Rebranding – What is It and When Does a Company Need It?

As markets evolve, so do businesses. Once relevant and modern brands can quickly become outdated and obsolete. When this happens, a big challenge for management is to reinvent the core of the brand through a process known as rebranding. Rebranding is about refocusing the brand and redefining who we are, what we stand for and why we are important as a business in the world.

Rebranding is not always an easy process. It requires comprehensive planning, strategic thinking and a deep understanding of your brand’s target audience. In this article, I’ve put together everything you need to know about rebranding, including what it is, when it’s needed, what it involves and any other ideas that will help make the process smooth and successful.

What exactly is rebranding?

Rebranding is often seemingly just the process of creating a new name, symbol (logo) or overall visual identity for a business or product/service to redefine itself in the minds of consumers, employees and other stakeholders. However, rebranding often involves more than these: it clarifies the future of the brand and renews the passion for the brand from within and without.

Rebranding can also refer to efforts to change a company’s reputation. This can involve a complete overhaul of the visual appearance of the brand, or fine-tuning of messages and even positioning. Regardless of the specifics, the aim of rebranding is to create a new beginning for the business that is more in line with its goals and values as defined at the time.

When is the rebranding process necessary?

Rebranding should not be taken lightly as it can be a significant investment of time, resources and money. It is therefore essential to have a compelling reason to rebrand.

Here are some reasons why you as a business leader should consider rebranding:

• Outdated brand identity or loss of focus: Brand image and messages can become outdated, leading to loss of relevance and market share. Brand assets that otherwise represent high value can become cluttered, inconsistent, hectic and disorganized. Re-branding can help to refresh the brand and make it more relevant and persuasive to the target audience.
• Merger/acquisition or new vision: when companies merge or are acquired, rebranding may be necessary to align the brand of the newly formed organisation with the new identity and values. New leadership can bring with it new energy and new ways of doing things. To stabilise the organisation and achieve a new vision and strategic goals, rebranding can often help to define the right messages or position the company more effectively.
• Reputation management: if a company has suffered a major reputation crisis, rebranding can help to move away from negative associations and develop a more positive image. Rebranding can be a corrective measure and an effective strategy when trying to recover in these situations. Sometimes it works, sometimes not, but used wisely it can be a transformative tool.
• Changing the focus of the business: If you are changing your business model, introducing new services or products, or innovating to remain competitive and profitable, rebranding can help you communicate the change to customers and stakeholders.
• Rapid growth: In case of rapid development, it is essential to rethink your brand strategy, especially if you did not do the basics when you started.
• Declining profits, fierce competition: companies often react to loss of market share or declining sales by rebranding. A well-planned and executed rebrand can enable a company to regain its leading position and re-engage customers.
• Poor differentiation: If your brand is surrounded by an attitude of indifference, it’s because you haven’t discovered a compelling or relevant point of view (you haven’t gone to the wall). The solution is to find a credible topic, apply some creativity and tell a new story.
• Legal reasons: in rare cases, legal reasons may require a company to create a new brand. For example, if one company’s branding infringes another’s trademark, a rebrand may be necessary to avoid legal action.

What is usually involved in a rebranding process?

Re-branding is a complex process consisting of several stages. Below are the steps of a typical rebranding activity:

• Research and analysis: the first step in any rebranding (or branding) effort is research and analysis. This involves conducting a brand audit to assess the brand’s strengths, weaknesses, opportunities and threats, and to understand the market and competitive landscape. This process will help identify the brand’s current market position and determine what needs to change.
• Defining the brand strategy: based on the research and analysis, the next step is to define the brand strategy. This aims to define the brand’s vision, mission, values and unique value proposition (USP). The brand strategy will guide the rebranding efforts and help ensure that the new brand identity is in line with the brand’s purpose and values.
• Brand identity design: after defining the brand strategy, the next step is to develop the brand identity. This involves creating a new name, tagline, logo, visual identity, brand personality, key messages, stories and positioning. The brand identity should be distinctive, memorable and reflect the brand values.
• Launch plan: after developing the brand identity, the next step is to develop the launch plan. The launch plan outlines how the new brand identity will be communicated to the public, stakeholders and employees. This may include the design of new branding materials (e.g. collaterals, apparel, etc.), photography, a new website and/or packaging, social media profiles, advertising campaigns and internal communications.
• Execution: This can be a major undertaking as it may involve updating the entire brand presence across all channels. It is essential to ensure that changes are made consistently and coherently across all touchpoints to avoid brand dilution.
• Launch: finally, introduce the new brand to the public. This can be a large-scale event or a more modest announcement, depending on the objectives and resources of the company and its leadership. The launch should be consistent with the brand message and positioning, and create positive buzz and excitement among both target audiences and employees (internal activation through training, employer branding).

Tips for successful rebranding

Rebranding is a complex process that requires careful planning and execution. Here are some tips to a successfully rebrand:

• Start with research: As mentioned above, research and analysis is essential in any rebranding effort. This includes conducting a brand audit to understand the current state of your brand and identify areas for improvement. It is essential to involve all stakeholders in this process to ensure that everyone agrees on the new brand objectives and values.
• Set clear objectives: Setting clear objectives is crucial for any rebranding efforts. This includes defining the target audience, the desired messages and the unique value proposition of the new brand. These goals should guide the rebranding process and help ensure that the new brand identity is consistent with the brand’s goals and values.
• Be consistent: consistency is key in any rebranding effort. All changes must be implemented consistently and coherently across all touchpoints, including visuals, marketing materials and all communication channels. It is also important that the new brand identity is reflected in the company’s culture, values and operations.
• Communicate clearly: clear communication is key during the rebranding process. To avoid confusion or resistance, it is essential to communicate the reasons for rebranding to employees, other stakeholders and customers. It is also important that the new brand identity and messages are communicated clearly and consistently to the target audience.
• Plan for the long term: rebranding is not a one-off event but an ongoing process. It is important to plan for the long term and ensure that the new brand identity is sustainable and can adapt to changes in the market and the industry. This may well involve monitoring brand performance, gathering feedback and making any necessary adjustments.

Why should a company invest in rebranding?

Rebranding can be a significant investment, but it can also bring many benefits. Some reasons why a business might decide to invest in rebranding:

• Brand equity: Introducing a new brand can help increase brand equity by improving brand awareness, perception and brand loyalty. By investing in rethinking your brand, your company can update your brand identity, messaging framework and positioning to better align with your values and goals, which can lead to increased customer trust and loyalty.
• Brand authority: By investing in rebranding, the brand image can be updated to better reflect expertise, experience and a unique value proposition, which can help establish authority and credibility in the marketplace.
• Brand promise: A company’s brand promise is a key element of branding and sets the expectations of customers and stakeholders. During the rebranding process, the brand promise can be renewed to better align with business objectives, values and customer needs, which can help strengthen ties with them.
• Ideal customers: rebranding can also help you attract more of your ideal customers by ensuring that the new brand that emerges from the rebranding process resonates better with your target audience. Through rebranding, you can update your messaging, brand personality and brand voice to better appeal to your ideal customers, which can lead to increased sales and customer satisfaction.
• Competition: in today’s competitive environment, it is essential to remain relevant and differentiate yourself from your competitors. By investing in rebranding, you can stay up to date with industry trends and best practices that can ensure you stay ahead of your competitors.
• Attracting talent: rebranding can also allow you to attract and retain the best talent: a reimagined brand better reflects the company culture, values and mission, creating a stronger employer brand. With solid values, it is easier to ensure that candidates share your values and your purpose.

All in all, rebranding can be a significant investment for a business, but it can also have many benefits in terms of the above. Before embarking on a rebranding process, it is important to think about your goals and values, get to know your target audience, and work with experienced brand experts to ensure that your rebranding efforts are successful.

Successful rebranding examples…

1. Apple: In the late 1990s, Apple was struggling to stay afloat in a crowded computer market. The company’s products became obsolete and sales declined. In 1997, Steve Jobs returned to the company and launched an extensive rebranding effort, including a new product range, a simplified logo and a new advertising campaign (“Think different”). The result was a renewed Apple, which has become one of the world’s most valuable brands.
2. Starbucks: In 2011, Starbucks unveiled a new logo that removed the “Starbucks Coffee” tagline and featured only the iconic siren. The rebrand was designed to extend the company’s product offering beyond coffee and position Starbucks as a lifestyle brand. The new logo was well received by customers and the company’s share price rose to new heights.
3. Coca-Cola: In 1985, Coca-Cola announced a new formula for its flagship product, which it dubbed “New Coke”. The move sparked widespread consumer resentment, with consumers preferring the original formula. The company finally relented and reintroduced the original formula as “Coca-Cola Classic”, which became a marketing success and helped the brand become an American icon.

… and when it didn’t work

1. Gap: In 2010, clothing company Gap unveiled a new logo that was widely condemned by consumers and design professionals. The new logo was considered too simple and generic, so the company quickly reverted to the original logo. The case highlighted the risks of changing the brand image of a company of this size without consulting stakeholders and testing the new design.
2. Tropicana: In 2009, Tropicana’s rebranding effort included a new logo and packaging design. The new design was criticized for being too generic and confusing for customers who were used to the iconic orange and straw. The company eventually returned to the original design, citing negative customer feedback and declining sales.
3. Kodak: When they finally understood this and started producing digital cameras, it was too late. In 2006 they tried to become a digital company with a new logo and motto, but this change was not a success with customers (they were confused about the company’s move away from traditional film cameras). The company almost disappeared into obscurity.

These examples highlight the importance of careful planning, stakeholder engagement and testing in any rebranding process. Successful brand rebranding also requires a deep understanding of the brand’s values, objectives and target audience, as well as a clear vision of the brand’s future.

The success of a rebranding process is not solely determined by the visual elements (such as a new logo or motto), but rather by the impact of the rebranding on the business goals of the company, such as increased revenue or improved customer satisfaction. When rebranding, it is worth considering the overall customer experience and aligning your rebranding efforts with your overall strategy. By focusing on outcomes rather than outputs (visible elements), it can be more meaningful and successful to reimagine our brand.