Why do companies change their name? Sometimes it’s because there’s a valid business reason, such as a dramatic change in direction, or a sale, such as with WHSmith. They’re keeping the name and most profitable stores (at train stations and airports) and flogging off the significantly less profitable high street ones (for £76m to Modella in case you were interested). And, in doing so, they needed a new name for them so they were no longer connected with the stores they’re keeping. TGJones, coming soon to a high street near you. The new owners are no doubt hoping to build on the similarity and awareness of their original name and branding (it’ll be interesting to see which, if, and for how long, they’re able to use the same branding elements). If they weren't doing that, there’s not a lot of point buying them unless it was for the locations / leases.
For some companies a name changes comes because they’re bored with the old one internally as they see it all day every day (unlike their audience) and want a change for change’s sake or think that it’ll magically solve all their problems. But why would you drop something that all your clients and customers know and recognise, and ditch years – and a large fortune’s worth – of marketing to establish that awareness? The investment firm Aberdeen did just that after 200 years, becoming Abrdn, and was mocked for doing so. Unsurprisingly, three years later the new incoming CEO saw changing it back as a very easy win and a return to common sense. Updating the messaging and aesthetic being a far cheaper and smarter option.
Remember, you’re not the customer and they won’t get bored of your brand anywhere near as fast as you. It’s rarely a great idea to change the name, losing all that hard earned awareness.
— Know your audience
