The Top 8 Reasons To Rename a Business
Changing a brand name or business name is a significant action to take with serious consideration. Sometimes however it needs to be done, for good reason and it can be fundamental to the success of a business. There are 8 core reasons to rename a business, in this post we look at each and their underlying drivers along with prime examples of brands that have changed their names as a consequence . 1. The Brand Name has Become Meaningless or Irrelevant A brand name can lose its meaning or become irrelevant when there are significant changes internally or externally. Internally this can be due to a company change, a brand story realignment, change in mission, vision, values, or brand promises and culture. Alternatively it can be a change in the product, service or delivery. Each can break the connection with, or create conflict with the name. External changes can be with the market, technology, competition or a change in demand for the product or service, making the name no longer able to represent the company. Other drivers within this category are: the name being too big or broad for what the company does; it’s indistinguishable from competitors; or it makes people think the business does something completely different. Examples: 3M, Pioneer and Xerox 2. For Marketing purposes Unless a business is a monopoly, or creates a new market of its own, marketing is the key to generating a stream of sales. During a businesses lifespan there can be many developments which make it a smart marketing decision to rename. When the market recognizes a business more by its product brand name than its own, it might be time to adopt it. Similarly when the nickname is more commonly known and used by your market, it might be time too. With the advent of the Internet, search and domain names are an all important asset for a brand to own. Unavailability of the domain is a concern. A brand needs to be found online, so when others own your namespace, or if when Google searching a brand name returns an overwhelming volume of inappropriate search results, it could be a time to rethink the brand name. Examples: FedEx, Panasonic and Crayola 3. To Sound Better When a brand name has an undesirable nickname, is too long and gets truncated to a meaningless set of initials, or is an abbreviation which those newly exposed to it have no idea what they stand for there is a problem. A great brand needs to be easily heard, understood and remembered. If people have a hard time pronouncing, spelling, or remembering it, changing the name to one that is short, sticky and sounds better could be the best thing. Examples: Starbucks, Toyota and Subway 4. To Escape a Bad Reputation When a company publicly goes through legal and/or financial issues, or experiences a sustained wave of bad publicity, brand perception can become irreversibly damaged and negative. This can also happen due to a significant drop in standards, or quality of servi
