Rebranding a corporate spin-off: Can a new brand name inherit global brand reputation?

Abstract

Corporate brand name changes are often involuntary as a result of mergers, acquisitions and spin-offs. In these cases the rebranding campaign aims at transferring the substantial brand equity of its established brand name to a new brand name. On the basis of the case of the spin-off of Holcim’s subsidiary in Vietnam, this paper identifies the success factors of collateral rebranding. After the cement maker Holcim left the Vietnam market, it spun off its subsidiary, which needed to change its brand name. The ensuing rebranding campaign showed that a trusted global brand can be substituted with a new brand name without loss of brand premium. This paper identifies three key drivers of successful collateral rebranding of a global brand: a total focus on the message of consistency of the branded entity, a consistent tangible representation of the brand entity and a global positioning of the new brand. It proposes that perception of consistency of the brand entity can be communicated through the visual similarity of the old and new brands, the maintenance of distributors and facilities and the continuation of management and sales staff.