Crayola Brightens a Brand

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Sounds Like Fun

Schwab says that when staffers engaged in consumer focus groups and ethnographic product-testing sessions at Crayola's Easton factory, both children and adult visitors repeatedly said "Crayola" was the main association that they had with the Binney & Smith name—if they had any associations at all.

"We didn't over think the name change when we decided to formally make Crayola our overall brand," says Schwab. "Crayola has always been associated with ideas and memories of color, fun, creativity, and quality. Now our other products, such as Silly Putty, will be identified with the same qualities, too."

Crayola's naming strategy reflects what Anthony Shore, creative director of the Naming "and" Writing division at branding agency Landor Associates, sees as a wise path to follow when considering a change. "One rule of thumb is to look at existing trademarked assets," says Shore. "Choosing one of those assets as a new corporate brand works only if it serves as an endorsement of all of the company's other brands."

Go for the Icon

Shore cautions, however, that there isn't a one-size-fits-all formula for renaming strategies, although the step of looking within a company's stable for an appropriate product that could serve as an umbrella brand name is a good place to start. Landor, incidentally, is the firm that rebranded FedEx and is working with The Nielsen Company. Shore adds that turning to an older, established product within a company's stable as inspiration for a new, overarching corporate name can also provide a sense of resonance for customers.

"We live in an age when we're bombarded with so many marketing messages in so many different platforms and media, at all times. It's hard to establish trust among consumers," Shore says. "But trust is necessary. Established brand names already have built trust and are part of the fabric of the marketplace."

David Placek founder of Sausalito (Calif.)-based Lexicon Branding, the agency that named the BlackBerry for Research in Motion (RIM) and Pentium for Intel (INTC), agrees. Only a handful of companies can boast a brand as valuable as America's favorite crayon. "When a company is so fortunate to have a brand like Crayola, and all the positive feelings it generates, it's wise to make it as visible as possible," he says. "They made a smart move."

Invisible Inks

The name change comes at a time when Binney & Smith—er, Crayola—has seen increased sales growth from all of its products, ranging from classic crayons to newer offerings such as a spray-paint product, Color Wonder. The latter represents a growing line of Crayola-branded goods, an expansion that gives the company yet more reason for a name change.

Color Wonder is one in a series of products that feature proprietary technologies. These include paper coated with a chemical solution that allows colorless sprayable inks to produce hues only when they come in contact with it. Crayola also markets other counterintuitive "colorless" products, such as finger-paints and markers, which again become visible only after the application on Crayola paper.

Although the private company doesn't cite exact sales figures, Schwab says 2006 sales exceeded $500 million, a double-digit percentage increase from 2005. But if the company's on a roll, why change the name? In fact, name changes typically suggest a healthy company, says Landor's Shore. Just think of Apple's recent switch—timed shortly before its announcement of stellar first-quarter profits and revenues (see BusinessWeek.com, 1/18/07, "Apple's Shares Off Despite Stellar Quarter"). "Name changes usually take place when mergers and acquisitions happen, or when companies aren't fearful and they are able to focus on non-urgent decisions," such as a name change, he says.

So the rechristening of Crayola reflects brisk sales and a rosy future for the company. Or maybe make that Cerise—or Fuschia.

Jana is the Innovation Dept. editor for BusinessWeek.