Will Smith and M-I SWACO follow the heretofore monothlic brand strategy of Schlumberger?
This strategy has served Schlumberger well in previous acquisitions. Schlumberger has effectively reinforced its position as an integrated solutions provider. Our Gulf Research studies consistently find that Schlumberger is the market leader in brand equity. The question is whether their Brand Trust would lift the profile and reputation of Smith (which is slighly below market averages in the product categories). On the other hand, M-I SWACO might not need as much of a brand power boost. If Schlumberger’s brand promise is translated through Smith, how will Smith attain the same stature in innovation? The good news here is the lion’s share of Smith’s revenue (based on service lines) comes from M-I SWACO. M-I SWACO successfully rebranded in 2003 to establish itself as a solutions-driven company by bringing the drilling fluids and solids control portion of their business more tightly together. It seems logical for Schlumberger to bring the fluids company more closely into the fold, but Smi
