The Acer Group multi-brand strategy: the right response to an ever-changing market
Markets change, user needs evolve and the result is an increasingly segmented demand. The reason is simple: even the PC has transformed into a commodity and the dynamics behind the purchase of a PC are now all too similar to those behind the purchase of everyday consumer goods: technical specifications and manufacturing components of products now lag behind the affinity and trust the user has in a Brand which, given a choice between similar products, the customer feels more comfortable with.
But a brand is not enough. By its very nature a brand builds exclusive and reciprocal relationships with a specific segment of the market yet cannot expect to create a dialogue across the entire market. The ability to communicate with diverse social-demographic groups can only be achieved through multiple brands, managed within an integrated multi-brand framework.
For this reason, following the recent acquisitions, Acer has implemented a multi-brand strategy which exploits the positive awareness that companies of the group (Acer, Packard Bell, Gateway and eMachines) have developed over time with their own unique customer base, conserving therefore the individual identity and personality of each brand.
The objectives are clear: avoid brand overlapping and communicate coherently both internally and externally (to employees, the channel, end users and investors) while maintaining the identities of the companies unaltered and increasing the overall user base.
The Acer group recently terminated a project which, by means of a thorough market analysis aimed at analyzing the performance parameters of its various brands, allowed it to identify diverse user segments and understand the motivations behind sales, defining as a result different Brand Value Propositions.
The analysis involved users from various European countries and also the United States and was divided into separate phases:
1. Segmentation of users into groups with similar purchasing attitudes for “technological” products.
2. Definition of the Brand Value Propositions and the positioning of the Brands in geographical markets.
3. Redefine the product development process in line with the specific reference segment with a market-oriented approach.
4. Align the sales and marketing communication processes with the specific segments of each Brand.
The analysis not only provided an overview of the current positioning of the various Brands, but also identified specific user segments and pinpointed the specific needs and choice drivers with regards the two principal directions: the influence of the Brand in the purchasing process on the one hand and the influence of technology on the other.
The Acer Brand, traditionally perceived as highly innovative, found a natural positioning within those users highly attracted to latest-generation technologies and Time to Market of products, qualities present in a Brand that is able to “Simplify my life through technology” that is always easy to control.
The Gateway and Packard Bell brands, always synonymous with Style and Trends, were more closely aligned with user segments for whom the PC is a necessary instrument in their daily and social lives, in order to communicate and enjoy multimedia experiences, yet who perceive technology almost as a barrier and are therefore attracted to an established and solid Brand known for its simple and easy-to-use products.
Finally, eMachines is targeted towards users with a predominantly pragmatic approach towards technology and who expect the PC to be efficient and convenient.
“These recent acquisitions are strategic both in terms of business and market positioning,” comments Gianfranco Lanci, President and CEO of Acer Inc. “Acer, Gateway and Packard Bell are three distinct identities of a single group whose objective is to expand the variety of its product range. The three companies will integrate their own unique experience and abilities to offer a broad range of products that allow customers to find the right solutions for their uniquely personal needs.”
