Is it a bus? Is it a plane?
May 7, 2008
It’s Britain’s best-known insurer. But after a rebranding, many people now wonder if it’s a bus company. Miles Brignall asks why Aviva is ditching Norwich Union
- Saturday May 3 2008
It’s either an inspired piece of global branding, or an expensive name change that sees the loss of one of Britain’s best-known financial brands.
This week, the UK’s biggest insurer, Aviva, revealed that it will scrap its 200-year-old trading name, Norwich Union.
In doing so, it becomes the latest British corporate name to rebrand in the footsteps of Midland Bank, which controversially, but ultimately, successfully transformed itself into HSBC. Other rebrands have been less happy: the Post Office retreated from “Consignia” amid widespread public derision.
Does Aviva now risk the same condemnation? Guardian Money took to the streets to ask the public about the change. Most people believed Aviva was a bus company. One thought it was a feminine hygiene product. Others said the name was just plain silly. Everybody condemned dropping the name Norwich Union, which they knew as a financial institution, not a bar of soap.
Norwich Union was founded in 1797 by Thomas Bignold, a wine merchant and banker. It has become one of the few insurance brands that stands out in a sea of bland names adopted by multinational companies.
Aviva said this week the rebranding is part of its strategy “to grow and transform the business to compete on a global scale” and that, following a major review, the Norwich Union name will be phased out over the next two years.
Andrew Moss, Aviva group’s chief executive, justifies the move by saying 60% of its business is generated outside Britain, and that it trades as Aviva in more than 20 of the 27 countries in which it operates. In some of these places, the Norwich Union name “means nothing”, he says.
“We have to compete effectively on the world stage alongside our international peers. Creating a brand that is known across the globe is an important step,” he says.
The company refuses to say how much the rebranding will cost. It argues the changes will mean it will only have to promote a single brand. The RAC – also part of the Aviva group – will retain its name because the roadside recovery division has a “specific trust and recognition” for its members.
Branding consultants defended Aviva’s name change, predicting that any furore will be long forgotten in a decade’s time. Rita Clifton, the UK chairwoman of the world’s largest brand consultancy, Interbrand, says: “Increasingly international companies are choosing to rebrand themselves in a bid to get away from the parochial connotations. When [drinks company] Diageo came up with that name it attracted great consternation, but it has been a great success.”
Within the financial services sector she picked out the HSBC rebrand as a success. “The Royal Mail’s choice of Consignia was less so. However, the rationale behind the move was understandable. It was probably picked because it would have helped the company to move into international markets – I suspect Aviva’s decision reflects similar sentiments and the global nature of the business,” she said.
This is not the first time the insurance giant has courted controversy of this kind. In 2002, the company, then know as CGNU following a raft of mergers, faced shareholder hostility at its AGM after announcing it was switching to Aviva. One branded it “silly” while others remarked on its similarity to Arriva, the bus company.
In Norwich itself, there is an air of resignation about the name change. NU is still the city’s largest employer. “Norwich will be an outpost of Aviva global and not at the beating heart of the operation,” a local newspaper columnist says.
What do you think?
“Aviva. It sounds familiar – is it the company that runs the buses?” asked Ty Tikari, an architect who was – yes, you’ve guessed it – waiting for a bus. When asked what Norwich Union did, he replied: “Is it a bank? Doesn’t it do financial products or something similar?”
Photographer Ana Grimaldi was not alone in never having
heard of Aviva. When asked to say what she thought it does, she correctly guessed that it sold insurance products. However, she knew all about NU and,
when told the name was being ditched, she pulled a bemused face. “Why? What’s the point?
Novelist and food writer Mark Daniel had no idea what Aviva does – and when given a list of choices, he finally elected for the manufacturer of feminine hygiene products. Like most of the people we interviewed, he did know exactly what Norwich Union did.
Retired London resident Edward Morton, as a shareholder in Aviva, said he was aware of the brand, but added that he had no idea of the impending switch. “I don’t think a great deal of it. No doubt the rebranding exercise will be hugely expensive.”
Post Office worker Ceta McVeigh, from Deptford in SE London, had “no idea what, or who, Aviva is” but she knew all about the outgoing name. “Norwich Union has to be one of the best-known insurance firms around – why are they getting rid of it? It seems crazy to me,” she says.
Identity crisis at Channel 4
March 16, 2008
Why does Channel 4 exist? It’s a question unlikely to cross the minds of teenagers watching the latest Big Brother eviction, or trouble the million or so viewers who tune in to Channel 4 News each weekday evening. But it’s an issue that has been exercising C4’s executives of late and, perhaps more significantly, it is one that its political paymasters may soon be forced to address. Funded by advertising but publicly owned, the channel is a strange hybrid: – part commercial operation with a £600m-a-year programming budget, part state-owned troublemaker, the nation’s mischievous, unruly nephew to the BBC’s ‘Auntie’. But more than a quarter of a century after it was founded, there are signs it is suffering from an identity crisis. The reasons for the soul-searching are twofold: first, audiences and advertising revenues are beginning to fall, in the face of increased competition, depriving Britain’s most provocative broadcaster of the revenues that underpin it. Last year, C4’s audience share declined from 10 per cent to less than 8 per cent, despite acclaim for typically provocative dramas such as Skins and Shameless , and although its family of digital channels helped to check the fall, pre-tax profits fell from a record £48.5m in 2005 to £20m in 2006. The company predicts it will be losing money by the end of the decade – a view that media regulator Ofcom shares. Second, C4’s output is being scrutinised more closely than ever as it seeks – according to critics – to prop up viewing figures with more sensationalist programming. Industry sources claim that C4’s spending on news has increased by just £0.6m in recent years, and that hours of news programming fell by 31 to 315 in 2006, while the amount lavished on documentaries has increased by only £0.3m, with hours falling by 142 to 153 over the same period. By contrast, spending on the ‘Other Factual’ category – which includes Big Brother – has gone up by £30.9m, and hours have increased by 547 to a total of 1,077, equivalent to about 45 days of television. Big Brother alone filled 556 hours of airtime in 2006. Channel 4 disputes those statistics. Although it concedes that Big Brother has become essential, it insists that it is making more news and documentaries than ever. But the controversial reality show is a curse as well as a blessing: its celebrity spin-off prompted a row over racism towards Bollywood actress Shilpa Shetty that overshadowed Gordon Brown’s visit to India last year and plunged the broadcaster into crisis. The fall from grace was illustrated powerfully by an arresting visual image: an exhausted-looking Andy Duncan, C4’s chief executive, struggling to defend the channel at an impromptu press conference, his faltering performance seemingly epitomising the crisis of confidence within the company. Last Thursday, Duncan – this time looking fresh in a smart suit and shirt – attempted to regain the initiative, unveiling a new mission statement that reiterated C4’s core values, and arguing that it could still play a valuable role in an era when almost 90 per cent of homes have multi-channel TV – particularly if it extends its brand to the online world. Duncan claims C4 needs an annual subsidy of around £150m to plug its funding shortfall, and last week’s exercise was all about laying the ground before a final push to secure it. In an impressively staged presentation to MPs, regulators and colleagues in the media, he made all the right noises about diversity and creativity – promising to set up a £50m fund to invest in digital content – in the hope that the same opinion-formers who were appalled by last year’s Big Brother scandal would be cheering him by the time he left the stage. He probably succeeded. The main political parties were quick to praise the document, but the arguments over where the cash will come from will continue. C4 chairman Luke Johnson, for his part, has called for a new system of funding that ‘preserves… independence from editorial interference’. But when former Culture Secretary James Purnell hinted he might consider handing part of the £3.2bn-a-year licence fee to C4, the BBC complained loudly. Duncan argues that the channel has always received a subsidy in the form of free space in the broadcasting spectrum – an asset that has fallen in value in the digital age. But that old public-service model of television – whereby government gave broadcasters access to the airwaves in exchange for a promise of worthy programming – is breaking down. If it is to be repaired, with C4 at the heart of it alongside the BBC, then Duncan needs to outline an economic as well as a cultural case for its continued existence. He did so by promising to give the channel a more regional bent, working closely with independent production companies based outside London – a plan that current Culture Secretary Andy Burnham, a Liverpudlian and north west MP, is thought to smile on at a time when ITV, lobbying vociferously to be freed from its public-service obligations, is scaling back regional news. But while the future remains unclear, one thing seems certain: privatisation is not on the agenda, if only because C4’s shrinking value means the amount raised from a sale would be relatively small – perhaps just £650m. Big Brother maker Endemol is worth twice that.
With the channel claiming it still has a valuable public role, James Robinson examines a broadcaster that is losing viewers, money and credibility
French women can be chic and serious. Why can’t we?
March 16, 2008
Imagine the scene. A glamorous line-up of female politicians is photographed at a Downing Street dinner: Jacqui Smith looking delectable in figure-hugging Vivienne Westwood, Hazel Blears in a delicate Alice Temperley number and Baroness Vadera sleek in Ronit Zilkha. Can’t quite picture it? Didn’t think so. he equivalent tableau was enacted last week in the Elysée Palace, when President Sarkozy’s ex-model spouse, Carla Bruni, was all but eclipsed by his Justice Minister, Rachida Dati, resplendent in a midnight-blue dress slit to the thigh. Dati wasn’t the only one challenging Carla; Interior Minister Michèle Alliot-Marie was elegant in a one-shouldered cerise gown and Christine Albanel, Culture Minister, was swathed in flattering black taffeta. The idea of our female politicians pulling that off is almost as preposterous as Gordon Brown doing a Sarko and eloping with, say, Linda Evangelista. But the UK’s chic deficit is not confined to Westminster. As one British executive said to me over lunch last week, French businesswomen are also incredibly well-presented; he singled out Anne Lauvergeon, the boss of energy group Areva, for particular admiration. Take a trip to the banking district in London’s Canary Wharf, though, and you will be confronted by a sea of women dressed in identikit, boxy black or navy blue suits, designed to hide their femininity and individuality. So why can’t powerful, independent and solvent British women overcome their inner frump and embrace elegance like the Parisiennes? It may be that the French have an innate sense of style embedded in their DNA, but I suspect cultural factors are holding us back. If a woman looks toned and groomed on this side of the Channel, she risks being written off as superficial and having too much money or time on her hands. Some Englishwomen adopt the dishevelled look as a badge of pride, as if it demonstrates their minds are on higher things. But why should looking great be a problem? Once you are in your thirties and beyond, it is not about impressing men any more, it is about respect for yourself and others. It is actually easier, in my view, to look good when you’re a bit older. When you’re 18, it’s all about genes; when you’re 38, flair and taking care of yourself is much more important. My efforts to look my best haven’t always been appreciated. I still smart over an encounter with a senior female banking executive on a sweltering summer day – she was sweating in her skirt suit and American tan tights, I had on a blue floral summer skirt and navy top. ‘Do you dress like that all the time?’ was her comment and I don’t think it was a compliment. On another occasion, I was accused of being ‘polished’ and that didn’t sound like a good thing either. I’m with Ms Dati, who, at 42, refuses to go dowdy. When taken to task over her designer clothes, she retorted that as the high-achieving daughter of poor immigrants, she had earned her Dior dresses. The right to be chic is constitutionally enshrined along with liberté, égalité and fraternité. At a deeper level, the UK seems to suffer from an anxiety over mature female sexuality that has bypassed the French. It is notable that the women looking so fantastic at the Elysée are all over 40. Here, there is a notion that sexiness is synonymous with being young and unthreatening; the adult sophistication of Ségolène Royal wouldn’t score many points in our cheesy lads’-mag pantheon. Those views are reflected in the language we use – ‘une femme d’un certain age’ sounds much more alluring than ‘middle-aged woman’ – and in the clothes we consider appropriate. The approved look for a 40-plus woman here is mumsy and sensible – in short, invisible. I’m not ready to disappear, though, and nor, I suspect, are thousands of other women on the wrong side of the big four-o. But it’s not easy aspiring to be a chic Brit. The high street excels in its fast fashion aimed at the teens and twenties. Older women who want to look smart have to hunt much harder. Paris is full of stores which target their advertising at fortysomething mothers as well as their daughters. Stuart Rose, the head of Marks & Spencer, was under fire in the City last week over a boardroom shake-up, but he could silence his critics forever if he could nail the problem of offering women elegant clothes on a budget. Our way does have its advantages. Letting oneself go may not be a phrase that translates into French, yet it is relaxing to be freed from the tyranny of trying to look good all the time. And a political system that excluded the redoubtable Ann Widdecombe for not being glam enough would surely be much the poorer. Inner beauty is what counts most and maybe we appreciate that a bit more. But it is still fabulous to see an array of powerful women who are not afraid to display their style as well as their substance – and that is one French lesson we could learn.
Walkers launches “Brit Trips” on-pack promotion
March 15, 2008
Walkers, Britain’s No.1 crisps and snacks manufacturer, launches a massive on-pack promotion this month – designed to celebrate its home by offering consumers millions of pounds worth of savings off the best Britain has to offer – from theme parks to traditional pub lunches! With a massive £5 million worth of multimedia, through-the-line support, Walkers Brit Trips will benefit from an extensive marketing campaign. This will comprise of a new TV creative featuring brand ambassador, Gary Lineker, driving an old London bus and singing an alternative version of “Summer Holiday”. In addition, there will be radio advertising, online activity, PR, media partnerships and extensive in-store display equipment. Walkers is an iconic British brand which is growing at +4.9% and eaten by more than 10 million consumers in Britain every day. As part of its impactful Home Grown marketing campaign this year, the Brit Trips 12-week on-pack promotion offers huge scope for consumers to enjoy Britain at value prices. Walkers Managing Director, Richard Evans says: “This campaign builds on the category leadership work we have been doing over the last few years. In terms of health and wellness, we have reduced the saturated fat content of Walkers crisps by 70% and the salt content by 25%. “In terms of the environment we have switched to 100% British potatoes to reduce our carbon footprint. We expect that the Brit Trips promotion will further grow the Walkers brand, and as the brand grows, the category grows.” Consumers can collect points from all Walkers Brit Trips promotional packs: • Standard bag and Big Eat – 2 points • 6 pack – 6 points • 14 pack – 14 points• 28 pack – 28 points
For ease, every multipack inner will have just one code worth 6, 14 or 28 points depending on the pack size. These points are redeemable against literally millions of pounds worth of fantastic savings across Britain – the best deals Britain’s ever seen without the catches. Offers start from just 5 points so you don’t need to collect for long to start enjoying great savings! Operating on a vast scale, Walkers Brit Trips comprises £5 million worth of discounts and offers – many available throughout the summer holidays– at a huge variety of Britain’s best loved venues. These include: • Half-price tickets to Alton Towers, Thorpe Park and Chessington World of Adventure• 60% off at Butlins and Haven• 2 nights for the price of 1 at Ramada Jarvis hotels• 2 for 1 days out with Enjoy England, Visit Scotland and Discover Northern Ireland• ½ price tickets to Madame Tussauds, Sea Life and Legoland. • 2 for 1 green fees at over 800 golf courses • Discounts across 100s of local attractions • Plus many, many more
Walkers Brit Trips’ entry mechanic is modern and interactive: • Firstly, consumers collect codes from packs • Secondly, consumers register online and can enter collected codes directly online or by text message. • Thirdly, consumers choose their preferred reward from over 10,000 available on the Walkers Brit Trips site www.walkersbrittrips.co.uk and go on their British adventure. Evans continues: “Walkers is a fun, British brand, famous for promotions that capture the nation’s imagination. Brit Trips is guaranteed to build on that reputation. It is a massive promotion encouraging consumers to enjoy beautiful Britain for less – you only need a few bags to save a packet. “For example, for only 5 points you can get Enjoy England, Visit Scotland and Discover Northern Ireland 2 for 1 days out. For only 10 points, you can get ½ price tickets into The London Dungeons, Madame Tussauds or Warwick Castle. And if you purchase a 28 pack multipack, you can get a half price ticket to Chessington World of Adventures or a National Trust free day pass. “We think that our crisps are the best-tasting on the market, and we hope that this promotion will encourage those people who buy crisps to buy ours. We also want to reward our loyal consumers who already enjoy eating Walkers.” Running across all Walkers Crisps brands – Walkers Standard, Walkers Baked, Walkers Lights and Walkers Max, promotional packs will be available in-store from mid February.
25 Feb 2008
Walkers Brit Trips campaign
Story from Talking Retail: http://www.talkingretail.com/8706
Handbags clobbered by celebrity fatigue
March 15, 2008
It’s all over for the “it” bag – or so says consumer research specialist Mintel. Fashion shoppers – mostly female – are finally losing their passion for celebrity-endorsed handbags that can cost thousands of pounds each. The market for big-ticket, big-name bags, as sported by the likes of Kate Moss and Victoria Beckham, has been expanding rapidly, chalking up 30% annual growth in the past three years. Total UK handbag sales, boosted by the “it” bag phenomenon, will exceed £500m for the first time this year. Burberry has a new “Warrior” bag at a variety of prices from £850 to £13,000, depending on whether it is cut from leather or gold alligator skin. Chanel recently unveiled its Forever alligator bag, complete with a clasp studded with diamonds, for £100,000. And Smythson sells the Nancy bag, designed by Samantha Cameron, from £495. Mintel is forecasting an 18% fall in sales growth thanks to the consumer downturn and celebrity fatigue. “Women have become more cynical about celebrity-endorsed products,” said Katrin Magnussen, senior fashion analyst at the market research group. “Many will no longer be as quick to spend hundreds, even thousands of pounds on a bag just because the likes of Posh Spice have been snapped with one, especially when these days the must-have looks are quickly translated to the high street.” A downturn in demand will be bad news for firms like Burberry, Mulberry and luxury label groups such as LVMH. The handbag business is a vital part ofthe fashion trade, often generating bigger profits than clothes. Mintel says worries about cheap labour and the environment will also hit sales. A green bag, it seems, could be the next “it” bag
Hello world!
March 15, 2008
branding can be an art, alchemy even, and a bit of magic thrown in for good luck i think. a bit about myself, from alex wipperfurth’s brand hijack, of how we are made up of multiple selves, i am: -mac + illy/krups + amazon + ebay + paul smith …* hello world…
