|
|
The
merits of change
|
|
The
Brand Reporter met three analysts for their opinions on: changing
a successful brand, the issues that a brand migration needs to address,
the implications and the Hutch-to-Vodafone transition. Here�s what
they said. |
|
|
Meeta
Malhotra
(Director, Brand Identity, Ray + Keshavan)
� In today�s globalised world, it makes no sense to have different
brands in different geographies unless there are compelling
cultural reasons.
Vodafone�s decision to re-brand Hutch makes perfect sense.
It allows the company to put all
|
its muscle behind one brand globally and maximize the return
on investment from brand building efforts.
� The first and most obvious one, of course, is to retain
customers and migrate equity from the old brand to the new
one.
Moreover, it is critical to create awareness and ensure that
no customers are lost because of confusion. Next, the new
brand needs to build salience for itself as rapidly as possible
so that it retains customers and redirects their loyalty.
� Brand migration would differ depending on the category.
The wider the consumer base, the more effort the migration
initiative demands.
Again, when you have hard-to-reach audiences, say in rural
or remote areas, you need to ensure you have taken cognizance
of the best ways to make them aware of the change. Traditional
mass media may not work. Migration of a product to another
brand also requires information at point of purchase level.
� The use of the pug to maintain continuity with Hutch is
an excellent strategy.
When you are making a switch-on, switch-off kind of transition
as Vodafone has, a big splash is the only way to go.
|
|
|
|
Samit
Sinha
(Founder, Alchemist Brand Consulting)
� Once in a while, a company may decide to adopt a new name
(UTI Bank to Axis Bank, for instance) when it feels that
the old brand name has more undesirable associations than
desirable ones.
|
�
If the intention is to distance itself from the erstwhile name
and most of its associations, nothing brand-related should be
considered sacred.
The real strength and value of a brand is its ability to occupy
a unique space in the minds of its stakeholders. For this, all
the key relevant associations need to transfer to the new name.
� In a service business, ensuring continuance in the quality
of service and the consumers� interactions with the brand is
vital. In a product business, both functional and psychological
benefits delivered by the product will need to be maintained
to quell anxieties.
� The Hutch-to-Vodafone exercise has been a great example of
how to manage a transition as opposed to, say, Indian Airlines�
abortive transition to Indian before merging with Air India.
What has been impressive about the Hutch-Vodaphone transition
has been the speed and scale. Not just the media blitz for the
change but the replacement of the old with the new at almost
all consumer touch-points.
The lesson that one learns from here is that once change is
inevitable, it should be executed quickly, decisively and fully.
|
|
|
|
Francis
Xavier
(MD, Francis Kanoi Marketing & Planning)
� Wise or otherwise, in this case, the brand Hutch was changed
to Vodafone for compelling reasons. Vodafone bought a majority
stake in Hutch and they had to re-brand it to be in line
with its global standards. Hutch belongs to somebody else.
|
�
Any brand migration has to be dealt with in the same way as
a brand launch. Creating a brand identity, reaching the target
segment, creativity, persistence is crucial.
� Brand migration becomes complicated when it is a mass brand
such as �Lifebuoy� or any other low involvement brand. The audience
in this case is resistant towards change.
In the case of Hutch, the audience is receptive to communication
and Hutch has a higher profile of customers who are more aware.
Hence, it is relatively less complex.
The brand may have undergone a number of changes but who remembers
the other changes? Less than 10 per cent people actually recollect
the series of changes that this brand has undergone. In fact,
that is the case with any brand. It is because these changes
are spread across time and nobody really remembers them after
a point.
� What Vodafone made was a �nice� campaign. Although, I believe
many other creative and strategic ways could have been employed.
But they made a good effort. The deal they struck with STAR
was news-making, but I doubt how much of a difference one day
would have made. |
|
|
|
|