Marketing challenges after a merger in Portuguese Telecommunications Market

Abstract

In the last years, rebranding and repositioning strategies have been established as a common alternative after mergers and acquisitions. From Harley Davidson motorcycle icon brand to the famous restaurant chain McDonald’s, many companies passed through rebranding or repositioning processes1, some because they wanted to continuously satisfy their customers needs, which are becoming more and more demanding each day, others just because they needed a dramatic change not to bankrupt. The purpose of this case study is to analyze both strategic alternatives after a merger in the Portuguese telecommunications market, such as keep an existing brand or create a new one, by looking at their pros and cons and their impact in the most important areas for a company. This case also studies the pros and cons of each branding model, which is relevant when the core products of an organization are changed to make sure that the company is efficiently structured. Finally, this case study tries to sensitize students about the tough decision making processes that marketers face in real life situations. The case concerns a merger between two strong companies in the Portuguese telecommunications company that faced an important dilemma: whether to keep one of the existing brands or to create a fresh new identity. The protagonist is Andreia Ferreira, a young female manager that finds herself in the very difficult position of deciding the best strategy along with the rest of the brand and communication team. Last, the readers can develop their critical and analytical skills in marketing and branding issues, as well as deeper their knowledge about corporations’ decision-making process.