Why “Branding” Shouldn’t Get Any Respect
Headline: IHOP will change name to DineEquity, Inc.
“The acquisition of Applebee’s required that we select a name for our company that reflects our company’s core competencies and recognizes our ownership of multiple brands, and DineEquity does just that,” IHOP CEO Julia Stewart said in the release. “Further, DineEquity’s tagline ‘Great Franchisees. Great Brands.’ prominently identifies two of the most important contributors to our success. With Applebee’s and IHOP, we have brought together two great brands, and we are beginning to demonstrate how we are more successful together than we could ever have been apart. Our name change to DineEquity reflects the promise of our newly combined company.”
Two things:
1. One can only wonder (and shudder) at the time and money that went into this momentous decision. (Changing out all the stationary and biz cards alone…yikes!)
Why not keep it IHOP? Who remembers that IBM used to to be International Business Machines?
2. The customers don’t care about “the promise of the newly combined company.” They care about the food on their plate and the service that got it there.
I’ll make you a deal - if you have a wild urge to change the name of your company, I’ll come with a minty, new name - all for a flat bargain rate of - oh, say, $25,000 - and I’ll wrap it in weighty corporate consultant speak. Such a deal!
Or, you could keep the old “brand” and spend the dollars on product development, customer service improvements, or employee benefits.
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Tags: marketing, marketing troubleshooting, brands, branding strategy, IHOP
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May 30th, 2008 at 2:00 pm
[…] MarySchmidt.com - New Mexico, USA Why “Branding” Shouldn’t Get Any Respect IHOP will change name to […]
May 30th, 2008 at 4:47 pm
Aren’t you missing the point? The company is now Applebees + IHOP and this rebranding is for the company brand not the product brands.
It’s not about the customers–let them eat pancake (wherever they want).
It’s about the other stakeholders–the investors, employees and other stakeholders that the company wants to talk to.
Sure they could keep the IHOP name but then Applebee employees might feel like second class citizens and investors might give the company credit for doubling in size.
PS: Not a big fan of the chosen name tho’
May 31st, 2008 at 8:29 am
I’d submit the employees don’t care either. IHOP, Applebee’s…DineEquity. Whatever. As long as they’re treated with respect, have good benefits and paid a fair wage.
But that brings up a good point - wonder if IHOP asked the IHOP and Applebee’s employees what they thought?
Lastly, one of the big problems is that companies think it’s about the investors. That it’s “not about the customers”
It’s always about the customers (and employees are - in reality - actually internal customers.)
Plus, Wall Street keeps close watch on companies, They would notice that Applebee’s didn’t simply “double in size.”
June 1st, 2008 at 3:57 pm
Mary, Mary, Mary,
I agree with Martin. As someone who has just undergone a merger, if you don’t create a name for the new company, the Appplebees employees will feel like second class citizens and it will negatively impact morale. In this case, you’re doing it for your internal customers, e.g. your employees.
It’s been two years, and, in my company, we are still sensitive to this issue. True, we probably need to get over it, but it’s especially hard for people who have years, if not decades of service, therefore loyalty, to the original company to feel slighted if the name is not changed. In our case, it leveled the playing field by sending an unequivocal message that we were looking forward and not favoring one group of employees over the other.
Glenn
June 2nd, 2008 at 10:48 am
Glenn, Glenn, Glenn
1. IHOP, the corporate parent.
2. Applebee’s a wholly owned subsidiary of the IHOP family. Keep their identity, their culture.
As for getting “over it” - I hear ya. But I still believe it’s more what the companies do than what they call themselves.
Done.