Is it time to change your brand name?
From the very abstract, to a founder's family name, corporate brand names have a story behind them.
However, when markets shift, and the brand itself changes, company leaders may find themselves considering a new name for a well-established brand.
There are a number of factors that drive organizations to contemplate a change:
- The brand name is difficult to pronounce.
- The brand name has limited awareness outside of geographic markets.
- The brand name appeals to a limited market.
- The brand identity is tired and obsolete.
- The organization needs a more contemporary, Internet-focused brand.
- The brand does not resonate with younger generations.
Companies can start the decision-making process by asking several important questions.
- Has your brand changed?
- Has your competition changed?
- What is your competitive advantage? (e.g. why do customers buy from your organization instead of your competitors). Does your brand align with your competitive advantage?
- How do people perceive your current brand? How do you want your brand to be perceived?
- What would a new brand name deliver to customers?
- Who are the audiences that would be affected by a brand name change?
- Which objectives do you believe that your organization must accomplish in order to build your business and reach desired growth goals?
- What are the evident strengths, weaknesses, opportunities, and threats of a brand name change?
- What are the time, financial and human resources available to take on a project of this magnitude?
- What are the time, financial and human resources available to roll out and maintain a brand name change marketing campaign?
When companies are looking at a name change, they not only must conduct comprehensive research and analysis in making the decision, but also need to consider the potential impact on all of its constituents: customers, employees, partners, board members and the industry overall. It’s these audiences that will be responsible for telling the new story.
Food for thought: KFC
One prominent brand currently in a unique rebranding process is KFC. In March 2008, KFC released news that it would be testing Kentucky Grilled Chicken as a co-brand of Kentucky Fried Chicken. The news garnered attention from online and mainstream media including USA Today and Reuters.
The release stated that at the time, it was “Currently being tested in Indianapolis, Colorado Springs, San Diego, Oklahoma City, Jacksonville, Fla., and Austin, Texas, KFC’s Kentucky Grilled Chicken is expected to be unveiled nationwide in early 2009.”
NameWire: The Name Development Blog posted its take on the news in a March 24, 2008 post:
“In the coming weeks you can expect to see "Now Grilling" signs at select KFC stores. And storefront signs will be changed to feature "Kentucky Grilled Chicken." The London Free Press says that "Even the brand's ubiquitous chicken buckets will get a makeover..."
“…First of all, customers have to accept that KFC can grill chicken and that the product is indeed healthier than its fried alternative. Will they really believe that a piece of grilled chicken from KFC is better for them than a piece of extra crispy chicken?" Click here for the full post.
According to the Yum! Brands, Inc. (YUM) Q3 2008 earnings call transcripts from Oct. 8, 2008, Yum! chairman, president and chief executive officer David C. Novak stated, “We expect to turn around KFC performance in 2009 with the introduction of our successfully tested Kentucky Grilled Chicken.”
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