Musings at the intersection of business and life

What's in a name?

Business Savvy
January 5, 2012 by Peter Economy

I was somewhat amused to learn today that Hansen Natural Corp -- the Corona, California-based beverage manufacturer -- has decided to change its name. Now, before I tell you what the company's new name is, let's first consider for a moment the feelings that Hansen's products evoke within most fans. Although Hansen has been has been around since 1935, it was the introduction of a line of natural sodas in the 1970s that put the company on the map nationally. At a time when most sodas were being crammed full of preservatives, caffeine, sodium, and artificial flavors and colors, Hansen's sodas were noticeably missing these fancy modern ingredients. Instead, Hansen's sodas used strictly natural ingredients. As a result, they became popular with people who decided that if they (or their kids) were going to drink sodas, at least they could drink sodas that were relatively healthy. The company's advertising reflected this natural message, leaning heavily on photos of green pastures, butterflies, birds, and natural outdoor settings.

However, the company's management team decided that in today's marketplace, natural was no longer enough. So, with the agreement of Hansen's shareholders, today the company changed it's name -- to Monster Beverage Corporation.

Monster? Really?

Yes. As it turned out, the company's Monster energy drink has been lately driving the company's growth -- not its natural sodas. In the third quarter, total company sales shot up a record 24.4 percent year-over-year to $474.7 million, with net income climbing nearly 24 percent, to $82.4 million. Much of this growth was directly attributable to skyrocketing sales of the Monster energy drink.

When it comes to branding, names are important. They should reflect the image you're trying to project to the public. Do the names of your products -- and the name of your company -- reflect the image you are trying to project? If not, then consider taking a page from Hansen's playbook, and change them.

Related tags: energy drink, hansen natural, monster beverage

Comments

Really good article, Peter, with a great example to boot. When we set out to come up with a name for our startup, we didn't have the board of a 'monster' company bearing down on us. But branding was at the forefront of our thinking. We opted for making up a word altogether-- 'Stroome'. It's a derivative of the Danish verb 'to flow freely', which was exactly what we wanted people's information, ideas and creativity to do via our collaborative video editing platform. Very fortuitously, I just finished a post on the importance of naming your product over at PBS MediaShift Idea Lab. If your readers are interested, here's the link: http://bit.ly/zRZmhf

10:54 a.m. | January 10, 2012 Tom Grasty
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