By William Grand, co-founder and CEO, Nutritious
key takeaways:
- Large brands are rapidly interested in small brands for agility in adapt to their innovation, fresh talent and market trends.
- However, risks such as cultural misleignment, loss of brand identity, and low creativity can arise from the acquisition of small brands.
- Successful acquisition requires clear communication, respect for the main values of small brand, and a strategy to preserve both identities, taking advantage of each other’s strength.
As there are changes in the business landscape, especially in the “Better” location, large brands have begun to recognize their stupidity to recognize their stupidity. Instead, they appear to accept the power of small brands, who have gained a power that is still unknown to them. With focus on innovation, consumer engagement taking a fresh, and more, small brands “they” are becoming increasingly interesting for big brands.
But despite this interest and clear professionals, various risks must be considered before these acquisitions – in front of such a bilateral in the business model, there may be a thick road forward.
Attractive qualities of small brands
Small brands offer a very unique business opportunities for today’s big brands in many ways. One of these is the method in which they contact product development, bends on the latest techniques and help shape and guide their processes. In this way, they are capable of shaking tired methods of product development that they may prove to be less effective in the modern trade scenario.
Small brands also dedicate more time to track market trends to better understand the industry to pill them as required, which helps in effective business decisions. With this, small brands are natural innovators, which monitor industry changes to ensure that they ever align with changing market needs. Large brands struggle with innovation in many ways due to simple obstacles of their size, requiring huge amounts of purchases before creating innovation moves, and may be the reason to focus on seeing changes in the industry.
Fresh talent with new ideas and perspectives can bring a big difference in business approach, with a new set of modern consumer and with a new set of needs and needs (eg, stability as a brand value) with. Small brands carry fresh talent with them that large brands require “shaking things” and gives them high location above competitors. This talent brings an embrace and knowledge of other methods to promote both products – such as through social media, which is an effective way to connect with modern consumer – as well as in delivery, revenue growth Opening additional channels for.
What is more, a level of enthusiastic entrepreneurship often underlines the culture of small brands, is responsible for an openness to change and entertain new ideas that may not be comfortable with large brands or of installed methods of operation The reason may be troublesome.
Possible risk on both sides of the coin
While there are clear benefits to achieve small brands, there are various risks for large brands when acquiring. One of these involves culture integration. There are often more rigid corporate structures with large brands, and when trying to absorb a small brand, there may be a serious misleading with the ability of a disruptive environment, making employees uncomfortable in both organizations.
The acquisition could have a smoothing of the unique identity of the small brand, which made it so attractive in the first place, with the big brands questioned why they finally try and pursue the dollar. The loyal customers of the big brand cannot understand what changes can be meant for the brand that they know and rely on it. They can question whether the change will be disturbed as to what they trust.
But there are also risks in favor of small brands. With the acquisition, small brands are subject to squashing of unique identity that they have begun to cultivate, which affects their customers’ loyalty, which can begin to question the brand’s product integrity. Will the major ingredients be replaced or eliminated? This is particularly possible when a brand is involved in its message, which focuses on being small, targets it. Authenticity is at risk, and fear of weakening transparency.
Small brands are also subject to losing autonomy and openness for new ideas that cannot be available in the culture of a large brand. When felt, creativity may suffer, and in some cases, even productivity. Ultimately, this acquisition will affect the success of the business and drop revenue down, as well as develop negative perception of both brands and acquisitions.
Acquisition strategies to ensure success
For larger brands, leading the process by accepting the uniqueness of the brand, communicating with all sides – especially employees who can be intelligent about the effects of changes – that acquisition is harmonious, and the integrity of the brand and culture It will be important. It is also important to introduce the value of the large brand for a small brand, so there is a clear understanding of what brings the large brand to the table only as much as an acquisition.
Externally, large brands should continuously communicate the message around the acquisition so that they can control the story and ensure an understanding of the transition, deny any issue of speculation about development. It is important to ensure that employees, officers and customers, as well as the general public for each brand, see the actual picture behind the acquisition and get it without negativity.
For small brands, it is necessary to ensure that their voices are still heard and they communicate their original values, especially in front of the potential identity weakening. There is always a possibility that a small brand will be swallowed by a large brand. Allow the vocal communication to be the guide of a small brand in maintaining your feeling of autonomy. Both large brands and officials of small brands need to keep the name alive and make a concrete effort to ensure that it maintains its integrity and values. It is important to maintain customer loyalty on both sides.
A relationship is designed to last
While the acquisition can be difficult and perhaps the whispering of the upcoming serious disruption, big brands and small brands can take advantage of their related strength – large brands have enough industry clouts and lead in small brand innovation – a powerful partnership And to come together for adequate revenue. Eventually, the two consumer base will join together and provide a new level of revenue that will benefit both large brands and small brands. Over time, by implementing some basic major strategies, an acquisition is likely to be comfortable and complete in a way that satisfies everyone.
With more than 35 years of experience in corporate management, sales and marketing, William serves as a co-founder and CEO of Grand NutritiousA company dedicated to elevating everyday food products with benefits rich in fruits and vegetables. In this case, the grand food practices its expertise in food retail, distribution, product development, logistics and administration, drawing on previous roles including launching international products and supporting start-ups, International Logistics and Supply Centers, and to support and use local managers, leaders and distributors. He has worked closely with companies in Asia, Europe and Canada.
Grand first played the CEO for Prithvi Eco Research LLC and president in McKay Specialities. He participated in Carlton University (HBA, Law, Psychology) and Upper Canada College.
