Why Your Company Name Should Have Its Own Positioning

Most people think of brand names as being distinct from company names. The company name is for 'official' purposes such as tax returns, shareholder purposes, employee purposes etc. The brand name is what is exposed to consumers. So you have company names like Procter and Gamble and brand names like Vicks.

This is a lost opportunity.

Ideally the company name should equal something in the mind of the consumer. And all of the brands that are developed by the company should enforce the company's original positioning. The best example of this is Virgin. Virgin as a company (or group) is viewed as being fun and representing youth culture. So they are able to succeed in multiple industries such as airlines, health-clubs etc.

Another example is Disney. Disney equals kids entertainment. This allows Disney to enter multiple businesses successfully. You could have a Disney Broadway Show, a Disney Cruise, a Disney Movie and a Disney Video Game.

On the other hand, some companies start brands in so many disparate businesses segments that the company name equals nothing in the mind of the consumer. Thus the brands created by the company need to fight it out on their own against other brands. Or they land up creating or acquiring brands in seemingly related segments to the point where the company name becomes undifferentiated.

For example "Dr. Pepper Snapple Group" describes itself thus:
"DPS is the market leader in the flavored carbonated soft drinks category, a key player in the fast-growing ready-to-drink tea and juice drink markets and boasts the leading portfolio of shelf-stable mixers in the industry."

To consumers this is not too different from Coca Cola or Pepsico. So DPS cannot stick in it's name on the label of it's products to gain a competitive advantage.

Ideally, the company name should be so differentiated that a consumer should recognize it and instantly make an association. Even better, the consumer should think of the company name when looking around for a product. When a well-positioned company name is combined with a well-differentiated brand name that sticks to the company's positioning, it becomes a no brainer purchase decision for the consumer. For example, think of Gillette. Gillette equals shaving. Now when you combine a well-positioned name such as Gillette with a newly introduced, well-differentiated brand such as Fusion, you have a star business on your hands.

Note: Large parts of the above post are a result of ideas that were expressed by my friend - Chetan Dhruve.