Question

Topic: Branding

Your Thoughts On Changing Brands In Midstream

Posted by Anonymous on 3/14/2008 at 10:50 PM ET 250 Points
We have a client who began working their plan three months ago, under Name "A". Although the name is a bit long, their name has begun to gain international attention. One of the founding members of the company is now making motions to change the name, completely.

The name of the new company carries with it the name of the "founding" company, whose brand is an international success.

Example:
Jones Legal Services (founding)
Jones Accounting Services (NewCo)

The newco is marketing to the accounts of the existing branded company...which I believe is a good thing.

We are advising that they hold on to their existing brand, since it is gaining such attention (strength) in the marketplace.

We need some help backing up our position to the client...if such exists. i come to my "board" and ask for your advice.

Facts:
Twelve year brand of originating firm
Three month working brand of newco, with excellent initial results.

Other than the argument that the new name is long (four words), there is no other suggested reason to change the name.

Your thoughts, please...honored ladies and gentlemen.

Randall
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RESPONSES

  • Posted by ilan on 3/15/2008 at 6:43 AM Accepted
    As long as you don't change the BRAND VALUES you may change a name.
    But if the new name will change the BRAND ASSOCIATIONS in your cunsumers minds, its a very bad thing to do.
    Simple.
    Don't complicate it, and do homework on how many successful brands changed the name in mid stream and survived.
  • Posted by L. Duggan on 3/15/2008 at 10:06 AM Accepted
    Why not conduct research among existing and prospective customers of the firm. I would determine what level of brand equity exists for the original brand name. Also do the research to assess where it is positioned relative to competitors. If customers tell you it has a favorable positioning consistent with what the owners want then you could make the case against changing it.

    As you well know a company's brand is a valuable asset. Brand actions should not be made on the basis of ego, but rather because of solid data from the marketplace that dictates a change. I would try to find out why the founding member wants to make the change and essentially use his thinking as the null hypothesis in the research. Of course there is always the chance that he will go ahead and change it anyway, but I would certainly recommend you get a read from your customers first.

  • Posted by Jay Hamilton-Roth on 3/15/2008 at 10:09 AM Accepted
    I'd suggest that the objections be listed, and put away for a year. Give the name a chance to build, and then offer to gradually transition it again (if need be). Suddenly changing the message midstream can be a great guerrilla marketing technique ("Oops - wrong company name - this is what it should be"), but given your market, I wouldn't suggest it.

    I think lending the founding name to get the brand established is a wise first step, if you're marketing to the existing client base. If the potential market for the new brand isn't the existing client base, then starting the name anew wouldn't matter much.
  • Posted by Susan Oakes on 3/16/2008 at 6:17 PM Accepted
    Perhaps there is a case based on costs. That is, the investment that has been put behind the original name including development, branding, sales effort etc and now the investment required for the new name on top of the original investment.

    As you mentioned it doesn't seem that there are any incremental business from new relationships it seems that they are adding extra costs to the business without thinking it through.

    Susan
    M4B
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