Acquisition and Integration Resources
Nordson expects to continue growing in part by acquiring companies. Generally, when an acquisition is made, Nordson acquires the company's brand equity, logo and graphic identity along with the physical assets.
In general, a brand acquired by Nordson should be integrated into the company in one of the following three ways:
| ONE
The acquired brand transitions to the Nordson master brand, and the acquired company name is phased out. Ex) Slautterback becomes Nordson |
TWO
The acquired brand transitions to an existing approved Nordson sub-brand name, and the acquired company name is phased out. Ex) TAH Inc becomes part of Nordson EFD |
THREE
The acquired brand becomes a new approved Nordson sub-brand name. Ex) Dage Precision Industries becomes Nordson DAGE |
All acquired companies should begin working toward one of these scenarios with a full transition to be completed within two years.
NOTE: In certain special cases, it may be impossible or impractical to associate an acquired brand with the Nordson brand due to competitive issues, pricing strategies, channel conflicts or other circumstances. Such cases will be reviewed by Nordson executive management.
Brand Audit and Integration Procedures
Nordson's Brand Audit and Integration Procedure for acquired brands consists of three major components:
| 1. Performing Brand Equity Research | 2. Completing the Nordson Brand Decision Tree | 3. Developing a Brand Integration Plan |
1. Performing Brand Equity Research
At times, decisions about brands are based on opinion and emotions rather than facts. Conducting brand equity research provides an objective measure against which to make decisions on the best way to integrate an acquired brand. Brand equity research measures the strength of an acquired brand via research across four dimensions: brand awareness; brand associations; brand quality; and brand loyalty.
Ideally, such research should be performed as part of the due diligence process when evaluating the purchase of a company. If this timing is not feasible, the audit should be performed shortly after completion of the acquisition. Nordson Corporate Communications can assist in conducting the audit.
A typical brand equity research project consists of the following steps:
- Review any existing brand research
- Select a research vendor to perform additional research
- Develop a survey instrument that compares the Nordson brand or Nordson approved sub-brand, the acquired brand, and competitive brands across four dimensions: brand awareness; brand associations; brand quality; and brand loyalty. The survey should be a blind survey; that is, recipients should not know that the survey is coming from Nordson or the acquired brand.
- Conduct the survey.
- Analyze data and develop initial conclusions.
Upon completion of the brand equity research, Nordson's Brand Decision Tree tool should be used to provide further input toward a brand integration decision.
2. Completing the Nordson Brand Decision Tree
The Nordson Brand Decision Tree yields a potential brand integration solution based on the answers to a series of yes or no questions. It is another tool to help arrive at an objective answer regarding the best way to integrate an acquired brand.
3. Developing a Proposed Brand Integration Plan
After completing brand equity research and reviewing the brand decision tree, the Proposed Brand Integration Plan form should be completed.
This form specifies a business' proposed brand integration solution (1. transition to the Nordson brand, 2. transition to an existing Nordson sub-brand, 3. transition to a new Nordson sub-brand, or, rarely, 4. remain a stand alone brand) and provides an accompanying detailed integration plan. All brand integration programs must have an assigned Brand Integration Manager.
The proposed Brand Integration Plan will be reviewed and approved by the Chief Executive Officer and Corporate Communications. After this approval is received by a business group, the acquired brand should be completely integrated into Nordson within two years.