Nothing causes more comment and
amusement than when a business decides to re-brand itself. The announcement by
Yellow Pages that it is re-branding all its digital products worldwide to Hibu
has achieved just that.
Now there is a clear difference
between re-branding and re-positioning. Re-positioning is when a business tries
to change what it, or its brands, stands for in the minds of its customers.
Re-branding though is a change of position and also identity and is one of the
most expensive and difficult things a business can do. Local examples of this
are the re-branding of Norwich Union to Aviva versus the re-positioning of
Bernard Matthews.
When Norwich Union wanted brand
uniformity across the world it re-branded its entire business to Aviva. The
universal use of “Aviva”, recognised now as a global group with a common brand,
is testament to what Aviva achieved and the tactics it used to get
there.
Bernard Matthews is still on the
long journey of re-positioning themselves following a range of PR nightmares
starting with Jamie Oliver’s Turkey Twizzler outburst in 2005,. Its actions over
the years, changing to Bernard Matthews Farms and signing Marco Pierre White
show that this is possible but can take time to change public perception back to
being known for product quality and a healthier image.
Brands certainly should evolve over
time or risk being overtaken by competition. Good brand managers know this but
also understand that they are just custodians of brands that often existed
before them and will do after them, our newspapers brands have taught me
that.
For every Aviva though, with good
reasons to take the difficult route, there are many more examples like the Royal
Mail. It lasted 16 months being called Consignia before being forced to change
back to the old name wasting millions in the process.
Yellow Pages is a big business, big
enough to post an annual loss of £1.4billion with debts of £2.2billion. It is
not just the yellow book but an international business who grew through
acquisition (the massive loss caused by a £1.59 billion write down of businesses
in the UK , US,
Spain , China and Peru ).
The change in Yell’s fortunes has,
in the main, been caused by the impact of the internet. It is no longer the
go-to place for directory listings and despite extensive investment in its
online offerings, competition has hit it hard. It has tried to diversify, for
example it now builds websites for its advertisers, building 337,000 for its
clients worldwide in 2011 alone, but clearly this is not enough.
So to break with the past and try to
revitalise its digital offerings, Yell is re-branding all its digital products
across all countries, including yell.com in the UK , to
“Hibu”, pronounced high boo. Products that have spent money and effort building
up brand reputations and awareness are going to be changed. Of course having one
brand across all your international markets and the consistency and savings it
can bring can make sense, see Aviva for that.
But this is a very treacherous and
difficult road to take with few making a successful change. Whether this works,
only time will tell, something Yell is short on. Certainly this smacks of last
throw of the dice rather than thought out strategy in good times. I hope they
learn lessons from those who have done it well as well as those who now
regret.
Tim Youngman is head of digital
marketing for Archant - follow on twitter
@timyoungman
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