The Power of Being a Brand Within a Bigger Brand

You might be curious about the title of this article and why we thought it was important to dedicate an entire post to this topic. Allow me to share some insights into our past year. At the start of 2022, our company was acquired by Software Mind, a larger software company based in Poland. As a result, we transformed into "Virtualmind, part of Software Mind".

In this blog post, we will delve into the advantages and challenges of operating as a subsidiary brand within a larger international brand. Our intention is to decode how this approach can foster growth, expand our market presence, and create opportunities for both the parent brand and the subsidiary brand. By exploring these aspects, we hope to offer valuable insights into the dynamics and potential benefits of being part of a bigger brand while maintaining our distinct identity.

One of the key advantages of being acquired by an international brand is the ability to tap into the established reputation and credibility of the parent company. The larger company carries significant recognition, trust, and brand equity, which can help the subsidiary gain immediate visibility and credibility in new markets. Consumers are more likely to trust and engage with an organization that operates under the umbrella of an established international group. But it can also be the other way around. In our case, our presence in the US and Latin American markets was much bigger than our parent company, and our goal was to join forces to make the group grow stronger.

Another significant benefit lies in the access to extensive resources that a bigger international brand can provide. These resources may include financial support, advanced technology, marketing expertise, and research and development capabilities. The subsidiary brand can leverage these resources to accelerate its growth, streamline operations, train its people and invest in innovation. Access to a broader customer base and distribution networks of the parent brand can also open up new avenues for expansion and revenue generation.

While benefiting from the association with a bigger international brand, a subsidiary brand must maintain its unique identity and autonomy. Consumers are drawn to brands that have distinct personalities, values, and offerings. The subsidiary brand must ensure that it aligns with the overall brand strategy of the parent company while retaining its individuality. This balance enables the subsidiary brand to connect with its target audience authentically and cultivate a loyal customer base that appreciates its unique value proposition.

Being a brand within a bigger international brand offers numerous advantages, including leveraging the parent brand's reputation, accessing extensive resources, expanding global reach, and maintaining a unique identity. This approach allows businesses to tap into the global marketplace with a head start, benefiting from the established systems, networks, and expertise of the parent company. However, subsidiary brands need to strike a balance between aligning with the parent brand and maintaining their distinctive characteristics. By harnessing the power of the bigger international brand while preserving its individuality, subsidiary brands can thrive, grow, and create significant value for both themselves and the parent brand in an increasingly interconnected world.

For the most part of Virtualmind’s trajectory, we’ve been just us, and of course, it was no walk in the park to do this integration of views, ideas, cultures, and, for us, languages. But when the time of figuring out our next steps for the long term came, we knew that we wanted to continue expanding and sharing our knowledge, expertise, and talent with the rest of the world, and that’s why we chose to be part of a group. And let me tell you that both companies are now working side by side as one team, looking into the future and reaching for the stars, together.