The Pros & Cons of a Name Change
A Bloomberg News report once noted that of those companies changing their names, 52 percent changed because of mergers or acquisitions; about 44 percent wanted to better define themselves.
Others may include:
- A change of ownership
- Declining business. A fresh name and look can jump-start a company — but not in and of itself. It must be accompanied by announced philosophical, directional, product (etc.) changes as well.
- Changing marketplace. When fried foods came to be regarded as unhealthful, Kentucky Fried Chicken changed to “KFC.” This enabled them to re-define themselves but still retain their product line.
- Tarnished name and reputation.
- The name does not effectively describe your company’s business.
So, what are some of the pros and cons?
- The name fits a new brand
- Garner attention from new clients and boost sales
- Energize and excite staff and current customers
- Provide excuse for creative events & promotions
- Demonstrate longevity and a commitment to the future of your business
- Better define products/services
- Give up marketing equity
- Create confusion in the market
- New collateral/signs/media buys/website
- The reasons you wish to change. Can your problem with your current name be solved through re-marketing?
- Is the name you’ve chosen available?
- Is the name memorable? Test this rigorously with representatives of your various target markets. Test both internally and externally.
- Can the name be presented graphically, in an attractive, clear and interesting way? Can it be reproduced in both color and black and white? (It may be too expensive to print all your collaterals — such as order forms, etc. — in color.)
- Does it work in social media — either in its entirety or abbreviated for, say, for Twitter?
- How does the name work in a sentence? As a possessive?
- How does the name stack up against its competitors? Is it easily distinguished? Does it convey your unique message?
If you found these tips helpful but, still need some guidance, please consider contacting Kudzu Brands for a consultation. Kudzu Brands is where growing businesses go for brand development and brand management.