Have you ever noticed a few big brands experimenting with their logo designs – changing the shape and color and sometimes changing the entire name of the brand? Do you know why they do so?
These are part of the brand management strategy, and the process is called rebranding. Every company adopts rebranding their business in every 7 to 10 years.
But how rebranding helps?
Below are the following advantages of rebranding:
- It helps to create a new impression on the audience
- It also helps in drawing the attention of their potential customers
- Competitive advantage is another plus point of rebranding your products
- It helps in the expansion of your business to other marketplaces
- Your brands align with the products and services offered
In the previous article, we explained how to rebrand your business.
But now, let us look into the factors that could help you identify the need of rebranding:
1. Expansion to International Market:
Data suggests nearly 58% of small businesses have potential customers in the international market, and 72% of the companies plan to grow their foreign customer base every year.
In such a case, when you want to expand your business to potential marketplaces outside your country, then your brand needs a transformation to make it acceptable for the customers existing in those marketplaces.
It might include changing the brand name itself. For example, in 1991, Raider was changed to Twix to match the international brand name.
2. Brand Repositioning:
Whenever any company feels its brand name needs to occupy a distinctive place in the market, it applies brand repositioning strategies by changing the values and offerings. Usually, niche market identification is the first step to developing repositioning strategies. When a brand value is created, keeping a niche audience in focus, it is mostly to succeed in that marketplace.
For example, Walmart became the highest revenue-generating corporation in the world in 2010 after it changed its slogan from “Always Low Prices” to “Save Money.”
3. The arrival of New Leaders:
Rebranding is often performed by the companies following the appointment of new CEOs. New heads bring in a change in the company values and the culture. Hence, they feel the change should reflect in the way they are perceived by their customers as well.
In 1997, when Steve Jobs rejoined Apple, he changed the rainbow-colored logo to the metallic version keeping the future in mind.
4. Outdated Image of the Brand:
By outdated image, we mean no connection between the brand name or image with the new products or offerings. It could also mean the new audience doesn’t feel related to the brand anymore, and the brand is out of touch with the customers. Maybe that’s why Pepsi changed its logo and is totally different from what it used to be earlier.
5. Bad Reputation:
No company exists, which has not seen its bad day. Sometimes when any action or plan goes wrong, it receives an adverse reaction from the customers. To come out of such a bad reputation, companies try to rebrand their business, which helps the customers to recreate a fresh impression of the company.
6. Multiple Mergers, Acquisitions, and Demergers:
Big companies keep merging with or acquiring new companies, resulting in need of immediate rebranding. At times, when companies demerger, the companies want to capture their previous customers with the same image and values, which they had earlier.
7. Frequently Changing Market:
Companies must keep evolving with market needs, look, and feel. Unless they rebrand their business with the change in the market, their company is most likely to go extinct.
8. Similar Brand Perception:
You might have come across a few companies whose logos are not the same but very similar to each other. And it could be the worst scenario if such companies are in the same industry.
Many a time, in such cases, companies sue another company for copying their identity. Hence, the company that came later with the similar brand logo might have to go for rebranding.
These eight reasons are the most observed scenarios that force companies to implement rebranding for their business. However, it requires a well-thought strategy that could have a futuristic vision in terms of aligning with company goals and culture.
In case you need to rebrand your business, ONPASSIVE could help you: redesign the company logo, change website themes, and promote your brand in front of a fresh new audience that suits your business requirements, with the help of the end-to-end AI solution once this to-be-unicorn platform is launched.