Abstract

"Retrospection as a Mediating Force for Future Planning"

Fayola Nicholas, Grenoble École de Management (fiefee@gmail.com)

The phenomenon of brand acquisitions has been important to U.S. firms over the past 50 years. This research explores brand acquisitions within Consumer Packaged Goods firms in the US, utilizing Comparative Historical Analysis (CHA) from six cases. The cases are divided (3) with a positive post acquisition experience and (3) with negative post acquisition experience. This study takes a multi-dimensional approach considering both a historical and emergent analysis perspective. The objectives of the study are
• To identify the drivers for the brand acquisition
• To examine the processes, activities and practices involved in the integration of the brand
• To determine the reasons/causes for the variance in performance between acquired brands.
These case studies consist of Coca-Cola and Vitamin Water, P&G and Natura, Kellogs and Kashi, Unilever and Ben & Jerry’s, Cyto Sport and Muscle Milk, Campbell’s Soup and Garden Fresh. The data collection process involved analysis of historical documents from shareholder announcements, media interviews, pre and post-acquisition business articles and financial reports.
These findings provide a base for future examination and adjustment of management practice as follows:
1. That the drivers for brand acquisitions within the large consumer packaged goods firms are the changing consumer trends towards healthier and natural products, the decline or limited growth within the core brands of the firm, and the desire for sustainable competitive advantage through innovation.
2. The processes and practices that create an impact on the brand’s growth post acquisition are the people, the integration plan created, and the entrepreneurial autonomy allowed to the managers of the brand.
3. The main causes for the variance in performance in the cases analysed were the level of investment allowing for innovation and the entrepreneurial autonomy provided to the acquired brands, to facilitate the aggressive growth desired.