Question

In your opinion, is Emerson wise to reposition itself by branding all of its divisions with the Emerson name? Why would this be beneficial in selling to business markets? How might it be a disadvantage?

Answer 1

Emerson choice of rebranding all the divisions with Emerson is a strategic choice where it wants the divisions to be identified with the brand name rather than the individual name. What it does is gives the division the leverage of using Emerson's brand equity to support its products and also synergies the various divisions under a single umbrella. Since Emerson is a globally reputed company with more than 100 years of history in the electric sector and industry, having the Emerson name provides credibility to the individual divisions products. It also gives customers assurances that the individual divisions will adopt the good practices of Emerson to produce better quality products. It also lets the parent brand gets a boost to its image in the divisions country if it is not as popular as the sub-brand. This increases the prospects of the parent brands recognition in that country which may boost its business. The value of brand name emerson is transferred to the division creating value for them by association.

It might be a disadvantage if the brand image of the division name itself is very good. This current brand name might get diluted by emerson brand name and people will not recognise it anymore. This may affect the sales of the products which people buy by association with the brand name.