"Consumers are always looking for something newer and better, so companies have to change to keep their business and attract new customers. One way corporations do this is by ‘rebranding,’ which is changing their name or logo in order to seem new and interesting. Jacqui Benson, who teaches at the Simpson School of Business, calls rebranding an expensive gamble. She says with so much on the line, companies should always hire a marketing firm to guide them through the process. Do it right and you get positive buzz and an increase in customers and earnings. Do it wrong, and you become a laughingstock who has a lot fewer customers.
"One example of rebranding is Dunkin’ Donuts shortening its name to Dunkin’. Professor Benson, who is working as an advisor to the coffee and donut chain, thinks this is likely to go over well. The new name is familiar but shifts the focus to coffee, which is actually their best-selling product. It may even make customers feel more welcome than before: as the Dunkin’ CEO says, ‘Friends use first names.’
"In contrast, Weight Watchers’ decision to rename itself WW seems destined for disaster. When asked about the change, Benson, who has not worked with the company, shook her head and shrugged. ‘Weight Watchers, that name tells you exactly what it’s about. WW, what is WW going to mean to anybody? The first thing that came into my head was the World Wars. It’s not very catchy.’ She added that she’d heard a public relations expert point out that WW is very awkward to say out loud, which will make it harder to promote."
What is the main idea?
Companies that have names that describe what they sell or do will be more successful.
Consumers appreciate businesses that stay up-to-date with their needs and interests.
Rebranding has no chance of success unless you hire someone with experience to help.
Rebranding to seem new and interesting is a risky business strategy that requires great care and expert advice.
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