Hiding the C-word
When
it comes to doing business in the U.S., the name Canada seems to lack
a certain cachet
Lisa Wright
BUSINESS REPORTER
Feb. 17, 2002
OCANADA, our home and native
brand.
Sure, we're proud to say, "I
Am Canadian," even for the sake of selling beer. But more and
more, true patriot love is taking a backseat among Canadian companies
trying to make a name for themselves in the United States.
Corporate Canada is downright
initial itchy. Bell Canada is BCE. Canadian Pacific Railway is CP
Rail. Ditto CN. CP Hotels is now Fairmont Hotels.
And while the big banks continue
to grow, their names are strangely shrinking: CIBC (Canadian Imperial
Bank of Commerce), RBC (Royal Bank of Canada) and BMO (Bank of Montreal).
They say it makes doing business
outside the country easier, but skeptical observers are starting to
wonder: What's the shame in our country name?
"Contrary to what we think,
the word Canada is a negative in the U.S.," says veteran logo
designer Chris Yaneff.
"Americans are so proud
of anything American, especially now (post-Sept. 11)."
Yaneff, who changed Brewer's
Retail to The Beer Store and named the Square One Shopping Plaza,
had to watch the giant CT logo he designed taken down from atop Toronto's
Canada Trust tower after TD Bank's takeover.
"The rule is to avoid Canada
and definitely avoid any foreign (French) reference in a name,"
Yaneff says.
"If you're selling perfume
and you're a French company, it may be a different story. But when
you're dealing with business people, I would avoid it entirely."
He thinks it's only a matter
of time before TD's retail arm – renamed TD Canada Trust, now
using just the distinctive green TD colour – will drop Canada
from its name.
But TD says people shouldn't
read anything sinister into a name change.
"We're going to keep that
name until sometime into the distant future," says Chris Armstrong,
TD's executive vice-president of marketing.
"I mean, I don't think you
can ever predict what will happen. Someday there will probably be
bank mergers in Canada and then I don't know whose names are going
to be on the buildings."
The name game in recent years
touches on a constant sore spot for Canadians: that our neighbours
to the south still don't know (or care) much about anything Canadian,
and don't trust "Canada" as a symbol of worth in the business
world.
"They just think of snow,
north and hockey when they think of us," notes Greg Yaneff, who
works with his father in the design and branding business.
Yaneff International has done
several surveys for clients seeking to expand their businesses south
of the border, and the message is always the same.
"We're just not thought
of as a business nation," says Greg Yaneff. "The U.S. market
is pretty internalized."
Steve Manning, managing director
of the Sausalito, Calif.-based branding firm A Hundred Monkeys [now
Managing Director of Igor], says it all depends on what a company
is trying to sell.
For example, Canada Dry ginger
ale and Clearly Canadian bottled water are great because of the positive
Canadian images they conjure, making it attractive to retain the country
moniker.
"There's a lot of ambiguity
and ambivalence about Canadian culture and what it means to be Canadian
– not just here but in Canada, too," Manning says.
"Our news here is so focused
that I don't think anyone here has a clue as to what's going on in
Canada."
Even Molson's popular "I
Am Canadian" ad campaign wasn't played as big in California as
Fosters' similar ads about what it means to be Australian, which were
seen daily on west-coast TV screens, Manning says.
"For
better or worse, when Americans think of Canada, we don't think
of a place. We think of adjectives like cold, northern, snow, igloos
and hockey hooligans."
Jay
Jurisich, California ad man
His company doesn't tend to use
country names when branding a new business, leaning more toward the
catchy and the comical, such as All Thumbs for home repair videos
and Cruel World for a career placement service.
"For better or worse, when
Americans think of Canada, we don't think of a place," says Manning's
colleague, Jay Jurisich [now Creative Director of Igor]. "We
think of adjectives like cold, northern, snow, igloos and hockey hooligans."
He says most companies should
steer clear of using the Canadian name because it has a provincial
ring to it.
The Royal Bank, the latest to
take some heat for taking the name-shrinking path, defends its decision
to change its image, including removing the crown – and the
negative connotation of ties to the monarchy – from its familiar
lion logo.
"We were never trying to
distance ourselves from Canada," says bank spokesperson David
Moorcroft. "If we didn't want to use the word Canada, we would
have just called it RB Financial Group.
"But putting the full name,
Royal Bank of Canada, in front of another (U.S.) company was too clumsy,
too cumbersome.
"We just wanted to go to
initials like IBM went to initials, and like so many other companies
do when they want to operate in more than one country and need a shortened
version of their name."
So the bank's personal banking
arm in the United States is RBC Centura Bank, while its full-service
brokerage is RBC Dain Rauscher and its corporate investment banking
worldwide goes by RBC Capital Markets.
"I don't see this as sort
of a tidal wave in which the industry is being swept up," says
TD's Armstrong.
"The CIBC has been CIBC
for 50 years and TD has been TD for a long time. The Royal probably
thought long and hard about this (name change) because people call
them the Royal. It probably will take a long time for this thing to
grow roots with customers."
If anything, companies are shrinking
their names to initials as a way to "leave the past behind"
and expand their business, he says.
As for a corporate plot to try
to eliminate anything Canadian from a brand, Armstrong adds: "I
wouldn't have any comment on that. I happen to be a dual citizen and
I love 'em both."
Some observers suggest that Canadian
firms are just being realistic.
"Americans are very jingoistic,
so many Canadian companies like to assume the American identity when
they're down south," says Joseph D'Cruz, a professor of strategic
management at the University of Toronto's Rotman School of Management.
"It's not so much that the
Canadian moniker is not appealing. It's more of a bias in favour of
domestic (U.S.) companies," he says. "There is a very strong
emphasis on buying American, especially after 9-11, but it was also
there before.
"Most (U.S. businesses)
are blissfully ignorant about Canadian companies anyhow, so it's therefore
rational for them to play down their Canadian identity."
Canada fares a bit better internationally.
"When I associate something
with Switzerland or Germany or Japan, I tend to think of that as (having)
quality," says Toronto designer Burton Kramer.
"I'm sure (other countries)
think Canadian maple syrup and bacon are swell, but I don't know that
it works for other products.
"In every country, there
are over a million goods and services with the name of that country.
"But more and more, they're
moving away from using it. They don't want to be seen as a provincial,
local organization. They want to be seen as a global concern."
Royal Bank's Moorcroft says Canada
has a very good reputation for financial services in international
circles.
"You think of Canada as
being politically safe and neutral in terms of most world disputes,
and a lot of people like to deal with a financial institution in a
country that is stable and where their money is going to be safe,"
he says.
"So the name Canada is a
big advantage for us in international markets.
"In the States, it's probably
neutral."
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