The C-T-R Company Becomes IBM

Tom Watson Sr.'s Successful Rebranding
Date Published: August 30, 2021
Date Modified: January 1, 2024
Why did Thomas J. Watson Sr. rebrand the Computing-Tabulating-Recording Company (C-T-R Company) as International Business Machines Corporation (IBM) in 1924? The answer is contained in this quote of Tom Watson Sr.'s from this time period: "The change in name has been made because of increasing growth of the company's business, and the development of additional lines and products."

It appears, though, that Thomas J. Watson Sr. and IBM were experimenting with changing the C-T-R Company brand as early as 1921. Note the prominent position of "International Business Machines" compared to "Computing-Tabulating-Recording Company" in the advertisement below in the Saturday Evening Post in March 1921.

This "rebranding" is found in advertising in several different magazines during the 1921-24 timeframe.
 In 1924, Computing-Tabulating-Recording Company Was Rebranded IBM
  • The Computing-Tabulating-Recording Company Was Never a Dominant Brand
    • Before 1924, International Time Recording Company Was the Dominant C-T-R Company Brand
    • After 1926, Tabulating Machine Company Was the Dominant C-T-R Company brand
  • After 1924, International Business Machines Became the Overall Dominant Brand​
The two Google Ngram charts below document brand recognition for C-T-R Company and IBM Corporation.
Information from this chart concerning C-T-R Company's brand image.
  • In 1920-26 timeframe, International Time Recording Company was the dominant brand.
  • In post-1926 timeframe, Tabulating Machine Company became the dominant brand.
  • The Computing-Tabulating-Recording Company (C-T-R Company) was never a dominant brand.
  • All brands were in decline after 1930 (The start of The Great Depression).
  • ​Summation: The individual companies or divisions (computing scales, tabulating machines, and time recorders) within the C-T-R Company had better brand recognition than the trust that was put together by Charles R. Flint.
Information from this chart concerning International Business Machine's (IBM's) brand image.
  • After 1924, when C-T-R Company is renamed IBM, International Business Machines (IBM) is the dominant brand.
  • IBM brand recognition skyrockets after 1930 (the start of The Great Depression).
  • C-T-R Company brand recognition as reflected above was miniscule, so it was left off the chart.
  • Summation: The rebranding of C-T-R Company consolidated four weak brands (C-T-R Company, Computing Scales Company, Tabulating Machine Company, and International Time Recording Company) into one very strong brand--International Business Machines (IBM), that became even stronger during The Great Depression.
Editor's comment: C-T-R Company--the subject of this review, was removed from the last charts to reduce complexity. It is always the lower of all the "brands." Although there must be obvious problems with the ngram viewer methodology, such as in the advertisements below it is doubtful it was "intelligent enough" to read either IBM or C-T-R Company across a two-page advertisement, but this still seems like a place to start evaluating brand image. Comments always welcome.
From the advertisements below which highlight "International Business Machines" and place the "Computing-Tabulating Recording Company" and other subordinate "brands" in a less dominant position, it appears that Tom Watson and his marketing team were piloting a new branding philosophy as early as 1921.

These advertisements are from the "Saturday Evening Post" and "System: The Magazine of Business." Notice that in each of these advertisements, although the "product" that is being sold is either an International Time Recording device, a Dayton Computing Scale, or a Tabulating Machine Company appliance, it is the "International Business Machines" brand that is positioned dominantly.

​Also note the International Business Machines "logo" in the first advertisement: speed, accuracy and economy.
This is from the Saturday Evening Post: February 26, 1921.
This is from the Saturday Evening Post: March 26, 1921.
This is from System: The Magazine of Business: April 1, 1921.
This is from the Saturday Evening Post: July 2, 1921.
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