Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2002

A Research Study submitted in partial requirement for the degree of Master in Business Administration, School of Management

The purpose of the study is to find the link between R&D and brand consolidation using theoretical view and to apply the link in the case of a foods manufacturing company. Within the framework of a company in consumer goods industry, which emphasizing the role ofR&D and marketing in functional level, pursuing differentiation strategy to attain competitive advantage, and developing the core competencies externally through mergers and acquisitions, the study posted the hypotheses that the link is available in a causal-effect relationship. 'Causal' put R&D as drivers for companies choosing external growth through acquisitions, which bring about the brands from acquired company, thus brand consolidation is needed. 'Effect' put the impact of brand consolidation to the R&D with regards to company's decision on brand portfolio, since brand may become leading brands (granted fully support on R&D), migrate brands (R&D assist in ha1monization) and discontinued brands (possibility of R&D being discontinued). Looking at the application in a foods manufacturing company, the competitive context is given namely the awakening of functional foods category, retailers consolidation and trend in mergers and acquisitions. R&D and brand consolidation considered as the key strategic initiatives to answer the challenges. Brand consolidation model is intr·oduced in an effort to realign the brand portfolio in global and country level, while the role of R&D is underlined before, during and after the brand consolidation process. The implication of the link to the key perfo1mance indicators shows that a company could reap the benefit by applying such linkage in their strategy platform. Suggestion posted that a company should look at their existing internal R&D and brand portfolio before deciding to pursue R&D through external growth and doing brand consolidation.