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Now then, I don’t know about you, but I was rather blown away when the former President of HP told investors, including myself, on a conference call that they were going to sell their PC division, or perhaps shut it down. Yes, I know IBM decided to get out of the lap-top business with their “Think Pad” and sold the brand name to the Chinese company Lenovo, and yes, that seemed to work for them.

Still, for HP it’s a really bad idea. When my father was growing up they lived next door to the Packard’s home in Palo Alto, and the founders of HP were very solid individuals with a strong vision of what the company should become. If you doubt this, read “Built to Last” by Collins, a professor at Stanford Business School.

Okay so, anyone who owns an HP computer is very likely to become a brand loyalist over time, and thus, buy most of their products from HP, how do I know this? Well, I am one myself you see. I also own a number of their computer peripherals, such as scanners, fax machines, copy machines, etc. Any time I go to buy a computer product, I always look for HP first. No, I’m not an Apple fan, because I think their products are overpriced, and I don’t identify with their brand name.

There was an interesting article in ComputerWorld on October 27, 2011 titled; “HP to keep PC division, rejects spin-off idea – Whitman rejects path set by former CEO Apotheker,” by Patrick Thibodeau. The article stated;

“Whitman categorically rejected a plan from former CEO Leo Apotheker, to sell or spin-off the PC division. HP said it conducted a “data-driven evaluation” of the impact of cutting off its Personal Systems Group (PSG) and concluding it was just too important to its supply chain, procurement, and overall brand.”

Now then, Meg Whitman is absolutely correct on this, and I just can’t believe that HP would even consider getting rid of their PC line, so I am pleased to see Whitman taking the proper leadership role here to maintain the HP Brand. In preparing this article, I did little research and I have been clipping articles on this topic and reading all there is about it I would also recommend to you that if you are interested that you go back and read the same articles;

1. New York Times “Ouster of Hewlett-Packard CEO Expected – And Companies Value and Stock Price Have Plunged” by Quentin Hardy and Nick Wingfield, September 22, 2011.
2. Wall Street Journal “HP’s Customers Backing Off” by Ben Worthen, September 2, 2011.
3. WSJ “The Board Is HP’s Chief Problem” – September 22, 2011
4. WSJ “Crisis Unfolds at HP over CEO” by Ben Worthen and JoAnn S Lubin, September 22, 2011
5. WSJ “HP Defends Hasty Whitman Hire” by Ben Worthen, Justin Scheck, Joann S Lubin, September 23, 2011.
6. WSJ “Whitman Takes Charge – Newest HP CEO Tries to Reassure Staff; Promises to Evaluate PC Business,” by Ben Worthen, September 24, 2011.

Did you know one of the big questions in psychology is considered to be; “Will You Be There for Me?” In other words this is something that humans ask of other people in their personal relationships, families, and is a key decision factor when humans make a decision to support a brand name, or buy a product. If HP jumps out of the PC business after selling tens of millions of laptops and computers, along with hundreds of millions of computer peripheral devices, then basically what they’ve done is they’ve answered that question in the negative.

If they stop making these products they would have basically told the consumer that; “our company can’t be trusted, and that we are not going to be there for you in the future.” Now I realize that the former CEO of HP had come from SAP which is primarily an enterprise software company. And he reasoned that HP makes more money in the software business segment, than they do on the peripherals and PCs – sure, yes, I see that, and yes that makes sense, they make more money as a percentage of the sale of those items.

But why are we comparing apples and oranges? Before retirement I was in the car wash business, and the percentage of profit we made washing cars as a service business certainly wasn’t the same as we made if we sold products for cleaning cars. But for us to have either of those businesses, we needed both sides of the equation. If we all the suddenly stopped selling either the products or the services, we would be letting down our customers who have grown accustomed to our brand name.

It is absolutely amazing that the former CEO of HP didn’t realize to strength of “the HP legacy” or what their products mean to the most loyal brand followers, not to mention their loyal employee teams in the various divisions of HP. You see, to make that level of a mistake in business is really scary. Now that’s not to say that a company shouldn’t shake things up once in a while change the way they do things, surely they should, but leaving your customers high and dry is quite another thing indeed.

HP can recover from this poor message to their customers under the leadership of Meg Whitman. I hope you will please consider this case study in brand name management.

*Note: Last minute references in the news, at time of printing affirming the observations herein:

1. Bloomberg Business News, HP’s Whitman Starts CEO Tenure by Unwinding Apotheker’s Criticized Moves,” by Aaron Ricadela, October 28, 2011.
2. Wall Street Journal, “In U-Turn, HP Will Hold On to PCs” by Ben Warthen, October 28, 2011.

What benefit could a business gain in coming up with a remarkable product name? If you promote a product that really sells, giving large profits and creating quite an impact to millions of clients locally and worldwide; perhaps your business strategy is working best for you. Product branding was efficiently instilled aside from the quality you produced. Apparently, product naming is just one aspect of Product branding. There are many phases to still consider like:

The Branches of Product Branding

1. Conceptualization (consider the objectives as well)

2. Total Image/outlook of the product

3. Packaging

4. Positioning, designing and sizing the business logo

5. Marketing Activities (for your targeted market)

6. Existing Patronage

7. Beneficial attributes of the product

8. Innovative ideas

9. Linguistic strategies (consider language barrier and cultural differences)

10. Trademark security & protection

Being aware that Product branding is a discipline applied in building a name for your company’s product. Consider the fact that when a company more often produce products of great quality and satisfaction; chances are that the same kind of people will patronize more and more of the brands of products you produce. Because you have created a sound image, people tend to be impulsive of any product your company will produce in the future. This is where the Product branding task becomes less difficult. A dependable product brand maintains customer’s loyalty in years to come. It is also believed that a stable customers’ patronage lessens the overhead costs of any business when we speak of promotion and advertising. Whereas, for those businesses that just entered the competitive market, it would take a period of time before they can come up with a rightful, striking product name to create an image in the world market.

Four Categories of Product branding:

a. Descriptive

These are the type of names that describe a product’s feature, characteristic, appearance, ingredient or even geographical location.

Example: Florida Orange Juice, Philadelphia Cream Cheese

b. Suggestive

This product naming is so commonly used, it hits business to consumer with more impact through directly hinting the key features of the product, stating the benefits up to describing the image of the company. A suggestive name simply implies all the positive associations of the product to the consumers. Some metaphoric quotes are even adapted to create a slogan which is but an effective way to attract and convince clients.

Example: Kellog’s Nutri Grain, Bounty Paper Towels

c. Arbitrary

This technique in naming a product do not directly or literally describe the product, its approach is not really adapted from any product’s feature, description or benefits. The names can be composed of natural or coined words.

Example: Apple Computers (Steve Jobs’ favorite fruit, and that he had worked in an apple farm before becoming a billionaire in computer world)

d. Fanciful (or coined names)

These Product branding names seemed completely made-up, often perceived as a current phenomenon but scientifically not proven to be true yet; often referred to as neologism. These fanciful names have already been long established, approved and accepted.

Example: Kool-Aid, Crayola,

Product branding plays a vital role in attracting buyers and users alike. Some product names already became an icon for a specific product line. It is well accepted by the society that brand names that are meaningfully coined are more effective to create an impression to consumers. However, Descriptive and Suggestive names created the exact meaning for the targeted market because these names are mainly composed of natural English words that can work alone or through combination that can also create in the formation of a unique abstract name or the literal counterpart.

Commercial brands don’t exist in a vacuum. Their products and processes affect people and places all over the world. And under the slightest scrutiny, most producers fall short of being model citizens. In order to hide behind a mask of good intentions, many companies divert your attention by changing the conversation. In today’s world, consumers are no longer fooled by vague promises or fancy websites. Brands themselves must embody social responsibility and that embodiment must involve action more so than words or slogans.

In determining just how to make a brand the embodiment of a good citizen, it is helpful to look at a brand that has not just succeeded at being a model citizen but built their entire business around it. Apolis Activism is that brand. Instead of hiding behind layers of marketing, they embrace transparency. Founded by three brothers in Los Angeles, California, Apolis (Greek for “global citizen”) creates clothing and gear with an unwavering commitment to social responsibility. Their philosophy of ‘empowering people through opportunity rather than charity’ is woven through the entire supply chain, spelling out exactly who they work with, place of origin, types of materials, and economic effect.

Instead of just having a website that discusses their concern for the world’s poor and some flashy marketing illustrating their commitment to “responsibility,” Apolis actually involves the very people in developing countries whom they are trying to help in the creation of their goods. In Nepal alone, the company employs fifty people through their partnership with the Citta International Co-Op, an NGO. This is brand citizenship at its finest that is only achievable through a sincere commitment to a cause based on a desire to help rather than simply a method for driving sales.

While this type of business model may not be appropriate for all brands, the key lesson that any brand should take from Apolis is that consumers seek out genuine social commitment in brands. With marketing firms across the world looking to leverage social responsibility for profit, consumers are both more skeptical and more sophisticated than ever when it comes to determining which brands actually care. Keeping that in mind, in order to be taken seriously as a good citizen by consumers, organizations need to pick something they truly care about and get involved. Whether it is helping people in Nepal gain employment or simply helping the homeless in your local area, as long as a brand can be authentic in its efforts, consumers will notice. In turn, they will develop a loyalty to your product that no amount of empty social responsibility rhetoric could ever hope to match.

About the author:
Craig Johnson is the chief strategist and co-founder of Matchstic, a premier brand identity house. His Atlanta branding agency helps organizations create passionate brands that are memorable, relevant, and lasting. Specializing in brand development through brand strategy, positioning, business & product naming and brand identity services, Matchstic’s brand architects forge positive change and accomplish business objectives through creative thinking and smart design.

It seems that Aesop was on to something when he wrote his fable, “The Boy Who Cried Wolf.” In an age where advertising is generally considered the background noise you fast forward on your DVR- marketers everywhere are struggling with one glaring consumer need: believability.

Companies and brands have for too long “cried wolf” to consumers. Banks tell us they want to be our friends, actors tell us they are really Camry owners, and that we should buy one too, chain restaurants tell us their food is ‘garden-fresh, and toothpaste brands pitch ‘whiter teeth.’ Frankly, consumers just don’t believe any of it, and why should they? Brands are all saying the same thing and those that try to say something different often fail to deliver. Years of over-saturation and under delivering have turned consumers off to the notion of being sold.

In order to be heard, brands must do one thing very well: differentiate. Muhtar Kent, Chairman & CEO of the world’s largest beverage corporation, put it this way, “A good brand is a promise. A great brand is a promise kept.” While Mr. Kent uses the word promise, in my career, I have grown to prefer the term reputation. Building a great brand reputation is achieved through the use of influence in the marketplace. While not something we can control directly, influence can be achieved through four main objectives:

1. Authentic customer engagement: Engaging consumers in a way that comes across as sincere and believable is the first step to creating a solid reputation. Whether through social media, sit down meetings, or customer service, show the consumer that you are interested in them for more than what they bring to the bottom line. In my branding firm, we use our blog as a way to engage customers by providing what we see as valuable information that would be of interest to them as they build their brands because we sincerely want them to succeed.

2. Delivering real value: A firm should seek to add value in whatever space they are present. Going back to the social media example, I have seen countless Facebook pages from companies who have a high number of “friends” but who offer nothing of value to their customers. If, instead, these companies posted informative articles or case studies that educated and helped their customers, their Facebook page would become a thing of significance in the marketplace and in turn help to build their reputation as provider a value.

3. Core needs addressed: Companies often need to step back and determine if they are addressing the core need of their consumer or simply selling a product. The success of Kodak and failure of Polaroid is a perfect example. When digital cameras first started coming on the scene, Kodak knew they were addressing the core need of preserving memories rather than simply making film. They responded appropriately to the shift in the industry by manufacturing digital cameras and digital photo frames. Polaroid, on the other hand, did not understand that core need and instead maintained that they were in the business of manufacturing instant photo cameras. As a result, Kodak continues to be a presence in the lives of consumers while Polaroid languishes in obscurity.

4. Customer delight: This objective is placed last for a reason. If you fulfill the three prior objectives of reputation building, you will have customers who are delighted to do business with you and return time and time again. The delight comes not only from the fact that you sincerely engage them or address their core needs, but also from the fact that because of those things you actually kept the promise of your brand.

Maintaining your reputation as a brand is imperative in keeping consumers focused and loyal to your firm or product. The world today is filled with brands that have failed to maintain their reputation and in turn have been put out to the proverbial pasture. Fortunately, however, by following the four objectives mentioned here, you can cut through the false wolf calls and make sure that your voice is heard.

About the author:
Craig Johnson is the chief strategist and co-founder of Matchstic, a premier brand identity house. His Atlanta branding agency helps organizations create passionate brands that are memorable, relevant, and lasting. Specializing in brand development through brand strategy, positioning, business & product naming and brand identity services, Matchstic’s brand architects forge positive change and accomplish business objectives through creative thinking and smart design.