According to Wikipedia ‘Rebranding is a marketing strategy in which a new name, term, symbol, design, or combination thereof is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors, competitors, and other stakeholders’.
Rebranding has become an increasingly popular strategy to in order to revive a brand or organization. What dictates to what extend a brand will go is dependent on the prevailing circumstance of the brand or organization. Whatever part of the bouquet is selected; the major goal of a rebranding exercise is to make the brand more relevant and differentiated to stakeholders.
Rebranding can be a time and resource-intensive effort and should be undertaken after careful consideration of available data and consumer insights to back up the plan. The first hurdle to cross will involve gaining the support and financial commitments of the leadership which can only happen after a carefully prepared business case that clearly outlines the need, the opportunity, the risks, and the cost to the brand or company of not rebranding.
When should a brand rebrand?
What may necessitate a need for rebranding may be internal or external to the brand or organization and in some cases, the need for rebranding may be proactive or reactive.
1. Mergers & Acquisitions: Rebranding can occur in the case of a merger between two companies; it becomes imperative to take on a new identity to project what the new entity stands for. In this case, giving the organization a name that is contemporary and differentiating may open new doors. It is also a time to redefine what the company stands for and what they want to be known for. Logos, brand colours and positioning are some of the changes that may become evident post rebranding.
2. To drive consumer appeal: Rebranding is also relevant when the brand recognizes that it’s consumer profile depicts ageing users. It becomes imperative to make the brand more relevant and appealing to younger people. An example of this was when Guinness launched the Michael Power campaign to shift the perception of consumers from a brand for old people to a more aspirational brand.
3. Competitive Activities: When the industry dynamics have changed and the brand has remained unchanged in the circumstance, it becomes dated. With increased competition and changes in the industry landscape, brands may find out that their relevance is at risk or possibly the scope of their offerings have become limited to the point of impacting on revenue. An opportunity to rebrand can give a facelift and can open new doors!
4. Strategic Growth opportunity: A change in internal strategic growth plan which the current brand will not be able to support may bring about the need to rebrand. Rebranding can be a strategic growth accelerator.
5. Legal Issues: Trademark issues may force a company to rebrand, when there is a potential or actual infringement. It is important to have company & brand names and logos properly registered to avoid such a situation. Another situation that may necessitate a rebranding is like the Arthur Anderson/Anderson Consulting arbitration issue, which necessitated Anderson Consulting changing its name to Accenture.
This article was published in the Business Day Newspaper of March 15th 2016.