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About two months ago we heard about this story - but we didn't know what it entailed. Back in July Coles Myer said they were preparing to rebrand and rename their company. What they didn't say back then was that Coles Myers is spending $900,000 per month on the project. And now the project has lasted five months, leading to a $5 million bill.While we haven't seen any official press releases - The Australian News says Mccann-Erickson and Futurebrand are leading the project.
One may wonder how the company is paying for this. Perhaps the "retrenchings" of about a dozen marketing general managers (saving $3 million) and 2500 other employees (saving an undetermined sum) is part of it. Here's the problem with this
. A branding agency should be aware not only of the brand of the company and products they're working to position, but also of the direct effect of their engagement with the company. An advertising campaign released shortly before the retrenchment announcements thanked the staff for helping it reach its profit goals.
Doesn't seem exactly sincere, does it? "Thanks for your hard work - now go away." How, exactly, does this move benefit the brand image? How could something like this happen three months into a multi-million dollar branding engagement? The fact that Coles Myer's spokesperson won't go futher than saying the investment amount ($5 million) is inaccurate doesn't help things. Nor does the fact that this contract was awarded without going through a bidding process. It just seems shady - and that's something that probably isn't part of the brand plan. We await the official rebrand release with baited breath. With two steps backwards before the program has even been launched, it'll be interesting to see how effective this multi-million dollar campaign can be after being damaged before it is fully crafted. And as for this comment from the article: "I think it's the richest fee we ever heard of, in the world, for a logo," a source familiar with the rebranding process said.That's just sour grapes. This is (or should be) about more than colors and shapes. Mccann and Futurebrand craft brand strategies, not just cute icons. But their job just got a whole lot harder. ...and if for some reason this does get launched as just a new logo... well... we don't want to think about that. Here are some thoughts from other bloggers on the rebranding. Currently there aren't many positive vibes. Tate Linden Principal Consultant Stokefire Consulting Group 703-778-9925 |
