Why you NEED a GREAT name

Look in Forbes Magazine or The Harvard Business Review and you’ll see that GREAT companies, with GREAT NAMES dominate the landscape and earn MILLIONS of dollars.

Is that a coincidence? Of course not!!

The likes of Nike, Sony, Coca-Cola, Apple have hit a winning formula:

Superb Branding + Astute Leadership = Million Dollar Rewards!
Don’t underestimate the value of BRAND in this formula.
Don’t get stuck with a mediocre name because you believe a branding MYTH…

MYTH: The business NAME does not matter, quality products and service will make my business a success.

While this was true in years gone by, the rules have changed. With the advent of the internet the most important marketing decision you can make is what to name your business, service or product.

Customers are exposed to millions of brands through search engines, and there are no colors, styles or logos to guide them. Your prospect is presented with a list of names – and they choose the one they know, trust or simply like the best…

So, your name had better be great!

To really understand the power of a name, take Starbucks as an example.The company was founded in 1971 when three academics opened a coffee house. Believe it or not, the quirky name was derived from the classic novel Moby-Dick. The owners liked the name “Pequod” (the ship in the book), but thought “No one’s going to drink a cup of Pee-quod!”. Brainstorming the idea led to Starbuck, the Pequod’s first mate – evoking the romance of the high seas and the seafaring tradition of the early coffee traders. Neat.Fast forward to 2010 and Starbucks was the largest coffee company in the world, with 17,009 stores in 55 countries. Over 8,000 of these Starbucks were in the US alone, dominating the market while their top 4 competitors lagged woefully behind – Caribou Coffee (322), Tim Horton’s (292), Coffee Bean & Tea Leaf (213) and Coffee Beanery (200).Why the big difference?

Do you really think that Starbucks sources, roasts, grinds and serves its coffee beans in such a special way that the product itself accounts for over 7,500 extra coffee shops in the US alone?

I don’t think so!

Now, I’m not saying that name solely is responsible for Starbucks success, but just consider how the other coffee chain names make you feel…

For most people a great coffee is a treat in their day, but do the names “Tim Horton’s” or the “Coffee Beanery” conjure up an escape from the mundane? Or evoke any emotion in you? Any desire? Not for me…. I’m sure their coffee is great, but you have got to admit – “Starbucks” is a name with attraction and panache.

 

MYTH: Any name will do for now, I’ll get a better name
once the cash flow starts.

Stop right there! We are no longer talking about new signage on the high street. In this global online economy we conduct business without borders. The number one commodity you have is trust – don’t throw that most precious asset away by changing your name!

Get your name right from the start, or regret it forever.

There are a million definitions of “brand”, but this simple one rings true to me “the brand is the soul”. And that soul is out there for everyone to look into. It is no wonder then, that when your company tries to change brand it encounters resistance from loyal consumers – who after soul-searching decided to associate with your original brand…

Take Nike as an example. Globally, several athletics companies crack the $1 billion dollar barrier in footwear sales, but only Nike and Adidas bring in more than $5 billion.What are they doing right, that others are doing wrong?Well, take a look at one of Nikes less successful competitors, Creative Recreation.Have you ever heard of Creative Recreation? No? Their name comes from their philosophy – CREATIVE: Characterized by originality and imagination & RECREATION: A refreshment of one’s mind or body through activity that amuses and stimulates play. Their words not mine…

They would love to challenge Nike for the top spot, but are hamstrung by a truly awful name!

I’m pretty sure that even they know their name choice was rash – as their current branding is split between 3 distinct personalities “Creative Recreation”, “CR” and “cr8rec”. Sometimes all three variations are used in the same online page!

No matter how strong the “Astute Leadership” side of their formula is, we will take some persuading to buy into “Creative Recreation’s” dysfunctional soul!

If only they could turn back the clock and work a little harder on that name…

 
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