Background:
The design industry is relatively immature in Sweden but large on the international market, where companies have used services from industrial design firms for a long time. Companies incresignly realise that design is an efficient mean to gain competitive advantages on the market. Several design companies fancy growth and to receive a wider market share to expand on the international market. One of them is Design Communicaton who has made a couple of acquisitions, to receive wider comptences and to cover different segments. That has lead to an increased brand portfolio with different subbrands, which can be complicated to handle efficiently in the internal and external communication. If it is not clear what each brand stands for and what the groups vision is, indinstincts among the employees may apply regarding how to communicate the structure of the company, to emphasize the synergies from the subbrands that are integrated in a project. Meanwhile it is important to promote the nich qualifications of the company.
Pininfarina is a strong brand in the design industry and the company produces several prestige projects for different clients.The most famous project is that they design all the Ferraris and has a co-branding agreement together with them, which has given Pininfarina a strong brand capital. They also use concept cars on international trade fairs, longterm and sustainable design and the Italian design that has global value. Together these strategies has built a strong brand for Pininfarina. Pininfarina have as well as Design Communication made acquisitions over the years and have received several brands to the portfolio. Pininfarina have solved this by only using on brand in the communication, which is their corporate brand name.
Problem formulation:
How could Design Communication do with their brands to faciliate growth and internationalisation – should they use one or several brands?
Method:
To investigate this I have made a qualitative study consisting of interviews with respondents in different positions at Design Communication. I have also made a personal interview with the design manager of Pininfarina, to see how they have solved the problem with several brands in their portfolio after aqcuisitions. I have used the inductive approach in the report, meaning that I began to collect empiry and thereafter searched for theories to explain the collected material. I chosed to interview Pininfarina as they are successful, have a strong brand with great recognition, good reputation and some people from the design industry says that Pininfarina is like the design industry’s formula one.
Empiry:
The respondents from Design Communication and Pininfarina describes their experiences of the acquisitions, the value of their brands and which the sources are that has brought value to the brands. Furthermore they discuss positive and negative issues with one or several brands in the portfolio and which alternative they would prefer in the future. They also explain that the communication is important to make everything work efficiently and with satisfaction. No matter what strategy the company might choose regarding one or several brands in the internal and external communication. Pininfarina also give advises to other design firms who would like to expand.
Theory:
The theory put focus on issues that took large space and was recurring in the interviews. Subjects such as corporate brand, different strategies to build a brand, company structure, acquisitions, one or several brands and communication are explained here.
Analysis:
In the analysis section I have sorted out how the empiry agrees with the theory and what issues that are strengthened by different theories.
Inference:
DC Group has a brand portfolio that the majority of the respondents find complicated to communicate internal and external. As the ambition appearantly is to go for growth, increase marketshares and to internationalise, it is important to choose the way that brings most value to the corporate brand. Today it is to use the corporate brand in combination with the subbrands to show their synergies, until Design Communication has got satisfying recognition. As soon as the brand capital of Design Communication is strong enough it would be the most efficient and natural thing to use it in all the communication, both internal and external. Design Communication promote their corporate brand internationally today and as that would get greatest recognition abroad it would be the natural thing to proceed in the same way even domestic, when it has got more recognition comparing to the subbrands Cliff and Propeller.
That is also the way that Pininfarina would choose to keeping it simple for both employees and clients and to get increased value to their corporate brand. A corporate brand creates participation among employees according to the interviews as well as theories. Pininfarina, Design Communication and the theorists agrees about that it is important to do supplementary acquisitions, ...
