Back in late May when the merger between Carphone Warehouse and Dixons Retail was announced many marketers weighed in on their thoughts about the new name, Dixons Carphone. At Brandworkz, we also put our thoughts in writing in an article for DesignWeek. Dixons Carphone seems to us and to others to be an odd choice of name. However I can see the logic to keeping part of the Carphone Warehouse and Dixon’s brand names in order to retain the substantial brand equity both companies already have.
On Thursday 7th of August the merger between the two companies was completed as they launched their new corporate identity and website. They also began trading on the London Stock Exchange. Once again, marketers have taken to social media to share more negative thoughts. But like it or not, the name Dixons Carphone is here to stay, so while it seems to be a strange choice it’s now time we look at how they can build their brand equity as a new company.
Here are our three tips on how Dixons Carphone can move forward with their brand.
Group CEO, Sebastian James, states, “We are one” and that is exactly what this new name and branding suggests. The merger was designed to exploit the internet of things and to help consumers navigate the connected world.
So, like when EE launched after the merger of Orange and T-Mobile, Dixons Carphone needs to spend the next several months educating us to their new brand image and what the merging of two well-known brands means for customers. They need to give us a reason to buy in.
Stick with it
While it’s tempting to go back to the drawing board after all the back lash it’s important that they stick with the branding and the name they have chosen. They don’t want to do what Gap did a few years ago by pulling a new logo only a week after its launch. This causes confusion and will be detrimental to the brand.
It’s time to dig in, be creative and build upon this new brand.
Align Internal Teams
Probably even more important than educating the outside world is ensuring all the employees within the merged companies are aligned to the new brand. While this seems like something we all learn in Branding 101 it’s something many of our clients use the Brandworkz platform to help with.
A key to a strong brand is brand ambassadors. Dixons Carphone has an army of 30,000 employees ready, but the company must ensure they are armed with easy access to the brand guidelines and brand stories so that they can communicate what it stands for. International property company JLL who have grown quickly through merging with and acquiring several smaller companies, ensure all their employees are aligned to the brand by creating an immersive online ‘brand world’ to educate them about what JLL stands for and what it means to be part of the company.
It will be intriguing to see what happens to the Dixons Carphone brand over the coming months and we will be watching with interest.