What Happens When You Change Brands?
Wednesday
Jul 22, 2009
I used to frequent the Mocha Blends cafe along Matalino Road in Quezon City. It’s just three minutes’ drive from my house, traffic permitting. And it used to offer free WiFi. In fact, one of the media interviews I had a couple of years ago was held there.
Just this evening, I had to rush to the place to help my dad get his laptop connected for a business meeting. The wife and I were surprised that it was no longer called Mocha Blends, but had rebranded to Eve Cafe. The staff explained to us that the franchise had expired, and the proprietor decided not to renew the franchise (or something to that effect). And so they are no longer able to use the brand, the product line, and other identifying marks.
One would notice that the setting was still the same. The furniture was still the same. The equipment was still the same. Even the staff was still the same. When you connect to their wireless network, it’s still named “Mocha Blends.” But you will notice something terribly amiss, and that is the identity that the original brand carried when the cafe first opened.
Mocha Blends isn’t the most popular coffee shop here in the Philippines, but having done my rounds of coffee places locally, I can say I’m quite familiar with its offerings. I usually order long black (espresso poured over hot water; this is different from Cafe Americano, which is hot water poured over espresso). Wife usually orders their flourless cake, and it’s usually iced tea for the kids. And while we load up on calories and caffeine, there’s that familiar ambiance that you grow with when you visit a place frequently.
I’m a brand conscious person. Not that I value products for the brand name, per se, but I have preferences because of the qualities that come with the brand. For instance, Starbucks’ Cafe Americano is different from Figaro’s Cafe Americano, which I prefer. Smart might have wider coverage, but I prefer the service and convenience offered by Globe. And have I mentioned how much I prefer seven up compared to other soda drinks?
When something rebrands, chances are it’s not only the name that changes. Sometimes, other things go along with the name change. Sometimes it’s good, like when Piltel was merged with Smart to form Talk and Text, which is their cheaper, mass-oriented brand. Piltel was an analog carrier, which was a dying technology, especially in a country ruled by GSM.
It was also good when Islacom was acquired by Globe. Both brands were able to expand their reach and bandwidth share (Islacom being first GSM provider had a big chunk of the licensed GSM bandwidth). Islacom turned into family-oriented Touch Mobile. But then it has more recently turned into mass-oriented TM. Somehow, along the way, the magic was lost, especially to more conservative clients like myself who preferred some premium image with their mobile phone provider.
Most of the time, the change is not bad in itself. But with brand comes marketing power and goodwill. And when you change brands, chances are you would have to rebuild that goodwill. You would need to reestablish your following. You would have to regain your customers. In some cases, you would have to convince customers to stay.
Before you consider rebranding, think hard. Will it benefit your business? Is it absolutely necessary? If you will overhaul your business into something really innovative and exciting, then go for it. Otherwise, if it will mean most costs than benefits, you might want to reconsider.
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