A brand represents the ‘personality’ and qualities of a product, service or company. A strong brand and a loyal customer base allow a business to differentiate itself from its competitors and is a distinct asset owned by a business that forms part of its goodwill. Since brands can be instrumental in purchasing decisions, they are nurtured and protected through trademarks. Customers come to believe they ‘own the brand’. Loyalty to a brand may take years to develop, but can be undermined almost instantaneously by bad news stories or unwise tinkering by management which alienates loyal customers.
A recent post discussed the problems Toyota were experiencing with its reputation and loss of goodwill. Now General Motors appears to have shot itself in the foot having been forced to shift into reverse gear over what it called a “poorly worded” memo asking staff to stop using the famous nickname “Chevy” for its Chevrolet cars. The car giant said in a statement that it was “in no way” discouraging customers or fans from using the name after two senior executives requested Chevrolet staff at their headquarters in Detroit stop it, even when “speaking with friends and family”.
