We all endure change and grow with time, so why not our brands and businesses? When you start a business and make it a brand at the right time with all the stars aligned, sometimes it becomes important to give another thought. For decades, rebranding or renaming a company has been a successful corporate strategy to shift the focus and enhance its services. It also reflects the company’s cultural changes and sometimes updates about its new terms and modifications in its products. But is renaming or rebranding a strategically valid idea? Before diving deep into this topic, let’s understand the basics of rebranding, its types, and the reason for it.
About Rebranding and its types
Rebranding is termed as the process that changes the name, logo, symbol, and product of an already established brand. Sometimes the company is rebranded or renamed to make a new image among its consumers. It is also done to generate competition in the market.
There are two major types of rebranding
By the name, it is partially clear that reactive branding is when a company reacts to some series of events or on its product’s image. Moreover, it aims to change or discontinue the image fully. Primary reasons could be some legal issues or some kind of negative publicity.
Proactive Brading takes place in advance rather than responding to some kind of event. This happens when the company executives think ahead and see growth opportunities. The major reasons could be changing focus, reconnecting with the customers, or a desire to innovate.
Why do businesses choose to rebrand?
- To change the incomplete corporate identity.
- The major reason to rebrand a business is to change the target audience.
- To stand out differently in the market.
- Sometimes the organizations have to deal with new brands or are acquired by the big brands that make a situation to rebrand it.
- Changing the marketing strategy is also the reason for rebranding the organization.
- Sometimes the company’s logo or names become too similar to each other leading to a lawsuit.
- To change, take out the brand from the bad reputation or any kind of negative publicity.
- By the time the image of the brand fades, it changes the images and updates the business.
Why is rebranding a successful strategy?
Rebranding or Renaming can be strategically a good idea when you are crystal clear about the changes that you want to make. Here are the reasons why rebranding has been a successful strategy in businesses to get the new fly.
Grows the Business
Rebranding the business can be good for growing and making new connections with the audience. The new look of the brands leads to attracting a new audience and eventually creates growth in the market. Make sure your business is your asset and it should be taken care of in that accord.
Make Brand Unique
It is important to stand out in the market, and rebranding helps in it. Comparison in the market is very normal and making your brands unique will tell the consumers how valuable your product or services are. If the product is not unique, it will remain in the shell instead of growing.
A good name and a good logo are enough to make the consumer stop and look at your product or the service. It speaks aloud what you want to express. It makes the brand much more important and helps to get in touch with more people.
When you rebrand the business, it eventually increases the engagement level with the consumers. It also gives a chance to the company to engage at different platforms with the new value. It gives you and your business a chance to explain the changes and reasons for implementing them.
The Business Perspective
The internal perspective of the company can change when it starts growing. For example, AuctionWeb has rebranded itself as eBay, Facebook rebranded itself as Meta. The changes take place when the organizations shift their products or services while they are growing. Many brands successfully went through the process at one point in their success journey.
The negative impact of rebranding
At times rebranding or renaming can give you an adverse impact and can badly impact your business. Here I will list some of the problems that may cause after rebranding the business.
The Development Cost
Brands are not created overnight; it takes years to turn a small idea into a big venture. It takes a huge development cost to rebrand, then advertise, and publicize a brand. Usually, the marketers calculate the Risk and Return of Brand Investment ( ROBI), but they are all predicted.
Changing the Insight
It can be risky to rebrand as if by mistake the brand gets a bad name; it would become impossible to change the image. The brand can get through a severe loss and regaining it would be difficult.
Leads to Confusion
The Consumers may disagree with the changes made in a brand, or a few may boycott it too. Rebranding brings a risk of losing the consumers, even after you do the right transitions in the process. Remember, without communication, it can create trouble, confusion, and loss to the renowned brand.
Tips for a successful rebranding
There are several things you should keep in mind while or before rebranding your business.
The Logo is the face of your business. It should be relevant and must show your product or service. Have patients while making or changing it. Also, make sure when you change your logo, it should be updated in all the branding across your channels.
Inclusion is the Key
While rebranding a company, make sure to include everyone from the consumers to the core staff. They should feel the excitement of the renewal of the brand. Working as a team and taking your team forward will create a major role in accomplishing the target of rebranding.
The name should be catchy
If you are planning to change the name of the brand, make sure it must be catchy. Every name tells a story and your brand name needs to tell your story and the services you are providing. Keep in mind a name should be simple and easy to remember.
Many businesses like KFC, Facebook, Philip Morris, and IHOb went through the same process. Rebranding or Renaming the business is an efficient way to create buzz and attention for an existing setup without developing or changing it but it can also lead to risking your brand name and image. It can bring new consumers but can also lose the previous ones. But making sure of transparency and integrity will help to increase the result.
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