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Case Analysis

Doosan Infracore International: Portable


Power Brand Transformation (A)
Prepared by
Section B
Group-03
Moumita Majumdar

2014PGP208

Shatabdee Tripathy

2014PGP351

Kakde Sumedh Kamalakar

2014PGP151

Ankita Verma

2014PGP045

Lasya Chandrika E L

2014PGP180

Shikha Gandhi

2014PGP354

Identification of the problem


Korean conglomerate Doosan had acquired the Bobcat compact
equipment, the utility Equipment and Attachment Business from Ingersoll
Rand to form Doosan Intracore International (DII). The acquisition was a
means to become a global, full-line manufacturer and marketer of
construction equipment.
While the full ownership of Bobcat brand was transferred to DII, however
the 100 year old IR brand with strong brand equity was licensed to DII for
maximum of five years. Hence, the challenge is how to go for rebranding
of the IR brand which is now under Portable Power Division.

Analysis of the situation and the problem


Following are the four options to be considered:
1. Keep the IR brand as long as possible (possibly renegotiate brand
use agreement)
2. Begin co-branding strategy over 12-24 months, then transition to
Doosan
3. Retain the brand for the full five years, then transition to Doosan
4. Immediate transition to Doosan
Options
Keep the IR brand as
long as possible
(possibly renegotiate
brand use agreement)

Begin co-branding
strategy over 12-24
months, then
transition to Doosan

Advantages
Doosan can
leverage the
brand equity of IR
to generate more
revenue
It wont disturb
the distributors
network

Gives opportunity
to the end users
to adapt to the
transition
Due to small
incremental
transition, it is
easier to gauge
the market
response

Disadvantages
It is not in line
with the Doosans
philosophy to
transition
acquired brand as
quickly as
possible
It was highly
unlikely that IR
will renegotiate
the agreement
This will
contribute to
brand equity of IR
and does not
benefit Doosan
End users
association with IR
and its products
may continue
despite strong
branding efforts
from Doosan

Retain the brand for


the full five years,
then transition to
Doosan

Distributors will
be more willing to
partner this
change
Doosan can
benefit from IR
brand equity for
five years

Immediate transition
to Doosan

line with the


Doosans
philosophy to
transition
acquired brand as
quickly as
possible

It would be
difficult for
Doosan to
transition after
five years
It may erode
profits and
revenue because
of abrupt
transition after
five years
Distributors wont
be willing to
partner and may
switch to other
brands
Doosan may lose
out an opportunity
to benefit from IR
brand equity
It will disturb the
extensive dealer
network acquired
through IR

Recommendations
It is recommended that Doosan should go with the second option i.e.
Begin co-branding strategy over 12-24 months, then transition to Doosan.
No brand transition is required for Bobcat. As IR portable power equipment
has significant source of brand equity, across end-user and geographic
markets, it makes sense to leverage on its brand equity. Also, the
extensive dealer network which is a main influencer of users decision,
wont be disturbed. It would give ample time to dealers and users to adapt
to the transition.
Also the offerings by Doosan are standardised and the firm follows
decentralization approach. Hence, the firm should follow Brand Park
architecture. This approach has the benefit of leveraging the equity of the
family brand to the whole portfolio, while retaining the equity in the line
brands.
Standardized
Umbrell
a

Brand Park
Brand
Decentralizat
Silos
ion

Brand Stack
Centralizati
Brand
on
Tower
Famil

Customized

Family

Ref: B2B Brand Architecture - Steve Muylle, Niraj Dawar and Deva
Rangarajan