Category: Brand Management

Can Re-branding Exorcise Devils?


New name, fresh start? This philosophy seems to be behind the re-branding campaign recently announced by the Tampa Bay Devil Rays of Major League Baseball. Uh, wait, that is the Tampa Bay Rays (hold the Devil). The team is changing its name to “Rays” and unveiled a new logo and color scheme that it will don next season. The makeover is part of an effort by team owner Stu Steinberg to invigorate the franchise after years of mediocrity under previous ownership.

The Rays have nothing to lose by re-branding the team. AirTran was formerly known as Valujet, but a wave of negative publicity (including a fatal crash) left the Valujet name “valueless,” so re-branding the airline in the late 1990s gave it a needed clean slate. Unfortunately, it takes more than renaming a product to enhance its value. If the Rays continue to be among the worst teams in MLB every season, then there is little marketing can do to influence the team’s image.

Perhaps the wisdom of NBA star Allen Iverson applies here. When the NBA implemented a dress code for players, Iverson said “Put a murderer in a suit, and he’s still a murderer.” Following that logic, changing the name and uniform colors will not lead to a World Series championship.

Better-for-You Gatorade?


People who exercise are typically concerned with what they put into their bodies. Pepsico is hoping its Gatorade brand extension, G2, will appeal to consumers who seek hydration benefits after exercising but want less calories contained in regular sport drinks (including Gatorade). A serving of G2 contains 25 calories, half of what is in a serving of regular Gatorade.

Extending into low calorie sport drinks is not new for Gatorade. It tried it in the early 1990s with Gatorade Light and failed. What’s the difference this time? There appear to be several differences. First, Pepsico got the brand name right. By avoiding the “Light” tag in the brand name, there is less chance that consumers will feel they are getting a “diet” version of the product. It is similar to what Coca-Cola is trying to do with its branding of Coke Zero. They are diet drinks that are not positioned as diet drinks! Second, more consumers are involved in recreational activities and pursuit of a healthy lifestyle. Market demand for products that meet their needs stand a better chance of gaining acceptance than they did 15 years ago. Third, the marketing know how of Pepsico and its channel relationships should benefit G2. These factors, coupled with the benefit of being able to learn from the failure of Gatorade Light, make G2 a more viable brand extension. Link

Johnson & Johnson vs. American Red Cross

Johnson & Johnson finds itself in need of emergency relief to resolve its no-win situation with the American Red Cross. The company has filed suit against the Red Cross because of alleged violations of an agreement that stipulates how the Red Cross can use J&J’s red cross logo it has used for more than 100 years. J&J has become frustrated as the Red Cross entered into marketing agreements with manufacturers to produce Red Cross-branded products that use the iconic red logo, which violates the agreement with J&J (at least according to the company).

You have to empathize with J&J in this case. Brand assets are among an organization’s most valuable possessions, and it should do everything in its power to protect the integrity of brand names, logos, and other brand marks. Unfortunately, going after a highly respected non-profit with a mission of providing relief to others in time of great need will do nothing to score points for J&J. Rather than engaging in a legal battle with the American Red Cross over co-branded goods, maybe J&J should have been more proactive in exploring co-branding opportunities for its own products. Combining these two venerable brands into product offerings could potentially command price premiums, but it’s hard to envision such a move now in light of the battle brewing between the two organizations. Link