The article discusses the significance of branding in acquisitions, using WHSmith's sale as a case study. The stores were sold without the iconic WHSmith brand, which has been established for 233 years. The author argues that the brand signifies trust, familiarity, and consumer comfort, which are critical for driving sales. The concept of cognitive fluency explains why familiar brands are favored over unknown alternatives, emphasizing the high cost businesses incur when they abandon trusted legacy names.
The name becomes a mental shortcut. You think, 'I've seen this. I trust this. I'll buy this.' That shortcut is priceless, yet companies underestimate it.
Walking away from a legacy name can cost far more than anticipated, as trust and familiarity cultivated over the years significantly influence consumer choices.
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