Rebranding is the process of changing the corporate image or reputation of an organization. Chiefly, branding makes the company’s name and identifies the company in the minds of the customer. The idea behind rebranding is to create a new image and stature of the company when compared to its competitors. One more main reason why companies rebrand is to get back their connection with their customers.
Why the rebranding process is essential?
Mollycoddling in the same brand for years isn’t going to make an impact in the minds of the customers. The utility factors start to deplete and the loyalty is lost. Whatever may be the reason but its important to create a stellar brand for the customers. Most probably business houses rebrand once every 7 to10 years.
1. It makes you compete Globally
By rebranding, the internalization aspects open its door. Having international customers create a huge advantage for the rebranding concept as it covers their aspect of thinking too. In case if you want to conduct business abroad this platform can be really competent.
Brand names cannot be understood in every country. For example, Raider changed to Twix and Smith’s to Lays.
2. In the case of Bad reputation
A bad reputation is pretty common in startup and small companies as many customers do not prefer that form of business. Hence with the help of Rebranding, the lost stature can or not so developed stature can gain profanity. For example, when Maggie was found to be a health hazard due to its high lead content, the company immediately shut down the production and came up with a new recipe and a new brand.
3. When your “green” competitor has the same branding policy
Branding which is similar to another company will surely lead to a lawsuit, hence advisable to rebrand. By rebranding new ideas and a new unique image is created in the minds of the customers. A very famous example is Paypal vs Pandora. The symbol and idea of providing through apps too much similar, in some cases customer of for the company have even complained that Pandora is tailing Paypal in their idea of selling.
4. When a new Leader Arrives.
When the product or service so rendered does not take a massive hit in the market, the leadership style or quality is not apt. Hence most of the time the CEO position keeps changing. New ideas and inspirations will be brought into action. The style or Branding, Advertising changes drastically. The idea behind rebranding is to gain or regain the reputation of the corporate body. The new CEO will ensure in retaining this image. A very known example is when Steve Jobs returned to Apple, he made a competent change in the brand logo from Rainbow color to a metallic font. After the rebrand, the company’s products took a major hit.
5. Apprehend the new Generation
If your company is mature and historic, then it is advisable to rebrand the products. It is because the people whom you have subjugated and seized are from a specific time period. The idea of creating the brand image would have been from that time or era. The new generation would not be so familiar with the image which is being used, their chance of buying or using your product would be very nadir. Rebranding your product into something new which attracts and captures the sight of the next generation is surely a huge hit. In this way both the set of people are tempted to use the product, as the former set of people are already convinced and ready to buy the product likewise the latter would be coaxed in getting the product. Mcdonald’s the American way of saying walk “your way to obesity “, changed its branding technique every decade to corroborate that the next generations are also attracted to the products.
6. Collaboration and Acquisitions of firms
When there is a successful reign and the profit margin is haggling over, most of the companies would want to merge and maximize the profit, even more, meaning, a merger takes place. Due to mergers, the MDs of both companies would have different ideas on how to rebrand their merged product. Two main reasons for rebranding in this case are:
- To make the change visible
- To comply with legal requirements
The best-suited example is ConocoPhillips. The two “strong Horses” brought together to pull a chariot. Conoco and Phillips were already leading distributors of oil, In 1949 it merged to be ConocoPhillips. Like How Maruti Suzuki in automobiles.
7. Changing market
For some companies, changes in the market mean that their very existence comes under threat. The digital transformation of society in particular is making it necessary for certain sectors to reinvent themselves. Different requirements call for a different product to be offered. Reasons to rebrand:
- Reflect current market dynamics to gain advantage
- Stimulate growth by improving brand
- Adapting and surviving
- Healthy competition
Mastercard remastered its logo as there was a huge change in the transactions which were taking place. Most of the customers were using mobile phones as a means of transactions. Hence due to change in the market, Mastercard rebranded.
So ReBranding is not only a procedure that is done just by changing the logo and its branding kits. It has a lot of things behind it. If you have any points to add let me know in the comments section.