[ad_1]
Rebranding a company in the midst of a crisis or as a way to signal a change in focus has been a popular corporate strategy for decades. But does it really help companies get over their image problems, or do customers see a name change as a window dressing?
According to one expert, rebranding is often used to update a company’s name to reflect cultural changes in consumer behavior or values, such as when Kentucky Fried Chicken became KFC and “fried” dropped out as consumers increasingly sought healthier choices. In other cases, brands rename themselves after mergers or acquisitions to signal new direction or to steer clear of negative publicity.
“The success of a name change depends on companies convincingly educating existing customers about the rationale for the name change,” said Jill Avery, senior lecturer on brand management at Harvard Business School. “Companies run the risk of hurting their relationship with consumers if the name change is made for illegitimate, unfounded or wrong reasons.”
In the example of Facebook saying it’s Thursday changing company name to Metasaid the downside risk for the company is minimal as it changes its corporate branding, not its product brand.
Here’s a look at several major corporate rebranding efforts over the decades and how they’ve progressed.
Dunkin’ Donuts → Dunkin’
The company aimed to bring a new breath to the brand by removing the word “Donuts” from its name in 2019. Customers would still recognize its colors and font, but the company wanted to give it a nod to the chain’s beverage sales, which account for more than half of its business.
The popularity of its long-standing slogan “America Runs to Dunkin” was also a compelling reason to simplify the brand name.
But the company said the focus on donuts remains in place.
Neeru Paharia, an associate professor at Georgetown University’s McDonough School of Business whose research focuses on brand signaling, said the rebranding has allowed Dunkin to diversify its product offerings. “There was a huge opportunity in the breakfast market,” he said. “Still, at the same time, everyone knows that if you want a donut, you’re going to go there.”
Only before the name change takes effectTony Weisman, Dunkin’ Donuts chief marketing officer in the United States, said the company’s relationship with customers is similar to that of friends on a “first name basis.”
Philip Morris → Altria Group
In 2001, Philip Morris announced that it was renaming its parent company to Altria Group as part of an effort. shake off negative connotations with lawsuits against cigarette brands.
At the time of the name change, the parent company’s senior vice president of corporate affairs, Steven C. Parrish, said Friday that the company knew a name change would not solve its problems.
“We knew that changing the name wouldn’t make all cases go away – it wouldn’t change the fact that people get sick and die from smoking and it’s addictive,” said Mr. Parrish. “But we thought changing the name would help us explain what a large consumer products holding company is, not just a tobacco company.”
Google → Alphabet
Companies rebrand for reasons other than turning a new leaf after public relations nightmares. In 2015, Google reorganized under a new name, Alphabet, as a way to separate its monetized assets from the unprofitable parts of its company. The company is now worth $1.5 trillion more than it is called Google. DealBook reported. However, it is difficult to separate how much of this increase can be attributed to the name change and changing corporate structure.
The alphabet name change wasn’t the first time Google was rebranding. In 1996, Google founders Larry Page and Sergey Brin called their company. Back massage — a reference to the ability to analyze links that take users from one site to another.
British Petroleum → BP
In 1998 British Petroleum PLC said: would get American oil company Amoco for $48.2 billion. Under its new name, BP Amoco has become the largest producer of both oil and natural gas in the United States. After a merger new approach to branding aimed to position the company as an environmentally friendly retailer.
Along with a new sunburst logo, the slogan “beyond oil” was born.
In 2001 BP Amoco became BP. The simplified name is the name given to officials in Washington after the Deepwater Horizon oil spill in the Gulf of Mexico in 2010. Used the words “British Petroleum” and “BP” interchangeably.
calling the old name a “Back slap to England” at a time when the company was 39 percent owned by American shareholders and half the board of directors was American.
IHOP → IHOb
Some name changes have been temporary gimmicks to promote a new product. Known for its pancakes in 2018, IHOP played with its name by pretending to change it to IHOb in a campaign to market its Ultimate Steakburgers line.
“B” stands for hamburger. It got a lot of attention.
“We thought people would have fun with this, but we never imagined it would get America’s attention that way,” said IHOP spokesperson Stephanie Peterson.
Valujet → AirTran
All 110 people on board were killed in a Valujet Airlines crash in the Florida Everglades in May 1996. A month later, the Federal Aviation Administration closed the airline indefinitely, citing “serious shortcomings” in its activities. But a spokesperson for the airline said it would be back.
As its public image struggles, Valujet announced He said he bought AirTran Airways in 1997 and would drop the Valujet name. The Valujet name was acquired by Southwest Airlines in 2010. He was buying AirTran.
Aunt Jemima → Pearl Milling Company
The pancake mix and syrup line, formerly known as Aunt Jemima, has long faced criticism that its name and likeness are based on racist imagery. Changed its 131-year-old name with the Pearl Milling Company. St. John’s Wort, which pioneered the pancake mix. Joseph comes from the company in Mo.
The change was initiated last year after the murder of George Floyd sparked protests against racial injustice and a nationwide showdown over the symbols and meanings of the Old South.
[ad_2]
Source link