From SupplierBusiness.com
LONDON — Suppliers must do a better job of building and utilizing their brand names, according to new research by SupplierBusiness.com.
Companies make a mistake when they submerge their identities or consolidate brand portfolios out of existence, say executives who were surveyed. By having a clear brand strategy they say suppliers can capitalize on their good name and good will. The cost of developing a brand strategy is low and the risk is small.
A strong brand means a company is taken more seriously in the bidding process and can open doors when trying to win new business with an OEM it has no relationship with. For example, Delphi’s corporate image is part of a process of educating OEMs that Delphi is not just a General Motors spin-off.
“Over time brands will become more important because ultimately they are what people paint as a mental picture of your company,” said Bill LaFontaine, global director of marketing at Delphi.
A strong brand can also be viewed as an asset and valued as such on a company’s balance sheet.
Maintaining several brands
As suppliers make acquisitions they are tempted to consolidate their brands to simplify and maintain the clarity of their main brand. But there are benefits from maintaining individual brand values, particularly for aftermarket business. Also, keeping a brand separate and alive makes is easier to sell it in the future.
When INA acquired bearings maker FAG it decided to maintain the FAG brand name and try to leverage it.
“The brand name will definitely be maintained because FAG has a great customer reputation and a great image,” said Dr J
