Why Do Brands Change Their Names?

Ever wonder why brands change their names? Perhaps you’ve grown accustomed to referring to a company by the only name you’ve ever known and then the name changes, seemingly out of the blue. Organizational name changes are rarely random.

Most organizations and brands spend considerable time and resources considering or undergoing a name change. But why does this happen?

Here are four reasons brands may change their name:

Merger or Acquisition

When an organization or company merges with another, they may change their name. Perhaps each entity had a unique specialty and are in need of a name that best represents who they are and what they do. In the cases of acquisitions, the company purchasing another company will require that company to take their name. Think of banks. When banks expand into a region, they can build a brick-and-mortar location in that new location, or acquire banks that are struggling. The same happens with other businesses. If they are sold, the new owner will require a name change.

The current name doesn’t accurately convey who the company is or what they do.

It is not uncommon to launch a business and then that business evolves. Perhaps the initial offerings of the business or organization have shifted and the existing name is tied to services the entity no longer offers. In situations such as this, a name change is warranted. Another reason organizations may change their name is if their research suggests that the current name is limiting. Let’s say the company offers electrical and plumbing services but the name says A.C. Electrical. To attract plumbing customers, the organizational name should include the word plumbing.

The name is too long or too difficult to say

If an organization or company’s name is too long, they may elect to change it to something that is easier to say. If a company name is too difficult to say or not sufficiently catchy, its board and customers may recommend a name change.

The entity is trying to escape reputational harm or a negative brand

Let’s face it, not all name changes are in service of aligning mission and organizational name. If a company has a negative reputation or experienced a major crisis, they may seek to change their name in an attempt to manage souring public sentiments. Presently, media mogul Sean ‘Diddy’ Combs is in the news for bombshell allegations of sexual abuse, sex trafficking and racketeering. When I think about the decades’ long allegations against him, it makes sense to me that he changed his name so frequently. He has been referred to as Puff, Puff Daddy, Diddy, and Love. I often wondered why he changed his name so often. Now I wonder if he was seeking to change his image and correct decades of misbehavior. But Combs is by far not alone. 

The Livestrong Foundation was formerly The Lance Armstrong Foundation.

It changed its name after Armstrong, a seven-time Tour de France champion, was accused of using performance-enhancing drugs throughout his professional career.

Armstrong was later stripped of his titles and banned from professional cycling.

What happened when Philip Morris changed its name?

Tobacco maker Philip Morris changed its name to Altria in 2003. Wall Street 24/7 explains the name change this way: “Philip Morris, maker of brands like Marlboro, changed its name to Altria Group Inc…on the same day that the company was cleared of responsibility in a wrongful death case. The move had been planned since 2001.

Philip Morris claimed that the name change was intended to emphasize that the company sells a wide array of products, in addition to the famous tobacco brand, but the assumption for many is that the move was largely to disassociate the company from its controversial product.

An anti-tobacco group, Intact, called the plan “a PR maneuver meant to distance the corporation’s image from its deadly business practices.” The tobacco units, Philip Morris International and Philip Morris USA, kept their original names.”

The next time you hear about an organization or brand you’ve patronized changing their name, it might be worth asking why.