5 Reasons Why Companies Rebrand their Business
The first thing that comes to your mind when you hear the word rebrand, is why rebrand a company. It is hard to say goodbye once you have built your business around your brand. But if you want your business to grow, you may sometimes have no other option but to rebrand.
It is like a relationship that has gone bad. Breaking up may sound downright dreadful. But if you don’t do it you will never be able to start a new relationship. So if your brand doesn’t seem right for your business anymore, you have to think of moving on.
Source: India Today
There was a lot of hype when Tata Nano was launched; but its fame was fickle. The positioning that the brand got as “The World’s Cheapest Car,” ended up demeaning its appeal and dropping down its sales. But then Tata Motors did phase it out by introducing “Nano Twist” in 2013. It was hard; but it sure was for the best.
A car in most cases is considered a status symbol. People want to be proud when they own a car. Buying the cheapest car cannot give them this pride. Thankfully Tata realized this and repositioned Nano as a ‘smart city car.’
More often than not it is the marketplace that tells you, your brand needs a makeover. Some of the telltale signs include slowdown of sales and a shrinking market share. Nevertheless, if you fail to recognize these signs at their early stages and make the necessary changes, it could get too late by the time you rebrand. So catch it at the tipping point while things are still going great. You may still be making profits but not at the rate you may have been making before. You may be still driving sales but the momentum might have just started giving out.
At some point of time every brand may have to rebrand, including the global iconic brands such as Coca-Cola, Kellogg’s, and Guinness. Yes, they have been market leaders since decades now; but they have all changed over time, even if it is in an evolutionary sense.
Not all brands may need to go through radical overhauls; but there are a few that might require extensive changes in order to achieve profitable returns and a consistent growth. That’s when they should think about rebranding.
Source: Be Like Bread
In an effort to reach out to a larger audience, Modern Foods came up with a creative campaign called #belikebread, along with an interactive and witty website. Very cleverly, the brand positioned bread as a crucial factor of life. #belikebread because bread doesn’t discriminate, they said; and the world followed their cue with many posts and videos flooding the internet under the hashtag #belikebread. Not only did the campaign go viral, it started a whole new chapter for Modern Bread.
So whether it is a quick makeover or a complete overhaul that your brand needs, the process of rebranding is only going to reinforce your value, helping you gain better recognition, cement stronger relationships, and tell your brand story in a newer way. You can also use rebranding to unify your team around your organization’s purpose, future, and values.
With that in mind, here are a few reasons for rebranding your business:
- To edge over your competitors
If there is something that is permanent in the marketplace, it is change. It is not just you but your competitors also that are changing. If you are finding it tougher and tougher to consistently differentiate your brand from that of your competitors, it might be time to rebrand. This can help you improve the audience’s perception of your brand, while highlighting your unique value proposition. Rebranding does set you apart from your competitors, giving you the edge that you deserve.
- To reposition your brand
One of the top reasons why companies do rebranding is to reposition your brand. The reasons behind this need to reposition could be many.
Your sales could be slowing down.
Your target audience may have moved on.
You may be targeting the wrong kind of audience.
Your product roadmap might have evolved
Your competitors might have eaten into your market space, making it difficult for you to differentiate your value.
Your customers may have started perceiving your brand as something that is irrelevant or outdated.
Whatever may be the reason, rebranding can help you reposition your brand visually, verbally, and even experientially, giving it an entire new birth.
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- To retain existing customers and target new audience
Consumer behaviors keep evolving on a continuous basis; and it has a lot to do with the number of choices increasing in the market. If you want your company to stay relevant you will have to understand when to rebrand and adapt to these changing behaviors of your consumers. Trying to reacquire your audience once they have made a switch might seem a herculean task, considering the rate at which the competition is increasing. A proactive new brand can empower you to fight customer retention in a better way. Rebranding can help you focus better on targeting the people you need. It makes it easier for you to reach out to newer demographics, engage with newer audience, and acquire new customers.
Older brands might find it difficult to get out of the box that their audience may have put them into. They may end up being stereotyped. Old Spice is one brand that suffered largely due to this issue. Back in 1950s, Old Spice came up with advertising campaigns that were stereotypically macho. Since they featured only older gentlemen, these campaigns led the audience assume that the deodorant was meant only for dads and grandads.
In 2010, Old Spice decided to combat this preconception by rebranding itself. It came up with a humour-driven campaign, repositioning the product as something that was desirable by younger men. In order to reach its new target market, the brand chose the coveted Super Bowl time slot to air its first advert.
- To bring in brand consistency
From ad campaigns to branded marketing materials, from digital media content to social media updates, there is a lot of content flowing out of an organization. It is quite easy for any company to get lost, while trying to maintain a level of consistency in its branding activities. Furthermore the involvement of multiple people in the creation of various branding elements might make it tough to keep things aligned. Veering off the course without realizing, could be easy for an organization of any size.
Lack of consistency is not something that is easily noticeable, especially during the initial period. However, failing to identify and correct this can have a negative impact on the brand eventually. In fact the brand can end up being considered as divided, disjointed, and even unreliable, confusing its clients, employees, and also the executive team. Rebranding can help solve all these issues at one go.
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- To change the fundamental values of the brand
The trends are always changing in this world and if brands want to adapt to these trends, they may have to change the fundamental aspects of their business. It might involve the changing of the core philosophy of the business. For instance, consider the current trend of being environmental-friendly. Any business that does not adapt to this trend stands at the risk of being considered irresponsible. This is why BP rebranded itself to reflect its new ‘green’ focus. From British Petroleum it is on its way to become Beyond Petroleum, to come across as a brand that promotes renewable energy. The Helios identity (sun’s energy) that it has embraced is still only the beginning. The brand has a long way to rebrand into its new vision, aspirations, and strategies, and stake its claim as an energy solution leader.
Source: Canny Creative
The most important thing to keep in mind about rebranding is that all the activities are carried out at the surface. It’s like renovating a flat with a new lick of paint, and some new furniture. Although it gives a different feel, the underlying structure is still the same. The stability of the structure is however, very important.
You can find many reasons for rebranding your business; but rebranding is a lot more than changing your logo, some typography, and color palette. It is about revisiting each and every aspect of your branding, down to the very core purpose. You need to start the creative process right from the scratch. Done right, rebranding could be a major turning point in the success of your company’s story. Take cues from your predecessors who have successfully rebranded their businesses to figure out when to rebrand. But make sure you don’t lose your company’s spirit while you take your brand along the process of this makeover.