Top 6 Reasons For Rebranding.

Rebranding is the process of changing the corporate image of an organisation. It is a market strategy of giving a new name, symbol, or change in design for an already-established brand. The idea behind rebranding is to create a different identity for a brand, from its competitors, in the market.

The Economic Times

There are 2 types of Rebranding:

Partial: which means adding something new to the existing brand without making major changes. We consider this as refreshing the image of the brand or giving it a slight update.

Total: A complete change in the brand. This often happens when there’s a complete change in ownership or a merger between two businesses. The current branding no longer aligns with the new culture and values of the company and hence, a complete rebranding is essential. 

Today’s market is very dynamic and ever changing. With constant evolution in trends, it is important for businesses and brands to be updated and evolve with their customers and stakeholders. Often, that means that your current brand may not reflect these changes and may seem outdated, especially if you’re in a very competitive market. This is when Rebranding becomes the obvious solution as a brand must stay current and relevant.

Your current branding strategy may be super effective for the current demographic but what if you want to expand and target completely different demographics? Different groups of customers may respond differently to different strategies and approaches. Your current branding strategy may work for one specific audience but the same may not draw a younger audience. In order to resonate with this newer demographic, a complete rebranding may be necessary.

Often, when a business expands, it may do so by entering a new market in foreign countries. Sometimes, rebranding may be necessary so that the business can align itself to the culture and norms of the foreign country.

For example, the famous German brand, Dr Oetker, which sells frozen pizzas and baking products in various countries, decided to enter the Italian market. The company felt that a complete rebranding was necessary as a frozen pizza with a German name would be doomed for failure in Italy. In order to connect with Italian customers and gain their trust, Dr Oetker renamed the brand as Cameo specifically for Italy. Over the years, this brand sold the highest number of frozen pizzas in Italy.

When a merger happens, it means that two different businesses are coming together. Each of them will have its very own culture, mission, vision, values, etc. Hence, the current brand is no longer in line with the new merger. This is the time to restructure the business and also rebrand the business. In such a case, a complete rebranding with changes in the logo image, brand’s colors and other aspects have to be considered so as to reflect the new business venture.

One such example is the merger between Alaska Airlines and Virgin Airlines in 2016. Alaska Airlines had to go for a rebranding because the target audience had now changed. The logo, colors and image of the airline were refreshed to reflect the company’s new values. In fact, this is considered to be one of the most influential rebrands of 2016.

Rebranding may be necessary if another company has trademarked a similar logo or name for their own brand. In order to avoid legal disputes, rebranding may be the only solution for another company.

In the 70s, Burger King, the American Fast Food Chain, decided to enter the Australian market. However, in the town of Adelaide, there was already a business that was operating under the name Burger King and it was trademarked. Hence, it was impossible for the American Chain to operate under the same name. Burger King started to operate as Hungry Jack’s in Australia but maintained the same look and feel as all Burger King restaurants.

A brand’s reputation may be seriously affected and as a result, it is associated with a negative image in the minds of people and the business may lose its customers. In order to remedy the situation, there’s a need for rebranding. Rebranding can help a company change the narrative and present a more positive image to the public.

For example, the lingerie brand Victoria’s Secret was reputed for its luxury sexy lingerie products. However, with time, the brand became under constant scrutiny for being sexist and using skinny models that do not reflect realistic beauty standards. Back in the day, their brand was successful but as the world evolved, Victoria Secret stuck to the same branding and marketing strategies. Rather than evolving, it resisted change for the longest time. As a result, it experienced a huge decline in sales over the years as it no longer aligned with what customers wanted.

In 2021, Victoria’s Secret announced a complete rebranding and started to work towards empowering women. One of the major changes was featuring women of different morphologies, ages and different races. Furthermore, transgendered women are also being featured as models to highlight the brand’s inclusivity.

These steps will help to transform the way customers perceive Victoria Secret and showcase it as a brand that is inclusive. By choosing to rebrand, the brand is aligning itself to the values of customers and potential customers.