Why companies rebrand
Over the years I have been involved in quite a few rebranding projects. More often than not, there are certain business drivers that might mean an organisation would benefit from considering their brand.
But first, let’s look into what a brand actually means. You’d be surprised by how many businesses, marketers and senior teams misunderstand this term. A brand is a name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers. Branding is bestowing products and services with the power of a brand.
Here are six drivers that can indicate a business needs rebranding:
1. Outdated image
Changing market trends can make a business’ brand become old-fashioned or no longer relevant over time. A rebrand can help a business modernise its outdated brand image and become more distinguished in front of its target market.
Businesses often reposition their brand to attract new audiences or become more relevant to their target audience. Rebranding can help reposition a brand and make it stand out in the marketplace.
3. A merger or acquisition of another business
Businesses can grow through acquisition or merge with other businesses, which often results in the internal culture getting lost and the marketing collateral becoming inconsistent. A rebrand helps by unifying the culture under one ethos and aligning the marketing collateral into one consistent image.
4. A new CEO
A new chairman or chief executive will often bring a new lease of life into an organisation and change its direction. This may affect its business objectives and marketing strategy, which brings a rebrand into consideration.
If a business is venturing into new markets internationally, it may need to rethink how a product is named or a service is positioned. This may be to differentiate itself from competitors or to avoid a name conjuring up the wrong connotation in a new culture.
If a business develops a bad reputation that in turn impacts its operations and profitability, a rebrand can ensure that any negative associations are dispensed.