“A new Broom Sweeps Clean” – 10 reasons why companies choose to rebrand.

Digital Marketing

by Sam Munro 43 Views 0

Some brands are timeless, and require little or no change throughout their trading history. The Coca Cola logo, the Nike Swoosh and the Esso petroleum brand are all timeless classics and would be as recognisable today as they were at the point of their conception.

It is normal however for many organisations to update or make adjustments to their branding every 7 to 10 years.This could be anything from changing colour schemes, letter style, photographic style and logo redesign. Sometimes a rebrand goes so far as to change a company’s identity with an entirely new brand name.

There are hundreds of reasons why a company would wish to rebrand, but here are 10 of the most common ones.

1. New CEO

New CEOs will invariably wish to make an impact on an organisation and will take many measures to steer the organisation in order to breath new life into the company.

2. Outdated Corporate Identity

The most common reason for a top to tail corporate rebranding is to bring an outdated image up to date. Many companies will do this several times throughout their lifespan. It is a risk, and there are examples where rebranding has gone horribly wrong. But if done properly, a company will benefit immensely for being seen as a modern company.

  • Acquisitions and Mergers
  • Bad reputation

An acquisition or a merger is often followed very quickly by a rebrand. In some countries the law demands that a company change it’s logos, but for the most part it is desirable for a company to rebrand to make the change visible to the outside world.

A brand which gets a bad reputation will have to work very hard to shake off any negative associations it may have. A bad reputation can be the precursor to a company’s demise if it does not react quickly and well to recover. A rebranding can go a long way to disassociating or dispelling its previous bad reputation. It is however very important that fundamental reasons for the company getting it’s bad reputation are mended as well as an exterior rebrand.

5. Repositioning

Every company has its own position in the market in which it operates. With the clever use of rebranding, a company can improve its position in the marketplace. It could be a complex in-depth re-evaluation of the company’s strategy or offer. Or it could be a rebrand designed to highlight already existing good business practice or adherence to ethical and moral obligations.

6. Internationalisation

Many companies operate internationally and might wish to unify product names for all the countries the company serves. Children of a certain age will remember the rebranding of the Marathon into the Snickers Bar, or Opal Fruits to Starburst. More recent examples include Jif to Cif and Raider to Twix.

7. Changes to a brand’s portfolio

As time passes an organisation has to respond to changes in portfolio. It may have acquiredor otherwise developed new brands. A brand needs to be relevant to the product it sells or it will be confusing to consumers.

8. Market changes

Many companies are forced to rebrand because of changes in the markets in which they operate. The ‘adapt or die’ environment of ever improving digital technology has pushed traditional sectors into reinventing themselves.

9. Stakeholder conflicts

A company may be developing its identity and product and become to similar to a competitor. This can lead to issues where legal battles can ensue, forcing one or other of the parties to rebrand to avoid confusion in the marketplace. In addition a rebrand might be so universally unpopular with both internal and external stakeholders that further rebranding is required.

10. Development of corporate identity

This has been partially covered earlier in this article, but it is worth highlighting that a modern company really needs to have its corporate identity wrapped up in an understandable and clearly laid out package. A companies develop they might begin with a logo and a colour scheme, and then later think about photographic styles and type facing. The result can be rather messy if corporate identity has not been addressed as a coherent package. This is often a driver for companies to rebrand and consider their identity as a whole.

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