Rick Hart- The Implications of “Putting your Name on it”
How many businesses have grown a Brand based on the vision, competency and integrity of one of their founders? The reputation and credibility vested in individuals is often reflected in the choice of business name. A long tradition exists in Architecture, Medical practice and Law to name the business after their founders.
What happens when the founder is looking to exit the business? How do you transfer the trust that your customers have in the founder to the business per se?
The latest news on the voluntary administration of the Clive Peeters Group (owning Rick Hart stores) gives an insight to the effect that “putting your name on it” can have on the founder himself.
In Western Australia, Rick Hart’s name is synonymous with his Rick Hart electrical appliance chain stores. Over the years advertising for the stores has communicated to customers that Rick Hart was personally guaranteeing quality and value for money with his name, voice and image. He was on TV, radio and in magazines declaring “you’ll get the best deal, I put my name on it!”. This became the brand by-line of Rick Hart.
“Putting your name to it” is a very direct translation strategy for evoking and capturing trust and credibility in customers. But what are the pitfalls of this Brand and Marketing strategy?
The Rick Hart brand strategy and communication were straightforward. The person Rick Hart built a brand reputation on his own personality and entwined his philanthropy and sporting activities with his trusted name in business.
In 2006, the Rick Hart stores were acquired by the Clive Peeters Group, and Mr Hart continued as CEO and Director of the Rick Hart chain until November 2009.
In 2009, Mr Hart announced his immediate retirement as a Director of the Company, and as Chief Executive Officer of the Rick Hart Group in Western Australia. He also resigned as CEO of the Fremantle Football Club.
Hardly noticeable, in the following few months, the person Rick Hart disappeared from Rick Hart store advertising. Only the jingle sound remained a constant on radio and ‘I give you my Hart’ slowly faded out.
In May 2010, $1.3 million in goods are awaiting customer delivery from Rick Hart Stores. Clive Peeters went into voluntary administration after sales plunged and it racked up $140m in debt. Interesting though that in the ‘About us’ section of the Rick Hart Store website, the text is still addressing customers with “For over 33 years, it has been my aim to ensure Rick Hart stores stock only the best brands…”
The Rick Hart case shows that “putting your (personal) name to it” was intended as a brand differentiation strategy to the other retail chains in Perth. However, the brand had no exit strategy for its founder. The person and the business were interchangeably linked with the customer perception that Rick Hart, the person, was Rick Hart, the service delivery.
Asked about the demise of his name sake, Rick Hart said to Current.com.au: “I feel very sad about it, it is an icon brand. It has been a very successful business even though I haven’t been involved for the last six months. It is very sad to see it get to this point.”
Now Rick Hart, the businessman, has been working on a new business idea and the launch of his new Luxury kitchen store KHQ is only a few weeks away. His new venture is in a different customer segment and he has de-coupled his personal name from the new brand name.