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Case: Tyco Electronics 2007
  old logo Another conglomerate break-up. In 2004, in the wake of the Dennis Kozlowski looting scandal, Tyco's new management claimed their strategy "no longer is one of growth through acquisitions but rather calls for operating a set of businesses that have some synergy" (WSJ, 6/15/04). Three years later, the spin-outs of the Tyco Electronics and Tyco Healthcare divisions suggest that synergy can go only so far. Electronics ($12.8 billion) and Healthcare ($9.5 billion) make more sense as independent plays, leaving Tyco International ($18.1 billion) to find greater synergy (or further spin-outs) among its remaining safety/fire and industrial equipment brands. Unlike Tyco Healthcare (now "Covidien") , rather than creating something new, Electronics CEO Tom Lynch chose the naming path of least resistance (for the moment) by elevating the existing division name to corporate brand level. So he licensed "Tyco" from Tyco Industries, accepting the risk of sharing brand control with an unrelated company. For several preceding years, the "Tyco/Electronics" division had surpressed acquired brand and subsidiary names, to strengthen its own presence, and research showed it had earned independent respect in the marketplace. Given the shared name, the design of yet another Tyco wordmark would make no sense (and 'Tyco Electronics' is long for a wordmark), so a symbol was warranted. Interbrand designed a lively TE monogram that neatly evokes connection. The businesses were restructured in three principal units named Electronic Components, Network Solutions and Wireless Systems (plus an "Other," for flexibility). A tagline, "Our commitment. Your advantage." expresses their common brand promise. CREDITS Interbrand (NY) CASE INFO Submitted by: Tony Spaeth, 23/07/2007 |
MATRIX DATA
DRIVERS | TOOLS | ||
| Structural driver: 60% | |||
|
Spinout or de-acquisition Preserve existing equity | 30% | x | Identifier tactics: Name change: Brand |
| x | Change event : High visibility: Campaign | ||
|
Spinout or de-acquisition Express a new vision | 30% | x | Identifier tactics: Logo change: Symbol-dominant |
| x | Identity system elements: Visual system: Typography | ||
| x | Identity system elements: Visual system: Graphic devices | ||
| x | Identity system elements: Visual system: Palette | ||
| x | Identity system elements: Verbal elements: Tag lines | ||
| x | Change event : High visibility: Campaign | ||
| Strategic driver: 40% | |||
|
Change internal culture Enhance pride & confidence | 15% | x | Identifier tactics: Logo change: Symbol-dominant |
| x | Identity system elements: Visual system: Typography | ||
| x | Identity system elements: Visual system: Graphic devices | ||
| x | Identity system elements: Visual system: Palette | ||
| x | Identity system elements: Verbal elements: Tag lines | ||
| x | Identity system elements: Unit signature system: Monolithic | ||
| x | Change event : High visibility: Campaign | ||
|
Change expressed personality Renew/refresh public image | 15% | x | Identifier tactics: Logo change: Symbol-dominant |
| x | Identity system elements: Visual system: Typography | ||
| x | Identity system elements: Visual system: Graphic devices | ||
| x | Identity system elements: Visual system: Palette | ||
| x | Identity system elements: Verbal elements: Tag lines | ||
| x | Identity system elements: Unit signature system: Monolithic | ||
| x | Change event : High visibility: Campaign | ||
|
Change perceived composition Redefine the defining units | 10% | x | Identity system elements: Verbal elements: Principal unit names or competence list |
| x | Situation facts: Subcorporate facts: Defining units | ||