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Branding through merger and transition - CASE STUDY

By
Real Estate Agent with Eastern WA Real Estate - Pullman (509-595-3147) CBT Pullman

Associated Brokers of Pullman, WA was the leading real estate agency for several years.  Founded in 1980 by Darl and Star Roberts, AB grew to the leading real estate agency in the Palouse.  Darl's network, commitment and passion for improving the quality of life in Whitman County led to amazing results.  AB was an independent agency until last May when we realized the benefits of an international franchise became critical to take the agency to another level through broader exposure.  AB's brand was excellence, commitment and integrity which was evident by its top agents in the Pullman market. 

I joined AB in the fall of 2008.  In May 2009, AB joined the Coldwell Banker family through a partnership with Spokane's leading real estate agency Tomlinson.  AB became Coldwell Banker Tomlinson.  Same agents, same experience and same leadership from our broker, Darl Roberts. 

The challenge and the case study - BRANDING THROUGH MERGER AND TRANSITION

The hurdles:

1)  Another Coldwell Banker franchise already exists in our small town

2)  7 miles to the East lies Moscow, ID which also has a Coldwell Banker Tomlinson office (same market different state) - CONFUSION

3)  Email address changes, web address changes, new systems, new infrastructure, new IT, where are the leads going...

After spending 20ish years in the car business and having acquired other franchises, I have learned that going through a transitional change with a brand can be a successful endeavor, however it takes careful planning, educating, explanation.  Right now we are approaching one year which has been bumpy and a little chaotic.  With so much change it has been difficult to step back and plan, educate and explain to our community that we are the same agency with a different name but considerable more tools to help market. 

Branding today is used to create emotional attachment to products and companies. Branding efforts create a feeling of involvement, a sense of higher quality, and an aura of intangible qualities that surround the brand name, mark, or symbol.  Easier said than done - especially through a merger or new partnership.

The definition of brand: A brand is an identifiable entity that makes specific promises of value - according to David Dolaks "Building A Strong Brand: Brands and Branding Basics".

The challenge with taking a brand like Associated Brokers, it is easy to assume because as agents "everyone will get it."  HELP - SOS - "It isn't working like we thought it would - how do we resell or rebrand ourselves?"  Have you been through a transition.  There is no A, B, C book on doing this. 

Brand Equity is the sum total of all the different values people attach to the brand, or the holistic value of the brand to its owner as a corporate asset.  30 years of a brand equity like AB - how do we minimize our loss in the name change (equity) and capitalize on the benefits with our association with Coldwell Banker?

From my perspective (remember I'm living through the transition now), I feel we must keep the following points in mind:

  • We must do a better job keeping our customers informed about how the merger and how it affects them
  • Stay positive by focusing on additional resources and offerings.
  • Keep our agents better informed and educated.
  • Establish a campaign that puts our agent faces along with our new name Coldwell Banker Tomlinson in front of the public (i.e. billboard, Chamber events, community functions, sponsoring charitable events...)
  • E-newsletter campaign that incorporates our new resources

The key here is to defend what's still valuable about our old brand without making it personal while we tout our new brand. 

If you have any advice or if you have experience a similar transition I would welcome any thoughts, suggestions of ideas.

 

Posted by

Anonymous
Rod Schwartz

Chud,

The AB brand is, for all intents and purposes, dead. (I'm not talking about the people or the office, of course, but the brand itself.  When the red-and-white AB logo was replaced with the blue CB logo, and the person answering your phone stopped saying AB and started saying CB-T, the AB brand disintegrated.

Trying to retain the advantages of both by showing both logos on a billboard is akin to trying to drive two cars at the same time.  A stunt driver might be able to pull this off for awhile, but it's not something that can be sustained.

Calling the new entity CB-AB might have slowed the process some, as it would have preserved the original name, though in a new hyphenated relationship (kind of like the distaff half of a hyphenated marriage, but I digress...).

When I moved to the Palouse in 1979, I worked with Beasley Realty.  (If I'm not mistaken, that's where Darl got his start in the real estate biz.)  Some years later, they flirted with an affiliation to a national franchise -- CB, in fact -- but for whatever reason(s) decided to return to their local, independent roots under a new banner (Beasley Realty) that, I believe, managed to recapture the essence of the original brand, seeing as how the agency remained largely a family operation.

From my perspective as, shall we say, an informed outsider, you're pretty much at Square One in terms of repositioning the agency.  It's not quite the same as being given a blank sheet, but almost.

And at this crucial juncture, Chud, what you say is vastly more important than how or where you say it.

Jack Trout and Al Ries, former business partners and co-authors of the seminal "Positioning: the Battle for the Mind" and many others, including an important follow-up, "The New Positioning," would argue that what you choose to name a business, product, or service is crucial.  As that decision has already been made for you, for better or for worse (to reach back once more to the marriage analogy), the task now is to decide what value(s), characteristic(s), or ideal(s) you purpose to associate with the new brand, for the purpose of implanting them deeply into the minds of the people who constitute your prospect base (both as prospective customers and as influencers/recommenders).  Absent a personal relationship -- and we all know that a recommendation from a family member, friend, or colleague is the coin of the realm -- you're going to rely on advertising and marketing to carry the ball.

Again, WHAT you say is far more important than how or where you say it.  Uncover the story that is uniquely yours.  Frame it with precision, articulate it with passion.  Tell it, relentlessly, to as many people as you can afford to reach, but do not make the mistake of trying to reach more people than you can OWN.

The words you choose will make all the difference. 

Want proof?

"We'll leave the light on for you."

"When you care enough to send the very best."

"Don't leave home without it."

We should have coffee some time.

-Rod

 

Mar 19, 2010 07:46 AM
#1
Chud Wendle
Eastern WA Real Estate - Pullman (509-595-3147) CBT Pullman - Pullman, WA

Hey Rod,

THANK YOU for the quality advice!  Yes, I agree the brand AB as we know it is dead.  The difficulty is getting the mindset around that! 

In my past we acquired a Suzuki and Infiniti franchise that had different perceptions and trying to bring both into the Wendle fold.  I personally made a lot of assumpitions that the public would just accept the transition.  I felt that they would just come to us because we were Wendle.  The big lesson learned was 1) assumptions are assumptions, 2) the public is habitual, and 3) the public is transient (they move in and out - we have to market on a local basis on an educational basis rather than assumptive basis).

Your insight is invaluable to the Palouse.  I do look forward to the challenge.  Tomlinson has a great name in Spokane but does Pullman understand what Tomlinson stands for?  I don't think so.

Getting myself and my fellow agents to work together to rebranding is critical.

Coffee? Yes!!! Please name the time and place and I will be there!

Chud

Mar 19, 2010 02:52 PM