I’m wondering what Richard Smith, the grand brandmaster of real estate, was thinking when he decided reconstituting a mid-market real estate franchise that conflicts with his existing stable was a good idea. I don’t think any of the official reasons — offered in today’s press release and interview with Inman News — were at the core of the calculation. These guys are too smart.
The only way this deal makes sense is if Realogy …
Is making a serious play for the women’s market.
Women make up more than half the population. They drive many home related decisions. Much of the "lifestyle media" phenomenon is driven by recognition of this reality. Yet the Realogy brands (indeed, nearly all real estate brands save Real Living) are decidedly male.
Meredith Corp. is all about the women’s market. Its corporate slogan is "We inspire. She makes it happen". The Better Homes brand is its flagship. Taken in this context, Alex Perriello’s comment to Inman that "It’s really a long-term decision. This is
about what Realogy would look like 10 years from now. We think this is
a highly strategic decision on our part" starts to make sense. If the brand is handled capably (not a sure bet) and the access to the 75 million American women in Meredith’s database is leveraged properly (still less sure) they could indeed be positioned to come out ahead.
Or …
Is making a move to retire the Century 21 brand.
OK, you may find this one a little far-fetched. Humor me. Coldwell Banker makes sense. I get that brand. Sotheby’s serves the high-end. ERA is inscrutable. And Century 21? Every time I touch the brand I feel like I should slip into a pair of Sansabelts, pour myself a 7 and 7 and settle down for a new episode of The Mike Douglas Show.
It’s a middle American brand with tons of recognition but no meaning. It’s spent, a vestige of a time when real estate franchising was shiny and new and Realtors wore jackets. Each new ad campaign — it’s now The Gold Standard – makes that more clear. I do not think Realogy can rehab it. The new brand website is not a good omen.
It makes more sense to take the next five years to transition the C21 franchises into a new mid-market suit of clothes, one tied to something real that connects with more than half the family.
Am I nuts?
– Brian Boero
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Brian.
You owe me a new computer. I did a Danny Thomas "spit take" on my keyboard when I read your comments on C-21, and now it doesn't work.
This was again one of your best examples of cutting through all the fluff and reducing the nonsense to a few excellent paragraphs.
Try as I might, I cannot come up with any additional insight on this train of thought. You already said it all.
Thanks for the humor, I'll send you the bill for the new computer.
"Every time I touch the brand I feel like I should slip into a pair of Sansabelts, pour myself a 7 and 7 and settle down for a new episode of The Mike Douglas Show."
I too sprayed a little coffee on my keyboard while reading this.
I don't think you're nuts. It seems like many of these older brands are lost on people in younger generations, who would mainly be looking for the best information and interface online.
@Kevin
Sorry! I will try to go easy on the sarcasm going forward.
OK. You win. I'll pay for the new computer myself if you promise to keep the 7 and 7 companies aware of their need to either innovate or sell the jackets on ebay.
Your tongue in cheek approach is too dead on to change, so please don't
One question from germany:
the "big ones" in US-real estate are franchise-based corporations.
Thousands of brokers/owners and agents with thousands of CI. In which way is it possible für C21 – or another real estate brand – to "change" ?
I hear McDonald's and Levi's are thinking of retiring their brands as well.
I agree that C21 needs to enter the 21st century in their marketing, but the brand isn't going away. The CENTURY 21 brand still carries more name recognition that any other real estate brand. Help me remember; has there ever been an easily recognizable brand in any business that has just been dropped?
And just like the real estate market, the perception of real estate franchises is local as well. Ask folks around these parts if ERA is inscrutable, and they'll laugh at you. And not because they don't know what the word means.
Yes, I am a CENTURY 21 franchisee. I enjoy your insights on this website and realize you are probably just 'floating' this out there, but yes, you are crazy.
@Charles:
Oldsmobile.
As far as ERA is concerned, consider this from a *consumer* perspective by taking this test:
Apple means ________.
Starbucks means _________.
ERA means _________.
Recognition on its own does not make a brand. Meaning makes a brand. Local affiliates may imbue a brand such as Century 21 with meaning, as I suspect you have. But looking at this globally, I think it's an uphill battle.
Earned Run Average? Do you think the answer would be different if you put CENTURY 21 there instead of ERA?
I certainly see your point about the difference between recognition and brand. My point is that I believe CENTURY 21, from what I have seen, is really working toward refocusing the brand. With the recognition already there, if the right people get behind it, it will get done.
Of course, I may be just looking through my Gold colored glasses.
I see the public efforts they have taken to re-imagine the brand. I just don't find them encouraging. Bur you may be privy to things I have not yet seen.
Brian-
Thanks for noting Real Living as one of, if not the only national franchise company recognizing the female consumer. Great post.
Interesting angle. It is however way too early to negate the upside potential of a new BH&G brand in real estate. There were many that foretold failure for RE/MAX when they launched their new commission concept in 1973, or when hospitality franchisor HFS bought Century 21 in 1995 or when awkwardly named EXIT launched in 1996. Yet, all three are good examples of how success many times comes from unlikely places and names. Realogy has proven they can build a real estate brand and company. So, with an added 8 million circulation and a 40 million readership, BH&G is a brand that is already two steps ahead of most and definitely has potential as a national real estate company.
You have one of the best ideas of how BH&G could work in tomorrow's market.
Also Right – Recognition may work for impulse buys like chewing gum, but not for selling a home. Real branding tells a story and makes a promise.
Stefan,
You raise good points. I think, though, that the days of launching brands with no meaning for consumers is over.
I am not writing off the BHG deal – quite the contrary. I think there is huge potential here, but I found the public statements regarding the deal unclear and wonder if Realogy can truly maximize the potential of the brand.
The appointment of Sherry Chris to lead the new venture on the heels of the annoucement is definitely encouraging.
Awesome insight. I have noticed that my clients over the past few years have been ever more female without male partners. Single career women, divorcees, and widows have been an ever larger portion of our clientèle. I was hoping that the Realogists were happy to leave this niche to us, the ERA inscrutables, but the segment is too big to ignore on the heels of the Real Living successful rollout.