brand trouble:hoover

07/24/2006 09:22:00 PM
Associated Press has a fascinating article about the Hoover brand. The story highlights the company's pending sale by Whirlpool and the potential bid by its employees.

Considering Hoover became synonymous with vacuum cleaners, the brand failed to capitalize on its massive awareness and fell upon tough times. Critics blame its lack of investment in research and development and marketing.

The AP mentions the strong ties the company has with the town of North Canton, Ohio and the pride that the 16,000 townspeople including the 1,800 employees feel for the company.

If lack of pride and passion caused Hoover's suffering while in the hands of Whirpool, there's a chance that this can be re-kindled if the employees could become owners.

There used to be a philosophy, established by the likes of Pullman and Cadbury, that a company should be about more than making money and play a deeper role and responsibility in society.

It would be nice to believe that the employee bid would have a chance of winning, because Whirlpool understood the social merits of its potentially lower bid.

Sadly, this may not be the reality, the Hoover brand may prove too tempting an asset for a Chinese manufacturer who benefits from low-cost production, but lacks the magic of a recognizable and respected brand.
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