Santiago Gil Gallardo (MBA ’26) explores the most crucial decision in branding.
Juliet may have been onto something when she mused that “A rose by any other name would smell as sweet." But would people queue up for hours to buy the latest iPhone if Apple were called "Executex"? What about “Matrix Electronics”? (Believe it or not, both were strong contenders.) In the world of business, names are not just labels – they are the first chapter in a brand's story, and sometimes, they are worth billions.
Think about it: your name is your first possession. It shapes you before you can shape it back and, most importantly, it plants an idea – a perception of who you are – in people’s minds before you can have any say. Psychological research supports this idea; for instance, the Pygmalion Effect demonstrates how the expectations others have of us, often influenced by something as simple as a name, can significantly shape our outcomes – creating a self-fulfilling prophecy where we grow into the identity our name suggests. Some of the most profound character explorations in literature follow this very arc. From Grendel to Frankenstein’s monster, these characters are molded by the perceptions imposed upon them, ultimately accepting – and even embracing – the identities they have been assigned by others. A name can honor legacy, inspire greatness, weigh heavily, or simply feel right. It is a profound choice because names carry power – they are shortcuts to understanding, distilling complex identities into a single word. Simply put, names are the threads that weave identity into the fabric of our existence.
This principle applies even more acutely to brands. A brand name isn’t just a word; it is a vessel of meaning, conjuring images, feelings, and expectations in the minds of consumers. In a marketplace crowded with choices, a name can be the difference between triumph and obscurity. The name is the first touchpoint in establishing the brand's most critical mission: to develop a narrative that resonates and sticks in the minds of consumers.
According to Kantar BrandZ's 2024 report, Apple became the first company to boast more than $1 trillion in brand value alone. The mere concept of what Apple represents in our collective psyche is worth nearly as much as the GDP of Saudi Arabia. Such a valuation is anything but an anomaly. The report further reveals that the top 10 most valuable global brands are collectively worth over $4 trillion. As expected, tech giants reign supreme, with Google ($753 billion), Microsoft ($713 billion), and Amazon ($577 billion) following Apple’s lead. Breaking the trend are the golden arches of McDonald’s, which ranks fifth and boasts a brand value surpassing $222 billion – greater than the market capitalization of many Fortune 500 companies. Kantar currently estimates that the Global Top 100 collectively represent $8.3 trillion in brand value – just below their $8.7 trillion peak in 2022, but still 76% above their pre-Covid valuation.
Kantar’s 100 Most Valuable Global Brands (Kantar BrandZ 2024 Most Valuable Global Brands Report)
These figures underscore a crucial point: in today's market, a brand's name and identity can be its most valuable asset. But what makes these names so powerful? Often, it is a combination of clever etymology, cultural resonance, and strategic positioning. Consider Nvidia, which ranks 6th in Kantar’s report with a brand value of $202 billion and is the largest mover with a 178% year-over-year increase. The name "Nvidia" is a portmanteau, combining "Invidia" (Latin for "envy") with "Vidia" (relating to video technology). Envy, represented by the color green, resonates throughout Nvidia's branding. In other words, Nvidia’s name is directly imbued with the aspiration to create such high-quality technology that it would naturally become the industry’s envy. This etymological foundation subtly positions the company as both forward-thinking and desirable, reinforcing its cutting-edge ethos. While most consumers might not dissect the name, its impact on brand perception is undeniable.
But what is it, exactly, about the etymology of names that resonates so deeply? Etymologically rich names possess a unique ability to operate on a subconscious level, creating layers of meaning that permeate a brand's identity. This depth, while not always immediately apparent, contributes significantly to overall brand perception and resonance. The subliminal effect of such names can be a potent force in cultivating brand identity and fostering consumer loyalty.
This subconscious impact works through a network of interwoven mechanisms. Names rooted in cultural or historical references tap into collective memories and shared values, creating an instant, if unspoken, connection. The very sounds of a name can evoke certain qualities or emotions, influencing perception before conscious thought even begins. These etymologically rich names activate related concepts in the mind, building a web of associations that reinforces the brand's desired attributes. In fact, names that feel right are processed more easily by the brain, leading to a sense of familiarity and preference. Ever struggled to find the right word to describe something, only to recognize it immediately upon hearing it? The same principle applies here.
Nike is a prime example of this powerful psychological effect. Named after the Greek goddess of victory, the brand embodies triumph and success. Its name, both simple and powerful, is instantly recognizable and easy to recall, resonating deeply with athletes and aspirational consumers. The iconic swoosh logo further amplifies this identity, symbolizing movement, speed, and the relentless pursuit of excellence. Together, the name and logo craft a unified narrative that has elevated Nike to the pinnacle of global branding. In the automotive sector, Volvo derives its name from the Latin "volvere" and translates to "I roll." This root not only emphasizes motion – the very essence of what a car does – but also implies progress and forward momentum, contributing to Volvo's reputation for reliable, forward-thinking vehicles.
While these examples showcase the power of positive etymology, the flip side can be equally impactful. A poorly chosen name can lead to embarrassment, lost sales, or even total brand failure. One oft-cited example is the Chevy Nova, which supposedly did not sell well in Latin American markets given “no va” means “doesn’t go” in Spanish – not ideal for a car. As it turns out, however, that story is utterly apocryphal; the model sold quite well. Mitsubishi, in turn, actually had to learn that lesson when it was forced to change the name of the Pajero SUV to Montero, given the former’s lewd connotations in many Spanish-speaking countries. There seems to be a pattern amongst car companies, as the Ford Pinto faced a similar fate in Brazil, where the name is slang for male genitalia, leading to mockery and poor sales. In a different product category, "snow" seems like a great name for a line of soaps and detergents, evoking purity and cleanliness. However, international expansion might pose challenges for Barf, the Iranian company whose Farsi name unfortunately conveys the opposite impression in English-speaking markets.
On a lighter note, some brands have found success by playfully subverting expectations. Häagen-Dazs, for instance, was crafted to evoke a sense of European quality, even though it has no meaning in any language and was created by a Polish immigrant in the Bronx. This creative approach to naming has served the brand well, helping it build a premium image despite its invented etymology.
While the power of etymology in branding is clear, it is crucial to strike a delicate balance. Overemphasis on etymological cleverness can lead to names that, while intellectually satisfying, fail to connect with the average consumer. The challenge lies in crafting names that work on multiple levels – appealing both to those who appreciate the etymological depth and those who simply find the name catchy or memorable. They serve not just as labels, but as gateways to the brand's story, inviting consumers to engage more deeply with what the company represents.
As we navigate an increasingly digital and global marketplace, the art and science of naming become ever more crucial. Whether you're a budding entrepreneur or a seasoned business leader, remember that in the world of branding, a name is not just a name – it is the foundation of your company's identity, the seed of its story, and potentially, the key to its success. HBS students interested in pursuing entrepreneurship might leave the task of creating a company name to the last minute, but consumers and investors ultimately do judge a book at least partially by its cover. A decision that could, it appears, be worth billions.
In the end, Juliet was wrong. A rose by any other name might smell as sweet, but it wouldn't sell as well. In the business world, names matter. They can be the difference between a billion-dollar brand and a cautionary MBA case study.
Santiago Gil Gallardo (MBA '26) is originally from Mexico City. He graduated from Tecnológico de Monterrey with a degree in Industrial and Systems Engineering. Before HBS, he worked in venture capital at IGNIA and investment banking at a boutique firm in Mexico City.
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