PracticeConsultingAndersen Consulting facing £2bn brand loss

Andersen Consulting facing £2bn brand loss

Andersen Consulting's lost brand name could be worth as much as £2bn-£2.6bn of its total value, according to branding experts.

With annual worldwide net revenue in 1999 of £5.9bn, rebuilding the brand name would be a major challenge and could cost the firm hundreds of millions to re-establish, according to David Haigh, chief executive of leading brand valuation experts Brand Finance.

‘I wouldn’t be panicked but I’d go into overdrive to develop a new marketing strategy,’ he said.

Consulting would have been aware of the possibility of losing its name and would already have begun damage limitation exercises intended to make its key clients aware of the dangers and that the firm’s identity might be about to change.

But, said Haigh, Arthur Andersen may launch a new campaign to capitalise on today’s decision to divorce the two and take the brand name away from Andersen Consulting by 31 December this year.

‘Arthur Andersen could make considerable gains. I wonder how many businessmen will be confused. A bit of confusion and it wouldn’t be difficult to see business going to Arthur Andersen that would otherwise have gone to Andersen Consulting.

‘Arthur Andersen could ramp up an ad campaign, offering similar services,’ he said.

Andersen Consulting now has a number of options open to it including investing heavily in rebuilding a new brand. With current advertising spending running at more than £66.5m a year to support the existing brand, building a new name could cost even more, says Haigh.

The firm could also consider breaking into a number of smaller units which could develop their own brands.

However, the option that Andersen Consulting has already said it could not rule out is acquiring, or merging, into an already established brand.

Links

Date set for Andersens’ divorce announcement

Exclusive: Daggers drawn in Andersens name battle
Andersen Consulting has blasted the chances of it losing its brand name as ‘Arthur Andersen fantasy’ – as both parties wait for the outcome of the arbitration to decide their futures.

EXCLUSIVE: Andersens’ divorce heats up
The Andersens’ divorce took another turn today with Andersen Consulting revealing it has 800 pieces of evidence which it believes show Arthur Andersen has breached a competition agreement.

Accountancy Age exclusive: Andersens civil war to be settled out of court
The bitter divorce battle between Arthur Andersen and Andersen Consulting could be settled out of court as early as next month, Accountancy Age has learned.

Forehand to hold court in Andersens divorce.The bitter divorce battle between Arthur Andersen and Andersen Consulting could be settled out of court as early as next month, Accountancy Age has learned.

Andersen CEO goes
A 27-year veteran of Andersen Consulting has been named as the firm’s new managing partner and CEO. Joe Forehand, who has been a partner for 17 years, succeeds George Shaheen who left in September to join the online grocer Webvan.

Andersen readies split
The two warring factions of Andersen Worldwide have appointed an arbitrator to oversee the firm’s divorce.

Arthur Andersen website

Andersen Consulting news release

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