With Toyota’s recall and Comcast’s announcement that they are rebranding themselves as Xfinity I figured I’d take some time and explore the idea of damage control advertising. It’s nothing new. The Emancipation Proclamation was a part of Lincoln’s re-branding campaign; it was his effort to rebrand the war and get public opinion back on his side. It might have started in politics but quickly moved into corporate advertising when corporations like Phillip Morris decided a name change was necessary to get rid of their bad press. More recently some of the major banks have had name changes in an attempt to avoid ongoing public scrutiny. It can work on rare occasions but often times it’s just desperate. (As Shown in CNN’s list of worst rebranding mistakes)
Xfinity came about because Comcast has lost over half a million customers in the last year to Dish network and other satellites. Where they once had a tight grip what goes to your TV., they are letting a lot of customers slip through their fingers. A smart CEO would notice that they have a long list of complaints against them and constant stream of bad PR, and decide they need to make their service better and build a campaign around renewed interest in their customer base like Dominos has. For whatever reason, the management at Comcast decided to blame it on their brand name. A lot of big companies use their advertising companies as scapegoats when numbers go down. A great ad campaign can do wonders but it isn’t magic. If you have competition and your competition is doing what you do better, they’re going to take your business, that’s capitalism.
Damage control doesn’t have to necessitate a name change. Tylenol didn’t change its name despite tons of bad press in the 80s. They focused their PR campaign on improving safety regulations and it turned out well for them in the long run. Coco-Cola only slightly changed their name after the New Coke debacle to Coke Classic and it helped their product immensely and gave them a rejuvenated brand. Ultimately renaming your brand as a form of damage control is at best a quick fix and at worst a Hail Mary, last ditch effort so salvage your reputation. It might spike sales but it isn’t going to fix any problems.
Renaming your brand really only works when you are doing a complete overhaul. When The Nashville Network decided people didn’t tune in to fishing shows 3 times a day they changed their name to Spike TV and focused on a wider range on male viewers. Kentucky Fried Chicken decided they wanted to be more competitive with Burger King and McDonald’s. To hammer home their new direction they officially changed their name to KFC. Bandai Toys recently announced plans for a similar process moving away from creating knock Japanese cartoon action figures and focusing on toys for toddlers. The trick to renaming your brand is to make sure people know it’s a new beginning. Otherwise you are just calling attention to the fact that you are doing damage control.
http://www.reuters.com/article/idUSN0515328620100209
www.broadcastingcable.com/article/447481-Comcast_To_Launch_Xfinity_Rebranding_Campaign
www.huffingtonpost.com/2010/02/04/comcast-xfinity-company-t_n_449088
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How is Dish customer support soooo bad?
I am not sure I agree 100%. But I know that Dish Network customer service sucks! I’ve been upon the phone now almost 30 minutes and I’ve no one in order to complain at other than darn message boards I’m reading. I must obtain a existence
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Hmmm.. now that Ben Stein, Comcast/Xfinity’s appointed “Smartest” man has spoken about the sins and foibles of the low-life unemployed, how many of us do you think will hear about it on cable tv? yeah, i din’t think so either. (“long live the Borg. Resistance is futile…”)
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