Consumers in California may be concerned that they will lose the connection that they have with a brand if it merges with another company. The CEO of QVC has said that combining companies may actually lead to greater value for customers as well as add value for customers. L'Oreal says that it lets each brand that it owns be authentic and transparent.
When a merger occurs, brand managers need to reassure customers that their decision to become loyal to a brand was the right one. If this emotional connection is severed, it could bring about negative consequences for that brand. As a general rule, brands should work to develop and strengthen emotional connections between themselves and their customers. This means going beyond simply creating positive interactions between the two sides. Ideally, companies will strive to create personal relationships with customers to make them feel valued.
As companies grow, they need to find a balance between staying true to existing customers while finding new ones. By making emotional connections and creating active consumers, it may be easier for companies to find authentic brand ambassadors. This may be true whether a company has one brand or manages multiple ones as it grows in size.
When acquiring a new business, it may be beneficial to do due diligence on the company being acquired. This may make it easier to understand its value proposition to customers as well as how it fits into the company's overall culture. Business owners may benefit from consulting with legal counsel during the process of a merger or acquisition.