This video clip is a great way of highlighting one way in which a strategy of growth through acquisition can lead to some significant changes in a product portfolio...

In the fallout from the banking crisis, Spanish banking giant Santander has been busy acquiring well-known UK financial services brands. It now owns a portfolio of 1,300 outlets across the country. It plans to rebrand them with the name of the parent company and, probably, merge some of the brands that currently trade next door to each other.

QUESTIONS

1/ What is meant by the term “brand name”?

2/ What is a “parent company”?

3/ Outline two advantages and disadvantages of having a portfolio of financial services brands owned by the same parent company

4/ Briefly describe some of the operational and marketing problems that Santander may experience when it consolidates its acquisitions under one brand name