3- SBUs relations and holding branding
With the expansion of holding companies, their activities have become more competitive and the matter of core brand among them is more important which may cause the distinction of them from market situation. The more sponsorship plans of holding companies and SBUs conform, the more positive its effect will be in identity, feedback, common relations of holding brand and SBUs. Adversely, the weaker is the conformity of plans, the more negatively will affect the identity, meaning, and feedback and brand relations like barriers against holding brand management strategies.
Strong SBUs provide many strategic advantages to holding companies. These advantages are defined as brand capital. In contrast, famous holding companies introduce economic advantages and loyal customers to SBUs.
For instance, Emerson Company founded in 1890, in 2000 was converted to a global engineering and technology company from an electronic company by adopting a new strategy of the 3rd millennium, branding with changing the logo of the company for the first time from 1967 and shortening its name from Emerson Electric Co. to Emerson. In 2000-2001 it purchased the Jordan Industries Inc. Thus it provided access to markets of china, India and Malaysia. Then it purchased Avansys Power Co. at the price of $750,000,000 in October 2001 and it turned into the biggest foreign private company in China.
This investment retained the sales of 2001 as the last year. When other companies were in economic collapse, Emerson was obliged to reduce costs and make strategic investment for long-term growth. In 2001 it improved its 43-year revenue record.
Currently Emerson consists of 3 main companies: ABB Ltd., General Electric Company and Hitachi Ltd. And 33 other affiliate companies. Many of Emerson’s affiliate companies are not globally known, but with the global fame of Emerson Companies Group and its holding companies (Astec International Holdings Ltd. (United Kingdom), Fisher-Rosemount Holding AG (Switzerland), Emerson Holding Corp., Emerson Electric Holdings Ltd. (China)) the sales of affiliate companies enhanced.
With the depression in governmental investment in SBUs, holding companies in competition for acquiring the same capital, need to establish and retain the brand identity to reach the higher levels of brand capital by strategic locating and recognition in capital market.
On the other hand, holding companies and grouping of SBU companies’ value, SBU companies intensify and may successfully use the advantages of being brand. In this case, the strategic importance of the good definition of corporate branding of SBUs is clear and the alliance of these companies have positive effects on brand and reinforces the SBU companies of brand and help the stronger growth of loyalty emotion of customers and finally enhances the brand capital value.
The support of holding company of a brand or SBU, gives the opportunity of generation of brand holding, from a type of cooperation to a long-term cooperation and relation between two or more organizations and holding changes its position to brand. Holding and SBU activities both include a symbolic relation with transfer of inherent values of sponsorship to the activity. Development of this symbolic exchange in long-term period in a diversified area and range of activities forms the structural basis of common co-branding identity and the relation in between.
Regarding the mentioned discussion, consequently we will have relations with high congruity:
In low congruity we will have the adverse cases.
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