It is a dilemma unlike any other. Should fraud-mauled change its tarnished name in a new avatar? Or should it stick to an old one which has served customers well, made profits and created jobs for two decades?
Expert opinion is divided.
“Satyam brings up a moot question: where does the brand reside?” Anand Halve, co-founder, Chlorophyll Brand & Communications Consultancy, told Hindustan Times.
Halve sees just Infosys and TCS as the two ‘brands’ in India’s IT industry. “Does the name Satyam have value in itself or is it about trained people, existing contracts and service capabilities?” he asks.
Nabankur (Nobby) Gupta, founder CEO, Nobby Brand Architects & Strategic Marketing Consultants, looks at a bigger canvas. “There are two elements in this issue: brand recall and presence on the one side and brand equity on the other. Is there a link? On the first element, there is visibility for the wrong reasons,” he says, adding that the other issue needs careful nurturing.
Brand Satyam would do well to learn some lessons from Toyota, which recalls the largest number of cars compared with its competitiors to rectify defects.
“Customers swear by Toyota, making it the number one brand in the global marketplace,” Gupta said.
When L&T Cement was sold to the Aditya Birla Group and its name changed to Ultratech Cement, the new owner used aggressive advertising in letting the market know.
That might work if there is a dilemma.