A rebrand is a great opportunity to strengthen your company’s image, but you may be a little confused about what the term means exactly. Below we discuss everything you need to know about what rebranding is and why companies choose to do it.
What Is Rebranding?
Rebranding the strategy of changing the corporate image of a company. This may include a new name, logo or image. The intention is to change the emotional co
nnections that consumers have with the company. On average, companies will update their brands about once every seven years.
Why Rebrand?
While there is usually going to be one leading reason for a company to rebrand, it may also be a combination of reasons. These could include:
Repositioning
This is a completely new strategy for the product or service. For example, a restaurant may decide to go from being a casual dining restaurant to a more elegant and expensive dining experience.
Changing Markets
Changes to the marketplace may put a company’s entire existence under threat. We saw this with Blockbuster and unfortunately, this was an example where the company failed to adapt to a changing marketplace. VHS was no longer a thriving market and while Blockbuster tried to compete in the digital market, they were unable to successfully rebrand. Customers still considered them a VHS rental store and did not associate them with digital, for this reason, the company failed.
New CEO
A new CEO often brings big changes to a company. They may decide that they want to take the business in an entirely new direction.
Outdated Image
Changing times can create a need for rebranding when a corporate image no longer resonates with a modern population. When Bank of America went international, the logo was updated to be more acceptable for the change.
Bad Reputation
If a business has developed a bad reputation with its consumers, it may need a complete rebranding in order to dispel any negative associations. It’s import, in this case, that changes take place with both the image and the running of the company to avoid similar problems in the future and to show consumers that they are serious about the change and deserve another chance.
Internationalization
In some cases when a brand decides to move or expand to international markets, they may need a new image if the one they are currently using is not working for the new market. An example would be Slack. When they began to integrate with more apps for improved communication for their main customers, they saw the need for a rebrand (see below). Ths upgraded icon symbolizes more integration and therefore is more fitting.
Mergers, Acquisitions and Spin-offs
Often when there are changes in ownership, a change of identity is also needed. This may be to distance itself from a parent company or because the new management has a different style. In most cases, it’s probably a combination of both.
DotCom Marketing can help you navigate the waters of business image. Whether your company is in need of a complete rebranding or just some advice, we’re here to help. Contact us today.
SOURCE:http://www.brandingstrategyinsider.com
