When It’s Time To Re-Brand Your Business?
If you change what you do (if you pivot), you should change your name.
This is why when a company, that has a good brand, is acquired, the acquiring company should keep the old brand. Facebook kept their brands because the brand had a strong association and following.
Consumers seem to be able to hold more and more niche brands in their head. They don’t want just one brand that does everything … they want niche brands that do only one little thing really well. The number of options we have is growing and, in general, this serves people well.
The average person can only associate one thing with a brand. It is really difficult for a person to understand a company can do more than one thing at once. Brands equal just one thing (and only thing only) in most people’s minds.
B2B Needs to Catch up to B2C in Branding
These rebrandings, in an honest opinion, were a mistake: they erased hundreds of millions in brand value and instead, caused confusion to old customers and potential buyers. While both Oracle and Salesforce are great companies, they made a strategic mistake in thinking that the overarching brand means more to the buyer. Large B2B software companies should look more like the large CPG companies (like Proctor and Gamble and Unilever) that have hundreds of well-known sub-brands (which, in Unilever’s case include: Axe, Dove, Hellmann’s, Lipton, Pond’s, Vaseline, Ben & Jerry’s, Breyers, Q-tips, and more).
Facebook kept their brands because the brand had a strong association and following. They don’t want just one brand that does everything … they want niche brands that do only one little thing really well. It is hard to change brand association. LiveRamp was acquired by Acxiom 18 months ago, and the LiveRamp brand is still front-and-center. Because companies were already familiar with the LiveRamp brand and they liked the brand and they knew what it stands for.
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