The First Salesperson, Part 2

The Evolving Name Game – When (and When Not) to Change Your Brand Identity

A brand name is a cornerstone of a company’s identity.  It’s part and parcel of how it is known legally, financially, and publicly.  It is typically the legal identity of the organization.  A company’s name appears on everything.  From small items — like business cards and letterhead — to important items — like deeds, patents, and incorporation papers — the company name plays a pivotal role.  In marketing, the name is usually on sales and promotional items from the domain name to the signage on the door or building.  It also appears on every financial document from bank accounts and checks to the IRS’ Employee ID number and tax returns.  Indeed, for a business, the company name is an intricate part of everything from brand to balance sheet.  Given that, the question arises: should a company ever consider changing its established name?

On the one hand, a name is synonymous with the goodwill it has earned.  According to studies by Nielsen and others, a company name can be “one of the most valuable assets a company possesses”.  A brand name’s power comes from the credibility, quality, and customer expectations attached to the name. 

On the other hand, it’s becoming more common for companies to change their name in order to properly represent themselves to the world. In fact, many brands are consciously designing new names for a multitude of reasons.

So, given the importance of a company’s name and the time and effort people put into creating a company’s name, is it a good idea to change it?  The short answer is yes. When?  Two situations:

1. While a strong brand name can be a powerful asset, clinging to an outdated, unfit, or outgrown moniker can hinder success.
2. Changing a name for a product, company, or even a person makes sense if there are BIG benefits to the new name.

What’s In A Name?

There is power in words.  Words are not just letters.  When spoken, words create sounds.   In Microstyle:  The Art of Writing Little by Christopher Johnson, he discusses how different words “feel” to customers depending on the rhythmic contrast of the word.  So what is a rhythmic contrast?  A basic rhythmic contrast is the one between two different types of metrical units:

• iambs, which consist of an unstressed syllable followed by a stressed one (dee DUM)
• trochees, which consist of a stressed syllable followed by an unstressed one (DUM dee)

As Johnson put it, “iambs tend to sound lighter and softer, and trochees tend to sound heavier and harder.”  This is true in sentences but it is even true in messages as short as brand names. “Feminine” brand names, like Chanel, Hermes and Givenchy, are often iambs.  “Masculine” brand names, like Black & Decker, Rolex and Puma, tend to be trochees. Most people “feel” this difference even if they find it hard to explain or describe. 

The goal for a company’s name, then, is that it feels good to customers.  Another reason to change a name is to make it easier to pronounce, understand, spell or remember.  Case in point.  Ralph Lifshitz wasn’t such an easy name to pronounce, spell or remember.  The fashion designer understood that and decided to legally change his name to Ralph Lauren.  But he did that long before making a name for himself in the fashion industry.  He didn’t change the company’s name; just his own name.

To Change or Not to Change, That is the Question

The decision to change a company’s name is not a casual one.  One study found that when customers see a brand-name change, they expect radically new features.  And the European Journal of Marketing conducted research that indicated that many customers create their own associations for a brand.  Those associations could be positive or negative and were independent of the ones the company put forward.  This means a brand name change can be helpful if it dispels associations a company wants to avoid or if the company wants to create new associations with a fresh name.  Let’s explore when a brand name change can be a strategic move and delve into the stories of Nike and Amazon, who both made successful name transitions.

• From Blue Ribbon to Sporting Goods Champion: The Nike Evolution – Phil Knight and Bill Bowerman, founders of the now-iconic Nike, initially named their company “Blue Ribbon Sports” in 1964. While it hinted at quality (blue ribbons often signify awards), it lacked memorability and didn’t reflect their aspirations or their aspirational call to action for their customers.  In 1971, after severing ties with their Japanese distributor and venturing into their own athletic shoe line, they recognized the need for a name change. They chose “Nike,” the Greek goddess of victory, a name that embodied the spirit of competition and athletic achievement central to their brand identity. This shift not only resonated with their target audience but also laid the foundation for their global success.
• From Magic Spells to E-commerce Empire: The Amazon Transformation – Jeff Bezos, founder of Amazon, initially named his online bookstore “Cadabra” in 1994. While intended to evoke a sense of magic and possibility, it was phonetically tricky and caused trademark issues. Recognizing this, Bezos made a crucial decision. He opted for “Amazon,” the world’s largest rainforest, symbolizing the vastness and diversity of products his online store aimed to offer. This name not only conveyed the company’s ambitious vision but also proved easier to remember and spell, propelling their journey to becoming the e-commerce giant it is today.

Can a Name Change Fix an Image Problem?

A brand name change can be a powerful tool for rebranding, but it’s not a guaranteed fix-all.  It can work when it is used to shed a negative association.  If a brand name is associated with a past scandal or negative connotations, a change can create a clean slate.   For example, Tropicana, a juice company, faced criticism for its packaging not reflecting the natural ingredients. Their 2009 name change to “Tropicana Pure Premium” aimed to address this concern and communicate a focus on fresh, high-quality products.

However, a name change alone won’t solve deeper issues.  If a company’s brand image suffers due to poor customer service or low-quality products, a name change is just a band-aid solution that won’t make underlying problems go away.

• From Well-Known Dark Horse to Little Known Villain – Blackwater Worldwide was a private military company that gained notoriety for its controversial actions during the Iraq War.  They were highly aggressive, violating rules of military engagement banned even by actual armies.  Their aggressive tactics tarnished their image.  In hopes of shedding their negative reputation, Blackwater rebranded to Xe Services in 2009. The idea was a complete name change with a more neutral and forgettable name.  Xe comes from the Greek word for “stranger.”  But the rebranding failed for a few reasons.
• Lack of Substance – The name change alone could not erase the negative image they had conjured with their actions. People associated Xe with Blackwater’s past actions.
• Public Recognition – While Blackwater had become a household name, even if for negative reasons, Xe had no brand recognition.  So the trust Blackwater had built and then tarnished was gone and the new company name had not earned any trust.
• Transparency Issues – The primary reason the brand name failed is that Xe didn’t adequately address the underlying issues that led to Blackwater’s image problems. The public questioned if the company had truly changed its practices.  Many thought it was an attempt at a whitewash.

The rebranding — widely seen as a PR stunt — didn’t achieve its goal. Xe eventually faced further legal troubles and ultimately dissolved in 2014.

The Key to a Successful Name Change

The success of a name change hinges on two crucial factors:

1. Strategic Alignment – The new name should clearly reflect the brand’s current values, target audience, and product offerings.
2. Effective Communication – A well-executed communication plan is essential to ensure brand recognition and customer understanding during the transition.

A brand name is a powerful tool that shapes customer perception and influences sales. While a well-chosen name can be a lasting asset, there are situations where a change can be a strategic move for growth. By learning from successful brand name transitions and understanding the limitations of a name change alone, companies can make informed decisions about their own brand identity and decide if a name change is needed to pave the way for a successful future.

Next week, we’ll delve into the characteristics of a strong brand name and explore the golden rules for crafting a memorable and impactful moniker.  Stay tuned.

Quote of the Week

“A brand for a company is like a reputation for a person.  You earn reputation by trying to do hard things well.” Jeff Bezos

© 2024, Keren Peters-Atkinson. All rights reserved.

The post The First Salesperson, Part 2 first appeared on Monday Mornings with Madison.