Question

Topic: Taglines/Names

When Can A Simple Name Change Increase Business?

Posted by Brazzell Marketing on 3/25/2011 at 3:16 PM ET 250 Points
A small local business has a name that the target audience might not fully understand. Business owner's personal experience shows that many people don't get the name, but she has already invested close to $50,000 in advertising over her first three years in business. When can a name change increase business? Anecdotes and/or case studies would be helpful.
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  • Posted on 3/25/2011 at 3:26 PM Accepted
    I suppose it depends on the name. Is it misleading (e.g. doglovers when she's selling bounty hunting supplies)? non-sensical/mashup (e.g. farfignewtons)? outdated (e.g. Fax-omatic)?
  • Posted by Brazzell Marketing on 3/25/2011 at 3:44 PM Author
    I have not yet received permission to release the exact business name, and I don't expect such permission. So I am hoping mostly for anecdotes, references to case studies, and general guidelines. But to answer some of the questions above:

    The name is confusing because it is a merging of two words with one of those words being a piece of professional jargon - while the client base is retail.

    The "research" saying the name is confusing is purely anecdotal. I conducted a four person informal focus group with 2 of those people being in the target market. No one gets the name except health care professionals, and only the older two didn't like it. I reported my opinions to the business owner. The business owner reports she has had similar concerns because multiple people have been unable to "get" the name when she is saying it and spelling it over the phone. The name isn't impossible like some foreign word though. It's not a big negative.

    The target market is people age 65+ - especially those with transportation challenges.

    The business is pharmacy. The bulk of the advertising budget has gone to journals that target seniors, but has yielded 0 results per the business owner. They have focused on the types of journals that are distributed through doctor office lobbies, but I find this problematic because of the lack of opportunity to establish repetition in the one medium. Face-to-Face marketing through events has been more effective according to the owner's assessment. The content of the magazine advertising focused on their sales strengths for their target audience. While the message could have been fine tuned a little, the pieces used in the past were very well branded with consistent logo usage, good writing, and respectable design.

  • Posted by Jay Hamilton-Roth on 3/26/2011 at 9:11 AM Accepted
    A local restaurant ("Taste of Asia") was resurrected when it was renamed simply ("Thai Seafood Restaurant"). While the food remained unchanged, the name made is obvious what was being sold.
  • Posted by mgoodman on 3/26/2011 at 2:58 PM Accepted
    The recommended approach for your client will depend importantly on whether there is ANY value in keeping the old name or not. Maybe the $50,000 was totally wasted, or maybe there's still some value from the branding and positioning work that's already been undertaken.

    What's worked (or not worked) for others may not be so relevant.

    The other thing to consider is that you may have a new audience for the business every few years. It doesn't sound like this is a consumable product with high repeat purchase levels. If it's a one-time purchase decision, that means your target audience is always new, so brand name awareness is much less important. Any name will be new to the next customer. Continuing to invest in a name that is new to each new customer doesn't seem to make much sense, especially if it's a sub-optimal name to begin with.
  • Posted by Chris Blackman on 3/27/2011 at 11:33 PM Accepted
    Apple Computer changed it's name to Apple Corp as it transcended into mass market music players and then into phones. Not saying the name change caused the revenue hike but they needed to make clear they were selling more than just computers.
  • Posted by Brazzell Marketing on 3/28/2011 at 10:25 AM Author
    Thanks everyone. The owner will spend the next week trying to gauge the amount of brand loyalty and name recognition she has built up. If we find further evidence that the brand loyalty only exists with about 100 customers, we will begin plans to brace the 100 customers for a name change and embark on rebranding the company in a way that better appeals to her target audience.
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