Skip to content

The Top 8 Reasons for Renaming A Business

[vc_row][vc_column][vc_column_text]Changing a brand name or business name is a significant action to take with serious consideration. Sometimes however it needs to be done, for good reason and it can be fundamental to the success of a business.

There are 8 core reasons to rename a business, in this post we look at each and their underlying drivers along with prime examples of brands that have changed their names as a consequence .

1. The Brand Name has Become Meaningless or Irrelevant

A brand name can lose its meaning or become irrelevant when there are significant changes internally or externally.

Internally this can be due to a company change, a brand story realignment, change in mission, vision, values, or brand promises and culture. Alternatively it can be a change in the product, service or delivery. Each can break the connection with, or create conflict with the name.

External changes can be with the market, technology, competition or a change in demand for the product or service, making the name no longer able to represent the company.

Other drivers within this category are: the name being too big or broad for what the company does; it’s indistinguishable from competitors; or it makes people think the business does something completely different.

3M Pioneer Xerox

2. For Marketing purposes

Unless a business is a monopoly, or creates a new market of its own, marketing is the key to generating a stream of sales. During a businesses lifespan there can be many developments which make it a smart marketing decision to rename.

When the market recognizes a business more by its product brand name than its own, it might be time to adopt it. Similarly when the nickname is more commonly known and used by your market, it might be time too.

With the advent of the Internet, search and domain names are an all important asset for a brand to own. Unavailability of the domain is a concern. A brand needs to be found online, so when others own your namespace, or if when Google searching a brand name returns an overwhelming volume of inappropriate search results, it could be a time to rethink the brand name.


FedEx Panasonic Crayola

3. To Sound Better

When a brand name has an undesirable nickname, is too long and gets truncated to a meaningless set of initials, or is an abbreviation which those newly exposed to it have no idea what they stand for there is a problem. A great brand needs to be easily heard, understood and remembered.

If people have a hard time pronouncing, spelling, or remembering it, changing the name to one that is short, sticky and sounds better could be the best thing.


Starbucks Toyota Subway

4. To Escape a Bad Reputation

When a company publicly goes through legal and/or financial issues, or experiences a sustained wave of bad publicity, brand perception can become irreversibly damaged and negative. This can also happen due to a significant drop in standards, or quality of service and products or delivery. It can also happen due to the degrading actions of owners and leaders.

Once a bad reputation has been addressed and corrected within the company, it may be solved publicly with a new brand name. Doing so can also be a positive catalyst for change in the company culture too, which is the root of the customer experience and fundamental to brand success.


Altria Accenture Academi

5. Business Expansion

Nationalisation or Globalisation of a brand often involves the need to lose any geographic limitations inherent within the current name. These can be language based, or a cultural limitation, difficulty in pronunciation, negative or confusing translations and more.

Expanding into a new region where another company already owns the brand name is very likely to cause legal and marketing conflicts and is a driver for name change. When brands make the move online they sometimes encounter the same issues with the various namespaces including domains and social media profiles.

A different type of expansion that can require a new name is when a company expands its range of sub brands. Creating an umbrella brand name in this instance can create a more suitable impression of size and scope for marketing the full range of brands.


Boeing Nissan Sony

6. Business Pivot

Start-ups and agile companies under smart and responsive leadership, pivot to add new life and profitability to the business. A pivot may be towards new markets, a newer more relevant service or product, newer technology, or to escape a fledgling offering. Pivoting can cause the brand name to lose relevance and require a new name to market the new change.


AppleFlickr Pixar

7. Change in Ownership

When a business goes through a merger, acquisition or consolidation with a stronger brand, they will often adopt the stronger brand name. In many cases an entirely new name is required to create a united brand and culture.

In the case of multiple acquisitions it can be beneficial to create an umbrella brand to trade under. It can create a more suitable impression of size and scope to market the full range of brands.

Corporate restructuring can change the direction of the brand as mentioned earlier in this post. Under new direction and with new processes the culture of the company can be significantly improved. This is often accompanied by a brand realignment and a new more fitting name and visual identity.

A spin-off, a subsidiary of a parent company that has been sold off, is essentially a new company and as such may require a new name and identity. The right new name can create the ideal foundation for marketing as a stand alone brand.


Corus Sprint Delta


8.Legal Requirement

Legal action can be taken against a business to stop using a name due to an existing IP, or trademark ownership in the same marketplace, or when one moves into the marketplace from another region.

This becomes a risk when businesses do not protect their IP by registering it with the appropriate intellectual property governing bodies. It is very important to take these steps into consideration during the naming process as a name may not be a registrable trademark due to the word choice.




What to do if your brand name falls into one of these?

Seek expert help! While you can come up with a name on your own, there are branding specialists that create names for businesses as their primary service. They understand the process inside and out, are quick and skilled at what they do, and are able to see the bigger picture. This means they can create a name for you with greater impact, greater market appeal, and of course one that fits your business like a finely tailored suit. The Sponge is one such branding specialist firm. Call +612 8091 6555 now.[/vc_column_text][/vc_column][/vc_row]

Related Post

Humbling Words From Awesome People

Our brand looks better than we could have dreamed and The Sponge team managed to squeeze so much meaning into it that our prospects really get a sense of how we can help them.
Darren Vardy
Insolvency Options
The Sponge have been outstanding to work with. Their expertise, dedication and outstanding quality of work is second to none. I am grateful for their input into the design of our brand and website.
Matt Malouf
The Fortune Institute
The Sponge truly immersed themselves into our business, our team and our culture to develop a brand that not only captured our essence but more importantly; expressed it to the world.
Mende Seljanovski
Enth° Projects
Love their vision, love their work and mostly love the team!
C. S. Chen
Claytan Australia
Luke and the team at the Sponge are truly artisans of their craft. They're AWARE, they DARE and DELIVER.
Claude Di Ciano
Richardson & Wrench Willoughby
Awesome design. Easy to work with. Jobs are completed quickly. Highly recommended.
Alexander Bont
Great creative proactive company. Could not be happier with the works they both provided and suggested. Now our go to company for branding.
Ross Thompson
JHA Engineers
Awesome company with awesome creativity. After working with them over 2 years, The Sponge has successfully turned me from a happy customer into a raving fan!
Jeremy Chen
Claytan Australia
High level strategic thinking and their creativity makes them stand out. Quick turn around time and reasonable price make them the winner every single time.
Syed Mujtuba
Crescent Wealth
A great vibe and energy brought to every project that The Sponge have led for me. Easy to work with, quick on the uptake of direction and prompt service. Will definitely be using The Sponge again and highly recommend.
Lucette King
NSW Department of Education
The Sponge team are great to work with. They translate your ideas and vision into something real and tangible and they truly want to make an impact to your business strategy with their valuable insights. We have been using them for over 10 years and would highly recommend their expertise.
M Levonian
William, Thyme & Prophet / Report Factory
Luke and the crew at the Sponge helped set up our Corporate image as it stands today. They were extremely helpful and patient. They took the time to understand our business and brainstormed with us some of the essential elements and came up with various images until we were happy with the final one. Can't recommend Luke and his team enough. Thanks again Luke.
Kim Lie Jom
Complete Health Chiropractic
I usually don’t believe in one stop shops, because of the inability to be great across many areas, but The Sponge truly are the one stop shop for brand creation, innovation and lead generation.
Mark Capelin
Tribe Social Fitness
I have had The Sponge involved in several IT based projects over my years working as a Software Developer. Each project has seen results that have exceeded expectations and I highly recommend them.
Shane Wisniewski
Wesfarmers Industrial and Safety
One of Luke’s talents is his ability to move people and organizations from the creative to the innovative, commercializing ideas and inventions.
Rodney Marks
Hoax Speaker
I recommend The Sponge’s services to new and established organizations who are looking to differentiate themselves from the “ordinary” and stand out from the crowd.
Annette Wright
InfoGenesis Pty Limited
The Sponge’s perceptive sensibility guarantees a perfect match between your business and its presentation to the world. They makes your values, ethics, goals, and the 'feel' of your business shine through every aspect of your brand.
Geoff Walker
Sydney Massage Time Pty Ltd
Branding is a familiar concept to comms & marketing professionals like myself. But it’s often a mystery to other staff, and for brand to be authentic, unique and indispensable they all need to be on board. This training helped me clarify branding to everyone in our organisation. Now they’re all part of the brand redevelopment crew, identifying and sharing stories that resonate with our values and purpose. Thanks, Luke, for launching our journey to uncover the brand that ‘comes from within’.
Avril Janks
Communications and Marketing Coordinator
We were in the middle of re-branding and wanted to know how better to market our product including how better to tell our story. This webinar provided practical marketing techniques, and rationale to explain the benefit of this strategy. The 'light bulb' moment for me was making the connection between the power of storytelling and marketing our brand.
Susan Perry
CEO CommunityGro
The Sponge is enabling small business to focus on essential elements of marketing/strategy. I used to go in circles and best guess engagement with customers; I didn’t understand my target market. The Sponge gave me a real wake-up call: To realise how much time and money I was throwing away for no return. The learning was interesting and interactive. Now, I feel in control and focused.
Sue Lea
Timely Business Solutions

We Love Helping Good Brands Grow

When Everything In The Marketplace Has Changed But You, It’s Time To Rebrand.

Working with Us Is Easy.

Step 1:

Book a free consultation

Step 2:

Allow us to craft a plan for you

Step 3:

We’ll implement it together