Was it a genius marketing ploy or a 20-something marketing manager with a gift for persuasion who talked the board into it? The Kraft debacle highlights the fact that choosing the wrong name for a product or business can have a significant impact.
By now you will have heard or read about the uproar over the name Kraft selected for its new spread. You see, Kraft had a problem with Vegemite. Sales have been sliding since they picked up the brand in 2006, especially among new Australians.
Considering that more than a quarter of the Australian population is born overseas - so using Vegemite wasn't an ingrained habit - they had to do something.
Research showed people wanted a more convenience-orientated product, so a new "unnamed" cheesy spread hit the shelves in July.
Kraft held a contest to name it, and has sold three million jars since July. From over 48,000 entries, they picked - are you ready? - iSnack 2.0.
The name was launched in the middle of an AFL football game and the the furore began immediately. The outcry was so strong that Kraft rescinded the name on September 30 and has gone back to the drawing board.
Lesson: Cute, trendy will age quickly. A name has to resonate with the majority instead of a minority. And shouldn't it be apples to apples? Giving a food an internet-sounding name is just plain wrong.
I too made a mistake with the original name of my company. It started as DSM Zander Marketing in early 1999. Ten months later, while talking to top New Zealand web designer Dave Blyth, I lamented: "Why am I not getting any internet work?"
"Debbie," Dave said, "you should name your company to highlight what you do." That simple statement struck like a lightning bolt. DSM Zander was an amalgamation of the names of our six children.
It had nothing to do with what services I provided. I renamed the company Successful internet Strategies. Today it has morphed into the broader SuccessIS.
Lesson: Business is about your customers, not about you. It makes infinite sense to have, as Dave suggested, names that help people understand how you can help them.
How many business owners create a name as I did? A name which has meaning only to themselves, a name so obtuse it took three paragraphs to explain the concept, or a name that doesn't make immediate sense or is downright confusing?
Dave's advice stuck with me and I've often passed it on. You can call me unpatriotic or undiplomatic, but I've always told Maori business owners not to select Maori names for their companies.
Why? If they want to use the internet to expand their business internationally, it will be a barrier. While the Maori word will hopefully be known by all domestically, and maybe, if they're lucky, in Australia, will it be known elsewhere?
If they need to be found by their target American or European audience, how can these prospective customers search online when the keywords needed are in a language they don't know?
In July, while running a database marketing workshop in Queensland, the issue came up again. One of the participants came from a general medical practice. We were talking about filling their appointment books, websites and search ranking.
Caren lamented about the company not getting much business. "What does your company do?" I asked. "It's a natural health and therapy practice incorporating services such as acupuncture, homoeopathy, sports injury therapy."
"What is the name?" I queried. "Psychological and Rehabilitation Services," was her answer. Every single mouth in that workshop dropped open incredulously.
A discussion followed, covering several internet marketing strategies. Every person in the group strongly suggested a business name change. Two months later they have incorporated the advice.
They also changed their business name to Integrated Work Health. The website is getting a fantastic response with many referrals coming in. Most pleasingly, they're now booked solid.
Lesson: Don't let your business name "talk technical".
On a positive note, as I was walking out of a meeting with Adaptive Solutions last Friday, I asked managing director Duncan Cox: "How did you come up with your company name?"
I was interested as they have a very specific business providing software and ancillary services that integrate back office processes such as planning, manufacturing, distribution, shipping, and accounting into a single software system.
"When we were looking through the Microsoft Dynamics AX software brochure, we tried to come up with a word that would describe what it does. We felt Adaptive fit perfectly," Cox said.
Four more considerations when naming a company or product:
* Does it identify the business with the owner? If so, it could prove troublesome if the business fails or they want to sell it. Think Mike Pero. He's moved on to flight simulators but the mortgage business still needs him for branding.
* Location or specific product names. Doesn't it just niggle when you see Queen Street Kebabs in other locations? What if they want to add hamburgers?
* Does it lack a unique identity?
* Would it be unlikely to receive much protection under trademark laws?
Debbie Mayo-Smith is a best-selling author and international speaker.
Website for Motivational Speaker Author Debbie Mayo-Smith
