Link
Parker G.G., Alstyne M.W., Choudary S.P. Platform Revolution How Networked Markets Are Transforming the Economy – And How to Make Them Work for You. W.W. Norton & Company, 2016, 352 p.