WHAT iPAD MEANS

Apple’s iPad tablet device is shipping April 3 and already it’s looking like another hit for Steve Jobs…yes, in spite of initial reaction to the name.

I must admit, I am bemused by the continuing name controversy. Admittedly, for women of a certain age it is entirely understandable they would connect the word ‘pad’ to a hygiene product in free association. In context, however, that association would be drastically minimized.

When we speak of launch pads, legal pads, bachelor pads, ink pads or pad locks we know exactly what is being referred to. There are no jokes, snickers or shudders when someone asks for a note pad. In such contextual instances, association of the word ‘pad’ to a feminine hygiene product is not only unlikely, it is perverse.

So it will be with the Apple iPad. It will come to mean the computing platform of the future without anyone blinking an eye (see Walt Mossberg‘s comments in the Wall Street Journal).

In naming, context is everything.

Oddly, the prevailing negative views about the iPad name are coming from men. For some reason have assumed the banner of female disdain and just can’t get beyond the tampon. How their minds work is a matter for them and their psychologists.

To Xfinity, and beyond: The new laws of naming

Newspapers and magazines love lists. They are easy copy, as they need little or no research apart from the elicitation of a few expert opinions on the subject in question. And readers love them, if only to disagree.

Time magazine has a whole section on its website devoted to Top 10 lists. It includes compulsively irrelevant topics such as the Top 10 Internet Blunders, and the Top 10 Things You Didn’t Know About Hanukkah.

This week Time rushed out a list of the Top 10 Worst Corporate Name Changes in honor of Xfinity, the new name from Comcast, the cable company, for its service offerings.

In a rush to judgment Time put Xfinity at the top of the list that included Accenture, SyFy, Consignia, Xe, Altria, WWE, Spike TV, AirTran, and the Willis Tower.

It’s a curious list. The criteria seems to be that if a name change is in any way controversial, then it’s bad.

Take the Willis Tower in Chicago, for instance. It was the Sears Tower for decades, a famous Chicago landmark. Unfortunately, Sears is not the company it once was and the building has been acquired by Willis Group Holdings, a London-based insurance company. Willis, understandably, wants its own name on the building. It has upset Chicagoans no end, but all’s fair in love, war and naming rights. When it comes down to it, why is Sears a better a name for a building than Willis? Nothing more than familiarity and a large dose of sentiment, I would say.

The map of the world in my school atlas was mostly pink, denoting the reach of the British Empire. Back then, Mumbai was Bombay, Beijing was Peking and  Zimbabwe was Rhodesia. The world moves on. It disturbed me more when San Francisco’s legendary Candlestick Park became 3Com Park, which then became Monster Park before the city mandated that it shall be Candlestick Park for ever more.

Spike TV is on the list because Spike Lee claimed that people might connect the TV network with Spike Lee. He won an injunction to prevent The National Network changing its name to Spike TV. The case was settled soon after in the network’s favor. Case closed.

How does this minor spat warrant Spike TV’s inclusion on Time magazine’s Top 10 Worst Corporate Name Changes – because Spike Lee was upset?

The World Wrestling Federation (WWF) had to change its name to the World Wrestling Entertainment following a disagreement with the World Wildlife Fund, so WWF became WWE. What’s the problem?

Andersen Consulting was required to change its name as part of its acrimonious separation agreement with Arthur Andersen. Accenture is not a lovely name, to me it sounds like a sneeze, but to say it was “regarded as one of the worst rebrandings in corporate history” is stretching it just a bit. Accenture today is very successful, unlike its misbegotten counterpart at KPMG that became BearingPoint. It sank without trace and filed for bankruptcy in 2009. And not to forget PwC’s consulting arm, which was primped and dressed as ‘Monday’ by Wolff Olins before IBM came along to save the day. 

Consignia is rightly on the list. Its sin was not so much the name itself, as naff as it was, but the ineptitude with which the proposed change was handled. Renaming a British institution like the Royal Mail was always going to be highly controversial. Well, controversial it was. And the name became the focal point for torrent of fear and loathing that eventually sank it and the CEO of the company.

Consigned to the scrap heap

Which brings us to Xfinity, the name that clearly inspired Time’s hastily compiled list in the first place.  The negative energy around the introduction of Xfinity seems to be generated by a perception of poor service from Comcast.

William Lozito of Strategic Name Development says Comcast is “trying to put lipstick on a pig” by instituting a name change as a way to cover up service complaints.

But things are changing at Comcast. It recently acquired a majority stake in NBC Universal for $13.75 billion, giving it control of the Peacock network, an array of cable channels and a major movie studio. Advances in broadband digital technology also mean faster Internet speeds and more high-definition channels. The acquisition puts Comcast in the position of being both a content producer—through NBC and its subsidiaries—as well as a media distributor.

This is a long way from what the traditional cable company offered. As lazy and clichéd as the name Xfinity might be, it is the beginning of a campaign to convey this new world of myriad content and delivery quality, and change minds about what Comcast is. Whatever Xfinity may remind people of today, Comcast is going to spend a huge amount of money to get that brand to mean what it wants it to mean.

Today, naming is as much about PR strategy as it is about brand strategy. Accordingly, I offer these Seven New Laws of Naming:

1. All name changes of any consequence will be controversial.

2. Controversy is good for newspaper articles and circulation figures. There will always be people who don’t like a name change for whatever reason, and reporters will always find them for a quote. Be prepared.

4. New names will always remind people of something more familiar to begin with. They have to be given a context in which to understand the name.

5. People will get used to new names over time as long as they are free from negative connotations that can not be overcome (plain dumb names not withstanding).

6. Corporate name changes are politically charged. They have to be managed aggressively and proactively.

7. Social media is important. The urls xfinitysucks.com, and xfinitysucks.org are not available. Someone at Comcast is thinking ahead.

Coinstar, Amazon and the entrepreneur’s naming trap

What has the name ‘Starbucks’ got to do with coffee?

Apart from now being the name of the world’s largest coffee chain, it has absolutely nothing to do with the dark, bitter brew.

The company was named after a minor character in Herman Melville’s book ‘Moby Dick’. As anyone who has read the book can testify, Starbuck drinks not a drop of coffee. According to the Starbucks website the founders considered naming it after Captain Ahab’s boat, the Pequod, but minds were changed when a friend tried out the tagline, “Have a cup of Pequod.” Starbuck was the fallback choice.

“Customers must recognize that you stand for something”, CEO Howard Schultz once astutely observed. The Starbucks brand and business is built around his vision of recreating the Italian coffee bar culture in the US, not the commodity product.

How important was coffee to Starbuck’s success? Essential. It gave the business an early focus on the culture of coffee and a ‘known for” brand. Today, the brand has widened into that of a place to relax, meet and work.

Stores sell many things apart from mocha frappuccinos  — packaged food items, hot and cold sandwiches, mugs and tumblers; select “Starbucks Evenings” locations offer beer, wine, and appetizers. The point being the name has the necessary flexibility to grow with the business.

There’s an important naming lesson in that observation for every entrepreneur.

They have a great idea for a new product; they reason, not unnaturally, that the product is the business and the business is the product and, therefore, the name of the product becomes the name of the company.

College graduate student Jens Molbak had a great idea for all that loose change we accumulate in jars.

The bank won’t accept coins unless they are sorted and rolled. He came up with Coinstar, those green vending machines you see in supermarkets where people dump their change and receive dollar bills. Coinstar takes a percentage.

A nice idea, and a very nice business. The company has processed more than 350 billion coins in its nearly two decades of operation.

In 2009 Coinstar came face-to-face with the limitations of its name when it acquired Redbox, the DVD rental company. Molbak realized the future of the business is really about dispensing machines, not coins. Coinstar is a limiting name for a business that wants to expand beyond coins.

The company changed it name to Outerwall to better reflect its evolving lineup of automated kiosks and is now a multi-national provider of services for the front end of retail stores, including bulk vending, prepaid products (gift cards), money transfer, automated DVD rentals via Redbox and coin counting.

Business focus is essential, but when it comes to corporate naming entrepreneurs need to think beyond the product and ask themselves the question, ‘What business am I really in?’ Changing a company name just as the business is hitting its stride is disruptive, expensive and unnecessary with a little forethought.

MP3Car faced a similar dilemma.

The company traces its roots to a worldwide online community of geeks in the 1990s who installed personal computers filled with electronic music files, or MP3s, in their cars. Along the way, MP3Car’s engineers developed increasing expertise in building and integrating mobile computers and started consulting and selling computers to companies and government agencies.

“MP3Car.com is obviously a misnomer at this point,” said CEO Heather Sarkissian in a 2009 interview with the Baltimore Sun. “It’s a very well-known brand. However, it is very confusing to our [business-to-business] enterprise customers.”

The name was a stumbling block for potential clients and even investors.

“One investor thought all we do is put MP3 players in cars,” Heather Sarkissian said in the interview. “He told us we’d be out of business in two years. … I had to explain to him what we really do.”

MP3Car tried to save money by doing its renaming and branding itself.

“I’m telling you, it’s all been thought of. … It’s crazy,” she said. “This has been an incredible challenge.”

So much so that the company seems to have abandoned the attempt.

Jeff Bezos wanted anything but a limiting name when he founded Amazon.

It was very nearly called Cadabra, as in “abracadabra” – the word magicians use when performing a trick. His lawyer apparently misheard the word as “cadaver” so Bezos instead named the business after the river, reportedly for two reasons: one, to suggest scale – Amazon.com launched with the tagline “Earth’s biggest book store” (a great value proposition) –  and two, back then website listings were often alphabetically before Google came along.

On it’s march to global retail hegemony Amazon has helped to put retailers Borders Books, Tower Records and Blockbuster out of business.

Books now represent a tiny fraction of its revenues. Amazon Web Services (AWS) has become the retailer’s money machine, accounting for more than half of the company’s operating profit while on track to do more than $10 billion in sales this year.

What a mistake books.com would have been.