Should Tech Mahindra Rename Satyam Computers?
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Should Tech Mahindra rename Satyam computers?

Market Analyst

Harish Bijoor, brand-strategy specialist and CEO of Harish Bijoor Consultants, says brand Satyam should be phased out gradually as the name has lost all credibility. "A brand is a function of visibility and credibility and the Satyam name has lost all of it," Bijoor says.

But not everyone agrees with Bijoor. Many feel Satyam is still a strong brand and the scam has affected Ramalinga Raju's reputation, and not the company's brand image.

The problem is compounded by the fact that Satyam is still a bigger brand than that of its new owner, Tech Mahindra. Consultants believe the branding of any company is decided by two factors --visibility and reliability. Satyam as a brand is much more visible than that of Tech Mahindra. But when it comes to `reliability', the latter is better placed owing to the company's clean image and professional management.

So it makes much more sense to use the JND (Just Noticeable Difference) branding tool to systematically phase out the old (Satyam brand) over a period of time with minimal distraction for clients. The acquisition by Tech M will have only a sentimental impact and won't change the brand valuation much," Bijoor says.

Bijoor has a recipe for the new owners: give equal importance to both Satyam and Tech M brand initially. Six months down the line, the Tech M brand should have 70 per cent visibility and Satyam the other 30 per cent. Within one year, the ratio should rise to 90 per cent in favour of Tech M brand.

The task for the new management, he believes, is to retain its clients and people and the brand image would get resurrected. However, he sees no problem even if Tech M decides to rebrand it. "People would quickly forget the past and move on," he says.

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