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Slide Notes
Radio Shack was started in 1921 to sell equipment to amateur radio operators. The name Radio Shack is a reference to the term for a small, wooden structure that housed a ship's radio equipment. This name was relevant when the business was launched but as technology evolved the name became less relevant.
A few years ago the leadership of Radio Shack thought they would update the brand by starting to call it “The Shack.” Bad idea. The “weight” of roughly 90 years of “Radio Shack” was locked into the minds of consumers. A total rebranding would have been a good idea, but using something so similar to the Radio Shack name was wrong (and led to bankruptcy).
Rather than attempting to give the brand a new "nickname" the owners of Radio Shack should have changed the name to be more in line with today's electronics consumers!
A few years ago the leadership of Radio Shack thought they would update the brand by starting to call it “The Shack.” Bad idea. The “weight” of roughly 90 years of “Radio Shack” was locked into the minds of consumers. A total rebranding would have been a good idea, but using something so similar to the Radio Shack name was wrong (and led to bankruptcy).
Rather than attempting to give the brand a new "nickname" the owners of Radio Shack should have changed the name to be more in line with today's electronics consumers!
10 Reasons To Change Your Name
Published on Nov 06, 2015
Here are 10 reasons why you might want to change the name of your brand or company.
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10 Reasons To Change Your Name
Radio Shack was started in 1921 to sell equipment to amateur radio operators. The name Radio Shack is a reference to the term for a small, wooden structure that housed a ship's radio equipment. This name was relevant when the business was launched but as technology evolved the name became less relevant.
A few years ago the leadership of Radio Shack thought they would update the brand by starting to call it “The Shack.” Bad idea. The “weight” of roughly 90 years of “Radio Shack” was locked into the minds of consumers. A total rebranding would have been a good idea, but using something so similar to the Radio Shack name was wrong (and led to bankruptcy).
Rather than attempting to give the brand a new "nickname" the owners of Radio Shack should have changed the name to be more in line with today's electronics consumers!
A few years ago the leadership of Radio Shack thought they would update the brand by starting to call it “The Shack.” Bad idea. The “weight” of roughly 90 years of “Radio Shack” was locked into the minds of consumers. A total rebranding would have been a good idea, but using something so similar to the Radio Shack name was wrong (and led to bankruptcy).
Rather than attempting to give the brand a new "nickname" the owners of Radio Shack should have changed the name to be more in line with today's electronics consumers!
Photo by JeepersMedia
#1 You are tired of explaining how to pronounce or spell it.
Here are a few of the names chosen by startup companies last year:
• Zairge
• Xwerks
• Synthorx
I defy you to guess what the business is selling. Go ahead…try…I’ll wait. Can’t do it? I’m not surprised. You won’t get a clue from the name, and unless you already know about these companies you are taking a wild guess.
If no one can pronounce or spell your name how do you expect people to remember it?
• Zairge
• Xwerks
• Synthorx
I defy you to guess what the business is selling. Go ahead…try…I’ll wait. Can’t do it? I’m not surprised. You won’t get a clue from the name, and unless you already know about these companies you are taking a wild guess.
If no one can pronounce or spell your name how do you expect people to remember it?
Photo by RLHyde
#2 No one outside of your company "gets" your name.
My favorite example of this is Xobni (pronounced “zob-nee”). The company was founded in 2006 and made software for mobile and email applications. It raised millions of dollars from venture capitalists and was acquired by Yahoo in 2013. After incorporating some of its features into Yahoo Mail, Xobni was shut down.
Xobni is famous as a prime example of the “curse of insider knowledge.” The founders of Xobni loved the name because it was inbox spelled backwards. They also assumed that people would fall in love with the name in the same way that they did but most consumers could not relate to the name.
If your name is only understood by your company's employees, then perhaps a name change would help!
Xobni is famous as a prime example of the “curse of insider knowledge.” The founders of Xobni loved the name because it was inbox spelled backwards. They also assumed that people would fall in love with the name in the same way that they did but most consumers could not relate to the name.
If your name is only understood by your company's employees, then perhaps a name change would help!
Photo by marioanima
#3 Your name is too similar to competitors' names.
Many companies have generic or descriptive names. They name their product “Fast Chop” because “fast chopping” is the main benefit of their product. The reason clients prefer generic or descriptive names is simple: they believe it saves on advertising costs. After all, every package of their product is a descriptive billboard that communicates their main benefit!
What they fail to consider is that most times their competitive set consists of products called EZ Chop, Speed Chop, QuickChop, TurboChop, etc. Nobody is going to notice “Fast Chop” even if the name is prominent on the package. Advertising will be wasted because even if consumers think the product is great, when they get to the shelf they will be confused by all the similar names and similar products.
If your name does not stand out versus your competition you had better change it!
What they fail to consider is that most times their competitive set consists of products called EZ Chop, Speed Chop, QuickChop, TurboChop, etc. Nobody is going to notice “Fast Chop” even if the name is prominent on the package. Advertising will be wasted because even if consumers think the product is great, when they get to the shelf they will be confused by all the similar names and similar products.
If your name does not stand out versus your competition you had better change it!
Photo by catlovers
#4 You have a new target or strategy that won't fit with the current name.
Speaking at Macworld Expo in 2007, Apple CEO Steve Jobs announced that Apple was dropping the word “Computer” from its name to become “Apple Inc.”
“The Mac, iPod, Apple TV and iPhone. Only one of those is a computer. So we’re changing the name,” said Jobs.
Formerly Apple Computer, the name change reflects the company’s newfound emphasis on consumer electronics. Jobs revealed the change following announcements on the new Apple TV and iPhone, with no new Mac configurations announced whatsoever.
If the strategy changes, then so should the name!
“The Mac, iPod, Apple TV and iPhone. Only one of those is a computer. So we’re changing the name,” said Jobs.
Formerly Apple Computer, the name change reflects the company’s newfound emphasis on consumer electronics. Jobs revealed the change following announcements on the new Apple TV and iPhone, with no new Mac configurations announced whatsoever.
If the strategy changes, then so should the name!
Photo by dfarber
#5 Your name and current brand identity/execution clash.
In 2003 the world's largest tobacco company, Philip Morris, officially changed its name to Altria Group.
"The change brings better clarity to the corporate structure" the company said in a statement.
CEO Louis Camilleri said that the name change was "an important milestone" in the evolution of the company.
"It doesn't signify an end or a beginning," he said. "Rather, it marks how far we have come and gives us a framework for how much further we aim to go."
The move was immediately criticized by a corporate watchdog group that favors international tobacco controls which termed the name change "a PR maneuver meant to distance the corporation's image from its deadly business practices."
In any case, the name change was critically important to signify an important evolution for the company.
"The change brings better clarity to the corporate structure" the company said in a statement.
CEO Louis Camilleri said that the name change was "an important milestone" in the evolution of the company.
"It doesn't signify an end or a beginning," he said. "Rather, it marks how far we have come and gives us a framework for how much further we aim to go."
The move was immediately criticized by a corporate watchdog group that favors international tobacco controls which termed the name change "a PR maneuver meant to distance the corporation's image from its deadly business practices."
In any case, the name change was critically important to signify an important evolution for the company.
Photo by neatnessdotcom
#6 You are ready to enter the big leagues.
Larry Page and Sergey Brin started a search engine called BackRub. A year later they changed the name to Google, which reflected their mission to organize a seemingly infinite amount of information on the web.
Blue Ribbon Sports was founded on January 25, 1964. The company, started by Bill Bowerman and Phil Knight, officially became Nike, Inc. on May 30, 1971.
Sometimes the name you start with is not one you want to use when raising money from the investment community!
Blue Ribbon Sports was founded on January 25, 1964. The company, started by Bill Bowerman and Phil Knight, officially became Nike, Inc. on May 30, 1971.
Sometimes the name you start with is not one you want to use when raising money from the investment community!
Photo by Werner Kunz
#7 You can add a relevant benefit to aid recall & persuasion.
Diet Deluxe was the name for a new frozen entree company which was renamed Healthy Choice to add a benefit to the product name.
Sound of Music operated nine stores throughout Minnesota in 1978. After a tornado hit their largest store, the owner decided to have a “Tornado Sale” of damaged and excess stock in the damaged store’s parking lot promising “best buys” on everything. After Sound of Music made more money during the four-day sale than it did in a typical month, the company was renamed Best Buy.
Is there a relevant benefit in your name? Should there be?
Sound of Music operated nine stores throughout Minnesota in 1978. After a tornado hit their largest store, the owner decided to have a “Tornado Sale” of damaged and excess stock in the damaged store’s parking lot promising “best buys” on everything. After Sound of Music made more money during the four-day sale than it did in a typical month, the company was renamed Best Buy.
Is there a relevant benefit in your name? Should there be?
Photo by frozenfoodjournal
#8 Your current name is an ego trip.
The biggest factor in selling or gaining an investment in your business is the degree to which the business can operate without you. If your name is the business name, then growth and investment will be limited.
Subway started out as "Pete's Super Submarines" in Bridgeport, Connecticut. Do you think that Subway would have grown as fast if it were called Pete's Super Submarines?
At some point, someone will ask you to change the name of the business, so why not be proactive and think big now?
Subway started out as "Pete's Super Submarines" in Bridgeport, Connecticut. Do you think that Subway would have grown as fast if it were called Pete's Super Submarines?
At some point, someone will ask you to change the name of the business, so why not be proactive and think big now?
Photo by celine nadeau
#9 Your current name is an acronym.
Sometimes the acronym represents the initials of the owners (e.g., A&W Restaurants after Roy Allen and Frank Wright). Sometimes the acronym is a shortening of a larger name (e.g., Aflac is the first letters of American Family Life Assurance Company).
Acronym brand names are almost always bad. Not only do they take years of advertising to establish, the risk of mis-pronunciation is huge and can often cause negative brand equity. SAP is the market leader in enterprise applications and software. Their primary competitor, Oracle, loves to use the "sap" pronunciation and SAP-haters say the acronym stands for "Sad And Pathetic."
OPI makes some of the world's finest nail polish. But you don't get that good vibe if you pronounce OPI like "Opie," the kid from The Andy Griffith Show.
Don't give customers a reason to be confused about your brand name.
Acronym brand names are almost always bad. Not only do they take years of advertising to establish, the risk of mis-pronunciation is huge and can often cause negative brand equity. SAP is the market leader in enterprise applications and software. Their primary competitor, Oracle, loves to use the "sap" pronunciation and SAP-haters say the acronym stands for "Sad And Pathetic."
OPI makes some of the world's finest nail polish. But you don't get that good vibe if you pronounce OPI like "Opie," the kid from The Andy Griffith Show.
Don't give customers a reason to be confused about your brand name.
Photo by Banalities
#10 Your name is not likeable.
If your brand name is likeable, it will feel comfortable right away.
Why is this important? It gets your name locked into the head of the consumer and makes people more open to your message. If they like you, they will be more receptive to your products/services.
What is the “Acid Test” response? If you expose the name to your target customer and she smiles when she hears it or says, “That’s a great name!” without thinking about it, then you may have a winner on your hands. On the other hand, if she has a puzzled look or a negative reaction, you might want to consider a change.
Failure is not only shown by a negative reaction. I count “polite indifference” as a failure as well. If people have no reaction, then they are probably too polite to tell you how bad it is. And please do not expose the name only to friends and family. These people are programmed to be nice to you and so you won't get honest feedback.
If your name does not bring a smile to your customer's face, then maybe you should change it.
Why is this important? It gets your name locked into the head of the consumer and makes people more open to your message. If they like you, they will be more receptive to your products/services.
What is the “Acid Test” response? If you expose the name to your target customer and she smiles when she hears it or says, “That’s a great name!” without thinking about it, then you may have a winner on your hands. On the other hand, if she has a puzzled look or a negative reaction, you might want to consider a change.
Failure is not only shown by a negative reaction. I count “polite indifference” as a failure as well. If people have no reaction, then they are probably too polite to tell you how bad it is. And please do not expose the name only to friends and family. These people are programmed to be nice to you and so you won't get honest feedback.
If your name does not bring a smile to your customer's face, then maybe you should change it.
Photo by @Doug88888
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It is available for Amazon Kindle:
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