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Why Major Brands Like Meta and KFC Change Their Names: The Risks, Rewards, and Strategies Behind Corporate Rebranding

Introduction: The Rising Trend of Rebranding

Another well-known company has decided that its name doesn’t properly reflect its current business and is changing it.

Why? Because corporate rebranding and name changes are strategic decisions made to align with evolving market trends.

Campbell’s Soup wants to be known as Campbell’s. And as we’ve seen quite a bit recently, this is not a new phenomenon.

Kentucky Fried Chicken changed its name to KFC.

Dunkin’ Donuts became Dunkin’.

Weight Watchers has cut out the fat and wants to be called WW, Facebook is now Meta, Google is Alphabet, and Aunt Jemima is Pearl Milling Company.

Companies do not undertake these transitions lightly. They’re well-thought-out strategic moves aimed at shifting public perception, modernizing the brand, or aligning the company name with its offerings and its consumers’ current values.

Why Companies Undergo Corporate Rebranding and Name Changes

Companies rebrand for several reasons. One of the most common is to keep up with evolving market trends.

Simplifying Brand Perception

For example, Kentucky Fried Chicken shortened its name to KFC for simplicity and to remove the focus from “fried” as consumers become more health conscious. Dunkin’ dropped the “Donuts” to emphasize that they’re more than just a donut shop, positioning themselves as a broader beverage and quick-service brand.

Reflecting Strategic Business Shifts

Sometimes, a name change reflects a more profound transformation. Facebook’s shift to Meta marked the company’s pivot of its primary focus from social media to the metaverse. Similarly, Alphabet was introduced as the umbrella brand for Google’s growing empire of companies, signaling that they’re more than just a search engine.

The Risks and Rewards of a Name Change

Changing a brand name is a bold move and comes with risks. Established names hold equity built over years or decades, including memories, trust, and consumer loyalty. A name change might alienate loyal customers, confuse the market, or even spark a backlash, especially if seen as disingenuous or politically motivated.

Case Study: Weight Watchers to WW – Mixed Reactions

For example, when Weight Watchers rebranded to WW, the move was met with mixed reactions. While the intent was to promote a broader focus on wellness, some argued the new name felt generic and lacked the brand’s original identity. Ironically, some critics even accused the company of “fat shaming” because they found the concept of larger sizes unappealing.

Final Thoughts: The Long-term Impact of Rebranding

Conversely, a successful rebrand can inject new life into a company. It allows brands to shed outdated perceptions, tap into new audiences, and reposition themselves in a rapidly changing world. For instance, the shift from Aunt Jemima to Pearl Milling Company is a response to long-standing racial concerns. And while it’s still a work in progress, the company is striving to build a brand that resonates with a more inclusive audience. And while they have received significant criticism for their name change, only time will tell whether or not the shift works for the company.

When Is the Right Time to Rebrand?

The decision to rebrand often comes down to timing. Is the current name holding the company back? Does it no longer reflect what the business stands for? Or is there a need to modernize and stay relevant in a crowded marketplace?

A name change might be unnecessary if a company’s core identity remains strong. But when the market shifts, competitors innovate, or public perception changes, staying competitive can be the right move.

Ultimately, a successful rebrand is about more than just changing a name. It’s about understanding what the company wants to become and how best to communicate that to the world.