Author: alain.gonda

Growing a brand is defining a realistic and feasible plan that allow to increase the brand equity . Increase of brand Equity is linked to business growth or business acceleration based on assigned goals.

While browsing a business consultancy company web site called unloq , i found an interresting statement saying “…Greater market share can help you to avoid excessive local competition, which can lead to tighter profit margins. The acquisition of an established competitor is often a quicker route to growing your market share than attracting new customers to your existing brand “

Why Grow Your Business Through Acquisition?

Growing a business through acquisition if combined with New Brand Launch could be a wining strategy

According to me , the above is completely applicable to the case of ENGEN in the DRC. Engen is an African-based energy group focused on the marketing of petroleum, lubricants and functional fluids, chemicals and retail convenience services, through an extensive network of service stations across Southern Africa and the Indian Ocean Islands. Engen also exports its products to various other territories. With a history stretching back to 1881, and trading as Engen since 1993, they have grown there business from our roots in South Africa by leveraging the expertise of our employees to include manufacturing plants, distribution networks and retail service stations.

https://www.engen.co.za/about

Engen has been in the DRC since 2007. Leading the aviation fuel market with 50% of market share, Engen is present in 10 major airports in DR Congo, but also leading the gas station network in the country and mainly in Kinshasa, the capital that has close to 17 Million inhabitant. The estimated number of gas station within the country is around 204 actives ( 41 inactive or under construction as of end of 2024), with the following repartition :

In a market where the price is fixed by the government, the sold volume plays a significant role in the revenue market share.
The identified players as independent is actually an important number of operators that can own from 1 to 3 gas stations ( 6 for the biggest ) spreaded in the city , with their own brands , and that have a non-negligible impact in the market .
They are not forced to follow the same standard than the majors , the quality of their product might have issues sometime , but for sure they are closed to the consumer , mostly in area that are not always addressed by the majors operators .
We believe that this could be a risk for the majors, but mostly an opportunity especially for Engen

The opportunity would be for ENGEN to identified the best independent gas stations , based on some criteria like: (Location , proximity to a competitor, addressable market , possibility of market growth like city expansion or new business, Etc….
To Acquire the highest number matching the criteria ( based also on a due diligence process ) , and Launch this new network with an new offer under a new Brand

Since the opportunity would be to grow the ENGEN business but without touching the existing brand , and also by trying to bring some flexibility on the business that will allow to address differently the market and push for volume , Launching a new brand would be the recommanded approach .
The new offer will not be marketized it under the ENGEN Brand , but could match the current portfolio;
It will reinforce Engen overall business performance by the increase of sales and volume and the capability to sustain the business and influence the market ;

There is no confusion at all that the new brand will have on the organization , and it will bring more rationality to the market place since the multiple small brands will disappear and leave the place to the new 5th strong player .

The opportunity of Acquiring the independent competitors and launching a new brand ( endorsed by Engen ) , can lead to a new approach for the market a lot of co- branding program that Engen can’t conduct now or that might have limited success , protect form the majors competitors , and push for volume.

Always Moving

One of the most famous Engen Tagline is “Always Moving”, . Even thought this Growth strategy , based on acquision and new brand launch , would required a significant investment , it might pay back on its own , since it is based on existing business.

50% of successful acquisition to be set as no negociable target .
The expected few future impact on Engen business to be the following :

1. Engen current market share protection
2. Engen revenue increase
3. Engen economy of scale increase
4. Better control and influence of the market
5. Customer loyalty through the new brand

It’s quite fascinating to see the impact of the brand in an industry that is fa from the FMCG or retail, but still…

Born from a European project to take control of the destiny of its aerospace industry, it was in the 1970s that the first Airbus (A300) took flight, and nothing could have predicted the enormous success that this company, supported by EADS established as Airbus’s parent company in 2000, would experience

I’ll start at the end. Indeed, the first element of Brand Portfolio’s management effectiveness is quite atypical. On January 2, 2014, EADS changed its name to Airbus Group, and Airbus Defence and Space was created from former divisions. Airbus Group then merged with Airbus SAS in 2017 to become Airbus.
Indeed, it is impressive to see that the success, popularity, and reputation of Airbus, the subsidiary with Airbus aircraft, ultimately led EADS ( the endorser) – European Aeronautic Defence and Space Company to change its name. This rebranding even led to the adoption of the Airbus brand descriptor to name the other subsidiaries, the most important of which are:

• Airbus Commercial Aircraft
• Airbus Defence and Space
• Airbus Helicopters
  Others: Airbus Corporate Jets, Airbus Atlantic

The branch of the portfolio that constitutes two-thirds of the revenues has therefore influenced the rest of the portfolio and even absorbed them. This is not an isolated example, when we see how the rare case where the Airbus product portfolio was expanded by the acquisition On October 16, 2017 of a majority of the shares of the Canadian Bombardier C-Series, mainly carried by the CS100 and CS300 models, which upon their acquisition were integrated into the Airbus product portfolio and renamed: A220-100 and A220-300.
This management therefore involves constant monitoring of the corporate image and strengthening of the brand, but the same effort is made in the product area with just as much consistency.
Driven by its technological performance and commercial successes, but also by the decline experienced by Boeing, Airbus’s reputation is excellent, reassuring not only users, but also passengers.
 Who produces the best aircraft?
 Who produces the most reliable aircraft?
 Who produces the most modern aircraft?
 Who produces the most environmentally friendly aircraft?
 Which aircraft have the best-equipped and most pleasant cabins?
The list goes on, given that Airbus has the wind in its sails and excellent goodwill, reflecting European trends. Increasingly, it seems that passengers are choosing their flight and itinerary based on the equipment available to them.

Airbus is a symbol of innovation and reliability, with a constant concern to seek the best for all users. This breaks with capitalist reality and it is an image that must be preserved by the company, also considering the upcoming challenges, individual aircraft for urban travel and other things.This strength that becomes a competitive advantage comes from their investment in RnD , and also this habit to communicate the progress to the entire world. This is what needs to be pushed in a continuous way.

IMC in the Air

While speaking of Integrated Marketing Communication, the idea that emerges the most is: Convergence, Coherence and Consistency. I think this reflects this approach purpose or goal.
This is largely facilitated by not only the development of digital technology, but above all of the tools and their performance. Seems the tools are the same and can be used by everybody , or each competitor , the way they are structured , combined and adjust make a huge different in the way the Brand purpose and pillars are addressed ,and how those the chosen platforme matches with the target audience.

Airfrance is probably one of the most prestigious brands in aviation. Reminiscent of the idea of the French Touche, it largely conveys the codes of French luxury, which makes it unique. You can have several airlines, which cover the same destinations at the same of better price , but there is only one Airfrance, that can deliver the Airfrance experience.

At Airfrance, the journey starts from the first contact, whether in an agency or at the counter, but most often on its website.
Indeed, the airfrance website is a place of convergence of several services ranging from general information, to sales and especially discovery. Yes, I say the discovery, of the airfrance universe with its particularities, its uniqueness, universe which is made up of its welcome, its equipment, its crew, its on-board service and its destinations.

The elements of the site are relayed in a general or particular way on other platforms, in particular facebook or instagram and widely popularized by email campaigns. All with the same consistency or above all convergence. A piece of information or an element may be highlighted on one platform more than another because of the target or the particularity of the platform, and one platform may promote another. Generally, web platforms will encourage the usage of the applications.

All these elements, which are coupled with the customer experience of airfrance, both on board and at the physical location outside of travel, strengthen the attachment of customers and the elements of perception that give them the impression of sharing the prestige of the company or of saying that it is a privilege to travel with airfrance.
This little extra gives the impression that the customer feels valued by his airfrance experience, and that it meets his deep aspirations, unconfessed or unexpressed.

Vodacom in the DRC, which I had as a competitor in the early 2000’s, is what I consider one of the best case of good planning and management of its brand contact points and internal marketing.

Considering the plannification part

The inventory of its contact points was very well conducted, not only on its direct points of sales but especially through its distribution network which was extremely large, and maintained in a remarkable & consistent way .
Beyond a very aggressive ATL approach, noticeably through TV and Radio and Outdoor (Billboards) as brand contact point , Vodacom was very strong through the effectiveness of the other contact points made up of the shops, distributor shops, retail shops, partner shops, but also through its brochures, posters and the strongest through its brand ambassadors who scoured the streets of different towns, districts and villages of the DRC, making subscriber acquisition, insuring first aid customer care , and promoting Vodacom products and services.
This defined patterns was reinforced by a strong call center with a highly advanced IVR system capitalizing on the fact that people in this part of the world love voice contact.
The most important , there was for sure established and a individual plan well defined for each brand contact category , ensuring consistency, synergie and convergeance in the management of all those points. All Contact points were aligned as per the Vodacom purpose and strategy

Vodacom internal marketing
The above consistency a sustained success was made possible only because the job started internally. This is where as competitor, i couldn’t beat them.
The Vodacom brand positioning was so well communicated internally and embedded in employee mind that till 2012 , the employee still believed that their company was number 1 operator in the DRC , while since 2002 it’s only in 2012 that they took that position.