Merger Mechanism Improvement
Posted: Tue Apr 15, 2014 2:31 am
Merger Mechanism Improvement in the upcoming CapLab post-release V2.5.00:
An improvement has been made to allow brands of the target company of a merger to survive under the conditions described below.
If both the acquiring company (parent) and the target company (child) are using unique brand strategy, and both of the following conditions are true, then the child’s brand ratings will be retained.
Condition #1
The child's brand rating > the parent's brand rating (brand rating is the sum of brand awareness and brand loyalty)
Condition #2
The child's brand loyalty >=0
OR
The child's brand loyalty is at least 10 points greater than the parent's brand loyalty.
An improvement has been made to allow brands of the target company of a merger to survive under the conditions described below.
If both the acquiring company (parent) and the target company (child) are using unique brand strategy, and both of the following conditions are true, then the child’s brand ratings will be retained.
Condition #1
The child's brand rating > the parent's brand rating (brand rating is the sum of brand awareness and brand loyalty)
Condition #2
The child's brand loyalty >=0
OR
The child's brand loyalty is at least 10 points greater than the parent's brand loyalty.