Brand Merger: Combining Two Visual Identities

Corporate mergers and acquisitions reshape industries, combining not just business operations but entire company identities. Behind each merger lies a critical decision: what becomes of the brands involved? While executives typically focus on financial and operational details, the handling of brand identity often receives far less attention.

Well, while everyone’s busy crunching numbers and signing papers, there’s something way more exciting going on - two brands trying to figure out how to live together without losing what makes them special. And let’s be real - 90% of mergers don’t live up to the hype, because nailing that brand blend is hard work. Maintaining the identity of the acquired brand can be crucial for the success of the merger, as it helps preserve brand equity and market differentiation.

In this article, we'll explore how successful companies navigate the complex world of brand mergers, examining different strategic approaches and learning from both triumphs and missteps in some of the most notable corporate unions of recent times.

Understanding merger branding

Merger branding isn’t just about smooshing two logos together and calling it a day. Think of it as a matchmaking service - you’ve got two brands with their own personalities, followings, and ways of doing things. Getting them to play nice means looking at everything: how they look, how they behave, what their customers think of them, and where they sit in the market.

The goal is to create something that keeps the best bits of both brands without losing what made people fall in love with the brand in the first place. Organisations can blend or retain elements of their brand identities during transitions, strategically planning to mitigate confusion and capitalise on the strengths of both brands.

Assessing current brand states

Before diving into the creative whirlwind of merging brands, it’s crucial to take a step back and assess where each brand currently stands. Think of it as a health check-up for your brands. This involves a thorough evaluation of their strengths, weaknesses, opportunities, and threats – yes, a good old SWOT analysis.

Key drivers behind brand mergers

When two companies decide to join forces, it's rarely a simple handshake deal. Multiple strategic factors typically drive these complex corporate marriages, each playing a crucial role in shaping how the brands will blend together. Factors that push companies include the following:

1. Market expansion

   Companies often merge to capture larger market territories and reach previously untapped customer segments. Take Disney's acquisition of Marvel Entertainment in 2009 - Disney gained access to a vast universe of superhero characters and their devoted fan base, while Marvel received the distribution power and financial backing of a global entertainment giant. This merger exemplified how combining forces can create new opportunities in markets that might have been difficult to penetrate independently.

   
   

2. Technological integration

   Technology acquisitions have become increasingly common with today's digital demands. Consider Facebook's acquisition of Instagram in 2012. While Instagram had built an impressive photo-sharing platform, Facebook saw the potential to integrate this technology with its existing social network, creating a more comprehensive social media ecosystem. Sometimes, developing similar technology internally would take years and cost significantly more than acquiring a company that has already perfected it.

   
   

3. Talent acquisition

   In knowledge-intensive industries, acquiring skilled professionals can be as valuable as acquiring physical assets. Google's acquisition of DeepMind in 2014 wasn't just about getting artificial intelligence technology - it was about bringing aboard some of the world's leading AI researchers and developers. This type of strategic move, often called an "acqui-hire," can help companies quickly build expertise in crucial areas without the lengthy process of recruiting and training individual talents.

   
   

4. Diversification

   Smart companies know the importance of not being overly dependent on a single market or product line. Microsoft's acquisition of LinkedIn demonstrates this strategy perfectly. While Microsoft was strong in software and cloud services, LinkedIn gave them a strong presence in the professional networking space. This diversification helped protect Microsoft against potential downturns in their core markets while opening up new revenue streams.

   
   

5. Cost efficiency

   When companies merge, they often find numerous opportunities to optimise their operations. Look at the merger between Heinz and Kraft in 2015. By combining their manufacturing facilities, distribution networks, and administrative functions, they achieved substantial cost savings. This consolidation allowed them to eliminate redundant positions, streamline supply chains, and increase bargaining power with suppliers.

(Source: Money)

Five strategic approaches to combining brand identity

While understanding the drivers behind brand mergers sets the stage, the real challenge lies in deciding how to blend these brands together. After all, knowing why you're merging is only half the battle - the how is equally crucial for success.

Companies that have carefully considered their merger drivers often find that these motivations naturally point toward certain branding approaches. For instance, a merger driven primarily by market expansion might suggest a different branding strategy than one focused on cost efficiency. Let's explore the five strategic approaches that companies typically consider when facing this complex decision:

1. Complete preservation strategy

This conservative approach maintains both brands' existing identities without changes, best suited for mature markets where brands serve distinct customer segments. Here's what happens when brands decide to keep doing their own thing:

• Each brand retains its established market value and customer loyalty

• Customers continue their relationship with their preferred brand without disruption

• Marketing teams need dedicated resources and separate strategies

• Companies might miss opportunities to combine operations efficiently

For example, when Salesforce acquired Slack, they kept Slack's brand completely independent - preserving its beloved quirky personality and user experience. This strategy worked because both brands served different purposes while complementing each other's offerings - Salesforce's enterprise customers gained great collaboration tools, while Slack accessed broader enterprise relationships.

(Source: Sales Force)

2. Fusion approach

When two brands decide to merge their identities, they're not just slapping logos together - they're crafting a new story that resonates with both customer bases. While some companies play it safe with subtle combinations, others go bold with complete reinventions. Here are the typical fusion types that work:

Direct fusion

Companies combine their names into a single new entity while maintaining their original brand elements, as seen with ExxonMobil.

(Source: Wikibooks, Oil Store, Amazon Business)

Refreshed fusion

The merged names receive a complete visual overhaul to signal a new chapter, like ConocoPhillips did with their unified identity.

(Source: Wikipedia, 1000logos, Business Wire)

Hybrid fusion

The new brand thoughtfully incorporates selected visual elements and values from both original brands.

(Source: Pentagram, 1000logos, 1000logos)

Absorption fusion

The stronger brand assumes the dominant position in the combined identity, as seen when Chase Manhattan merged with J.P. Morgan to form JPMorgan Chase, preserving the more prestigious Morgan brand positioning.

(Source: Logo wine, Logo eps, PACDC)

3. Stronger horse strategy

When one brand clearly outperforms the other in market strength, reputation, or strategic value, companies can choose forward absorption, reverse absorption (making the smaller brand take centre stage), or phased transition. This approach capitalizes on the stronger brand's recognition while carefully managing the transition to minimize customer confusion.

Explaining the three ways to play it:

• Forward absorption: The bigger brand gobbles up the smaller one. For example, the 2000 merger between Pfizer (the larger pharmaceutical company with greater market reach) and Warner-Lambert resulted in Pfizer's name and brand identity becoming dominant.

• Reverse absorption: Plot twist - the smaller brand’s name takes centre stage. For example, when the smaller chemical company Dow merged with the larger DuPont in 2017, they ultimately chose to operate under the Dow name after subsequent restructuring. Despite DuPont's larger size and longer history, market research showed the Dow brand had stronger recognition and positive associations in key markets.

• Phased transition: Involves slowly shift to the winning brand, so you don’t spook your customers. For example, the T-Mobile and Sprint merger in 2020 exemplified a careful phased approach, with Sprint stores initially adopting "Sprint now part of T-Mobile" signage before complete rebranding. The companies maintained separate customer service systems and billing platforms during transition, while gradually migrating Sprint customers to T-Mobile plans and integrating network infrastructure under the T-Mobile brand.

(Source: Telecoms)

4. Fresh start approach

Sometimes neither existing brand serves the new entity's strategic direction, requiring a complete rebranding to signal a fundamental transformation. This clean-slate approach works when both brands need repositioning, the business is heading in a new direction, or there's negative baggage to overcome.

You might want to start fresh when:

• Neither brand’s working quite right anymore (both need repositioning)

• You’re heading in a totally new direction

• You need to shake off old baggage

In such cases, a new brand strategy is crucial to ensure the success of this approach. For example, Bell Atlantic and GTE created Verizon as an entirely new brand positioned for the mobile revolution.

(Source: Logo Timeline, CDN Logo, UNESCO)

5. Parent brand strategy

Picture a family tree of brands. The parent brand sits at the top while other brands do their own thing underneath. Like when Google created Alphabet - Google kept being Google, but now had a fancy parent watching over it and its siblings.

When implementing a parent brand strategy, companies need to carefully consider their brand architecture. This involves determining how different brands will relate to each other and establishing clear hierarchies.

Why go for a parent brand?

• You get to keep all your brands’ street cred

• Buying more companies at a later stage becomes easier

• You'll have room to grow the family

• Holding on to your customers become effortless as they choose to stick with the brands they know

• Each brand can be positioned to target different markets, therefore diversifying your investment opportunities

The branding process is crucial in establishing a brand hierarchy, ensuring that the relationships between various products and the overarching brand are clearly defined.

But it’s not all sunshine and rainbows. You need deep pockets to keep all these brands in line, and you’ve got to make sure everyone’s singing from the same songsheet. Plus, if you don’t explain the family tree clearly, you might confuse your customers.

(Source: Leverage Shares EU)

Launching the new brand

Internal communication strategy

Successful brand mergers begin with internal alignment before external execution. Your employees aren't just implementers - they're brand ambassadors whose understanding and buy-in determine success within the market.

Building your internal infrastructure

The foundation of any successful brand merger lies in establishing a robust internal infrastructure. Before your new brand identity hits the market, you'll need systems in place to ensure your team understands, embraces, and effectively represents the evolved brand.

Consider these essential components when building your internal framework:

• Dedicated transition team: Grab cross-functional experts who get both legacy cultures and can navigate tricky organisational dynamics. Include folks from marketing, operations, HR, and customer-facing teams for the full picture.

• Comprehensive brand guidelines: Create standards beyond just visuals - think brand voice, positioning, and decision frameworks. They should explain the "why" behind changes, not just the "what."

• Immersive training program: Go beyond theory with hands-on learning. Try role-playing customer chats, scenario planning, and simulations to prep your team for real challenges.

• Transparent implementation timeline: Roll out changes in stages with clear milestones and who's responsible for what. This helps everyone feel secure during the shift and prevents burnout.

• Continuous engagement mechanisms: Set up feedback loops that turn your team from passive receivers into active co-creators of your new brand identity.

External communication framework

Your external brand launch is where preparation meets reality. If it's messy, even the best merger plans can fall flat. When launching your merged brand, you need to tell a story that makes sense to everyone.

Here’s how to set up for success:

1. Strategic narrative development

   Create a merger story that covers:

   • Value creation narrative: Explain exactly how joining forces delivers benefits neither brand could achieve alone

   • Cultural integration story: Show how your combined values and strengths make something better

   • Future vision: Get stakeholders excited about possibilities beyond the immediate merger perks

     
     

2. Omnichannel consistency

   Make sure your brand looks and feels the same everywhere:

   • Digital presence: Sync your website changes, social media rebrand, and emails so everything feels connected

   • Physical manifestations: Match your environmental branding, packaging, and service experience

   • Human interactions: Train your customer-facing teams to deliver the same message regardless of how customers reach you

     
     

3. Real-time adaptation strategy

   Set up ways to monitor reactions and respond quickly:

   • Sentiment analysis: Keep tabs on how people perceive your brand across platforms

   • Rapid response protocols: Create clear paths for addressing misunderstandings

   • Narrative refinement: Evolve your messaging based on feedback without losing sight of your core goals

By treating your brand launch as a strategic orchestra rather than just another announcement, you can turn potential headaches into opportunities to strengthen relationships.

The launch of 'Stellantis'

When Fiat Chrysler Automobiles (FCA) and PSA Group merged in 2021 to create Stellantis, they faced the challenge of introducing a completely new corporate brand while preserving their portfolio of iconic automotive brands.

• Internal launch

  When Stellantis formed in January 2021 (FCA + PSA Group merger), they faced the challenge of uniting hundreds of thousands of employees across multiple countries without losing what made each brand special. CEO Carlos Tavares didn't want a corporate takeover vibe - instead, he championed building a unified identity while honoring each brand's heritage. They set up communication channels to help everyone understand how Stellantis would work as the parent company while letting their automotive brands keep their distinct personalities and market positions.

  
  

• External launch

  Stellantis went public on January 19, 2021 with a name that actually means something - "stello" in Latin means "to brighten with stars" (not just another meaningless corporate mashup). Their launch included a fresh logo, new corporate website, and coordinated announcements across global stock exchanges. They positioned themselves as the world's fourth-largest automaker with a focus on speeding up innovation in electric vehicles and sustainable mobility. One of their best involved keeping all the brands people actually love intact, while introducing Stellantis as the behind-the-scenes parent.

(Source: Aroc UK)

Three remarkable brand merger success stories

When executed strategically and thoughtfully, corporate mergers can create powerhouses that are greater than the sum of their parts. Here are some of the most remarkable success stories that demonstrate the potential of well-planned brand mergers:

1. Disney-Pixar

On January 24, 2006, Disney acquired Pixar for $7.4 billion in an all-stock deal. This merger is considered one of the most successful in recent years as it preserved and strengthened a crucial creative partnership, bringing Pixar's technology and innovative animation expertise fully under the Disney umbrella while maintaining Pixar's creative culture.

(Source: Logotypes, Disney)

2. Price Waterhouse + Coopers & Lybrand

Price Waterhouse merged with Coopers & Lybrand on July 1, 1998, forming PricewaterhouseCoopers (PwC), uniting two London-based accounting firms with roots dating back to the mid-1800s.

(Source: CDN Logo, Bloomberg, Wikimedia, Wikipedia)

3. Travelers + Citicorp

Travelers Group (a financial services company) merged with Citicorp (a commercial bank) in 1998 to create Citigroup Inc., becoming the world's largest bank at the time and later nicknamed the "titanic" of Wall Street for its role in setting the stage for the financial crisis ten years later.

(Source: 1000logos, CDNLogo, a.list)

Final thoughts

The art of combining visual identities during brand mergers requires a delicate balance between honoring legacy design elements and crafting fresh expressions of unified identity. Whether through careful preservation of distinct brand aesthetics, thoughtful fusion of visual elements, or bold creation of entirely new design languages, successful brand mergers demonstrate that visual identity plays a crucial role in communicating change and continuity to stakeholders.

Struggling with logo combinations? Unsure how to merge color palettes or typography systems? Our founders James and Will love tackling thorny visual identity challenges. Whether you need help with visual hierarchy, brand architecture, or crafting a completely fresh design system, they'll help you find the right aesthetic approach. Book a call to discuss the creation of your brand identity post-merger.