Every company faces the need for change. Rebranding is one of the tools for business evolution. It is an important element of a marketing strategy that can help maintain a brand’s relevance. We will tell you what rebranding is, what it gives to a business, when and how it is worth making changes to the style and identity.
What is rebranding?
This is the process by which companies try to change the perception of a brand. For this, all elements of the trademark are updated. This is not only about the usual visual details (for example, the logo), but also about changing the image in accordance with the new business strategy. Identity, tone of voice, and other elements may change.
Companies that have been in their niche for a long time and have sufficient authority may experience a decline in audience interest. This is a natural process: the world does not stand still, the desires and tastes of consumers change, and businesses should take this aspect into account. Rebranding is a normal reaction of a responsible company to market changes.
With the help of rebranding, you can:
- Get a competitive edge. The brand personifies the company. With the right rebranding, it will be possible to emphasize the current competitive advantages, attract new customers, and possibly outstrip the main competitors. You can increase profitability and maintain audience trust.
- Achieve growth. An effective rebranding increases the company’s influence in a highly competitive market. If you know how to meet new customer needs in a timely manner, they will become loyal to your brand.
- Expand your presence. Rebranding can represent the evolution of a company. If the business is actively developing, this needs to be emphasized through brand renewal.
If you don’t develop your brand, customers will think your company is at its peak and is now hopelessly behind the times. This will be especially noticeable against the background of competitors that are actively rebranding. Even if they are lagging behind you technologically and financially, growing customer loyalty will help them consistently overtake you in terms of profitability.
Of course, rebranding is not done at random. First, you need to conduct market research and decide exactly what changes the company needs. For example, in some cases, partial rebranding is sufficient, like changing the slogan or logo.
When is rebranding necessary?
What are the reasons why companies decide to start rebranding? In most cases, this is due to the need to make changes to the organizational structure of the business. Changes in strategy and new market positioning are also good reasons.
A company may be interested in changing its image in order to expand its market share or increase profits (especially if its gradual decline is recorded).
Reasons for rebranding may include:
- loss of brand relevance due to “obsolescence”;
- marketers’ mistakes in market positioning;
- the emergence of a stronger competitor;
- expansion or change of the scope of activity;
- the emergence of new strategic goals and objectives;
- changes in structure (for example, takeover of a company);
- loss of brand reputation (for various reasons);
- entering new markets;
- desire to make the audience more involved.
Goals and objectives of rebranding
The main goal of rebranding is to achieve a significant improvement in the positioning of the brand, as well as its products.
The task of rebranding is to create a value system that is as attractive as possible for the target audience. This is done by achieving lightness, simplicity, and accessibility of perception. Customers need to understand what the company is doing, why it needs to be trusted, and why they need to be committed to the brand. In the process of rebranding, the following tasks are solved:
- differentiate the brand (increase its uniqueness);
- achieve the growth of consumer loyalty (strengthen the brand);
- attract new customers, increasing the target audience.
Rebranding is not a total change in brand philosophy. This is optimization and improvement. The emphasis is on advantages, while mistakes and shortcomings are being worked out: you need to make sure that they do not slow down the evolution of the company.
Types of rebranding
Let’s take a look at the three main types of changes brands are making.
This is a purely visual rebranding. Simply put, the changes only affect the graphic elements of the brand. Restyling involves changing the corporate identity: from minor adjustments to, for example, changing the logo.
Logo adjustments can be partial (creating a consistent brand name that resembles the previous version and is in line with modern design trends). A brand can also completely change the logo by offering a completely different symbol.
How to change the logo if the budget does not allow contacting a design studio? Try to generate the symbol yourself using the simple Logaster online service. In a couple of minutes, you will receive a completely new solution for changing the identity.
However, it is worth being objective: although the restyling is part of the rebranding, it does not fully embody it. The corporate identity changes are noteworthy and highlight the relevance of the brand. However, deeper steps are also required to get all the advantages of rebranding.
Rebranding + change of positioning
This is the process of changing communication. Internally, the company may remain the same, but externally it will be completely renewed. Thus, it will meet market trends and current expectations of the target audience.
This type of rebranding is completely aimed at meeting the needs of the audience. It helps you retain existing customers and attract new ones. Consumers love the change: they are pleased to see the company become more modern, including changing the way it communicates with consumers.
Rebranding + change of business model
We are talking about major changes in which the visual design of the brand is completely changed, and the brand platform is updated, as well as reorganization is carried out within the company.
With such a rebranding, it is possible to change the staff, update the ideology of the company. The business reaches new target customers, changing the management system and choosing new values. These are colossal changes, and they are done before the visuals are changed. That is, there is a change not only of the “cover”, but also of what is inside.
To implement the changes, carry out:
- Deep analysis of the brand. It is about studying the state, determining the attitude of target customers, determining the pros and cons of the company, researching the main competitors. Based on the results, you can choose the type of rebranding: simple restyling or more serious changes.
- Creation of a rebranding strategy. Analyzing the research results, develop a strategy for further actions. In the process, the components of the brand that need to be changed are determined. You also have to think about how to highlight the discovered advantages and work on the disadvantages. Choose methods, tools and options for rebranding.
- Direct rebranding. Making all the planned changes and implementing a new strategy.
- Communication with the audience. Current and potential customers should know about rebranding. With the help of existing communication tools (website, social networks, media, information on packaging, etc.), you explain the essence of the rebranding and new advantages to the audience.
Major mistakes in rebranding
It is worth knowing in advance about the typical mistakes of companies so as not to repeat them. So these are:
- Incorrect name change process. A superficial attitude to rebranding leads to a rollback (when the brand’s positions fall even more) or to the fact that the brand is completely forgotten;
- changes without reference to the market situation: when rebranding is not based on the results of research and analysis. Most likely, its results will not meet the expectations of the audience.
- lack of consistency. The company changes something, then stops, then re-implements the changes. Customers get confused, scared and go to more “understandable” brands;
- non-constructiveness. Rebranding is done by employees who do not have sufficient competence. The timing of the changes is violated. There are no goals and no division of tasks into teams. In such conditions, responsible people often ignore tasks and do not work 100%;
- unfoundedness. For example, if the rebranding was the result of a “whim” of a top manager. It is not based on anything, so the audience does not understand the purpose, essence, and results of the changes.
Three great rebranding examples
In order not to dive into the complexities of structural changes in companies, consider the best examples of restyling that were carried out in the process of updating well-known brands.
Credit card security is a key customer expectation. In an era of mass identity theft, people want to be sure that their bank cards won’t let them down. On the one hand, MasterCard had a globally recognizable logo and indisputable authority. On the other hand, the emergence of digital payment services has significantly changed the market. It was important not to lag behind and not to lose competitive advantage.
Along with the strategy, the company changed its logo. It repeats the original color scheme, but the accent on the lettering is gone. The company has thus emphasized its recognizability: by looking at the symbol, customers understand what product they mean.
Access to the best music in the world and the ability to create your own playlists are the competitive advantages of a streaming service. Each listener can take any number of tracks and combine them into a list for their own purpose: whether it is a trip by car or a party with friends. That is why in the new logo of the service, the accent is on the neon green hue: it symbolizes the beginning of the holiday. Thanks to the rebranding, the service became more modern, and now it competes equally with iTunes.
From a small social network that allows you to post photos, to a full-fledged platform with customizable filters and innovative solutions for users and businesses. The new logo reflects modern features. We see not an old camera, but a symbol that resembles a smartphone camera. Bright colors make the logo more visible (compared to other social media icons).
Rebranding is part of the business evolution. It is necessary to keep the audience’s attention and compete in a dignified manner. However, it is worth approaching the process carefully, analyzing the needs of the audience, and clearly identifying the necessary changes. Explore, try, and don’t forget that your business results depend on how customers react to the rebranding.